Par Pacific(US:PARR)2026-02-25 16:02Financial Data and Key Metrics Changes - Full-year Adjusted EBITDA was $634 million, with Adjusted net income at $7.56 per share, indicating a strong performance for the year [3][13] - Fourth quarter Adjusted EBITDA was $113 million, and Adjusted net income was $60 million, or $1.17 per share [13] - Liquidity improved by 49% to approximately $915 million, with shares outstanding reduced by 10% [7][19] Business Line Data and Key Metrics Changes - The refining segment generated $88 million of Adjusted EBITDA in the fourth quarter, down from $135 million in the third quarter [13][14] - Logistics segment Adjusted EBITDA was $30 million in the fourth quarter, compared to $37 million in the third quarter, with full-year logistics Adjusted EBITDA reaching a record $126 million [17] - Retail achieved a record $86 million in Adjusted EBITDA for the full year, up from $76 million in 2024 [18] Market Data and Key Metrics Changes - Combined refining index averaged $13.13 per barrel in the fourth quarter, down approximately $1.60 from the prior quarter [14] - Hawaii throughput averaged 84,000 barrels per day, approximately 4% above the prior three-year average [4] - Fourth quarter throughput in Hawaii was strong at 87,000 barrels per day, while Washington throughput was 37,000 barrels per day [10] Company Strategy and Development Direction - The company aims to improve mid-cycle earnings contribution through targeted high-return projects and maintain disciplined capital allocation [8] - Focus on safe startup and operational stability of the Hawaii renewables unit, with expectations for steady-state performance [6][8] - Strategy includes enhancing logistics integration, increasing distillate yield, and lowering cost structure to strengthen durability [8] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive medium-term economic outlook, citing improvements in policy backdrop [7] - The company is positioned to expand earnings power and drive long-term shareholder value, despite cyclical refining markets [8] - Management emphasized the importance of operational reliability and safety as foundational to financial success [4] Other Important Information - The company executed a successful turnaround in Montana and restored Wyoming operations ahead of schedule [4][10] - Cash from operations for the full year was $568 million, with significant cash generation supporting liquidity [19] - The company plans to monetize excess RIN inventory and is progressing on the redevelopment of Hawaii land [19][31] Q&A Session Summary Question: Capital allocation and share repurchases - Management indicated a flexible approach to capital allocation, considering both share repurchases and internal growth opportunities [23] Question: Q4 capture rates and outlook - Management explained that lower capture rates in the Rockies were due to coker downtime and a regional power outage impacting Wyoming [24][25] Question: External growth opportunities - Management discussed potential for retail integration and small acquisitions, emphasizing a disciplined approach to growth [28] Question: Sensitivity to WCS differential - Management noted that every dollar of WCS differential is worth around $15 million to $16 million annually, with favorable conditions expected [35][36]