Par Pacific (PARR) Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA: $91 million

Adjusted Net Income: $39 million, or $0.78 per share

Refining Segment Adjusted EBITDA: $69 million, down from $88 million in Q4 2025

Logistics Segment Adjusted EBITDA: $32 million, consistent with mid-cycle run rate

Retail Segment Adjusted EBITDA: $15 million, down from $22 million in Q4 2025

Cash from Operations: $162 million, excluding working capital outflows of $185 million

Share Repurchases: $28 million at an average price of $38 per share; over 14 million shares repurchased since program inception.

2Strategic Updates and Business Highlights

Achieved record throughput across facilities, particularly in Hawaii (90,000 barrels per day).

Successful start-up of the Hawaii Renewables Unit, with operations transitioning to validate sustainable aviation fuel production.

Strong market conditions with refined product cracks reaching all-time highs, particularly in Asia.

No crack spread hedges in place, allowing full capture of favorable market conditions.

Total liquidity position of $938 million supports strategic objectives and share repurchase framework.

3Forward Guidance and Outlook

Q2 2026 throughput expectations: Hawaii (77,000-81,000 bpd), Washington (40,000-42,000 bpd), Wyoming (14,000-16,000 bpd), and Montana (45,000-49,000 bpd).

Anticipated limited financial impact from the upcoming Hawaii turnaround, with most effects expected to shift into Q3.

Continued focus on optimizing operations and building inventory in the renewables segment, with a more significant ramp-up expected in the latter half of the year.

4Bad News, Challenges, or Points of Concern

Retail segment saw declines in same-store fuel and in-store sales by 3.3% and 1%, respectively, attributed to changing consumer refueling patterns and state-level closures due to flooding in Hawaii.

Hawaii refining margin capture was impacted by a $125 million price lag due to contractual sales structured on prior month pricing, with adjusted capture at 92%, below the target of over 105%.

Challenges in the jet fuel market due to competitive pressures and pricing dynamics, particularly related to the West Coast pricing versus Singapore.

5Notable Q&A Insights

Confirmation of jet yield at approximately 15%, with plans to maximize jet yields in response to favorable spreads.

Potential for a partial reversal of the $125 million price lag in Q2, depending on Singapore gas oil prices.

Discussion on the limited flexibility regarding the timing of the Hawaii turnaround, emphasizing the importance of ensuring product supply during the outage.

Management indicated a cautious approach to share buybacks, aligning with intrinsic value assessments and excess capital positions. Overall, Par Pacific reported a solid first quarter with strong operational performance, but faces challenges in retail sales and refining margin captures. The company remains focused on strategic growth and capital allocation while navigating market dynamics.