Par Pacific Holdings Reports Third Quarter 2024 Results
HOUSTON, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE:PARR) ("Par Pacific" or the "Company") today reported its financial results for the quarter ended September 30, 2024.
Net Income of $7.5 million, or $0.13 per diluted share
Adjusted Net Loss of $(5.5) million, or $(0.10) per diluted share
Adjusted EBITDA of $51.4 million
Record logistics financial results driven by record refining throughput
Liquidity increased by $112.1 million while repurchasing $21.9 million of common stock
Par Pacific reported net income of $7.5 million, or $0.13 per diluted share, for the quarter ended September 30, 2024, compared to $171.4 million, or $2.79 per diluted share, for the same quarter in 2023. Third quarter 2024 Adjusted Net Loss was $(5.5) million, compared to Adjusted Net Income of $193.4 million in the third quarter of 2023. Third quarter 2024 Adjusted EBITDA was $51.4 million, compared to $255.7 million in the third quarter of 2023. A reconciliation of reported non-GAAP financial measures to their most directly comparable GAAP financial measures can be found in the tables accompanying this news release.
"Our third quarter financial results reflect a challenging summer refining margin environment," said Will Monteleone, President and Chief Executive Officer. "Despite the cyclical downturn, refining system throughput set a quarterly record, our retail and logistics segments delivered consistently strong financial results, and our Hawaii SAF project has entered the construction phase. We are focused on improving operating and capital efficiency while prioritizing safe and reliable operations."
Refining
The Refining segment reported operating income of $19.0 million in the third quarter of 2024, compared to $194.8 million in the third quarter of 2023. Adjusted Gross Margin for the Refining segment was $142.2 million in the third quarter of 2024, compared to $350.6 million in the third quarter of 2023.
Refining segment Adjusted EBITDA was $20.1 million in the third quarter of 2024, compared to $233.6 million in the third quarter of 2023.
HawaiiThe 3-1-2 Singapore Crack Spread was $11.00 per barrel in the third quarter of 2024, compared to $23.39 per barrel in the third quarter of 2023. Throughput in the third quarter of 2024 was 81 thousand barrels per day (Mbpd), compared to 82 Mbpd for the same quarter in 2023. Production costs were $4.58 per throughput barrel in the third quarter of 2024, compared to $4.50 per throughput barrel in the same period of 2023.
The Hawaii refinery's Adjusted Gross Margin was $6.10 per barrel during the third quarter of 2024, including a net price lag impact of approximately $5.1 million, or $0.68 per barrel, compared to $13.47 per barrel during the third quarter of 2023.
MontanaThe RVO Adjusted USGC 3-2-1 Index averaged $14.14 per barrel in the third quarter of 2024, compared to $29.65 in the third quarter of 2023. The Montana refinery's throughput in the third quarter of 2024 was 57 Mbpd, compared to 55 Mbpd for the same quarter in 2023. Production costs were $11.61 per throughput barrel, compared to $10.83 per throughput barrel in the same period of 2023.
The Montana refinery's Adjusted Gross Margin was $12.42 per barrel during the third quarter of 2024, compared to $26.49 per barrel during the third quarter of 2023.
WashingtonThe RVO Adjusted Pacific Northwest 3-1-1-1 Index averaged $15.48 per barrel in the third quarter of 2024, compared to $35.00 per barrel in the third quarter of 2023. The Washington refinery's throughput was 41 Mbpd in the third quarter of 2024, compared to 41 Mbpd in the third quarter of 2023. Production costs were $3.50 per throughput barrel in the third quarter of 2024, compared to $3.77 per throughput barrel in the same period of 2023.
The Washington refinery's Adjusted Gross Margin was $1.76 per barrel during the third quarter of 2024, compared to $12.30 per barrel during the third quarter of 2023.
WyomingThe RVO Adjusted USGC 3-2-1 Index averaged $14.14 per barrel in the third quarter of 2024, compared to $29.65 per barrel in the third quarter of 2023. The Wyoming refinery's throughput was 19 Mbpd in the third quarter of 2024, compared to 20 Mbpd in the third quarter of 2023. Production costs were $7.00 per throughput barrel in the third quarter of 2024, compared to $6.46 per throughput barrel in the same period of 2023.
The Wyoming refinery's Adjusted Gross Margin was $13.65 per barrel during the third quarter of 2024, including a FIFO impact of approximately $(4.7) million, or $(2.63) per barrel, compared to $37.01 per barrel during the third quarter of 2023.
Retail
The Retail segment reported operating income of $18.3 million in the third quarter of 2024, compared to $13.3 million in the third quarter of 2023. Adjusted Gross Margin for the Retail segment was $42.6 million in the third quarter of 2024, compared to $38.2 million in the same quarter of 2023.
Retail segment Adjusted EBITDA was $21.0 million in the third quarter of 2024, compared to $16.7 million in the third quarter of 2023. The Retail segment reported sales volumes of 31.2 million gallons in the third quarter of 2024, compared to 31.1 million gallons in the same quarter of 2023. Third quarter 2024 same store sales fuel volumes decreased by (1.4)% while merchandise revenue increased by 3.8%, compared to third quarter of 2023.
Logistics
The Logistics segment reported operating income of $26.2 million in the third quarter of 2024, compared to $20.7 million in the third quarter of 2023. Adjusted Gross Margin for the Logistics segment was $36.3 million in the third quarter of 2024, compared to $35.3 million in the same quarter of 2023.
Logistics segment Adjusted EBITDA was $33.0 million in the third quarter of 2024, compared to $29.1 million in the third quarter of 2023.
Liquidity
Net cash provided by operations totaled $78.5 million for the three months ended September 30, 2024, including working capital inflows of $67.2 million and deferred turnaround expenditures of $(15.6) million. Excluding these items, net cash provided by operations was $26.9 million for the three months ended September 30, 2024. Net cash provided by operations was $269.2 million for the three months ended September 30, 2023. Net cash used in investing activities totaled $(28.3) million for the three months ended September 30, 2024, consisting primarily of capital expenditures, compared to $(5.7) million for the three months ended September 30, 2023. Net cash used in financing activities totaled $(46.8) million for the three months ended September 30, 2024, compared to $(92.9) million for the three months ended September 30, 2023.
At September 30, 2024, Par Pacific's cash balance totaled $183.0 million, gross term debt was $546.0 million, and total liquidity was $632.5 million. Net term debt was $363.0 million at September 30, 2024. In the third quarter of 2024, the Company repurchased $21.9 million of common stock.
Laramie Energy
In conjunction with Laramie Energy LLC's ("Laramie's") refinancing and subsequent cash distribution to Par Pacific during the first quarter of 2023, we resumed the application of equity method accounting for our investment in Laramie effective February 21, 2023. During the third quarter of 2024, we recorded $(0.3) million of equity losses. Laramie's total net loss was $(4.2) million in the third quarter of 2024, including unrealized losses on derivatives of $(0.4) million, compared to $(4.7) million in the third quarter of 2023. Laramie's total Adjusted EBITDAX was $9.9 million in the third quarter of 2024, compared to $15.4 million in the third quarter of 2023.
Conference Call Information
A conference call is scheduled for Tuesday, November 5, 2024 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To access the call, please dial 1-833-974-2377 inside the U.S. or 1-412-317-5782 outside of the U.S. and ask for the Par Pacific call. Please dial in at least 10 minutes early to register. The webcast may be accessed online through the Company's website at http://www.parpacific.com on the Investors page. A telephone replay will be available until November 19, 2024 and may be accessed by calling 1-877-344-7529 inside the U.S. or 1-412-317-0088 outside the U.S. and using the conference ID 4223997.
About Par Pacific
Par Pacific Holdings, Inc. (NYSE:PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the "nomnom" convenience store chain in the Pacific Northwest. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com.
Forward-Looking Statements
This news release (and oral statements regarding the subject matter of this news release, including those made on the conference call and webcast announced herein) includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about: expected market conditions; anticipated free cash flows; anticipated refinery throughput; anticipated cost savings; anticipated capital expenditures, including major maintenance costs, and their effect on our financial and operating results, including earnings per share and free cash flow; anticipated retail sales volumes and on-island sales; the anticipated financial and operational results of Laramie Energy, LLC; the amount of our discounted net cash flows and the impact of our NOL carryforwards thereon; our ability to identify, acquire, and develop energy, related retailing, and infrastructure businesses; the timing and expected results of certain development projects, as well as the impact of such investments on our product mix and sales; the anticipated synergies and other benefits of the Billings refinery and associated marketing and logistics assets ("Billings Acquisition"), including renewable growth opportunities, the anticipated financial and operating results of the Billings Acquisition and the effect on Par Pacific's cash flows and profitability (including Adjusted EBITDA and Adjusted Net Income and Free Cash Flow per share); and other risks and uncertainties detailed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any other documents that we file with the Securities and Exchange Commission. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties, such as changes to our financial condition and liquidity; the volatility of crude oil and refined product prices; the Russia-Ukraine war, Israel-Palestine conflict, Houthi attacks in the Red Sea, Iranian activities in the Strait of Hormuz and their potential impacts on global crude oil markets and our business; operating disruptions at our refineries resulting from unplanned maintenance events or natural disasters; environmental risks; changes in the labor market; and risks of political or regulatory changes. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events, or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.
Contact:Ashimi PatelVP, Investor Relations & Sustainability(832)
Condensed Consolidated Statements of Operations(Unaudited)(in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenues
$
2,143,933
$
2,579,308
$
6,142,236
$
6,048,444
Operating expenses
Cost of revenues (excluding depreciation)
1,905,200
2,174,385
5,422,875
5,038,211
Operating expense (excluding depreciation)
147,049
145,183
444,389
330,146
Depreciation and amortization
31,879
35,311
96,679
87,887
General and administrative expense (excluding depreciation)
22,399
23,694
87,322
66,148
Equity earnings from refining and logistics investments
(3,008
)
(3,934
)
(12,846
)
(4,359
)
Acquisition and integration costs
(23
)
4,669
68
17,213
Par West redevelopment and other costs
4,006
3,127
9,048
8,490
Loss on sale of assets, net
—
—
114
—
Total operating expenses
2,107,502
2,382,435
6,047,649
5,543,736
Operating income
36,431
196,873
94,587
504,708
Other income (expense)
Interest expense and financing costs, net
(23,402
)
(20,815
)
(61,720
)
(51,974
)
Debt extinguishment and commitment costs
—
—
(1,418
)
(17,682
)
Other income (loss), net
1,253
(43
)
(1,447
)
301
Equity earnings (losses) from Laramie Energy, LLC
(336
)
—
2,867
10,706
Total other expense, net
(22,485
)
(20,858
)
(61,718
)
(58,649
)
Income before income taxes
13,946
176,015
32,869
446,059
Income tax expense
(6,460
)
(4,600
)
(10,496
)
(6,741
)
Net income
$
7,486
$
171,415
$
22,373
$
439,318
Weighted-average shares outstanding
Basic
55,729
60,223
57,283
60,241
Diluted
56,224
61,404
58,070
61,144
Income per share
Basic
$
0.13
$
2.85
$
0.39
$
7.29
Diluted
$
0.13
$
2.79
$
0.39
$
7.18
Balance Sheet Data(Unaudited)(in thousands)
September 30, 2024
December 31, 2023
Balance Sheet Data
Cash and cash equivalents
$
182,977
$
279,107
Working capital (1)
542,690
190,042
ABL Credit Facility
511,000
115,000
Term debt (2)
546,021
550,621
Total debt, including current portion
1,043,706
650,858
Total stockholders' equity
1,254,026
1,335,424
______________________________(1) Working capital is calculated as (i) total current assets excluding cash and cash equivalents less (ii) total current liabilities excluding current portion of long-term debt. Total current assets include inventories stated at the lower of cost or net realizable value.(2) Term debt includes the Term Loan Credit Agreement and other long-term debt.
Operating Statistics
The following table summarizes key operational data:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Total Refining Segment
Feedstocks throughput (Mbpd) (1)
198.4
198.2
186.3
164.6
Refined product sales volume (Mbpd) (1)
216.2
217.3
200.2
178.7
Hawaii Refinery
Feedstocks throughput (Mbpd)
80.7
82.3
80.4
80.9
Yield (% of total throughput)
Gasoline and gasoline blendstocks
25.6
%
26.5
%
26.0
%
26.7
%
Distillates
38.3
%
42.1
%
38.1
%
40.8
%
Fuel oils
32.0
%
26.5
%
32.0
%
28.0
%
Other products
0.7
%
2.1
%
0.3
%
1.5
%
Total yield
96.6
%
97.2
%
96.4
%
97.0
%
Refined product sales volume (Mbpd)
93.5
90.0
87.8
89.2
Adjusted Gross Margin per bbl ($/throughput bbl) (2)
$
6.10
$
13.47
$
10.06
$
14.74
Production costs per bbl ($/throughput bbl) (3)
4.58
4.50
4.66
4.46
D&A per bbl ($/throughput bbl)
0.25
0.65
0.47
0.68
Montana Refinery
Feedstocks Throughput (Mbpd) (1)
57.2
55.4
49.2
57.1
Yield (% of total throughput)
Gasoline and gasoline blendstocks
46.5
%
50.5
%
49.5
%
49.6
%
Distillates
34.7
%
27.7
%
31.7
%
28.2
%
Asphalt
11.0
%
14.7
%
9.3
%
14.4
%
Other products
4.0
%
3.4
%
4.4
%
3.5
%
Total yield
96.2
%
96.3
%
94.9
%
95.7
%
Refined product sales volume (Mbpd) (1)
60.3
63.5
53.4
62.5
Adjusted Gross Margin per bbl ($/throughput bbl) (2)
$
12.42
$
26.49
$
14.15
$
27.74
Production costs per bbl ($/throughput bbl) (3)
11.61
10.83
13.16
10.10
D&A per bbl ($/throughput bbl)
1.82
1.63
1.69
1.69
Three Months ...
