Par Pacific (NYSE:PARR) reported third-quarter 2026 adjusted net income of $531 million, or $10.70 per share, as strong refining margins and a benefit from small refinery exemptions contributed to results.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $646 million, including a $222 million benefit related to 2025 small refinery exemptions. The exemptions contributed $187 million to adjusted net income, Chief Financial Officer Shawn Flores said.
President and CEO Will Monteleone said the quarter also marked the completion of a plant-wide turnaround in Hawaii, a profit for the company’s renewables business and its first net cash position. Par Pacific ended September with $731 million in cash and approximately $2.4 billion in total liquidity.
Refining Margins and Fourth-Quarter Outlook
Par Pacific’s combined refining market index averaged a quarterly record of $38.45 per barrel, nearly three times its 2025 average of $12.40, Monteleone said. He cited constrained Persian Gulf and Russian refined product exports, restricted Asian refinery throughput and trade protectionism as factors limiting supply, while demand remained resilient.
The refining segment generated $396 million in adjusted EBITDA, excluding the small refinery exemption benefit, compared with $561 million in the second quarter. Systemwide margin capture was 86%; excluding the effects of Hawaii’s contractual price lag and turnaround activity, capture was approximately 98%, Flores said.
Hawaii’s reported capture was 54%, including a $52 million net price-lag headwind. Turnaround downtime in June also affected margins recognized in the third quarter. Normalizing for those items, Hawaii capture was 97%.
Companywide refining throughput was 174,000 barrels per day during the quarter. Hawaii processed 57,000 barrels per day, with volumes reduced by the extended turnaround, while Montana reached a quarterly record of 58,400 barrels per day, Senior Advisor Richard Creamer said.
With planned maintenance behind it, Par Pacific forecast fourth-quarter systemwide refining throughput at a midpoint of 200,000 barrels per day. The combined refining index averaged $41.34 per barrel in October, about $3 above the third-quarter average, Flores said.
In response to an analyst’s question about tanker rates, Flores said the company expects Hawaii’s fourth-quarter crude differential to be $9 to $11 per barrel, reflecting purchases made earlier in the third quarter. Higher clean-product freight pass-through rates and wider West Coast-to-Singapore distillate spreads are helping offset exposure to rising crude freight costs, although the effects may not occur in the same quarter, he said.
Renewables and Retail Grow
The newly reported renewables segment generated $5 million in adjusted EBITDA, helped by environmental credit prices and renewable diesel margins. Turnaround-related downtime left third-quarter renewable throughput and sales volumes at roughly half of expected normalized levels, Flores said.
Renewable diesel production ramped up after the turnaround, reaching approximately 3,700 barrels per day in September. Par Pacific expects fourth-quarter renewable throughput of 2,800 to 3,400 barrels per day, compared with nameplate capacity of about 4,000 barrels per day.
Flores said the company’s original project assumptions implied approximately $35 million in annual EBITDA and remained an appropriate framework for now, though he noted that the current margin environment is probably better than the company’s underwriting case.
In retail, same-store fuel volumes rose 2.1% from a year earlier and in-store sales increased 1.9%. Food sales grew 11% and represented more than 10% of total in-store sales, Monteleone said. Retail adjusted EBITDA increased to $19 million from $17 million in the second quarter.
Cash Flow, Investment and Leadership
Cash from operations was $839 million, including a $387 million working-capital inflow. Par Pacific repaid $243 million of asset-based lending borrowings and repurchased $10 million of stock during the quarter.
The company sold approximately $200 million of excess renewable identification number credits associated with its 2025 exemptions. About half the proceeds settled in the third quarter, with the remainder expected in the fourth quarter. Flores said the credits sold were excess to the company’s compliance needs.
Par Pacific expects to use about $150 million of cash to repurchase inventory as it terminates its Hawaii crude intermediation facility, a move Flores said would reduce annual working-capital funding costs by approximately $14 million. The company also expects to become a regular federal cash taxpayer after fully using its remaining federal net operating loss carryforwards this year.
The planned sale of Laramie Energy remains on track to close in the fourth quarter, subject to customary conditions, with approximately $120 million in cash proceeds expected at closing and additional consideration over five years.
Asked about acquisitions, Monteleone said the company remains focused on opportunities with significant synergies, principally in the western United States, but is not in a rush to complete a deal. He said the strong margin environment can make it difficult for buyers and sellers to reach agreement.
Monteleone also announced that Creamer is transitioning to a senior advisor role ahead of retirement next spring. Jerry Stumbo has joined as executive vice president of refining and logistics and will discuss operating results on calls beginning next quarter.
About Par Pacific (NYSE:PARR)
Par Pacific Holdings, Inc is an energy company engaged in refining, marketing and distributing transportation fuels and other petroleum products. Its refineries process crude oil into products such as gasoline, diesel, jet fuel, marine fuels and asphalt, serving customers in western U.S. markets.
The company operates refining and related energy businesses in Hawaii, Wyoming and Washington. Its operations also include logistics assets such as storage facilities, pipelines, terminals and other infrastructure used to move and distribute crude oil and refined products.
