Q2 2026 Par Pacific Holdings Inc Earnings Call Transcript
Key Points
- Par Pacific Holdings Inc (PARR) reported strong Q2 2026 results with adjusted EBITDA of $571 million and adjusted net income of $499 million, driven by excellent operational and commercial execution.
- The company achieved a system-wide refining capture rate of 125% (112% normalized), with record throughput at the Tacoma refinery (41,200 bpd, 98.1% utilization) and record monthly throughput and OpEx per barrel at Montana in May and June.
- The Hawaii Renewables business made progress, ramping renewable diesel production to ~3,000 bpd in June and completing first commercial sales, establishing a pathway from production to sales.
- The balance sheet was significantly strengthened with a $500 million senior secured notes offering, reducing gross term debt by over $130 million and total net debt by over $220 million, ending with ~$1.4 billion in liquidity.
- The company benefits from a substantial NOL balance (~$700 million at year-end), which is expected to be largely utilized in 2026, providing tax advantages, and has a potential $300 million benefit from small refinery exemptions for 2025.
- The Hawaii turnaround was executed safely and on schedule, with major operations restarted, and the company expects no significant planned downtime for the balance of the year.
- Par Pacific Holdings Inc (PARR) faces a challenging Q3 2026 in Hawaii due to the refinery turnaround, with lower throughput (55,000-65,000 bpd) and capture expected below typical guidance due to higher-cost imported inventory.
- The company experienced a significant working capital outflow of $312 million in Q2, driven by building refined product inventories ahead of the Hawaii turnaround and higher commodity prices, which may pressure cash flow.
- Hawaii crude differentials are expected to be elevated in Q3 ($11.50-$13.50 per barrel) due to higher freight costs and deeper backwardation, impacting margins.
- Same-store fuel volumes declined by 0.8% in Q2, and fuel margins were pressured in a higher price environment, indicating softness in the retail segment.
- The company moderated share repurchases in Q2 to focus on debt reduction, which may be seen as a less shareholder-friendly capital allocation in the short term.
- The renewable diesel ramp is still in early stages with small sales volumes, and the company expects a gradual contribution in Q3, indicating limited near-term earnings impact.
Good day and welcome to the Par Pacific second-quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Jeff Hollis, Senior Vice President, General Counsel, and Secretary. Please go ahead.
Thank you, operator. Welcome to Par Pacific's earnings conference call. Joining me today are Will Monteleone, President and CEO; Richard Creamer, EVP of Refining and Logistics; and Shawn Flores, CFO.
Before we begin, note that our comments today may include forward-looking statements. Any forward-looking statements are subject to change and are not guarantees of future performance or events. They are subject to risks and uncertainties, and actual results may differ materially from these forward-looking statements.
Accordingly, investors should not place undue reliance on forward-looking statements, and we disclaim any obligation to update or revise them. I refer
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