Skip to content
    PARR
    Earnings call· Mar 2026(Q1 FY26)

    PAR PACIFIC HOLDINGS Q1 FY26 earnings call PARR

    May 6, 2026 Source

    Executive summary

    Par Pacific Holdings, Inc. Q1 FY26 — Record Throughput and Renewables Unit Startup

    Par Pacific delivered a strong Q1 FY26, marked by record system-wide throughput and the successful startup of its Hawaii Renewables Unit, despite a significant price lag headwind in Hawaii and softer retail sales. The company is well-positioned for robust cash flow generation in the current margin environment, enabling continued strategic investments and opportunistic share repurchases.

    Highlights

    5

    • First quarter adjusted EBITDA was $91 million, comparing favorably against historical first quarter performances.

    • Achieved a first quarter throughput record across the system, allowing prebuilding of inventory.

    • Successfully started up the Hawaii Renewables Unit, a significant strategic milestone.

    • Repurchased $28 million of common stock at an average price of $38 per share during the quarter.

    • Total liquidity position of $938 million combined with robust forward cash flow outlook.

    Concerns

    3

    • Experienced a net price lag headwind of approximately $125 million in Hawaii due to rapidly rising crude and distillate prices.

    • Retail same-store fuel and in-store sales decreased by 3.3% and 1% respectively, reflecting shifting consumer patterns and state-level closures.

    • Washington throughput was reduced to 23,000 barrels per day due to planned downtime, impacting production costs at $7.53 per barrel.

    Guidance & targets

    9
    CategoryTargetConfidence
    Hawaii throughput
    77,000 to 81,000 barrels per day
    medium materiality
    High
    Washington throughput
    40,000 to 42,000 barrels per day
    medium materiality
    High
    Wyoming throughput
    14,000 to 16,000 barrels per day
    medium materiality
    High
    Montana throughput
    45,000 to 49,000 barrels per day
    medium materiality
    High
    System-wide throughput
    182,000 barrels per day
    medium materiality
    High
    Hawaii crude differential
    $4 to $5 per barrel
    medium materiality
    High
    Renewables sales volumes and earnings contribution
    modest
    low materiality
    Medium
    Renewables sales volumes and earnings contribution ramp
    more meaningful ramp
    medium materiality
    Medium
    Hawaii turnaround financial impact
    limited in the second quarter
    medium materiality
    High

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Refining
    Adjusted EBITDA for the segment.
    		———$69 million
    Hawaii Refining
    Achieved record throughput. Capture was impacted by a $125 million net price lag headwind and West Coast pricing dynamics.
    Throughput: 90,000 barrels per dayProduction costs: $4.67 per barrelCapture: 42%Normalized Capture: 92%
    		————
    Washington Refining
    Throughput and production costs were driven by reduced rates related to February planned downtime. Capture supported by favorable jet to diesel spreads.
    Throughput: 23,000 barrels per dayProduction costs: $7.53 per barrelCapture: 100%
    		————
    Wyoming Refining
    Reflecting lower seasonal throughput. Capture included an $18 million FIFO benefit from rising crude oil prices.
    Throughput: 15,000 barrels per dayProduction costs: $11.68 per barrelCapture: 139%
    		————
    Montana Refining
    Achieved record winter season throughput. Capture was above target range driven by lower asphalt production and favorable sales mix.
    Throughput: 57,000 barrels per dayProduction costs: $9.05 per barrelCapture: 143%
    		————
    Logistics
    Adjusted EBITDA in line with mid-cycle run rate. Strong system utilization in Hawaii and Montana partially offset by reduced crude activity in Washington.
    		———$32 million
    Retail
    Adjusted EBITDA declined sequentially due to lower fuel margins. Sales decreases reflect shifting consumer patterns and state-level closures.
    Same-store fuel sales: decreased by 3.3%Same-store in-store sales: decreased by 1%
    		—decreased by 3.3% (fuel sales)—$15 million

    Operational metrics

    21
    Adjusted EBITDA
    $91 million
    Q1 FY26

    Company-wide adjusted EBITDA.

    Adjusted Net Income
    $39 million
    Q1 FY26
    Adjusted EPS
    $0.78
    Q1 FY26
    Share repurchases
    $28 million
    Q1 FY26
    Cumulative share repurchases
    over 14 million sharesover 20% of shares outstanding
    since program inception
    Total liquidity
    $938 million
    Q1 FY26
    Working capital outflows
    $185 million
    Q1 FY26

    Reflects rising flat prices and higher inventory levels ahead of April planned maintenance.

    Deferred turnaround costs
    $18 million
    Q1 FY26
    Capital expenditures including deferred turnaround costs
    $61 million
    Q1 FY26
    Gross term debt
    $638 million
    Q1 FY26

    Remaining below the low end of leverage targets.

    RINs position
    excess RIN position
    Q1 FY26

    Expected to provide additional working capital inflows over coming quarters.

    Hawaii capture normalized for price lag
    92%
    Q1 FY26

    Reflecting wider West Coast discounts relative to Singapore and lower netbacks on secondary products.

    Singapore 3-1-2 index
    $36
    Q1 FY26 average
    Singapore 3-1-2 index
    over $72compared with 2025 average of $16 per barrel
    April

    Exceeds prior highs observed during early months of Russia-Ukraine conflict.

    Mainland refining indices increase
    approximately $17
    April vs Q1 FY26

    Driven by strong distillate margins.

    Jet yield
    roughly 15%
    Q1 FY26

    Company has high economic incentive to maximize jet yields, particularly in the Pacific.

    Hawaii price lag headwind
    $125 million
    Q1 FY26

    Driven by sharp increase in refined product prices in March; expected to reverse in declining prices.

    Montana index
    $4.84
    Q1 FY26 average
    Wyoming index
    $19.30
    Q1 FY26 average
    Washington index
    $8.20
    Q1 FY26 average
    GAAP results RIN gain
    $30 million
    Q1 FY26

    Represents the difference between current period RIN prices and the book value of RIN assets.

    Industry KPIs

    4
    MetricValueDetails
    Realized price differential$31.11per barrel
    Basin level production volume184,000barrels per day
    Cost of supply unit cash costVaries by basinper barrel
    FCF shareholder distributions$28 millionUSD

    Capital programs

    2
    Hawaii Renewables Unitsuccessful start-up
    Start: early 2026

    Benefit: on-specification renewable diesel; sustainable aviation fuel mode validation

    Achieved a major milestone with successful start-up. Pretreatment unit online, operating in tandem with renewable hydro treater, achieved on-specification renewable diesel in late April. Transitioning to validate sustainable aviation fuel mode.

    Hawaii Refinery Turnaroundplanned
    Start: late June

    Benefit: hydrocracker catalyst change-out; ensuring product supply in Hawaii

    Expected to last between 30 and 45 days, with the renewable fuels unit off-line during this period. Decision tied to hydrocracker catalyst life (6 years since last change-out). Primary goal is to ensure product supply in Hawaii.

    Risks & headwinds

    4
    Lag effect of rapidly rising crude and distillate prices in HawaiiQ1 FY26

    approximately $125 million (Hawaii price lag headwind)

    Mitigation: Expected to reverse into a capture benefit during periods of declining prices.

    Shifting consumer refueling patterns and state-level closures impacting retail salesQ1 FY26

    same-store fuel and in-store sales decreased by 3.3% and 1%

    Mitigation: Implies market adaptation, no explicit mitigation stated.

    Global refined product inventory buffers drawing down aggressivelySummer months

    meaningful tightness over the summer months

    Mitigation: Company has no crack spread hedges in place to position for improved market conditions.

    Volatility in West Coast vs. Singapore pricingQ1 FY26

    West Coast pricing flipped to a significant discount to Singapore, causing 5% to 10% capture headwind in Hawaii

    Mitigation: Both dynamics have normalized heading into Q2, with West Coast potentially pricing at a premium.

    What to watch in Q2 FY26

    5

    Hawaii Renewables Unit ramp-up

    back half of the year
    Currentmodest sales volumes and earnings contribution
    Targetmore meaningful ramp

    Why it matters

    This project is a significant strategic milestone, and its successful ramp-up is key to future earnings contribution and energy transition positioning.

    In renewables, we expect sales volumes and earnings contribution to be modest in the second quarter as we optimize operations and build inventory with a more meaningful ramp in the back half⚖️ of the year following the Hawaii refinery turnaround.

    Q&A highlights

    7

    Confirm jet yield estimate (15%) and discuss jet market dynamics (supply/demand, wider jet vs. diesel spreads).

    Will Monteleone confirmed 15% is reasonable and noted economic incentive to maximize jet yields, especially in the Pacific. He highlighted jet as a difficult molecule to make, with global crude distillation offline and Persian Gulf export reductions creating tightness, leading to strong regrade spreads.

    “I think 15% is probably reasonable. And again, I some of this depends on some of our jet versus ULSD objectives. But as you indicated, given the spreads between jet and ULSD, we see a high -- an attractive economic incentive to try and maximize jet yields, particularly in the Pacific.”

    asked by Matthew Blair · answered by William Monteleone

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Operational Performance and Throughput Records

    Par Pacific achieved a first quarter throughput record across its system, enabling pre-building of inventory ahead of planned maintenance. The Hawaii team recorded 90,000 barrels per day throughput, and Montana achieved a record winter season throughput. Wyoming and Montana facilities completed April outages on time, preparing for profitable summer months.

    02

    Refining Market Dynamics

    Refined product cracks, particularly in Asia, surged to all-time highs, with the April Singapore 3-1-2 index averaging over $72 per barrel, significantly above the 2025 average of $16 per barrel. Global refined product inventory buffers are drawing down aggressively, indicating meaningful tightness over the summer. The company has no crack spread hedges, positioning it to capture improved market conditions.

    03

    Hawaii Renewables Unit Startup

    A major strategic milestone was achieved with the successful start-up of the Hawaii Renewables Unit. The pretreatment unit is online, and the facility achieved on-specification renewable diesel in late April, with plans to transition to sustainable aviation fuel mode. Sales volumes and earnings contribution are expected to ramp up in the second half of the year.

    04

    Retail Segment Performance

    The Retail segment experienced a decrease in same-store fuel and in-store sales by 3.3% and 1% respectively, compared to Q1 2025. This decline was attributed to shifting consumer refueling patterns due to rising flat prices and the impact of three state-level closures from Hawaii flooding events.

    05

    Capital Allocation and Share Repurchases

    The company repurchased $28 million of common stock during the quarter at an average price of $38 per share. Since the program's inception, over 14 million shares (just over 20% of shares outstanding) have been repurchased at an average price of $25 per share. Total liquidity stands at $938 million, supporting strategic objectives and opportunistic repurchases.

    06

    RINs Position and Financial Impact

    Par Pacific remains in an excess RIN position, having monetized less than half of the RINs from prior small refinery exemptions. This position is expected to provide additional working capital inflows. Q1 adjusted EBITDA and net income reflect full RIN expense at current market prices, while GAAP results included a $30 million gain from the difference between current RIN prices and book value.

    AI-generated summary of the company’s earnings call. Not investment advice.