PARR — Par Pacific Holdings, Inc.

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

1. Key Financial Results and Metrics

• Q4 Adjusted EBITDA: $113 million
• Q4 Adjusted Net Income: $60 million ($1.17 per share)
• Full-Year Adjusted EBITDA: $634 million (up 13% from 2024)
• Full-Year Adjusted Net Income: $390 million ($7.56 per share)
• Liquidity: $915 million at year-end, a 49% increase
• Share Count Reduction: 10% decrease, with 49.7 million shares outstanding
• Production Costs: Q4 production costs varied by region, with Wyoming at $13.27 per barrel due to outages.

2. Strategic Updates and Business Highlights

• Operational Achievements: Record annual refining throughput of 188,000 barrels per day, with Hawaii averaging 84,000 barrels per day.
• Turnaround Activities: Successful execution of Montana's largest-ever turnaround and recovery from the Wyoming heater outage ahead of schedule.
• Renewables Project: Progressed Hawaii's renewable fuels unit into commissioning, with expectations for operational readiness soon.
• Logistics Segment: Achieved record profits, contributing $30 million in adjusted EBITDA for Q4 and $126 million for the full year.
• Retail Performance: Set new financial records with $22 million in adjusted EBITDA for Q4 and $86 million for the full year.

3. Forward Guidance and Outlook

• Q1 2026 Expectations: Anticipated throughput of 182,000 barrels per day across all facilities, with Hawaii expected between 85,000 and 89,000 barrels per day.
• Strategic Priorities for 2026:
  1. Improve mid-cycle earnings from Rocky Mountain assets.
  2. Execute Hawaii turnaround safely and on schedule.
  3. Successfully start and optimize the renewable fuels unit.
  4. Maintain disciplined capital allocation.

4. Bad News, Challenges, or Points of Concern

• Operational Challenges: The Wyoming crude heater incident highlighted vulnerabilities in operational reliability.
• Regional Performance Variability: Lower capture rates in Montana (72%) and Wyoming (70%) due to coker downtime and a regional power outage, impacting margins.
• Refining Index Decline: Q4 refining index averaged $13.13 per barrel, down from the previous quarter, reflecting seasonal conditions.
• Market Conditions: The refining market remains cyclical, with uncertainties in short-term movements and potential competitive pressures from external market dynamics.

5. Notable Q&A Insights

• Capital Allocation: Management indicated a flexible approach to using cash from RIN sales, balancing share repurchases with internal growth opportunities.
• External Growth Opportunities: Discussions on potential retail integration and disciplined M&A strategies, emphasizing the importance of synergy and shareholder value.
• WCS Differential Sensitivity: Management confirmed a sensitivity of approximately $15 million to $16 million annually for each dollar change in WCS differential, indicating a strategic focus on managing crude supply dynamics.

Overall, Par Pacific Holdings demonstrated strong operational performance and financial results in 2025, while also navigating challenges in specific regions and market conditions. The outlook for 2026 remains positive, with a focus on strategic initiatives and disciplined capital management.