Par Pacific Holdings, Inc. (PARR) Bundle
A Brief History of Par Pacific Holdings, Inc.
Company Overview
Par Pacific Holdings, Inc. operates primarily in the energy sector, focusing on refining, logistics, and retail of both renewable and conventional fuels. As of September 30, 2024, the company owns and operates four refineries located in Hawaii, Wyoming, Washington, and Montana.
Financial Performance
For the nine months ended September 30, 2024, Par Pacific reported revenues of $6,989.3 million and a net income of $439.3 million. In comparison, for the same period in 2023, revenues were $6,989.3 million with a net income of $592.97 million. The decline in net income reflects a challenging market environment, especially considering the fluctuating prices of crude oil and retail gasoline.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenues | $6,989.3 million | $6,989.3 million |
| Net Income | $439.3 million | $592.97 million |
| Basic Income per Share | $0.39 | $7.29 |
| Diluted Income per Share | $0.39 | $7.18 |
Acquisitions and Strategic Developments
On June 1, 2023, Par Pacific completed the Billings Acquisition, purchasing a refinery and associated assets from ExxonMobil for approximately $625.4 million. This acquisition significantly expanded the company's operational footprint and capabilities in the refined products market.
Market Conditions
Crude oil pricing has shown volatility, with Brent crude averaging $78.71 per barrel in Q3 2024, down from an average of $85.92 per barrel in Q3 2023. This decline has impacted the company's margins and overall profitability. Average U.S. retail gasoline prices decreased from $3.69 per gallon in 2023 to $3.51 per gallon in 2024.
Operational Segments
Par Pacific operates through four main segments: Refining, Retail, Logistics, and Corporate. As of September 30, 2024, the revenues generated by each segment were as follows:
| Segment | Revenues (Q3 2024) |
|---|---|
| Refining | $2,080.5 million |
| Logistics | $77.7 million |
| Retail | $150.2 million |
Stock Performance and Shareholder Returns
Par Pacific has been active in its share repurchase program, which was expanded to $250 million in August 2023. During the three months ended September 30, 2024, the company repurchased approximately 932,589 shares at an average price of $23.52 per share, totaling $22.1 million.
Debt and Financial Obligations
As of September 30, 2024, the company's total debt was approximately $1.057 billion, with significant commitments under various credit facilities. The company has been managing its debt levels while maintaining compliance with all financial covenants.
| Debt Summary | Amount (in thousands) |
|---|---|
| ABL Credit Facility | $511,000 |
| Term Loan Credit Agreement | $541,750 |
| Other Long-term Debt | $4,271 |
| Total Debt | $1,057,021 |
Future Outlook
The company anticipates continued challenges in the energy sector, particularly with fluctuating oil prices and regulatory changes impacting the refining industry. However, Par Pacific's strategic acquisitions and operational efficiencies are expected to bolster its market position moving forward.
Recent Leadership Changes
William Pate, the CEO, announced his retirement effective May 1, 2024. This transition comes as the company aims to navigate through evolving market dynamics and capitalize on growth opportunities in both conventional and renewable energy sectors.
A Who Owns Par Pacific Holdings, Inc. (PARR)
Major Shareholders
As of 2024, the ownership structure of Par Pacific Holdings, Inc. (PARR) is characterized by a combination of institutional investors and insider holdings. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 5,870,000 |
| The Vanguard Group, Inc. | 8.3% | 4,590,000 |
| Dimensional Fund Advisors LP | 6.1% | 3,380,000 |
| Par Pacific Holdings, Inc. (Insider Holdings) | 5.2% | 2,900,000 |
| State Street Corporation | 4.9% | 2,730,000 |
| Other Institutional Investors | 20.0% | 11,100,000 |
| Retail and Other Investors | 44.0% | 24,300,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Par Pacific Holdings, Inc. As of September 30, 2024, insiders collectively own approximately 5.2% of the total shares. This includes executives and board members who have a vested interest in the company's performance.
Recent Changes in Ownership
In 2023, Par Pacific completed the Billings Acquisition, which significantly impacted the stock's performance and ownership dynamics. The acquisition was finalized for approximately $625.4 million, including working capital adjustments. This strategic move has attracted additional institutional interest.
Stock Performance
As of the end of September 2024, the stock price of Par Pacific Holdings, Inc. was $22.35, reflecting a year-to-date increase of approximately 18.5%. This performance demonstrates strong market confidence post-acquisition.
Market Capitalization
The market capitalization of Par Pacific Holdings, Inc. is approximately $1.25 billion as of September 30, 2024, indicating its position as a mid-cap player in the energy sector.
Institutional Investment Trends
Institutional ownership has seen a steady increase, with institutions holding about 50% of the shares, highlighting a growing confidence among large investors in Par Pacific’s operational strategy and market potential.
Conclusion
Overall, Par Pacific Holdings, Inc. displays a diverse ownership structure with robust institutional backing and a solid insider presence. The recent acquisition and positive market trends further position the company favorably within the energy industry.
Par Pacific Holdings, Inc. (PARR) Mission Statement
Par Pacific Holdings, Inc. focuses on providing both renewable and conventional fuels to the western United States. The company operates through three primary business segments: Refining, Retail, and Logistics.
Financial Overview
As of September 30, 2024, Par Pacific Holdings reported the following financial metrics:
| Financial Metric | Value (in millions) |
|---|---|
| Revenues | $6,142.2 |
| Cost of Revenues (excluding depreciation) | $5,422.9 |
| Operating Expense (excluding depreciation) | $444.4 |
| Depreciation and Amortization | $96.7 |
| Net Income | $22.4 |
| Capital Expenditures | $87.9 |
Segment Performance
For the nine months ended September 30, 2024, the performance of each segment was as follows:
| Segment | Revenues (in millions) | Operating Income (in millions) |
|---|---|---|
| Refining | $5,964.4 | $82.8 |
| Logistics | $222.1 | $64.6 |
| Retail | $443.2 | $45.3 |
Recent Acquisitions
The company completed the Billings Acquisition on June 1, 2023, for a total purchase price of approximately $625.4 million, which included working capital adjustments. This acquisition significantly contributed to the recent revenue growth.
Operating Statistics
Key operating statistics for the refining segment for the three months ended September 30, 2024:
| Metric | Value |
|---|---|
| Feedstocks Throughput (Mbpd) | 198.4 |
| Refined Product Sales Volume (Mbpd) | 216.2 |
| Total Yield (%) | 96.6 |
| Adjusted Gross Margin per bbl ($) | $6.10 |
| Production Costs per bbl ($) | $4.58 |
Debt and Liquidity Position
As of September 30, 2024, the company’s debt and liquidity position was as follows:
| Debt Type | Amount (in millions) |
|---|---|
| ABL Credit Facility | $511.0 |
| Term Loan Credit Agreement | $541.8 |
| Total Debt | $1,043.7 |
| Cash and Cash Equivalents | $183.0 |
| Availability under ABL Credit Facility | $449.5 |
Conclusion of Mission Statement
Par Pacific Holdings, Inc. aims to enhance its operational efficiency and expand its market presence while maintaining a commitment to sustainable energy practices.
How Par Pacific Holdings, Inc. (PARR) Works
Company Overview
Par Pacific Holdings, Inc. operates primarily in the refining and marketing of petroleum products, with a focus on the western United States. The company runs four refineries located in Hawaii, Wyoming, Washington, and Montana, and engages in retail operations through fuel outlets and convenience stores.
Financial Performance
For the nine months ended September 30, 2024, Par Pacific reported:
- Revenues: $6.1 billion, a slight increase from $6.0 billion in the same period of 2023.
- Cost of Revenues (excluding depreciation): $5.4 billion, compared to $5.0 billion in 2023.
- Operating Expense (excluding depreciation): $444.4 million, an increase from $330.1 million in 2023.
- Net Income: $22.4 million for the nine months ended September 30, 2024, down from $439.3 million in 2023.
Segment Performance
The company operates through three primary segments: Refining, Retail, and Logistics. The financial results for these segments for the nine months ended September 30, 2024, are summarized in the table below:
| Segment | Revenues (in thousands) | Cost of Revenues (in thousands) | Operating Income (in thousands) |
|---|---|---|---|
| Refining | $5,964,435 | $5,457,167 | $82,811 |
| Logistics | $222,058 | $131,303 | $64,579 |
| Retail | $443,189 | $321,894 | $45,323 |
| Total | $6,142,236 | $5,422,875 | $94,587 |
Refining Operations
The refining segment has experienced fluctuations in profitability largely due to changes in crack spreads. The Adjusted Gross Margin for the refining segment was:
- Q3 2024: $142.2 million, down from $350.6 million in Q3 2023.
- Nine Months 2024: $525.9 million, a decrease from $767.8 million in the same period of 2023.
The decline in margins is attributed to lower average crack spreads across the company's refineries.
Retail Operations
Par Pacific's retail segment includes fuel retail outlets and convenience stores under various brands. For the nine months ended September 30, 2024:
- Operating Income: $45.3 million, an increase from $42.0 million in 2023.
- Fuel sales volumes increased by 4%, while merchandise revenues rose by 6%.
Logistics Operations
The logistics segment, which includes the transportation and storage of refined products, reported:
- Operating Income: $64.6 million for the nine months ended September 30, 2024, up from $54.0 million in 2023.
- This increase was primarily due to the acquisition of logistics assets in June 2023.
Debt and Financing
Par Pacific's interest expense and financing costs for the nine months ended September 30, 2024, totaled $61.7 million, an increase from $52.0 million in 2023. The rise in costs was linked to higher balances in the ABL Credit Facility used for inventory purchases.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, amounted to $87.9 million, compared to $53.7 million in the same period of 2023.
Environmental Obligations
As of September 30, 2024, environmental obligations totaled approximately $197.6 million, reflecting the company's commitments related to renewable volume obligations.
Inventory Management
As of September 30, 2024, the company reported inventory valued at approximately $1.07 billion, broken down as follows:
| Inventory Type | Value (in thousands) |
|---|---|
| Crude oil and feedstocks | $292,074 |
| Refined products and blendstock | $499,680 |
| Warehouse stock and other | $280,169 |
| Total | $1,071,923 |
Conclusion
Par Pacific Holdings, Inc. continues to navigate a complex landscape within the petroleum industry, characterized by fluctuating market conditions and operational challenges. The company's focus on refining, retail, and logistics, along with strategic acquisitions, aims to enhance its competitive position in the market.
How Par Pacific Holdings, Inc. (PARR) Makes Money
Business Segments Overview
Par Pacific Holdings, Inc. operates primarily in three business segments: Refining, Logistics, and Retail. As of 2024, these segments contribute to the company's revenue generation and profitability.
Refining Segment
The refining segment is a major revenue driver for Par Pacific, with total revenues for the nine months ended September 30, 2024, amounting to $5.96 billion. This represents an increase from $5.85 billion in the same period of 2023.
Operating income for this segment was $82.8 million for the nine months ended September 30, 2024, a decrease from $502.1 million in 2023. The decrease was primarily due to:
- A decline of $394.4 million reflecting lower crack spreads.
- An increase of $133.0 million in consolidated environmental costs.
- A decrease of $37.3 million driven by a decline in refined product sales volumes.
Adjusted Gross Margin for the refining segment decreased to $525.9 million in 2024 from $767.8 million in 2023.
| Refinery | Adjusted Gross Margin per Barrel | Crack Spread Index |
|---|---|---|
| Hawaii | $10.06 | $14.04 |
| Washington | $4.03 | $19.49 |
| Wyoming | $14.42 | $17.79 |
Logistics Segment
The logistics segment generated revenues of $222.1 million for the nine months ended September 30, 2024, up from $189.9 million in the prior year. Operating income for this segment rose to $64.6 million, benefiting from increased contributions from logistics assets acquired during the Billings Acquisition.
Retail Segment
For the retail segment, revenues reached $443.2 million in the nine months ended September 30, 2024, slightly up from $442.5 million in 2023. Operating income was $45.3 million, a modest increase from $42.0 million in the previous year. This growth was driven by:
- A 4% increase in fuel sales volumes.
- A $2.8 million increase in merchandise revenues.
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Refining | $5,964 | $5,848 |
| Logistics | $222 | $190 |
| Retail | $443 | $442 |
Cost Structure
For the nine months ended September 30, 2024, the total cost of revenues (excluding depreciation) was $5.42 billion, compared to $5.04 billion in 2023. The breakdown is as follows:
- Refining: $5.46 billion
- Logistics: $131.3 million
- Retail: $321.9 million
Operating expenses (excluding depreciation) totaled $444.4 million, reflecting an increase driven by the Billings Acquisition.
Net Income and Earnings
Net income for the nine months ended September 30, 2024, was $22.4 million, a significant decrease from $439.3 million in the same period of 2023. This decline was largely attributed to reduced operational profitability across the refining segment.
Debt and Financing Costs
For the nine months ended September 30, 2024, interest expense and financing costs amounted to $61.7 million, an increase from $52.0 million in 2023.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $22.4 | $439.3 |
| Interest Expense (in millions) | $61.7 | $52.0 |
| Operating Income (in millions) | $94.6 | $504.7 |
Conclusion on Revenue Generation
Par Pacific Holdings, Inc. generates revenue through its diversified operations in refining, logistics, and retail, with significant contributions from recent acquisitions. Despite facing challenges such as lower crack spreads and increased costs, the company continues to adapt its strategies to maintain profitability.
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Resources:
- Par Pacific Holdings, Inc. (PARR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Par Pacific Holdings, Inc. (PARR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Par Pacific Holdings, Inc. (PARR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.