Par Pacific Holdings, Inc. (NYSE:PARR) Q4 2022 Earnings Conference Call February 23, 2023 10:00 AM ET

Company Participants

Ashimi Patel - Director, IR

William Pate - CEO & Director

William Monteleone - President & Director

Shawn Flores - SVP & CFO

Conference Call Participants

Nicolette Slusser - Goldman Sachs Group

Matthew Blair - Tudor, Pickering, Holt & Co.

John Royall - JPMorgan Chase & Co.

Jason Gabelman - Cowen and Company

Operator

Good morning, and welcome to the Par Pacific Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Ashimi Patel, Director of Investor Relations. Please go ahead.

Ashimi Patel

Thank you, Anthony. Welcome to Par Pacific's Fourth Quarter Earnings Conference Call. Joining me today are William Pate, Chief Executive Officer; Will Monteleone, President; Shawn Flores, SVP and Chief Financial Officer; Richard Creamer, EVP of Refining and Logistics; and Danielle Mattiussi, SVP and Chief Retail Officer.

Before we begin, note that our comments today may include forward-looking statements. These forward-looking statements are subject to change and are not guarantees of future performance or events. They are subject to risks and uncertainties, and actual results may differ materially from these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements, and we disclaim any obligation to update or revise them.

I refer you to our investor presentation on our website and to our filings with the SEC for non-GAAP reconciliations and additional information.

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

William Pate

Thank you, Ashimi. Good morning to our conference call participants. 2022 was a breakthrough financial year for our company. Early last year, product cracks rebounded from pandemic lows and remained strong throughout the rest of the year. Adjusted EBITDA was $643 million, and adjusted net income was $475 million or $7.93 per share. Nearly all our adjusted net income was converted into cash from operations for the year.

We used our free cash flow to strengthen our balance sheet. We paid down nearly $65 million in funded debt and built our cash on hand by more than $375 million. Consequently, our year-end net debt declined to approximately $25 million.

Our team also announced a comprehensive refinancing of our funded debt this month further reducing our cost of capital. This financing, coupled with our strong liquidity, leaves us well positioned to close the Billings transaction. We're targeting a June 1 closing.