Par Pacific(PARR)2022-05-06 19:57Financial Performance - For the three months ended March 31, 2022, the company reported a net loss of $137.1 million, compared to a net loss of $62.2 million for the same period in 2021, representing an increase in net loss of 120%[162]. - Adjusted EBITDA improved to $8.3 million for the three months ended March 31, 2022, compared to a loss of $34.4 million in the same period of 2021, indicating a significant recovery[163]. - Revenues for the three months ended March 31, 2022, were $1.35 billion, a 52% increase from $888.7 million in the same period of 2021[166]. - The company reported a net loss of $137.1 million in Q1 2022, compared to a net loss of $62.2 million in Q1 2021, reflecting a deterioration of 120.1%[180]. - Operating income for the three months ended March 31, 2022, was a loss of $121,096 compared to a loss of $44,662 in the same period of 2021, indicating a decline in operational performance[202][204]. Revenue Segments - The refining segment's revenues were $1.3 billion for the three months ended March 31, 2022, up from $838.8 million in the same period of 2021, reflecting strong market conditions[168]. - The logistics segment reported revenues of $42.5 million for the three months ended March 31, 2022, slightly up from $41.3 million in the same period of 2021[168]. - For the three months ended March 31, 2022, revenues were $1.4 billion, an increase of $0.5 billion compared to $0.9 billion for the same period in 2021[187]. Operational Metrics - The refining segment's feedstocks throughput decreased to 118.2 Mbpd in Q1 2022 from 127.4 Mbpd in Q1 2021, indicating a decline in operational capacity[169]. - Wyoming Refinery's feedstocks throughput increased to 15.3 Mbpd in Q1 2022 from 14.6 Mbpd in Q1 2021, representing a growth of 4.8%[170]. - Refined product sales volume rose to 14.8 Mbpd in Q1 2022, up from 13.1 Mbpd in Q1 2021, reflecting a growth of 12.99%[170]. Profitability Metrics - The adjusted gross margin per barrel for the refining segment increased to $3.27 in Q1 2022 from $0.76 in Q1 2021, demonstrating improved profitability[169]. - Adjusted Gross Margin per barrel surged to $24.91 in Q1 2022 compared to $2.35 in Q1 2021, indicating a significant increase of 964.3%[170]. - Adjusted Gross Margin for refining was $58.7 million, an increase of $53.7 million from $5.0 million in the prior year[185]. Expenses and Costs - The company's total operating expenses increased to $1.47 billion for the three months ended March 31, 2022, compared to $933.3 million in the same period of 2021, primarily due to higher utility and maintenance costs[162]. - Operating expense (excluding depreciation) was $81.4 million, an increase of $7.2 million compared to $74.2 million in the prior year[190]. - General and administrative expense (excluding depreciation) increased to $15.9 million, up $4.0 million from $11.9 million in Q1 2021[193]. Strategic Decisions - The company suspended purchases of Russian crude oil for its Hawaii refinery in response to the ongoing Russia-Ukraine conflict, impacting supply chains[160]. - The company is considering strategic alternatives regarding its 46.0% equity investment in Laramie Energy due to an improved outlook for natural gas[157]. - The company plans to seek additional debt or equity capital to fund significant business changes or refinance existing debt[209]. Market Conditions - Average Brent crude oil prices increased to $97.90 per barrel in Q1 2022 from $61.32 per barrel in Q1 2021, a rise of 60.0%[170]. - The average 3-1-2 Singapore Crack Spread increased to $16.21 per barrel in Q1 2022 from $3.80 per barrel in Q1 2021, marking a substantial increase of 326.1%[170]. Cash Flow and Liquidity - As of March 31, 2022, the liquidity position was $212.0 million, consisting of $207.4 million at Par Petroleum, LLC and subsidiaries, and $4.7 million at Par Pacific Holdings[207]. - Net cash used in operating activities for Q1 2022 was $7.7 million, an improvement from $30.7 million in Q1 2021[211]. - Net cash provided by financing activities for Q1 2022 was approximately $52.6 million, compared to $82.5 million in Q1 2021[214]. Debt and Interest - The company had $237.5 million in debt principal subject to floating interest rates as of March 31, 2022[228]. - An increase of 1% in the variable rate on indebtedness would result in an increase to Cost of revenues (excluding depreciation) and Interest expense of approximately $4.4 million and $4.6 million per year, respectively[228]. Risk Management - The company is exposed to market risks related to the volatility in the price of RINs, which may significantly alter obligations to blend renewable fuels or purchase RINs[227]. - The company closely monitors the creditworthiness of customers to mitigate credit risk associated with nonpayment or nonperformance[230].