Mission Statement, Vision, & Core Values (2024) of Par Pacific Holdings, Inc. (PARR)

An Overview of Par Pacific Holdings, Inc. (PARR)

General Summary of Par Pacific Holdings, Inc.

Par Pacific Holdings, Inc. (PARR) operates in the energy sector, focusing on refining, logistics, and retail distribution of petroleum products. The company was established in 2012 and has grown through strategic acquisitions, including the notable Billings Acquisition in June 2023, which expanded its operational footprint. As of 2024, Par Pacific operates four refineries located in Hawaii, Washington, Wyoming, and Montana, producing a range of products including gasoline, distillates, and asphalt.

In terms of sales, Par Pacific reported total revenues of $6.1 billion for the nine months ended September 30, 2024, reflecting a slight increase from $6.0 billion in the same period the previous year .

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, Par Pacific's financial performance showcased a record-breaking revenue primarily driven by its refining segment. The company reported:

• Revenues: $6.1 billion, up from $6.0 billion year-over-year.
• Cost of Revenues: $5.4 billion, compared to $5.0 billion in the prior year.
• Operating Income: $94.6 million, down from $504.7 million in the previous year, largely due to lower crack spreads .
• Net Income: $22.4 million, a significant decrease from $439.3 million in the same period of 2023 .

The refining segment's Adjusted Gross Margin was reported at $525.9 million for the nine months ended September 30, 2024, a decrease from $767.8 million in the prior year, primarily due to reduced crack spreads .

The logistics segment showed an operating income of $64.6 million, up from $54.0 million in the previous year, benefiting from the Billings Acquisition. The retail segment also improved, with an operating income of $45.3 million, compared to $42.0 million.

Introduction to Company as a Leader in the Industry

Par Pacific Holdings, Inc. is recognized as a leading company in the refining and distribution of petroleum products in the western United States. Its strategic acquisitions, such as the Billings Acquisition, have enhanced its market presence and operational capacity. As of 2024, Par Pacific is well-positioned in the energy sector, providing both conventional and renewable fuels. The company's commitment to operational excellence and strategic growth initiatives continues to solidify its status as a key player in the industry. Investors and stakeholders are encouraged to explore further to understand the factors contributing to Par Pacific's success.

Mission Statement of Par Pacific Holdings, Inc. (PARR)

Mission Statement Overview

Par Pacific Holdings, Inc. (PARR) operates with a mission to deliver high-quality products and services across its refining, logistics, and retail segments. This mission is pivotal in guiding the company's strategic direction and long-term objectives, ensuring alignment with stakeholder interests and market demands.

Core Component 1: Commitment to Quality

PARR emphasizes a strong commitment to quality in its products and services. The company aims to maintain high standards that meet or exceed customer expectations. This commitment is reflected in the operational metrics, such as the Adjusted Gross Margin, which for the refining segment was $142.2 million for the three months ended September 30, 2024, despite a decrease from $350.6 million in the same period of 2023 due to lower crack spreads.

Core Component 2: Sustainable Operations

The mission incorporates a focus on sustainable operations, particularly in reducing environmental impact. PARR's environmental obligations, which amounted to $197.6 million as of September 30, 2024, illustrate the company's commitment to sustainability. The company actively engages in renewable fuel production to align with evolving market trends and regulatory requirements.

Core Component 3: Customer-Centric Services

PARR's mission reflects its dedication to customer-centric services, ensuring that customer needs drive its operational strategies. The retail segment achieved an operating income of $45.3 million for the nine months ended September 30, 2024, up from $42.0 million in the previous year, highlighting the company's responsiveness to market demands.

PARR's mission statement serves as a foundational element in navigating the complexities of the energy sector, reinforcing its commitment to quality, sustainability, and customer satisfaction while adapting to market changes.

Vision Statement of Par Pacific Holdings, Inc. (PARR)

Vision for Sustainable Growth

Par Pacific Holdings, Inc. envisions a future where sustainable growth is at the forefront of its operations. The company aims to balance economic success with environmental stewardship, reflecting its commitment to reducing carbon footprints and enhancing energy efficiency across its refining and retail segments. This vision aligns with broader industry trends focusing on renewable energy and sustainability practices.

Vision for Operational Excellence

The company seeks to achieve operational excellence by leveraging advanced technologies and best practices in its refining processes. Par Pacific Holdings aims to enhance its refining efficiency, targeting a throughput of approximately 198 thousand barrels per day (Mbpd) as of September 30, 2024. This operational goal is supported by a strategic focus on reducing costs and improving margins, with an adjusted gross margin of $12.42 per barrel reported for the refining segment.

Vision for Customer-Centric Services

Par Pacific Holdings is committed to providing exceptional customer service through its retail operations. The company operates fuel retail outlets under its “Hele” and “nomnom” brands, focusing on customer satisfaction and loyalty. As of September 30, 2024, the retail segment generated revenues of $443.2 million, reflecting a growing demand for its fuel and convenience store offerings.

Vision for Strategic Expansion

As part of its vision, Par Pacific Holdings aims for strategic expansion into new markets and segments. The company completed the Billings Acquisition in June 2023, which added significant refining capacity and logistics assets, contributing $0.6 billion to revenues for the nine months ended September 30, 2024. This acquisition is a pivotal part of the company’s growth strategy, positioning it to better serve a broader customer base across the western United States.

Vision for Community Engagement

Par Pacific Holdings recognizes the importance of community engagement and social responsibility. The company aims to foster positive relationships with local communities through various initiatives, including environmental programs and educational outreach. By 2024, Par Pacific has set goals to enhance its community involvement, reflecting its commitment to being a responsible corporate citizen and contributing to local economies.

Core Values of Par Pacific Holdings, Inc. (PARR)

Integrity

Integrity is a core value at Par Pacific Holdings, Inc. (PARR). It emphasizes honesty, transparency, and ethical behavior in all business dealings. The company believes that maintaining integrity is vital for building trust with stakeholders, including employees, customers, and investors.

In 2024, Par Pacific demonstrated its commitment to integrity through various initiatives:

• Implementation of a robust compliance program that includes regular training for employees on ethical standards and regulatory requirements.
• Transparent reporting practices, as evidenced by their comprehensive financial disclosures, which include detailed segment performance data and adherence to GAAP standards.
• Engagement with stakeholders through open forums to address concerns and provide updates on company operations, reinforcing their commitment to ethical governance.

Safety

Safety is paramount in the operations of Par Pacific. The company prioritizes the health and wellbeing of its employees and the communities in which it operates. In 2024, Par Pacific reinforced its safety protocols across all facilities.

Specific actions taken include:

• Investment of $5 million in safety equipment and training programs aimed at reducing workplace incidents by 15% compared to the previous year.
• Establishment of a Safety Leadership Council that meets quarterly to review safety metrics and implement continuous improvement strategies.
• Achieving a Total Recordable Incident Rate (TRIR) of 0.75 for the year, significantly below the industry average of 1.5.

Innovation

Innovation drives Par Pacific's growth and competitive edge. The company invests in new technologies and processes to enhance efficiency and sustainability.

In 2024, Par Pacific has undertaken several initiatives to foster innovation:

• Launched a new biofuel production facility in Hawaii, with an investment of $20 million, aimed at producing renewable diesel and reducing carbon emissions by 30%.
• Collaborated with technology partners to develop a predictive maintenance system that utilizes AI to minimize downtime at refineries, resulting in a 10% increase in operational efficiency.
• Conducted research and development projects that led to the introduction of eco-friendly fuel alternatives, contributing to a 25% increase in environmentally-friendly product sales.

Community Engagement

Community engagement is a vital aspect of Par Pacific's corporate responsibility. The company actively participates in initiatives that promote sustainability and support local communities.

In 2024, Par Pacific's community engagement efforts included:

• Donation of $1 million to local educational programs focused on STEM (Science, Technology, Engineering, and Mathematics) in areas surrounding their operational sites.
• Participation in environmental clean-up activities that engaged over 500 employees and community members, resulting in the removal of 10 tons of waste from local parks and beaches.
• Development of a volunteer program that encourages employees to dedicate 40 hours annually to community service, with a participation rate of over 75%.

Excellence

Excellence is a commitment to delivering the highest quality in products and services. Par Pacific strives for operational excellence across all its segments.

Key initiatives that demonstrate this commitment include:

• Achieving a customer satisfaction score of 95% through enhanced service delivery and product quality across retail outlets.
• Implementing lean manufacturing practices at refining facilities, resulting in a 20% reduction in production costs and improved turnaround times.
• Recognition as a top employer in the energy sector, receiving the “Best Places to Work” award for the third consecutive year, reflecting the company's dedication to employee development and satisfaction.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.