Par Pacific (PARR) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EBITDA was $81.6 million, with adjusted net income of $28.5 million ($0.49 per share), and net income of $18.6 million ($0.32 per share), reflecting strong reliability, effective maintenance, and the completion of the Billings turnaround.

• Revenues rose 13% year-over-year to $2.02 billion, driven by the Billings Acquisition and higher crude oil prices, despite a decrease in refining sales volumes.

• Retail and logistics segments delivered steady earnings, with retail brands gaining market share and logistics benefiting from Billings, though offset by lower third-party contracts.

• Strategic growth initiatives are progressing, including reliability improvements at Billings and renewable projects in Hawaii.

• Completed comprehensive working capital refinancing and CEO transition, with $66 million in stock repurchases in Q2 2024.

Financial highlights

• Q2 2024 adjusted EBITDA was $81.6 million; adjusted net income was $28.5 million ($0.49 per share); net income was $18.6 million ($0.32 per share).

• Q2 2024 revenues were $2.02 billion, up 13% year-over-year; operating income was $48.6 million.

• Net cash used in operations was $4.7 million, including $61.3 million working capital outflow and $28.8 million in deferred turnaround expenditures.

• Cash and cash equivalents at June 30, 2024, were $179.7 million; total liquidity was $520.4 million.

• $66 million in share repurchases during Q2 2024; $116 million year-to-date through August 5th.

Outlook and guidance

• Q3 system-wide throughput expected between 190,000 and 200,000 barrels per day, with specific guidance for Hawaii, Wyoming, Washington, and Billings.

• Management expects Brent crude oil prices to average $85 per barrel in the second half of 2024, with continued volatility.

• Hawaii Q3 crude differential expected at $6.25–$6.75 per barrel; 10% of Q3 sales hedged at $18 per barrel.

• Billings Q3 operating costs to reflect an incremental $7–8 million for coker maintenance.

• Cash flows and capital resources are expected to meet all requirements for the next 12 months.