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DATE

Wednesday, Aug. 5, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Senior Vice President, General Counsel and Secretary - Jeffrey R. Hollis
• President and Chief Executive Officer - William Monteleone
• Executive Vice President of Refining and Logistics - Richard Creamer
• Chief Financial Officer - Shawn Flores

TAKEAWAYS

• Adjusted EBITDA -- $571 million in the second quarter, representing an increase from $91.5 million in the first quarter of 2026.
• Adjusted Net Income -- $499 million, or $10.10 per share, reflecting elevated refining capture rates across the system.
• Combined Market Index -- $33 per barrel for the quarter, exceeding the 2025 average of $12.40 per barrel.
• Refining Segment Adjusted EBITDA -- $552 million for the second quarter, compared to $69 million in the first quarter of 2026.
• Hawaii Index and Capture -- $46 per barrel with a 124% margin capture rate, which included a $77 million net price lag benefit.
• Washington Throughput -- 41,200 barrels per day, setting a quarterly record for the facility.
• Wyoming Throughput and Costs -- 14,000 barrels per day with production costs of $15.28 per barrel, reflecting the impact of an April outage.
• Montana Throughput and Costs -- 53,000 barrels per day at $10.16 per barrel, following the completion of a scheduled outage in April.
• Hawaii Production Costs -- $6.43 per barrel for the second quarter, as the refinery managed end-of-cycle conditions.
• Debt Reduction -- Term debt was reduced by over 20% and ABL borrowings decreased by $78 million during the period.
• Net Debt Reduction -- Total net debt decreased by over $220 million during the second quarter.
• Total Liquidity -- $1.4 billion as of June 30, 2026, supported by an inaugural $500 million senior unsecured notes offering.
• Hawaii Renewables Throughput -- 3,000 barrels per day achieved in June, prior to the start of the plant-wide maintenance turnaround.
• Retail EBITDA and Sales -- $17 million in Adjusted EBITDA, with in-store sales increasing by 1% while fuel volumes declined 0.8%.
• Cash Flow from Operations -- $614 million, before accounting for working capital outflows of $312 million and turnaround costs.
• Capital Expenditures -- $59 million for the second quarter, including deferred turnaround costs.
• Q3 Throughput Guidance -- 182,000 barrels per day at the midpoint, including 59,100 barrels per day of conventional throughput in Hawaii.
• NOL Tax Position -- Management expects to utilize a substantial portion of its $700 million net operating loss balance during 2026.
• Montana Coker Maintenance -- Estimated to increase operating expenses by $6 million to $8 million during the third quarter.
• Hawaii Crude Differential Guidance -- $11.50 to $13.50 per barrel for the third quarter, driven by higher freight costs.
• Mainland RVO Compliance -- Approximately 140 million RIN units for the 2025 period, with a full small refinery exemption potentially valued at $300 million.
• Stock Repurchase Activity -- $48 million of common stock repurchased year to date through the end of the second quarter.
• July Consolidated Index -- $31.34 per barrel, approximately $1.60 per barrel below the average index for the second quarter.
• Singapore 3-1-2 Crack Spread -- Averaged $50 per barrel during the quarter, supporting performance in the Hawaii segment.

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RISKS

• Flores stated, "We are expecting a more concentrated impact of the turnaround activities in Q3... would expect capture to likely come in below the sort of typical normalized guidance of 100% to 110% because of those factors," regarding the financial performance of the Hawaii refinery.
• Monteleone noted, "Despite pressure on fuel margins and a higher price environment, the merchandising and food programs continue to advance," acknowledging challenges in the retail fuel market.

SUMMARY

Management reported that Par Pacific Holdings, Inc. (PARR +5.30%) leveraged high refining indices and record throughput at its Washington facility to reduce debt and improve liquidity. The company completed its inaugural senior unsecured notes issuance, utilizing proceeds to reduce term debt and ABL borrowings by over $220 million. While the Hawaii refinery underwent a major turnaround that is now substantially complete, the Hawaii Renewables business established an operational pathway for renewable diesel sales. Strategic focus remains on disciplined capital allocation, including internal growth projects targeting unlevered returns in the low 20% range and opportunistic share repurchases.

• CFO Flores projected that the company will transition to a "more typical federal tax position beginning in 2027" as it exhausts its net operating loss carryforwards.
• CEO Monteleone stated the Hawaii renewable diesel sales established an "operational pathway from production to sales" during the establishing phase of the commercial ramp.
• Richard Creamer reported that the Washington refinery achieved a new record quarterly production rate of 41,200 barrels per day or 98.1% utilization.
• Management estimated that a full small refinery exemption for its three refineries would be valued at approximately $300 million at current RIN prices.
• CFO Flores indicated that roughly half of the $312 million working capital outflow in the second quarter was directly related to building refined product inventories in Hawaii.
• CEO Monteleone attributed sales growth in the retail segment to the advancing merchandising and food programs despite pressure on fuel margins.

INDUSTRY GLOSSARY

• ABL: Asset-Based Lending, a type of business loan secured by assets such as inventory or accounts receivable.
• Backwardation: A market condition where the current price of an asset is higher than prices trading in future delivery months.
• Crack Spread: The pricing difference between a barrel of crude oil and the petroleum products refined from it, representing the gross margin of a refinery.
• FIFO: First-In, First-Out, an inventory valuation method where the first items placed in inventory are the first ones sold.
• NOL: Net Operating Loss, a tax credit created when a company's allowable tax deductions exceed its taxable income, used to offset future tax liabilities.
• RIN: Renewable Identification Number, a serial number assigned to a batch of biofuel for tracking compliance with federal standards.
• RVO: Renewable Volume Obligation, the specific amount of renewable fuel a refiner is required to blend into their total fuel production.
• Singapore 3-1-2: A refining margin index representing the crack spread for three barrels of crude versus one barrel of gasoline and two barrels of distillate.

Full Conference Call Transcript

Operator: Good day, and welcome to the Par Pacific Second Quarter 26 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Jeffrey R. Hollis, Senior Vice President, General Counsel and Secretary. Please go ahead.

Jeffrey R. Hollis: Thank you, operator. Welcome to Par Pacific's earnings conference call. Joining me today are William Monteleone, President and CEO Richard Creamer, EVP of Refining and Logistics and Shawn Flores, CFO. Before we begin, note that our comments today may include forward looking statements. Any forward looking statements are subject to change. They are not guarantees of future performance or events. 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 additional information.

I will now turn the call over to our President and CEO, William Monteleone.

William Monteleone: Thank you, Jeffrey, and good morning, everyone. We are pleased to report strong second quarter financial results driven by excellent operational and commercial execution. Amidst extreme volatility, each of our business units executed crisply, used the full commercial flexibility of our asset base to capture market conditions. System-throughput ran at elevated levels through the peak margin window. And our commercial team optimized crude sourcing and product placement. Generating excellent capture rates. Refined product cracks remained materially above historical norms for the quarter. Our combined market index averaged approximately $33 per barrel, well above the 2025 average of $12.40 per barrel and exceeding the second quarter of 2022 when the Russia Ukraine conflict was intensifying.

Reduced Persian Gulf and Russian origin refined product exports, Asian refiners running conservatively, to preserve crude supply chain duration, and protectionist policies restricting free trade drove these favorable market conditions. Looking forward, global refined product inventories remain tight, and the structural factors supporting margins remain. Turning to retail, same-store fuel volumes declined by 0.8% while in store sales increased by 1% compared to the second quarter of 25. Despite pressure on fuel margins and a higher price environment, the merchandising and food programs continue to advance strengthening the underlying earnings power of the segment. On the strategic front, our Hawaii Renewables business made steady progress.

Renewable diesel production ramped through the quarter, with June throughput reaching approximately 3 thousand barrels per day before we commence the Hawaii plant wide turnaround. In addition, we completed first commercial renewable diesel sales during the quarter, Volumes were small and reflect the early stage nature of the commercial ramp. But they established the operational pathway from production to sales. On the capital allocation front, we meaningfully strengthened the sheet during the quarter, reducing our term debt balance by over 20% via the inaugural senior unsecured notes issuance. We ended the quarter with total liquidity of approximately $1.4 billion, placed our balance sheet in a very strong position to pursue growth and continue to allocate capital thoughtfully through cycles.

In closing, our through cycle discipline on operations commercial positioning and capital allocation is what allowed us to convert an exceptional market environment into a durably stronger balance sheet and strong per share earnings. We remain focused on maintaining that discipline as market conditions evolve. With that, I will hand the call to Richard, who will walk through our refining and logistics results.

Richard Creamer: Thank you, Will. I want to begin by congratulating the Wyoming and Montana teams for the safe and efficient completion of their scheduled outages in April. In addition, the Tacoma team achieved a new record quarterly production rate of 41.2 thousand barrels per day or 98.1% utilization through the second quarter. In Hawaii, the Q2 throughput was 73.2 thousand barrels per day and production costs were $6.43 per barrel. The lower production versus plan was the result of the refinery experiencing end of cycle conditions. The team delivered on all customer fuel requirements despite challenges associated with the ongoing conflict in The Middle East.

The turnaround in Hawaii began in late June, and I am pleased to report that the team executed the turnaround safely and cleanly. While also delivering cost and schedules near-target. At this point, the Hawaii turnaround is substantially complete and major units have been safely restarted. As I stated, Washington throughput set a new quarterly record 41.2 thousand barrels per day and production costs were $4.21 per barrel. Capturing market conditions following the Q1 planned outage. Shifting to Wyoming, throughput was 14 thousand barrels per day and production costs were $15.28 per barrel reflecting the April outage downtime and costs. Following the outage, the refinery shifted to routine supported by strong seasonal demand.

Finally, in Montana, second quarter throughput was 53 thousand barrels per day and production costs were $10.16 per barrel. The team executed the April crude outage safely on time and on budget. In May and June, 62 thousand barrels per day at $7.56 per barrel. Looking ahead to the third quarter, we expect Hawaii conventional throughput between 59.1 thousand barrels per day and renewable throughput between 1.5 thousand and 2,000 barrels per day reflecting the turnaround event in July through early August. In the Mainland, Washington is expected between 40 thousand and 42 thousand barrels per day Wyoming between 17 and 20 thousand and Montana between 56 thousand and 61 thousand.

The Montana coker was down in July for routine maintenance and is expected to return to service by mid August. From today's date, there are no significant planned downtime for the balance of the year. The Q3 midpoint throughput guidance is 182 thousand barrels per day. And now I will turn the call over to Sean to cover our financial results.

Shawn Flores: Thank you, Richard. Second quarter adjusted EBITDA was $571 million and adjusted net income was $499 million or $10.10 per share. Our refining segment reported adjusted EBITDA of $552 million in the second quarter compared to $69 million in the first quarter. Reflecting a sharp step up in market conditions driven by the disruptions in crude and refined product supply. Our combined refining index averaged approximately $33 per barrel an increase of roughly $14 per barrel compared to the first quarter. System wide refining capture was 125%, or 112% on a normalized basis after adjusting for Hawaii price lag and Wyoming FIFO impacts.

Starting in Hawaii, the Singapore 3-1-2 average approximately $50 per barrel and our landed crude differential was $3.93 resulting in a Hawaii index of approximately $46 per barrel. Hawaii capture was 124% including a net price lag benefit of approximately $77 million or $11.49 per barrel. Normalized for the price lag impact, Hawaii capture was 99%. In Montana, the second quarter index averaged $25.76 per barrel with margin capture of 144%. Capture was well above our target range driven by favorable clean product to ask asphalt sales mix, and refined product inventory drawdowns that sustained volumes during the April outage. In Wyoming, the second quarter index averaged $28.73 per barrel.

Margin capture was 118% including the benefit of refined product inventory draws during the April outage, partially offset by a $3 million FIFO headwind from declining crude oil prices. In Washington, our index averaged $20.27 per barrel Margin capture was 100% supported by continued jet to diesel strength on the West Coast. Turning to the logistics segment, adjusted EBITDA was $30 million in the second quarter, compared to $32 million in the first quarter, reflecting reduced crude imports ahead of the Hawaii turnaround.

In the Retail segment, adjusted EBITDA was $17 million compared to $15 million in the first quarter, The sequential improvement was driven by a partial recovery in fuel margins and continued growth in foodservice sales in both regions. Moving to cash flow, second quarter cash from operations totaled $614 million excluding working capital outflows of $312 million and deferred turnaround costs of $19 million. The working capital outflows were primarily driven by building refined product inventories ahead of the Hawaii turnaround and higher commodity prices, which increased the value of hydrocarbon inventories. We expect a substantial portion of these working capital outflows to reverse as inventory levels normalize after the Hawaii turnaround and commodity prices stabilize.

Second quarter capital expenditures, including deferred turnaround costs, totaled approximately $59 million During the quarter, we continued to benefit from our excess RIN inventories, associated with the prior period small refinery exemptions. As a reminder, our adjusted EBITDA and adjusted net income reflect full RIN expense at current period RIN prices. Which does not reflect the benefit of our excess RIN position. Our GAAP results by contrast include approximately $35 million gain in the quarter representing the difference between current RIN prices and the book value of our RIN assets on our balance sheet.

Shifting to the balance sheet, we completed a $500 million offering of senior unsecured notes reducing gross term debt by more than $130 million during the quarter. We also reduced ABL borrowings by $78 million resulting in a total net debt reduction of over $220 million. Given the heightened market volatility during the period, we moderated our opportunistic share repurchase activity in favor of strengthening the balance sheet through debt reduction. Year to date, through the second quarter, we have repurchased approximately $48 million of common stock including cash settled options. As of June 30, total liquidity was approximately 1.4 billion and our cash balance was $185 million.

Looking to the third quarter, our July consolidated refining index was $31.34 per barrel or approximately $1.60 below the Q2 average. In Hawaii, the financial impact of the refinery turnaround will be concentrated in the third quarter. Increased refined product imports, are expected to hold the capture below our typical guidance range. Our third quarter Hawaii crude differential is expected to land between $11.50 and 13.50 per barrel reflecting higher freight costs and steeper backwardation. Across our mainland system, distillate margins have remained firm and seasonal demand has been strong quarter to date.

As Richard mentioned, Montana will complete its annual coker maintenance during the third quarter resulting in roughly $6 million to $8 million of incremental OpEx and a heavier asphalt sales mix. In renewables, we expect a gradual ramp in third party sales volumes and earnings contribution as we restart the units following the Hawaii turnaround. Overall, the second quarter demonstrated the significant earnings power of our business in a favorable market. Our strong balance sheet and liquidity position will provide financial flexibility to invest in strategic growth opportunities while maintaining an opportunistic approach to share repurchases. This concludes our prepared remarks. Sarah, we will turn it back to you for the Q&A.

Operator: Thank you. Please press 1 on your telephone keypad. If you would like to withdraw your question, simply press 1 again. Please ensure that your phone is not on mute when called upon. Thank you. First question comes from Matthew Blair with TPH. Your line is open.

Matthew Blair: Thank you, and good morning, and congrats on the strong results. I was hoping you could talk just a little bit more about the moving parts in Hawaii for the third quarter. So you mentioned with the turnaround in July, the capture would likely be below typical guidance. I think you also mentioned that you have been building inventory. So is it reasonable to assume that you are monetizing inventory throughout July to help offset the impact of the turnaround? Also, is there any increase in OpEx from the turnaround? And then finally, should we expect a timing headwind just based on Q3-- sorry, quarter to date prices so far in Q3 in Hawaii Hey Matthew.

Shawn Flores: it is Shawn. I will take your last 1 first. I think it is too early to call the sort of price lag impacts. it is really, as you know, the last month of each quarter and you look at sort of Singapore distillate prices. So I think just watch September Singapore pricing relative to June once that month prices out. And then I think on capture, I sort of referred to it in the prepared remarks. We are expecting a more concentrated impact of the turnaround activities in Q3. 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 the sort of typical normalized guidance of 100% to 110% because of those factors. I think on OpEx, I would say a marginal increase. Most of the expenditures incurred during the turnaround are capitalized.

William Monteleone: Just lower total credit throughputs, Matthew. Right, as you think about as the plant comes back online, you will not be at full rates for the entire quarter.

Matthew Blair: Okay. Sounds good. And then Will, could you share any insight on the Singapore market? You know, we have seen China refinery utilization pick up a little bit over the past month? It still is relatively low. Reported that China has been increasing product. Have you seen any of that? And yeah, I mean, the inventory picture in Singapore is still at new 5-year highs. But what are the moving parts you are seeing in the Singapore market?

William Monteleone: Sure. Sure. Yeah, Matthew. I think, you know, we continue to watch Chinese behavior closely. Obviously, it moves month to month I would say despite you know, I think some announcements and potentially some increases in crude throughputs, we have not seen any material change in exports of refined product as we look in the July and even forward planning that we have seen at least through August. So again, I think, as you know, the data out of China is opaque and the best thing to do is to watch the vessel movements And I think what we are seeing is limited increases in waterborne refined exports at this point in time.

And again, I think just as a reminder, you know, we followed the Chinese policy over, you know, the last decade. And there is been a focus on internalizing their capabilities for many years. And again, I think you are seeing that behavior play out and to this shock. And so again, I think that internal focus is probably the primary objective. And again, I think that is something to continue to watch over the course of years rather than months. But certainly the behavior that we are seeing here.

Matthew Blair: Great. Thanks for your comments.

Operator: Your next question comes from Alexa Petrick with Goldman Sachs. Your line is open.

Alexa Petrick: Hey, good morning team and thanks for taking our question. Are you able to give us any more color on the Hawaii turnaround? Sounds like from an operational perspective, it is tracking. I mean, any surprises, upside, downside? And then on the substantially complete piece, what specific units are left? And any thoughts on time line?

Richard Creamer: Sure, Alexa. This is Richard. The turnaround was scheduled for 30 to 45 days. 30 being the return of some of the early equipment. And we have followed pretty well on track with that with the crude unit and reforming unit to produce gasoline. On that 30-day window. Out on the outer edge of that, the 45-day window is really centered around the hydrocracker. And the mechanical work is completed on it, and it is in the middle of catalyst activation and start up at this point. So that is the status of the major equipment. The cost and schedule all came in close range to target. So, no significant issues there.

Alexa Petrick: Okay. that is helpful. And then just a follow-up can you talk about your latest thoughts on capital allocation priorities whether that be around capital returns or potential for any bolt on M&A or any other considerations?

William Monteleone: Sure, Alexa. it is Will. Yes, I think what I would say on capital allocation is it continues to be dynamic and I think our past history really is a pretty good indicator of the framework that we deploy.

And so you know, I would say if you look back, you know, at times we found that M&A is the most attractive capital deployment and at others, you have seen us invest in growth inside the business like in our renewable fuels project and then there is been other times where we have seen the opportunity to repurchase our own shares at attractive discounts to our view of intrinsic value and, you know, I think these opportunities, they come and go.

And based on many different variables, And, ultimately, you know, our focus is really just a disciplined view on creating long term value on a per share basis. that is really how we think about the capital allocation priorities. And so at this point in time, you know, I think we are spending a fair amount of effort developing internal, you know, 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 and logistics projects. And I think those are within our control.

And these other opportunities involve a lot of external market forces, and I think being prepared and ready to move is a significant strategic asset. So I think our historical framework is the best thing to look at, and guides the way we think about the future.

Alexa Petrick: Appreciate the color. I will turn it back.

Operator: Your next question comes from Jason Gabelman with TD Cowen. Your line is open.

Jason Gabelman: I was hoping to get an update on how much of the NOL is left. When do you expect that to be exhausted just given the very strong, earnings we have seen? And then updated guidance on where tax rate can go. Once that is exhausted.

Shawn Flores: Hey, Jason. it is Shawn. Yeah. I would say the beginning point, the end of the year, NOL balance was around $700 million And just given the year to date performance, I would expect to utilize a substantial portion of that NOL this year. I think if current margins persist, we will likely transition to a more typical federal tax position beginning in 2027.

Jason Gabelman: Okay. Understood. And then maybe was hoping to get your updated thoughts around small refinery exemptions Any kind of a sense on when you can expect to hear on your 2025 petitions? And outlook for what that could do from a cash standpoint.

William Monteleone: Sure, Jason. Yeah. I think that I think any specific dates would be complete speculation as you guys know, just kind of watching this. there is deadlines, there is legal obligations, and all those things rarely seem to be binding. On behalf of the EPA. So I think that the key date, you know, we are watching this. Clearly. there is a September 1 compliance deadline for 2025. it is early August. So we would certainly hope to hear, with adequate time, ahead of that compliance deadline. As a reminder, we are in a favorable position. With respect to the 2025 RIN positioning. At this juncture.

And I will let Sean go into the dollar magnitudes based on you know, different scenarios, for your benefit.

Shawn Flores: Yeah, Jason. Our mainland RVO is about a 140 million RIN units for 2025. So a full exemption at all 3 of our refineries and at current RIN prices would be about $300 million and then a partial exemption would be half of that.

Jason Gabelman: Got it. Maybe if I could just ask a follow-up on the Hawaii turnaround and kind of the outlook I know you mentioned some of the working capital headwind in 2Q was related to Hawaii. I was hoping you could disclose around what proportion of the headwind we should expect to come back once Hawaii It comes back online, and then based on what you are seeing in the market, do you anticipate landed crude costs to normalize beyond 3Q?

Shawn Flores: Yeah, Jason. I will take the first 1. I would say roughly half of the outflow this quarter was directly related to building up refined product inventories in Hawaii. I think the balance is mostly related to just higher flat price and inventory values. So and then, Will, do you want to cover the crude? Yeah, Jason.

William Monteleone: I think, you know, the waterborne crude market's been volatile as you can imagine, and we have seen, I think it is probably your best proxy to think about this as, you know, amidst the kind of the peak concerns on crude supply, You know, we saw ANS for June crude deliveries, so these would have traded in the kind of April, May time frame. Trade as high as ice print plus 18. So and then the moment that the Straits appeared to be opening, and did open for periods of time, we saw, you know, substantial excess waterborne crude available and the ANS deliveries for September delivery dropped to minus 6.

So you can see it is almost a $25 a barrel swing in the span of 3 months in terms of crude delivery, and you know, I think it expresses the kind of volatility we are seeing Yeah. That said, I would just comment that at this point, despite the conflict re-intensifying, we are not seeing crude differentials, at peak levels like it was early in the early stage of the-- in the kind of March, April time frame. In the current market environment.

Jason Gabelman: Alright. Thanks for that color. I will turn it back.

Operator: This concludes the question and answer session. I will now turn the call over to Will for closing remarks.

William Monteleone: Great. The quarter represents an example of what strong execution can deliver against a favorable market backdrop. Looking forward, our focus remains on disciplined execution as the durable path to growing earnings and free cash flow per share over time. Thank you to the entire Par Pacific team for your focused efforts throughout the quarter, and thank you all for joining us today.

Operator: This concludes today's conference call. Thank you for joining. You may now disconnect.