PARR — Par Pacific Holdings, Inc.

Summary of Par Pacific Holdings, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Full-Year Adjusted EBITDA: $634 million, up 13% from 2024.
• Adjusted Net Income: $390 million, or $7.56 per share.
• Q4 Adjusted EBITDA: $113 million; Adjusted Net Income: $60 million, or $1.17 per share.
• Liquidity: Ended the year with $915 million, a 49% increase.
• Share Repurchases: Reduced shares outstanding by 10% (6.5 million shares repurchased).

2. Strategic Updates and Business Highlights

• Operational Improvements: Achieved record annual refining throughput of 188,000 barrels per day, with Hawaii throughput averaging 84,000 barrels per day, reflecting a 4% increase over the prior three-year average.
• Hawaii Renewables Project: Progressed into commissioning, with expectations to introduce post-treated feedstocks shortly.
• Logistics Segment: Generated record profits, with full-year adjusted EBITDA reaching $126 million.
• Retail Performance: Achieved record adjusted EBITDA of $86 million, driven by improved fuel and in-store margins.

3. Forward Guidance and Outlook

• 2026 Priorities:
  • Enhance mid-cycle earnings from Rocky Mountain assets through targeted projects.
  • Execute the Hawaii turnaround safely and on schedule.
  • Successfully start up and optimize the renewable fuels unit.
  • Maintain disciplined capital allocation.
• Q1 2026 Expectations: Anticipated throughput of 182,000 barrels per day across all facilities, with specific guidance for Hawaii (85,000-89,000 barrels per day) and Wyoming (13,000-16,000 barrels per day).

4. Challenges and Points of Concern

• Operational Challenges: The Wyoming crude heater incident earlier in the year highlighted the need for ongoing reliability improvements.
• Refining Margins: Q4 refining index averaged $13.13 per barrel, down from the previous quarter, reflecting seasonal conditions and impacting profitability.
• Capture Rates: Lower than expected capture rates in Montana (72%) and Wyoming (70%) due to operational disruptions and maintenance activities, which affected margins.

5. Notable Q&A Insights

• Capital Allocation: Management indicated a flexible approach to using excess capital, balancing share repurchases with internal growth opportunities.
• WCS Differential Sensitivity: Each $1 widening of the WCS differential is worth approximately $15-$16 million annually, with management expressing a constructive view on the impact of increased Venezuelan crude on pricing dynamics.
• External Growth Opportunities: The company remains open to M&A but emphasizes disciplined growth that aligns with existing operations, particularly in retail.

Overall, Par Pacific Holdings demonstrated strong financial performance in 2025, despite facing operational challenges and market volatility. The company is well-positioned for continued growth and shareholder value enhancement in 2026.