PARR - Earnings call transcript Q1 2020 | Par Pacific Holdings, Inc.

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Operator

Greetings and welcome to the Par Pacific Holdings First Quarter Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host Ashimi Patel, Manager Investor Relations for Par Pacific Holdings. Thank you. Ms. begin may you Patel,

Ashimi Patel

Welcome Pacific's Operator. conference quarter call. to you, first Par earnings Thank

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

materially comments performance that Any are are these and to or from change events. begin, to include not are uncertainties statements may results risks our They we forward-looking today and may statements. Before guarantees subject and note statements. forward-looking of differ actual forward-looking future subject

Accordingly, not additional we filings you our our should information. them. update place investors on forward-looking undue to and refer statements disclaim or with reliance the and to I to presentation and on our SEC investor any for obligation website reconciliation revise non-GAAP

turn and over Pate. now the Bill Officer, President Executive our to Chief call I'll

William Pate

morning, your challenging, participants. call by, Thank times. the ever one is in welcome you, most I'd wishing supply of the midst this well-being faced of energy environments, Ashimi. sector these families, you and and best begin changes like Good our to to health dramatic in call demand. the all conference with macro and The and to trying of

responded and through to to continued organization as Our government conditions has this disruption, market measures. we've function, seamlessly swiftly

lockdown. Our impact declined crack rapidly, Hawaii to of results refining first rolling Singapore quarter the refined product during Chinese particularly illustrate demand initial the the with respect after sector. disruption on February

a oil between differentials in And market change chain immediately long not the While supply run. creates loosened oil realized until crude market Pacific crude cracks got physical Basin lag the differential. and to refiners dropped did begin decline when the supply

market cracks when of cuts. intense an on tight differentials. experienced to during March OPEC+ we result further even The period production and agree weak collapsed strong failed a As crude

began, war flipped steep to contango. share from market structure market backwardation the the After

largely improve in the related the quarter. These which of latter chain are crude our dramatically, trends second refining Hawaii will waterborne profitability. Our of part supply cost to changed our crude beginning,

during locations States Our impacted enacted mid-March. after regulations were mainland United principally were social distancing,

to the linked perspective we to distancing demand other our As of and social relaxation limited and is of rest protective year, directly the measures. product look on quite

While timing our is disruption industry temporary. the of for much demand is the uncertain,

posture see flexibility gradual increase our and optionality. any demand expect before Broadly, Consequently, gasoline in we demand prioritizes jet business a to in changes occur. fuel

up, leaders expect our held market well stages our run fortunate solely niche to to through We're local be intend meet refineries early be this by We pandemic of demand which declining in industrial market. we diesel the market weakened to demand. production. has to And

that, confident logistics operations We're our market. local low-cost refining will our to and the be suppliers

demand address as needs. we However, changing must market evolves,

jet dropped day Decline example per For this and most commercial immediately barrels market of were XXX,XXX the arrivals from Hawaii after to in orders stay-at-home created implemented. departures disruption. demand barrels And quarantine. demand XX,XXX

Our to by product of down Pacific one Par our team facility. crude original activities took refining the refined actions to early reducing and shutting limiting reduce import Hawaii units production,

operated costs stand-alone high plant with basis, previously a we low know operational operating you As and that reliability. on

until fashion this commercial significant resumption in operate a will in traffic We occurs. jet

favorable perform and reasonable well, inland from demand. continues to Washington local benefiting crude prices

reported the environment to quarter this price hampered Wyoming performance Although, profitability FIFO crude again operational falling significant excellent due losses. during

in increase oil eventual expect Wyoming. and a we stabilization the profitable from With contribution WTI crude prices,

drive could and summer drive the be public as believe, to also and vacation season Rockies fall -- driving outdoors. chooses We the in strong the

of which mitigated bolster Our were some especially the segments the Logistics Retail to overall quarter. fuel to continue first demand and due in decrease restrictions. strong, results, social during margins distancing Retail

with simultaneously management. actions alignment attack of safety the focus activities efforts are February. cost globally. sheet And to business spread declining and during these COVID-XX taking the that Our intensified we The when team began responded reduction production continuity, pandemic demand began areas the we balance to impact rapidly key has multiple late market pandemic. We including anticipated

these As our outlays efforts reduced a result million. we planned by have of cash approximately in $XXX XXXX

cost reducing second the quarter. the the members reduced outlays, reduction XX% to Board effective increase And continue May expect structure. of independent will salaries in current cash our focus further We and cash of I In to the the on in light by our environment, have Xth.

of managing our locations to positioned supplying are our at when local to health our demand all and committed well communities remain and stakeholders recovers. COVID-XX. to we're following and remain response all state up federal guidelines paramount throughput well-being We in local our ramp employee’s The and markets and

this turn over the I'd At call like Joseph. to, time, to

Joseph Israel

Bill. Wyoming, you, past barrel per the Starting reduction the barrel, during in seasonal trends. $XX.XX of approximately March prices per was crude significant impact. quarter first with The of with for Thank our $XX in index X-point month resulted X-X-X unfavorable consistent

$X.XX As negative was a realized result, our barrel. gross per margin adjusted

per demand far diesel the strong of demand Our operations Mountains load production much Rocky fuel our April. refinery started with costs and lower with four from up supporting total barrel. of throughput rate $X.XX yield. a has to averaged through typical XX% COVID-XX maximum operational impact Diesel XX% approximately of per under XX,XXX for reducing approximately production to the month remained XX% impact, thus availability were barrels XX.X% around jet mid-March COVID-XX and utilization PADD day, refining gasoline

at X-X-X-X range. the our day quarter per is the XX,XXX $XX.XX our ANS base. Washington, was XX,XXX on To Index barrel balance In per barrels Pacific to target demand, second throughput for Northwest

availability. barrels per operational reflecting throughput day, approximately XXX% averaged refinery Our a strong XX,XXX

approximately a demand. Adjusted was utilization down barrel per per of gross April result on $X.XX margin costs to X production are as refining $X.XX COVID-XX quarter first PADD in were impact in and XX% the rates barrel.

low relatively the Coast from in has gasoline configuration protected us decline our West yield demand. far effectively So

barge train sourcing. unit flexibility and valuable our us oil with crude addition, continue to In operations provide in

and LSFO throughput To use are barrels As VGO XX,XXX activities. with range. our diesel maximizing jet a result, our day second and production and is system at minimizing production XX,XXX demand, target the quarter per our balance in to we gasoline blending

base. in the $X.XX Brent State refining approximately barrels XX.X% on was Hawaii demand averaged as $X.XX day Operational production XX,XXX Singapore impact products oil a X-X-X lower Refinery strong, barrel Waterborne operations. of crude the costs per of per in and Hawaii. result for to availability pricing continues barrel. our was our per were quarter throughput Hawaii, In Index

quarter margin Our was in realized gross Hawaii -- first only adjusted $X.XX?

William Pate

Yes. That's right.

Joseph Israel

…was only $X.XX.

William Pate

$X.XX.

Joseph Israel

per barrel. $X.XX

Our low capture crude realized resulting in was a barrel Brent differentials $X.XX for base. driven the by premium elevated little per on

at Second between and per to we oil have quarter the January reflecting barrel, committed $X improved condition differentials purchased time the market oil mostly crude in March. the and approximately

are quarter by favorable macro per the crude to With and Bill, that crude line about bottom more $XX likely our be first oil differentials outlined quarter changes than is barrel the our recent third differential.

April side, has in by with and demand product COVID-XX the the gasoline jet cut by demand Hawaii through fuel approximately approximately XX% XX% cut XX%. demand On XX% month disruption to of been

our with result, demand. operations we adjusted to a have balance yield As

is our in planned side quarter the Hawaii barrels on the accordingly staffing current day in throughput XX,XXX XX,XXX the per shut operation. crude and We west Second range. to to adjusted our down unit

to We minimizing are aggressively XX% of our XX% typical jet down XX% production yield. total from to

freight to entire jet sell customers. level, the and military mainly we this our production, At

utility possible increased We close to generation. oil the including fuels fuel as yield in for have yields Hawaii reduced also current power as and demand profile gasoline match

this on remain about as recovery and and optimistic phase. system summary, are pandemic future control the crisis competitive we an our We as focused we we and excited can system. In what demand through efficient navigate our

now over to our results. Will the review will turn And I call financial to

Will Monteleone

Joseph. you, Thank

First $X.XX quarter adjusted EBITDA per share. a million and totaled million $XX and fully $XX diluted or adjusted earnings loss of

Wyoming $X losses are million realized there related items first, income; two Hawaii quarter one, approximate the recognized adjusted items approximately refining accounting accounting of that and approximate in and on million earnings FIFO Focusing to an impacted that derivative results $XX an EBITDA, fourth the loss; out refining include was during adjusted million called $X gain GAAP net two, both XXXX.

we solely that lower items $XXX a on of offsetting liability reduction Related GAAP non-cash three approximately impacted we of million. our recorded offtake charge One, supply were gain LCM there the an of addition, to million. net charge $XXX the and cost-to-market recorded income. In

approximately million of reflect are Two, goodwill estimates to we of $XX fair current a recording values. impairment

three, we our impairment recorded $XX Laramie investment an of million. approximately And to in

by contribution XXXX. of down the X.X%, store million, were during were Retail roughly up results. adjusted quarter driven primarily margins segment volumes fuel to approximately time fuel sales sales merchandise Same Shifting first EBITDA while frame. increased March the was X.X% $XX to compared

demand are gasoline to year-over-year a XX% be expect down in relaxed Northwestern, to Idaho. We restrictions and XX% on distancing approximately until Washington social Hawaii, basis

have distancing access. measures Diesel and merchandise been make much when cumbersome times been more demand locations more our stores social larger to customers sales at format, stronger as our retail turn to but is down, has resilient

levels trough views of are late and volumes from prompt suggest early Our May referenced above. April rebounding

principally did across have adjusted segment saw reductions than with to $XX minimal late during Logistics Hawaii quarter. Washington quarter's other was not material throughput EBITDA We the the impacts certain across contribution and increased locations, results. on which impact throughput million March a The

We respective expect with Logistics segment at locations. to annualized our move refining throughput rates proportionately results

The crack impact Refining the of with lagged $XX Hawaii paired reflect segment adjusted spreads. crude recorded loss segment results of million. EBITDA compressed differentials,

reflect market crude tight and QX Pacific a backwardation market. reminder, a As Basin drove where QX Hawaii crude XXXX differentials conditions, freight elevated

attractive strong to crude results on Partially contribution, Washington as Lake FIFO impacts. Bakken at inland and a crude display excluding a traded modest Cold the Hawaii's seasonally performance was was offsetting and discounts advantage Wyoming Washington's ANS. crudes delivered

XXXX. Net through and million $X extended credit to of adjusted term current interest, reduced Laramie's net its $XX of QX of to our debt times EBITDAX the adjusted our million. to XXXX EBITDA. generated and by leverage for income X.X earnings million Laramie Laramie has $X results facility

and liquidity Moving front. to structure capital the

by collateral million, each XXXX, credit from million principally in totaled liquidity approximate million the decline in of $XX $XX The $XX value $XXX or up year decline Our ABL over reduction Of driven collateral cash the the liquidity million $XXX reductions versus value. end was headline underlying the the in in for million quarter ending intermediation availability. facility. and was made of the in

our a per operations We the words, and impacted generated purchases in $XX in also cash compared requirement. million. in decline Brent WTI in $XX day, operating nearly and has from refineries, reduces $XX context WTI other million oil world. liquidity this viewed day cash daily approximately the daily reduction operation million However, per should our $XX required Brent crude commodity which our while be to our $X $XX is of $XX of and in availability it In prices a world through current

funds, $XX Working payment $XX intermediation pay the within facilities outlays and deferred capital was and a turnaround cash down non-cash expenditures our $XX totaled approximately of sections cash flow financing principally interests equaled by Capital used was approximately million. of the revaluations to from million. impacts million excluding the source and statement

to in to in in actions $XX cost in $XX to to and million far, operating our annualized total turnaround outlays, to expenses, interest outlays environment. and of expenditures expenses million to number million a response of we to reduce turnaround $XX reductions taking million to million are expenditures Thus approximately reductions $XX to million have consisting reductions in million $XX million identified $XX and outlays, reductions capital capital current total versus operating in planned goods reductions We $XXX $XX XXXX our sold, expense. $X of million and in the

goods and driver to $XX of internal million million off-take reduction of of in through $XX goods sold flow to of which reductions reduced sold cost is burn $XX our largest projected followed to million. fuel our the The by within supply our of $XX $XX million $XX million refineries, million fees in between cost

across operations Hawaii expenditures and OpEx segments. combination deferrals all of reductions are refining non-critical a reduced of

capital and maintenance outlay Our growth. were reductions expenditure XX% XX% and approximately reductions turnaround

the capital scheduled turnaround this of now and for actions $XX year for million this the to These the full demonstrate outlay environment. of our the year. with is second outlook expenditure commitment $XXX navigating to Our half majority revised million

This for concludes I'll our to prepared back turn it remarks. Q&A. Operator, you

Operator

Thank you.

Sachs. now Mehta question-and-answer We comes Instructions] the question [Operator Neil Goldman Our Please go from will first ahead. begin session. with

Carly Davenport

Good Carly This Thanks very much on for the is morning. Hi. for questions. taking Neil.

A –William Pate

morning. Good

Carly Davenport

some color the items kind $XXX reduction. key was The outlays. that of reduction in line walking of first one million through Thanks just on the driving the around for the cash

any viewed current response if as -- to Just should structural that your versus the curious on in on just cyclical be of thoughts environment.

Will Monteleone

to I the mean we're million reductions, I Sure. the of to cost referencing of are oil. correlated of $XX think sold price goods $XX million,

repeatable. the depending your view structural that's on of oil, think So of I price

environment a So think those -- flow and price in through. low again benefits we

of a Hawaii. Again, the activity are reflection reductions in OpEx reduced

I again, the a we there, extent, to increase think And years. see to levels expenses activity you'd So future return. number deferred we've that of

Carly Davenport

it perspective Can relates a Great. to particularly demand is around what And the in Thanks. little then, market? from real-time jet bit a follow-up just been you're seeing address you market, product crude Hawaii. in around order that as about touch changes in that fuel? upon And then, you've could flexed you have seen how the that and to also operations yields slate talk

William Pate

Carly. This Sure, Bill. is

jet changes a cargo. market speaking, period. the has Let the in high and barrels fuel the demand commercial, as XX-hour -- commercial in me yield slate. the Generally past And I'll dropped demand and or jet the the announced the yield the XX,XXX including on the -- within quarantine, product our been address season. That's peak all the and military our you that crude in demand as day a Governor handle let crude when literally traffic as know, Joseph and discussion on the

dropped virtually really to When and dropped, at this military cargo only the jet point. commercial down activity we've

to XX,XXX on seasonality a that's cargo are really again and is cargo XX,XXX we day barrels traffic, factors are related to has but related, principally And down the some jet level. the traffic day gone low. XX,XXX even commercial XX,XXX to so load because that jet So seeing depending commercial think the military I to a barrels the somewhat

On the to Mainland. similar the different story. Very very gasoline side,

up. we about the today. the gasoline related of probably XX% would XX% trend i.e. about is to in shelter place. the XX% We're probably I decline market. of at think, we're seeing demand I tourism from peak of closer demand only XX% We're probably, kind bottom probably gasoline at say really to up bottomed a

demand of factor. local is XX% mind, demand in keep gasoline So the a

where Mainland. little but a bit, been It's XX% just the demand we're alongside way its range. like down has Diesel back it's gasoline caught the probably relatively again, demand in with strong

Given trade. and want Island Joseph, to in Big commercial handle in have crude opposed you the as where a population you do impact tend and slate? demand from the tourism more larger Oahu two-thirds lower of do activity to much where military variability you you see tourism islands the neighbor you've where lives much than Maui, activity Kauai got the to

Joseph Israel

Okay. Yes.

So demand we the point a had that make. feasible our to actually stop to at we and production yields match stay to sell everything we where

and production unit. by mac number by throughput jet four, dropping So cut make the down one, diesel Par our blending will three, to manage treater. XX% less our reduced are the the rates fuel by the to two, we diesel flexibility. cut gasoline. diesel And running our number chip hydrocracker oil shutting Number we XX% we increase almost hydro system crude Number reformer we at in fuel by really

Carly Davenport

Thank you.

Joseph Israel

Thank you.

Operator

Please Our next question ahead. is from Matthew Blair with Tudor, Pickering, go Holt.

Joseph Israel

Good morning, Matthew.

Matthew Blair

hoping Good all morning, was to everybody. you Hope your safe. at your could talk everybody contango is about refineries. of exposure I three

refineries a showing For your discount. market like WTI the looks is about CMA $X.XX mainland structure

that? about that benefits to guess, Washington? you capture have in So confirm through that can of and for would XXX% to how expect maybe you can And modeling to I walk then Brent just Wyoming contango you and Hawaii, I in you think us guess, the do exposure of

Will Monteleone

Yes. Sure.

that's contango intermediation I which the barrels. exposure the the we that Again, in with I our Again, benefit similar dynamic And of have intermediation functions. way and given WTI our a Aron that evident we Washington in functions Matthew J. in our the way there. Hawaii. is the with intermediation way in think the to way to respect most the place think, functions, with do in of So, capture do again, hedge we

dollar-for-dollar do majority one is barrels. tools front Again the our to as of for capture the tankage a fair there the of available we is using That intermediation spread and of with further curve manage and manage again assets the I curve say, be benefit And to said, us. the out as to of have amount our the probably those front exposure And would we're our Hawaii of can there to tend the exposure production. optimize another one in the contango that. curve we not as of to we that's the down

Joseph Israel

barrel In to going quarter in Hawaii. really a add. in me just quarter plus quarter competitive our help you to this and Let in That plus is differential minus to in from between $XX mentioned, already three the third going second per position four third contango basically quarter. improvement built will quarter first we at seven the the Hawaii, mentioned this

Matthew Blair

indeed. Indeed,

color. just quarter Thanks were second Okay. for strong the to turning in Logistics Great. for row. I results guess, so a

Just wanted to $XX baseline kind this It number confirm. of is million kind the low forward. sounds like going EBITDA of

correct? QX. lower in that number at this runs be would by Is refineries impacted However, your

Will Monteleone

Matthew. Yes,

And think to Joseph's I that's see can on the way just again profitability. from the smaller a it. again, think Hawaii. be I side. And you response reductions, it where contributor much the have overall plug throughput the to a perspective, think, does are clearly, some then you impact's reductions to look numbers right I EBITDA Logistics Washington Wyoming proportional And see, largest there smaller. but And at Logistics our it's that's the in projected again you'll if much through

less through So, that front. on Logistics impact

generally increased And really Washington capture to that, particular systems balance mention and not Hawaii then by that's throughput. Washington we're in between that our would throughput and this using Logistics was and the also the and Refining product And freight able then in increase driven I to between move the quarter we're synergies as Hawaii. Hawaii throughput

think we'd Hawaii quarter. in expect that there reductions during due will lower So to be second I again, the continue but to throughput some

Matthew Blair

Very Thanks everybody. Clear.

Joseph Israel

you. Thank

Operator

is go ahead. next with Brad RBC from Please Our Markets. Heffern question Capital

Brad Heffern

morning. Hi, everyone. Good

margin side things. Another of question on on just Hawaii the

unchanged. was, obviously, indicator for two April I So the think minus

to $X Brent. You're talking about a differential

at of this happening. seems actually like really the the starting point you're assume on behind margin isn't it at indicator front. time, same what's But indicative quarter necessarily the well the So that I

in really, quarter? think versus you about should talk the indicators of, these penal about second we capture sort So can how

Will Monteleone

it's Will. Brad, Yes

April, in between that spread keep mind one thing $XX has I and fuel let's jet barrel diesel or the fuel. over Singapore. that's in a X-X-X today jet to the one-third think in of say, today of And is course -- negative been the

impacting And again Index. X-X-X that so is the

the to indicator. minimizing our and Joseph environment, between you a implied maximize this reference would the the XX% moving XX% operating typical refinery in yields slate production versus to yields. are As in be we're market heard and jet we XX% jet In environment

the a So adder you fixed a them. I -- I And then consider think is the have bound our zero one for to significant that's typically other approach thing indicator, there. that's contracts to you dynamic think as are X-X-X

And so sales indicator you again, very trying a mind got off in that a need start capture when all to product we've contracts. keep low of model refined our X-X-X to of on fixed almost adder you

So of we're in side there's the $X at second provide to the April, large for while of crude month mind. the what dip that closer And the are numbers keep color June quarter, say third to June. a and then between And I'd Joseph's the month is spread indicating in other the on a the let's quarter. expect

think, so system. way is works kind time April through really residual where our on frame, its I the And lag the crude fully of again

William Pate

declines, the Bill. it's and one X-X-X probably – jet in There's and is – the West demand consideration Brad, capture think as And fuel our take jet when the that a actually other lot about is markers. off priced of factor remaining you Coast to into the

in is Singapore particular cracks our so exposure And low. very to jet

with comes is back marker. see long I place West exposure expect can that's jet But the at more low Coast to if to be the quarantine's – traffic weighting you likely these our levels commercial consistent as oriented. more Singapore-oriented as in as think Now a

Joseph Israel

spoke and capture. the about Bill Will

couple about add just of market. me sentences Let a the

maintaining not of clear feasible. that to Mid in it's barrel is the very the survive. long-term Pacific refiners flow a $X think negative the is feasible per cash And at definition I quarter-to-date

question Five years average this barrel only about per barrel per recover. is $XX is timing. there fast for been has index to $XX And how so the

side the less to We markets headed are On back the routine. are that gasoline concerned. think we

gasoline. will there think impact also elasticity will We a help be demand that

Longer slower more production know as prices going probably the lowest economy some We jet COVID-XX going drive and it's of will looking is Consumers the industrial appreciate term to with to type term lower. be watch from has and promising the impact recovery this it but we're diesel. is impact. all we fuel long

for So this is market the now.

things will to it We for point. and rebalance we'll at feasible watch wait a

Brad Heffern

guess given, see refineries. the that there appreciate switching detailed fact I inland the the all shut-ins a slates just right now? Thanks. to so is that either Great. Mainland refineries or And Okay. the we any trading answers. WCS either or at chance then crude Is move I tight around the facility

Will Monteleone

Brad. Will. It's Yes

we waterborne our for keep have do flexibility think Washington, mind there access. some I in given

buy we we're And then So do keep pipe levers to Wyoming, have mind and we to also in respect pull. connected barrels. with fuel

it as and try possible. us some So gives effectively it flexibility to manage as

inland no that to the responding and we in is seeing There doubt low that. are States prices producer United is the

options think got refineries as – I all we've supplied to economically as the ensure that we'll we're logistics use possible. available we keep

Brad Heffern

you. Thank Okay.

Operator

is Gabelman Cowen. next question with from Jason Please ahead. Our go

Jason Gabelman

About a to Hey, that good you OpEx to fuel with related prices. announced. to morning. burn cuts on circle I guess it is do back of I the third oil the has wanted

guess there's over what's helpful. the underpin the an for of price million or be that a weeks volatility So few savings fuel understanding crude would given of past several having you're price assumptions and $XX I the months? that been the of that are in just Just kind the of what lot assuming delta

Will Monteleone

Jason. was roughly ago. weeks about the Yes forward It curve probably two

for just assume at of rest the probably $XX the you're $XX that let's to average and on year, Brent looking it's TI. So close

Jason Gabelman

take long there depressed are margins kind until how that just environment dynamics indicator despite margins the the improves going Asian That's margins of provided. to low, margin kind do helpful. based on think that on suggest market. question rebounding? then out keep And going would demand my second there? think Can Asian I you circling in market the mean, I lot you some remain you've that a but there is the what of of discuss it's Okay. on And rebound just indicators Great. back

Joseph Israel

routine At short-term ULSD. day cutting downs. And they the pressure with runs starting to to online stay responding refineries the watch taking care to gasoline supply-demand to end jet cash are is going of then need will We same negative of and recovery impact starting flow is to slowing already the inventories people think inventory the and cracks. it. back respond to from we with And it's are fuel

Will Monteleone

Jason it's the of I think market a of to that become this that you what kind see refiners the exists today shock in again literally is you have again. reflection clear the happen. demand type see you're just to barrel the run of that out And when imbalance barrels of have going marginal ullage and until therefore feasible And into market. refiners see

volatile. they're think incredibly shifting trying that I alternate as need freight Index And the also being there Singapore to impact huge factor markets. the are on again fact back barrels a to you in clear is at And quickly

refiners So storage out recently that floating the for again because are you've move are those seen there that use supply clean ullage product trying less freight Singapore spike. their are barrels. to to of That's product impacted options flex to chains cracks refined

So think, as I as again, toward I the to think margin see profiles rebalance, going you to feasibility mean. that you're see soon begin regress the

Jason Gabelman

Is else of about in landed is guess costs, that or there? benefit then Got But is more a one driving freight I sneak in? costs that? the I from on Part this in Hawaii. just to – swing guess what's the something $X contango. the other there it. I Just or that part Can $XX

Joseph Israel

contango bit, improvement a there a costs When storage into per $XX the is barrel the good takes bit still pushing floating up, little that little is cost actually offsetting the for and a account. already but it's freight indication you Freight motivation contango contribution. have

just It's their referred the in turnover. suppliers will on and prepared to his The they comments do key have oversupply supply move in can factor you everything Bill what the side. then And is other weakness barrel.

a the COVID-XX have And supply have on on demand crude strong very the shock. war. We And the was combination differential. we side,

Will Monteleone

physical spread to crude large between think, point, and financial the other market the there's I Jason, crude the a Joseph's thing market.

evident the you a And of Brent. think everything buyer there's quoting again that as look And we're dated so, relationship Brent, are again, if capturing we're ICE off discounts that at I crude. physical of to Brent large ICE and

Jason Gabelman

Got Thanks. it.

Operator

[Operator question Andrew And ahead. Lawndale Please from Shapiro Management. next Instructions] our with Capital go is

Andrew Shapiro

you. thank Hi,

past book few value write-downs, our on what Laramie's the With left books? impairment is net

Will Monteleone

Just shy of $X million, Andrew.

Andrew Shapiro

Okay.

more impairment risk So much there. not

or second make guys wave get the Okay. in season, could identified further already you flu the if drags If have a this companies needed? on when cuts we

Will Monteleone

Andrew, it's And long Bill. -- recovery looking other what constantly assessing be a We're we're we're pandemic extent structure. could our actions and the on planning this cost to frankly at done that certainly here.

in even there structure allows if demand cost But our further actually some time. think structure. handle I take we'll place that to of actions us are it period into drop cost for consideration the quite current environment other should further, would that our reduce

Andrew Shapiro

Okay.

have the demand adequately? current to you levels like already feel you adjusted So,

Will Monteleone

Yes.

Andrew Shapiro

Hawaii teams the as control have under it's Zealand ground the the with ground, like its the timing it demand? the you to necessary hearing island about the are on would on are has then, in to well done you New and and the kept state since which What locals are And curve the for and Australia Okay. tourism obviously jet improve first plans same. respect reopening the off or steps states an open to

Will Monteleone

Well, as you a mentioned, very with place the pandemic. actually it's to respect safe

Hawaii. a in And has good there climate discuss of Hawaii. in may stamping have help XX than the virus job think The begun week bit. a in really openings. They've the fewer the little limited I done governor down last positive been to cases

to So, you're think main going community next within in an I the increase activity see there month. in the

really to in point. what they're the you air that and just about is going is up really tourism I at Your tell question something this couldn't do

they're virus they risk the run and introducing if state, outbreak. bringing the having Obviously, an tourists of into the

to or -- that very ensure risk any So, be tourists they will with the associated to ability they can and I think the entering limit do state careful any market. what

Andrew Shapiro

word given And don't -- lastly, conferences use future, I continue the And future any conferences market you per conduct are to investor that the guess the doing relations be foreseeable potential you're but shareholders? attending investor for want and current I to not what to for to se, on going calendar? virtual what in-person to are

Will Monteleone

Will. it's Andrew, Yes.

I think on current point calendar. conferences kind any at have we virtual of this the don't

I think how think the in is with environment. typical scheduling investor still to outreach is to reshaping this reforming I respect function going and

I time had we're to out known inquiry being, or received either think we're and prospective our historical we're for ensuring with. reverse have out we've the shareholders reaching dialogue from to that again, again shareholders that that ensuring So, reaching

Joseph Israel

with to very -- remind want Scotia successful. we've was I it and you that virtual virtual had conference

activity So we back. may see coming this

Will Monteleone

Yes.

Andrew Shapiro

you. Thank

Operator

question is Point Patrick Please from next with ahead. go Beach Our Sheffield Capital.

Patrick Sheffield

for turnaround to how Thanks to based of question. guys. And on maybe spend on wanted on on the Can million needed of follow-up as you little your be the have liquidity, way at over EBITDA think Like, cadence you my see sounds $XXX Hey and CapEx about playing your million then you QX well. look $XXX year? to and what out to in right more spend. trough Is the of a that? to just left of you based the color give It million today. do is I that guidance position guys liquidity that CapEx it? $XXX turnaround rest the taking just like going for the

Will Monteleone

Sure.

to our million and And about we've of way with best start quarterly So million. our excluding amortization $XX with the got charges, start CapEx is think interest I let's basically cash about the $XX and liquidity turnarounds. So think requirements of right? to fixed

$XX And year you fixed call EBITDA that then just Logistics corporate and million think million adjusted averaged $XX and top, businesses, $XX $XX our million And got. so if averaged quarterly quarterly. charges we've quarterly our about right, that of of Retail Logistics about layer our million. on let's overhead about So last Retail then,

up add you all you before So, to you've of million $XX Refining, those EBITDA. got pieces get about quarter a

So, I you before think to Refining. even get

million. I'd ending of So approximately we $XX FIFO Wyoming zero, for year per if the contribution for is if Refining, the QX to which Refining exclude million liquidity $XXX cash in were quarter from you is versus you're segment assume Refining March say the at burn looking where our impact the close you of remainder

think think that's the probably way best it. I about So, to

I and $XX million keep to crude And the then the that, WTI let's I start would $XX off in in call of drove decline the compression if liquidity it in that of would March that $XX just Brent. lows bounces mind referenced increase, collateral say,

but we're conduct turnarounds, planning And on not with we I those think respect planned. our the – it's think this, I to as we it's watching. preference to certainly on worth think So I time again, will

defer alternatives think if that identified further. are those needed we we I that, there can have

required. identified of just smaller we'll further And to as and to manage respond balance we So market we've again, say, our I'd it liquidity bolster should series continue to adjust the to I a conditions. be actively think also options need operations, sheet

Patrick Sheffield

rest that you turnaround million that's planned? year for $XX the the million-ish That's – warranted that And helpful. very is of $XX or the

Will Monteleone

Yeah.

the I XXXX. think is the sort of If and I think XXXX you of probably just QX certainly really item. residual in and into timing trickling million it's year, is for very But bucketed again, there's again, the that, $XX in $XX take outflow Wyoming, roughly Hawaii QX then the remaining of not which million. of a it's late there, for And Washington pre-spin really

Patrick Sheffield

Got of down going I but Retail, know beginning average then business a May, And April of runs down another it. or average last forget was And bunch but… but you you said then I I Logistics good I and was down. was are however don't – guess, the on based call earlier just Logistics sorry referenced guess, in we the part your if it can back it to QX, and that what a that take bounced flex had year. Retail by you did last question, much it

Will Monteleone

Yeah.

without margins just Logistics thing continued then I to most – again the the mind best think between Logistics was April. as getting margins price into which volume in during probably to the And keep expand and the Hawaii case impact, faster, have is falls meaningful Retail, the dynamic again, about during the is piece Logistics quarter. the think our second the to EBITDA,

again, both So, and to to consider with there's dynamics volume so. margin respect

Patrick Sheffield

Thanks, guys. appreciate Great. Thanks. I that, I appreciate color.

Will Monteleone

Patrick. Thanks,

Operator

This back the over would turn I concludes any to Pate like closing the session. for to question-and-answer remarks. conference William

William Pate

in We for begun challenging us everyone. certainly joining you a today Thank XXXX environment.

stakeholders. you. our cycle record Thank good day. durability our our in the track confident remain to long-term market Have the through of value delivering business I of However, a and

Operator

This concludes today's conference call.

for pleasant day. You have disconnect your lines. a you participating and may Thank

Par Pacific (PARR) 9 May 202020 Q1 Earnings call transcript