Par Pacific(US:PARR)2025-11-05 20:23Financial Performance - Net income for the three months ended September 30, 2025, increased to $262.6 million from $7.5 million for the same period in 2024, driven by a $321.8 million increase in refining segment operating income[164]. - Adjusted EBITDA for the three months ended September 30, 2025, was $372.5 million, a significant increase from $51.4 million in the same period of 2024, primarily due to a $308.1 million increase in refining segment Adjusted Gross Margin[165]. - For the nine months ended September 30, 2025, net income rose to $291.7 million from $22.4 million for the same period in 2024, reflecting a $314.6 million increase in refining segment operating income[167]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $520.5 million, compared to $227.7 million for the same period in 2024, with a $260.5 million increase in refining segment Adjusted Gross Margin contributing to this growth[168]. - Total revenues for the three months ended September 30, 2025, were $2.01 billion, a decrease of 6% compared to $2.14 billion for the same period in 2024[171]. - Revenues for the nine months ended September 30, 2025, decreased to $5,651.41 million, down 8% from $6,142.24 million in 2024[172]. - Operating income for the three months ended September 30, 2025, was $358.5 million, a significant increase from $36.4 million in the same period in 2024[171]. - Operating income for the nine months ended September 30, 2025, increased significantly to $439.50 million, compared to $94.59 million in 2024[172]. - Adjusted Gross Margin for the three months ended September 30, 2025, was $43,492 thousand, compared to $42,615 thousand in 2024, indicating an increase of 2.05%[194]. - Adjusted Gross Margin for the nine months ended September 30, 2025, reached $126,874 thousand, up from $121,295 thousand in 2024, marking a growth of 4.73%[195]. Costs and Expenses - The company recorded a $451.5 million decrease in the cost of revenues (excluding depreciation) for the three months ended September 30, 2025, compared to the same period in 2024[171]. - Cost of revenues (excluding depreciation) for the same period fell to $4,606.54 million, a decrease of 15% compared to $5,422.88 million in 2024[172]. - General and administrative expenses (excluding depreciation) decreased to $72.13 million in the nine months ended September 30, 2025, down 17% from $87.32 million in 2024[172]. - The company experienced a significant increase in income tax expense, which rose to $92.70 million for the nine months ended September 30, 2025, compared to $10.50 million in 2024, reflecting a 783% increase[172]. - Acquisition and integration costs surged to $1.97 million in the nine months ended September 30, 2025, compared to only $0.068 million in 2024, marking a 2801% increase[172]. - Interest expense and financing costs for the three months ended September 30, 2025, were $21.3 million, a decrease of $2.1 million compared to $23.4 million for the same period in 2024[231]. - Interest expense and financing costs for the nine months ended September 30, 2025, were $65.2 million, an increase of $3.5 million compared to $61.7 million for the same period in 2024[244]. Refining Segment Performance - Operating income for the refining segment for the three months ended September 30, 2025, was $340.77 million, compared to $19.01 million in 2024[173]. - Adjusted Gross Margin for refining for the three months ended September 30, 2025, was $450.3 million, an increase of $308.1 million compared to $142.2 million for the same period in 2024[214]. - Total refining segment feedstocks throughput for Q3 2025 was 197.7 Mbpd, a slight decrease from 198.4 Mbpd in Q3 2024[182]. - Adjusted gross margin per barrel for Q3 2025 increased to $24.76 from $7.79 in Q3 2024, reflecting a significant improvement[182]. - The total refined product sales volume for the refining segment in Q3 2025 was 208.6 Mbpd, down from 216.2 Mbpd in Q3 2024[182]. - The production costs per barrel for the total refining segment decreased to $8.76 in Q3 2025 from $11.61 in Q3 2024, reflecting cost management efforts[183]. Retail Segment Performance - Retail sales volumes for the three months ended September 30, 2025, were 31,755 thousand gallons, up from 31,232 thousand gallons in 2024, representing a growth of 1.67%[186]. - For the nine months ended September 30, 2025, retail sales volumes increased to 92,034 thousand gallons from 91,186 thousand gallons in 2024, reflecting a growth of 0.93%[186]. - Operating Income for the retail segment for the three months ended September 30, 2025, was $19,093 thousand, compared to $18,274 thousand in 2024, showing an increase of 4.48%[194]. - Operating Income for the retail segment for the nine months ended September 30, 2025, was $55,847 thousand, up from $45,323 thousand in 2024, representing a growth of 23.25%[195]. - Retail Adjusted Gross Margin for the nine months ended September 30, 2025, was $126.9 million, an increase of $5.6 million compared to $121.3 million for the same period in 2024[221]. Joint Ventures and Investments - The company formed a joint venture, Hawaii Renewables, LLC, with a 63.5% equity interest to develop a renewable fuels manufacturing facility, with a $100 million cash contribution from Alohi Renewable Energy LLC[157]. - Acquisition and integration costs for the nine months ended September 30, 2025, were $2.0 million, primarily related to the establishment of the renewable fuel facility joint venture[241]. Market Conditions - The average Brent crude oil price decreased to $69.93 per barrel for the nine months ended September 30, 2025, down from $81.82 per barrel for the same period in 2024[159]. - The average Brent crude oil price for Q3 2025 was $68.17, down from $78.71 in Q3 2024, reflecting market volatility[184]. - The combined market index for Q3 2025 was $14.72, significantly higher than $8.89 in Q3 2024, indicating improved market conditions[184]. Liquidity and Capital Structure - Liquidity position as of September 30, 2025, was $735.2 million, consisting of $159.1 million in cash and cash equivalents and $576.1 million available under the ABL Credit Facility[266]. - The company may seek to raise additional debt or equity capital to fund acquisitions and refinance existing debt[267]. - Total assets increased to $4,076,582 million as of September 30, 2025, up from $3,829,371 million as of December 31, 2024, representing a growth of approximately 6.5%[253][254]. - Cash and cash equivalents decreased to $159,055 million from $191,921 million, a decline of about 17%[253][254]. - Total stockholders' equity increased to $1,396,062 million from $1,191,302 million, reflecting a growth of approximately 17.2%[253][254]. Tax and Regulatory Matters - The company received a gain of $199.5 million in net income due to small refinery exemptions granted by the EPA for compliance years 2019 through 2024[156]. - The company recognized a non-cash deferred tax expense of $72.7 million for Q3 2025, compared to $5.7 million in Q3 2024, indicating a substantial increase in tax liabilities[197]. - Income tax expense for the nine months ended September 30, 2025, was $92.7 million, an increase of $82.2 million compared to $10.5 million for the same period in 2024, primarily related to higher pre-tax net income[249].