PARR - Earnings call transcript Q3 2020 | Par Pacific Holdings, Inc.

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Operator

Greetings and welcome to the Par Pacific Holdings Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Ashimi Patel, Manager, Investor Relations for Par Pacific Holdings. Ms. you, Thank Patel.

begin. You may

Ashimi Patel

Shyamali. Conference Welcome Third you, Par to Earnings Call. Quarter Thank Pacific's

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

that on future begin, today comments materially any They risks our should the reconciliations subject information. I'll performance revise forward-looking investor our or or over and note Executive statements. and are the to forward-looking to our and and them. may to to actual additional Officer, differ are to Pate. events. from subject reliance Before Bill on with statements. statements non-GAAP and website we obligation change forward-looking results to uncertainties not call President Any for turn presentation Accordingly, you our place we not now include and our statements forward-looking guarantees may disclaim I and Chief of these refer are investors filings update undue SEC

William Pate

morning Ashimi. participants. you, conference call to Thank our Good

$XX third of negative quarter, reported an of and per adjusted we net EBITDA share. the $X.XX adjusted During loss million

May, has in inventories bodes to product quarter. materially improved prior Hawaii experience next weak the from quarter. to our a of summer. slowly oil reduction as third year the And and cracks waterborne differentials reduced record the demand we continued April declining Chinese their seasonally in third to when third modestly buying depths spring been We're of crude recover business. oil during of barrels conditions result, the well see begun continuing Global late quarter. and the In refining The market. most from product also compared improvements with have period, in crude crude While plentiful this for the quarter, to the

on could trends across improving that businesses. Consequently, even of we halt focused However, in reverse improvements. we're our without to capability a or regard some seeing are winter market COVID-XX our surge earnings the improving

in reduced profile. cost these quarter On the are contractual earnings management when XXXX, for million run front, XXXX to of than improvements, contingent third combined on we more expenditures compared cash our to When None increase with rate. improvements market recovery. $XX million identified anticipate well $XXX we've our

our local facility. Operationally, Hawaii's We makes also and successfully COVID-XX was to turnaround fuel resumption meet in Wyoming since we scope Hawaii of to Par Hawaii to jet to Washington a the to permit more lower XX-day call. completed in was demand. delay sense last current to We've trends. defer but planned turnarounds passenger both closely very watching and the projects. for indications Early scheduled quarter earnings first our Beginning are in tourism some it demand. pre-test This given arrival continue we reduce the East been our have difficult quarantine and modified outlook, only growth XXXX planned the operate to visitors our therefore, of to October decided XX, encouraging decision, for Hawaii, improvements a

average positive to a heavy schedule. turnaround lower the continued the was of contributor, was segment third Logistics be profit than related lower due which the Although, historical quarter throughput, some to refining to

logistics assets. In our addition, in fuel of jet resulted lower underutilization demand Hawaii

savings We are key a releasing end of action two profitability. component barges is for to This XXXX. at of cost XXXX the improve our

assets activity these to system from our to record unit are they market We also margins second month. declines Tacoma Fuel our margins in commodity Volumes facilities' biofuels economic unique is next contributor and scheduled of in disproportionately. for strong receive train price increased. logistics were and strong, continues benefited demand believe declined demand from Retail logistics centers. as attributes given when strong, to growing to our We highs improved proximity earnings. but a completed QX, have quarter the be first ethanol lows, overall

profit-enhancing to our protect of time, and incident to operations pandemic have employees We distancing. our efficiently. safely commercial identified I'll obtained, turnarounds great for discuss our and with only we for when ongoing employees positive and workplace profitability and our cost-cutting and their a us dedication had over further coupled of realizing the improvements the of tracing. workplace call thank the executing Regarding effective generating and team our contact significant and our to well-being turn I activity. our job free social maintaining that efforts have Joseph flow. to objective At continuing zero and to the this has one execute cases initiatives, We've believe from positions communities, with done of possible to cash spread our want operational

Joseph Israel

you, Thank quarter, demand meet to customer morning safely good third the COVID-XX In to and system headwinds. market continued Bill, everyone. efficiently and our operate mitigate and

XX% control of good cost approximately In Wyoming, cost our continues performance. structure To $X second our refining Our reliability it expense. quarter reflect refineries expense average This has operating team perspective, to third our our match and turnaround. million planned or XXXX was and completed major put strong to is market quarter under are our by segment in team. well-tuned quarterly once XX-days successfully demand our again a the repeat

expected a the turnaround plant which quarter speak. The averaged the refinery XX on turnaround is and starting third XX%. us give day. throughput cycle Including and flexibility in five-year XX,XXX throughput oil is barrels improve approximately as per September close of we have approximately impact, to We started up to

was adjusted $X.XX barrel, turnaround impact. an barrel estimated of and Index negative $XX.XX realized gross X-X-X including Our for per the was barrel, quarter margin $X.XX per per our

$X.XX quarter Wyoming cost Our per third production barrel. was in

turnaround just approximately barrels throughput day per is $XX averaged X-X-X implied second our an maintain utilized to by approximately refineries throughput within third the with per compared for PADD fourth capacity, COVID for utilization wave index under V per XX,XXX barrel. the day. quarter, XX% average third rates refinery our the refineries. the PADD Wyoming wave with inventory Washington, barrels under reducing seasonal impact target XX,XXX – level. averaged of have Our XX% just quarter In Mountains In quarter product through responded October, to Rocky IV to

As minimum a operations Tacoma integrated close-to-normal and reminder, demand us the impact. allowed COVID-XX with marketing presence to in maintain market niche the our yields has

third Our Index barrel. quarter per realized barrel on Pacific Northwest X-X-X-X $X.XX gross And was $X.XX costs was basis. were barrel. ANS margin Production $X.XX per adjusted per

October. index X-X-X-X to the throughput At-front XX,XXX per approximately Northwest for XX,XXX barrel stable. continues the is Pacific Our per day our demand target in in And averaged barrels be to fourth quarter has $XX refinery range.

our In capabilities quarter giving structure. cost at improved Tacoma, throughput we first our plan logistics more ethanol continues ethanol lastly favorable have to per Hawaii, is came and with We a the our third works guidance for completed turnaround planned system quarter quarter. our which day. And hydrocracker And for our completed team in under project, optimize discovery turnaround. refinery The went the beyond successfully XX,XXX major a result, as plan. barrels our

Singapore per a for oil barrel Index, basis, slow reflecting $X.XX was Our on products. global Brent X-X-X demand recovery

negative crude in turnaround and adjusted $X.XX to barrel, Our oil negative Brent was were margin Hawaii premium of per an $X.XX impact. barrel differentials per $X.XX a our estimated gross including realized actual third barrel per quarter

Production the through in third breakeven the logistics margin downside our long and profitability run. in initiatives $X.XX improve quarter support costs in cash optimization other commercial, and to were Hawaii capture to the continue the in the We by demand market travel the closely Hawaii In jet we barrel. demand following state. during of fuel recovery after, third reopening per Hawaii are tourism and gasoline local a recent trends monitoring quarter, and slow flow the

estimated on our to barrels meet summary, Our efficient in performed In focus We the Will to approximately two pandemic turn day are turnarounds October. And X-X-X $X.XX the per demand. over I tuned quarter Brent. that will execution. XX,XXX our $X.XX financial barrel is in safe Singapore this we with has index barrel And successfully to call to range. per fourth throughput to review Hawaii averaged continue for to the in and operations our results. co-differential Target during quarter is and XX,XXX per fourth premium

Will Monteleone

Thank you, Joseph.

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

been tourism layer Retail $X an up pre-COVID activities segment the demand has pick accounting decreases on in levels XXXX. to in XX% $XX by non-GAAP some quarterly of modest into of than impact holiday will contribution up million, Shifting reverse quarter compared were compared margins down was million decline. begin in The merchandise fuel strong. volumes growth adjusted we remained anticipate and activity EBITDA driven offset approximately first. quarter to remove to million, refining the has loss adjusted Focusing more third LIFO by This results. in roughly as while Northwest prior quarter. of sales results EBITDA the with approximate increases segment Hawaii X% remained results. averages the the have impact. in fuel was $X segment particularly of this XXXX to contribution down subsequent $XX performance, in to items Hawaii volumes liquidation in Merchandise million season. were XX%, the causing most Logistics sales adjusted reduced Same-store Washington from the Gasoline

reduced quarter levels driver demand While refining profitability, throughput the growth a to of product Hawaii not throughput. third track good Island up logistics refining well will in Neighbor matching profitability metric key with was growing a from refined be

throughput and Wyoming and line Washington Our in with locations performed sales.

including product turnaround the project also delivery contract in included refining while per was and his per an factors plant $XX of approximately overall we X-X-X As averages. strong contribution in The during our crude third reduced XXXX. $X segment margins offset by EBITDA were improvements that improvement estimate quarter. to turnaround loss the anticipate refined by We Wyoming quarter, biofuels margin should Singapore late the during of Bill segment approximate the compared opening alluded driving Major improvement seasonally Washington million. internalize historical although which logistics requirements improved we still million $X the quarter crack adjusted drive in a our the logistics season, were ethanol turnaround differentials, recorded during fourth remarks, a activity. adjusted undergoing These second own planned the profitably $X spread increased terms. to of barrel quarter depressed as impacts partial our to partially $XX revenue, in further impacting results ran beginning gross the million barrel quarter Hawaii in imports versus

expenditures throughput versus we negatively $XX the the and diesel as was were net the and million cash $XX were includes cash operations million. net Laramie in ANS outlays. for in Hawaii million an a $XX decreases of was $X in capital included Working adjusted in EBITDAX turnaround expenditures totaling interest turnaround. Cash outlays third $X end million loss consumed of the million from of our of reduced, feedstock Accrued approximately quarter, equaled $XX approximate and turnaround the $XX market. Capital impacted at entered Washington accrued $XX million a by turnaround $X quarter. and crack which reducing million, of approximately Northwest $XX $X cash spreads excluding million our were was and Additionally, million profitability. million. compression Pacific source turnaround overruns sales deferred net generated million. The advantage

totaled approximately and made spend. of of Our rate $XX logistics $XXX working was annual our availability million $XXX reductions in cost quarter ending strong capital cash million prior in and of versus maintained million sold expenses basis cost our million the an from organization. another goods liquidity control run up across on We inflows. benefited for $XX It operating year and

upper turnaround, Hawaii $X year. end range million the we between are and in overrun of $XX $XXX the million our to turnaround by CapEx increasing the for the million and With

We expect the of to range. end be upper this in

our reduction of amounts. cash track sales, expense, on COVID outlay expense achieve capital initial million cost targets, which are energy-related of previously planned We $XXX expenditures, include turnarounds operating versus interest to

$XX year and Looking the prior QX are assets addition conditions. and the versus in that to and savings structure during approximately our addition the the have Par these levels. savings sales of $XX Separately an million forward Hawaii we million elected operating referenced narrow of to OpEx to mentioned market sales savings, expense to refining XXXX additional we and to logistics cost million have cost achieved turnaround million the of of cost spend, for East across previously cash identified only $XX from range driving previously to the relate $XX reductions Two-thirds XXXX, calendar year to of in XXXX unrelated right-sizing to to $XX logistics our million. our of historical planned spread

from $XXX our no the this during cost improvements discussed to expect sales and and have COVID third historical the throughout million We we and and in between logistics projects to specific our more $XX improvements above. To our XXXX Hawaii together million in planned from further, more million rate. approximately the cuts than $XX than Hawaii regulatory has spend remainder growth anticipate break cost cost impact business million. of million $XX cost OpEx -- quarter approximately million our been comments, pieces we The down Putting cuts spread to roughly $XX million top-line $XX units. of $X and run refining cuts is

reductions In Q&A. XXXX. further spend Washington you addition, prepared I'll through This improve it our liquidity in concludes, to turn turnaround Operator, the our back our remarks. for position

Operator

Instructions] Mehta proceed Goldman with with [Operator question Please Our your Neil Sachs. first from is question.

Neil Mehta

about I here it talking your we the morning, from I retail Good questions. Thanks team. of things have of one that for all results another first one guess, is been It's Hey. set of taking you assets business. the help know was industry? strong in performing given well? of a that's you some successful especially, retail do the of better do those retail value And the business the unlock assets, the value really how other illuminate the monetization how to

William Pate

Neil, needless in lot high say to level it's I Clearly, strong it's downturn retail of continued fortunate is We're profitability that were very our Thanks ways. to business volumes a question. and some and grow flow asset. free an Bill. have generate that the unique cash of valuable when a extremely even through franchises think are And to down. for

given makes high the the very estate of valuable. difficult Our estate to scarcity the which and land, logistics from a real in of extremely barriers form nature benefits business supply the of and entry Hawaii island particular costs strong in state, real

labor feel our that are operators to by addition -- are competitors unique with third-party In pressures X-Eleven. our Hawaii that often store mitigated also relationship like in

with So team business. let and this me we're the very just performance say, of the pleased

from we but structure free integrated, service. debt retail, illuminate to comfortable structured strategic retail Not vertically the flow being we from way how always the you of of owning have. our that debt nature perspective is with is what allows get out of get retail retail. of the capital it regular because just terms of And the I we entire it be In start of it, our we the supports about if us cash the level think --

there value, reduce operate business very the given business have but one downstream should basis. to business is in fact on and ways we And illuminating the operator as things how think a probably we of a with cost business. continue face I -- the you do know we are for think better integrated of think with of well of to retail us job our the it's capitalize overall attractive we that to we just about But strategy. the the cost vertically that that that that believe I given of a we we're our capital a fits conjunction part capital

Neil Mehta

quarter-over-quarter, good place but $XXX was And slightly down million. Okay. you follow-up in is still around liquidity, which here it on referenced, the a

in your your situation, downside don't in your scenario. anticipating we about recovery sheet talk you perspective? ability liquidity this here in balance about how from we're a demand confidence the a especially get feel If as to what XXXX, that is navigate Just

Will Monteleone

Neil, Will. this is

and think we're our position. that fixed I I earlier really again, with outlined it of start I is some we've think to is the our this way probably the year, that with think And back way to I to about provided comfortable think charges. views our best to the think refresh XXXX commentary best about And here. liquidity tie

exclude our million interest And cash million CapEx the million and $XX between somewhere and range. amortization then turnaround, $XX somewhere a to in the call quarterly Washington quarter. we you if let's our requirements So $X our expect be

between, and So say CapEx charges. base just let's quarterly interest million it's fixed maintenance amort, about $XX

the a EBITDA. And fair So about to logistics that's a been think look start. side we've you million expectation been $XX then in take from I tourism way particularly two which in I the again in $XX quarter think probably think reflects up about the a quarters, of our quarter think is and which is to $XX that million. at of million good a take corporate our over range, to retail running the where Islands, of at let's I improvements then the at somewhere last overhead $XX our per equation, And place has million Neighbor but

consider So $XX if those of refining. about you $XX add all you up before EBITDA pieces, you get to of million million

So to I start. place think that's good probably a

I'd of to a liquidity us burn cash reversal referenced, capital September assume from contribution zero needs. if this we likely as so a looking you quarterly I our $XX like gives address but refining, you're a to somewhere million. $XXX ending to And versus zero say, working at between quarterly our million adequate be liquidity really there's feel

Neil Mehta

you. Thank guys. Great

Operator

next Please is question. with your RBC Markets. our And Heffern from question Brad Capital proceed with

Brad Heffern

Yes. Thanks everyone.

Just the to we forward? about how Can said reversal Will maybe some the puts there large could going about follow-on should talk on And of what you see takes working just we capital. and of you expect? a

Will Monteleone

Sure.

I think about were million, was quarter. Brad, and during the we million $XX the accrued of out about paid quarter incurred turnarounds during the that $XX that

with it call source. let's million a and about that quarter million during there's working side, benefit $XX the in another So $X the associated to addition turnaround capital about

million working aggregate about in capital the quarter. $XX to a So had you benefit million $XX during

turnarounds a fourth moving you I of to quarter. reversal flowed it think going probably -- in of about and way during that's think the give to to best a the the benefit Obviously, to number, pieces likely think some lot it's quarter. that we're the of but I we fair precise assume the expect during way that a scope

Brad Heffern

guidance I of the that. in terms for for Thanks Hawaii. And diff then guess crude Okay.

about that that $X.XX market the for crude thoughts dips where XXXX. you in of looseness said about the in in prepared talked Any could seeing premium. for But Hawaii? you the benefit you're buying remarks just now the barrels you're Hawaii some the So

William Pate

up we Yes. tight to the let Bill. dips trend. have in economies going the I This then fairly as me quarter. Asian seen I'm deteriorate big fairly in a think strengthening then the pick is of prices and been that's has And to third some Joseph started up, although for the loosened we've the that factor have this. But to as have handle dip spring seen started the recent It say just let that, and summer. generally most

for But I is And chain that's to the given latter might again. see some going we that. where good you'd think start -- even add we're But QX and don't pretty part QX. about of So about Joseph outlook frankly our think the if already into even supply know anything latter, the QX and QX. starting tightening as to to

Joseph Israel

cargoes. don't when And much I only some up markets to Yes. you to dominate we add. weak and it's low. would as have started that the QX will differentials the I say pick expect COVID-XX remain

So Bill with fully agree just everything, said.

Will Monteleone

I'd Brad are that impact quoting. this is, from range year does quarter have earlier the the cargoes say still I'll in bringing acquired the that is that $X only thing Joseph fourth add And up some in number

Brad Heffern

Okay. if could it. more sneak Got one I just in. And then

quarter are the EBITDA any project completing from you current looks here environment? the On in on biofuels the thoughts like fourth that more generation what -- that like guys in

Will Monteleone

Yes.

the us more number it's likely on of we there's of centers our some that a million worth projects the make end range. $X growing there year ethanol $X and demand upper we probably growth allow grow. internalization serve that think consumption, between based think could that I to on Brad And somewhere our attractive think million

Brad Heffern

Okay. Thank you.

William Pate

Thank you.

Operator

proceed Blair with with Our Co. Matthew question. next Tudor, is & Holt from Pickering, your Please question

Matthew Blair

and Hi, good Bill morning, Will.

Will Monteleone

Matt. Hi,

William Pate

Good morning.

Matthew Blair

both gas that monetizing operations in terms prices Given guess you could Laramie, strategy for as your talk the of current well as just about natural improvement in I potentially investment?

Will Monteleone

this is Will. Matthew, Sure.

monetize improved I said, That environment outlook And improvements think the gas it's written I asset. the and a their gas to for natural down we've our recent very think XXXX difficult zero. prices to think business. for think in investment that in market I I positive are certainly Laramie still again

outlook flow So while that I is has I improved, asset the think to ability think for the Laramie free cash market challenging.

that's ultimately position But monitor. to think today. I we'll think something continue a I difficult that's

Matthew Blair

refining the Okay. And then on side.

demand third restarting quarter cost in not East the run a If West? Par West. Par ran you significant day, or So did recovers, is Par to any XX,XXX other there at hurdles

William Pate

market at and the cost say at Par to really materially is in restarting economics this a the no would cracks for current would would a Even restart forward though at that and based this resumption improve matter Matt, justification significant which at West. cracks There's crude a Singapore the fuel demand, point. no Bill. on differentials point this jet -- looking I little there's product not improved that unless bit for point. oil

Matthew Blair

questions. taking for Sounds good. my Thanks

Operator

Please next Our Jason question. with from is question with Gabelman proceed your Cowen.

Will Monteleone

you're if you. can't hear we Jason, speaking

Operator

All Sorry, accidentally Cowen. he off queue. now Instructions] We [Operator dropped from question have apologize. was right. We the Please of proceed. do Jason Gabelman

Jason Gabelman

Can me? you hear

William Pate

Yes.

about Sorry Jason. that

Jason Gabelman

Yes ask All I that. wanted sorry about to two right. questions.

that strong than are hitting that Firstly kind additional from magnitude are sales see attributes demand? keeping that you Hawaii? to secondly be new on And contracts your what for earnings, order get lower Tacoma is? you then noticed just if meaning you period peers in XQ some signed Thanks. margin is that this -- as of even benefits are to throughput of to. the to capture contracts going you've Hawaii, product during I new talk guiding mentioned supported about pretty those in expect to reflected benefit benefit throughput that Can there XX continue your you of weak in improving market in earnings. there And the that guidance your some better what contracts Are

William Pate

let and in I'm question Bill. on on your the handle Tacoma I'll this improvements in particular. throughput question address just Jason, commercial Hawaii going Joseph is to the

we've we've are come the and you of all still improvements fuel with that the last supply below an As had had that or think contracts of conversations in is. because And our a as number economics of Hawaii number economics. product a importing the sometimes somewhat more. with six the market think a and conversations of our low-cost customers And refining last up operation. volumes our have where have the of almost is alluded unusual the all know in a we then to months And of to, contracted We virtually regarding I But business. cost customers we the improved months that's I of very overall our six customers have when we $XX reflects XXXX earnings profile million million look savings. to over remainder the the uplift at rate. related of And the see we in a improvement QX that run is million $XXX the $XX year cost

run QX some the So rate reflected already improvement.

$XX So can greater than were number. the you overall commercial assume million that improvements that

Joseph Israel

question. with Tacoma And to regards the

made mean environment. margins Tacoma flow low-market the even cash First, I in a third quarter in money contributed very

was barrel helpful. continue margin long the is incremental cost thing. barrel So a to as the the incremental good variable actually better And running than directionally as be this will

dropping our regards to compared guidance by we the third are XX% almost Now to fourth throughput quarter, quarter. the with

market this we to So are adjusting environment.

will about unique and VGO. Tacoma. I thing XX% what make yield of asphalt a really very is other Remember, we The mention structure. we have

on So in the we less continue commodities to more relying cycle environment. And demand. down are have light sell the to product stable

Jason Gabelman

a for the lot Thanks Great. color.

Joseph Israel

you. Thank

Operator

Beach Please question from And our question. Capital proceed with your Sheffield with Point next is Patrick Management.

Patrick Sheffield

$XX related you're heard had million set what's as of million-ish quick for outflow One for given how the go capital fourth follow-up it reversal. driver thought for actual to I working Thanks in there much turnarounds? of and taking the cash question. $XX third think previously guidance what can for was you original you can were And sure And the that I sounded again? in fourth XXXX. in being wasn't my over instead but XXXX quarter turnarounds us tell million we -- that versus paid quarter? the quarter, turnarounds was that just the -- accrued cash just in $XX spend outlay guidance? And level you like Hey like in of going on if spent of said XXXX guys. just I reduction the cash that the you to not should

Will Monteleone

Sure Patrick.

Will. it's So,

I questions think a couple in there. different of

accrued on $XX of just the was I books on million the the let's think at AP associated turnarounds. with there's basically about end X/XX that of turnaround the say

that expect then the That will be quarter. And in paid activity in Joseph that fourth referenced right? the we'd during ongoing out think continue quarter, to I there's So, the fourth Wyoming.

AP the expecting as carryover if the million quarter in to both which your we've fourth the really we're really in range that guidance for spend the third with that as provided. at is million that from well the you activity $XX turnaround the probably annual aggregate it's look the quarter $XX respect question So, answers Wyoming Hope to--

Patrick Sheffield

Yes. perfect. Yes, that's

Will Monteleone

And narrowed $XX Washington. respect the to to We've It million. then the $XX referenced outlay it for XXXX, with $XX million. million we've to reduced previously was

maintenance spend been million planned And our historical So, most and growth And has of that will any have $XX million. between be incurred during the first regulatory and quarter. then don't $XX again, we projects.

for of that $XX the the of in million -- somewhere at low range So, end $XX Washington the midpoint turnaround. $XX at million you're the XXXX you range take to take that and million

Patrick Sheffield

turnaround the reduction going period. in of super kind to have of you scope I you're think result that we a result busy any helpful. a being there -- -- another of turnarounds XXXX mean finished that does before next XXXX? or as this As several once were And thinking major had of years that's without in

Will Monteleone

Yes.

likely there needs think -- I occur somewhere a to in will additional be So, in in XXXX Washington. that turnaround

of growth that spend again QX. planned really defer. was going and had electing some again, So, the And we we're we're aspects that during critical items hitting there the to in

So, hopefully that answers your question.

Patrick Sheffield

strong you Thank It tough market, got does. a Thanks. And congrats quarter. you. well, on it's but a --

Operator

Group. question. Please with [Operator Management Gomolinski-Ekel from Instructions] next And Ellington our with question Jake is your proceed

Jake Gomolinski-Ekel

Hey, the questions. morning taking and for good thank you

William Pate

morning. Good

Will Monteleone

morning. Good

Jake Gomolinski-Ekel

X,XXX restrictions numbers going day The in seeing September to -- passenger X,XXX looks are volumes, I you here traffic in in that driven traffic? a to that from obviously, to day all at is Xx Are with the positive -- guess, like in the COVID And we X,XXX up X passenger mid-October. any small from something that from seeing uptick Hawaii? it's we're had to by impact like Hawaii X,XXX-plus increase a one point change

William Pate

that And Bill. -- XXth, pleased I XX are I Keep still into on lifted is with it upturn. weak. it. this mean It's we as very Jake, pleasantly October mind we're in was were mentioned comments days so early. -- we're the material. very my the Cracks in is our only quarantine in

start Neighbor inevitably haven't So, really demand where would jet islands, the will fuel try the the profile, you're of the on be especially which to of an in the our in see we our dramatically volumes fuels, out fuels, first, early utilization it logistics, demand, kind Hawaii see see And logistics though increase Islands. Neighbor fuel tourism to whether ground only or ground because Neighbor an in in increase bottom resumption Islands, quantify transportation to to impact. those to -- in will transportation to don't consumption lead likely in demand jet improvement increase with the will line. more assets, the it Hawaii contribute on point will we likely be a to but and as you're change greater of I it's not

startup see mean West be makes the East. clear. demand, island East island. than likely probably importing. the us you Par are jet unable is because to to of and sooner position a where We the importing thinking say, fuel support the need or we've start fuel to start and is our later think that, of about And aren't I our support or economically such That existing demand the I effectively to have XX% to rather demand. to we only But all refinery to fully a be in we for we're demand passenger increasing, where, just for very And justified doesn't cracks about want be Par position utilized Par that it the that's there. sense to not we'll in jet

that -- we'll better the option import So the is at point.

Jake Gomolinski-Ekel

to I a free forward down. helpful. to blip of quarantine to from XX%, numbers, seeing, I'm on that's hear. people probably burn or flow? us their up the leaving but in the you guess, of assuming of No, there took given But your ways to chop based amount go positive I a that's I XX% between to still but cash -- Right. But in the go bunch X/XX? the in a fair XX% anticipated good terms guess, was back add where and what And transcript to when curves outlook. anticipate is to the the you what want cash inflection your are data

Will Monteleone

the that improvements the Jake, that's I think Hawaii cash in is way to different of given moving to with lot we've this just the the index about with think you X-X-X the the I'll year-to-date. from best I you're refining, you cost you're give. a we've crude but reference $X there's for to approaching best improvements that heard, way pieces made. reductions the the for there's range, take breakeven, as per as think the to perspective largest on been, is XXXX. that obviously, consumption less And think the barrel think if think about where And focus contract businesses, I well referenced Bill guidance we market a it, in And $X diff I

Jake Gomolinski-Ekel

put now what consumption, figure between, and number we you seeing, based I the in wasn't sort to I -- if and the turnaround forwards on between had last those is number? terms anticipated of the numbers. And you that out just trying we're capital that cash cushion that think liquidity what together inflection you're between and point. can questions a working of guess sure, Okay. just I the on

Will Monteleone

Yeah.

I there too pieces you give of guidance to need model to I there. variables think there's trying give free the it. in concrete effectively to consider, But piece on probably order you to burn many think cash a

Jake Gomolinski-Ekel

for you. Those me. Thank That’s helpful. very are Okay.

Will Monteleone

Jake. you, Thank

Operator

the next to Mehta And with for closing from question William have -- we reached and of Neil our I question-and-answer session. end will over call now remarks. turn the is our And Pate

Will Monteleone

in Thank pandemic created has The sector. you, Shyamali. energy destruction, the unprecedented

control influence we costs. numerous factors. market base obviously While control there's our cannot we asset demand, can our other We can

your on we focused to significant economy I can a control is the when team managing good management day. recovers. profitability generate support. ensure we what Your appreciate Have that global

Operator

concludes you disconnect And you this And your lines Thank conference. at for participation. time. this today's may your

Par Pacific (PARR) 2 Nov 202020 Q3 Earnings call transcript