Inquiring about insights into the Singapore market, particularly regarding China's refinery utilization and refined product exports.

Will Monteleone noted that despite some announcements of increased crude throughput in China, there's no material change in refined product exports in July or August. He emphasized watching vessel movements and highlighted China's long-term focus on internalizing capabilities. “I would say despite I think some announcements and potentially some increases in crude throughputs not seeing any material change in exports of refined product as we look in the July and even the forward planning that we've seen at least through August.”

Seeking more color on the Hawaii turnaround, including any surprises and the status of remaining units.

Richard Creamer confirmed the turnaround was on schedule (30-45 days), with the crude and reforming units back online within 30 days. The hydrocracker is in catalyst activation and start-up. Costs and schedule were close to target with no significant issues. “The turnaround was scheduled for 30 to 45 days... the hydrocracker and the mechanical work is completed on it, and it's in the middle of Catalyst activation and start-up at this point.”

Asking for an update on capital allocation priorities, including capital returns, M&A, and other considerations.

Will Monteleone stated that capital allocation remains dynamic, guided by a disciplined view on creating long-term per-share value. He highlighted current focus on internal small-scale projects with low 20s unlevered returns, while remaining prepared for M&A or opportunistic share repurchases. “at this point in time, I think we're spending a fair amount of effort doing internal small-scale projects that I described as kind of singles and doubles that I think give us flexibility to achieve unlevered returns that are in the low 20s for refining logistics projects.”

PARR

Par Pacific (PARR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 5, 2026

Source: earnings call transcript

Executive summary

Par Pacific Q2 FY26 — Strong Execution Drives Exceptional Earnings and Balance Sheet Strengthening

Par Pacific delivered exceptional Q2 FY26 results, capitalizing on favorable market conditions with strong operational and commercial execution across its refining, logistics, and retail segments. The company significantly strengthened its balance sheet through debt reduction and maintained a robust liquidity position, while also making progress on its Hawaii Renewables business. Management remains focused on disciplined capital allocation and internal growth projects amidst evolving market dynamics.

Highlights

Adjusted EBITDA reached $571 million, reflecting strong market conditions.
Adjusted net income was $499 million, or $10.10 per share.
Combined market index averaged $33 per barrel, well above historical norms.
Term debt was reduced by over 20%, contributing to a total net debt reduction of over $220 million.
Total liquidity stood at a robust $1.4 billion at quarter-end.

Concerns

Same-store fuel volumes declined by 0.8% in the retail segment.
Working capital outflows totaled $312 million, driven by inventory build and higher commodity prices.
Hawaii crude differential is expected to increase to $11.50-$13.50 per barrel in Q3 FY26.
Montana Coker maintenance in Q3 FY26 is expected to incur $6 million to $8 million in incremental OpEx.

Guidance & targets

Category	Target	Timeline	Confidence
Hawaii conventional throughput	55,000-65,000 barrels per day medium materiality	Q3 · FY26	High
Hawaii renewable throughput	1,500-2,000 barrels per day low materiality	Q3 · FY26	High
Washington throughput	40,000-42,000 barrels per day medium materiality	Q3 · FY26	High
Wyoming throughput	17,000-20,000 barrels per day medium materiality	Q3 · FY26	High
Montana throughput	56,000-61,000 barrels per day medium materiality	Q3 · FY26	High
Consolidated throughput	182,000 barrels per day high materiality	Q3 · FY26	High
Significant planned downtime	None medium materiality	H2 FY26	High
Federal tax position	Typical federal tax position high materiality	FY27	Medium
Hawaii crude differential	$11.50-$13.50 per barrel medium materiality	Q3 · FY26	High
Montana Coker incremental OpEx	$6 million-$8 million low materiality	Q3 · FY26	High
Renewables third-party sales volumes and earnings contribution	Gradual ramp low materiality	Q3 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Refining Reflecting a sharp step-up in market conditions driven by crude and refined product supply disruptions, compared to $69 million in Q1. Combined market index: $33 per barrelSystem-wide refining capture: 125%Normalized refining capture (ex-Hawaii price lag & Wyoming FIFO): 112%	—	—	—	$552 million Adjusted EBITDA
Logistics Compared to $32 million in Q1, reflecting reduced crude imports ahead of the Hawaii turnaround.	—	—	—	$30 million Adjusted EBITDA
Retail Sequential improvement compared to $15 million in Q1, driven by partial recovery in fuel margins and continued growth in foodservice sales. Same-store fuel volumes: -0.8%In-store sales: +1%	—	—	—	$17 million Adjusted EBITDA
Hawaii Refining Lower production versus planned was the result of the refinery experiencing end-of-cycle conditions and the turnaround. Throughput: 73,200 barrels per dayProduction costs: $6.43 per barrelSingapore 3.1.2. index: ~$50 per barrelLanded crude difference: $3.93 per barrelHawaii index: ~$46 per barrelHawaii capture: 124%Net price lag benefit: $77 million or $11.49 per barrelNormalized Hawaii capture (ex-price lag): 99%	—	—	—	—
Montana Refining Reflecting April outage downtime and costs; strong performance in May and June post-outage. Throughput: 53,000 barrels per dayProduction costs: $10.16 per barrelIndex: $25.76 per barrelMargin capture: 144%May/June monthly throughput record: ~62,000 barrels per dayMay/June OpEx per barrel record: $7.56 per barrel	—	—	—	—
Wyoming Refining Reflecting April outage downtime and costs, partially offset by inventory draws. Throughput: 14,000 barrels per dayProduction costs: $15.28 per barrelIndex: $28.73 per barrelMargin capture: 118%FIFO headwind: $3 million	—	—	—	—
Washington Refining Set a new quarterly record for throughput, supported by continued jet to diesel strength on the West Coast. Throughput: 41,200 barrels per dayProduction costs: $4.21 per barrelIndex: $20.27 per barrelMargin capture: 100%	—	—	—	—

PARR operating KPIs by quarter

PARR operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Refinery throughput Hawaii	87K bbl/d In Hawaii, throughput was strong at 87,000 barrels per day. Source: earnings call transcript	90K bbl/d In Hawaii, throughput was a record 90,000 barrels per day and production costs were $4.67 per barrel. Source: earnings call transcript	73.2K bbl/d In Hawaii, the Q2 throughput was 73,200 barrels per day and production costs were $6.43 per barrel. Source: earnings call transcript	-18.7%
Refinery throughput Washington	37K bbl/d Washington throughput was 37,000 barrels per day, reflecting reduced rates ahead of the first quarter planned downtime and production costs were $4.57 per barrel. Source: earnings call transcript	23K bbl/d The first quarter Washington throughput was 23,000 barrels per day and production costs were $7.53 per barrel, driven by reduced rates related to the February planned downtime. Source: earnings call transcript	41.2K bbl/d As I stated, Washington throughput set a new quarterly record at 41,200 barrels per day and production costs were $4.21 per barrel, capturing market missions following the Q1 planned outage. Source: earnings call transcript	+79.1%
Refinery throughput Wyoming	14K bbl/d Shifting to Wyoming, throughput was 14,000 barrels per day, and production costs were elevated at $13.27 per barrel due to a third-party power outage in Northern Wyoming and lower seasonal throughput. Source: earnings call transcript	15K bbl/d Shifting to Wyoming, throughput was 15,000 barrels per day and production costs were $11.68 per barrel, reflecting lower seasonal throughput. Source: earnings call transcript	14K bbl/d Throughput was 14,000 barrels per day and production costs were $15.28 per barrel, reflecting the April outage downtime and costs. Source: earnings call transcript	-6.7%
Refinery throughput Montana	52K bbl/d Finally, in Montana, fourth quarter throughput was 52,000 barrels per day, and production costs were $11.74 per barrel, elevated by approximately $1.50 per barrel due to coker maintenance. Source: earnings call transcript	57K bbl/d Finally, in Montana, first quarter throughput was 57,000 barrels per day and production costs were $9.05 per barrel. Source: earnings call transcript	53K bbl/d Finally, in Montana, second quarter throughput was 53,000 barrels per day and production costs were $10.16 per barrel. Source: earnings call transcript	-7%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Public market Issuance of senior unsecured notes to reduce gross term debt. $500 million

Inaugural senior unsecured notes offering.

Capital programs

Hawaii Plant-wide Turnaround substantially complete

Period spend: $19 million

Start: late June 2026

Executed safely and cleanly, delivering cost and schedules near target. Major operations safely restarted, with hydrocracker in catalyst activation and start-up.

Wyoming Scheduled Outage completed

Start: April 2026

Completed safely and efficiently.

Montana Scheduled Outage completed

Start: April 2026

Executed safely, on time, and on budget.

Montana Coker Maintenance underway

Period spend: $6 million to $8 million

Start: July 2026

Routine maintenance, expected to return to service by mid-August.

Risks & headwinds

Pressure on fuel margins in higher price environment Q2 FY26

Same-store fuel volumes declined by 0.8%

Mitigation:Merchandising and food programs continue to advance, strengthening underlying earnings power.

Working capital outflows Q2 FY26

$312 million

Mitigation:Expected to reverse as inventory levels normalize after Hawaii turnaround and commodity prices stabilize.

Higher Hawaii crude differential Q3 FY26

$11.50-$13.50 per barrel

Incremental OpEx due to Montana Coker maintenance Q3 FY26

$6 million-$8 million

Mitigation:Routine maintenance, expected to return to service by mid-August.

Extreme market volatility Q2 FY26

Combined market index averaged $33 per barrel, well above $12.40 in 2025

Mitigation:Company executed crisply and used full commercial flexibility; moderated share repurchase activity in favor of debt reduction.

Disruptions in crude and refined product supply Q2 FY26

Drove market conditions

Mitigation:Commercial team optimized crude sourcing and product placement, generating excellent capture rates.

What to watch in Q3 FY26

Hawaii conventional throughput

next quarter

Current 73,200 bbl/d (Q2 actual)

Target 55,000-65,000 bbl/d (Q3 guidance)

Why it matters

Verifies successful restart and ramp-up post-turnaround, impacting overall refining volumes and profitability.

Looking ahead to the third quarter, we expect Hawaii conventional throughout between 55,000 and 65,000 barrels per day and renewable throughput between 1,500 and 2,000 barrels per day, reflecting the turnaround event in July through early August.

Find out whether PARR delivers this. Inve re-checks your case every morning.

Q&A highlights

Seeking clarity on the financial impacts of the Hawaii turnaround in Q3, including inventory monetization, OpEx, and potential price lag.

Shawn Flores stated it's too early to call price lag impacts, but Q3 capture would likely be below typical guidance due to imported barrels being costed in Q3. Most turnaround expenditures are capitalized, with a marginal increase in OpEx. Will Monteleone added that the plant won't be at full rates for the entire quarter.

“we are expecting a more concentrated impact of the turnaround activities in we built refined products through imports late in Q2. But from a costing perspective, most of those imported barrels will be costed in Q3. So would expect capture to likely come in below sort of typical normalized guidance of 100% to 110% because of those factors.”

asked by Matthew Blair · answered by Shawn Flores

2 min read 5 chapters

Detailed narrative

Strong Q2 Performance

Par Pacific reported strong Q2 FY26 financial results, with adjusted EBITDA of $571 million and adjusted net income of $499 million or $10.10 per share. This performance was driven by excellent operational and commercial execution across all business units, capitalizing on favorable market conditions with a combined market index averaging $33 per barrel, significantly exceeding historical norms.

Refining Operations and Turnarounds

The refining segment saw a substantial increase in adjusted EBITDA to $552 million. The Tacoma refinery achieved a new record quarterly production rate of 41,200 barrels per day, representing 98.1% utilization. The Hawaii plant-wide turnaround, which commenced in late June, was substantially completed safely, on time, and on budget, with major operations successfully restarted.

Scheduled outages in Wyoming and Montana were also completed efficiently in April.

Hawaii Renewables Progress

The Hawaii Renewables business made steady progress during the quarter. Renewable diesel production ramped up to approximately 3,000 barrels per day in June, prior to the plant-wide turnaround. The company also successfully completed its first commercial renewable diesel sales, establishing the operational pathway from production to market, despite the current small volumes reflecting the early stage of commercial ramp-up.

Balance Sheet Strengthening and Capital Allocation

Par Pacific meaningfully strengthened its balance sheet by reducing term debt by over 20% and achieving a total net debt reduction exceeding $220 million, facilitated by an inaugural senior unsecured notes issuance and ABL borrowings reduction. Total liquidity stood at $1.4 billion as of June 30.

Management emphasized a dynamic and disciplined approach to capital allocation, prioritizing long-term per-share value creation through internal small-scale projects, M&A, and opportunistic share repurchases.

Market Conditions and Outlook

Global refined product inventories remain tight, with structural factors such as reduced exports from the Pershing Gulf and Russia, conservative Asian refiner operations, and protectionist policies continuing to support margins. While the Q3 Hawaii crude differential is expected to be higher, mainland distillate margins have remained firm, and seasonal demand has been strong.

The company anticipates utilizing a substantial portion of its NOL in FY26, potentially transitioning to a typical federal tax position by 2027.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.