Par Pacific Holdings, Inc. (NYSE: PARR) (“Par
Pacific” or the
“Company”) today reported
its financial results for the quarter ended September 30,
2023.
- Net Income of $171.4 million,
or $2.79 per diluted share
- Adjusted Net Income of $193.5
million, or $3.15 per diluted share
- Record Adjusted EBITDA of $255.7
million
Par Pacific reported net income of
$171.4 million, or $2.79 per diluted share, for the quarter
ended September 30, 2023, compared to $267.4 million, or
$4.47 per diluted share, for the same quarter in 2022. Third
quarter 2023 Adjusted Net Income was $193.5 million, compared to
$172.0 million in the third quarter of 2022. Third quarter 2023
Adjusted EBITDA was $255.7 million, compared to $214.1 million
in the third 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 are pleased to report exceptional financial
results during the third quarter, driven by outstanding performance
from our businesses, including the accretive Billings acquisition,”
said William Pate, Chief Executive Officer. “Strong earnings drove
significant free cash flow generation, allowing us to repurchase
$27 million of common stock this quarter while reducing debt and
increasing liquidity.”
Refining
The Refining segment reported operating income
of $194.8 million in the third quarter of 2023, compared to $266.1
million in the third quarter of 2022. Adjusted Gross Margin for the
Refining segment was $350.6 million in the third quarter of 2023,
compared to $250.8 million in the third quarter of 2022.
Refining segment Adjusted EBITDA was $233.6
million in the third quarter of 2023, compared to $187.8 million in
the third quarter of 2022.
HawaiiThe 3-1-2 Singapore Crack Spread was
$23.39 per barrel in the third quarter of 2023, compared to $26.43
per barrel in the third quarter of 2022. Throughput in the third
quarter of 2023 was 82 thousand barrels per day (Mbpd), compared to
80 Mbpd for the same quarter in 2022. Production costs were $4.50
per throughput barrel in the third quarter of 2023, compared to
$5.14 per throughput barrel in the same period of 2022.
The Hawaii refinery’s Adjusted Gross Margin was
$13.47 per barrel during the third quarter of 2023, including a net
price lag impact of approximately $(22.3) million, or $(2.95) per
barrel, compared to $19.49 per barrel during the third quarter of
2022.
MontanaThe RVO Adjusted USGC 3-2-1 Index
averaged $29.65 per barrel in the third quarter of 2023. The
Montana refinery’s throughput in the third quarter of 2023 was 55.4
Mbpd and production costs were $10.83 per throughput barrel.
The Montana refinery’s Adjusted Gross Margin was
$26.49 per barrel during the third quarter of 2023.
WashingtonThe RVO Adjusted Pacific Northwest
3-1-1-1 Index averaged $35.00 per barrel in the third quarter of
2023, compared to $40.58 per barrel in the third quarter of 2022.
The Washington refinery’s throughput was 41 Mbpd in the third
quarter of 2023, compared to 40 Mbpd in the third quarter of 2022.
Production costs were $3.77 per throughput barrel in the third
quarter of 2023, compared to $3.43 per throughput barrel in the
same period of 2022.
The Washington refinery’s Adjusted Gross Margin
was $12.30 per barrel during the third quarter of 2023, compared to
$19.97 per barrel during the third quarter of 2022.
WyomingThe RVO Adjusted USGC 3-2-1 Index
averaged $29.65 per barrel in the third quarter of 2023, compared
to $29.01 per barrel in the third quarter of 2022. The Wyoming
refinery’s throughput was 19 Mbpd in the third quarter of 2023,
compared to 18 Mbpd in the third quarter of 2022. Production costs
were $6.46 per throughput barrel in the third quarter of 2023,
compared to $6.63 per throughput barrel in the same period of
2022.
The Wyoming refinery's Adjusted Gross
Margin was $37.01 per barrel during the third quarter of 2023,
including a FIFO impact of approximately $12.5 million,
or $6.95 per barrel, compared to $19.39 per barrel during the
third quarter of 2022.
Retail
The Retail segment reported operating income of
$13.3 million in the third quarter of 2023, compared to
$17.3 million in the third quarter of 2022. Adjusted Gross
Margin for the Retail segment was $38.2 million in the third
quarter of 2023, compared to $41.8 million in the same quarter of
2022.
Retail segment Adjusted EBITDA was
$16.7 million in the third quarter of 2023, compared to
$20.2 million in the third quarter of 2022. The Retail segment
reported sales volumes of 31.1 million gallons in the third
quarter of 2023, compared to 27.8 million gallons in the same
quarter of 2022. Third quarter 2023 same store sales fuel volumes
and merchandise revenue increased by 8.6% and 6.5%, respectively,
compared to the third quarter of 2022.
Logistics
The Logistics segment reported operating income
of $20.7 million in the third quarter of 2023, compared to
$17.6 million in the third quarter of 2022. Adjusted Gross
Margin for the Logistics segment was $35.3 million in the
third quarter of 2023, compared to $26.2 million in the same
quarter of 2022.
Logistics segment Adjusted EBITDA was
$29.1 million in the third quarter of 2023, compared to $22.5
million in the third quarter of 2022.
Liquidity
Net cash provided by operations totaled $269.2
million for the three months ended September 30, 2023,
compared to $341.4 million for the three months ended
September 30, 2022. Net cash used in investing activities
totaled $(5.7) million for the three months ended September
30, 2023, including $(23.0) million in capital expenditures,
compared to $(8.7) million for the three months ended September 30,
2022. Net cash used in financing activities totaled $(92.9) million
for the three months ended September 30, 2023, compared to $(109.8)
million for the three months ended September 30, 2022.
At September 30, 2023, Par Pacific’s cash
balance totaled $347.1 million, gross debt was $552.2 million, and
total liquidity was $778.2 million. Net debt was $205.0 million at
September 30, 2023. The Company repurchased $27.3 million of
common stock during the third quarter of 2023. In conjunction with
the termination of the Washington intermediation agreement in
October of 2023, the Company upsized its ABL from $600 million to
$900 million, which is expected to result in annual savings in
funding costs of approximately $6 million.
Conference Call Information
A conference call is scheduled for Tuesday,
November 7, 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 November 21, 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 8672030.
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 PatelDirector, Investor
Relations(832) 916-3355apatel@parpacific.com
Condensed Consolidated Statements of
Operations(Unaudited)(in
thousands, except per share data)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
2,579,308 |
|
|
$ |
2,056,285 |
|
|
$ |
6,048,444 |
|
|
$ |
5,512,910 |
|
Operating expenses |
|
|
|
|
|
|
|
Cost of revenues (excluding depreciation) |
|
2,174,385 |
|
|
|
1,642,626 |
|
|
|
5,038,211 |
|
|
|
4,801,800 |
|
Operating expense (excluding depreciation) |
|
145,183 |
|
|
|
85,513 |
|
|
|
330,146 |
|
|
|
246,394 |
|
Depreciation and amortization |
|
35,311 |
|
|
|
25,125 |
|
|
|
87,887 |
|
|
|
74,488 |
|
Gain on sale of assets, net |
|
— |
|
|
|
(185 |
) |
|
|
— |
|
|
|
(170 |
) |
General and administrative expense (excluding depreciation) |
|
23,694 |
|
|
|
16,219 |
|
|
|
66,148 |
|
|
|
47,550 |
|
Equity earnings from refining and logistics investments |
|
(3,934 |
) |
|
|
— |
|
|
|
(4,359 |
) |
|
|
— |
|
Acquisition and integration costs |
|
4,669 |
|
|
|
— |
|
|
|
17,213 |
|
|
|
63 |
|
Par West redevelopment and other costs |
|
3,127 |
|
|
|
2,816 |
|
|
|
8,490 |
|
|
|
5,681 |
|
Total operating expenses |
|
2,382,435 |
|
|
|
1,772,114 |
|
|
|
5,543,736 |
|
|
|
5,175,806 |
|
Operating
income |
|
196,873 |
|
|
|
284,171 |
|
|
|
504,708 |
|
|
|
337,104 |
|
Other income
(expense) |
|
|
|
|
|
|
|
Interest expense and financing costs, net |
|
(20,815 |
) |
|
|
(16,852 |
) |
|
|
(51,974 |
) |
|
|
(51,400 |
) |
Debt extinguishment and commitment costs |
|
— |
|
|
|
343 |
|
|
|
(17,682 |
) |
|
|
(5,329 |
) |
Other income (loss), net |
|
(43 |
) |
|
|
(198 |
) |
|
|
301 |
|
|
|
(149 |
) |
Equity earnings from Laramie Energy, LLC |
|
— |
|
|
|
— |
|
|
|
10,706 |
|
|
|
— |
|
Total other expense, net |
|
(20,858 |
) |
|
|
(16,707 |
) |
|
|
(58,649 |
) |
|
|
(56,878 |
) |
Income before income taxes |
|
176,015 |
|
|
|
267,464 |
|
|
|
446,059 |
|
|
|
280,226 |
|
Income tax expense |
|
(4,600 |
) |
|
|
(68 |
) |
|
|
(6,741 |
) |
|
|
(756 |
) |
Net income |
$ |
171,415 |
|
|
$ |
267,396 |
|
|
$ |
439,318 |
|
|
$ |
279,470 |
|
Weighted-average
shares outstanding |
|
|
|
|
|
|
|
Basic |
|
60,223 |
|
|
|
59,535 |
|
|
|
60,241 |
|
|
|
59,481 |
|
Diluted |
|
61,404 |
|
|
|
59,831 |
|
|
|
61,144 |
|
|
|
59,710 |
|
|
|
|
|
|
|
|
|
Income per
share |
|
|
|
|
|
|
|
Basic |
$ |
2.85 |
|
|
$ |
4.49 |
|
|
$ |
7.29 |
|
|
$ |
4.70 |
|
Diluted |
$ |
2.79 |
|
|
$ |
4.47 |
|
|
$ |
7.18 |
|
|
$ |
4.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data(Unaudited)(in
thousands)
|
September 30, 2023 |
|
December 31, 2022 |
Balance Sheet
Data |
|
|
|
Cash and cash equivalents |
$ |
347,105 |
|
|
$ |
490,925 |
|
Debt, including current
portion |
|
536,940 |
|
|
|
505,532 |
|
Total stockholders’
equity |
|
1,071,259 |
|
|
|
644,537 |
|
|
|
|
|
|
|
|
|
Operating Statistics
The following table summarizes key operational
data:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Total Refining
Segment |
|
|
|
|
|
|
|
Feedstocks throughput (Mbpd)
(1) |
|
198.2 |
|
|
|
138.5 |
|
|
|
164.6 |
|
|
|
132.8 |
|
Refined product sales volume
(Mbpd) (1) |
|
217.3 |
|
|
|
149.3 |
|
|
|
178.7 |
|
|
|
138.5 |
|
|
|
|
|
|
|
|
|
Hawaii
Refinery |
|
|
|
|
|
|
|
Feedstocks throughput (Mbpd) |
|
82.3 |
|
|
|
79.7 |
|
|
|
80.9 |
|
|
|
82.2 |
|
|
|
|
|
|
|
|
|
Yield (% of total throughput) |
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks |
|
26.5 |
% |
|
|
28.1 |
% |
|
|
26.7 |
% |
|
|
25.4 |
% |
Distillates |
|
42.1 |
% |
|
|
39.3 |
% |
|
|
40.8 |
% |
|
|
39.5 |
% |
Fuel oils |
|
26.5 |
% |
|
|
30.1 |
% |
|
|
28.0 |
% |
|
|
31.1 |
% |
Other products |
|
2.1 |
% |
|
|
(0.9 |
)% |
|
|
1.5 |
% |
|
|
0.6 |
% |
Total yield |
|
97.2 |
% |
|
|
96.6 |
% |
|
|
97.0 |
% |
|
|
96.6 |
% |
|
|
|
|
|
|
|
|
Refined product sales volume (Mbpd) |
|
90.0 |
|
|
|
86.6 |
|
|
|
89.2 |
|
|
|
81.6 |
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin per bbl ($/throughput bbl) (2) |
$ |
13.47 |
|
|
$ |
19.49 |
|
|
$ |
14.74 |
|
|
$ |
13.92 |
|
Production costs per bbl ($/throughput bbl) (3) |
|
4.50 |
|
|
|
5.14 |
|
|
|
4.46 |
|
|
|
4.67 |
|
D&A per bbl ($/throughput
bbl) |
|
0.65 |
|
|
|
0.68 |
|
|
|
0.68 |
|
|
|
0.66 |
|
|
|
|
|
|
|
|
|
Montana Refinery |
|
|
|
|
|
|
|
Feedstocks Throughput (Mbpd) (1) |
|
55.4 |
|
|
|
— |
|
|
|
57.1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Yield
(% of total throughput) |
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks |
|
50.5 |
% |
|
|
— |
% |
|
|
49.6 |
% |
|
|
— |
% |
Distillates |
|
27.7 |
% |
|
|
— |
% |
|
|
28.2 |
% |
|
|
— |
% |
Asphalt |
|
14.7 |
% |
|
|
— |
% |
|
|
14.4 |
% |
|
|
— |
% |
Other products |
|
3.4 |
% |
|
|
— |
% |
|
|
3.5 |
% |
|
|
— |
% |
Total yield |
|
96.3 |
% |
|
|
— |
% |
|
|
95.7 |
% |
|
|
— |
% |
|
|
|
|
|
|
|
|
Refined product sales volume (Mbpd) (1) |
|
63.5 |
|
|
|
— |
|
|
|
62.5 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin per bbl ($/throughput bbl) (2) |
$ |
26.49 |
|
|
$ |
— |
|
|
$ |
27.74 |
|
|
$ |
— |
|
Production costs per bbl ($/throughput bbl) (3) |
|
10.83 |
|
|
|
— |
|
|
|
10.10 |
|
|
|
— |
|
D&A per bbl ($/throughput bbl) |
|
1.63 |
|
|
|
— |
|
|
|
1.69 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Washington Refinery |
|
|
|
|
|
|
|
Feedstocks throughput (Mbpd) |
|
41.0 |
|
|
|
40.5 |
|
|
|
40.5 |
|
|
|
33.8 |
|
|
|
|
|
|
|
|
|
Yield (% of total throughput) |
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks |
|
22.8 |
% |
|
|
24.2 |
% |
|
|
23.4 |
% |
|
|
24.4 |
% |
Distillate |
|
34.6 |
% |
|
|
34.1 |
% |
|
|
34.6 |
% |
|
|
34.1 |
% |
Asphalt |
|
20.1 |
% |
|
|
20.2 |
% |
|
|
19.4 |
% |
|
|
19.9 |
% |
Other products |
|
18.8 |
% |
|
|
18.4 |
% |
|
|
18.8 |
% |
|
|
18.5 |
% |
Total yield |
|
96.3 |
% |
|
|
96.9 |
% |
|
|
96.2 |
% |
|
|
96.9 |
% |
|
|
|
|
|
|
|
|
Refined product sales volume (Mbpd) |
|
44.2 |
|
|
|
45.3 |
|
|
|
43.3 |
|
|
|
39.9 |
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin per bbl ($/throughput bbl) (2) |
$ |
12.30 |
|
|
$ |
19.97 |
|
|
$ |
9.91 |
|
|
$ |
16.51 |
|
Production costs per bbl ($/throughput bbl) (3) |
|
3.77 |
|
|
|
3.43 |
|
|
|
4.00 |
|
|
|
4.19 |
|
D&A per bbl ($/throughput bbl) |
|
1.79 |
|
|
|
2.02 |
|
|
|
1.81 |
|
|
|
2.28 |
|
|
|
|
|
|
|
|
|
Wyoming
Refinery |
|
|
|
|
|
|
|
Feedstocks throughput (Mbpd) |
|
19.5 |
|
|
|
18.3 |
|
|
|
17.7 |
|
|
|
16.8 |
|
|
|
|
|
|
|
|
|
Yield (% of total throughput) |
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks |
|
46.7 |
% |
|
|
48.3 |
% |
|
|
46.0 |
% |
|
|
48.8 |
% |
Distillate |
|
47.1 |
% |
|
|
43.9 |
% |
|
|
47.3 |
% |
|
|
43.6 |
% |
Fuel oils |
|
2.5 |
% |
|
|
3.0 |
% |
|
|
2.5 |
% |
|
|
2.5 |
% |
Other products |
|
1.7 |
% |
|
|
2.5 |
% |
|
|
1.7 |
% |
|
|
2.5 |
% |
Total yield |
|
98.0 |
% |
|
|
97.7 |
% |
|
|
97.5 |
% |
|
|
97.4 |
% |
|
|
|
|
|
|
|
|
Refined product sales volume (Mbpd) |
|
19.6 |
|
|
|
17.4 |
|
|
|
18.3 |
|
|
|
17.0 |
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin per bbl ($/throughput bbl) (2) |
$ |
37.01 |
|
|
$ |
19.39 |
|
|
$ |
28.88 |
|
|
$ |
29.20 |
|
Production costs per bbl ($/throughput bbl) (3) |
|
6.46 |
|
|
|
6.63 |
|
|
|
7.34 |
|
|
|
7.14 |
|
D&A per bbl ($/throughput
bbl) |
|
2.41 |
|
|
|
2.40 |
|
|
|
2.69 |
|
|
|
2.82 |
|
|
|
|
|
|
|
|
|
Market Indices ($ per barrel) |
|
|
|
|
|
|
|
3-1-2
Singapore Crack Spread (4) |
$ |
23.39 |
|
|
$ |
26.43 |
|
|
$ |
19.45 |
|
|
$ |
26.52 |
|
RVO
Adj. Pacific Northwest 3-1-1-1 Index (5) |
|
35.00 |
|
|
|
40.58 |
|
|
|
28.51 |
|
|
|
36.89 |
|
RVO
Adj. USGC 3-2-1 Index (6) |
|
29.65 |
|
|
|
29.01 |
|
|
|
25.96 |
|
|
|
29.87 |
|
|
|
|
|
|
|
|
|
Crude Oil Prices ($ per barrel) |
|
|
|
|
|
|
|
Brent |
$ |
85.92 |
|
|
$ |
97.70 |
|
|
$ |
81.93 |
|
|
$ |
102.53 |
|
WTI |
|
82.22 |
|
|
|
91.43 |
|
|
|
77.28 |
|
|
|
98.31 |
|
ANS
(7) |
|
87.95 |
|
|
|
98.84 |
|
|
|
81.77 |
|
|
|
102.39 |
|
Bakken Clearbrook (7) |
|
83.58 |
|
|
|
94.37 |
|
|
|
79.38 |
|
|
|
100.00 |
|
WCS
Hardisty (7) |
|
65.42 |
|
|
|
69.02 |
|
|
|
60.75 |
|
|
|
79.68 |
|
Brent
M1-M3 |
|
1.27 |
|
|
|
3.94 |
|
|
|
0.74 |
|
|
|
4.10 |
|
|
|
|
|
|
|
|
|
Retail Segment |
|
|
|
|
|
|
|
Retail sales volumes (thousands of gallons) |
|
31,137 |
|
|
|
27,829 |
|
|
|
87,710 |
|
|
|
78,599 |
|
________________________________________(1)
Feedstocks throughput and sales volumes per day for the Montana
refinery for the three and nine months ended September 30,
2023, are calculated based on the 92-day and 122-day periods for
which we owned the Montana refinery in 2023, respectively. 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 nine months ended
September 30, 2023, plus the Montana refinery’s throughput or
sales volumes averaged over the periods from July 1, 2023 to
September 30, 2023 and June 1, 2023 to September 30,
2023, respectively. 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
nine months ended September 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. 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;
- Par’s portion of interest, taxes, and depreciation expense from
refining and logistics investments;
- 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.
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 September 30, 2023 |
Refining |
|
Logistics |
|
Retail |
Operating income |
$ |
194,847 |
|
|
$ |
20,736 |
|
|
$ |
13,315 |
|
Operating expense (excluding depreciation) |
|
116,949 |
|
|
|
6,135 |
|
|
|
22,099 |
|
Depreciation and amortization |
|
24,278 |
|
|
|
7,708 |
|
|
|
2,766 |
|
Par’s portion of interest, taxes, and depreciation expense from
refining and logistics investments |
|
821 |
|
|
|
698 |
|
|
|
— |
|
Inventory valuation adjustment |
|
72,823 |
|
|
|
— |
|
|
|
— |
|
Environmental obligation mark-to-market adjustments |
|
(50,153 |
) |
|
|
— |
|
|
|
— |
|
Unrealized gain on derivatives |
|
(8,995 |
) |
|
|
— |
|
|
|
— |
|
Adjusted Gross Margin
(1) (2) |
$ |
350,570 |
|
|
$ |
35,277 |
|
|
$ |
38,180 |
|
Three months ended
September 30, 2022 |
Refining |
|
Logistics |
|
Retail |
Operating income |
$ |
266,091 |
|
|
$ |
17,625 |
|
|
$ |
17,320 |
|
Operating expense (excluding depreciation) |
|
60,233 |
|
|
|
3,710 |
|
|
|
21,570 |
|
Depreciation and amortization |
|
16,542 |
|
|
|
5,059 |
|
|
|
2,865 |
|
Par’s portion of interest, taxes, and depreciation expense from
refining and logistics investments |
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) on sale of assets, net |
|
— |
|
|
|
(241 |
) |
|
|
56 |
|
Inventory valuation adjustment |
|
(91,135 |
) |
|
|
— |
|
|
|
— |
|
Environmental obligation mark-to-market adjustments |
|
(6,731 |
) |
|
|
— |
|
|
|
— |
|
Unrealized loss on derivatives |
|
3,004 |
|
|
|
— |
|
|
|
— |
|
Par West redevelopment and other costs |
|
2,816 |
|
|
|
— |
|
|
|
— |
|
Adjusted Gross Margin
(1) |
$ |
250,820 |
|
|
$ |
26,153 |
|
|
$ |
41,811 |
|
Nine Months Ended September 30, 2023 |
Refining |
|
Logistics |
|
Retail |
Operating income |
$ |
502,123 |
|
|
$ |
54,035 |
|
|
$ |
42,009 |
|
Operating expense (excluding depreciation) |
|
252,802 |
|
|
|
13,178 |
|
|
|
64,166 |
|
Depreciation and amortization |
|
59,827 |
|
|
|
17,801 |
|
|
|
8,577 |
|
Par’s portion of interest, taxes, and depreciation expense from
refining and logistics investments |
|
821 |
|
|
|
905 |
|
|
|
— |
|
Inventory valuation adjustment |
|
126,799 |
|
|
|
— |
|
|
|
— |
|
Environmental obligation mark-to-market adjustments |
|
(174,111 |
) |
|
|
— |
|
|
|
— |
|
Unrealized gain on derivatives |
|
(487 |
) |
|
|
— |
|
|
|
— |
|
Adjusted Gross Margin
(1) (2) |
$ |
767,774 |
|
|
$ |
85,919 |
|
|
$ |
114,752 |
|
Nine Months Ended September 30, 2022 |
Refining |
|
Logistics |
|
Retail |
Operating income |
$ |
316,564 |
|
|
$ |
43,375 |
|
|
$ |
26,890 |
|
Operating expense (excluding depreciation) |
|
174,769 |
|
|
|
11,280 |
|
|
|
60,345 |
|
Depreciation and amortization |
|
48,854 |
|
|
|
15,357 |
|
|
|
8,156 |
|
Par’s portion of interest, taxes, and depreciation expense from
refining and logistics investments |
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) on sale of assets, net |
|
— |
|
|
|
(253 |
) |
|
|
56 |
|
Inventory valuation adjustment |
|
(18,039 |
) |
|
|
— |
|
|
|
— |
|
Environmental obligation mark-to-market adjustments |
|
83,119 |
|
|
|
— |
|
|
|
— |
|
Unrealized gain on derivatives |
|
(10,151 |
) |
|
|
— |
|
|
|
— |
|
Par West redevelopment and other costs |
|
5,681 |
|
|
|
— |
|
|
|
— |
|
Adjusted Gross Margin
(1) |
$ |
600,797 |
|
|
$ |
69,759 |
|
|
$ |
95,447 |
|
________________________________________(1)
There was no LIFO liquidation adjustment or impairment expense for
the three and nine months ended September 30, 2023 and
2022.(2) There was no (gain) loss on sale of assets for the three
and nine months ended September 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 September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
income |
$ |
171,415 |
|
|
$ |
267,396 |
|
|
$ |
439,318 |
|
|
$ |
279,470 |
|
Inventory valuation adjustment |
|
72,823 |
|
|
|
(91,135 |
) |
|
|
126,799 |
|
|
|
(18,039 |
) |
Environmental obligation mark-to-market adjustments |
|
(50,153 |
) |
|
|
(6,731 |
) |
|
|
(174,111 |
) |
|
|
83,119 |
|
Unrealized loss (gain) on derivatives |
|
(8,995 |
) |
|
|
3,004 |
|
|
|
(487 |
) |
|
|
(10,151 |
) |
Acquisition and integration costs |
|
4,669 |
|
|
|
— |
|
|
|
17,213 |
|
|
|
63 |
|
Par West redevelopment and other costs |
|
3,127 |
|
|
|
— |
|
|
|
8,490 |
|
|
|
— |
|
Debt extinguishment and commitment costs |
|
— |
|
|
|
(343 |
) |
|
|
17,682 |
|
|
|
5,329 |
|
Severance costs |
|
615 |
|
|
|
9 |
|
|
|
1,685 |
|
|
|
2,272 |
|
Gain on sale of assets, net |
|
— |
|
|
|
(185 |
) |
|
|
— |
|
|
|
(170 |
) |
Adjusted Net
Income |
|
193,501 |
|
|
|
172,015 |
|
|
|
436,589 |
|
|
|
341,893 |
|
Depreciation and amortization |
|
35,311 |
|
|
|
25,125 |
|
|
|
87,887 |
|
|
|
74,488 |
|
Interest expense and financing costs, net |
|
20,815 |
|
|
|
16,852 |
|
|
|
51,974 |
|
|
|
51,400 |
|
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 |
|
1,519 |
|
|
|
— |
|
|
|
1,726 |
|
|
|
— |
|
Income tax expense |
|
4,600 |
|
|
|
68 |
|
|
|
6,741 |
|
|
|
756 |
|
Adjusted EBITDA
(1) |
$ |
255,746 |
|
|
$ |
214,060 |
|
|
$ |
574,211 |
|
|
$ |
468,537 |
|
___________________________________(1) For the
three and nine months ended September 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 September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted Net Income |
$ |
193,501 |
|
|
$ |
172,015 |
|
|
$ |
436,589 |
|
|
$ |
341,893 |
|
Plus: effect of convertible
securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Numerator for diluted income
per common share |
$ |
193,501 |
|
|
$ |
172,015 |
|
|
$ |
436,589 |
|
|
$ |
341,893 |
|
|
|
|
|
|
|
|
|
Basic weighted-average common
stock shares outstanding |
|
60,223 |
|
|
|
59,535 |
|
|
|
60,241 |
|
|
|
59,481 |
|
Add dilutive effects of common
stock equivalents |
|
1,181 |
|
|
|
296 |
|
|
|
903 |
|
|
|
229 |
|
Diluted weighted-average
common stock shares outstanding |
|
61,404 |
|
|
|
59,831 |
|
|
|
61,144 |
|
|
|
59,710 |
|
|
|
|
|
|
|
|
|
Basic Adjusted Net Income per
common share |
$ |
3.21 |
|
|
$ |
2.89 |
|
|
$ |
7.25 |
|
|
$ |
5.75 |
|
Diluted Adjusted Net Income
per common share |
$ |
3.15 |
|
|
$ |
2.88 |
|
|
$ |
7.14 |
|
|
$ |
5.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, 2023 |
|
Refining |
|
Logistics |
|
Retail |
|
Corporate and Other |
Operating income (loss) by segment |
$ |
194,847 |
|
|
$ |
20,736 |
|
|
$ |
13,315 |
|
|
$ |
(32,025 |
) |
Depreciation and
amortization |
|
24,278 |
|
|
|
7,708 |
|
|
|
2,766 |
|
|
|
559 |
|
Inventory valuation
adjustment |
|
72,823 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Environmental obligation
mark-to-market adjustments |
|
(50,153 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unrealized gain on
derivatives |
|
(8,995 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and integration
costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,669 |
|
Par West redevelopment and
other costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,127 |
|
Severance costs |
|
— |
|
|
|
— |
|
|
|
580 |
|
|
|
35 |
|
Par's portion of interest,
taxes, and depreciation expense from refining and logistics
investments |
|
821 |
|
|
|
698 |
|
|
|
— |
|
|
|
— |
|
Other loss, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43 |
) |
Adjusted EBITDA
(1) |
$ |
233,621 |
|
|
$ |
29,142 |
|
|
$ |
16,661 |
|
|
$ |
(23,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
Refining |
|
Logistics |
|
Retail |
|
Corporate and Other |
Operating income (loss) by segment |
$ |
266,091 |
|
|
$ |
17,625 |
|
|
$ |
17,320 |
|
|
$ |
(16,865 |
) |
Depreciation and amortization |
|
16,542 |
|
|
|
5,059 |
|
|
|
2,865 |
|
|
|
659 |
|
Inventory valuation
adjustment |
|
(91,135 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Environmental obligation
mark-to-market adjustments |
|
(6,731 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unrealized loss on derivatives |
|
3,004 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance costs |
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
— |
|
Loss
(gain) on sale of assets, net |
|
— |
|
|
|
(241 |
) |
|
|
56 |
|
|
|
— |
|
Other loss, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(198 |
) |
Adjusted EBITDA
(1) |
$ |
187,771 |
|
|
$ |
22,452 |
|
|
$ |
20,241 |
|
|
$ |
(16,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
Refining |
|
Logistics |
|
Retail |
|
Corporate and Other |
Operating income (loss) by segment |
$ |
502,123 |
|
|
$ |
54,035 |
|
|
$ |
42,009 |
|
|
$ |
(93,459 |
) |
Depreciation and
amortization |
|
59,827 |
|
|
|
17,801 |
|
|
|
8,577 |
|
|
|
1,682 |
|
Inventory valuation
adjustment |
|
126,799 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Environmental obligation
mark-to-market adjustments |
|
(174,111 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unrealized gain on
derivatives |
|
(487 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and integration
costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,213 |
|
Severance costs |
|
— |
|
|
|
— |
|
|
|
580 |
|
|
|
1,105 |
|
Par West redevelopment and
other costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,490 |
|
Par's portion of interest,
taxes, and depreciation expense from refining and logistics
investments |
|
821 |
|
|
|
905 |
|
|
|
— |
|
|
|
— |
|
Other income, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
301 |
|
Adjusted EBITDA (1) |
$ |
514,972 |
|
|
$ |
72,741 |
|
|
$ |
51,166 |
|
|
$ |
(64,668 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
|
Refining |
|
Logistics |
|
Retail |
|
Corporate and Other |
Operating income (loss) by segment |
$ |
316,564 |
|
|
$ |
43,375 |
|
|
$ |
26,890 |
|
|
$ |
(49,725 |
) |
Depreciation and amortization |
|
48,854 |
|
|
|
15,357 |
|
|
|
8,156 |
|
|
|
2,121 |
|
Inventory valuation adjustment |
|
(18,039 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Environmental obligation mark-to-market adjustments |
|
83,119 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unrealized gain on derivatives |
|
(10,151 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and integration costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63 |
|
Severance costs |
|
40 |
|
|
|
13 |
|
|
|
22 |
|
|
|
2,197 |
|
Loss (gain) on sale of assets,
net |
|
— |
|
|
|
(253 |
) |
|
|
56 |
|
|
|
27 |
|
Other loss, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(149 |
) |
Adjusted EBITDA
(1) |
$ |
420,387 |
|
|
$ |
58,492 |
|
|
$ |
35,124 |
|
|
$ |
(45,466 |
) |
________________________________________(1) For
the three and nine months ended September 30, 2023 and 2022,
there was no LIFO liquidation adjustment, impairment expense, or
gain on curtailment of pension obligation. For the three and nine
months ended September 30, 2023, there was no (gain) loss on
sale of assets. For the three months ended September 30, 2022,
there was no acquisition and integration costs. For the three and
nine months ended September 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 September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income
(loss) |
$ |
(3,479 |
) |
|
$ |
(5,187 |
) |
|
$ |
54,048 |
|
|
$ |
(37,704 |
) |
Commodity derivative income
(loss) |
|
1,889 |
|
|
|
31,085 |
|
|
|
(32,951 |
) |
|
|
104,285 |
|
Loss (gain) on settled
derivative instruments |
|
2,775 |
|
|
|
(13,717 |
) |
|
|
(1,433 |
) |
|
|
(33,529 |
) |
Interest expense and loan
fees |
|
5,783 |
|
|
|
3,364 |
|
|
|
14,742 |
|
|
|
11,235 |
|
Gain on extinguishment of
debt |
|
(3,454 |
) |
|
|
— |
|
|
|
6,644 |
|
|
|
— |
|
Non-cash preferred
dividend |
|
— |
|
|
|
2,782 |
|
|
|
2,910 |
|
|
|
7,508 |
|
Depreciation, depletion,
amortization, and accretion |
|
9,248 |
|
|
|
7,189 |
|
|
|
22,465 |
|
|
|
19,325 |
|
Phantom units |
|
2,425 |
|
|
|
— |
|
|
|
3,171 |
|
|
|
— |
|
Loss (gain) on sale of assets,
net |
|
239 |
|
|
|
(14 |
) |
|
|
307 |
|
|
|
710 |
|
Expired acreage
(non-cash) |
|
— |
|
|
|
259 |
|
|
|
112 |
|
|
|
307 |
|
Total Adjusted
EBITDAX |
$ |
15,426 |
|
|
$ |
25,761 |
|
|
$ |
70,015 |
|
|
$ |
72,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par Pacific (NYSE:PARR)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Par Pacific (NYSE:PARR)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024