Par Pacific(PARR) - 2024 Q4 - Annual Results

Financial Performance - Par Pacific reported a net loss of $(33.3) million, or $(0.59) per diluted share, for the twelve months ended December 31, 2024, compared to net income of $728.6 million, or $11.94 per diluted share, for 2023[2]. - Adjusted Net Income for 2024 was $21.2 million, down from $501.2 million in 2023, and Adjusted EBITDA for 2024 was $238.7 million, compared to $696.2 million for 2023[2]. - Net loss for the year ended December 31, 2024, was $33,322, a significant decline from a net income of $728,642 in 2023[38]. - Net income for Q4 2024 was $(55,695,000), a decrease from $289,324,000 in Q4 2023, while the year-end net income for 2024 was $(33,322,000) compared to $728,642,000 in 2023[56]. - Adjusted Net Income for Q4 2024 was $(43,444,000), compared to $65,243,000 in Q4 2023, and for the year ended December 31, 2024, it was $21,219,000 compared to $501,168,000 in 2023[56]. - Basic Adjusted Net Income (Loss) per common share for Q4 2024 was $(0.79), down from $1.10 in Q4 2023[58]. Segment Performance - The Refining segment generated an operating income of $17.4 million for 2024, significantly lower than $676.2 million for 2023, with Adjusted Gross Margin dropping to $618.3 million from $995.0 million[4]. - The Retail segment reported operating income of $64.8 million for 2024, an increase from $56.6 million in 2023, with fuel sales volumes rising to 121.5 million gallons from 117.6 million gallons[16][17]. - The Logistics segment generated operating income of $89.4 million for 2024, up from $69.7 million in 2023, with Adjusted EBITDA increasing to $120.2 million from $96.7 million[20][21]. - Operating income for Refining in 2024 was $17,412,000, down from $676,161,000 in 2023, while Logistics and Retail reported $89,351,000 and $64,800,000 respectively in 2024 compared to $69,744,000 and $56,603,000 in 2023[53]. Revenue and Sales - Revenues for Q4 2024 were $1,832,221, a decrease of 16% compared to $2,183,511 in Q4 2023[38]. - Refined product sales volume increased to 199.4 Mbpd in Q4 2024 from 194.4 Mbpd in Q4 2023, marking a growth of approximately 2.6%[39]. - Retail sales volumes increased to 30,287 thousand gallons in Q4 2024 from 29,840 thousand gallons in Q4 2023, with annual sales rising to 121,473 thousand gallons from 117,550 thousand gallons[41]. Debt and Cash Position - At December 31, 2024, Par Pacific's cash balance was $191.9 million, with gross term debt of $644.2 million and total liquidity of $613.7 million[28]. - Total debt increased to $1,112,967 in 2024 from $650,858 in 2023, indicating a rise of approximately 71%[38]. - Cash and cash equivalents decreased to $191,921 in 2024 from $279,107 in 2023, reflecting a decline of about 31%[38]. Operational Metrics - The company reported a total yield of 97.1% in Q4 2024, an increase from 96.1% in Q4 2023[39]. - The company experienced a significant unrealized loss on commodity derivatives of $43,281 thousand in the year ended December 31, 2024[61]. - The company incurred acquisition and integration costs of $100 thousand in the year ended December 31, 2024[61]. Adjusted Metrics - Adjusted Gross Margin for Q4 2024 was $92,363,000 in Refining, $36,842,000 in Logistics, and $43,401,000 in Retail, compared to $227,237,000, $35,254,000, and $40,530,000 respectively in Q4 2023[51][53]. - Adjusted EBITDA for Q4 2024 was $10,949,000, significantly lower than $122,036,000 in Q4 2023, and for the year ended December 31, 2024, it was $238,676,000 compared to $696,247,000 in 2023[56]. - Adjusted Gross Margin for the year ended December 31, 2024 was $618,269,000 in Refining, $135,835,000 in Logistics, and $164,696,000 in Retail, compared to $995,011,000, $121,173,000, and $155,282,000 respectively in 2023[53]. Future Outlook - The company anticipates future growth opportunities from the Billings Acquisition, which is expected to enhance cash flows and profitability[36]. - The company plans to establish new benchmarks for its refineries starting in 2025, including the Hawaii, Montana, Washington, and Wyoming Indices, to better reflect local market conditions[42]. - The company continues to focus on enhancing operational efficiency and profitability through strategic adjustments in production costs and refining processes[44].