Par Pacific Holdings Reports First Quarter 2026 Results
Rhea-AI Summary
Par Pacific (NYSE: PARR) reported strong Q1 2026 results: net income attributable to stockholders of $54.5 million ($1.10 diluted EPS), Adjusted Net Income of $38.5 million ($0.78 diluted EPS), and Adjusted EBITDA of $91.5 million. The company repurchased $28.0 million of stock and achieved record Hawaii throughput of 89.8 Mbpd. The Hawaii renewable fuels facility began commercial operations in April.
Operating and segment details: refining Adjusted Gross Margin $185.1 million, retail and logistics margins noted; cash balance $172.2 million, total liquidity $937.7 million.
Positive
- Net income of $54.5 million (Q1 2026)
- Adjusted EBITDA of $91.5 million
- Repurchased $28.0 million of common stock
- Record Hawaii throughput of 89.8 Mbpd
- Hawaii renewable fuels facility began commercial operations
Negative
- Net cash used in operations of $(40.7) million
- Working capital outflows of $(184.8) million in Q1
- Hawaii net price lag impact of $(125.5) million
Market Reaction – PARR
Following this news, PARR has declined 10.88%, reflecting a significant negative market reaction. Our momentum scanner has triggered 13 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $61.67. This price movement has removed approximately $418M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Market Reality Check
Peers on Argus
PARR gained 3.08% pre-release while peers were mixed: DK +1.65%, WKC +1.56%, CAPL +0.97%, SGU -1.28%, DKL -3.54%, suggesting a company-specific setup.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Positive | -7.2% | Strong Q3 2025 earnings with large SRE benefit and high EBITDA. |
| Aug 05 | Q2 2025 earnings | Positive | -11.1% | Strong Q2 2025 results and record Hawaii throughput with higher EBITDA. |
| May 06 | Q1 2025 earnings | Negative | +10.6% | Challenging Q1 2025 with net loss and sharply lower Adjusted EBITDA. |
| Feb 25 | FY 2024 results | Negative | -9.7% | Full-year 2024 net loss and weaker refining offset by retail/logistics strength. |
| Nov 04 | Q3 2024 earnings | Negative | -4.5% | Q3 2024 earnings decline with lower EBITDA despite record logistics results. |
Earnings releases often see sharp but inconsistent reactions, with more divergence than alignment between results and next-day moves.
Over the last five earnings reports from Nov 2024 through Nov 2025, Par Pacific has swung between losses and strong profitability. Q3 2025 and Q2 2025 showed robust net income and Adjusted EBITDA, helped by items like a small refinery exemption, yet shares sold off. Earlier, Q1 2025 and full-year 2024 highlighted refining challenges and losses but ongoing share repurchases and solid retail/logistics performance. This Q1 2026 report, returning to profitability with higher refining throughput, fits the continuing turnaround narrative.
Historical Comparison
Across the last 5 earnings releases, average next-day move was -4.36%, showing markets often reacted cautiously even when fundamentals improved.
Earnings history shows a shift from 2024 losses toward stronger 2025 profitability, aided by refining recovery, SRE benefits, and ongoing share repurchases.
Market Pulse Summary
This announcement highlights a turnaround from the Q1 2025 loss to Q1 2026 net income of $54.5M, with Adjusted EBITDA rising to $91.5M and record Hawaii throughput of 89.8 Mbpd. Liquidity of $937.7M and continued buybacks underscore balance sheet and capital-return priorities. Historically, earnings releases have produced volatile and sometimes counterintuitive price moves, so investors may watch refining margins, throughput trends, cash generation, and execution at the Hawaii renewable fuels facility in upcoming quarters.
Key Terms
adjusted net income financial
adjusted ebitda financial
throughput technical
adjusted gross margin financial
fifo financial
derivatives financial
ebitdax financial
restricted stock units financial
AI-generated analysis. Not financial advice.
HOUSTON, May 05, 2026 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific” or the “Company”) today reported its financial results for the quarter ended March 31, 2026.
- Net income attributable to Par Pacific stockholders of
$54.5 million , or$1.10 per diluted share - Adjusted Net Income attributable to Par Pacific stockholders of
$38.5 million , or$0.78 per diluted share - Adjusted EBITDA of
$91.5 million - Repurchased
$28.0 million of common stock at an average price of$37.96 per share - Record quarterly Hawaii refining throughput of 89.8 Mbpd
- Hawaii renewable fuels facility began commercial operations in April
The Company reported Net income (loss) attributable to Par Pacific stockholders of
“Our continued focus on reliability and commercial performance through market cycles enabled strong first quarter results,” said Will Monteleone, President and Chief Executive Officer. “During April, the Hawaii renewable fuels facility successfully achieved commercial operations, a major milestone for the project. Our outlook is strong and we are well positioned to capitalize on the elevated margin environment across our system.”
Refining
The Refining segment reported operating income of
Refining segment Adjusted EBITDA was
Hawaii
The Hawaii Index averaged
The Hawaii refinery’s Adjusted Gross Margin was
The net price lag impact reflects the Hawaii refinery’s contractual sales volumes that are structured on prior month and prior week average pricing. The first quarter 2026 net price lag impact was driven by rapidly rising refined product prices, resulting in adjusted gross margin lagging current period market conditions. We expect this net price lag impact to reverse during a declining refined product price environment.
Montana
The Montana Index averaged
The Montana refinery’s Adjusted Gross Margin was
Washington
The Washington Index averaged
The Washington refinery’s Adjusted Gross Margin was
Wyoming
The Wyoming Index averaged
The Wyoming refinery's Adjusted Gross Margin was
Retail
The Retail segment reported operating income of
Retail segment Adjusted EBITDA was
Logistics
The Logistics segment reported operating income of
Logistics segment Adjusted EBITDA was
Liquidity
Net cash used in operations totaled
At March 31, 2026, Par Pacific’s cash balance totaled
The Company repurchased
Laramie Energy
During the first quarter of 2026, Par Pacific recorded
Conference Call Information
A conference call is scheduled for Wednesday, May 6, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To access the call, please dial 1-833-974-2377 inside the U.S. or 1-412-317-5782 outside of the U.S. and ask for the Par Pacific call. Please dial in at least 10 minutes early to register. The webcast may be accessed online through the Company’s website at http://www.parpacific.com on the Investors page. A telephone replay will be available until May 20, 2026, and may be accessed by calling 1-855-669-9658 inside the U.S. or 1-412-317-0088 outside the U.S. and using the conference ID 8270791.
About Par Pacific
Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the “nomnom” convenience store chain in the Pacific Northwest. Par Pacific also owns
Forward-Looking Statements
This news release (and oral statements regarding the subject matter of this news release, including those made on the conference call and webcast announced herein) includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about: expected market conditions; anticipated free cash flows; anticipated refinery throughput; anticipated cost savings; anticipated capital expenditures, including major maintenance costs, and their effect on our financial and operating results, including earnings per share and free cash flow; anticipated retail sales volumes and on-island sales; the anticipated financial and operational results of Laramie Energy, LLC; the amount of our discounted net cash flows and the impact of our NOL carryforwards thereon; our ability to identify, acquire, and develop energy, related retailing, and infrastructure businesses; the timing and expected results of certain development projects, as well as the impact of such investments on our product mix and sales; the commercial and other benefits anticipated from the Hawaii renewable fuels joint venture; and other risks and uncertainties detailed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any other documents that we file with the Securities and Exchange Commission. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties, such as changes to our financial condition and liquidity; the volatility of crude oil and refined product prices; the Russia-Ukraine war, military conflicts in the Middle East, the political activity in Venezuela, Houthi related disruptions in the Red Sea, the ongoing military conflict with Iran and disruptions in the Strait of Hormuz and their potential impacts on global crude oil markets and our business; the impacts of tariffs; potential operating disruptions at our refineries resulting from unplanned maintenance events or natural disasters; environmental risks; changes in the labor market; and risks of political or regulatory changes. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should any of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events, or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.
Contact:
Ashimi Patel Vitter
VP, Investor Relations & Sustainability
(832) 916-3355
ir@parpacific.com
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 1,823,750 | $ | 1,745,036 | |||
| Operating expenses | |||||||
| Cost of revenues (excluding depreciation) | 1,558,504 | 1,559,360 | |||||
| Operating expense (excluding depreciation) | 142,518 | 144,154 | |||||
| Depreciation and amortization | 34,460 | 36,586 | |||||
| General and administrative expense (excluding depreciation) | 24,875 | 24,243 | |||||
| Equity earnings from refining and logistics investments | (5,829 | ) | (7,514 | ) | |||
| Acquisition and integration costs | 64 | — | |||||
| Par West redevelopment and other costs | 2,985 | 3,982 | |||||
| Other operating loss, net | 851 | 1 | |||||
| Total operating expenses | 1,758,428 | 1,760,812 | |||||
| Operating income (loss) | 65,322 | (15,776 | ) | ||||
| Other income (expense) | |||||||
| Interest expense and financing costs, net | (15,934 | ) | (21,848 | ) | |||
| Debt extinguishment and commitment costs | (62 | ) | (25 | ) | |||
| Other expense, net | (14 | ) | (371 | ) | |||
| Equity earnings from Laramie Energy, LLC | 9,179 | 726 | |||||
| Total other expense, net | (6,831 | ) | (21,518 | ) | |||
| Income (loss) before income taxes | 58,491 | (37,294 | ) | ||||
| Income tax benefit (expense) | (12,340 | ) | 6,894 | ||||
| Net income (loss) | 46,151 | (30,400 | ) | ||||
| Less: | |||||||
| Net loss attributable to noncontrolling interest | (8,299 | ) | — | ||||
| Net income (loss) attributable to Par Pacific stockholders | $ | 54,450 | $ | (30,400 | ) | ||
| Weighted-average shares outstanding | |||||||
| Basic | 48,401 | 53,756 | |||||
| Diluted | 49,632 | 53,756 | |||||
| Income (loss) per share | |||||||
| Basic | $ | 1.12 | $ | (0.57 | ) | ||
| Diluted | $ | 1.10 | $ | (0.57 | ) | ||
Balance Sheet Data
(Unaudited)
(in thousands)
| March 31, 2026 | December 31, 2025 | ||||||
| Balance Sheet Data | |||||||
| Cash and cash equivalents | $ | 172,168 | $ | 164,113 | |||
| Working capital (1) | 658,894 | 510,772 | |||||
| ABL Credit Facility | 321,000 | 175,000 | |||||
| Term debt (2) | 637,949 | 639,830 | |||||
| Total debt, including current portion | 947,618 | 802,870 | |||||
| Total stockholders’ equity | 1,515,829 | 1,511,540 | |||||
| (1) | Working capital is calculated as (i) total current assets excluding cash and cash equivalents less (ii) total current liabilities excluding current portion of long-term debt. Total current assets include inventories stated at the lower of cost or net realizable value. | |
| (2) | Term debt includes the Term Loan Credit Agreement and other long-term debt. | |
Operating Statistics
The following table summarizes key operational data:
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Total Refining Segment | |||||||
| Feedstocks Throughput (Mbpd) | 184.3 | 176.0 | |||||
| Refined product sales volume (Mbpd) | 188.8 | 184.6 | |||||
| Adjusted Gross Margin per bbl ($/throughput bbl) (1) | $ | 11.16 | $ | 6.59 | |||
| Production costs per bbl ($/throughput bbl) | 6.93 | 7.41 | |||||
| D&A per bbl ($/throughput bbl) | 1.53 | 1.67 | |||||
| Hawaii Refinery | |||||||
| Feedstocks Throughput (Mbpd) | 89.8 | 79.4 | |||||
| Yield (% of total throughput) | |||||||
| Gasoline and gasoline blendstocks | 28.7 | % | 25.8 | % | |||
| Distillates | 35.9 | % | 34.4 | % | |||
| Fuel oils | 30.5 | % | 32.4 | % | |||
| Other products | 2.0 | % | 4.0 | % | |||
| Total yield | 97.1 | % | 96.6 | % | |||
| Refined product sales volume (Mbpd) | 90.4 | 88.6 | |||||
| Adjusted Gross Margin per bbl ($/throughput bbl) (1) | $ | 13.10 | $ | 8.90 | |||
| Production costs per bbl ($/throughput bbl) | 4.67 | 4.81 | |||||
| D&A per bbl ($/throughput bbl) | 0.26 | 0.23 | |||||
| Montana Refinery | |||||||
| Feedstocks Throughput (Mbpd) | 56.9 | 51.7 | |||||
| Yield (% of total throughput) | |||||||
| Gasoline and gasoline blendstocks | 46.8 | % | 45.3 | % | |||
| Distillates | 35.5 | % | 32.5 | % | |||
| Asphalt | 9.3 | % | 11.2 | % | |||
| Other products | 2.9 | % | 3.2 | % | |||
| Total yield | 94.5 | % | 92.2 | % | |||
| Refined product sales volume (Mbpd) | 50.7 | 47.4 | |||||
| Adjusted Gross Margin per bbl ($/throughput bbl) (1) | $ | 6.93 | $ | 5.04 | |||
| Production costs per bbl ($/throughput bbl) | 9.05 | 10.56 | |||||
| D&A per bbl ($/throughput bbl) | 2.57 | 2.34 | |||||
| Washington Refinery | |||||||
| Feedstocks Throughput (Mbpd) | 23.0 | 38.6 | |||||
| Yield (% of total throughput) | |||||||
| Gasoline and gasoline blendstocks | 24.1 | % | 24.3 | % | |||
| Distillates | 33.0 | % | 35.9 | % | |||
| Asphalt | 17.9 | % | 15.4 | % | |||
| Other products | 21.5 | % | 20.5 | % | |||
| Total yield | 96.5 | % | 96.1 | % | |||
| Refined product sales volume (Mbpd) | 30.4 | 36.5 | |||||
| Adjusted Gross Margin per bbl ($/throughput bbl) (1) | $ | 8.17 | $ | 2.09 | |||
| Production costs per bbl ($/throughput bbl) | 7.53 | 4.16 | |||||
| D&A per bbl ($/throughput bbl) | 2.98 | 2.01 | |||||
| Wyoming Refinery | |||||||
| Feedstocks Throughput (Mbpd) | 14.6 | 6.3 | |||||
| Yield (% of total throughput) | |||||||
| Gasoline and gasoline blendstocks | 48.7 | % | 50.5 | % | |||
| Distillates | 44.0 | % | 45.7 | % | |||
| Fuel oils | 2.2 | % | 2.3 | % | |||
| Other products | 2.1 | % | 1.1 | % | |||
| Total yield | 97.0 | % | 99.6 | % | |||
| Refined product sales volume (Mbpd) | 17.3 | 12.1 | |||||
| Adjusted Gross Margin per bbl ($/throughput bbl) (1) | $ | 26.79 | $ | 19.83 | |||
| Production costs per bbl ($/throughput bbl) | 11.68 | 34.35 | |||||
| D&A per bbl ($/throughput bbl) | 3.02 | 12.25 | |||||
| Market Indices (average $ per barrel) | |||||||
| Hawaii Index | $ | 31.11 | $ | 8.13 | |||
| Montana Index | 4.84 | 7.07 | |||||
| Washington Index | 8.20 | 4.15 | |||||
| Wyoming Index | 19.30 | 20.31 | |||||
| Combined Index | 19.21 | 7.38 | |||||
| Market Cracks (average $ per barrel) | |||||||
| Singapore 3.1.2 Product Crack | $ | 36.01 | $ | 13.12 | |||
| Montana 6.3.2.1 Product Crack | 15.08 | 17.02 | |||||
| Washington 3.1.1.1 Product Crack | 16.55 | 12.01 | |||||
| Wyoming 2.1.1 Product Crack | 22.22 | 21.74 | |||||
| Crude Oil Prices (average $ per barrel) | |||||||
| Brent | $ | 78.38 | $ | 74.98 | |||
| WTI | 72.67 | 71.42 | |||||
| ANS (-) Brent | 2.91 | 2.18 | |||||
| Bakken Guernsey (-) WTI | 0.20 | (1.81 | ) | ||||
| Bakken Williston (-) WTI | (1.54 | ) | (3.08 | ) | |||
| WCS Hardisty (-) WTI | (13.75 | ) | (12.45 | ) | |||
| MSW (-) WTI | (3.06 | ) | (5.20 | ) | |||
| Syncrude (-) WTI | 0.62 | (1.96 | ) | ||||
| Brent M1-M3 | 3.89 | 1.22 | |||||
| Retail Segment | |||||||
| Retail sales volumes (thousands of gallons) | 28,064 | 29,431 | |||||
| (1) | We calculate Adjusted Gross Margin per barrel by dividing Adjusted Gross Margin by total refining throughput. Adjusted Gross Margin for our Washington refinery is determined under the last-in, first-out (“LIFO”) inventory costing method. Adjusted Gross Margin for our other refineries is determined under the first-in, first-out (“FIFO”) inventory costing method. Total Refining Segment Adjusted Gross Margin per barrel is presented net of intercompany profit in inventory of | |
Non-GAAP Performance Measures
Management uses certain financial measures and forecasts to evaluate our operating performance and allocate resources that are considered non-GAAP financial measures. The chief operating decision-maker (“CODM”) is the Chief Executive Officer (“CEO”), who uses certain non-GAAP financial measures and forecasts to allocate resources and evaluate our operating performance. These measures should not be considered in isolation or as substitutes or alternatives to their most directly comparable GAAP financial measures or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies since each company may define these terms differently.
We believe Adjusted Gross Margin (as defined below) provides useful information to investors because it eliminates the gross impact of volatile commodity prices and adjusts for certain non-cash items and timing differences created by our inventory financing agreements and lower of cost and net realizable value adjustments to demonstrate the earnings potential of the business before other fixed and variable costs, which are reported separately in Operating expense (excluding depreciation) and Depreciation and amortization. Operating expense includes certain shared costs such as finance, accounting, tax, human resources, information technology, and legal costs that are not directly attributable to specific operating segments. The criteria used to determine the allocation of these expenses generally reflect the time and resources required to provide the applicable service to other internal stakeholders. Remaining expenses are included in the reconciliation of reportable segment Adjusted EBITDA to consolidated pre-tax income (loss) as unallocated corporate general and administrative expenses.
Management, including the CODM, uses Adjusted Gross Margin per barrel to evaluate operating performance and compare profitability to other companies in the industry and to industry benchmarks. We believe Adjusted Net Income (Loss) attributable to Par Pacific stockholders, Adjusted EBITDA (as defined below) and Adjusted EBITDA by segment (as defined below) are useful supplemental financial measures that allow management and investors to assess the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis, the ability of our assets to generate cash to pay interest on our indebtedness, and our operating performance and return on invested capital as compared to other companies without regard to financing methods and capital structure.
Beginning with the financial results reported for the fourth quarter of 2025, Adjusted Net Income (Loss) attributable to Par Pacific stockholders excludes the portion of non-GAAP adjustments associated with the noncontrolling interest in our joint venture established on October 21, 2025. Adjusted Net Income (Loss) attributable to Par Pacific stockholders and Adjusted EBITDA by segment also excludes other operating gains and losses (which primarily includes the impacts of the noncash remeasurement of our environmental liabilities). This modification improves comparability between periods by excluding non-cash gains and losses that do not reflect ongoing underlying business operations.
Beginning with the financial results reported for the fourth quarter of 2025, Adjusted EBITDA includes the Adjusted Net Income (Loss) attributable to noncontrolling interests associated with our joint venture established on October 21, 2025.
Adjusted Gross Margin
Adjusted Gross Margin is defined as Operating income (loss) excluding:
- operating expense (excluding depreciation);
- depreciation and amortization (“D&A”);
- Par’s portion of interest, taxes, and D&A expense from refining and logistics investments;
- impairment expense;
- other operating (gain) loss, net (which primarily includes the impacts of the noncash remeasurement of our environmental liabilities);
- Par's portion of accounting policy differences from refining and logistics investments;
- inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
- Environmental obligation mark-to-market adjustment (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington Climate Commitment Act ("Washington CCA") and Clean Fuel Standard); and
- unrealized loss (gain) on derivatives.
The following tables present a reconciliation of Adjusted Gross Margin to the most directly comparable GAAP financial measure, operating income (loss), on a historical basis, for selected segments, for the periods indicated (in thousands):
| Three months ended March 31, 2026 | Refining | Logistics | Retail | |||||||||
| Operating Income | $ | 56,316 | $ | 24,520 | $ | 13,005 | ||||||
| Operating expense (excluding depreciation) | 115,920 | 5,892 | 20,706 | |||||||||
| Depreciation, depletion, and amortization | 25,421 | 5,800 | 2,435 | |||||||||
| Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments | 927 | 1,082 | — | |||||||||
| Inventory valuation adjustment | (61,226 | ) | — | — | ||||||||
| Environmental obligation mark-to-market adjustments | (29,508 | ) | — | — | ||||||||
| Unrealized loss on derivatives | 76,911 | — | — | |||||||||
| Par's portion of accounting policy differences from refining and logistics investments | (412 | ) | — | — | ||||||||
| Other operating loss, net | 726 | 125 | — | |||||||||
| Adjusted Gross Margin (1) | $ | 185,075 | $ | 37,419 | $ | 36,146 | ||||||
| Three months ended March 31, 2025 | Refining | Logistics | Retail | |||||||||
| Operating Income (Loss) | $ | (24,721 | ) | $ | 21,889 | $ | 15,961 | |||||
| Operating expense (excluding depreciation) | 118,620 | 4,365 | 21,169 | |||||||||
| Depreciation, depletion, and amortization | 26,397 | 6,819 | 2,662 | |||||||||
| Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments | 1,152 | 966 | — | |||||||||
| Inventory valuation adjustment | (11,687 | ) | — | — | ||||||||
| Environmental obligation mark-to-market adjustments | 4,954 | — | — | |||||||||
| Unrealized gain on derivatives | (9,442 | ) | — | — | ||||||||
| Par's portion of accounting policy differences from refining and logistics investments | (945 | ) | — | — | ||||||||
| Other operating loss, net | — | — | 1 | |||||||||
| Adjusted Gross Margin (1) | $ | 104,328 | $ | 34,039 | $ | 39,793 | ||||||
| (1) | For the three months ended March 31, 2026 and 2025, there was no impairment expense in Operating income. | |
Adjusted Net Income (Loss) Attributable to Par Pacific Stockholders and Adjusted EBITDA
Adjusted Net Income (Loss) attributable to Par Pacific stockholders is defined as Net income (loss) attributable to Par Pacific stockholders excluding:
- inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
- Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard);
- unrealized (gain) loss on derivatives;
- acquisition and integration costs;
- redevelopment and other costs related to Par West;
- debt extinguishment and commitment costs;
- increase in (release of) tax valuation allowance and other deferred tax items;
- changes in the value of contingent consideration and common stock warrants;
- severance costs and other non-operating expense (income);
- impairment expense;
- impairment expense associated with our investment in Laramie Energy;
- Par’s share of equity (earnings) losses from Laramie Energy, LLC, excluding cash distributions;
- Par's portion of accounting policy differences from refining and logistics investments;
- other operating (gain) loss, net (which primarily includes the impacts of the noncash remeasurement of our environmental liabilities); and
- noncontrolling interest impact of non GAAP adjustments.
Adjusted EBITDA is defined as Adjusted Net Income (Loss) attributable to Par Pacific stockholders plus Adjusted Net Loss attributable to noncontrolling interests excluding:
- D&A;
- interest expense and financing costs, net, excluding unrealized interest rate derivative loss (gain);
- cash distributions from Laramie Energy, LLC to Par;
- Par's portion of interest, taxes, and D&A expense from refining and logistics investments; and
- income tax expense (benefit) excluding the increase in (release of) tax valuation allowance.
The following table presents a reconciliation of Adjusted Net Income (Loss) attributable to Par Pacific stockholders and Adjusted EBITDA to the most directly comparable GAAP financial measure, Net income (loss) attributable to Par Pacific stockholders, on a historical basis for the periods indicated (in thousands):
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net Income (loss) attributable to Par Pacific stockholders | $ | 54,450 | $ | (30,400 | ) | ||
| Inventory valuation adjustment | (61,226 | ) | (11,687 | ) | |||
| Environmental obligation mark-to-market adjustments | (29,508 | ) | 4,954 | ||||
| Unrealized loss (gain) on derivatives | 76,879 | (9,357 | ) | ||||
| Acquisition and integration costs | 64 | — | |||||
| Par West redevelopment and other costs | 2,985 | 3,982 | |||||
| Debt extinguishment and commitment costs | 62 | 25 | |||||
| Changes in valuation allowance and other deferred tax items (1) | 10,628 | (6,894 | ) | ||||
| Severance costs and other non-operating expense (2) | 53 | 726 | |||||
| Equity earnings from Laramie Energy, LLC, excluding cash distributions | (9,179 | ) | (726 | ) | |||
| Par's portion of accounting policy differences from refining and logistics investments | (412 | ) | (945 | ) | |||
| Other operating loss, net | 851 | 1 | |||||
| Noncontrolling interest impact of non-GAAP adjustments | (7,105 | ) | — | ||||
| Adjusted Net Income (Loss) attributable to Par Pacific stockholders (3) | 38,542 | (50,321 | ) | ||||
| Adjusted Net Loss attributable to noncontrolling interests (4) | (1,194 | ) | — | ||||
| Depreciation, depletion, and amortization | 34,460 | 36,586 | |||||
| Interest expense and financing costs, net, excluding unrealized interest rate derivative loss (gain) | 15,966 | 21,763 | |||||
| Par's portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments | 2,009 | 2,118 | |||||
| Income tax expense | 1,712 | — | |||||
| Adjusted EBITDA (3) | $ | 91,495 | $ | 10,146 | |||
| (1) | For the three months ended March 31, 2026 and 2025, we recognized a non-cash deferred tax expense of | |
| (2) | For the three months ended March 31, 2025, we incurred | |
| (3) | For the three months ended March 31, 2026 and 2025, there was no change in value of contingent consideration, change in value of common stock warrants, impairment expense, impairments associated with our investment in Laramie Energy, cash distributions from Laramie Energy, or our share of Laramie Energy’s asset impairment losses in excess of our basis difference. Please read the Non-GAAP Performance Measures discussion above for information regarding changes to the components of Adjusted Net Income (Loss) attributable to Par Pacific stockholders and Adjusted EBITDA made during the reporting periods. | |
| (4) | Represents the amount necessary to reconcile Adjusted Net Income (Loss) attributable to Par Pacific stockholders to consolidated adjusted net income (loss) used in calculating Adjusted EBITDA. The amount equals net income (loss) attributable to noncontrolling interest minus the noncontrolling interest impact of non-GAAP adjustments. | |
The following table sets forth the computation of basic and diluted Adjusted Net Income (Loss) attributable to Par Pacific stockholders per share (in thousands, except per share amounts):
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Adjusted Net Income (Loss) attributable to Par Pacific stockholders | $ | 38,542 | $ | (50,321 | ) | ||
| Numerator for diluted income (loss) per common share | $ | 38,542 | $ | (50,321 | ) | ||
| Basic weighted-average common shares outstanding | 48,401 | 53,756 | |||||
| Add dilutive effects of common stock equivalents (1) | 1,231 | — | |||||
| Diluted weighted-average common shares outstanding | 49,632 | 53,756 | |||||
| Basic Adjusted Net Income (Loss) per common share | $ | 0.80 | $ | (0.94 | ) | ||
| Diluted Adjusted Net Income (Loss) per common share | $ | 0.78 | $ | (0.94 | ) | ||
| (1) | Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per share amounts. We have utilized the basic shares outstanding to calculate both basic and diluted Adjusted Net Loss per common share for the three months ended March 31, 2025. | |
Adjusted EBITDA by Segment
Adjusted EBITDA by segment is defined as Operating income (loss) excluding:
- D&A;
- inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
- Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard);
- unrealized (gain) loss on derivatives;
- acquisition and integration costs;
- redevelopment and other costs related to Par West;
- severance costs and other non-operating expense (income);
- other operating loss (gain), net (which includes the impacts of the noncash remeasurement of our environmental liabilities);
- impairment expense;
- Par's portion of interest, taxes, and D&A expense from refining and logistics investments; and
- Par's portion of accounting policy differences from refining and logistics investments.
Adjusted EBITDA by segment also includes Gain on curtailment of pension obligation and Other income (loss), net, which are presented below operating income (loss) on our condensed consolidated statements of operations.
The following table presents a reconciliation of Adjusted EBITDA by segment to the most directly comparable GAAP financial measure, operating income (loss) by segment, on a historical basis, for selected segments, for the periods indicated (in thousands):
| Three Months Ended March 31, 2026 | Refining | Logistics | Retail | Corporate and Other | ||||||||||||
| Operating income (loss) by segment | $ | 56,316 | $ | 24,520 | $ | 13,005 | $ | (28,519 | ) | |||||||
| Depreciation, depletion and amortization | 25,421 | 5,800 | 2,435 | 804 | ||||||||||||
| Inventory valuation adjustment | (61,226 | ) | — | — | — | |||||||||||
| Environmental obligation mark-to-market adjustments | (29,508 | ) | — | — | — | |||||||||||
| Unrealized loss on commodity derivatives | 76,911 | — | — | — | ||||||||||||
| Acquisition and integration costs | — | — | — | 64 | ||||||||||||
| Par West redevelopment and other costs | — | — | — | 2,985 | ||||||||||||
| Severance costs and other non-operating expense | — | — | 53 | — | ||||||||||||
| Par's portion of accounting policy differences from refining and logistics investments | (412 | ) | — | — | — | |||||||||||
| Other operating loss, net | 726 | 125 | — | — | ||||||||||||
| Par's portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments | 927 | 1,082 | — | — | ||||||||||||
| Other loss, net | — | — | — | (14 | ) | |||||||||||
| Adjusted EBITDA (1) | $ | 69,155 | $ | 31,527 | $ | 15,493 | $ | (24,680 | ) | |||||||
| Three Months Ended March 31, 2025 | Refining | Logistics | Retail | Corporate and Other | ||||||||||||
| Operating income (loss) by segment | $ | (24,721 | ) | $ | 21,889 | $ | 15,961 | $ | (28,905 | ) | ||||||
| Depreciation, depletion and amortization | 26,397 | 6,819 | 2,662 | 708 | ||||||||||||
| Inventory valuation adjustment | (11,687 | ) | — | — | — | |||||||||||
| Environmental obligation mark-to-market adjustments | 4,954 | — | — | — | ||||||||||||
| Unrealized gain on derivatives | (9,442 | ) | — | — | — | |||||||||||
| Acquisition and integration costs | — | — | — | — | ||||||||||||
| Par West redevelopment and other costs | — | — | — | 3,982 | ||||||||||||
| Severance costs and other non-operating expense | — | — | — | 726 | ||||||||||||
| Par's portion of accounting policy differences from refining and logistics investments | (945 | ) | — | — | — | |||||||||||
| Other operating loss, net | — | — | 1 | — | ||||||||||||
| Par's portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments | 1,152 | 966 | — | — | ||||||||||||
| Other loss, net | — | — | — | (371 | ) | |||||||||||
| Adjusted EBITDA (1) | $ | (14,292 | ) | $ | 29,674 | $ | 18,624 | $ | (23,860 | ) | ||||||
| (1) | For the three months ended March 31, 2026 and 2025, there was no change in value of contingent consideration, change in value of common stock warrants, impairment expense, impairments associated with our investment in Laramie Energy, cash distributions from Laramie Energy, or our share of Laramie Energy’s asset impairment losses in excess of our basis difference. | |
Laramie Energy Adjusted EBITDAX
Adjusted EBITDAX is defined as net income (loss) excluding commodity derivative (income) loss, gain (loss) on settled derivative instruments, interest expense (income) and loan fees, gain on extinguishment of debt, non-cash preferred dividend, depreciation, depletion, amortization, and accretion, bonus accrual, equity-based compensation expense, phantom units, expired acreage (non-cash), and other non-operating expenses. We believe Adjusted EBITDAX is a useful supplemental financial measure to evaluate the economic and operational performance of exploration and production companies such as Laramie Energy.
The following table presents a reconciliation of Laramie Energy’s Adjusted EBITDAX to the most directly comparable GAAP financial measure, net income (loss) for the periods indicated (in thousands):
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net income (loss) | $ | 16,899 | $ | (1,066 | ) | ||
| Commodity derivative (income) loss | (14,727 | ) | 9,857 | ||||
| Gain (loss) on settled derivative instruments | 2,690 | (5,698 | ) | ||||
| Interest expense and loan fees | 4,638 | 4,611 | |||||
| Depreciation, depletion, amortization, and accretion | 9,213 | 7,799 | |||||
| Phantom units | 737 | (1,514 | ) | ||||
| Expired acreage (non-cash) | 448 | 96 | |||||
| Total Adjusted EBITDAX (1) | $ | 19,898 | $ | 14,085 | |||
| (1) | For the three months ended March 31, 2026 and 2025, there was no gain on extinguishment of debt, non-cash preferred dividend, bonus accrual, equity-based compensation expense, or other non-operating expenses. | |
