Par Pacific Holdings Inc 2024年度报告

Par Pacificis a growing energy company providing both renewable and conventional fuels to thewestern United States. We combine experience in the energy industry with corporate financingknow-how. We bring this unique strength to complex markets where we seek out diamonds in therough. As a nimble, entrepreneurial organization, we actively pursue new opportunities in responseto local market demands and changing external environments. Our Holdings at a Glance LOGISTICSWe own and operate an RETAIL REFINING extensive energy infrastructurenetwork, including 13 million barrelsof storage, and marine, rail, rack,and pipeline assets across thewestern United States. Our commitment to excellenceextends to the retail sector withthe development and successfullaunch of Hele gas stations inHawaii and nomnom locations inthe Pacific Northwest. Our four refineries operate inlogistically-complex markets,processing crude oil into refinedproducts to serve our localcommunities. • Par Hawaii Refining• U.S. Oil• Wyoming Refining Company• Par Montana • Hele• nomnom Dear Fellow Shareholders, 2024 was a challenging financial year for our business; nonetheless, we continue to advance strategicgrowth projects to ensure we address market needs far into the future. During the year, the globalrefining market quickly moved from shortage to excess, and our 2024 benchmark refining marketindices declined over 40% compared to 2023. As a result, Adjusted Earnings declined over 95% to$0.37 per share and Adjusted EBITDA declined over 65% to $239 million. Normally, a decline of this magnitude would represent an existential moment. However, we haveenormously improved the underlying profitability of our business in the five years since the 2020COVID lockdowns. We have positioned the company to both capture upside, while simultaneouslyinsulating our earnings during market pull backs. The combination of rationalized refining capacity,surging demand for distillates, and dramatically increased global freight rates drove healthy financialreturns to our enterprise in 2022 and 2023, and we did not let that opportunity go to waste. Weoperated our plants safely and reliably during two of the best years in refining market history, gen-erating over $1 billion in cash from operations. Our significant net operating loss (NOL) positionenabled us to allocate most of these substantial profits towards achieving our strategic objectives,rather than to taxes. Since 2020, we have strengthened our balance sheet, enhanced our workingcapital position, renegotiated key contracts, and acquired the Montana assets from ExxonMobil.Each of these actions has improved our operational and financial position, and serve as a sourcefor future earnings growth. The best example of the improvement in our business resiliency and earnings power lies in ouroldest business: Hawaii Refining. Since 2019, we have improved Adjusted Gross Margin relative tothe market index by over $6 per barrel, translating to a $140 million increase in 2024 contributioncompared to 2019. This improvement is unrelated to the market forces that drive our benchmarkrefining indices. The best metric to use in evaluating these improvements is Hawaii’s AdjustedGross Margin compared to our Hawaii Index, which we refer to as “Capture.” In the refining business, equilibrium can be an apparition. There is a wide chasm between themaximum price a consumer is willing to pay for fuel and a refiner’s marginal cost. The best measureof baseline refinery margins are the deep merchant refining centers of Singapore, the U.S. Gulf Coastand Rotterdam. For much of the last 20 years, Singapore has represented the lowest margins in theworld. In investing terms, Singapore margins are the equivalent of the risk-free rate. All otherrefined product markets trade via reference to the Singapore margin. However, as you focus onsmaller, less liquid and remote markets, specific elements start to drive differences in the availablemargin. Each of our refining and logistics systems are located in such markets. We deliberatelytarget smaller markets, believing that establishing leading positions within these markets can yieldpremium returns. As with investing, there are periods in the refining business where there is no hiding from theimpacts of changes in baseline refining margins. Shifting tides lift or lower all boats and ourfinancial results are no exception. We process nearly 70 million barrels annually, so a $1 per barrelchange in global refining margins impacts our profitably by nearly $70 million, or approximately$1.20 per share. A view of normal or midcycle is required. While Wall Street focuses on sentimentfrom one quarter or day to the next, it is in the longer-term complexity of our unique markets thatwe find our edge to create shareholder value. Similar to our achievements in Hawaii, we anticipateopportunities to enhance our Adjusted Gross Margins beyond benchmark indices in Montana overthe coming years. Macroeconomic and de