Par Pacific Holdings Reports Second Quarter 2024 Results

Core Viewpoint - Par Pacific Holdings, Inc. reported a decline in net income and adjusted net income for the second quarter of 2024 compared to the same period in 2023, despite solid contributions from refining operations and retail segments [2][3]. Financial Performance - Net income for Q2 2024 was $18.6 million, or $0.32 per diluted share, down from $30.0 million, or $0.49 per diluted share in Q2 2023 [2]. - Adjusted net income for Q2 2024 was $28.5 million, compared to $105.0 million in Q2 2023 [2]. - Adjusted EBITDA for Q2 2024 was $81.6 million, down from $150.8 million in Q2 2023 [2]. Refining Segment - The refining segment reported operating income of $41.2 million in Q2 2024, compared to $44.1 million in Q2 2023 [3]. - Adjusted gross margin for the refining segment was $176.6 million in Q2 2024, down from $205.6 million in Q2 2023 [3][4]. - Adjusted EBITDA for the refining segment was $60.1 million in Q2 2024, compared to $128.6 million in Q2 2023 [4]. Hawaii Refinery - The 3-1-2 Singapore Crack Spread was $12.49 per barrel in Q2 2024, down from $13.72 per barrel in Q2 2023 [5]. - Throughput in Q2 2024 was 81 thousand barrels per day (Mbpd), compared to 84 Mbpd in Q2 2023 [5]. - Production costs were $4.50 per throughput barrel in Q2 2024, compared to $4.33 in Q2 2023 [5]. Montana Refinery - The RVO Adjusted USGC 3-2-1 Index averaged $17.93 per barrel in Q2 2024, down from $23.20 in Q2 2023 [7]. - The Montana refinery's throughput was 38 Mbpd in Q2 2024, down from 63 Mbpd in Q2 2023 [7]. - Adjusted gross margin for the Montana refinery was $16.89 per barrel in Q2 2024, compared to $30.98 per barrel in Q2 2023 [8]. Washington Refinery - The RVO Adjusted Pacific Northwest 3-1-1-1 Index averaged $22.54 per barrel in Q2 2024, down from $25.13 in Q2 2023 [9]. - The Washington refinery's throughput was 41 Mbpd in Q2 2024, unchanged from Q2 2023 [9]. - Adjusted gross margin for the Washington refinery was $4.67 per barrel in Q2 2024, down from $6.37 in Q2 2023 [10]. Wyoming Refinery - The RVO Adjusted USGC 3-2-1 Index averaged $17.93 per barrel in Q2 2024, down from $21.65 in Q2 2023 [11]. - The Wyoming refinery's throughput was 20 Mbpd in Q2 2024, up from 17 Mbpd in Q2 2023 [11]. - Adjusted gross margin for the Wyoming refinery was $14.74 per barrel in Q2 2024, down from $20.56 in Q2 2023 [12]. Retail Segment - The retail segment reported operating income of $16.1 million in Q2 2024, compared to $15.2 million in Q2 2023 [13]. - Adjusted gross margin for the retail segment was $41.6 million in Q2 2024, up from $39.2 million in Q2 2023 [13]. - Retail sales volumes were 30.5 million gallons in Q2 2024, compared to 29.4 million gallons in Q2 2023 [14]. Logistics Segment - The logistics segment reported operating income of $18.0 million in Q2 2024, down from $20.7 million in Q2 2023 [15]. - Adjusted gross margin for the logistics segment was $30.8 million in Q2 2024, up from $29.6 million in Q2 2023 [15]. - Logistics segment adjusted EBITDA was $26.1 million in Q2 2024, compared to $26.0 million in Q2 2023 [15]. Liquidity and Capital Structure - Net cash used in operations totaled $(4.7) million for Q2 2024, including working capital outflows of $(61.3) million [16]. - The company completed a comprehensive working capital refinancing as of May 31, 2024, with an upsized ABL credit facility of $1.4 billion [17]. - As of June 30, 2024, the cash balance was $179.7 million, with gross term debt of $547.6 million [18].