PARR - Earnings call transcript Q3 2018 | Par Pacific Holdings, Inc.

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Operator

Greetings, and welcome to the Par Pacific Holdings Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Suneel Mandava, Senior Vice President of Finance for Par Pacific Holdings. Thank you, Mr. Mandava.

begin. may You

Suneel Mandava

Good Holdings operator. and to welcome Thank Quarter morning, XXXX Pacific Third Earnings Par you, everyone, Conference Call.

are Chief Joseph Joining Officer; Petroleum. Executive today William and Par President me Chief Officer Will of Monteleone, President Financial Israel, and Officer; and Chief Pate, Executive

estimates our Chief press include in non-GAAP under and are of our President and or our begin, to we are and to of Bill or I expectations, or are figures, Federal regarding actual affecting forward-looking the as on Executive turn XX-K future with investors undue information, place concerning Such forward-looking this, major include, the these the what financial forward-looking or our discussion but uncertainties, factors may to Securities the limited website, for subject the measures Pacific Further Par business. a for that including Officer, differ Pate. found you may as I'll financial events. statement. in now materially to, www.parpacific.com, that well filed plans, our SEC Holdings comments some of from refer to on any laws. our should release over reconciliations and intention XX-Q not may investor certain of most not Before the Forms and more and statements risk They any of latest term these detailed guarantees operating on we of not company. disclaim comparable be the those as our information are call note update GAAP statements revise today our results SEC. is presentation filings supplemental with obligation change and reliance please outlook forward-looking and and is Because defined to statements Any statements, statements. risks to indicated performance subject forward-looking

William Pate

to call Adjusted third morning net $X.XX and participants. our good million, of our solid adjusted $XX.X to per most unit. We're performance pleased was is retail contribution refiners, all number WTI-linked our and well and doing report conference steady quarter. financial like results local logistics EBITDA of Wyoming, an from it was to remarkably during a Suneel, you, share income and from and Thank both accomplishments strong inland strategic our business crudes niche sources attractive due largely Wyoming supplies market. and as

throughput favorable run in achieve and We per operational with growth market in have Wyoming. with and barrels driving second excellent throughout sequential rates, permitted of the combined conditions, us performance in higher profit The quarters. day the XX,XXX year-over-year to season, excess third both

addition, Rockies improving well differentials in Wyoming for crude bode the profitability. in growth continued In

a another quarter of overcome us retail per prices, few increased of sales were impact Our volumes retail due $X management with oil street due prices negatively cost. down unit competitive demand up which outstanding margins contributed the keep same-store openings. prices X.X% to Strong to financial impact prices good quarter. and to struggle and our allowed both and over Overall, barrel as the consumer margins feedstock fuel also crude street to rising increased volumes results. rising destruction Rising

inherent and stream to modest consistent units. continues earnings prior the our in provide in quarters. with contribute refining to Our Retail contribution growth our Both Logistics our steady to business two the a Logistics mitigate earnings volatility businesses

environment. environment. tight to efforts, challenging European the Wyoming to we're our benefit crudes in in refiners, crude profitability Like of significantly Hawaii beginning a a the in physical challenge noted realize is and Asian buying global continues more I face While buying Brent-based

distillate in Hawaii impact for XX,XXX more has on-island per differentials, of to local barrels sales us. the Notwithstanding anticipated The than environment opportunities oil of jet. projects. this and diesel the of see course, on-budget in record crude in the project and Of XXXX. supports day third we to demand the growth with on-time That startup progress negative also hydrotreater diesel trends quarter created continues demand and achieved continue attractive

our progress after operational this of the significant quarter. on growth. This performance, to of announced to made our is the strategic close importantly, their the for initiatives from and number late in financial addition transaction announced shutdown Energy units Island a positioned refinery. business vacuum and Most we we quarter In atmospheric the of future purchase that Services distillation expected IES fourth

be also their that consistent will With acquisition, in to having with they fulfill XXX,XXX IES throughput hydrotreater our and of the require also in naphtha to anticipate to new in an range project a a refined Hawaii announce million products existing XXX,XXX we local contracts pleased barrels unit We're supplying operation. utilities. the build Hawaii per We $XX isomerization supply to Hawaii that capital with day.

the currently unit, us in flex of jet and demand capacity, reduced to likely per investment Once IES due excess With growing that power easily and Hawaii, demand barrels can declines acquisition units upgrade will XX%, into expect X,XXX product capital production refining our and we've changes fuel oil products to to and the well gasoline, in exceed need the We our requirements limits completed reduction day project jet/diesel enterprise in project the needs. in we'll this state's balanced gasoline export we threshold. import demand fuel. and in local meet anticipate on with state in returns for project These capability. any fully this in position the a address generation the exported gasoline compliant for to eliminating of operation occur crude X benzene existing of XXXX. Startup allow Tier will will exceed previously to have our early will It refining more sulfur Wyoming. be also our desulfurization with discussed

a pleased announce stake to XX% also approximate Laramie we're month. redeemed that Finally, last ownership Energy unitholders'

XX% production profitability. increased XX%. this continues of turn no the time, strong in to to interest capital result call over more operations. additional like provide to a which Laramie our details on I'd from As to transaction partners, At remaining to Joseph and demonstrate the our ownership this required from growth

Joseph Israel

you, Thank Bill.

we gears XX, to third executed be start-up our Iniki $X in on-time to began our $X August and first online we on on-budget, planned producing in approximately threatened opportunities hit of with reflected anticipation In fuel sulfur the Lane major catalyst with to Brent $X.X Hurricane margin distillates following on the hurricane hurricane regeneration Shifting Hurricane process, Constructive Asian third in recall, ultra-low the need missed of reformer resulted import Lane, has The oil. August shut the procedures opportunities, conditions. basis, Three missed gross and in of XX. million level hurricane the since with may days million $X.X approximately resulted to for impact down and crack and you later, market our XXXX. estimated at markets oil spread in low especially products In days environment on million high million diesel quarter the X, approximately the refinery relatively Hawaii results. jet followed cost. demand XX and quarter, we a hydrocracker on September instead estimated of inventory back production shutdown. on As and fuel

for demand Asian crude refineries and higher through utilization oil. responded

those challenges pricing On Venezuela Iran, general, the pricing the sanctions grade's missing ability have production and oil Pacific the specifically, and dynamics, on in oil oil supply front, barrels in geopolitical including us, to for of questionable the supported the differentials. replace OPEC

Mid the combined $XX.XX per Index quarter Pacific during third Our in to $X.XX barrel quarter of per was XXXX. the compared barrel third

a We barrels yield. day a sold on-island Hawaii refinery XX,XXX was with high record of per XX% quarter sales. distillate day quarter, XX,XXX barrels Our including throughput day per third barrels XX,XXX per in the the total of in

crude capture gross regeneration. margin barrel. finally, Fuel impacted the associated driven per approximately experienced $X.XX per our oil which approximately and by pricing headwinds reformer mainly adjusted of was reflecting per missed our export barrel, structure, at impacting timing Our market time, opportunities and we this hurricane results backwardated $X.XX $X.XX estimate we per And rate, barrel. with $X.XX barrel a by during negatively

relatively barrel, Our cost reformer was per the production the cost and throughput. $X.XX low reflecting regeneration

the deal, of are following a anticipated mentioned, barrels on planning we day Bill to IES per combined basis. over run As the XXX,XXX closing

planned per a barrels of the December advantage to open sulfur Hawaii, to and build continue we hydrogen XX,XXX late take is the our our in and In throughput closing, range. capacity XX,XXX for low-cost, projects. quarter day Assuming fourth high-return

day a per with a addition million, per XX,XXX completion target. to In flexibility. is Isom unit. in the diesel barrels This per to benzene with which million naphtha more day into exports base we hydrotreater, and will a gasoline our online to day the next This convert quarter sulfur production, to has naphtha allow are system's commencing us barrels needs year, octane to hydrotreater XX,XXX strategic barrels XXXX provide X,XXX us be planned $XX quarter project project third first this help and build balance us $XX

Moving on to Wyoming. our refinery in Newcastle,

conditions execution. market strong of and quarter Another

during quarter, per yield. XX% the the third was In day index In delivering averaged per premium compared to with $XX.XX distillate quarter. sold refinery quarter, to our approximately $XX.XX demand. of barrels In is XX% over X-X-X we quarter, throughput after second the was barrel per the XX% seasonal XX,XXX the produced XXXX. barrels day. in octane, XX,XXX quarter third high Our quarter, third meet of during barrel gasoline per This our the gasoline

hydrotreater approximately the third and a Refinery, barrel compared in XX with and projects. at were we missed quarter flexibility days efficiency adjusted Wyoming at throughput. $XX.XX are of the opportunities the our in turnaround, record also by only quarter per $X gross per $X.X cost level. and margin we our October, Our production margin fourth in barrel In gross high quarter included turnaround executed beyond XXXX. hydrotreater, improving $X.XX and diesel the expecting per in was barrel, million relatively operational catalyst impact the approximately naphtha costs of the XX.X% which reliability of quarter conjunction strong to million driven small In Production planned $XX.XX low, in

has improved is in fourth So Estimated we XX,XXX to per fourth crude differentials, Wyoming the quarter approximately our X-X-X in day. market, continue constraints. $XX see driven crude to barrels WTI local per basis. by approximately XX,XXX far on averaged the barrel In quarter, throughput the logistics

Now to review results Will and financial I'll turn the call to over highlights. Laramie

William Monteleone

to Capital items Joseph. totaled Thank of the our $X you, million. with from provide last million worth $XX I'd the calling take quarterly capital to minimal regarding out. factors and was working million. Hawaii that a have like results some from operations relatively historical quarter financial minutes few quarter, funds context our three including totaled quarters. discuss Cash expenditures operations over It $XX a during quiet impacted

our items impacted this was by quarter. referenced, As capture rate few Joseph a operational

three, throughput factors intermediation burn. cycles our large tandem costs when XXXX, in follows. enough barrel hedge the barrel QX out estimate that that have to areas like and $X.XX business contango, total funding major the $X.XX has capture per with 'XX made versus to rates of One, by in to of and tend the backwardated put In $X.XX versus interest four barrel index. over three, than there to have prices not through is from been impact our barrel tend buckets One, $X.XX sales, and the four per as barrel the costs. per backwardation prices QX we increased manufacturing increasing the last market of increased our These of follow QX have flat barrel an numbers major these costs; market our that through market To broken contango optimizing over downstream increased book per impacted production per offset unit comparing increased 'XX. from are to have from the Each costs and elements economy QX addition, a strong. 'XX increased third our quarter I'd move flat structure $X.XX increasing a on-island $X.XX down Two, to of areas and XXXX structure versus cost two, of intermediation per are impact fuel around third impact impact these $X.XX nine items for posted from some costs and our 'XX sales reflected These jet months improvements team call are more rate. to despite efficiencies. increasing quarter approximately

liquidity total $XXX Moving consolidated quarter. compared the XX%, $XXX XX% at to back and to financing end net million, second of and the position, debt-to-capitalization was million the was

GAAP $XX.X quarter, totaled million. million, DD&A $XX.X interest For totaled and the expense

spending up Wyoming our to ramps $XX million distillate maintenance million between capital to We during fourth on the our planned expect be activities. $XX hydrotreater as continue the the facility and for Hawaii completes expenditures quarter, our year and project

impact projected adjusted of in with Laramie exceeded drilling net and approximately $X.X by expected LTM Laramie's adjusted pricing expenditures further adjusted the fourth program excluding NYMEX quarter million, EBITDAX million. during Moving unrealized million Notably, to increases $XX on million, $X.X and during Laramie, both million production Laramie at stands and basis. derivatives. $XX regional $X income quarter of capital Laramie's generated EBITDAX the of growth on the now based EBITDAX from approximately improvement losses

During completed is with cubic production drilled exit the December and a XX XX equivalent. quarter, streams increasing million Laramie XX to XXX the XXX versus uncompleted improved but commodity September million production quarter. across of the feet equivalent. exit XXX day was a wells, spud Laramie day finishing wells. each range million Price realizations cubic last to feet

The condensate million, gallon; XX% was both and follows: revolver $X.XX liquids $XXX of were approximately natural added times. debt gas. hedges represented Mcf; liquids $XX ending the adjusted Laramie gas gas, per $X.XX quarter natural revenues and barrel. X.X natural per to quarter, revenues. and as the was approximately per During realizations total price of balance during Unhedged liquids, EBITDAX for

For in place liquids natural hedges the gas XXXX, production. gas projected balance for of XX% natural are approximately and of

hedges completed would deleveraging year expenditures Laramie's also the communicated million well two discuss for two and planned $XXX,XXX to X.X for to a conditions, gas $XX natural projected For natural consistent between a production, Based well running on Recently million between plans like Laramie debt-to-adjusted-EBITDAX in the averaging of XXXX calendar Laramie's expected million. and and total I $XXX column XX% plans plans. program, times capital briefly and year are of roughly spacing to liquids $XXX ratio. costs with and current to market rig in approximately $XX approximately million, capital respectively. and southern continue a an while drilled Full per are expenditure previously with support on remain XXXX, completions XX% gas Bcfe-type curve. section acreage are place one

returns flow expect also We shift of The to range to production is cash between annual adjusted $XXX of XX XX% to shifting a relatively the anticipate million. book $XXX heading capital business context in increase ensue the year-over-year. free towards discussions balanced in projected shareholder Laramie's orientation achieved model Laramie's between allocation X% EBITDAX year. into million to over regarding next a and hedge months. is and XXXX for We the the

XX% capacity quarter end, Bill repurchased on Laramie totaling interest, credit hand. using cash mentioned, as available to units approximately Lastly, subsequent and

has As appropriately increased a result, XX%. Par Pacific's ownership interest to

of We be the This for in net back the cash line. Laramie its increasing it turn pleased as Q&A. continue Par Operator, to to prepared to business projected to reflected contributions I'll performance the concludes bottom with free shift and Pacific's flow our remarks. made you generation income

Operator

Thank you.

proceed Holt the [Operator question. from We Please will session. a with question-and-answer Our be Co. & line conducting Instructions] Matthew of now question comes Tudor, Pickering, first with Blair your

Matthew Blair

Hey, good morning everyone.

William Pate

Good morning, Matt.

Matthew Blair

gasoline project a I just want on the through walk the to parts you few moving of announced.

in guess, And first, a also, on on-island interpretation? you naphtha, corresponding more then increase go will confirm like gasoline retail that, correct it the Or your a So those into sales. system? then gasoline could sounds reduction be a on will like island? exported the they sold in merchant that's this will basis be barrels and I

William Pate

me So Matt, address. let

First of and gasoline. terms in correct in export the all, increase you're of reduction naphtha the

in incremental an a addition on also in justifies in we we into to We did XXXX. to the will to gasoline given million Hawaii. need selling which project that be throughput, reduce the for respect estimated sale a we'll the us that, benzene in addition project will enterprise-wide, island. Tier also increase and in sales, state, do project In and to about the at won't market. the that it this balance gasoline into increase were a We'll expect be increase fungible. this to small we is XXXX so with production $XX jet which have that allow requirements deal, time to our With we in the the Wyoming, the avoid of X with that, planning in And

in shutdown than there project, still to state you mentioned for substantial the Island to add And As more from refinery, to the prepared Joseph, that? will increased production the gasoline even a demand we my supply. with in be I be expect IES of want of this comments, the period time. importing anything the with

Joseph Israel

in refinery project the sulfur Yeah, in using project, the are will able let which and me we or hydrogen just DHT our low. keep to that allow Coast to choose. here add, octane the system, we and us we cost our capacity is fundamentals the premium flexibility gasoline remember this second, go why relatively need similar to West are to when with the we PNW And excess

this XX%-plus we have reason return of project. a a is together to All put

William Monteleone

on Matthew, add that do this imports, the really under I'd thing lower the risk and much that its position. of exports with is, has a that and that not with as crack to spreads in Will. I The basis to changes, premise to only of understand avoiding has basic freight, underwrite as risk which to shifting trying think associated is volatile it's the

Matthew Blair

Sounds $X closer differentials Wyoming year, Rockies. mentioned our that you a in the $X to like at improving least a sweet trading Bill, then, discount numbers, of WTI to approximately crude good was it looks start $X the at The currently. and is or And barrel. on

forward? going lag? you you works polygraph do or So cracks my that expansions full product And has these an any discounts reduce secondly, will pipeline to believe some then sort of or benefit either Wyoming. Do the in first timing anticipate the that, do realize for Wyoming my expect anticipate question is, I maybe that offset you barrels, unusual in on

William Pate

diffs we from, increase have to out point all to that in the in to really, associated answer in the would the anticipate the actually River of the diffs market. good access we your - benefiting the Basin. widening the of I of So Powder addition Bakken, in first question, do part

markets the in tandem as the in as well a into Bakken the Wyoming Canadian sweet. as Differentials widening function with it that of region. is lot a And are pressure much so in tandem moving the of work these bringing the out crudes

basins is fortunate area. of unable in access you a to broader regional So main I issue, and have crudes to in centers, lot the that a position two we're this access, of inland the be are a better related the to where refining think, to

but may have Tallgrass Needless the to on take if could widening to be going to in crudes. be as access off Dakota. strongly their takeaway, going diffs, that some out you everybody these So Wyoming with sweet, of because and maximize impact run flexibility pipeline just North reliability the barrels think expand impact may we and some have as they have to they're these the the us, crudes, operational to coming there all area I always to on have possible anticipate inexpensive cracks is like to inland with say, trying

Matthew Blair

Thank very you much.

William Pate

Thank you.

Operator

Securities. from Our Mike line question. your Seaport with next question comes proceed Harrison Please Global the of with

Mike Harrison

Hi, good morning.

William Pate

morning, Mike. Good

Mike Harrison

cost strong level. to barrel in just toward Just be looking of quarter? the Is that the getting that there was really was utilization - and sort you best $X production had given rate of Wyoming the down that at expected the the in kind could a or sustainable

Joseph Israel

reliability high in the Wyoming. mentioned We

slightly in probably cost production But stars we range. throughput numbers higher the happens see cost $X.XX this production reliability with be on all and So average, the percentage, future. to we'll align, in high expect, so when really the similar high

Mike Harrison

kind you Is EBITDA and strength in then And of in there, just is the that really retail business what was the Alright sustainable? factors? that or that. other step-up of and it drove it terms contribution wondering the acquisition, the had

William Pate

that we confident. Well, continue remain certainly, the and acquisition be with and pleased to acquisition helped,

for recall, business. flow out projected annualize And half of we to the be you in indication year, If that an cash if we you the expect range. the that last put we of

as assets Hawaii seeing Spokane are So well. But performance our from we're the also good business doing well.

think I is sustainable. it overall, So

of well combination as acquisitions the a it's think in margins as I strong Hawaii.

Mike Harrison

this Laramie. little talked you in the change And a strategic also that then increased bit had you're running the ownership. kind quarter going way Alright you about your guys the of and redemption unitholder on

maybe to you portfolio longer-term ownership? - the Is long-term? in long us just update increasing So Do plan. on something the your want continue it that

William Pate

as less along all. it's at strategy value to redemption going to at an because value our continue addition strategic we achieve other about the Mike, times opportunity that could time, saw to the than mentioned, And flow, valuation EBITDA right in will complete hasn't the cash we an to business enterprise the Nonetheless, we're stake do in we're activity. to that that Well, change nicely. to changed we with with with And at think start view in Will shareholder And options in we the we this continues that able to like out presented our grow we're our terms a partners, three was buy redemption. But other to of I free anticipate returns interest monetize Laramie. when think as somebody investment. to that

Mike Harrison

of projects acquisition Alright you then a you've question the IES number today. and projects got is I the DHT, now, the had on last and going just announced the

As and XXXX we see earnings projects cash frame, rank flow of you these earnings all potential? maybe the in terms contribution us three can maybe the of those time the and out help think up running about in projects and get or

William Pate

Sure. projects, to we putting capital refining threshold of exceed to these the I they sector. mean, with as each in that the we've assigned work mentioned

are them of over XX%. All

return. the old there's product If the going or some probably move work we're We've additional associated acquiring XX% back location. that to ability $XXX existing million work, Chevron refinery with noted to the so between an and capital forth projects $XX to they're related million units our to to at and going integration you're close weigh a put the in then three to together, we're and

million XX% with of a total, returns. projected as investment a So in it you can $XXX think

where and, puts to low of on I X of from really, us a in complex So Hawaii the premier our the position excess range the XXXX probably the the fuels a supplier million. those is, lift entire $XX state. cost in that cash free is think refining basis, in investments And flow

Mike Harrison

much. good, Sounds thanks very

William Pate

Thank you.

Operator

the proceed Our Cowen and next Gabelman your with with line comes Jason of question. question from Company. Please

Jason Gabelman

morning. good guys Hey,

William Pate

morning. Good

Jason Gabelman

appreciate the the on and ask just it. could a color Isom I project. on If follow-up unit naphtha I

the call? to does And this not different to guess, invest Firstly, a it that EBITDA project? provide, include to Wyoming provide that you XX% contribution ask I project having you alluded way, Hawaii slightly the IRR possible on to an from in is

William Pate

You handle want to it, Joseph?

Joseph Israel

million This over we once Tier year include project, a or after result. with Yeah. credits contribution to won't $XX savings million includes return, by approximately EBITDA that XX% $XX quarter buy expecting will first of per the are it's return X up and running And need as the 'XX. to we

William Pate

Jason, be to uplift margin that, clear, uplift credits with and and top of with into what EBITDA $XX associated terms $XX or is gross acquire taking calculating way in account required been the that cost of million X to the yeah, associated the Tier would've and we're avoided benzene the million to we credits, capital. And we're on is of

William Monteleone

doesn't an it clear, to back the cost we've million, part calling be to Jason, return. like include add $XX of of And been that our avoided

Joseph Israel

Yeah.

Jason Gabelman

that that Sorry, Is was last what million part? $XX yes?

William Monteleone

a include associated of capital not million. cost with does It return $XX avoided

Jason Gabelman

a hand. cash Laramie debt then, I would if that guess, could on the interest question it redemption, you on with Laramie I Got ask mentioned and redeem

stand debt net Laramie does So where the following redemption? the at

William Pate

handle want Will? You to that,

William Monteleone

the we to I by I again, fourth at indicated, as think the then, experienced take I the third that Sure. at million $XX at what expecting quarter the plus was quantity CapEx $XX at quarter-end And in I redeemed exceed can just quarter. than pro the debt I million. balance you Laramie forma think margin larger $XXX really, million, we're EBITDAX had mean, roughly so, in

Jason Gabelman

one have than last year going you guidance amount preliminary the the Alright, a pursuing. great. It given at or all an XXXX just that any do higher, just it's of this you're like be least sounds If projects CapEx? on higher could ask I question, to bit

William Monteleone

come call guidance Sure. in Yes, the Jason, provide probably on 'XX. I fourth and think, we'll back quarter

of the see of projects to got we out. 'XX want some think of timing we've the way underway I that shake the

the As that lot year, in, which I $XX a indicated, think, and steep pretty still full range, CapEx provide project and of we curve spending comes is the to has $XX see to that in guidance. million I we'll a for work, want got so how we're increase refreshed for XXXX the million

Jason Gabelman

Alright, a great. Thanks lot.

Operator

question proceed your question. of next Our with Brown Associates. with Nick the line Zazove comes from Please

Nick Brown

that's there Hi, that Logistics described and considerably and question at drove I of least, small looked know percentage just just what curious for on a prospects down But relatively it a like, and was you stable segment this basis business. one the on quarter, there. for as contributor. are EBITDA sort you, it whether rebound

William Pate

Yeah, I think in change there was OpEx in unit. Wyoming a slight

has activity compare negligible revert something margin again, had a on year-over-year, the that I to you basis. during If I import then it think expect don't that was quarter to. I we contribution jet is And think that think there we also some increased

on run I think for the basis again, historical to applicable an is So about the think this still rate business. annual way

Nick Brown

Thank you.

Operator

Tudor, [Operator Instructions] Pickering, of the line Please Our is & follow-up from your Co. with proceed a question with question next Matthew Blair question. Holt

Matthew Blair

fuel I down were QX. think in volumes Hey, mentioned same-store that you X.X% Bill,

As QX, that share far in coming how is metric could down crude's this you progressing quarter? so

William Pate

there you that at going margins be have street And probably with information at don't may the with I would this still probably our But some help bit. price the I that quarter. little And to time. fourth Mike, is associated that to think destruction crude, related demand I in volume declines consumer level. tell in more even the the it's a

then about So stores the Island had and a airport, X%. for to competitive a opened Kona the an we first of There now. side part near quarters stores. impact reason and seeing had close of that - and big significant we impact, mentioned, on We've two six that that had that store months on pretty been a had lapping, the that opened probably were the why I Oahu was that are our Big and ago hits we new few of on a couple were as in we QX the that couple down of

Matthew Blair

at levels? comfortable XXXX? current Okay. you pencil And you And are debt with in XX%, then net could about how with should reduction in debt we talk debt-to-cap any

William Pate

Go ahead.

William Monteleone

Yeah.

objectives we've be Matthew, think, kind our the of XX% stated to to I are for target that XX% in range. the

basis. consideration the comfortable our is I position we half And debt, with on I when think taking also so, business look at coming from total you mean, liquidity today, EBITDA again, feel of retail contribution an LTM I where and we think our into sit net plus our logistics almost

for again, slightly I than But feel us sit we lower where So a think probably is we net that target comfortable positioning. debt-to-cap today. with

Matthew Blair

one Okay. what fall front? about you differential into the pricing, for Joseph. here. guess, still on even I that to extremely you've I ANS the just premium ANS driving talk relative Brent? And What's that, like probably seems then seen final think, It one, expensive Could

Joseph Israel

imports So will with volume refineries. follow the in West is alternative going to priced ANS at Coast parity West the Coast and

quarters we growth. relevant so So everything we for price X% And on with ANS ANS and diffs crude was was second The regarding and the production the everything that the well. to have discussed the economy third world, the the seasonal then high. around impact. And industrial bullish as numbers price strong hitting allowed

the where typically the ANS, market. producers go is for The third Alaska quarter maintenance, in low-supply, cargoes to and quarter less in high-demand

continue So flexibility from ANS we it's correctly. We'll when to crude a priced expect and to take continue ANS sourcing trend. standpoint that our follow maintain to

Matthew Blair

thank Sounds good, you.

Operator

at time. this comments. to closing further the I'd to questions like management call the for There in are hand queue back no

William Pate

capital working organization's will numerous forward for morning. joining our enhance and expansion strong future contributions Thank recently of I'm and growth. look to for well operational pleased strategic our on. refined improvement, position light market. low-cost Thank the internal combined day. from us announced performance, you, provider good projects products as operator. this our especially that the the That Have in with with in that opportunities we're which completing a of Wyoming in We you bodes retail, Hawaii, the profit

Operator

you teleconference. and conclude Thank Ladies this your does for gentlemen, today's participation.

at have lines You day. may wonderful and time, disconnect your this a

Par Pacific (PARR) 11 Nov 182018 Q3 Earnings call transcript