Par Pacific Holdings, Inc. (NYSE:PARR) Q2 2024 Earnings Conference Call August 7, 2024 10:00 AM ET
Company Participants
Ashimi Patel - Vice President, Investor Relations
Will Monteleone - President & Chief Executive Officer
Richard Creamer - Executive Vice President, Refining & Logistics
Shawn Flores - Senior Vice President & Chief Financial Officer
Conference Call Participants
Neil Mehta - Goldman Sachs
John Royall – J.P. Morgan
Jason Gabelman - TD Cowen
Matthew Blair - Tudor, Pickering, Holt & Co.
Manav Gupta - UBS
Operator
Good day, and welcome to the Par Pacific Second Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Ashimi Patel, Vice President of Investor Relations. Please go ahead.
Ashimi Patel
Thank you, Cole. Welcome to Par Pacific's second quarter earnings conference call.
Joining me today are Will Monteleone, President and Chief Executive Officer; Richard Creamer, EVP of Refining and Logistics; and Shawn Flores, SVP and 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, Will Monteleone.
Will Monteleone
Thank you, Ashimi, and good morning, everyone.
Second quarter adjusted EBITDA was $82 million and adjusted net income was $0.49 per share. These financial results reflect strong reliability and crisp planned maintenance execution. Notably, the Billings turnaround planning and performance was excellent.
In addition, our retail and logistics segments continued to deliver steady earnings. The completion of the Billings maintenance positions us to push utilization rates in the third quarter in order to meet market demand. Each of our markets is short refined product in the summer months, requiring long-haul imports to balance supply and demand.
Shifting to the broader refining environment, global product inventories are approaching below our end of the five-year range. The combination of elevated utilization rates and relatively flat refined product demand have allowed for modest inventory restocking. Margins have responded in our near mid cycle levels in most regions. Regional dynamics in PADD IV have largely returned to typical premiums versus the Gulf Coast. However, the Southern Rockies has been slightly less attractive as access Mid Continent inventories pressured markets like Denver and Rapid City.