Refinery turnaround and strong financial performance highlight Par Pacific’s year

  • Par Pacific plans turnaround at 63,000 b/d refinery in Billings, Mont.
  • Company officials say strong refinery sector performance limits acquisition opportunities
  • Up to $22 million to be spent on Billings work to improve reliability
  • Refinery’s throughput averaged 50,000 b/d in Q4 2023
  • 15-day outage planned for Tacoma refinery in Q1
  • Record earnings reported for 2023, with net income of $728.6 million
  • Refining sector operating income up 68% from 2022
  • Retail segment operating income up 15% year to year

Par Pacific is planning a turnaround at its 63,000 b/d refinery in Billings, Mont., later this year, company officials said on Wednesday. The officials also said strong performance in the refinery sector is limiting opportunities for more acquisitions in the near future. They also said the company plans to spend up to $22 million on the Billings work, which will extend into 2025 and is intended to improve reliability at the facility with a goal of having throughput consistently at the 60,000 b/d. Incoming Chief Executive Will Monteleone said the refinery’s throughput averaged about 50,000 b/d in the fourth quarter and its adjusted gross margin was $11.55/bbl. Par acquired the former ExxonMobil refinery in June for $310 million. Monteleone also said the company is planning a 15-day outage in the first quarter at its 42,000-b/d refinery in Tacoma, Wash., that it will manage from inventory. Throughput at the refinery in the last quarter of 2023 was 38,000 b/d, down from 40,000 b/d in Q4 2022. Adjusted gross margin during the quarter was $7.87/bbl. Throughput at the company’s Newcastle, Wyo., refinery was 17,000 b/d in Q4 2024 while the adjusted gross margin was $13.90/bbl. Par also reported that throughput at its largest refinery in Oahu, Hawaii, was 81,000 b/d in the quarter, consistent with the year-ago number. The refinery’s adjusted gross margin during the quarter was $16.73/bbl. Monteleone said that while mergers and acquisitions remain a key part of Par Pacific’s strategy, the current strength in refining makes it difficult to acquire assets. Talk of additional acquisitions comes as Par Pacific reported record earnings for 2023, with net income of $728.6 million about double what was reported in 2022. The company’s refining sector saw operating income of $676.2 million for the year, up 68% from 2022. Refining’s adjusted gross margin for 2023 was $995 million, up 22.4% from 2022. The retail segment reported 2023 operating income of $56.6 million, up 15% year to year. Adjusted gross margin for retail was $155.3 million, up 9.75% from 2022.

Factuality Level: 8
Factuality Justification: The article provides detailed information about Par Pacific’s plans for its refineries, including financial data and operational updates. The information is specific and relevant to the company’s operations, with no apparent bias or misleading information.
Noise Level: 3
Noise Justification: The article provides detailed information about Par Pacific’s plans for its refineries, including financial data and operational updates. However, the article lacks broader context or analysis on the implications of these plans for the industry or the company’s stakeholders. It mainly focuses on operational details and financial figures without delving into the larger trends or consequences of Par Pacific’s actions.
Financial Relevance: Yes
Financial Markets Impacted: The news article provides information about Par Pacific’s plans for turnaround and improvement at its refineries in Billings, Mont., Tacoma, Wash., Newcastle, Wyo., and Oahu, Hawaii. This information may impact the company’s financial performance and potentially the refining sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on Par Pacific’s plans for refinery turnaround and improvement, which are financial topics. There is no mention of any extreme events.
Public Companies: Par Pacific (N/A)
Private Companies: ExxonMobil
Key People: Will Monteleone (Chief Executive)

Reported publicly: www.marketwatch.com