• Adjusted EBITDA (2024): $239 million.
• Adjusted Net Income (2024): $0.37 per share.
• Fourth Quarter Adjusted EBITDA: $11 million.
• Fourth Quarter Adjusted Earnings: Loss of $43 million or $0.79 per share.
• Refining Throughput (2024): 187,000 barrels per day.
• Hawaii Throughput (Q4): 83,000 barrels per day.
• Washington Throughput (Q4): 39,000 barrels per day.
• Wyoming Throughput (Q4): 14,000 barrels per day.
• Billings Throughput (Q4): 52,000 barrels per day.
• Retail Segment Adjusted EBITDA (Q4): $22 million.
• Logistics Segment Adjusted EBITDA (Q4): $33 million.
• Corporate Expenses (Q4): $22 million.
• Net Cash Used in Operations (Q4): $16 million.
• Cash Used in Investment Activities (Q4): $48 million.
• Full Year Deferred Turnaround and CapEx: $209 million on a cash basis, $234 million on an accrued basis.
• Share Repurchases (2024): Approximately 5 million shares or 9% of total shares outstanding.
• Gross Term Debt (as of Dec 31): $644 million.
• Total Liquidity (as of Dec 31): $614 million.

• Warning! GuruFocus has detected 7 Warning Signs with PARR.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Par Pacific Holdings Inc (NYSE:PARR) reported a strong operational performance in 2024 with record refining throughput and improvements in safety and logistics.
• The company's diversified business model and unique market presence have provided resilience in a challenging refining market.
• The Retail segment delivered exceptional results with a 10% increase in adjusted EBITDA from 2023, driven by strong in-store gross margins and expanding fuel volumes.
• Par Pacific Holdings Inc (NYSE:PARR) successfully repurchased nearly 5 million shares, or 9% of outstanding shares, at attractive prices, demonstrating strong capital allocation.
• The Hawaii SAF project is progressing on schedule, with strong commercial interest and strategic advantages in logistics and distribution.

Negative Points

• The Wyoming facility experienced an operational incident, resulting in damage to the crude heater furnace, impacting throughput and requiring restoration efforts.
• Fourth quarter adjusted EBITDA and earnings were negative, with a loss of $43 million or $0.79 per share.
• The Refining segment reported an adjusted EBITDA loss of $22 million in the fourth quarter, reflecting challenges in the refining market.
• Washington's throughput and production costs indicate challenges, with the Washington Index showing negative margins in the fourth quarter.
• The Wyoming refinery outage will result in reduced throughput and lost production, impacting financial performance in the first quarter of 2025.

Q & A Highlights

Q: Could you discuss the balance between share repurchases and debt reduction for 2025? A: William Monteleone, President and CEO, explained that the reauthorization of the $250 million share repurchase is to provide additional capacity. The company is comfortable with its current balance sheet and will dynamically approach repurchases versus other alternatives, considering the forward margin outlook and liquidity needs.

Q: What gives you confidence to continue with the SAF project despite other cancellations in the industry? A: William Monteleone highlighted the competitive advantages of the SAF project, including low operating costs due to its location within the refinery, efficient logistics, and a $92 million capital investment. The project benefits from existing marine freight and distribution networks, and there is strong commercial interest from both domestic and international airlines.

Q: Does the Wyoming outage present an opportunity to advance turnaround work scheduled for 2026? A: Richard Creamer, EVP of Refining and Logistics, stated that they are evaluating the possibility of advancing some work scope but noted that catalyst life issues likely necessitate a 2026 outage. The current focus is on rebuilding the crude unit heater to restore full operations by the end of May.

Q: What is the insurance coverage for the Wyoming outage, and will you need to buy product to cover contractual shortfalls? A: Shawn Flores, CFO, mentioned that they have adequate insurance coverage for property and business interruption. The company plans to manage incremental costs within their existing CapEx guidance. William Monteleone added that they are comfortable meeting all contractual obligations without concerns.

Q: Can you explain the diverging capture trends in Hawaii and Washington? A: Shawn Flores noted that Hawaii's capture rates have been strong due to favorable clean product freight rates, while Washington has faced challenges due to weak asphalt demand and general West Coast market conditions. However, they are well-positioned to benefit from potential market volatility due to planned and unplanned maintenance in the region.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.