Par Pacific(PARR) - 2020 Q1 - Quarterly Report

Financial Performance - For Q1 2020, the company reported a net loss of $222.3 million, a significant decline from a net income of $61.1 million in Q1 2019[190]. - Adjusted EBITDA for Q1 2020 was $10.7 million, down from $47.6 million in Q1 2019, primarily due to unfavorable feedstock differentials and crack spreads[192]. - Revenues for Q1 2020 were $1.204 billion, a slight increase of 1% compared to $1.191 billion in Q1 2019[195]. - The company experienced a 14% increase in the cost of revenues, rising from $1.061 billion in Q1 2019 to $1.210 billion in Q1 2020[195]. - Impairment expenses in Q1 2020 totaled $67.9 million, compared to no impairment expenses in Q1 2019[195]. - The company’s equity investment in Laramie Energy resulted in a loss of $45.0 million in Q1 2020, compared to a gain of $0.3 million in Q1 2019[195]. - Operating income for the refining segment showed a loss of $168.6 million in Q1 2020 compared to a profit of $14.4 million in Q1 2019, indicating a significant decline in profitability[197]. - Adjusted Gross Margin per barrel for the refining segment dropped to $0.24 in Q1 2020 from $3.74 in Q1 2019, a decrease of 93.6%[199]. - The average production costs per barrel increased to $3.36 in Q1 2020 from $2.81 in Q1 2019, an increase of 19.5%[199]. - Total operating expenses for Q1 2020 were $1,385.3 million, compared to $1,169.9 million in Q1 2019, indicating an increase of about 18.4%[239][241]. - Net loss for Q1 2020 was $222.3 million, compared to a net income of $61.1 million in Q1 2019, reflecting a significant decline[239][241]. - Adjusted Gross Margin for the refining segment was $36.6 million for the three months ended March 31, 2020, a decrease of $49.1 million compared to $85.7 million for the same period in 2019[217]. Liquidity and Cash Flow - The company has taken measures to reduce cash outlays for 2020 by approximately $70 million to $80 million due to the impact of COVID-19[187]. - The company expects to utilize tax payment deferral opportunities provided by the CARES Act to strengthen liquidity[188]. - As of March 31, 2020, the liquidity position was $136.5 million, consisting of $131.6 million at Par Petroleum, LLC and subsidiaries, $4.8 million at Par Pacific Holdings, and $0.1 million at other subsidiaries[248]. - The company had access to $62.1 million in cash on hand and various credit facilities as of March 31, 2020, to support its operations and capital needs[249]. - The company expects cash flows from operations and available capital resources to be sufficient to meet current capital and turnaround expenditures, working capital, and debt service requirements for the next 12 months[250]. Operational Adjustments - The company has adjusted throughput rates at its Hawaii and Wyoming refineries in response to reduced demand for refined products[186]. - The company incurred acquisition and integration costs of $665,000 in Q1 2020, compared to $2.9 million in Q1 2019[197]. - For the three months ended March 31, 2020, net cash provided by operating activities was approximately $14.5 million, compared to a net cash used of approximately $56.8 million for the same period in 2019[252]. - Net cash used in investing activities was approximately $14.9 million for the three months ended March 31, 2020, primarily related to additions to property, plant, and equipment[253]. - Capital expenditures and deferred turnaround costs for the three months ended March 31, 2020 totaled approximately $16.5 million, with a budget for 2020 ranging from $95 million to $110 million[255]. Market Conditions and Future Outlook - The economic environment remains fluid and uncertain, with expectations for a longer recovery period for consumer and industrial demand for refined products[188]. - The adverse impact of COVID-19 on the company has been and will likely continue to be material, affecting its business, results of operations, financial condition, and liquidity[262]. - The company continues to seek strategic investments in business opportunities, although the amount and timing of those investments are unpredictable[256]. - The company may from time to time seek to retire or repurchase its outstanding convertible senior notes or common stock, depending on market conditions and liquidity requirements[251]. Segment Performance - The logistics segment achieved an operating income of $18.8 million for the three months ended March 31, 2020, an increase of $6.4 million compared to $12.4 million for the same period in 2019[214]. - The retail segment incurred an operating loss of $18.1 million for the three months ended March 31, 2020, a decrease of $28.2 million compared to an operating income of $10.1 million for the same period in 2019[215]. - Adjusted Gross Margin for the logistics segment increased to $27.7 million for the three months ended March 31, 2020, up by $9.0 million from $18.7 million for the same period in 2019[218]. - Adjusted Gross Margin for the retail segment was $31.4 million for the three months ended March 31, 2020, an increase of $2.9 million compared to $28.5 million for the same period in 2019[219]. Asset and Liability Overview - As of March 31, 2020, total current assets amounted to $612.5 million, with cash and cash equivalents at $62.1 million[234]. - The company's total assets as of March 31, 2020, were $2.14 billion, while total liabilities were $1.71 billion[234]. - The current liabilities totaled $727.9 million, with obligations under inventory financing agreements at $399.7 million[234]. - The company reported a total stockholders' equity of $430.4 million as of March 31, 2020[234]. - For the year ended December 31, 2019, total assets were $2.70 billion, with total liabilities at $2.05 billion[236]. - The long-term debt, net of current maturities, was $599.6 million as of December 31, 2019[236]. - The company’s accumulated earnings (deficit) stood at $(67.9) million as of December 31, 2019[236].