Par Pacific Holdings posts second quarter results

Par Pacific Holdings, Inc. has reported its financial results for the second quarter ended 30 June 2016.

2Q16 financial highlights

• Net loss of US$13.1 million, or US$(0.32) per diluted share.
• Adjusted net loss of US$35.0 million, or US$(0.85) per diluted share.
• Adjusted EBITDA was a loss of US$6.8 million.

Operating and strategic updates

• Acquired 18 000 bpd Wyoming oil refinery and related logistics assets for US$271.4 million.
• Hawaii refinery is in startup mode after a major four-week turnaround.
• Laramie Energy provided internal reserve estimates as of 30 June 2016 with proved reserves of 529 billion ft³ equivalent based on SEC pricing and 1.1 trillion ft³ equivalent based on current market pricing.

"While our financial performance this quarter was overwhelmingly impacted by poor global refining cracks, we achieved a number of our objectives this spring and summer. With the Wyoming Refining Company acquisition and the successful turnaround of our Hawaii refinery, we own two refineries with no planned downtime in the near future. We also began a conversion of many of our Hawaii retail locations to a new local brand Hele, which we believe will allow us to grow our retail operations. The WRC acquisition will also result in a material increase in our Logistics operations with the additional crude oil and refined product pipeline networks and related terminals and storage. Finally, we are very pleased with the progress made by the Laramie management team in capitalising on their acquisition of additional Piceance basin operations and acreage. These actions lay the foundation for a successful and profitable enterprise," stated William Pate, Par Pacific's President and Chief Executive Officer.

Par Pacific reported a net loss of US$13.1 million, or US$(0.32) per diluted share, for the second quarter ended 30 June 2016, compared to net income of US$11.7 million, or US$0.31 per diluted share, for the same quarter in 2015. The company's reported results in the second quarter of 2016 benefited from several items, including an US$8.4 million unrealised gain on future commodities contracts, a US$1.2 million adjustment in the value of common stock warrants and a US$1.1 million adjustment in the valuation of inventory, partially offset by US$0.8 million of acquisition and integration expense. 2Q16 adjusted EBITDA was a loss of US$6.8 million compared to adjusted EBITDA of US$30.8 million in the second quarter of 2015. A reconciliation of reported non-GAAP financial measures to their most directly comparable GAAP financial measures can be found in the tables accompanying this news release.

The amounts presented are for Laramie Energy, LLC as a whole. Par Pacific owns 42.3% of Laramie Energy, LLC. Current market pricing is based on NYMEX strip pricing as of 30 June 2016 held flat after five years.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/09082016/par-pacific-holdings-posts-second-quarter-results-3883/