• Par Pacific Holdings Reports Strong Second Quarter 2023 Results

    来源: Nasdaq GlobeNewswire / 07 8月 2023 16:15:01   America/New_York

    HOUSTON, Aug. 07, 2023 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific” or the “Company”) today reported its financial results for the quarter ended June 30, 2023.

    • Net Income of $30.0 million, or $0.49 per diluted share
    • Adjusted Net Income of $105.6 million, or $1.73 per diluted share
    • Adjusted EBITDA of $150.8 million
    • Exceptional operational and financial results from Billings in the first month after closing

    Par Pacific reported net income of $30.0 million, or $0.49 per diluted share, for the quarter ended June 30, 2023, compared to net income of $149.1 million, or $2.50 per diluted share, for the same quarter in 2022. Second quarter 2023 Adjusted Net Income was $105.6 million, compared to an Adjusted Net Income of $197.2 million in the second quarter of 2022. Second quarter 2023 Adjusted EBITDA was $150.8 million, compared to $242.1 million in the second quarter of 2022. The strong results are due to excellent operational and commercial execution, especially when considering market cracks during the second quarter of 2023, which are materially below the record market cracks realized during the second quarter of 2022. 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.

    “We closed the Billings acquisition on June 1 and are making significant progress on the integration as well as our renewables initiative,” said William Pate, Chief Executive Officer. “We are pleased with the immediate contribution from Billings and our strong earnings during the second quarter. At this stage in our company’s evolution, our healthy balance sheet and strong liquidity permit us to achieve our growth objectives while also creating value by repurchasing our common stock at attractive prices.”

    Refining

    The Refining segment reported operating income of $44.1 million in the second quarter of 2023, compared to operating income of $168.8 million in the second quarter of 2022. Adjusted Gross Margin for the Refining segment was $205.6 million in the second quarter of 2023, compared to $287.3 million in the second quarter of 2022.

    Refining segment Adjusted EBITDA was $128.6 million in the second quarter of 2023, compared to $228.2 million in the second quarter of 2022.

    Hawaii
    The 3-1-2 Singapore Crack Spread was $13.72 per barrel in the second quarter of 2023, compared to $36.80 per barrel in the second quarter of 2022. Throughput in the second quarter of 2023 was 84 thousand barrels per day (Mbpd), compared to 84 Mbpd for the same quarter in 2022. Production costs were $4.33 per throughput barrel in the second quarter of 2023, compared to $4.50 per throughput barrel in the same period of 2022.

    The Hawaii refinery’s Adjusted Gross Margin was $12.08 per barrel during the second quarter of 2023, including a net price lag benefit of approximately $6.7 million, or $0.88 per barrel, compared to $18.71 per barrel during the second quarter of 2022.

    Montana
    Since our acquisition of the Montana refinery on June 1, 2023 through the end of the second quarter of 2023, the RVO Adjusted USGC 3-2-1 Index averaged $23.20. Throughput from the date of acquisition was 62.6 Mbpd and production costs were $8.07 per throughput barrel.

    The Montana refinery’s Adjusted Gross Margin was $30.98 per barrel during this period.

    Washington
    The RVO Adjusted Pacific Northwest 3-1-1-1 Index averaged $25.13 per barrel in the second quarter of 2023, compared to $47.23 per barrel in the second quarter of 2022. The Washington refinery’s throughput was 41 Mbpd in the second quarter of 2023, compared to 41 Mbpd in the second quarter of 2022. Production costs were $3.98 per throughput barrel in the second quarter of 2023, compared to $3.40 per throughput barrel in the same period of 2022.

    The Washington refinery’s Adjusted Gross Margin was $6.37 per barrel during the second quarter of 2023, compared to $20.50 per barrel during the second quarter of 2022.

    Wyoming

    The RVO Adjusted USGC 3-2-1 Index averaged $21.65 per barrel in the second quarter of 2023, compared to $42.24 per barrel in the second quarter of 2022. The Wyoming refinery’s throughput was 17 Mbpd in the second quarter of 2023, compared to 17 Mbpd in the second quarter of 2022. Production costs were $8.30 per throughput barrel in the second quarter of 2023, compared to $6.97 per throughput barrel in the same period of 2022.

    The Wyoming refinery's Adjusted Gross Margin was $20.56 per barrel during the second quarter of 2023, including a FIFO impact of approximately $(3.3) million, or $(2.19) per barrel, compared to $43.34 per barrel during the second quarter of 2022.

    Retail

    The Retail segment reported operating income of $15.2 million in the second quarter of 2023, compared to $5.5 million in the second quarter of 2022. Adjusted Gross Margin for the Retail segment was $39.2 million in the second quarter of 2023, compared to $27.6 million in the same quarter of 2022.

    Retail segment Adjusted EBITDA was $18.0 million in the second quarter of 2023, compared to $8.1 million in the second quarter of 2022. The Retail segment reported sales volumes of 29.4 million gallons in the second quarter of 2023, compared to 25.9 million gallons in the same quarter of 2022. Second quarter 2023 same store sales fuel volumes and merchandise revenue increased by 10.6% and 12.0%, respectively, compared to the second quarter of 2022.

    Logistics

    The Logistics segment reported operating income of $20.7 million in the second quarter of 2023, compared to $15.9 million in the second quarter of 2022. Adjusted Gross Margin for the Logistics segment was $29.6 million in the second quarter of 2023, compared to $24.9 million in the same quarter of 2022.

    Logistics segment Adjusted EBITDA was $26.0 million in the second quarter of 2023, compared to $21.1 million in the second quarter of 2022.

    Liquidity

    Net cash provided by operations totaled $173.1 million for the three months ended June 30, 2023, compared to $35.3 million for the three months ended June 30, 2022. Net cash used in investing activities totaled $(623.6) million for the three months ended June 30, 2023, including $(280.0) million for the remaining Billings Acquisition base purchase price, $(328.2) million for the purchase of Billings estimated hydrocarbon inventory value and other working capital items, and $(17.5) million in capital expenditures, compared to $(12.7) million for the three months ended June 30, 2022. Net cash used in financing activities totaled $(19.9) million for the three months ended June 30, 2023, compared to net cash provided by financing activities of $22.6 million for the three months ended June 30, 2022.

    At June 30, 2023, Par Pacific’s cash balance totaled $191.0 million, gross debt was $594.7 million, and total liquidity was $464.4 million. Net debt was $403.7 million at June 30, 2023. In August 2023, the Company’s Board of Directors authorized management to repurchase up to $250 million of common stock, with no specified end date. This replaces the prior authorization to repurchase up to $50 million of common stock.

    Conference Call Information

    A conference call is scheduled for Tuesday, August 8, 2023 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 August 22, 2023 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 2594912.

    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. In the Pacific Northwest and the Rockies, Par Pacific owns and operates 124,000 bpd of combined refining capacity across three locations and an extensive energy infrastructure network, including 7.6 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the “nomnom” convenience store chain and supplies ExxonMobil-branded fuel retail stations in the region. Par Pacific owns and operates one of the largest energy infrastructure networks in Hawaii with 94,000 bpd of operating refining capacity, a logistics system supplying the major islands of the state and Hele-branded retail locations. 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 on-island 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 conflict between Russia and Ukraine and its 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 Patel
    Director, Investor Relations
    (832) 916-3355
    apatel@parpacific.com

    Condensed Consolidated Statements of Operations

    (Unaudited)

    (in thousands, except per share data)

     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Revenues$1,783,927  $2,106,332  $3,469,136  $3,456,625 
    Operating expenses       
    Cost of revenues (excluding depreciation) 1,574,806   1,808,925   2,863,826   3,159,174 
    Operating expense (excluding depreciation) 101,843   80,865   184,963   160,881 
    Depreciation and amortization 28,216   25,583   52,576   49,363 
    Loss on sale of assets, net —   15   —   15 
    General and administrative expense (excluding depreciation) 23,168   15,438   42,454   31,331 
    Equity (earnings) from refining and logistics investments (425)  —   (425)  — 
    Acquisition and integration costs 7,273   —   12,544   63 
    Par West redevelopment and other costs 2,613   1,477   5,363   2,865 
    Total operating expenses 1,737,494   1,932,303   3,161,301   3,403,692 
    Operating income 46,433   174,029   307,835   52,933 
    Other income (expense)       
    Interest expense and financing costs, net (14,909)  (18,154)  (31,159)  (34,548)
    Debt extinguishment and commitment costs 38   (5,672)  (17,682)  (5,672)
    Other income, net 379   47   344   49 
    Equity earnings from Laramie Energy, LLC —   —   10,706   — 
    Total other expense, net (14,492)  (23,779)  (37,791)  (40,171)
    Income before income taxes 31,941   150,250   270,044   12,762 
    Income tax expense (1,928)  (1,125)  (2,141)  (688)
    Net income$30,013  $149,125  $267,903  $12,074 


    Weighted-average shares outstanding       
    Basic 60,399    59,479  60,255   59,449 
    Diluted 60,993    59,642  61,020   59,644 
            
    Income per share       
    Basic$0.50  $ 2.51 $4.45  $0.20 
    Diluted$0.49  $ 2.50 $4.39  $0.20 

    Balance Sheet Data
    (Unaudited)

    (in thousands)

     June 30, 2023 December 31, 2022
    Balance Sheet Data   
    Cash and cash equivalents$190,951  $490,925 
    Debt, including current portion 579,115   505,532 
    Total stockholders’ equity 919,311   644,537 

    Operating Statistics

    The following table summarizes key operational data:

     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Total Refining Segment       
    Feedstocks throughput (Mbpd) (1) 162.3   141.3   147.7   129.8 
    Refined product sales volume (Mbpd) (1) 168.8   143.4   159.1   133.0 
            
    Hawaii Refinery       
    Feedstocks throughput (Mbpd) 84.1   84.1   80.2   83.4 
            
    Yield (% of total throughput)       
    Gasoline and gasoline blendstocks 26.8%  22.9%  26.8%  24.0%
    Distillates 41.0%  38.0%  40.1%  39.6%
    Fuel oils 28.2%  33.6%  28.8%  31.5%
    Other products 0.8%  2.4%  1.2%  1.4%
    Total yield 96.8%  96.9%  96.9%  96.5%
            
    Refined product sales volume (Mbpd) 87.2   80.2   88.8   79.2 
            
    Adjusted Gross Margin per bbl ($/throughput bbl) (2)$12.08  $18.71  $15.41  $11.22 
    Production costs per bbl ($/throughput bbl) (3) 4.33   4.50   4.43   4.45 
    D&A per bbl ($/throughput bbl) 0.67   0.66   0.70   0.66 
            
    Montana Refinery       
    Feedstocks Throughput (Mbpd) (1) 62.6   —   62.6   — 
            
    Yield (% of total throughput)       
    Gasoline and gasoline blendstocks 46.3%  —%  46.3%  —%
    Distillates 29.3%  —%  29.3%  —%
    Asphalt 13.3%  —%  13.3%  —%
    Other products 6.1%  —%  6.1%  —%
    Total yield 95.0%  —%  95.0%  —%
            
    Refined product sales volume (Mbpd) (1) 59.3   —   59.3   — 
            
    Adjusted Gross Margin per bbl ($/throughput bbl) (2) 30.98   —   30.98   — 
    Production costs per bbl ($/throughput bbl) (3) 8.07   —   8.07   — 
    D&A per bbl ($/throughput bbl)$1.85  $—  $1.85  $— 
            
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Washington Refinery       
    Feedstocks throughput (Mbpd) 40.9   40.5   40.3   30.4 
            
    Yield (% of total throughput)       
    Gasoline and gasoline blendstocks 24.0%  24.2%  23.8%  24.4%
    Distillate 34.8%  34.4%  34.6%  34.1%
    Asphalt 19.5%  20.8%  19.0%  19.7%
    Other products 18.3%  17.4%  18.7%  18.6%
    Total yield 96.6%  96.8%  96.1%  96.8%
            
    Refined product sales volume (Mbpd) 44.8   44.6   42.8   37.1 
            
    Adjusted Gross Margin per bbl ($/throughput bbl) (2)$6.37  $20.50  $8.66  $14.17 
    Production costs per bbl ($/throughput bbl) (3) 3.98   3.40   4.11   4.71 
    D&A per bbl ($/throughput bbl) 1.82   2.03   1.81   2.45 
            
    Wyoming Refinery       
    Feedstocks throughput (Mbpd) 16.7   16.7   16.8   16.0 
            
    Yield (% of total throughput)       
    Gasoline and gasoline blendstocks 43.7%  48.1%  45.6%  49.1%
    Distillate 48.7%  43.6%  47.3%  43.4%
    Fuel oils 2.6%  2.2%  2.5%  2.3%
    Other products 2.5%  3.4%  1.7%  2.5%
    Total yield 97.5%  97.3%  97.1%  97.3%
            
    Refined product sales volume (Mbpd) 17.3   18.6   17.7   16.7 
            
    Adjusted Gross Margin per bbl ($/throughput bbl) (2)$20.56  $43.34  $24.05  $34.97 
    Production costs per bbl ($/throughput bbl) (3) 8.30   6.97   7.85   7.46 
    D&A per bbl ($/throughput bbl) 2.93   2.92   2.85   3.07 
            
    Market Indices ($ per barrel)       
    3-1-2 Singapore Crack Spread (4)$13.72  $36.80  $17.45  $26.56 
    RVO Adj. Pacific Northwest 3-1-1-1 Index (5) 25.13   47.23   25.21   35.01 
    RVO Adj. USGC 3-2-1 Index (6) 21.65   42.24   24.09   30.31 
            
    Crude Oil Prices ($ per barrel)       
    Brent$77.73  $111.98  $79.90  $104.98 
    WTI 73.56   108.52   74.77   101.80 
    ANS (7) 78.26   112.17   78.63   104.19 
    Bakken Clearbrook (7) 75.37   109.80   77.25   102.86 
    WCS Hardisty (7) 60.07   90.25   58.38   85.10 
    Brent M1-M3 0.44   4.23   0.48   4.18 
            
    Retail Segment       
    Retail sales volumes (thousands of gallons) 29,373   25,862   56,572   50,770 

    ________________________________________
    (1) Feedstocks throughput and sales volumes per day for the Montana refinery for the three and six months ended June 30, 2023 are calculated based on the 30-day period for which we owned the Montana refinery in 2023. As such, the amounts for the total refining segment represent the sum of the Hawaii, Washington and Wyoming refineries’ throughput or sales volumes averaged over the three and six months ended June 30, 2023 plus the Montana refinery’s throughput or sales volumes averaged over the period from June 1, 2023 to June 30, 2023. The 2022 amounts for the total refining segment represent the sum of the Hawaii, Washington and Wyoming refineries’ throughput or sales volumes averaged over the three and six months ended June 30, 2022.

    (2) We calculate Adjusted Gross Margin per barrel by dividing Adjusted Gross Margin by total refining throughput. Adjusted Gross Margin for our Washington refinery is determined under the last-in, first-out (“LIFO”) inventory costing method. Adjusted Gross Margin for our other refineries is determined under the first-in, first-out (“FIFO”) inventory costing method. The definition of Adjusted Gross Margin was modified beginning with the financial results reported for the second quarter in fiscal year 2022. We have recast Adjusted Gross Margin for prior periods when reported to conform to the current presentation. Please read discussion of Adjusted Gross Margin below.

    (3) Management uses production costs per barrel to evaluate performance and compare efficiency to other companies in the industry. There are a variety of ways to calculate production costs per barrel; different companies within the industry calculate it in different ways. We calculate production costs per barrel by dividing all direct production costs, which include the costs to run the refineries including personnel costs, repair and maintenance costs, insurance, utilities, and other miscellaneous costs, by total refining throughput. Our production costs are included in Operating expense (excluding depreciation) on our consolidated statement of operations, which also includes costs related to our bulk marketing operations.

    (4) We believe the 3-1-2 Singapore Crack Spread (or three barrels of Brent crude oil converted into one barrel of gasoline and two barrels of distillates (diesel and jet fuel)) is the most representative market indicator for our operations in Hawaii.

    (5) We believe the RVO Adjusted Pacific Northwest 3-1-1-1 (or three barrels of WTI crude oil converted into one barrel of Pacific Northwest gasoline, one barrel of Pacific Northwest ULSD and one barrel of USGC VGO, less 100% of the RVO cost for gasoline and ULSD) is the most representative market indicator for our operations in Washington with improved historical correlations to our reported adjusted gross margin compared to prior reported indices.

    (6) We believe the RVO Adjusted USGC 3-2-1 (or three barrels of WTI crude oil converted into two barrels of USGC gasoline and one barrel of USGC ULSD, less 100% of the RVO cost) is the most representative market indicator for our operations in Montana and Wyoming with improved historical correlations to our reported adjusted gross margin compared to prior reported indices.

    (7) Crude pricing has been updated to reflect simple averages of outright prices during the relevant period.

    Non-GAAP Performance Measures

    Management uses certain financial measures to evaluate our operating performance that are considered non-GAAP financial measures. These measures should not be considered in isolation or as substitutes or alternatives to their most directly comparable GAAP financial measures or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies since each company may define these terms differently.

    We believe Adjusted Gross Margin (as defined below) provides useful information to investors because it eliminates the gross impact of volatile commodity prices and adjusts for certain non-cash items and timing differences created by our inventory financing agreements and lower of cost and net realizable value adjustments to demonstrate the earnings potential of the business before other fixed and variable costs, which are reported separately in Operating expense (excluding depreciation) and Depreciation and amortization. Management uses Adjusted Gross Margin per barrel to evaluate operating performance and compare profitability to other companies in the industry and to industry benchmarks. We believe Adjusted Net Income (Loss) and Adjusted EBITDA (as defined below) are useful supplemental financial measures that allow investors to assess the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis, the ability of our assets to generate cash to pay interest on our indebtedness, and our operating performance and return on invested capital as compared to other companies without regard to financing methods and capital structure. We believe Adjusted EBITDA by segment (as defined below) is a useful supplemental financial measure to evaluate the economic performance of our segments without regard to financing methods, capital structure, or historical cost basis.

    Beginning with financial results reported for periods in fiscal year 2023, Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA also exclude the mark-to-market losses (gains) associated with our net obligation related to the Washington Climate Commitment Act and Clean Fuel Standard effective beginning in 2023. These modifications were made to better reflect our operating performance and to improve comparability between periods.

    Beginning with financial results reported for periods in fiscal year 2023, Adjusted Net Income (loss) and Adjusted EBITDA also exclude the redevelopment and other costs for our Par West facility, which was shut down in 2020. This modification improves comparability between periods by excluding expenses incurred in connection with the strategic redevelopment of this non-operating facility. We have recast Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA for prior periods when reported to conform to the modified presentation.

    Beginning with financial results report for the second quarter of 2023, Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA also exclude our portion of interest, taxes, and depreciation expense from our refining and logistics investments.

    Adjusted Gross Margin

    Adjusted Gross Margin is defined as operating income (loss) excluding:

    • operating expense (excluding depreciation);
    • depreciation and amortization (“D&A”);
    • impairment expense;
    • loss (gain) on sale of assets, net;
    • inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, contango (gains) and backwardation losses associated with our Washington inventory and intermediation obligation, and purchase price allocation adjustments);
    • LIFO layer liquidation impacts associated with our Washington inventory;
    • Environmental obligation mark-to-market adjustments (which represents the income statement effect of reflecting our Renewable Identification Numbers (“RINs”) liability on a net basis; this adjustment also includes the mark-to-market losses (gains) associated with our net RINs liability; beginning with the first quarter of 2023, this also includes our mark-to-market losses (gains) associated with our net obligation associated with the Washington Climate Commitment Act and Clean Fuel Standard);
    • unrealized loss (gain) on derivatives.
    • Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments

    The following tables present a reconciliation of Adjusted Gross Margin to the most directly comparable GAAP financial measure, operating income (loss), on a historical basis, for selected segments, for the periods indicated (in thousands):

    Three months ended June 30, 2023Refining Logistics Retail
    Operating income$44,139  $20,691  $15,220 
    Operating expense (excluding depreciation) 76,971   3,596   21,276 
    Depreciation and amortization 19,826   5,059   2,732 
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments —   207   — 
    Inventory valuation adjustment 33,118   —   — 
    Environmental obligation mark-to-market adjustments 9,343   —   — 
    Unrealized loss on derivatives 22,178   —   — 
    Adjusted Gross Margin (1) (2)$205,575  $29,553  $39,228 


    Three months ended June 30, 2022Refining Logistics Retail
    Operating income$168,798  $15,898  $5,525 
    Operating expense (excluding depreciation) 59,101   3,797   19,444 
    Depreciation and amortization 16,979   5,211   2,600 
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments —   —   — 
    Gain on sale of assets, net —   (12)  — 
    Inventory valuation adjustment (7,557)  —   — 
    Environmental obligation mark-to-market adjustments 78,548   —   — 
    Unrealized gain on derivatives (28,607)  —   — 
    Adjusted Gross Margin (1)$287,262  $24,894  $27,569 


    Six Months Ended June 30, 2023Refining Logistics Retail
    Operating income$307,276  $33,299  $28,694 
    Operating expense (excluding depreciation) 135,853   7,043   42,067 
    Depreciation and amortization 35,549   10,093   5,811 
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments —   207   — 
    Inventory valuation adjustment 53,976   —   — 
    Environmental obligation mark-to-market adjustments (123,958)  —   — 
    Unrealized loss on derivatives 8,508   —   — 
    Adjusted Gross Margin (1) (2)$417,204  $50,642  $76,572 


    Six Months Ended June 30, 2022Refining Logistics Retail
    Operating income$50,473  $25,750  $9,570 
    Operating expense (excluding depreciation) 117,401   7,570   38,775 
    Depreciation and amortization 32,312   10,298   5,291 
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments —   —   — 
    Gain on sale of assets, net —   (12)  — 
    Inventory valuation adjustment 73,096   —   — 
    Environmental obligation mark-to-market adjustments 89,850   —   — 
    Unrealized gain on derivatives (13,155)  —   — 
    Adjusted Gross Margin (1)$349,977  $43,606  $53,636 

    ________________________________________
    (1) There was no LIFO liquidation adjustment or impairment expense for the three and six months ended June 30, 2023 and 2022.
    (2) There was no (gain) loss on sale of assets for the three and six months ended June 30, 2023.

    Adjusted Net Income (Loss) and Adjusted EBITDA

    Adjusted Net Income (Loss) is defined as Net income (loss) excluding:

    • inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, contango (gains) and backwardation losses associated with our Washington inventory and intermediation obligation, and purchase price allocation adjustments);
    • the LIFO layer liquidation impacts associated with our Washington inventory;
    • Environmental obligation mark-to-market adjustments (which represents the income statement effect of reflecting our Renewable Identification Numbers (“RINs”) liability on a net basis; this adjustment also includes the mark-to-market losses (gains) associated with our net RINs liability; beginning with the first quarter of 2023, this also includes our mark-to-market losses (gains) associated with our net obligation associated with the Washington Climate Commitment Act and Clean Fuel Standard);
    • unrealized (gain) loss on derivatives;
    • acquisition and integration costs;
    • redevelopment and other costs related to Par West;
    • debt extinguishment and commitment costs;
    • increase in (release of) tax valuation allowance and other deferred tax items;
    • changes in the value of contingent consideration and common stock warrants;
    • severance costs;
    • (gain) loss on sale of assets;
    • impairment expense;
    • impairment expense associated with our investment in Laramie Energy and our share of Laramie Energy’s asset impairment losses in excess of our basis difference; and
    • Par’s share of Laramie Energy’s unrealized loss (gain) on derivatives.

    Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding:

    • D&A;
    • interest expense and financing costs;
    • equity losses (earnings) from Laramie Energy excluding Par’s share of unrealized loss (gain) on derivatives, impairment of Par’s investment, and our share of Laramie Energy’s asset impairment losses in excess of our basis difference;
    • Par's portion of interest, taxes, and depreciation expense from refining and logistics investments; and
    • income tax expense (benefit) excluding the increase in (release of) tax valuation allowance.

    The following table presents a reconciliation of Adjusted Net Income (Loss) and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income (loss), on a historical basis for the periods indicated (in thousands):        

     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Net income$30,013  $149,125  $267,903  $12,074 
    Inventory valuation adjustment 33,118   (7,557)  53,976   73,096 
    Environmental obligation mark-to-market adjustments 9,343   78,548   (123,958)  89,850 
    Unrealized loss (gain) on derivatives 22,178   (28,607)  8,508   (13,155)
    Acquisition and integration costs 7,273   —   12,544   63 
    Par West redevelopment and other costs 2,613   —   5,363   — 
    Debt extinguishment and commitment costs (38)  5,672   17,682   5,672 
    Severance costs 1,070   35   1,070   2,263 
    Loss on sale of assets, net —   15   —   15 
    Adjusted Net Income  105,570   197,231   243,088   169,878 
    Depreciation and amortization 28,216   25,583   52,576   49,363 
    Interest expense and financing costs, net 14,909   18,154   31,159   34,548 
    Equity losses (earnings) from Laramie Energy, LLC, excluding Par’s share of unrealized loss (gain) on derivatives and impairment losses —   —   (10,706)  — 
    Par's portion of interest, taxes, and depreciation expense from refining and logistics investments 207   —   207   — 
    Income tax expense 1,928   1,125   2,141   688 
    Adjusted EBITDA (1)$150,830  $242,093  $318,465  $254,477 

    ___________________________________
    (1) For the three and six months ended June 30, 2023 and 2022, there was no LIFO liquidation adjustment, change in value of contingent consideration, change in valuation allowance and other deferred tax items, change in value of common stock warrants, impairment expense, impairments associated with our investment in Laramie Energy, our share of Laramie Energy’s asset impairment losses in excess of our basis difference, or our share of Laramie Energy’s unrealized loss (gain) on derivatives.

    The following table sets forth the computation of basic and diluted Adjusted Net Income (Loss) per share (in thousands, except per share amounts):

     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Adjusted Net Income$105,570  $197,231  $243,088  $169,878 
    Plus: effect of convertible securities —   —   —   — 
    Numerator for diluted income per common share$105,570  $197,231  $243,088  $169,878 
            
    Basic weighted-average common stock shares outstanding 60,399   59,479   60,255   59,449 
    Add dilutive effects of common stock equivalents 594   163   765   195 
    Diluted weighted-average common stock shares outstanding 60,993   59,642   61,020   59,644 
            
    Basic Adjusted Net Income per common share$1.75  $3.32  $4.03  $2.86 
    Diluted Adjusted Net Income per common share$1.73  $3.31  $3.98  $2.85 

    Adjusted EBITDA by Segment

    Adjusted EBITDA by segment is defined as Operating income (loss) excluding:

    • D&A;
    • inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, contango (gains) and backwardation losses associated with our Washington inventory and intermediation obligation, and purchase price allocation adjustments);
    • the LIFO layer liquidation impacts associated with our Washington inventory;
    • Environmental obligation mark-to-market adjustments (which represents the income statement effect of reflecting our Renewable Identification Numbers (“RINs”) liability on a net basis; this adjustment also includes the mark-to-market losses (gains) associated with our net RINs liability; beginning with the first quarter of 2023, this also includes our mark-to-market losses (gains) associated with our net obligation associated with the Washington Climate Commitment Act and Clean Fuel Standard);
    • unrealized (gain) loss on derivatives;
    • acquisition and integration costs;
    • redevelopment and other costs related to Par West;
    • severance costs;
    • (gain) loss on sale of assets;
    • impairment expense; and
    • Par's portion of interest, taxes, and depreciation expense from refining and logistics investments

    Adjusted EBITDA by segment also includes Gain on curtailment of pension obligation and Other income (loss), net, which are presented below operating income (loss) on our condensed consolidated statements of operations.

    The following table presents a reconciliation of Adjusted EBITDA by segment to the most directly comparable GAAP financial measure, operating income (loss) by segment, on a historical basis, for selected segments, for the periods indicated (in thousands):

     Three Months Ended June 30, 2023
     Refining Logistics Retail Corporate and Other
    Operating income (loss) by segment$44,139  $20,691  $15,220  $(33,617)
    Depreciation and amortization 19,826   5,059   2,732   599 
    Inventory valuation adjustment 33,118   —   —   — 
    Environmental obligation mark-to-market adjustments 9,343   —   —   — 
    Unrealized loss on derivatives 22,178   —   —   — 
    Acquisition and integration costs —   —   —   7,273 
    Par West redevelopment and other costs —   —   —   2,613 
    Severance costs —   —   —   1,070 
    Par's portion of interest, taxes, and depreciation expense from refining and logistics investments —   207   —   — 
    Other income, net —   —   —   379 
    Adjusted EBITDA (1)$128,604  $25,957  $17,952  $(21,683)


     Three Months Ended June 30, 2022
     Refining Logistics Retail Corporate and Other
    Operating income (loss) by segment$168,798  $15,898  $5,525  $(16,192)
    Depreciation and amortization 16,979   5,211   2,600   793 
    Inventory valuation adjustment (7,557)  —   —   — 
    Environmental obligation mark-to-market adjustments 78,548   —   —   — 
    Unrealized gain on derivatives (28,607)  —   —   — 
    Severance costs 3   4   22   6 
    Loss (gain) on sale of assets, net —   (12)  —   27 
    Other income, net —   —   —   47 
    Adjusted EBITDA (1)$228,164  $21,101  $8,147  $(15,319)


     Six Months Ended June 30, 2023
     Refining Logistics Retail Corporate and Other
    Operating income (loss) by segment$307,276  $33,299  $28,694  $(61,434)
    Depreciation and amortization 35,549   10,093   5,811   1,123 
    Inventory valuation adjustment 53,976   —   —   — 
    Environmental obligation mark-to-market adjustments (123,958)  —   —   — 
    Unrealized loss on derivatives 8,508   —   —   — 
    Acquisition and integration costs —   —   —   12,544 
    Severance costs —   —   —   1,070 
    Par West redevelopment and other costs —   —   —   5,363 
    Par's portion of interest, taxes, and depreciation expense from refining and logistics investments —   207   —   — 
    Other income, net —   —   —   344 
    Adjusted EBITDA (1)$281,351  $43,599  $34,505  $(40,990)


     Six Months Ended June 30, 2022
     Refining Logistics Retail Corporate and Other
    Operating income (loss) by segment$50,473  $25,750  $9,570  $(32,860)
    Depreciation and amortization 32,312   10,298   5,291   1,462 
    Inventory valuation adjustment 73,096   —   —   — 
    Environmental obligation mark-to-market adjustments 89,850   —   —   — 
    Unrealized gain on derivatives (13,155)  —   —   — 
    Acquisition and integration costs —   —   —   63 
    Severance costs 40   4   22   2,197 
    Loss (gain) on sale of assets, net —   (12)  —   27 
    Other income, net —   —   —   49 
    Adjusted EBITDA (1)$232,616  $36,040  $14,883  $(29,062)

    ________________________________________
    (1) For the three and six months ended June 30, 2023 and 2022, there was no LIFO liquidation adjustment, impairment expense, or gain on curtailment of pension obligation. For the three and six months ended June 30, 2023, there was no (gain) loss on sale of assets. For the three months ended June 30, 2022, there was no acquisition and integration costs. For the six months ended June 30, 2022, there was no loss (gain) on sale of assets, net. For the three and six months ended June 30, 2022, there was no Par West redevelopment and other costs or Par's portion of interest, taxes, and depreciation expense from refining and logistics investments.

    Laramie Energy Adjusted EBITDAX

    Adjusted EBITDAX is defined as net income (loss) excluding commodity derivative loss (gain), loss (gain) on settled derivative instruments, interest expense, gain on extinguishment of debt, non-cash preferred dividend, depreciation, depletion, amortization, and accretion, exploration and geological and geographical expense, bonus accrual, equity-based compensation expense, loss (gain) on disposal of assets, phantom units, and expired acreage (non-cash). We believe Adjusted EBITDAX is a useful supplemental financial measure to evaluate the economic and operational performance of exploration and production companies such as Laramie Energy.

    The following table presents a reconciliation of Laramie Energy’s Adjusted EBITDAX to the most directly comparable GAAP financial measure, net income (loss) for the periods indicated (in thousands):

     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Net income (loss)$6,709  $383  $57,527  $(32,517)
    Commodity derivative income (loss) (12,384)  22,357   (34,840)  73,200 
    Loss (gain) on settled derivative instruments 4,411   (11,625)  (4,208)  (19,812)
    Interest expense and loan fees 4,974   3,715   8,959   7,871 
    Gain on extinguishment of debt —   —   10,098   — 
    Non-cash preferred dividend —   2,640   2,910   4,726 
    Depreciation, depletion, amortization, and accretion 6,193   5,990   13,217   12,135 
    Phantom units 147   —   746   — 
    Loss on sale of assets, net 58   724   68   724 
    Expired acreage (non-cash) 116   44   112   47 
    Total Adjusted EBITDAX$10,224  $24,228  $54,589  $46,374 

    Primary Logo

分享