Par Pacific Holdings Inc (PARR) 2023 Q4 法說會逐字稿

Good day and welcome to the Par Pacific fourth quarter 2023 earnings conference call. (Operator Instructions) 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.

美好的一天，歡迎參加 Par Pacific 2023 年第四季財報電話會議。（操作員說明）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, Betsy. Welcome to Par Pacific's fourth-quarter earnings conference call. Joining me today are William Pate, Chief Executive Officer; Will Monteleone, President; Shawn Flores, SVP and Chief Financial Officer; and Jeff Hollis, SVP and General Counsel.

謝謝你，貝特西。歡迎參加 Par Pacific 第四季財報電話會議。今天與我一起出席的是執行長 William Pate；威爾·蒙特萊昂，總裁； Shawn Flores，資深副總裁兼財務長；以及資深副總裁兼總法律顧問傑夫霍利斯 (Jeff Hollis)。

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. 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.

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有重大差異。因此，投資人不應過度依賴前瞻性陳述，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 調節表和其他資訊。

I'll now turn the call over to our Chief Executive Officer, William Pate.

我現在將把電話轉給我們的執行長威廉·佩特。

Thank you, Ashimi. And good morning, everyone. I'd like to take a moment to reflect on Par Pacific's 2023 achievements. Our company thrived last year, achieving record-breaking financial results. 2023 adjusted EBITDA reached $696 million, and adjusted net income was $8.21 per share, a 3% increase over 2022's results.

謝謝你，阿希米。大家早安。我想花點時間回顧一下 Par Pacific 2023 年的成就。我們公司去年蓬勃發展，並取得了破紀錄的財務表現。 2023 年調整後 EBITDA 達到 6.96 億美元，調整後淨利為每股 8.21 美元，比 2022 年業績成長 3%。

We achieved earnings growth despite a 23% decline in our market indices last year. This financial success is underscored by our strong year-end liquidity position of nearly $650 million, which we reached even after completing the $310 million Billings acquisition in June. We also lowered our cost of capital with the refinancing of one of our intermediation facilities. And finally, we repurchased over $62 million of common stock last year at an average cost well below our current share price.

儘管去年我們的市場指數下降了 23%，但我們還是實現了獲利成長。我們在 6 月完成了 3.1 億美元的比林斯收購後，年終流動性狀況接近 6.5 億美元，這凸顯了我們在財務上的成功。我們也透過對其中一項中介機構進行再融資來降低資本成本。最後，我們去年以遠低於目前股價的平均成本回購了超過 6,200 萬美元的普通股。

Over the last two years, we've generated $17 per share in cash from operations. Given our refineries configurations, we have relatively low maintenance and turnaround capital requirements, heightening the conversion of cash from operations to free cash flow. Our retail and logistics business segments have even better cash flow conversion characteristics.

在過去的兩年裡，我們從營運中每股賺取了 17 美元的現金。鑑於我們的煉油廠配置，我們的維護和周轉資本需求相對較低，從而提高了營運現金向自由現金流的轉換。我們的零售和物流業務板塊具有更好的現金流轉換特性。

Consequently, more of our cash from operations is available for growth opportunities and capital structure improvements. Other than the Billings acquisition, much of the free cash flow has gone to bolster liquidity and reduce debt. Shawn will cover these changes in more detail.

因此，我們更多的營運現金可用於成長機會和改善資本結構。除了收購比林斯之外，大部分自由現金流都用於增強流動性和減少債務。肖恩將更詳細地介紹這些變化。

In our industry, financial excellence starts with safety, environmental compliance, and reliability. Our refining and logistics team did an excellent job of focusing on these objectives, with our key process and personal safety metrics improving by approximately 40% in 2023.

在我們的產業中，卓越的財務始於安全性、環境合規性和可靠性。我們的煉油和物流團隊在專注於這些目標方面做得非常出色，我們的關鍵流程和個人安全指標到 2023 年提高了約 40%。

We also remain committed to sustainability and renewable energy, particularly in our Hawaii and Tacoma initiatives. Our learnings on co-processing in Tacoma laid the groundwork for larger projects. We will continue to focus on lower capital, higher return opportunities like our $90 million Hawaii SAF conversion project. We plan to begin production in 2025 from this unit, which will be among the lowest capital cost SAF projects in the world. In addition to renewables processing, we are also actively working on advantage solutions in sourcing and pretreating feedstocks.

我們也繼續致力於永續發展和再生能源，特別是在我們的夏威夷和塔科馬計劃中。我們在塔科馬的協同處置方面的經驗為更大的項目奠定了基礎。我們將繼續關注資本更低、回報更高的機會，例如我們價值 9000 萬美元的夏威夷 SAF 改造項目。我們計劃於 2025 年開始生產該裝置，這將是世界上資本成本最低的 SAF 項目之一。除了再生能源加工之外，我們也積極致力於原料採購和預處理的優勢解決方案。

Finally, two of our four refineries were ENERGY STAR certified by the EPA, illustrating our organizational commitment to energy efficiency and low greenhouse gas emissions in our operations. With the first couple of months of '24 behind us, we are optimistic about the market outlook. Singapore cracks remain robust as Asian inventories remain constructive and high freight costs generally favor local producers like us. Given the level of spring turnaround activity and reasonable US inventories, we expect the mainland market to improve rapidly as we approach summer driving season.

最後，我們的四家煉油廠中的兩家獲得了 EPA 的能源之星認證，體現了我們在營運中對能源效率和低溫室氣體排放的組織承諾。24 世紀的前幾個月已經過去，我們對市場前景持樂觀態度。由於亞洲庫存仍然具有建設性，而且高運費通常有利於像我們這樣的當地生產商，新加坡的裂縫仍然強勁。鑑於春季週轉活動的水平和合理的美國庫存，我們預計隨著夏季駕車季節的臨近，內地市場將迅速改善。

Last year, we demonstrated an ability to increase our financial results in the face of a declining market. This year, we will focus on improving reliability, ensuring that we capitalize on market strength and keeping our markets well supplied. Our company was built on a string of successful acquisitions, so we will also continue to seek opportunities to grow our footprint in contiguous markets and increased our presence in existing markets.

去年，我們展示了在市場下滑的情況下提高財務表現的能力。今年，我們將專注於提高可靠性，確保我們利用市場實力並保持市場供應充足。我們公司是建立在一系列成功收購的基礎上的，因此我們也將繼續尋找機會擴大我們在鄰近市場的足跡，並增加我們在現有市場的影響力。

Before I pass the floor to Will, I want to speak about my decision to step down as Chief Executive Officer at this spring's Annual Meeting and congratulate Will on his promotion to the role of President and CEO. Most of you know that Will and I have worked together for nearly 15 years, and for many of those years, we've collaborated on the development of Par Pacific.

在將發言權交給威爾之前，我想談談我在今年春季的年會上辭去執行長職務的決定，並祝賀威爾晉升為總裁兼執行長。你們大多數人都知道，我和威爾已經合作了近 15 年，其中許多年我們都在合作開發 Par Pacific。

When I took this job, my primary objectives were to ensure that we established a successful and growing enterprise, a differentiated strategy, and most importantly, an organization that could rapidly pursue market opportunities and avoid emerging risks. While leaving this company as CEO, I retain my shareholder and director status confident that Will and his team can expertly manage and grow our business while always preserving local market leadership.

當我接受這份工作時，我的首要目標是確保我們建立一個成功且不斷發展的企業，一個差異化的策略，最重要的是，一個能夠快速抓住市場機會並避免新興風險的組織。在離開這家公司擔任執行長的同時，我保留了我的股東和董事身份，相信威爾和他的團隊能夠熟練地管理和發展我們的業務，同時始終保持當地市場的領導地位。

Will, the floor is yours.

威爾，地板是你的。

Thank you, Bill. Before diving into operational details, I want to take a moment to congratulate and thank the entire team for the significant personal and process safety improvements this year. It takes unwavering, disciplined, alertness, and care to deliver these improvements.

謝謝你，比爾。在深入討論操作細節之前，我想花一點時間祝賀並感謝整個團隊今年在個人和流程安全方面取得的重大改進。要實現這些改進需要堅定不移、自律、警覺和細心。

2023 with the strong operational year for the refining logistics business units. Post Billings acquisition, the average is 194,000 barrels per day of throughput, resulting a 95.5% operational availability. In addition to the Wyoming and Washington EPA ENERGY STAR awards recognizing excellence and overall energy efficiency, our Washington operation also achieved the lowest carbon emissions intensities in the world based upon industry benchmarking studies. Improving energy efficiency is an example of how thoughtful investment and managerial consistency delivers a competitive cost structure while also reducing emissions.

2023 年是煉油物流業務部門強勁營運的一年。收購 Billings 後，平均吞吐量為每天 194,000 桶，營運可用性達到 95.5%。除了懷俄明州和華盛頓州 EPA 能源之星獎表彰卓越性和整體能源效率外，我們的華盛頓工廠還根據行業基準研究實現了世界上最低的碳排放強度。提高能源效率是深思熟慮的投資和管理一致性如何在減少排放的同時提供具有競爭力的成本結構的一個例子。

Fourth-quarter throughput was 186,000 barrels per day, reflecting winter seasonality. October through mid-November market conditions were strong. However, the second half of the quarter saw a deeper than typical seasonal decline for the inland markets.

第四季的吞吐量為每天 186,000 桶，反映了冬季的季節性。10 月至 11 月中旬市場狀況強勁。然而，本季後半段內陸市場的跌幅超出了典型的季節性下降幅度。

In Hawaii, fourth-quarter throughput was 81,000 barrels per day and production costs were $4.80 per barrel. The quarterly Singapore index averaged $19.44 per barrel, and our landed crude differential was $6.96 per barrel, slightly elevated to our guidance. We expect our first quarter for wide crude differentials to average between $6.50 and $7 per barrel. Fourth-quarter capture to the combined index was approximately 134%, reflecting favorable price like benefits.

在夏威夷，第四季的產量為每天 81,000 桶，生產成本為每桶 4.80 美元。新加坡季度指數平均每桶 19.44 美元，我們的到岸原油價差為每桶 6.96 美元，略高於我們的指引。我們預計第一季原油價差平均將在每桶 6.50 美元至 7 美元之間。第四季綜合指數的捕獲率約為 134%，反映了有利的價格等優勢。

In Washington, fourth-quarter throughput was 38,000 barrels per day, and production costs were $4.53 per barrel. The P&W index averaged $17.95 per barrel during the quarter. Capture improved to 44%, reflecting an expanding feedstock advantage versus WTI, partially offset by declining asphalt in VGO realizations.

在華盛頓，第四季的產量為每天 38,000 桶，生產成本為每桶 4.53 美元。本季 P&W 指數平均為每桶 17.95 美元。捕獲率提高至 44%，反映出相對於 WTI 的原料優勢不斷擴大，但部分被 VGO 實現中的瀝青下降所抵消。

Overall throughput was below our targets due to heater system constraints. We are planning to address these issues with an approximate 15-day outage from the first quarter. We expect the outage to impact profitability by $5 million to $8 million.

由於加熱器系統的限制，總吞吐量低於我們的目標。我們計劃從第一季開始進行大約 15 天的停機來解決這些問題。我們預計此次中斷將影響獲利能力 500 萬至 800 萬美元。

In 2023, the Wyoming team set an annual throughput record of 17,600 barrels per day. Great job to the team. Fourth-quarter throughput was 17,000 barrels per day, and production costs were $8.03 per barrel.

2023 年，懷俄明州團隊創下了每天 17,600 桶的年吞吐量紀錄。團隊幹得很好。第四季的產量為每天 17,000 桶，生產成本為每桶 8.03 美元。

The quarterly US Gulf Coast index was $13.71 per barrel, and Wyoming capture was approximately 101% despite an unfavorable FIFO impact of $8 million. Container throughput was 50,000 barrels per day, and production costs totaled $12.03 per barrel. It was elevated due to near-term reliability projects and seasonally elevated energy costs.

美國墨西哥灣沿岸季度指數為每桶 13.71 美元，懷俄明州捕獲率約為 101%，儘管 FIFO 帶來了 800 萬美元的不利影響。貨櫃吞吐量為每天 50,000 桶，生產成本總計為每桶 12.03 美元。由於近期可靠性項目和季節性能源成本上漲，該價格有所上升。

Capture to our Gulf Coast index was 84%, in line with winter seasonal expectations. During the quarter, front Canadian crude differentials widened. However, a combination of slower inventory turns and pipe accounting delay the realization of these benefits. For the first quarter, we expect Hawaii to run between 80,000 and 84,000 barrels per day, Montana between 50,000 and 55,000, Washington between 30,000 and 32,000, and Wyoming between 16,000 and 17,000 barrels per day.

我們的墨西哥灣沿岸指數捕獲率為 84%，符合冬季預期。本季，加拿大原油期貨價差擴大。然而，庫存週轉速度減慢和管道核算相結合，延遲了這些效益的實現。第一季度，我們預計夏威夷的日產量將在80,000 至84,000 桶之間，蒙大拿州的日產量將在50,000 至55,000 桶之間，華盛頓州的日產量將在30,000 至32,000 桶之間，懷俄明州的日產量將在16,000 至17,000 桶之間。

The retail segment delivered a record result for 2023. Adjusted EBITDA was $68 million, driven by impressive same-store sales fuel and merchandise sales growth of 8.8% and 7.8%, respectively. Fourth quarter same-store sales continued the annual trend. The fuel and merchandise growth of 7.3% and 4.2% respectively.

零售業務 2023 年業績創歷史新高。調整後 EBITDA 為 6,800 萬美元，主要得益於同店銷售燃料和商品銷售分別成長 8.8% 和 7.8%。第四季同店銷售延續年度趨勢。燃料和商品成長分別為7.3%和4.2%。

In addition, we opened two new to industry locations in Spokane and Hawaii that are delivering encouraging results in the first months of operations. On the renewables front, our Hawaii SAF project is progressing well. We have broken ground on two renewable feedstock banks on permits and started ordering long lead time equipment for the project.

此外，我們在斯波坎和夏威夷開設了兩個新的行業地點，在營運的頭幾個月中取得了令人鼓舞的成果。在再生能源方面，我們的夏威夷 SAF 專案進展順利。我們已獲得許可，在兩個可再生原料庫上破土動工，並開始為該專案訂購長交貨期設備。

As we look forward to 2024, we are focused on crisp execution of our turnarounds, delivering safe and reliable operations in Hawaii SAF projects. Our retail brands remain focused on delighting the customer and improving the in-store experience via an active remodel and rebuild program.

展望 2024 年，我們專注於快速執行週轉計劃，為夏威夷 SAF 專案提供安全可靠的營運。我們的零售品牌仍然致力於透過積極的改造和重建計劃來取悅顧客並改善店內體驗。

I'll 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表現。

Thank you, Will. The fourth quarter adjusted EBITDA and adjusted earnings were $122 million and $65 million or $1.08 per share. Full year adjusted EBITDA and adjusted earnings were 696,000,501 million or $8.21 per share.

謝謝你，威爾。第四季調整後 EBITDA 和調整後收益分別為 1.22 億美元和 6,500 萬美元，即每股 1.08 美元。全年調整後 EBITDA 和調整後收益為 696,000,501 百萬美元，即每股 8.21 美元。

The refining segment reported $107 million of adjusted EBITDA in the fourth quarter compared to $234 million in the third quarter. Fourth quarter results included net price lag benefit in Hawaii of $41 million, offset by a negative FIFO impact in Wyoming of $8 million and a product crack hedge loss in Hawaii of $4 million. We have continued our crack hedging framework in Hawaii for approximately 28% of our first quarter sales hedged at $20 over gram.

煉油業務第四季調整後 EBITDA 為 1.07 億美元，第三季為 2.34 億美元。第四季業績包括夏威夷 4,100 萬美元的淨價格滯後收益，被懷俄明州 800 萬美元的 FIFO 負面影響和夏威夷 400 萬美元的產品裂縫對沖損失所抵消。我們在夏威夷繼續實施裂縫對沖框架，第一季約 28% 的銷售額以每克 20 美元的價格進行對沖。

Logistic segment reported $24 million of adjusted EBITDA on the fourth quarter compared to $29 million in the third quarter. The softer fourth quarter results were driven by elevated tank and pipeline maintenance costs of $5 million in Montana and Washington. Our retail segment reported $17 million of adjusted EBITDA during the fourth quarter, consistent with third-quarter results.

物流部門第四季調整後 EBITDA 為 2,400 萬美元，而第三季為 2,900 萬美元。第四季業績疲軟的原因是蒙大拿州和華盛頓州的儲槽和管道維護成本增加了 500 萬美元。我們的零售部門在第四季度調整後 EBITDA 為 1700 萬美元，與第三季業績一致。

Cash provided by operations in the fourth quarter totaled $130 million, excluding a net working capital outflow of $132 million. The primary component of the net working capital outflow was associated with the cash settlement of prior periods' environmental credits. Cash outflows from investing activities during the fourth quarter totaled $27 million, primarily driven by capital expenditures. Total liquidity at year end was $644 million, made up of $279 million in cash and $365 million in availability.

第四季營運提供的現金總額為 1.3 億美元，不包括 1.32 億美元的淨營運資本流出。淨營運資本流出的主要部分與前期環境信貸的現金結算有關。第四季投資活動現金流出總計 2,700 萬美元，主要由資本支出推動。年末流動資金總額為 6.44 億美元，其中現金 2.79 億美元，可用資金 3.65 億美元。

As Bill mentioned, our company has demonstrated exceptional performance over the past two years, generating over $1 billion in cash flow from operations. During this period, we successfully completed the highly accretive Billings acquisition for $310 million, improved liquidity by more than $465 million, strategically repurchased $68 million of common stock at an average price of less than $30 per share, and fully retired our legacy rent obligations.

正如 Bill 所提到的，我們公司在過去兩年中表現出色，營運現金流超過 10 億美元。在此期間，我們以3.1 億美元的價格成功完成了對Billings 的高增值收購，流動性提高了超過4.65 億美元，以每股不到30 美元的平均價格戰略性地回購了6800 萬美元的普通股，並完全解除了我們的遺留租金義務。

We also completed a comprehensive refinancing last year, consolidating multiple tranches of high-cost debt into a single term loan. In October, we further optimize our working capital financing for determination of the Tacoma intermediation facility and simultaneous upsize of our ABL to $900 million. We expect our streamlined capital structure to reduce cash funding costs by more than $10 million this year with nearly $650 million in liquidity and a promising outlook into 2024. We stand well positioned to achieve our strategic growth objectives and remain committed to opportunistically repurchasing our stock at attractive prices.

去年我們也完成了全面的再融資，將多批高成本債務合併為一筆定期貸款。10 月份，我們進一步優化了我們的營運資金融資，以確定塔科馬中介機構，同時將我們的 ABL 規模擴大到 9 億美元。我們預計，今年精簡的資本結構將減少超過 1,000 萬美元的現金融資成本，流動性接近 6.5 億美元，2024 年前景樂觀。我們處於有利地位，可以實現我們的策略成長目標，並繼續致力於以具有吸引力的價格機會回購我們的股票。

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

我們準備好的演講到此結束。接線員，我們會將其轉給您進行問答。

(Operator Instructions) Matthew Blair, Tudor, Pickering, Holt.

（操作員說明）Matthew Blair、Tudor、Pickering、Holt。

Thank you and good morning. And Bill and Will, congrats on your respective moves. I have a question about the M&A market, which you indicated that the Par would still be interested in. Is deal flow picking up with the prospects of just a lower interest rate environment later this year? And could you also talk about what opportunities to be attractive, both by business line as well as by geography?

謝謝你，早安。比爾和威爾，祝賀你們各自的舉動。我有一個關於併購市場的問題，您表示 Par 仍會對這個市場感興趣。由於今年稍後利率環境較低，交易量是否會增加？您能否談談從業務線和地理位置來看，哪些機會具有吸引力？

Sure, Matthew. It's Will. Thanks for the question and appreciate your comments.

當然，馬修。是威爾。感謝您的提問並感謝您的評論。

So I think in general, M&A has been a key part of our strategy as we've grown. And that said, I think on the refining side of the market, given the strength that we've seen on market conditions over the last 24 months, I think it's definitely a challenging environment to trying to get a deal done. Again, I think seller expectations are high, and I think that's going to be a major factor. So I think that's really the backdrop.

所以我認為總的來說，隨著我們的成長，併購一直是我們策略的關鍵部分。也就是說，我認為在煉油市場方面，考慮到我們在過去 24 個月中看到的市場狀況的強勁，我認為這對於試圖完成交易來說絕對是一個具有挑戰性的環境。同樣，我認為賣家的期望很高，我認為這將是一個主要因素。所以我認為這確實是背景。

I think when you think about geography, it's really the focus that we've had previously. I think we're focused on Western United States largely because it fits our strategy of serving communities with liquid conventional and renewable fuels that are really in niche locations. And so I think that's going to be our focus, and that's going to be true across both refining, logistics, and retail.

我認為當你想到地理時，這確實是我們之前關注的焦點。我認為我們關注美國西部主要是因為它符合我們為社區提供液體傳統燃料和再生燃料的策略，這些燃料確實位於利基地區。所以我認為這將是我們的重點，在煉油、物流和零售領域都是如此。

Sounds good. And then you mentioned that this rising freight rate environment is helpful for Par. Could you just walk through the moving parts there? Is that because the marginal source of supply coming into Hawaii is an imported barrel from Asia?

聽起來不錯。然後您提到這種運費上漲的環境對Par有幫助。能簡單介紹一下那裡的活動部件嗎？這是因為進入夏威夷的邊際供應來源是從亞洲進口的桶子嗎？

Matt, this is Bill. That's one of the factors. I mean, generally, in Asia, despite weak economic news, inventories have been pretty supportive, and I think one of the reasons of stronger cracks.

馬特，這是比爾。這是因素之一。我的意思是，總體而言，在亞洲，儘管經濟消息疲軟，但庫存一直相當有支撐性，我認為這是裂縫加劇的原因之一。

And I think one of the reasons that a lot of the export refineries, they're spot streams, have to factor in higher freight costs. So when you -- there's less movement and the refineries tend to focus more on local production environment where it's harder to move things around. And when you're also with some of the restrictions in the Red Sea and restrictions even in the Panama Canal, product movement just slow down. And we're fortunate to have refineries that are sitting right on top of our markets.

我認為許多出口煉油廠（它們是現貨流）必須考慮更高的運費的原因之一。因此，當你——流動較少時，煉油廠往往會更專注於當地的生產環境，而在當地的生產環境中，很難移動東西。當紅海和巴拿馬運河也受到一些限制時，產品運輸就會減慢。我們很幸運擁有位於市場頂端的煉油廠。

And Matt, the only thing I'd add to that is just, in general, when you think about both the West Coast and Hawaii, particularly for the distillate pool, the marginal barrel is moving in typically on MR freight from Northeast Asia. So I think, particularly, when you think about diesel and jet, that's a major factor for the marginal barrel.

馬特，我唯一要補充的是，一般來說，當你想到西海岸和夏威夷時，特別是對於餾分油池來說，邊際桶通常是透過來自東北亞的 MR 貨運進入的。所以我認為，特別是當你考慮柴油和噴氣機時，這是邊際桶的一個主要因素。

Great. Thanks for your comments.

偉大的。感謝您的意見。

John Royall, J.P. Morgan.

約翰‧羅亞爾，摩根大通。

Hi, good morning. Thanks for taking my question and congratulations to Bill and Will. So my first question is on Billings, can you speak to the reliability work that you'll be doing with the turnaround this year? I know the goal is to get up consistently around that 60 kbd plus level. How does this work enable that? And is there a numerator impact on OpEx per barrel of the work you'll be doing? Or is it really just about raising throughputs?

早安.感謝您提出我的問題並祝賀比爾和威爾。我的第一個問題是關於比林斯的，您能談談今年您將在扭虧為盈時所做的可靠性工作嗎？我知道目標是始終保持 60 kbd 以上的水平。這項工作如何實現這一點？您將要做的工作對每桶營運支出是否有分子影響？或者它真的只是為了提高吞吐量嗎？

Sure, John. This is Will. So we're really focused on summer reliability and Billings. I think that's first and foremost. And as you saw from the third quarter contribution last year in a strong market environment, that's really when you've got the opportunity to generate significant cash flows.

當然，約翰。這是威爾。因此，我們真正關注的是夏季可靠性和比林斯。我認為這是首要的。正如您在強勁的市場環境下從去年第三季的貢獻中看到的那樣，這確實是您有機會產生大量現金流的時候。

So I think the focus on our turnaround this year is really on the crude unit, and ultimately getting to a better reliability position there, probably adding some additional alloy to ensure that we're well positioned to reduce corrosion risks. And then ultimately, when you think about the OpEx impacts, again, I think our objectives remain targeting that $10 per barrel number. Again, I think that's -- as we push towards the 60 kbd number, that's going to be more achievable. So again, that's really the focus of this year's turnaround activities, and it's all about summer reliability.

因此，我認為今年我們扭虧為盈的重點實際上是原油裝置，並最終在那裡獲得更好的可靠性，可能會添加一些額外的合金，以確保我們能夠很好地降低腐蝕風險。最終，當你考慮到營運支出的影響時，我認為我們的目標仍然是每桶 10 美元。我再次認為，隨著我們朝 60 kbd 的目標邁進，這個目標將更容易實現。再說一遍，這確實是今年扭虧為盈活動的重點，而這一切都與夏季可靠性有關。

Great. Thank you. And then my second question is on the buyback. Really strong case in the second half of '23 after you completed Billings. But this year, it'll be a little bit different from a CapEx and a maintenance perspective, but you don't know so -- you also don't have to delever. So some moving pieces in both directions. How should we think about the run rate going forward relative to that 2H run rate where you had strong cracks and no turnarounds?

偉大的。謝謝。我的第二個問題是關於回購。在你完成比林斯之後，23 年下半年的情況非常強烈。但今年，從資本支出和維護的角度來看，情況會有所不同，但你不知道這一點——你也不必去槓桿化。所以有些東西是雙向移動的。我們應該如何考慮相對於 2 小時運行率的未來運行率（在這種情況下，你有強烈的裂縫並且沒有周轉）？

Yeah, John. Hey, this is Shawn. I think we've demonstrated our buyback cadence in the recent quarters of 27 in Q3 and 32 in Q4. Look, I think our liquidity is strong. We've got excess capital today. I suspect we'll be able to fund our capital requirements within cash flow.

是的，約翰。嘿，這是肖恩。我認為我們已經在最近幾季展示了我們的回購節奏，第三季有 27 個季度，第四季有 32 個季度。你看，我認為我們的流動性很強。我們今天有多餘的資本。我懷疑我們將能夠在現金流範圍內滿足我們的資本需求。

So we've got ample capacity on the balance sheet to continue the buyback program. Obviously, we want to be opportunistic. And as you see, if and when you see our share price pullback in a weaker market, we're going to get more aggressive on our cadence of buybacks. So our approach there has not changed.

因此，我們的資產負債表上有足夠的能力來繼續回購計劃。顯然，我們想要機會主義。正如您所看到的，如果當您看到我們的股價在疲軟的市場中回調時，我們將更加積極地進行回購。所以我們的做法沒有改變。

Neil Mehta, Goldman Sachs.

尼爾梅塔，高盛。

Hi, good morning. Thank you for taking the time. This is Nicolette Slusser on for Neil Mehta. Bill, thank you for your leadership and all the contributions over the years. And Will, congratulations on the new role.

早安.感謝您抽出時間。我是尼可萊特·斯魯瑟 (Nicolette Slusser) 為尼爾·梅塔 (Neil Mehta) 配音。比爾，感謝您的領導和多年來的所有貢獻。威爾，恭喜你擔任新角色。

Our first question is when we think about the business mix, I think Par's a bit more discipline oriented versus peers at roughly 50%. Longer term and mindful of potential for opportunistic M&A, do you see the 50% distillate yield as an optimal product level for the business?

我們的第一個問題是，當我們考慮業務組合時，我認為與同行相比，Par 更注重紀律，大約是 50%。從長遠來看，考慮到機會主義併購的潛力，您是否認為 50% 的餾分油​​收率是企業的最佳產品水準？

Sure. I think you -- we're going to continue to train folks on the distillate side of the barrel. I think long term that is ultimately what the communities we serve need. And ultimately, I think that's going to be portion of the barrel that's going to frankly pull the weighted average crack over time. And so I think you'll continue to see our focus be on distillate production and even trying to increase flexibility on distillate production in places like Billings.

當然。我認為我們將繼續對蒸餾桶側的人員進行培訓。我認為從長遠來看，這最終是我們所服務的社區所需要的。最終，我認為這將成為隨著時間的推移坦率地拉動加權平均裂縫的一部分。因此，我認為您將繼續看到我們的重點是餾分油生產，甚至試圖提高比林斯等地餾分油生產的靈活性。

Okay. That's great. Thank you.

好的。那太棒了。謝謝。

And then the follow-up is just on some of the longer-term opportunities the company is pursuing. Can you just remind us where we stand in regards to the FID expected this year on the longer-term Washington hydrogen and SAF facilities and how you're balancing those with the near term renewable oriented projects as well?

然後後續只是公司正在追求的一些長期機會。您能否提醒我們，對於今年預期的華盛頓長期氫能和 SAF 設施的最終投資決定 (FID) 的立場，以及您如何平衡這些項目與近期可再生能源導向項目？

Sure. So I think we're continuing to pursue the engineering on that front. And simultaneously, I think trying to evaluate capital partners that would be available to pursue that project. Again, there's still certain aspects of it that are attractive, given its location on the West Coast and a favorable jurisdiction.

當然。所以我認為我們將繼續在這方面進行工程設計。同時，我認為嘗試評估可用於實施該專案的資本合作夥伴。同樣，鑑於其位於西海岸的位置和有利的司法管轄區，它的某些方面仍然具有吸引力。

And that said, I think we're mindful of the current renewable backdrop and what that means for returns. And I think we'll continue to be disciplined on our capital allocation framework and how we think about growing the renewables business segment.

也就是說，我認為我們注意到當前的再生能源背景以及這對回報意味著什麼。我認為我們將繼續嚴格遵守我們的資本配置框架以及我們如何考慮發展再生能源業務部門。

Thank you very much.

非常感謝。

(Operator Instructions) Jason Gabelman, Cowen.

（操作員說明）Jason Gabelman，Cowen。

Yeah, hey, thanks for taking my questions. You noted some paydown in environmental liabilities with 4Q results, which I'm assuming are related to rents. Do you have any outstanding rent obligation that you'll need paydown moving forward beyond what's typical annual amount that you would hold?

是的，嘿，謝謝你回答我的問題。您注意到第四季度業績中環境負債的一些償還，我認為這與租金有關。您是否有任何未償還的租金義務，需要在超出您持有的典型年度金額的情況下支付？

Hi, Jason, It's Shawn. No, we've closed out all of the legacy rent obligations. And we're just obviously accruing our current obligation and procuring rents ratably from here.

嗨，傑森，我是肖恩。不，我們已經結束了所有遺留的租金義務。顯然，我們只是在累積當前的義務並從這裡按比例獲取租金。

Got it on. And then, can you remind us of your upcoming turnaround schedule that you mentioned in Montana turnaround? Do you have anything else this year and then as you look to 2025?

穿上了。然後，您能否提醒我們您在蒙大拿州週轉中提到的即將到來的周轉時間表？今年以及展望 2025 年，您還有什麼其他計畫嗎？

So Jason, I think nothing else major planned this year. Again, I think if you heard my reference to the small 15-day outage we're planning in Washington, again, that's I think something we're largely looking to trying to manage from inventory. There is some profit impact, and you'll see the reduced throughput expectations for the first quarter.

所以傑森，我認為今年沒有其他重大計劃。再說一次，我想如果你聽到我提到我們計劃在華盛頓進行 15 天的小規模停電，我認為這就是我們主要希望透過庫存來管理的事情。這會對利潤產生一些影響，您會看到第一季的吞吐量預期有所下降。

And then again, I think we discussed on Billings that we expect in '24 and '25 to complete really the full turnaround cycle. And so again, if you look at our guidance, we've signaled really that $18 million to $22 million per year in the typical cycles, five to six years. And so again, I think we're looking at completing that full cycle between '24 and '25.

再說一次，我認為我們討論了比林斯，我們預計在 24 和 25 年真正完成完整的周轉週期。再說一次，如果你看看我們的指導，我們實際上已經表示，在五到六年的典型週期中，每年確實需要 1800 萬到 2200 萬美元。再說一遍，我認為我們正在考慮在 24 至 25 年間完成整個週期。

Okay, great. Thank you.

好的，太好了。謝謝。

Thanks.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Will Monteleone, President, for any closing remarks.

我們的問答環節到此結束。我想將會議轉交主席威爾·蒙特萊昂 (Will Monteleone) 發表閉幕詞。

Great. Thank you again for joining us today. In closing, I'd like to recognize Bill for his many contributions to our company success. We're grateful for his inspiring leadership, wisdom, and humility.

偉大的。再次感謝您今天加入我們。最後，我要感謝比爾為我們公司的成功所做的許多貢獻。我們感謝他鼓舞人心的領導、智慧和謙遜。

We have a strong business outlook, and our talented management team is hungry to drive the next chapter of our growth. I'm excited by the opportunity to lead this growing enterprise into the future. Thank you to our shareholders for your support. Have a nice day.

我們擁有強大的商業前景，我們才華橫溢的管理團隊渴望推動我們發展的下一個篇章。我很高興有機會帶領這家不斷成長的企業走向未來。感謝我們的股東的支持。祝你今天過得愉快。

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。您現在可以斷開連線。