Par Pacific Holdings Inc (PARR) 2023 Q2 法說會逐字稿

Good day, and welcome to the Par Pacific Second Quarter 2023 Earnings Call.

美好的一天，歡迎參加 Par Pacific 2023 年第二季度財報電話會議。

(Operator Instructions)

（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Ashimi Patel, Director of Investor Relations. Please go ahead.

請注意此事件正在被記錄。現在我想將會議交給投資者關係總監 Ashimi Patel。請繼續。

Thank you, Sarah. Welcome to Par Pacific's Second Quarter Earnings Conference Call. Joining me today are William Pate, Chief Executive Officer; Will Monteleone, President; Shawn Flores, SVP and Chief Financial Officer; and Richard Creamer, EVP of Refining and Logistics.

謝謝你，莎拉。歡迎參加 Par Pacific 第二季度收益電話會議。今天與我一起出席的是首席執行官 William Pate；威爾·蒙特萊昂，總裁； Shawn Flores，高級副總裁兼首席財務官；和理查德·克里默（Richard Creamer），煉油和物流執行副總裁。

Before we begin, note that our comments today may include forward-looking statements. Any forward-looking statements are subject to change and are not guarantees of future performance or events. They are subject to risks and uncertainties, and actual results may differ materially from these forward-looking statements.

在開始之前，請注意我們今天的評論可能包含前瞻性陳述。任何前瞻性陳述都可能發生變化，並且不能保證未來的業績或事件。它們面臨風險和不確定性，實際結果可能與這些前瞻性陳述存在重大差異。

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 non-GAAP reconciliations and additional information. I'll now turn the call over to our Chief Executive Officer, William Pate.

因此，投資者不應過分依賴前瞻性陳述，我們不承擔更新或修改這些陳述的義務。我建議您參閱我們網站上的投資者介紹以及我們向 SEC 提交的非 GAAP 調節表和其他信息。我現在將把電話轉給我們的首席執行官威廉·佩特。

Thank you, Ashimi, and good morning to our conference call participants. This quarter was an exciting period in our company's growth. We made progress on many strategic objectives and reported excellent financial results. Second quarter adjusted EBITDA was $151 million and adjusted net income was $1.73 per share. While the market continues to be supportive of our business, our financial results were attributable to solid commercial and operational execution at each of our business units. We closed the Billings acquisition on June 1 and welcome the Par Montana team to our organization. Initial performance has been very strong with June operational and financial results well above our acquisition forecast.

謝謝你，Ashimi，我們的電話會議參與者早上好。本季度是我們公司發展的一個激動人心的時期。我們在許多戰略目標上取得了進展，並報告了出色的財務業績。第二季度調整後 EBITDA 為 1.51 億美元，調整後淨利潤為每股 1.73 美元。雖然市場繼續支持我們的業務，但我們的財務業績歸功於我們每個業務部門紮實的商業和運營執行力。我們於 6 月 1 日完成了對 Billings 的收購，並歡迎 Par Montana 團隊加入我們的組織。最初的業績非常強勁，六月份的運營和財務業績遠高於我們的收購預測。

As previously noted, success in Billings depends on improving reliability. Our confidence is growing that the Billings refinery will exceed our acquisition case, which assumes 50,000 barrels per day of throughput. The Par Montana team has identified numerous projects to improve mechanical integrity, utility and infrastructure improvements and other important elements of reliability. These are generally small capital, high-return projects.

如前所述，比林斯的成功取決於可靠性的提高。我們越來越有信心比林斯煉油廠將超過我們的收購案例，假設每天的吞吐量為 50,000 桶。帕蒙大拿團隊已經確定了許多項目來提高機械完整性、實用性和基礎設施改進以及其他重要的可靠性要素。這些通常是小資本、高回報的項目。

The June results demonstrate that improved reliability drives significant site profitability.

六月份的結果表明，可靠性的提高可顯著提高站點的盈利能力。

We also made considerable progress on our renewables initiative. The Hawaii distillate hydrotreater conversion project is progressing well and we continue to advance engineering on the Tacoma SAF green hydrogen project.

我們在可再生能源計劃方面也取得了顯著進展。夏威夷餾分油加氫處理裝置轉換項目進展順利，我們將繼續推進塔科馬 SAF 綠色氫項目的工程設計。

The third quarter is shaping up to be another strong quarter. Global inventories tightened in July due to solid demand for refined products. As a result, market cracks have been improving throughout the first half of this quarter. We're also benefiting from growing local demand. Our retail units posted exceptional same-store sales growth during the second quarter, illustrating the strength of our franchises and overall market growth.

第三季度將成為又一個強勁的季度。由於成品油需求強勁，7 月份全球庫存收緊。因此，本季度上半年市場裂縫一直在改善。我們還受益於不斷增長的當地需求。我們的零售部門在第二季度實現了非凡的同店銷售增長，說明了我們的特許經營權和整體市場增長的實力。

June 30 liquidity of $464 million reflects a strong capital structure. During the quarter, we were able to fund the billings acquisition with cash on hand and availability from our new asset-backed loan facility. Since the closing, we have steadily reduced our debt and rebuilt our liquidity. Before Will covers our commercial and operational performance in more detail, I also want to note that the Board of Directors has authorized management to repurchase up to $250 million of common stock. At this stage in our company's evolution, we will use this authority opportunistically as we have sufficient liquidity to achieve our ambitious growth objectives while also repurchasing common stock at attractive prices.

6 月 30 日的流動性為 4.64 億美元，反映出強大的資本結構。在本季度，我們能夠利用手頭現金和新的資產支持貸款工具為比林斯收購提供資金。自交易完成以來，我們穩步減少了債務並重建了流動性。在威爾更詳細地介紹我們的商業和運營業績之前，我還想指出，董事會已授權管理層回購最多 2.5 億美元的普通股。在我們公司發展的現階段，我們將機會主義地利用這一權力，因為我們有足夠的流動性來實現我們雄心勃勃的增長目標，同時以有吸引力的價格回購普通股。

I'll now turn the call over to Will.

我現在將電話轉給威爾。

Thank you, Bill. The Refining and Logistics business units delivered a strong quarter, executing planned maintenance efficiently and achieving excellent throughput. The combined throughput of Hawaii, Washington and Wyoming resulted in a record quarterly throughput of 142,000 barrels per day. In addition, the Billings team delivered a strong initial contribution with total crude charge of nearly 63,000 barrels per day for the month of June.

謝謝你，比爾。煉油和物流業務部門在本季度表現強勁，有效執行計劃維護並實現了出色的吞吐量。夏威夷、華盛頓和懷俄明州的總吞吐量創造了創紀錄的季度吞吐量，達到每天 142,000 桶。此外，比林斯團隊做出了強勁的初步貢獻，6 月份的原油總裝量接近 63,000 桶/日。

In Hawaii, second quarter throughput increased to 84,000 barrels per day and production costs were $4.33 per barrel. The Singapore Index averaged $13.72 per barrel during the quarter and our landed crude differential was $5.29, slightly better than our guidance. This resulted in a combined index of $8.43 per barrel. Capture to the combined index was approximately 143%, reflecting continued price lag benefit in a falling crude price environment, favorable freight rates, low levels of backwardation and a modest product crack hedge benefit.

在夏威夷，第二季度產量增至每天 84,000 桶，生產成本為每桶 4.33 美元。本季度新加坡指數平均每桶 13.72 美元，我們的到岸原油價差為 5.29 美元，略好於我們的指導。綜合指數為每桶 8.43 美元。綜合指數的捕獲率約為 143%，反映了原油價格下跌環境中持續的價格滯後收益、有利的運費、低水平的現貨溢價以及適度的產品裂縫對沖收益。

In Washington, second quarter throughput was 41,000 barrels per day and production costs were $3.98 per barrel. The PNW Index averaged $25 per barrel during the quarter. Capture declined to 25%, reflecting a greater than $5 per barrel tightening of WCS crude differentials during the period as well as asphalt and VGO weakness.

在華盛頓，第二季度的吞吐量為每天 41,000 桶，生產成本為每桶 3.98 美元。本季度 PNW 指數平均價格為每桶 25 美元。捕獲量下降至 25%，反映出在此期間 WCS 原油價差收緊超過每桶 5 美元，以及瀝青和 VGO 疲軟。

In Wyoming, second quarter throughput was 17,000 barrels per day and production costs were $8.30 per barrel, slightly elevated due to minor planned maintenance. The U.S. Gulf Coast index was $21.65 per barrel during the quarter. Wyoming capture was approximately 95% and including a negative FIFO impact of $3 million, but partially offset by Rockies regional strength.

在懷俄明州，第二季度的吞吐量為每天 17,000 桶，生產成本為每桶 8.30 美元，由於計劃內的小型維護而略有上升。本季度美國墨西哥灣沿岸指數為每桶 21.65 美元。懷俄明州的捕獲率約為 95%，其中包括 300 萬美元的 FIFO 負面影響，但部分被落基山脈地區實力所抵消。

And finally, Montana production costs totaled $8.07 per barrel, reflecting the strong June throughput. Like our Wyoming location, we plan to use the U.S. Gulf Coast index as a benchmark for the Montana location. That index averaged $23.20 over the course of June and capture was 134%, reflecting strong regional Rockies differentials to the Gulf Coast. Like Wyoming, Montana capture is highly seasonal.

最後，蒙大拿州的生產成本總計為每桶 8.07 美元，反映出 6 月份的強勁吞吐量。與懷俄明州辦事處一樣，我們計劃使用美國墨西哥灣沿岸指數作為蒙大拿辦事處的基準。 6 月份該指數平均為 23.20 美元，捕獲率為 134%，反映出落基山脈地區與墨西哥灣沿岸的巨大差異。與懷俄明州一樣，蒙大拿州的捕撈具有很強的季節性。

Looking ahead to the third quarter, we expect Hawaii to run between 83,000 and 88,000 barrels per day; Montana between 52,000 and 57,000; Washington between 40,000 and 42,000; and Wyoming between 17,000 and 19,000 barrels per day. Due to unplanned downtime during July of our Hawaii reformer unit, we expect a margin impact of $1.50 to $2 per barrel.

展望第三季度，我們預計夏威​​夷日產量將在 83,000 至 88,000 桶之間；蒙大拿州 52,000 至 57,000 之間；華盛頓州 40,000 至 42,000 人；懷俄明州每天生產 17,000 至 19,000 桶。由於夏威夷重整裝置 7 月份計劃外停機，我們預計每桶利潤將受到 1.50 美元至 2 美元的影響。

We expect our third quarter Hawaii crude differential to average between $5 and $5.50 per barrel, approximately flat to the prior quarter. In total, we expect system-wide throughput of approximately 200,000 barrels per day or 92% utilization.

我們預計第三季度夏威夷原油價差平均在每桶 5 美元至 5.50 美元之間，與上一季度大致持平。總的來說，我們預計全系統吞吐量約為每天 200,000 桶，即利用率為 92%。

The Retail segment generated another strong financial quarter with growing fuel volumes and expanding merchandise revenues. Second quarter same store sales fuel volumes and merchandise revenue ramped up nicely, growing 11% and 12%, respectively, versus the 2022 levels. These same store sales reflect rebounding Hawaii economic activity, as well as the growing strength of our Hele and nomnon brands.

隨著燃料量的增長和商品收入的擴大，零售部門又創造了一個強勁的財務季度。第二季度同店燃油銷量和商品收入大幅增長，與 2022 年的水平相比分別增長 11% 和 12%。這些同店銷售額反映了夏威夷經濟活動的反彈，以及我們 Hele 和 nomnon 品牌實力的不斷增強。

The successful execution of the Billings transaction reflects months of planning and coordination. I'd like to congratulate and thank the entire Par Montana and Par Pacific team for driving a well-planned operational integration. We pride ourselves on crisp integrations, and this was another great team effort.

比林斯交易的成功執行反映了數月的規劃和協調。我要祝賀並感謝整個 Par Montana 和 Par Pacific 團隊推動了精心策劃的運營整合。我們為清晰的集成感到自豪，這是另一項偉大的團隊努力。

Our initial time on the ground in Montana has largely confirmed our initial assessment. We believe we will optimize operations and achieve the initial synergies as well as consistently move throughput above our baseline. With respect to our renewables initiatives, in July, we began trial runs for our Tacoma coprocessing operation. Less than $2 million project reduces our RVO exposure, and we expect a less than 1-year payback period. We have started fabrication on our previously announced Hawaii SAF project, and we also continue to dedicate time and resources to scope in a larger, co-located green hydrogen and SAF facility at our Tacoma refinery. We expect to make a final investment decision on this project early next year.

我們在蒙大拿州的首次實地考察在很大程度上證實了我們的初步評估。我們相信，我們將優化運營並實現最初的協同效應，並持續將吞吐量提高到我們的基線之上。關於我們的可再生能源計劃，我們於 7 月開始試運行塔科馬協同處理業務。不到 200 萬美元的項目減少了我們的 RVO 風險，我們預計投資回收期不到 1 年。我們已經開始之前宣布的夏威夷 SAF 項目的製造，並且我們還將繼續投入時間和資源，在塔科馬煉油廠建設一個更大的、位於同一地點的綠色氫和 SAF 設施。我們預計明年初對該項目做出最終投資決定。

I will now turn it over to Shawn to review our financial results.

我現在將把它交給肖恩來審查我們的財務業績。

Thank you, Will. Second quarter adjusted EBITDA and adjusted earnings were $151 million and $106 million or $1.73 per share. The refining segment reported adjusted EBITDA of $129 million in the second quarter, compared to $153 million in the first quarter. We got off to a strong start in Billings, generating adjusted EBITDA of $43 million during the first month of our ownership.

謝謝你，威爾。第二季度調整後 EBITDA 和調整後收益分別為 1.51 億美元和 1.06 億美元，即每股 1.73 美元。煉油業務第二季度調整後 EBITDA 為 1.29 億美元，而第一季度為 1.53 億美元。我們在比林斯取得了良好的開端，在我們擁有所有權的第一個月內，調整後的 EBITDA 就達到了 4300 萬美元。

Our second quarter refining results included a $12 million benefit in Hawaii for price lag and product crack hedging, partially offset by a negative FIFO impact in Wyoming of $3 million. We have continued our product crack hedging framework in Hawaii with approximately 25% of our third quarter sales hedged at a $15 per barrel premium to Brent.

我們第二季度的煉油業績包括夏威夷因價格滯後和產品裂縫對沖而獲得的 1,200 萬美元收益，部分被懷俄明州 300 萬美元的 FIFO 負面影響所抵消。我們繼續在夏威夷實施產品裂縫對沖框架，第三季度約 25% 的銷售額以每桶比布倫特原油溢價 15 美元的價格進行對沖。

Our Logistics segment reported adjusted EBITDA of $26 million in the second quarter compared to $18 million in the first quarter. The sequential improvement was driven by increased marine throughput in Hawaii and Washington and a $3 million contribution in June from the Montana Logistics System.

我們的物流部門報告第二季度調整後 EBITDA 為 2600 萬美元，而第一季度為 1800 萬美元。連續改善的推動因素是夏威夷和華盛頓海運吞吐量的增加以及蒙大拿州物流系統 6 月份捐贈的 300 萬美元。

The Retail segment reported adjusted EBITDA of $18 million in the second quarter compared to $17 million in the first quarter. Through the first half of the year, our retail business has generated $35 million in adjusted EBITDA compared to $15 million during the first half of last year.

零售部門報告第二季度調整後 EBITDA 為 1800 萬美元，而第一季度為 1700 萬美元。今年上半年，我們的零售業務調整後 EBITDA 為 3500 萬美元，而去年上半年為 1500 萬美元。

As Will mentioned, our strong retail earnings were supported by growing same store sale volumes and merchandise revenue. Corporate expenses and adjusted EBITDA were $22 million in the second quarter compared to $19 million in the first quarter. Our second quarter expenses include $3 million related to our renewables development and other onetime costs.

正如威爾提到的，我們強勁的零售收入得益於同店銷量和商品收入的增長。第二季度公司開支和調整後 EBITDA 為 2200 萬美元，而第一季度為 1900 萬美元。我們第二季度的支出包括與可再生能源開發相關的 300 萬美元和其他一次性成本。

As we advance engineering on our renewables project in Tacoma, we expect to incur an additional $2 million to $3 million per quarter above our baseline corporate expense guidance of $17 million to $19 million. Cash provided by operations during the second quarter totaled $173 million net changes in working capital resulted in a cash inflow of $88 million, primarily driven by the initial build in trade payables at Par Montana.

隨著我們推進塔科馬可再生能源項目的工程設計，我們預計每季度將比我們 1700 萬至 1900 萬美元的基準企業支出指導增加 200 萬至 300 萬美元。第二季度運營提供的現金總計 1.73 億美元，營運資金淨變化導致現金流入 8800 萬美元，這主要是由 Par Montana 的貿易應付賬款初始增加推動的。

Cash outflows from investing activities totaled $624 million. This includes $280 million for the remaining Billings base purchase price and $328 million for the Billings hydrocarbon inventory and other working capital items. Cash outflows from financing activities totaled $20 million in the quarter, driven by repayments of borrowings on our Hawaii deferred financing facility.

投資活動現金流出總計 6.24 億美元。其中包括 2.8 億美元的剩餘比林斯基本購買價格以及 3.28 億美元的比林斯碳氫化合物庫存和其他營運資金項目。本季度融資活動產生的現金流出總計 2,000 萬美元，主要是由於我們夏威夷遞延融資工具的借款償還所致。

Second quarter ending liquidity was $464 million, including $191 million in cash and $273 million in availability. Concurrent with the Billings acquisition, we completed the upside of our asset-based loan facility, increasing total bank commitments from $150 million to $600 million. Strong cash flow from operations during the quarter allowed us to pay down the ABL from $215 million on June 1 to $41 million on June 30. Total gross debt was $595 million at the end of the second quarter, an increase of just $45 million from our pre-acquisition levels.

第二季度末流動資金為 4.64 億美元，其中包括 1.91 億美元現金和 2.73 億美元可用資金。在收購 Billings 的同時，我們完成了基於資產的貸款融資的上行，將銀行承諾總額從 1.5 億美元增加到 6 億美元。本季度運營產生的強勁現金流使我們能夠償還ABL，從6 月1 日的2.15 億美元增至6 月30 日的4100 萬美元。第二季度末總債務為5.95 億美元，比我們的債務總額僅增加了4500 萬美元。收購前的水平。

And lastly, with the Billings acquisition closed, we are increasing our 2023 CapEx guidance by $20 million to a total of $90 million to $100 million for the full year.

最後，隨著比林斯收購的完成，我們將 2023 年資本支出指導增加 2000 萬美元，全年總額達到 9000 萬至 1 億美元。

This concludes our prepared remarks. Operator, we'll turn it to you for Q&A.

我們準備好的發言到此結束。接線員，我們會將其轉給您進行問答。

Thank you. We will now begin the question-and-answer session.

謝謝。我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

Our first question comes from Matthew Blair with TPH.

我們的第一個問題來自 TPH 的 Matthew Blair。

Bill, Will and Shawn, the initial contribution from the Billings refinery appeared quite strong, which I suppose isn't too unusual for the June period. But could you walk through the major drivers for us? And were there any onetime benefits that we should be aware of? And then finally, when do you think the next major turnaround will be scheduled for Billings?

比爾、威爾和肖恩，比林斯煉油廠的最初貢獻似乎相當強勁，我認為這對於六月期間來說並不罕見。但您能為我們介紹一下主要驅動因素嗎？我們應該注意哪些一次性好處？最後，您認為比林斯何時會安排下一次重大轉變？

Sure, Matt. This is Will. I'll take the operational aspects and then let Shawn address some of the financial components. I would say overall, the biggest drivers of strong throughputs, again, I think we're able to really run at max rates through the crude unit and the FCC were we able to feed additional crude into that unit. So again, I think we saw strong performance from the team there right out of the gate. I think we are also in above mid-cycle margin environment for both Gulf Coast cracks as well as the Rockies regional differentials and then ultimately, the feedstock inputs for Canadian heavy barrels as well as the light barrels that we run were, I would say, in line with our acquisition model.

當然，馬特。這是威爾。我將討論運營方面的問題，然後讓肖恩解決一些財務方面的問題。我想說，總的來說，強勁吞吐量的最大驅動因素是，我認為我們能夠真正以最大速率通過原油裝置和 FCC，如果我們能夠向該裝置輸送額外的原油。再說一遍，我認為我們一開始就看到了團隊的強勁表現。我認為，對於墨西哥灣沿岸裂縫以及落基山脈的區域差異，我們也處於週期中期以上的利潤環境，最終，我想說的是，加拿大重型桶以及我們運行的輕型桶的原料輸入是，符合我們的收購模式。

So again, I think it was really a combination of strong operations from the team and above mid-cycle environment. With respect to the turnarounds, we do have planned turnaround activity in 2024. I'd expect it to be about a 30-day outage.

再說一次，我認為這確實是團隊的強大運營和中期以上環境的結合。關於周轉，我們確實計劃了 2024 年的周轉活動。我預計會出現大約 30 天的停機。

I think one thing I'd point out for you in Billings that's unique is, again, even when we have certain units down, we're unlikely to take total crude charge down to zero. So again, we're able to feed crude to the CAT unit. And so ultimately, it's going to be a little bit different than our other facilities where we have plant-wide outages. Shawn, do you want to take any onetime aspects or financial funds?

我想我想在比林斯向你們指出的一件獨特的事情是，即使我們關閉了某些單位，我們也不可能將總原油費用降至零。同樣，我們能夠向 CAT 裝置輸送原油。因此，最終，這將與我們其他工廠發生全廠停電的情況有所不同。肖恩，你想要一次性的東西或財務資金嗎？

Yes. I think we'll hit on most of the financial components. Matthew, I know you track the Rockies market pretty closely. I think we saw both Rockies gas and diesel peak in June, both were very favorable to the Gulf Coast. They remain strong, but likely have peaked in June.

是的。我想我們會討論大部分的金融部分。馬修，我知道您非常密切地關注落基山脈市場。我認為我們在六月份看到了落基山脈天然氣和柴油的峰值，兩者都對墨西哥灣沿岸非常有利。它們仍然強勁，但可能在六月達到頂峰。

Great. And then -- the next question might be for Bill. You talked about raising the buyback authorization to $250 million. You mentioned it'd be an opportunistic approach. Could you talk about your current opportunity set and how you view it between M&A, buybacks and the potential dividends?

偉大的。然後——下一個問題可能是問比爾的。您談到將回購授權提高到 2.5 億美元。你提到這是一種機會主義的做法。您能談談您當前的機會集以及您如何看待併購、回購和潛在股息之間的關係嗎？

Sure, Matt. We obviously focus on our avenues of growth first. And when we think about growth, as Will mentioned, we think there's a real opportunity just investing in reliability. You'll note that we were projecting throughput at 92% of system capacity. By investing in reliability over time, we think we can get that number up.

當然，馬特。顯然，我們首先關注的是我們的增長途徑。正如威爾提到的，當我們考慮增長時，我們認為投資可靠性是一個真正的機會。您會注意到，我們預計吞吐量為系統容量的 92%。通過隨著時間的推移對可靠性進行投資，我們認為我們可以提高這個數字。

There's opportunities that we've demonstrated in the past in Hawaii, and we think there's significant opportunities to run the way we did in June, kind of year-round in Montana with some investment.

我們過去在夏威夷展示過一些機會，我們認為有很大的機會可以像六月份那樣運行，在蒙大拿州全年進行一些投資。

In addition to that, we'll also be looking at building out our logistics system. We also continue to grow our retail system. We've got a couple of new to industry sites that will be opening this year, one in Hawaii and one in Washington. And then, of course, we'll be investing in renewables around our existing footprint.

除此之外，我們還將考慮建立我們的物流系統。我們還繼續發展我們的零售系統。我們今年將開設幾個新的行業網站，一個在夏威夷，一個在華盛頓。當然，我們將圍繞現有足跡投資可再生能源。

In addition to that, I mean, obviously, we're looking at extending into other communities within our market, but that's not something that we really look at unless an opportunity pops up. And we'll take all of that into account and at the same time, give consideration to our authority to repurchase our stock as well.

除此之外，我的意思是，顯然，我們正在考慮擴展到我們市場內的其他社區，但這不是我們真正關注的事情，除非有機會出現。我們將考慮所有這些，同時也會考慮我們回購股票的權力。

Our next question comes from Neil Mehta with Goldman Sachs.

我們的下一個問題來自高盛的尼爾·梅塔。

Yes, Bill, [team] my congrats to you. It was a really strong start to the year. And this kind of leads to my first question, which is -- you've talked about a mid-cycle view on free cash flow per share or EBITDA basis in the past. Can you talk about how that view is evolving in light of execution in the margin environment? And how can we frame what a blue sky could look like for the business a couple of years out if you continue on this trajectory?

是的，比爾，[團隊]我祝賀你。這是今年一個非常強勁的開端。這就引出了我的第一個問題，即——您過去曾談到過對每股自由現金流或 EBITDA 基礎的中期觀點。您能否談談根據保證金環境中的執行情況，這種觀點是如何演變的？如果繼續沿著這條軌跡走下去，我們該如何規劃幾年後企業的藍天會是什麼樣子呢？

I think one way to think about it, Neil, is the mid-cycle that we quoted was kind of based on a [15, 19] average, and it was also based on an acquisition case in Billings of 50,000 barrels a day and we've noted in the past that if we can get our utilization our throughput up and build (inaudible) barrels a day. I think that added close to 10% of the net present value of our evaluation of Billings or close to $30 million in net present value, if you think about it in the context of the purchase price for the steel.

尼爾，我認為思考這個問題的一種方式是，我們引用的中期週期是基於 [15, 19] 平均值，而且它也是基於比林斯每天 50,000 桶的收購案例，我們過去已經註意到，如果我們能夠提高利用率，我們的吞吐量就會提高，並且每天都會建造（聽不清）桶。我認為這增加了我們對比林斯評估的淨現值的近 10%，或者說，如果您從鋼材的購買價格的角度來考慮的話，淨現值將增加近 3000 萬美元。

So there's a real opportunity for growth associated with getting our throughput up. And we've increased our throughput in Hawaii, and that actually adds value as well. I think the averages as well, if you think about that 15, 19 average, we've improved our capture in Hawaii, and I don't have the number in front of me, Shawn may have specifics pretty materially over that average as well.

因此，我們確實有一個與提高吞吐量相關的增長機會。我們增加了夏威夷的吞吐量，這實際上也增加了價值。我認為平均數也是如此，如果你考慮一下 15、19 的平均數，我們已經提高了在夏威夷的捕獲量，而且我面前沒有這個數字，肖恩可能也有比該平均數相當大的細節。

I think that, that also was -- we took that into account in some extent, but I think we're actually capturing more value in Hawaii than we did when we quoted that through that mid-cycle. So I think there's improvement on the -- to summarize, improvement on the Hawaii side, improvement on the Montana side, both very achievable and within our control and then overall, we'll wait and see what the market gives us.

我認為，我們在某種程度上也考慮到了這一點，但我認為我們實際上在夏威夷獲得了比我們在周期中期引用這一點時更多的價值。所以我認為，總而言之，夏威夷方面的改進，蒙大拿方面的改進，都是可以實現的，並且在我們的控制範圍內，然後總的來說，我們將等待，看看市場給我們帶來什麼。

That's great. And that's -- the follow-up is just talk about Hawaii. It's a unique market, it's a niche market, it's tied into Singapore where there's been some strengthening of margins here. Just what are you seeing on the ground there? How should we think about the back half outlook for that Hawaii business?

那太棒了。那就是——後續只是談論夏威夷。這是一個獨特的市場，這是一個利基市場，它與新加坡息息相關，那裡的利潤率有所加強。你在地面上看到了什麼？我們應該如何看待夏威夷業務的後半前景？

The Hawaii business is strong, and it's been stronger in the second half of the year. I think as you noted, the first half of this quarter, we've seen improvements. I don't know that there's a major change in Singapore cracks other than just following global cracks. I mean Singapore has been right up against the -- with Europe. And so new capacity that's been coming online has generally been flowing West to Europe and the inventories in Singapore continue to be very tight.

夏威夷業務強勁，下半年更加強勁。我認為正如您所指出的，本季度前半段我們已經看到了進步。我不知道新加坡的裂縫除了追隨全球裂縫之外還有什麼重大變化。我的意思是，新加坡一直在與歐洲對抗。因此，上線的新產能通常流向西方，流向歐洲，而新加坡的庫存仍然非常緊張。

Frankly, inventories globally are tight, and so I think local products -- local production tends to be directed towards local supply. The Chinese have opened a couple of new refineries in the last 9 to 12 months, but those tend to be highly oriented towards the pet chem market. One of their more recent highly complex refineries, I think it was 400,000 barrels a day, but only 50,000 barrels a day was actually going to transportation fuels. The rest was routed for pet chem.

坦率地說，全球庫存緊張，因此我認為本地產品——本地生產往往面向本地供應。過去 9 至 12 個月，中國開設了幾家新煉油廠，但這些煉油廠往往高度面向寵物化學品市場。他們最近的一個高度複雜的煉油廠，我認為每天有 400,000 桶，但實際上每天只有 50,000 桶用於運輸燃料。其餘的則用於寵物化學品。

And I think one of the things we're seeing is a fairly significant divergence between naphtha, which is flowing into the pet chem market and fairly weak in the transportation fuels in Asia, which -- and that spread probably about as wide as we've seen in terms of -- if you just think about the gasoline naphtha spread in Asia. And I think that's a reflection of relatively strong demand for transportation fuels in Asia and somewhat of a weakening demand in the pet chem market, which is driving naphtha prices or creating a glut of naphtha in the global market.

我認為我們看到的一件事是石腦油之間存在相當大的差異，石腦油正在流入石油化工市場，而在亞洲的運輸燃料中相當疲軟，而且這種差異可能與我們一樣廣泛。如果你只考慮亞洲汽油石腦油的傳播，你就會看到這一點。我認為這反映了亞洲對運輸燃料的需求相對強勁，以及石油化工市場需求的疲軟，這推動了石腦油價格或在全球市場造成石腦油供過於求。

Bill, if you could build on that, what -- how that ties into Hawaii, whether in the basis that you see in Hawaii relative to Singapore?

比爾，如果你能以此為基礎，那麼這與夏威夷有何联系，是否基於你在夏威夷相對於新加坡所看到的基礎？

Sure. Well, I mean, again, we generally are producing transportation fuels for our local market. So we're somewhat insulated from the naphtha market. I mean, we do on occasion get a little linked than we export. And that will happen periodically where we have a bulk sale in naphtha. But for the most part, we're focused on using our reformer and our other upgrading capacity to take all of our intermediates to convert those into transportation fuels and/or supplying the local heating fuel market or the energy market, the electricity market, as you know, there is fueled by fuel oil. So we're in pretty good shape and that tends to enhance our capture relative to the Singapore market.

當然。嗯，我的意思是，我們通常為當地市場生產運輸燃料。所以我們在某種程度上不受石腦油市場的影響。我的意思是，我們有時確實會比我們的出口產生一些聯繫。當我們大量銷售石腦油時，這種情況就會定期發生。但在大多數情況下，我們專注於利用我們的重整器和其他升級能力，將我們所有的中間體轉化為運輸燃料和/或供應當地供暖燃料市場或能源市場、電力市場，因為你知道，有燃料油作為燃料。因此，我們的狀況非常好，這往往會增強我們相對於新加坡市場的佔有率。

Our next question comes from James Larkin with Piper Sandler.

我們的下一個問題來自詹姆斯·拉金和派珀·桑德勒。

This is Jimmy Larkin filling in for Ryan Todd. So I guess just continue on Hawaii, we've seen the landed diff falling over the last couple of quarters. What do you guys see as like maybe the outlook in the back half of the year kind of going forward into 2024 for those landed differentials.

我是吉米·拉金 (Jimmy Larkin) 接替瑞恩·托德 (Ryan Todd)。所以我想繼續在夏威夷，我們已經看到過去幾個季度的落地差異有所下降。你們認為下半年到 2024 年這些落地差異的前景如何？

Do you want to cover that, Will?

你想報導這個嗎，威爾？

Sure. So Jimmy, I think you're correct. Keep in mind that the Hawaii crude differentials operate on probably a 90-day lag. So the market conditions that were in effect in the 90-day period prior to the third quarter is really what's showing up in our financials.

當然。所以吉米，我認為你是對的。請記住，夏威夷原油價差的運行可能存在 90 天的滯後。因此，第三季度之前 90 天內有效的市場狀況確實反映在我們的財務數據中。

So I think in general, that's -- I would say the second quarter was a period of time where you probably saw some access physical crude length out there. And overall, backwardation was relatively narrow. And ultimately, we -- it was a good opportunity to buy in some crude and drive that diff down into the low 5s.

所以我認為總的來說，我會說第二季度是一段時間，你可能會看到一些訪問物理粗略長度。總體而言，現貨溢價幅度相對較小。最終，我們——這是一個買入一些原油並將價差拉低至5%以下的好機會。

I think, obviously, the market's changed. I think, as you think about the Saudi production cuts that have impacted both medium sour and heavy barrels quite a bit. I think probably most notable would be the different -- the unique relationship you're actually seeing to buy barrels trade at a premium to the data Brent, which is quite unusual given the quality differences, but it tells you where the world is today. So again, I think you're looking at probably a tighter crude market in the back half of the year than where we've sat and obviously, a very dynamic market, and I think we'll continue to remain flexible on our crude purchasing and ensure that we balance and get the right barrels in at the best price. So I think that's probably the best guidance I can give you on the crude market and the factors to watch.

我認為，顯然，市場已經發生了變化。我認為，當你想到沙特的減產對中質桶和重桶都產生了相當大的影響時。我認為最值得注意的可能是不同之處——您實際上看到的獨特關係是，以高於布倫特原油數據的價格購買石油，考慮到質量差異，這是相當不尋常的，但它告訴您當今世界的情況。再說一次，我認為今年下半年的原油市場可能比我們目前所處的情況更緊張，顯然，這是一個非常活躍的市場，我認為我們將繼續在原油採購方面保持靈活性並確保我們平衡並以最優惠的價格獲得合適的桶。因此，我認為這可能是我能為您提供的關於原油市場和需要關注的因素的最佳指導。

Sure. And then turning back to Montana really quick. So the capture was 134% in the quarter. I know you said that this is highly seasonal and obviously, Rockies has been quite strong and I'm just wondering, with WCS kind of rebounding even if we see Rockies moderate, what -- have you guys -- you updated your kind of base case acquisition for throughput? Have you made any updates to kind of where you expect capture just based on that?

當然。然後很快就返回蒙大拿州。因此本季度的捕獲率為 134%。我知道你說過這是高度季節性的，顯然，落基山脈一直相當強勁，我只是想知道，即使我們看到落基山脈溫和，WCS 也會有所反彈，你們更新了你們的基礎類型嗎？案例獲取以提高吞吐量？您是否基於此對您期望捕獲的位置進行了任何更新？

Hi Jimmy, it's Shawn. Yes, I think our Montana capture long-term outlook is the 100% to 115% range versus the Gulf Coast 3-2-1, the 134% capture in June. And I would just refer to the comments I made about Rockies cracks relative to the Gulf Coast.

嗨，吉米，我是肖恩。是的，我認為我們蒙大拿州捕獲量的長期前景是 100% 至 115%，而墨西哥灣沿岸 3-2-1，6 月份的捕獲量為 134%。我只想參考我對落基山脈裂縫相對於墨西哥灣沿岸的評論。

We saw gasoline trade north of $20 per barrel premium to Gulf Coast in June and diesel was $40 per barrel premium. I think since then, gasolines traded off in the Rockies by about $5 relative to Gulf Coast and diesel north of $10. So still very, very strong cracks, both Gulf Coast and Rockies. But I think we're -- I think June was a peak.

我們看到 6 月份汽油貿易比墨西哥灣沿岸溢價每桶 20 美元，柴油貿易溢價每桶 40 美元。我認為從那時起，落基山脈的汽油價格相對於墨西哥灣沿岸大約為 5 美元，柴油價格為 10 美元以上。因此，墨西哥灣沿岸和落基山脈仍然存在非常非常強烈的裂縫。但我認為我們——我認為六月是一個高峰。

Our next question comes from Jason Gabelman with Cowen.

我們的下一個問題來自賈森·加貝爾曼和考恩。

Sticking with the Billings assets. So just to clarify, one, is 55,000 barrels a day, a good kind of base case number moving forward on throughput? And then can you talk about OpEx as well moving forward, $8 a barrel, I think is below the acquisition case of $10 a barrel. What drove the difference? And is that $8 a good number to think about moving forward?

堅持使用比林斯資產。因此，我想澄清一下，第一，每天 55,000 桶是吞吐量增長的良好基本情況數字嗎？然後您能否談談未來的運營支出，每桶 8 美元，我認為低於每桶 10 美元的收購情況。是什麼導致了這種差異？ 8 美元是一個值得考慮的好數字嗎？

Sure. Jason, it's Will. I think we gave you the third quarter guidance, which is 52,000 to 57,000. So I think 55,000 at the midpoint is reasonable based on where we sit today. On the OpEx side, the $10 per barrel number was based on a 50,000 barrel per day throughput number, so I think the majority of the improvement was really just driven by increasing the overall throughput. So if we're down in the 55,000 range, you're probably in the middle there is probably the right way to think about it. So not a lot of variables in there that moves with incremental throughput. So obviously, another factor when you think about the value we see in driving throughput up into the low 60s.

當然。傑森，是威爾。我認為我們給了你們第三季度的指導，即 52,000 至 57,000 人。因此，根據我們今天的情況，我認為中點 55,000 是合理的。在運營支出方面，每桶 10 美元的數字是基於每天 50,000 桶的吞吐量數字，因此我認為大部分改進實際上只是通過增加總體吞吐量來推動的。因此，如果我們處於 55,000 的範圍內，那麼您可能處於中間位置，這可能是正確的思考方式。因此，隨著吞吐量的增加而變化的變量並不多。顯然，當您考慮我們在將吞吐量提高到 60 左右的價值時，這是另一個因素。

Great. And then my follow-up, going back to Hawaii, it's been a beneficiary, I think, of elevated product tanker rates. Can you talk about the outlook for those rates moving forward? Have you seen them come off at all? What's been driving the strength so far in the first half of the year and your outlook for the second half?

偉大的。然後我的後續行動，回到夏威夷，我認為它是成品油輪運價上漲的受益者。您能談談這些利率的未來前景嗎？你見過它們脫落嗎？到目前為止，是什麼推動了上半年的發展？您對下半年有何展望？

Sure. So I think on the product tanker side, yes, you've probably seen the lump sum movement of MR ship from, let's call it, Asia into the West Coast, probably peak in the low $3 million to $3.5 million range or probably hovering around $2 million today. It's been there for the last couple of months. So it's been stable in that range, which is still elevated relative to history. So again, I think that's generally what we're seeing. And then overall, ultimately, the price lag impact that we saw -- we've had three quarters in a row of benefit of declining crude oil prices as well as compressing diesel cracks.

當然。因此，我認為在成品油輪方面，是的，您可能已經看到MR 船從亞洲（我們稱之為亞洲）到西海岸的一次性移動，可能在300 萬美元至350 萬美元的低點達到峰值，或者可能徘徊在左右今天200萬美元。過去幾個月它一直在那裡。因此它一直穩定在這個範圍內，相對於歷史而言仍然較高。再說一次，我認為這就是我們所看到的普遍情況。總體而言，最終我們看到了價格滯後的影響——我們已經連續三個季度受益於原油價格下跌以及柴油裂解的壓縮。

And as we've talked about the third quarter right now, you've got quite a bit of strength on both crude and diesel cracks expanding. So -- which is fundamentally positive for our business. But just keep in mind, as you think about the capture dynamics that is a factor that's been a tailwind for us for the last three quarters. So again, that's going to move quarter-to-quarter. But overall, still, I think, have very strong capture rates in Hawaii.

正如我們現在討論的第三季度，原油和柴油裂縫的擴張都相當強勁。所以——這對我們的業務來說從根本上來說是積極的。但請記住，當您考慮捕獲動態時，這是過去三個季度對我們有利的因素。同樣，這將逐季度變化。但總體而言，我認為夏威夷的捕獲率仍然非常高。

Do you have a -- sorry, just a follow-up on that. Do you have a rule of thumb how to convert that $3.5 million to $2 million into $1 per barrel as we think about the Hawaii benefit?

抱歉，您有後續行動嗎？當我們考慮夏威夷的收益時，您是否有經驗法則如何將 350 萬至 200 萬美元轉換為每桶 1 美元？

I mean I think it's embedded in the capture percentages, Jason. So I wouldn't give you idiosyncratic rule of thumb to point to. I think there's so many pieces moving. I think we're trying to get you to a single point that ultimately takes into account all the moving pieces that are in play.

我的意思是，我認為它已嵌入捕獲百分比中，傑森。所以我不會給你提供特殊的經驗法則來指出。我認為有很多東西在移動。我認為我們正在努力讓您達成一個共識，最終考慮到所有正在發揮作用的移動因素。

Our next question comes from John Royall with JPMorgan.

我們的下一個問題來自摩根大通的約翰·羅亞爾。

This is Alejandra Magana on for John Royall. We were just wondering, will any of the working capital impact from Billings reverse in future quarters?

我是約翰·羅亞爾 (John Royall) 的亞歷杭德拉·馬加納 (Alejandra Magana)。我們只是想知道，比林斯對營運資金的影響在未來幾個季度會逆轉嗎？

Hi there, it's Shawn. We saw a positive working capital impact in June in Montana, I mentioned that in the prepared remarks. I'm not expecting a reversal of that in Q3. If anything, I think we could see incremental benefits, I think most of the working capital cycle flush out in June.

你好，我是肖恩。我在準備好的發言中提到，六月份我們在蒙大拿州看到了積極的營運資金影響。我預計第三季度情況不會出現逆轉。如果有什麼不同的話，我認為我們可以看到增量收益，我認為大部分營運資金周期會在六月耗盡。

Okay. And switching gears, can you just provide an update on how the Laramie business is performing year-to-date, an expectation of a dividend in the first quarter of next year. And how do they think about holding versus trying to monetize the stake with where gas prices are today.

好的。換個話題，您能否提供拉勒米業務今年迄今的最新表現，以及明年第一季度股息的預期。他們如何考慮持有股份，而不是試圖根據目前的天然氣價格將股份貨幣化。

Yes. Thanks for that question. Laramie continues to perform well. I mean, obviously, gas prices have come off, but they've got pretty good hedges in place, which tended to blunt some of the cash flows when they peaked last winter, and they're supporting the business now.

是的。謝謝你提出這個問題。拉勒米繼續表現出色。我的意思是，顯然，天然氣價格已經下跌，但他們有相當好的對沖措施，這往往會削弱去年冬天達到頂峰時的一些現金流，而他們現在正在支持業務。

As I've mentioned in the past, the distributions are probably going to be less of a function of where gas prices are and more a function of whether we're drilling. And we don't have a rig in the field right now. We are completing some wells and that's going well. So I expect some production to come online for the winter. But with the lack of any development drilling in '23, I think the expectation is there would be a dividend next spring.

正如我過去提到的，分佈可能不太取決於天然氣價格，而更多取決於我們是否正在鑽探。我們現在在現場沒有鑽機。我們正在完成一些油井，進展順利。所以我預計一些作品會在冬季上線。但由於 23 年缺乏任何開發鑽探，我認為預計明年春天將會有紅利。

Our next question comes from Manav Gupta with UBS.

我們的下一個問題來自瑞銀集團的馬納夫·古普塔。

Guys, in the opening comments, you mentioned some opportunities around green hydrogen. Can you talk a little bit more about what kind of opportunities and scope you're looking in terms of green hydrogen sourcing?

伙計們，在開場白中，你們提到了有關綠色氫的一些機會。您能多談談您在綠色氫採購方面尋找的機會和範圍嗎？

Yes. So Manav, thanks for the question. We're assessing an opportunity in Washington at our Tacoma facility using hydropower and partnering with the local municipal utility, and we would be using that hydropower to drive an electrolyzer to generate hydrogen which then would be used to supply the hydrogen necessary for a sustainable aviation fuel facility. We think it's a (inaudible) given the cost of the hydropower.

是的。馬納夫，謝謝你的提問。我們正在評估華盛頓塔科馬工廠使用水力發電並與當地市政公用事業公司合作的機會，我們將利用該水力發電來驅動電解槽產生氫氣，然後將其用於供應可持續航空所需的氫氣燃料設施。考慮到水力發電的成本，我們認為這是一個（聽不清）。

Just a clarification, who own the electrolyzer and who operate the electrolyzer? Will you do that? Or would you hire somebody to do that for you?

只是澄清一下，誰擁有電解槽，誰操作電解槽？你會這麼做嗎？或者你會僱人為你做這件事嗎？

We're still assessing that. We will certainly be an equity participant in that electrolyzer. We may bring in a partner. We're still considering our options with respect to the development there. But it's on our property, and it'd be adjacent to a sustainable aviation facility -- fuel facility, and we'd be operating both units.

我們仍在評估這一點。我們肯定會成為該電解槽的股權參與者。我們可能會引入一個合作夥伴。我們仍在考慮在那裡開發的選擇。但它是在我們的財產上，並且毗鄰一個可持續的航空設施——燃料設施，我們將運營這兩個單位。

That's absolutely great to hear because we do think there is a lot of scope for green hydrogen eventually for sustainable aviation fuel or even [RD]. So I'm glad you're taking the leadership role in that. I have a quick follow-up for you. Billings also added some logistical assets. So how should we think about the logistics segment EBITDA run rate going forward?

聽到這個消息真是太棒了，因為我們確實認為綠色氫最終有很大的空間用於可持續航空燃料甚至[RD]。所以我很高興你在這方面發揮領導作用。我有一個快速的後續行動給你。比林斯還增加了一些後勤資產。那麼我們應該如何看待物流部門未來的 EBITDA 運行率呢？

You want to cover that, Shawn?

你想報導這個嗎，肖恩？

Yes. Manav, it's Shawn. We've signaled $35 million of logistics contribution from the Montana system, and that includes the refined product terminals, our crude pipeline and the refined product pipeline that runs from Billings to Eastern Washington.

是的。馬納夫，我是肖恩。我們已經表示蒙大拿州系統將提供 3500 萬美元的物流貢獻，其中包括煉油產品碼頭、我們的原油管道以及從比林斯到華盛頓東部的煉油產品管道。

Our next question is a follow-up from Jason Gabelman with Cowen.

我們的下一個問題是 Jason Gabelman 和 Cowen 的後續問題。

I just wanted to ask about the status of the Hawaii SAF project. I know you laid out some return metrics on the last call. Just wondering how -- if those metrics are still fair to think about as you progress the project? And specifically, how you're thinking about feed acquisition.

我只是想問一下夏威夷 SAF 項目的進展情況。我知道您在上次通話中列出了一些回報指標。只是想知道當您推進項目時，這些指標是否仍然值得考慮？具體來說，您如何考慮飼料獲取。

Sure, Jason. This is Will. I think the return ranges that we gave you in the past, I think still holds today. So again, I think we're targeting an IRR in the 40% range. And ultimately, we're targeting to sequence having the SAF plant online in 2025 in conjunction with the Hawaii broader plant turnaround.

當然，傑森。這是威爾。我認為我們過去給您的回報範圍今天仍然有效。再說一遍，我認為我們的目標是 IRR 在 40% 的範圍內。最終，我們的目標是在 2025 年安排 SAF 工廠上線，同時進行夏威夷更廣泛的工廠周轉。

So again, a lot of work going into that today. On feedstock sourcing, again, I think we think we're in an advantaged location largely because of the oilseed opportunity in the state of Hawaii. And then also, we believe we've got some advantages in sourcing waterborne feedstocks from Latin America. So again, I think that's ultimately going to be the solutions that we're thinking about for our feedstock strategies in Hawaii over time.

再說一遍，今天要做很多工作。在原料採購方面，我認為我們處於有利位置，很大程度上是因為夏威夷州的油籽機會。此外，我們相信我們在從拉丁美洲採購水性原料方面具有一些優勢。再說一遍，我認為這最終將成為我們隨著時間的推移為夏威夷原料策略考慮的解決方案。

This concludes our question-and-answer session. I would like to turn the conference back over to William Pate for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給威廉·佩特（William Pate）發表閉幕詞。

Thank you, Sarah, and thank you everybody for joining us today. I want to congratulate our team on an excellent quarter. There are a lot of opportunities within our portfolio, and we look forward to sustained future growth of our earnings profile. Have a good day.

謝謝莎拉，也謝謝大家今天加入我們。我要祝賀我們的團隊度過了一個出色的季度。我們的投資組合中有很多機會，我們期待未來盈利狀況的持續增長。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。