Par Pacific Holdings Inc. (NYSE:PARR) Q1 2022 Earnings Conference Call May 5, 2022 10:00 AM ET

Company Participants

Ashimi Patel - Senior Manager, IR

William Pate - President, CEO & Director

Richard Creamer - EVP of Refining and Logistics

James Vaughn - EVP of Retail

William Monteleone - Executive VP, CFO & Director

Conference Call Participants

Carly Davenport - Goldman Sachs

Matthew Blair - Tudor, Pickering, Holt

Alejandra Magana - JPMorgan

Jason Gabelman - Cowen and Company

Andrew Shapiro - Lawndale Capital Management

Operator

Good morning, and welcome to the Par Pacific First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would like to turn the conference over to Ashimi Patel, Director of Investor Relations. Please go ahead.

Ashimi Patel

Thank you, Kate. Welcome to Par Pacific's First Quarter Earnings Conference Call. Joining me today are William Pate, President and Chief Executive Officer; Richard Creamer, EVP of Refining and Logistics; Matt Vaughn, EVP of Retail; and Will Monteleone, Chief Financial Officer.

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

I refer 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 President and Chief Executive Officer, Bill Pate.

William Pate

Thank you, Ashimi. Good morning, everyone.

Our first quarter adjusted EBITDA was $8 million and adjusted net loss was $0.53 per share. These results included a $5 million noncash mark-to-market expense for our 2019 and 2020 RFS compliance.

First quarter results reflected lost profit opportunities associated with our Washington turnaround, the impact of rapidly rising crude oil prices in Hawaii and off-season conditions in Wyoming. Market conditions improved significantly in the second quarter. With the Washington turnaround behind us, we're focused on maximizing production in a highly profitable market environment.

Over the past 2 months, refined product crack surged to all-time highs due to increasing physical crude costs, increasing demand and reduced supply from Russia. In addition, record natural gas prices have driven up production costs for refineries reliant on natural gas for utilities and hydrogen. Consequently, the April Singapore 3-1-2 Index is well above historical norms, averaging almost $30 per barrel compared with a 2021 average of $6.22 per barrel. Cracks are also at high levels in Wyoming and Washington. The war and related trade sanctions sparked rapid increases in crude oil prices during the first quarter and then stabilized above $100 per barrel during April.