Par Pacific Holdings, Inc. (NYSE:PARR) Q3 2023 Earnings Conference Call November 7, 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

Ryan Todd - Piper Sandler & Co.

Matthew Blair - TPH

John Royall - JPMorgan Chase & Co.

Manav Gupta - UBS

Jason Gabelman - TD Cowen

Neil Mehta - Goldman Sachs Group

Operator

Good morning, and welcome to the Par Pacific Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. And now I would like to turn the conference over to Ashimi Patel, Director of Investor Relations. Please go ahead.

Ashimi Patel

Thank you, Marliese. Welcome to Par Pacific's third quarter earnings conference call. Joining me today are William Pate, Chief Executive Officer; Will Monteleone, President; Shawn Flores, SVP and Chief Financial Officer; and Richard Creamer, EVP of Refining and Logistics.

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 Chief Executive Officer, William Pate.

William Pate

Thank you, Ashimi. We're pleased to share outstanding third quarter results with you this morning. Key highlights include record earnings and improved capital structure and achievement of our principal Billings integration objectives. We recorded record quarterly adjusted EBITDA of $256 million. The accretive impact of Billings was illustrated by our third quarter adjusted net income of $3.15 per share, 10% above the comparable result in 2022. This was our first full quarter of ownership of the Billings Refining and Logistics System, which contributed quarterly adjusted EBITDA of more than $85 million.

As previously noted, our principal acquisition objective is to increase annual throughput through consistent, reliable operations. In this regard, we exceeded our acquisition target of 50,000 barrels per day with quarterly throughput above 55,000 barrels per day.

We are also well ahead of our acquisition synergies target due to commercial activities and corporate overhead reductions. Our other refining and logistics units recorded strong profits due to solid operational execution and favorable market conditions. Despite the pressures of rising wholesale prices on street margins, our retail system continued to post excellent same-store sales growth and strong profitability. Across the board, our team continues to exhibit near flawless operational and commercial execution.