Q1 2024 Par Pacific Holdings Inc Earnings Call Transcript
Key Points
- Par Pacific Holdings Inc (PARR) reported a strong first quarter with adjusted EBITDA of $95 million and adjusted net income of $0.69 per share.
- The company's retail and logistics business units delivered stable earnings contributions, with same-store fuel and merchandise sales growth of 6% and 5%, respectively.
- Par Pacific Holdings Inc (PARR) is progressing well with its renewable fuel initiatives, including the $90 million renewable hydrotreater project which is on time and on budget.
- The company has successfully reduced its cost of debt capital and repurchased over $70 million of its stock at attractive prices, demonstrating strong financial management.
- Operational execution in the refining segment has been strong, positioning Par Pacific Holdings Inc (PARR) to increase production during the profitable summer driving season.
- The company faces risks from global product inventory levels being low, which could impact supply and pricing.
- Refined product freight costs remain elevated, potentially affecting cost arbitrage between markets.
- The Billings Refinery faced a shutdown for 10 days due to a power issue, although operations have since been restored.
- First quarter production costs were elevated by approximately $5 million due to increased electricity costs and pre-turnaround related operational expenses.
- The company is pivoting from the larger SAS and green hydrogen project to pursue lower capital return opportunities, indicating a shift in strategic focus.
Good day and welcome to the Par Pacific First Quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal Commerce conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star, then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Schumy Patel, Vice President of Investor Relations. Please go ahead.
Thank you, Danielle, and welcome to Par Pacific's first quarter earnings conference call. Joining me today are well months' Lyons, President and Chief Executive Officer, Richard Kramer, EVP of refining and logistics, and Sean floor as SVP and Chief Financial Officer.
Before we begin, note that our comments today may include forward looking statements. Any forward-looking statements
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