Par Pacific Holdings Inc (PARR) 2025 Q1 法說會逐字稿

Good day and welcome to the Par Pacific first-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would like now to turn the conference over to Ashimi Patel, Vice President of Investor Relations. Please go ahead.

大家好，歡迎參加 Par Pacific 2025 年第一季財報電話會議。（操作員指示）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副總裁 Ashimi Patel。請繼續。

Thank you, Alan. Welcome to Par Pacific's first-quarter earnings conference call. Joining me today are Will Monteleone, President and Chief Executive Officer; Richard Creamer, EVP of Refining and Logistics; and Shawn Flores, SVP and Chief Financial Officer.

謝謝你，艾倫。歡迎參加 Par Pacific 第一季財報電話會議。今天與我一起出席的還有總裁兼首席執行官 Will Monteleone；煉油和物流執行副總裁 Richard Creamer；以及高級副總裁兼首席財務官肖恩·弗洛雷斯 (Shawn Flores)。

Before we begin, note that our comments today may include forward-looking statements. Any forward-looking statements are subject to change and are not guaranteed 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. I'll now turn the call over to our President and Chief Executive Officer, Will Monteleone.

在我們開始之前，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表現或事件。它們受風險和不確定性的影響，實際結果可能與這些前瞻性陳述有重大差異。因此，投資者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任何義務。我請您參閱我們網站上的投資者介紹以及我們向美國證券交易委員會提交的非公認會計準則對帳表和其他資訊。現在我將把電話轉給我們的總裁兼執行長威爾蒙特萊昂 (Will Monteleone)。

Thank you, Ashimi, and good morning, everyone. The first quarter adjusted EBITDA was $10 million and adjusted net loss was $0.94 per share. First quarter results reflect off-season conditions and the impacts of the Wyoming average. Market conditions are improving, and our combined index is up by $6 per barrel so far this quarter.

謝謝你，Ashimi，大家早安。第一季調整後的 EBITDA 為 1,000 萬美元，調整後的淨虧損為每股 0.94 美元。第一季的結果反映了淡季條件和懷俄明州平均值的影響。市場狀況正在改善，本季迄今我們的綜合指數已上漲每桶 6 美元。

The Asian market remains narrowly balanced, and our outlook for our whole refining business is strong. Meanwhile, the West Coast is benefiting from reduced supply from planned and unplanned maintenance, which is also tightening the western portions of the Rocky Mountain region. As we near completion of the Montana turnaround, we are focused on safely and reliably increasing rates for the summer driving season.

亞洲市場保持窄幅平衡，我們對整個煉油業務的前景看好。同時，西海岸因計劃內和計劃外維護而減少供應，這也導致落基山脈地區西部的供應緊張。隨著蒙大拿州轉型工作即將完成，我們正致力於安全可靠地提高夏季駕駛季節的費率。

Our retail business continues to deliver solid results. Quarterly, same store, fuel and in-store revenue increased by 0.5% and 1.8% compared to the first quarter of 2024. Underlying profitability also improved, as demonstrated by our last 12 months, total adjusted EBITDA exceeding $80 million for the first time. We made considerable progress on key strategic objectives during the quarter and opportunistically reduced our shares outstanding by 5% compared to the end of 2024. We are well on our way to achieving our strategic priorities for the year.

我們的零售業務持續取得穩健的業績。本季度，同店、燃油和店內收入與 2024 年第一季相比分別成長了 0.5% 和 1.8%。基本獲利能力也有所提高，正如我們過去 12 個月所證明的那樣，總調整後 EBITDA 首次超過 8000 萬美元。本季度，我們在關鍵策略目標上取得了長足進展，並與 2024 年底相比，適時減少了 5% 的流通股。我們正在順利實現今年的戰略重點。

In Montana, we remain on time and on budget and are nearing mechanical completion of the turnaround. This outage reflects Montana's last major plan turnaround for the next four to five years. It also signals the transition of our efforts towards enhancing flexibility and competitiveness. In Wyoming, I would like to recognize the efforts of the team and safely bringing the facility back to full rates approximately one month early compared to our initial plans. Thank you, all. In Hawaii, SAF project construction is progressing to plan and remains scheduled for startup in the second half of the year. We have received and set major equipment and are proceeding with on-site work to complete the project. Despite policy uncertainty, our outlook for the project remains constructive due to the flexibility and structural advantages of the project.

在蒙大拿州，我們按時、按預算完成了工程，並且即將完成機械改造。此次停電是蒙大拿州未來四到五年內最後一次重大計畫轉變。這也標誌著我們的努力轉向提高靈活性和競爭力。在懷俄明州，我要表彰團隊的努力，與我們最初的計劃相比，該設施提前約一個月安全地恢復滿載運作。謝謝大家。在夏威夷，SAF項目建設正在按計劃進行，預計下半年啟動。我們已經接收並安裝好主要設備，並正在進行現場工作以完成該專案。儘管政策存在不確定性，但由於該專案的靈活性和結構優勢，我們對該專案的前景仍然持建設性態度。

On island, commercial interest from airlines and other customers is encouraging as we move towards commissioning the project. And finally, we have progressed cost reduction efforts and are confident in achieving our previously stated targets. We remain in an excess capital position with any liquidity of $525 million after completing share repurchases and progressing our major strategic items in the quarter. Our current share count is now below 52 million, a level we haven't seen since 2019. Since then, our business is fundamentally stronger.

在島上，隨著我們逐步啟動該項目，來自航空公司和其他客戶的商業興趣令人鼓舞。最後，我們在降低成本方面取得了進展，並有信心實現我們先前提出的目標。在本季完成股票回購並推進主要策略項目後，我們仍處於資本過剩狀態，流動性為 5.25 億美元。我們目前的股票數量低於 5,200 萬股，這是自 2019 年以來從未見過的水平。自此以後，我們的業務從根本上變得更加強大。

We benefit from structural earnings improvements in places like Hawaii, a broader geographic footprint and business segment diversity, all of which contribute to a more durable earnings profile. We are well positioned to manage the business through a range of environments while creatively growing our per share earnings power. Our free cash flow outlook is improving due to solid demand in our niche markets and a significant decline in the capital requirements in the second half of the year. I'll now turn the call over to Richard to discuss our refining and logistics operations.

我們受益於夏威夷等地的結構性獲利改善、更廣泛的地理覆蓋範圍和業務部門的多樣性，所有這些都有助於實現更持久的獲利狀況。我們有能力在各種環境下管理業務，同時創造性地提高每股收益能力。由於我們利基市場需求強勁以及下半年資本需求大幅下降，我們的自由現金流前景正在改善。現在我將把電話轉給理查德，討論我們的煉油和物流業務。

Thank you, Will. First quarter combined throughput was 176,000 barrels per day. In Hawaii, throughput was 79,000 barrels per day, and production costs were $4.81 per barrel. Throughput was impacted by planned maintenance outage that included making final tie-ins for the Hawaii SAF project, reform or regeneration, and other routine maintenance. The completed activities paved the runway for our mid-year 2026 turnaround.

謝謝你，威爾。第一季總吞吐量為每天 176,000 桶。在夏威夷，產量為每天 79,000 桶，生產成本為每桶 4.81 美元。吞吐量受到計劃維護停機的影響，其中包括為夏威夷 SAF 項目進行最後的連接、改造或再生以及其他例行維護。已完成的活動為我們 2026 年中期的轉變鋪平了道路。

Washington throughput was 39,000 barrels per day and production costs were $4.16 per barrel. Washington completed a reform outage in Q1 and throughput is reflective of seasonal demand on the West Coast.

華盛頓的產量為每天 39,000 桶，生產成本為每桶 4.16 美元。華盛頓在第一季完成了改革停運，其吞吐量反映了西海岸的季節性需求。

Shifting to Wyoming, I'm very pleased to report that the refinery safely returned to normal operations in late April following the mid-February furnace incident. The return to refinery operations is a full month ahead of our previous guidance of late May.

轉到懷俄明州，我很高興地報告，在二月中旬發生熔爐事故後，該煉油廠於四月底安全恢復正常運作。煉油廠恢復營運的時間比我們 5 月底的預期提早了整整一個月。

In addition to Will's comments, I want to take a moment to acknowledge the local team in Newcastle and the various support groups for their unwavering commitment to rebuilding and returning to operations safely and efficiently. Throughput in the first quarter was 6,000 barrels per day, and OpEx was elevated by $6 million due to the outage. We expect an additional $4 million in the second quarter.

除了威爾的評論之外，我還想藉此機會感謝紐卡斯爾當地團隊和各個支持團體，感謝他們堅定不移地致力於重建並安全有效地恢復運營。第一季的產量為每天 6,000 桶，由於停電，營運成本增加了 600 萬美元。我們預計第二季還將增加 400 萬美元。

Finally, in Montana, first quarter throughput was 52,000 barrels per day, and production costs were $10.56 per barrel. As previously mentioned, the refinery team began the FCC and (inaudible) turnaround in early April and are now nearing mechanical completion with rear forthcoming. There have been a minimal amount of discovery items and critical path objectives have tracked the schedule. I can report that the turnaround is wrapping up on schedule and within cost targets. Oil and restart should occur in mid-May ahead of the summer driving season in the Rockies.

最後，在蒙大拿州，第一季的產量為每天 52,000 桶，生產成本為每桶 10.56 美元。如前所述，煉油廠團隊於 4 月初開始進行 FCC 和（聽不清楚）週轉，目前已接近機械完工，後部即將完工。已經有最少量的發現專案和關鍵路徑目標追蹤了進度。我可以報告，轉變正在按計劃完成，並且沒有超出成本目標。換油和重啟應在五月中旬進行，以迎接落基山脈夏季駕駛季節的到來。

Following the Montana activities, we have no major maintenance across our system for the remainder of the year. We are pleased with our progress to date on completing our first half focus on turnarounds and projects. This is setting the stage for the second half of reduced spending and a focus on building flexibility and reliability.

繼蒙大拿州的活動之後，我們在今年剩餘時間內無需對整個系統進行重大維護。我們對迄今為止在完成上半年重點扭虧為盈和專案方面的進展感到滿意。這為下半年削減開支並專注於建立靈活性和可靠性奠定了基礎。

Looking ahead to the second quarter, we expect Hawaii throughput between 81,000 and 85,000 barrels per day, Washington between 40,000 and 42,000, Wyoming between 13,000 and 15,000, and Montana between 44,000 and 47,000 barrels per day, which reflects reduced rates during the turnaround. This results in a system-wide throughput between 178,000 and 189,000 barrels per day. I'll now turn the call over to Shawn to cover our financial results.

展望第二季度，我們預計夏威夷的吞吐量在每天 81,000 至 85,000 桶之間，華盛頓州在 40,000 至 42,000 桶之間，懷俄明州在 13,000 至 15,000 桶之間，蒙大拿州在每天 4,000 至 47,000 桶期間的費率在 47,000 至 47,000 桶期間。這使得整個系統的吞吐量達到每天 178,000 至 189,000 桶。現在我將把電話轉給肖恩來介紹我們的財務表現。

Thank you, Richard. First quarter adjusted EBITDA and adjusted earnings were $10 million and a loss of $50 million or 95 -- $0.94 per share. A refining segment reported adjusted EBITDA loss of $14 million in the first quarter compared to a loss of $22 million in the fourth quarter.

謝謝你，理查。第一季調整後的 EBITDA 和調整後的收益為 1000 萬美元，虧損 5000 萬美元或每股 95-0.94 美元。煉油部門報告第一季調整後 EBITDA 虧損 1,400 萬美元，而第四季虧損 2,200 萬美元。

In Hawaii, the Singapore 3.1.2 averaged $13.12 per barrel, and our crude differential was $4.99, resulting in a Hawaii index of $8.13 per barrel. Hawaii margin capture was 109%, including a combined $4 million benefit from price lag and product crack hedging. Looking to the second quarter, our Hawaii crude differential is expected to land between $5 and $5.50 per barrel.

在夏威夷，新加坡 3.1.2 平均價格為每桶 13.12 美元，而我們的原油差價為 4.99 美元，因此夏威夷指數為每桶 8.13 美元。夏威夷的利潤率為 109%，其中包括價格滯後和產品裂解避險帶來的總計 400 萬美元的收益。展望第二季度，我們預計夏威夷原油差價將在每桶 5 美元至 5.50 美元之間。

In Wyoming, our index averaged $20.31 per barrel and capture was 98% near the top end of our guidance range. Favorable capture reflects higher sales volumes relative to throughput, driven by a drawdown of a refined product inventory during the outage. Under FIFO accounting, the capture impacts of the refinery downtime will be primarily reflected in our gross margin from early March to mid-May.

在懷俄明州，我們的指數平均為每桶 20.31 美元，捕獲率為 98%，接近我們指導範圍的最高端。有利的捕獲反映了相對於吞吐量而言更高的銷售量，這是由於停產期間精煉產品庫存的減少所致。根據先進先出法會計，煉油廠停工的影響將主要反映在 3 月初至 5 月中旬的毛利率。

In Montana, our index averaged $7.07 per barrel and capture was 71%, driven by lower product yields as we approach the turnaround. Looking to the second quarter, we expect the margin capture impacts of the FCC and (inaudible) turnaround to be partially mitigated by a drawdown of clean product inventories.

在蒙大拿州，我們的指數平均為每桶 7.07 美元，捕獲率為 71%，這是由於我們接近轉折點時產品產量下降所致。展望第二季度，我們預期 FCC 和（聽不清楚）扭虧為盈對利潤的影響將因清潔產品庫存的減少而得到部分緩解。

Lastly, our Washington index averaged $4.15 per barrel and capture was 50%. Increased refinery maintenance and below average product inventory levels have lifted margins in the Pacific Northwest and Northern Rockies. For today, our Washington and Montana market indices have improved by approximately $8 and $14 per barrel, respectively, compared to the first quarter.

最後，我們的華盛頓指數平均為每桶 4.15 美元，捕獲率為 50%。煉油廠維護增加和低於平均水準的產品庫存水準提高了太平洋西北部和北落基山脈地區的利潤率。今天，我們的華盛頓和蒙大拿市場指數與第一季相比分別上漲了約每桶 8 美元和 14 美元。

Moving to the logistics segment, first quarter of adjusted EBITDA was $30 million in line with our mid-cycle run rate guidance. Strong system utilization in Hawaii and Montana offset lower pipeline throughput in Wyoming. Our retail segment reported adjusted EBITDA of $19 million during the first quarter compared to $22 million in the fourth quarter. The above mid-cycle results continue to reflect improving in-store performance and strong fuel margins.

轉向物流部門，第一季調整後的 EBITDA 為 3000 萬美元，符合我們的中期運作率指引。夏威夷和蒙大拿州的強勁系統利用率抵消了懷俄明州管道吞吐量的下降。我們的零售部門報告第一季調整後的 EBITDA 為 1,900 萬美元，而第四季為 2,200 萬美元。上述中期業績持續反映出店內業績的改善和強勁的燃油利潤率。

Corporate expenses and adjusted the EBITDA were $24 million in the first quarter. On our broader cost reduction initiative, we remain on track to achieve $30 million to $40 million in annual savings relative to 2024. Excluding the Wyoming repair expenses, consolidated operating costs of $203 million for a $22 million reduction relative to the first quarter of last year.

第一季公司費用和調整後的 EBITDA 為 2,400 萬美元。在我們更廣泛的成本削減計劃中，我們仍有望實現相對於 2024 年每年節省 3,000 萬至 4,000 萬美元的目標。不包括懷俄明州的維修費用，綜合營運成本為 2.03 億美元，與去年第一季相比減少了 2,200 萬美元。

Turning to cash flows, cash used in operations was $1 million. This includes $28 million of turnaround expenditures and a $42 million working capital inflow, primarily driven by a reduction in pre-paid assets, which returned to typical levels during the quarter. Cash use and investing activities totaled $41 million primarily driven by capital expenditures.

談到現金流，營運所用現金為 100 萬美元。其中包括 2,800 萬美元的周轉支出和 4,200 萬美元的營運資金流入，主要由於預付資產減少，本季已恢復到正常水準。現金使用和投資活動總額為 4,100 萬美元，主要由資本支出推動。

Shifting to capital allocation, we repurchase $51 million of common stock in the first quarter, reducing basic shares outstanding by 5%. We will maintain an opportunistic approach to share repurchases, adapting to changes in our share price and cash flow outlook.

轉向資本配置，我們在第一季回購了價值 5,100 萬美元的普通股，減少了 5% 的基本流通股。我們將維持機會主義的股票回購方式，以適應股價和現金流前景的變化。

Gross term debt as of March 31 was $642 million or 3.2 times our retail logistics LTME EBITDA at the low end of our 3 to 4 times leverage target. With $525 million of liquidity as of March 31, our balance sheet remains well capitalized with excess liquidity to support our strategic priorities moving forward. This concludes our prepared remarks. Alan, we'll turn it back to you for Q&A.

截至 3 月 31 日的總定期債務為 6.42 億美元，相當於我們零售物流 LTME EBITDA 的 3.2 倍，處於我們 3 至 4 倍槓桿目標的低端。截至 3 月 31 日，我們的資產負債表擁有 5.25 億美元的流動資金，資本充足，並擁有過剩的流動資金來支持我們未來的策略重點。我們的準備好的演講到此結束。艾倫，我們會把問題交還給您問答。

(Operator Instructions)

（操作員指示）

Matthew Blair, Tudor Pickering & Co.

馬修布萊爾，都鐸皮克林公司

Great. Thank you and good morning and congrats on repairing Wyoming and getting it back up. Could you talk about the factors that came in better than expected and allowed you to restart it about a month earlier compared to your original guidance?

偉大的。謝謝，早安，恭喜懷俄明州修復並恢復正常。您能否談談哪些因素比預期更好，並允許您比最初的指導提前一個月重啟？

Yeah, Matthew, this is Richard. The team there in Wyoming supported with some of the other Par resources from other plants, really stepped up and really drove the activities. And also, the third-party contractors that we had both on site and off-site supporting us with materials and resources stepped up in a big way as well. So just an efficient team effort to pull together and respond to the incident and bring it back online. It was a great effort overall.

是的，馬修，這是理查。懷俄明州的團隊在其他工廠的一些 Par 資源的支持下，真正發揮了作用並推動了活動。此外，現場和場外為我們提供材料和資源支援的第三方承包商也大力支持。因此，只需高效的團隊努力，齊心協力應對該事件並使其恢復正常。整體來說，這是一次偉大的努力。

Matt, the only thing I'd add is just a strong response from the team, during kind of immediately following the event, we had some really cold weather following that. The team did a great job of stabilizing the plant, preventing any additional damage.

馬特，我唯一要補充的是團隊的強烈反應，在活動結束後不久，我們遇到了一些非常寒冷的天氣。該團隊在穩定工廠、防止任何額外損害方面做得非常出色。

Sounds good. And then the follow-up is on the crude differential picture currently seeing quite tight, heavy Canadian discounts. So can you talk about factors driving those tight discounts and what's your outlook for the remainder of the year?

聽起來不錯。然後，接下來是粗略的差異圖，目前看到加拿大的折扣相當緊張、很大。那麼，您能談談導致這些折扣幅度較小的因素以及您對今年剩餘時間的展望嗎？

Sure, Matt. I think it's the highest level year in an excess pipeline capacity position out of Canada for the time being. And ultimately, I think that's allowing the inland kind of Hardesty differentials to reflect, I just say a looser than normal transportation situation. And so, I think, right now, there's probably a $7 to $8 spread between the value of Canadian heavy and Hardesty versus on the Gulf Coast, and that's probably inside pipeline costs at the moment. So I think it suggests a quite tight market as you're mentioning. And ultimately, I think that's something that's likely to persist until you see production increase sufficiently to absorb the pipeline capacity that's in place in Canada.

當然，馬特。我認為這是目前加拿大管道產能過剩程度最高的一年。最終，我認為這將使內陸的哈迪斯蒂差異得到體現，我只是說運輸狀況比正常情況更為寬鬆。因此，我認為，目前，加拿大重質原油和哈迪斯蒂原油的價格與墨西哥灣沿岸的價格之間可能存在 7 至 8 美元的差價，這可能是目前的管道成本。所以我認為，正如您所說，這表明市場相當緊張。最終，我認為這種情況可能會持續下去，直到產量增加到足以吸收加拿大現有的管道容量為止。

Ryan Todd, Piper Sandler.

瑞恩·托德、派珀·桑德勒。

So there's been quite a bit of moving pieces looking at West Coast markets and by extension, Asian markets, including asset outages and announced closures. Can you talk about what you're seeing in terms of knock-on effects in your West Coast and Rockies markets and in terms of supply demand? And maybe even what you think the potential impact of rising product imports from Asia to California could mean for your Hawaii market.

因此，西海岸市場以及亞洲市場出現了相當多的變動，包括資產中斷和宣布關閉。您能否談談西海岸和落基山脈市場以及供需所觀察到的連鎖反應？您甚至可能認為亞洲對加州產品進口量增加可能對夏威夷市場產生潛在影響。

Sure, Ryan. It's a good question. I think, overall, you're seeing a need for increased product imports from Asia, and I think that has ultimately pushed the market into sort of persistent import parity, and for us, that's a favorable outcome for our West Coast position in Tacoma. It also benefits, I'll say our sales profile that's in eastern Washington. So again, the kind of western edges of the Rocky Mountain markets where our Montana business has a significant position. So I think those are the two areas that are most impactful, and I think there's some knock-on effects to Hawaii as well.

當然，瑞安。這是個好問題。我認為，總體而言，您看到了從亞洲增加產品進口的需求，我認為這最終推動了市場進入持續的進口平價狀態，對我們來說，這對我們在塔科馬的西海岸地位來說是一個有利的結果。我想說，這也對我們位於華盛頓東部的銷售狀況有好處。再次強調，我們的蒙大拿州業務在落基山脈市場的西部邊緣地區佔有重要地位。所以我認為這兩個地區影響最大，而且我認為這也會對夏威夷產生一些連鎖反應。

But across the board, I think, a tighter West Coast market benefits us in a number of ways and we're really strategically on the periphery of California. But we're not in California and so we try and position ourselves to participate in that market when it is attractive and then ultimately continue to try and operate really low-cost assets. So that when the market's unattractive, we can ride through and ultimately be -- put ourselves in a great spot to capitalize on the upside.

但總體而言，我認為，更緊密的西海岸市場在許多方面對我們有利，而且從戰略上講，我們確實處於加州的邊緣。但我們不在加州，因此我們嘗試在該市場具有吸引力時參與其中，然後最終繼續嘗試運營真正低成本的資產。這樣，當市場缺乏吸引力時，我們就可以渡過難關，並最終讓自己處於有利地位，從而利用市場的優勢。

Thanks. Yeah, I think probably close to California, but not in California is the ideal place to be.

謝謝。是的，我認為可能靠近加利福尼亞，但加利福尼亞不是理想的地方。

Maybe a second question, you bought back $51 million in stock in 1Q, which I think was probably higher than most expected. Can you talk about how you're thinking about capital allocation right now? How much are you willing to utilize the balance sheet? And how much does your expectation of a kind of a significant inflection and free cash flow play into how you're approaching it?

也許第二個問題是，您在第一季回購了價值 5,100 萬美元的股票，我認為這可能高於大多數人的預期。您能談談現在如何考慮資本配置嗎？您願意在多大程度上利用資產負債表？您對重大轉變和自由現金流的預期對您處理此事的方式有多大影響？

Sure, Ryan. So our balance sheets in good shape and we're in an excess capital position and it gives us dry powder. And on top of that, I'd just say our outlook is improving. And really, those things give us the flexibility to be opportunistic and really that means there's a combination of price and our outlook where you're going to see us be aggressive and that means in a certain price and outlook environment, we're going to reduce our activities. And so, I think that's the key to thoughtful capital allocation is to be dynamic, incorporate the factors, and our balance sheets in a really good spot so we can continue to be aggressive if we're given the opportunity.

當然，瑞安。因此，我們的資產負債表狀況良好，並且我們處於過剩資本狀態，這為我們提供了充足的資金。除此之外，我想說我們的前景正在改善。實際上，這些因素為我們提供了抓住機會的靈活性，這意味著價格和我們的前景相結合，你會看到我們積極進取，這意味著在一定的價格和前景環境下，我們將減少活動。因此，我認為深思熟慮的資本配置的關鍵是動態的，結合各種因素，並將我們的資產負債表放在一個真正好的位置，這樣如果有機會，我們就可以繼續積極進取。

Alexa Petrick, Goldman Sachs.

高盛的 Alexa Petrick。

I know it's still somewhat early, but can you talk about what you're seeing in demand for Q2 so far? Are there any data points around China or Asia more broadly that you can share as we think about the market?

我知道現在還為時過早，但您能談談到目前為止您對第二季度的需求嗎？當我們考慮市場時，您是否可以分享有關中國或亞洲更廣泛的數據點？

Yeah. So like, I think in general, all of our niche markets we're seeing steady to increasing demand across each one of the product categories. And overall, observation of the Singapore market is Chinese exports have remained pretty flat year over year. And ultimately, the Singapore market is supplying significant portions of the West Coast and other parts of the world and thus you're seeing what I characterize as broadly mid-cycle or slightly above mid-cycle margin conditions in the Singapore market. And then simultaneously, I think, you're seeing an emerging looser waterborne crude market given what OPEC's posture shift has been.

是的。因此，我認為總體而言，我們看到所有利基市場對每個產品類別的需求都呈現穩定成長的趨勢。整體而言，對新加坡市場的觀察是，中國出口較去年同期保持穩定。最終，新加坡市場為西海岸和世界其他地區提供了大量產品，因此，您會看到我所說的新加坡市場大致處於中期或略高於中期的利潤狀況。同時，我認為，鑑於歐佩克的立場轉變，你會看到一個新興的更寬鬆的水性原油市場。

Okay, that's helpful. And then just to follow up on refining, any color you can give on how we should think about capture rates directionally just given turn around and some of these moving pieces?

好的，這很有幫助。然後只是為了跟進改進，您能否提供任何細節，說明我們應該如何從方向性的角度考慮捕獲率，只要考慮到轉變和一些移動的部分？

Hey, Alexa, it's Sean. Yeah, I'll walk you through each of the sites and sort of how to frame up Q2. I think in Hawaii, we continue to sort of reiterate our 100% to 110% guidance and the clean product freight rates have held in nicely. And as Will mentioned, I think there will be some knock-on benefits to a stronger West Coast as it relates to how it impacts Hawaii.

嘿，Alexa，我是 Sean。是的，我將帶您了解每個網站以及如何建立 Q2。我認為在夏威夷，我們繼續重申我們的 100% 至 110% 的指導方針，並且清潔產品運費保持良好。正如威爾所提到的，我認為更強大的西海岸將對夏威夷產生一些連鎖效益。

In Tacoma, I think with the improving market conditions, you'll start to see the percentage captured come closer in line with our guidance of 85% to 95% moving forward. In Montana, obviously, Q2 will be a little noisy with the FCC and the (inaudible) turnaround. But as I mentioned in my prepared remarks, we should be able to mitigate a lot of the sort of lower production and turn around impacts from drawing refined product inventories across our logistics network. We've signaled capture of 90 to 100%, and I think it's fair to assume probably slightly lower than that given the turnaround activities. And in Wyoming, I called out the counting impact of the outage. We typically have a one-month lag on IFO, and so the sort of 60-to-70-day downtime that we had will really impact early March, so in Q1 and then extend into mid-May.

在塔科馬，我認為隨著市場條件的改善，您將開始看到捕獲百分比更接近我們預期的 85% 至 95%。顯然，在蒙大拿州，由於聯邦通訊委員會和（聽不清楚）轉變，第二季將會有些混亂。但正如我在準備好的發言中提到的那樣，我們應該能夠減輕產量下降帶來的許多影響，並扭轉透過我們的物流網絡提取成品油庫存帶來的影響。我們已經表示捕獲率為 90% 至 100%，但我認為，考慮到扭虧為盈活動，合理假設捕獲率可能略低於該數字。在懷俄明州，我大聲疾呼停電造成的巨大影響。我們的 IFO 通常有一個月的滯後，因此我們所經歷的 60 到 70 天的停機時間會對 3 月初產生重大影響，因此會影響第一季度，然後延續到 5 月中旬。

(Operator Instructions)

（操作員指示）

Jason Gabelman, TD Cowen.

傑森·加貝爾曼（Jason Gabelman），TD Cowen。

I wanted to follow on maybe on thinking about 2Q and more broadly the company's margin profile in a declining oil environment, and I was hoping if you could just remind us of some of the moving pieces as oil prices fall. I believe there's a lag effect on diesel pricing in Hawaii. I believe your OpEx in Hawaii is somewhat to crude oil prices. I imagine some of the headwinds around asphalt and co-products may improve a bit with declining crude prices and then also the impact of a market moving from backwardation to Contango. Thanks.

我想繼續思考第二季以及在石油價格下跌的環境下公司利潤率的更廣泛情況，我希望您能提醒我們一些油價下跌帶來的變動因素。我認為夏威夷的柴油定價有滯後效應。我相信您在夏威夷的營運支出與原油價格有一定關係。我認為，隨著原油價格下跌，以及市場從現貨溢價轉向正價差的影響，瀝青和副產品市場面臨的一些不利因素可能會有所改善。謝謝。

Hey, Jason. Teah, it's Shawn. I think that there's more tailwinds and headwinds in a falling flat price environment. You noted the price tag exposure we have in Hawaii on our utility sales. A pretty significant cost component in all of our refineries is fuel burn, and that's really costed at the sort of flat price of crude and so that will decrease in a lower flat price environment. Asphalt net backs tend to improve and falling flat prices just given the stickiness of wholesale and retail, asphalt prices.

嘿，傑森。Teah，我是 Shawn。我認為，在價格下跌的環境中，順風和逆風會更多。您注意到了我們在夏威夷的公用事業銷售中的價格標籤曝光。我們所有煉油廠的一個相當重要的成本組成部分是燃料消耗，而這實際上是以原油固定價格計算成本的，因此在較低的固定價格環境下，燃料消耗將會減少。鑑於批發和零售的黏性，瀝青價格趨於平穩，瀝青淨回值趨於改善和下降。

On sort of the risk management side, just keep in mind, we sort of maintain a fully hedged position on our hydrocarbon inventory and so typically, maybe across the industry and you would see headwinds in a falling flat price, but we're well hedged and not expecting significant network capital noise in Q2 related to the flat price.

在風險管理方面，請記住，我們對碳氫化合物庫存保持完全對沖的狀態，因此通常情況下，也許在整個行業中，你會看到平價下跌帶來的阻力，但我們對沖得很好，預計第二季度不會出現與平價相關的重大網路資本噪音。

Okay, great. That's all helpful color. My other question is just on the SAP project as you approach startup. And I imagine you'll have a ramp up in the second half of the year, that some of your larger peers have discussed some weakness in staff, particularly in the European market. Just wondering if that market is developing in line with your expectations if your position on Hawaii gives you unique opportunity to capture margin that that others won't be able to and just overall thoughts on the earnings profile of that of that project. Thanks.

好的，太好了。這些都是有用的顏色。我的另一個問題是關於你們即將啟動的 SAP 專案。我想你們的業績在下半年會有所提升，你們的一些較大的同行已經討論了員工方面的一些弱點，特別是在歐洲市場。只是想知道，如果您在夏威夷的地位為您提供了獨特的機會來獲取其他人無法獲得的利潤，那麼該市場是否按照您的預期發展，以及對該項目盈利狀況的總體看法。謝謝。

Yeah, and it's Will. I would say notwithstanding, I think a lot of policy uncertainty that's in the space right now, we're remaining constructive on the Hawaii project, and it really has more to do with our view on cost positioning in the space of the hole and it's really three items I'd point to.

是的，他是威爾。我想說，儘管目前該領域存在著許多政策不確定性，但我們對夏威夷計畫仍然持建設性態度，這實際上與我們對洞內成本定位的看法有關，我實際上要指出三件事。

So one, this is the operating expense profile is going to be very competitive relative to our peers given that it's inside the plant and we're able to leverage our existing infrastructure, resources and personnel there. I think the second really is on the capital cost side, right? We're at roughly $1.50 per gallon constructed, which I think is one of the lowest I've seen in the space. And the third is really on the transportation side given we have available logistics, we're able to efficiently distribute to our customers in Hawaii with a very low incremental cost. And then alternatively, we have our own distribution network in Washington that allows us to monetize product over our own infrastructure, which is an enviable position to be in.

因此，首先，由於它位於工廠內部，並且我們能夠利用現有的基礎設施、資源和人員，因此與我們的同行相比，它的營運費用狀況將非常具有競爭力。我認為第二個因素確實是資本成本面，對嗎？我們的成本約為每加侖 1.50 美元，我認為這是我見過的該領域最低的成本之一。第三是運輸方面，由於我們擁有可用的物流，我們能夠以非常低的增量成本有效地向夏威夷的客戶分銷產品。另外，我們在華盛頓有自己的分銷網絡，這使我們能夠透過自己的基礎設施將產品貨幣化，這是一個令人羨慕的地位。

So again, I think we've got a number of options there. And then broadly on the customer side, I would say we're seeing encouraging interest from international airlines, principally in the Asia Pacific region. And that's a little bit of a differentiated solution than placing staff into Europe right now.

所以，我再次認為我們有很多選擇。從客戶方面來看，我想說我們看到了來自國際航空公司，尤其是亞太地區的航空公司的濃厚興趣。與現在將員工派往歐洲相比，這是一個略有差異的解決方案。

Manav Gupta, UBS.

瑞銀的 Manav Gupta。

You have been a company which has grown to very smart M&A, and I was just wondering even if we ignore refining for a minute because that's where things can be tricky, like would you be open to small bolt on deals that can grow your logistics business as well as your retail business at the right price and the right threshold?

您的公司已經發展成為一家非常精明的併購公司，我只是想知道，即使我們暫時忽略煉油業務，因為這是事情可能比較棘手的地方，您是否願意接受可以以合適的價格和合適的門檻發展您的物流業務和零售業務的小型附加交易？

Yeah, Manav, this is Will. I mean, what I would say is there's very few opportunities that we've seen that come close to competing with the capital allocation alternative repurchasing our stock. And I think the single best capital allocation alternative we have is in that area today so that's kind of how we think about the market at this moment.

是的，馬納夫，這是威爾。我的意思是，我想說的是，我們所看到的能夠與回購股票的資本配置替代方案相媲美的機會很少。我認為我們目前擁有的最佳資本配置替代方案就在那個領域，這就是我們目前對市場的看法。

Perfect. My second question is again on the retail side. I mean, we are in an uncertain macro. Are there any signs of recessionary demand that you have seen out there in any region which -- it's early, but are you seeing underlying demand to be totally resilient despite these macro headwinds, or there are some signs of weakness in some market? Thank you, I'll turn it over.

完美的。我的第二個問題還是關於零售方面。我的意思是，我們正處於一個不確定的宏觀環境中。您是否在任何地區看到了需求衰退的跡象——現在還為時過早，但您是否看到儘管存在這些宏觀不利因素，但潛在需求仍然完全具有彈性，或者某些市場出現了一些疲軟跡象？謝謝，我會轉過來的。

Sure, Manav. Yeah, we've really not seen any reductions in demand across any of our markets. We operate in some different niches, but I think that's kind of the broad sense right now is it's flat. And on the retail side, I just point out that it can be a little bit countercyclical where the retail business tends to outperform in any type of a down market. So I would just broadly characterize demand both in the store and at the pump as flat to slightly up.

當然，馬納夫。是的，我們確實沒有看到任何市場的需求減少。我們在一些不同的領域開展業務，但我認為從廣義上講，目前它是平穩的。在零售方面，我只想指出，它可能有點反週期，零售業務往往在任何類型的低迷市場中表現優異。因此，我大致認為商店和加油站的需求都持平或略有上升。

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

我們的問答環節到此結束。我想將會議交還給威爾·蒙特萊昂先生，請他作最後發言。

Great, thank you, Alan. We're encouraged by the improving market backdrop and remain focused on execution as the key to driving shareholder value. Thank you for joining us today.

太好了，謝謝你，艾倫。我們對不斷改善的市場環境感到鼓舞，並將繼續專注於執行，將其作為推動股東價值的關鍵。感謝您今天加入我們。

The conference is 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。