Par Pacific Holdings Inc (PARR) 2025 Q2 法說會逐字稿

Good morning and welcome to the Par Pacific's second-quarter 2025 earnings call.

早上好，歡迎參加 Par Pacific 2025 年第二季財報電話會議。

(Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Ashimi Patel, Vice President of Investor Relations.

（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。

Please go ahead.

請繼續。

Thank you, Jason.

謝謝你，傑森。

Welcome to Par Pacific's second-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.

歡迎參加 Par Pacific 第二季財報電話會議。今天與我一起出席的還有總裁兼首席執行官威爾·蒙特萊昂 (Will Monteleone)、煉油和物流執行副總裁理查德·克里默 (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 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。

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.

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。

I'll now turn the call over to our President and Chief Executive Officer, Will Monteleone.

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.

謝謝你，Ashimi，大家早安。

Second-quarter adjusted EBITDA was $138 million and adjusted net income was $1.54 per share. Strong operations, combined with improving market conditions enabled us to generate solid profits during the quarter. We set a quarterly operational throughput record in Hawaii and the commercial organization was well positioned to capture improving market conditions during the Montana turnaround. Product margins remained firm with a combined index of approximately $13 per barrel so far in the third quarter, especially favoring our distillate-oriented yield profile.

第二季調整後EBITDA為1.38億美元，調整後淨收入為每股1.54美元。強勁的營運加上不斷改善的市場條件使我們在本季獲得了可觀的利潤。我們在夏威夷創下了季度營運吞吐量記錄，商業組織在蒙大拿州轉型期間也處於有利地位，能夠抓住不斷改善的市場條件。產品利潤率保持堅挺，第三季迄今的綜合指數約為每桶 13 美元，尤其有利於我們以餾分油為導向的收益狀況。

The Asian market outlook remains favorable with minimal increases in Chinese exports despite arbitrage opportunities to Europe. Each of our businesses is well positioned to maximize rates as we enter the third quarter. Our retail business continues to shine.

儘管對歐洲的套利機會，但亞洲市場前景依然看好，中國出口增幅很小。進入第三季度，我們的每項業務都已做好準備，以實現利率最大化。我們的零售業務持續蓬勃發展。

Quarterly, same-store fuel and in-store revenue increased by 1.8% and 3% compared to the second quarter of 2024. Underlying profitability also improved, as demonstrated by our last 12 months total adjusted EBITDA climbing to $85 million.

本季度，同店燃油和店內收入與 2024 年第二季度相比分別成長了 1.8% 和 3%。我們過去 12 個月的調整後 EBITDA 總額攀升至 8,500 萬美元，證明了基礎獲利能力也有所提高。

We also made considerable progress on key objectives during the quarter, and we are well on our way towards achieving our strategic priorities for the year. Montana team delivered solid results, executing the largest turnaround in the site's history. The completion of this event marks the approximate two-year anniversary of the Montana acquisition

本季度，我們也在關鍵目標上取得了長足的進展，並且正在順利實現今年的戰略重點。蒙大拿團隊取得了豐碩的成果，實現了該站點歷史上最大的轉變。這項活動的完成標誌著蒙大拿州收購案約兩週年

During this time, we addressed many of the higher risk reliability items. As we've done in prior acquisitions, we will now shift our focus towards improving the profitability of the site through a series of low capital, high-return projects.

在此期間，我們解決了許多高風險可靠性問題。正如我們在先前的收購中所做的那樣，我們現在將把重點轉向透過一系列低資本、高回報的項目來提高網站的獲利能力。

The Hawaii and Renewables team progressed the SAF project and remain scheduled for start-up in the second half of the year, and we are nearing mechanical completion and commissioning of the pretreatment unit. We're also pleased to announce the joint venture with Mitsubishi and ENEOS Corporation.

夏威夷和再生能源團隊推進了 SAF 項目，並計劃於今年下半年啟動，我們即將完成預處理裝置的機械完工和調試。我們也很高興地宣布與三菱和 ENEOS 公司建立合資企業。

Together, Mitsubishi and ENEOS will contribute $100 million for a 36.5% equity interest in the joint venture, while Par Pacific will remain with a 63.5% controlling interest. This strategic partnership will strengthen our renewable fuels capabilities, including our partners' expertise in global feedstock procurement and product update. Following regulatory clearance, we expect to receive the $100 million investment, which will cover the cost of our project.

三菱和 ENEOS 將共同出資 1 億美元，獲得合資企業 36.5% 的股權，而 Par Pacific 仍將持有 63.5% 的控股權。這項策略合作夥伴關係將增強我們的再生燃料能力，包括我們的合作夥伴在全球原料採購和產品更新方面的專業知識。在獲得監管部門批准後，我們預計將獲得 1 億美元的投資，這將涵蓋我們項目的成本。

Despite policy uncertainty, our outlook remains constructive due to the flexibility and structural cost advantages of the project. Amidst this solid operational and strategic execution, we repurchased an additional $28 million of stock at a weighted average price of $17.63 bringing the year-to-date share count down by nearly 8%. Our current share count is approaching 50 million shares, and we continue to measure our financial performance by evaluating our free cash flow on a per share basis.

儘管政策存在不確定性，但由於該專案的靈活性和結構性成本優勢，我們的前景仍然樂觀。在穩健的營運和策略執行中，我們以 17.63 美元的加權平均價格回購了價值 2,800 萬美元的股票，使年初至今的股票數量下降了近 8%。我們目前的股票數量接近 5000 萬股，我們繼續透過評估每股自由現金流來衡量我們的財務表現。

Our balance sheet is in good shape, with ending liquidity of nearly $650 million, providing flexibility to pursue our strategic objectives and opportunistically repurchase shares. Looking forward, strong market conditions, reduced capital spending requirements and the expected receipt of JV proceeds position us to drive strong cash generation.

我們的資產負債表狀況良好，期末流動資金接近 6.5 億美元，為追求我們的策略目標和適時回購股票提供了靈活性。展望未來，強勁的市場條件、減少的資本支出要求以及預期的合資收益使我們能夠推動強勁的現金產生。

I'll now turn the call over to Richard to discuss our refining and logistics operations.

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.

謝謝你，威爾。

Second-quarter combined throughput was 187,000 barrels per day. In Hawaii, throughput was a record 88,000 barrels per day and production costs were $4.18 per barrel. Hawaii delivered strong results due to reliable operations, which enabled the site to run near nameplate capacity throughout the quarter.

第二季總吞吐量為每天 187,000 桶。在夏威夷，產量達到創紀錄的每天 88,000 桶，生產成本為每桶 4.18 美元。夏威夷憑藉可靠的營運取得了強勁的業績，這使得該工廠整個季度的運作能力接近額定容量。

This record is a result of focus and effort of our team to sustainably de-constrain Hawaiian operations over the last 18 months. Washington throughput was 41,000 barrels per day and production costs were $3.73 per barrel, which highlights the site's low cost and efficient refining structure.

這項記錄是我們團隊在過去 18 個月中持續致力於減輕夏威夷業務限制的結果。華盛頓的產量為每天 41,000 桶，生產成本為每桶 3.73 美元，凸顯了該基地低成本、高效的煉油結構。

Shifting to Wyoming, throughput was 13,000 barrels per day and production costs were $14.50 per barrel impacted by lower throughput and an incremental $4 million due to the crude heater outage. The refinery returned to full production capacity in April, and we expect to return to our normal OpEx run rate in the third quarter.

轉移到懷俄明州，產量為每天 13,000 桶，生產成本為每桶 14.50 美元，受到產量下降和原油加熱器停機導致的 400 萬美元增量的影響。該煉油廠於四月恢復了滿載生產能力，我們預計第三季的營運支出運行率將恢復正常。

Finally, in Montana, second-quarter throughput was 44,000 barrels per day and production costs were $14.18 per barrel, reflecting lower throughput related to the successful completion of the FCC and alkylation unit turnaround. As Will said, we are pleased with the team's performance and their solid execution of the site's largest turnaround ever.

最後，在蒙大拿州，第二季的產量為每天 44,000 桶，生產成本為每桶 14.18 美元，這反映了與 FCC 和烷基化裝置週轉成功完成相關的產量下降。正如威爾所說，我們對團隊的表現以及他們對該網站有史以來最大轉變的穩健執行感到滿意。

Looking ahead to the third quarter, we expect Hawaii throughput between 78,000 and 81,000 barrels per day with July runs impacted by weather-driven crude delivery delays. Despite this, Hawaii downstream conversion units remain fully utilized through the consumption of intermediate inventory.

展望第三季度，我們預計夏威夷的原油吞吐量將在每天 78,000 至 81,000 桶之間，7 月份的原油吞吐量將受到天氣導致的原油交付延遲的影響。儘管如此，夏威夷下游轉換單位仍透過消耗中間庫存來充分利用。

Shifting to the Mainland, we expect Washington throughput to be between 39,000 and 41,000 barrels per day; Wyoming between 18,000 and 19,000; and Montana between 54,000 and 56,000, resulting in a system-wide throughput between 190,000 and 205,000 barrels per day.

轉向大陸，我們預計華盛頓州的吞吐量將在每天 39,000 至 41,000 桶之間；懷俄明州的吞吐量將在每天 18,000 至 19,000 桶之間；蒙大拿州的吞吐量將在每天 54,000 至 56,000 桶之間；蒙大拿州的吞吐量將在每天 54,000 至 56,000 桶之間；蒙大拿州的吞吐量將在每天 54,000 至 56,000 桶之間；

I'll now turn the call over to Shawn to cover the financial results.

現在我將把電話轉給肖恩來介紹財務結果。

Thank you, Richard.

謝謝你，理查。

Second-quarter adjusted EBITDA and adjusted earnings were $138 million and $78 million or $1.54 per share. Our Refining segment reported adjusted EBITDA of $108 million in the second quarter compared to a loss of $14 million in the first quarter.

第二季調整後的 EBITDA 和調整後的收益分別為 1.38 億美元和 7,800 萬美元，即每股 1.54 美元。我們的煉油部門報告第二季調整後的 EBITDA 為 1.08 億美元，而第一季虧損 1,400 萬美元。

Starting in Hawaii, the Singapore 312 averaged $13.56 per barrel and our crude differential was $4.99, resulting in a Hawaii index of $8.57 per barrel. Hawaii margin capture was 119%, including a combined $4 million headwind from price lag and product crack hedging.

從夏威夷開始，新加坡 312 平均價格為每桶 13.56 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 8.57 美元。夏威夷的利潤率為 119%，其中包括價格滯後和產品裂解對沖帶來的總計 400 萬美元的不利影響。

Excluding these items, margin capture was 125%, reflecting favorable yield and reduced product imports, driven by record quarterly throughput rates. Looking ahead to the third quarter, we expect our Hawaii crude differential to land between $5.75 and $6.25 per barrel.

除這些項目外，利潤率為 125%，反映了良好的收益率和產品進口減少，這得益於創紀錄的季度吞吐率。展望第三季度，我們預計夏威夷原油差價將在每桶 5.75 美元至 6.25 美元之間。

In Montana, our index averaged $20.29 per barrel, margin capture was 110%, highlighting our ability to maintain strong clean product sales through strategic inventory drawdowns despite lower throughput rates during the turnaround. Looking ahead, our Montana indicator averaged $15.13 per barrel in July, supported by strong distillate margins across the Northern Rockies, offset by tighter heavy crude differentials. In Wyoming, our index averaged $21.41 per barrel, margin capture was 87%, impacted by the recent outage as we resumed full throughput rates in late April.

在蒙大拿州，我們的指數平均為每桶 20.29 美元，利潤率為 110%，這突顯了儘管在轉型期間吞吐率較低，我們仍能透過戰略性庫存削減保持強勁的清潔產品銷售。展望未來，7 月蒙大拿州油價指數平均為每桶 15.13 美元，這得益於北落基山脈地區強勁的餾分油利潤，但重質原油價差收窄抵消了這一影響。在懷俄明州，我們的指數平均為每桶 21.41 美元，利潤率為 87%，受到近期停產的影響，因為我們在 4 月底恢復了全部吞吐率。

Under FIFO accounting, we continue to expense high-cost purchased products into May, which reduced second quarter gross margin by approximately $8 million. Looking to the third quarter, we've returned to normal operations and expect OpEx to revert to prior run rate levels.

根據先進先出會計法，我們繼續將高成本採購產品計入五月份，這導致第二季毛利率減少約 800 萬美元。展望第三季度，我們已恢復正常運營，並預計營運支出將恢復到先前的運行率水準。

Lastly, our Washington Index averaged $15.37 per barrel, an improvement of approximately $11 from the prior quarter, driven by tight distillate supplies in the P&W. Margin capture was 75%, below our guidance range of 85% to 95%, primarily due to higher sales mix of asphalt and intermediate products during the summer demand season. In July, our Washington indicator averaged $13.74 per barrel, remaining well supported by strong clean product margins.

最後，受普惠餾分油供應緊張的影響，我們的華盛頓指數平均為每桶 15.37 美元，比上一季上漲約 11 美元。利潤率為 75%，低於我們 85% 至 95% 的指導範圍，主要原因是夏季需求季節瀝青和中間產品的銷售組合較高。7 月份，我們的華盛頓原油指標平均為每桶 13.74 美元，並繼續受到強勁的清潔產品利潤率的支撐。

Turning to the Logistics segment, second-quarter adjusted EBITDA came in at $30 million, consistent with our mid-cycle run rate guidance. In Wyoming, Logistics volumes began to recover following the restart of the refinery in April, across the rest of our logistics system, we saw strong utilization on our pipelines and truck racks, supported by seasonal strength in sales volumes.

談到物流部門，第二季調整後的 EBITDA 為 3000 萬美元，與我們的中期運作率指引一致。在懷俄明州，隨著煉油廠於 4 月重啟，物流量開始恢復。在我們其餘的物流系統中，由於季節性銷售量的強勁增長，我們的管道和卡車貨架的利用率很高。

In the Retail segment, we reported second quarter adjusted EBITDA of $23 million up from $19 million in the first quarter. The improvement was driven by higher fuel margins, same-store sales growth and lower operating costs.

在零售部門，我們報告第二季調整後的 EBITDA 為 2,300 萬美元，高於第一季的 1,900 萬美元。這項改善得益於燃油利潤率的提高、同店銷售額的成長以及營運成本的降低。

Corporate expenses and adjusted EBITDA totaled $24 million for the second quarter. We remain on track to achieve our company-wide cost reduction initiatives, targeting $30 million to $40 million in annual savings relative to last year. Excluding the Wyoming repair costs, year-to-date consolidated operating expenses were $412 million, reflecting a $24 million reduction compared to the prior year period. Moving to cash flows. Cash from operations during the second quarter totaled $83 million, excluding working capital inflows of $123 million and deferred turnaround expenditures of $72 million. We expect a partial reversal of the working capital inflow in the third quarter, primarily driven by the timing of derivative cash settlements, and return to typical accounts payable levels.

第二季公司支出和調整後 EBITDA 總計 2,400 萬美元。我們將繼續按計劃實現全公司範圍的成本削減計劃，目標是比去年節省 3,000 萬至 4,000 萬美元。不包括懷俄明州的維修費用，年初至今的綜合營運費用為 4.12 億美元，與去年同期相比減少了 2,400 萬美元。轉向現金流。第二季經營現金總額為 8,300 萬美元，不包括 1.23 億美元的營運資金流入和 7,200 萬美元的遞延週轉支出。我們預計第三季營運資金流入將出現部分逆轉，主要受衍生性商品現金結算時機的影響，並恢復到典型的應付帳款水準。

Cash used in investing activities totaled $46 million, driven by capital expenditures. As Will noted, we expect CapEx to decline meaningfully during the second half of the year. Through June 30, accrued CapEx and turnaround costs totaled $173 million with our full-year outlook turning toward the upper end of our guidance of $240 million. Turning to capital allocation.

投資活動所用現金總額為 4,600 萬美元，主要由資本支出推動。正如威爾所指出的，我們預計今年下半年資本支出將大幅下降。截至 6 月 30 日，累計資本支出和周轉成本總計 1.73 億美元，我們的全年預期將轉向 2.4 億美元的預期上限。轉向資本配置。

We repurchased $28 million or 1.6 million shares of common stock during the second quarter. Year to date, we bought back 5.2 million shares at an average price of $15, reducing our basic shares outstanding by 8%.

我們在第二季回購了價值 2,800 萬美元或 160 萬股普通股。今年迄今為止，我們以平均 15 美元的價格回購了 520 萬股股票，將基本流通股減少了 8%。

Moving to the balance sheet, gross term debt as of June 30 was $641 million or 3 times our trailing 12-month retail and logistics EBITDA at the low end of our three to four times leverage target. With a record LTM EBITDA of $211 million, our growing retail and logistics cash flow comfortably supports our leverage profile.

轉向資產負債表，截至 6 月 30 日的總定期債務為 6.41 億美元，是我們過去 12 個月零售和物流 EBITDA 的 3 倍，處於我們三到四倍槓桿目標的低端。憑藉創紀錄的 2.11 億美元的 LTM EBITDA，我們不斷增長的零售和物流現金流輕鬆支撐了我們的槓桿狀況。

Total liquidity increased 23% during the second quarter to $647 million, supported by strong operating cash flows and expanding capacity under our ABL facility. Our solid financial position, combined with an improved market backdrop positions us well to advance our strategic priorities moving forward. This concludes our prepared remarks.

由於強勁的營運現金流和 ABL 設施下不斷擴大的容量，第二季總流動資金增加了 23%，達到 6.47 億美元。我們穩健的財務狀況，加上改善的市場背景，使我們能夠很好地推進未來的策略重點。我們的準備好的演講到此結束。

Operator, we'll turn it back to you for Q&A.

接線員，我們會將其交還給您進行問答。

(Operator Instructions) Matthew Blair, TPH.

（操作員指示）Matthew Blair，TPH。

Could you talk a little bit about the drivers behind the strong capture rates in Hawaii in the second quarter? I believe your overall capture was 119% of your indicator. And I think you mentioned that areas like price lag and the hedging were actually headwinds in the quarter. So what was on the other side of the provided tailwinds and enabled such a strong capture figure?

您能否簡單談談夏威夷第二季度捕獲率強勁的驅動因素？我相信您的總體捕獲量達到了指標的 119%。我認為您提到價格滯後和對沖等領域實際上是本季的阻力。那麼，除了順風之外，還有什麼因素使得捕獲量如此強勁呢？

Yes, Matt, this is Shawn.

是的，馬特，這是肖恩。

You're correct. Our reported capture was 119%. And excluding the non-recurring events of the price lag and crack hedging, was 125% and I think over the last two or three years, our average capture in Hawaii has been 120%. So I think we've shown that we can outperform our steady guidance of 110% capture.

你是對的。我們報告的捕獲率為 119%。並且排除價格滯後和裂解避險等非經常性事件，這一比例為 125%，我認為在過去兩三年中，我們在夏威夷的平均捕獲率為 120%。因此我認為我們已經證明我們可以超越我們穩定的 110% 捕獲率指導。

And that's primarily driven by elevated clean product freight rates, which is included in our sales contracts. And then as you see throughput rates move higher, closer to nameplate capacity, our yield expense improves materially on a barrel-for-barrel basis. So I think as long as we sustain throughput rates in the mid-80s and continue to see elevated clean product freight, I fully expect capture rates to continue to outperform our guidance.

這主要是由於清潔產品運費上漲所致，這已包含在我們的銷售合約中。然後，當您看到生產率提高，接近額定產能時，我們的產量成本就會在每桶基礎上大幅改善。因此我認為，只要我們維持 80 年代中期的吞吐率並繼續看到清潔產品貨運量上升，我完全預計捕獲率將繼續超過我們的預期。

Yes, Matt, this is Will.

是的，馬特，這是威爾。

I think that what I'd point out here is just at 88,000 barrels per day throughput rate. Again, this reflects, I would say, over 18 months of work by the Hawaii team and really deconstraining and just improving overall heater efficiency inside the plant. And so again, I think the yield profile on those last barrels produced is very attractive.

我認為我在這裡要指出的是每天 88,000 桶的吞吐率。再次，我想說，這反映了夏威夷團隊 18 個多月的努力，真正解除了限制，並提高了工廠內部的整體加熱器效率。因此，我認為最後生產的這些桶的產量狀況非常有吸引力。

Sounds good.

聽起來不錯。

And then the SAF JV looks like a total home run for Par. Could you talk a little bit about how that deal came about, the benefits to Par from that deal? And then what -- is there an update on the start-up timing and when you would expect the EBITDA contribution to begin to flow through the Par financials?

那麼，SAF JV 對 Par 來說看起來就像是一個完美的本壘打。您能否簡單談談這筆交易是如何達成的，以及這筆交易為 Par 帶來了什麼好處？那麼 - 有沒有關於啟動時間的最新消息以及您預計 EBITDA 貢獻何時會開始流入 Par 財務？

Sure, Matt.

當然，馬特。

Yes. I think the discussions have been ongoing for an extended period of time. And I think the key thing that's driven really the partnership here is the, I'll just say, relative attractive elements of our project. And so I think we've been mentioning this, but I'll reiterate, but I think at the end of the day, we see our SAF project is very attractive relative to the industry and it's driven really by, I think, our operating expense, given that it's inside the fence line of the plant.

是的。我認為討論已經持續了很長一段時間。我認為真正推動這種合作的關鍵因素是我們專案相對有吸引力的因素。所以我想我們一直在提到這一點，但我要重申，但我認為最終，我們看到我們的 SAF 項目相對於行業而言非常有吸引力，而且我認為它實際上是由我們的運營費用驅動的，因為它位於工廠的圍欄內。

On a per gallon basis, we'd expect it to be very attractive and highly competitive. Second really is logistics. I think we expect over time to sell the vast majority of our products locally in Hawaii, and I think that allows us to leverage our existing proprietary distribution system. And then I think the capital efficiency of the project is the other piece that we've been touting. And so I think when you look at all those facets, it's kind of the key ingredients for bringing in a partner of the quality of Mitsubishi and ENEOS.

以每加侖計算，我們預計它會非常有吸引力且極具競爭力。第二是物流。我認為，隨著時間的推移，我們預計在夏威夷當地銷售絕大多數產品，我認為這使我們能夠利用現有的專有分銷系統。然後我認為專案的資本效率是我們一直在吹捧的另一點。因此，我認為，當你考慮所有這些方面時，這都是引入三菱和 ENEOS 這樣優質合作夥伴的關鍵因素。

And then I think ultimately, it was definitely not a two plus two equals four, but I think it's a great opportunity for us to expand our distribution capabilities on the West Coast, Mitsubishi and others have access into the California market, which complements our positioning in Washington and just expands the flexibility that we're going to have in the overall renewable fuels business.

然後我認為最終，這絕對不是二加二等於四，但我認為這對我們來說是一個很好的機會，可以擴大我們在西海岸的分銷能力，三菱和其他公司可以進入加州市場，這補充了我們在華盛頓的定位，並擴大了我們在整個可再生燃料業務中的靈活性。

So I think long story short, I see this being an attractive long-term partnership that unlocks the value of the renewables business and then also brings to bear a larger global scale that Mitsubishi and ENEOS have. So again, very pleased with this, and I think it helps shine a light on the attractive elements of the project that we've been working on. And in terms of start-up, I think we're targeting second half of this year. We're intending to bring online the pretreatment unit first, as I've referenced, go through the commissioning process there.

所以我認為長話短說，我認為這是一個有吸引力的長期合作夥伴關係，它能夠釋放再生能源業務的價值，並帶來三菱和 ENEOS 更大的全球規模。所以，我對此感到非常高興，我認為這有助於凸顯我們一直在努力的項目的吸引力。就啟動而言，我認為我們的目標是今年下半年。正如我所提到的，我們打算先啟動預處理裝置，在那裡進行調試過程。

And I wouldn't expect to start to see financial contributions from the JV until really the first quarter of '26. And just keep in mind, we'll be in commissioning and really getting through the, I'll call it, credit pathway establishment. And so I think it's going to take us a quarter or two before we get to kind of the right CI scores and ultimately to the run rate contributions for that business.

我預計直到 2026 年第一季才會開始看到合資公司的財務貢獻。請記住，我們將進行調試並真正完成我所說的信用途徑建立。因此，我認為我們需要一到兩個季度的時間才能獲得正確的 CI 分數，並最終獲得該業務的運行率貢獻。

Ryan Todd, Piper Sandler.

瑞恩·托德、派珀·桑德勒。

I wanted to talk about -- a little bit about the Rockies.

我想談談關於落基山脈的事情。

Obviously, really strong performance in Montana and Wyoming in the quarter. Some of that due to excess inventory sales. Can you talk about maybe how much is due to the excess inventory sales and what you're seeing on broader dynamics in the region as you look forward from here?

顯然，本季蒙大拿州和懷俄明州的表現非常強勁。部分原因是庫存銷售過剩。您能否談談其中有多少是由於庫存銷售過剩造成的，以及您對該地區未來更廣泛的動態有何展望？

Yes, Ryan, I'll take the excess inventory sort of impacts on capture and will turn it to Will to talk about sort of the PADD 4 market in general.

是的，Ryan，我會討論過剩庫存對捕獲的影響，然後讓 Will 談談 PADD 4 市場的整體情況。

But I think the market environment that we're operating in the second quarter supported our capture guidance range of 90% to 100%. I think what drove capture closer to the 110% was our ability to draw down diesel and gasoline inventories. And so then it's just a function of sales (inaudible) versus throughput. I think looking ahead, I'd just reiterate our guidance of 90 to 100 into Q3.

但我認為我們在第二季度運營的市場環境支持我們 90% 至 100% 的捕獲指導範圍。我認為，促使捕獲率接近 110% 的原因是，我們有能力減少柴油和汽油庫存。因此，它只是銷售額（聽不清楚）與吞吐量的函數。我認為展望未來，我只想重申我們對第三季 90 到 100 的預期。

And then, Ryan, on the broader market, I think the kind of PADD 5 and PADD 4 distillate markets are particularly tight, I think big picture. I think you saw the export market open up in the PADD 5 market. You saw global distillate inventory start to draw down well below historical averages and that opened up, I think, attractive netbacks for exporting diesel.

然後，Ryan，就更廣泛的市場而言，我認為 PADD 5 和 PADD 4 餾分油市場特別緊張，我認為總體情況如此。我認為您看到了 PADD 5 市場的出口市場開放。您將看到全球餾分油庫存開始下降至遠低於歷史平均水平，我認為這為出口柴油帶來了有吸引力的淨回值。

On top of that, I think you've seen production of biodiesel and renewable diesel come off materially. And I should also say, imports of diesel and renewable diesel come off materially as you saw the blenders tax credit expire and so you've had both export of conventional diesel and then reduction in renewable barrels available as we kind of worked into the second quarter.

除此之外，我認為您已經看到生質柴油和再生柴油的產量大幅下降。我還應該說，隨著混合器稅收抵免到期，柴油和再生柴油的進口量大幅下降，因此，隨著我們進入第二季度，傳統柴油的出口量和再生柴油的出口量都在減少。

So I think the market and supply position there is tight. And I think that's really reflective of a globally tight distillate market. So those are the key drivers, and I'd broadly say a pretty typical driving season in terms of demand and fundamentals on the gasoline side is what we've seen so far.

所以我認為那裡的市場和供應狀況緊張。我認為這確實反映了全球餾分油市場的緊張感。這些是關鍵驅動因素，我認為從汽油需求和基本面來看，這是一個相當典型的駕駛季節。

Great.

偉大的。

And then maybe one on kind of use of cash and shareholder returns. You've been pretty active in the first half of the year in terms of share buyback. You've got $100 million coming in the door from kind of proceeds from JV, CapEx budget that's rolling off pretty materially as you highlighted here in the second half of the year. But you've also talked in the past about being opportunistic and shareholder returns. So how do you think about those dynamics as you look at the second half of the year?

然後也許還有關於現金使用和股東回報的問題。今年上半年，你們在股票回購上相當活躍。您從合資企業的收益中獲得了 1 億美元的資金，正如您所強調的那樣，資本支出預算在下半年將大幅增加。但您過去也曾談到機會主義和股東回報。那麼，展望下半年，您如何看待這些動態？

Sure, yes.

當然可以。

I mean, what I would say is really our historical framework still holds today. And what I'd say is when we're in an excess capital position like we are today and like we expect to improve and we get the chance to repurchase our shares below intrinsic value, and we see that opportunity. And I think that opportunity is going to come and go based on the many variables that impact our business and markets as a whole.

我的意思是，我想說的是，我們的歷史框架仍然適用。我想說的是，當我們處於像今天這樣的資本過剩狀況時，我們期望情況會有所改善，並且我們有機會以低於內在價值的價格回購我們的股票，我們看到了這個機會。我認為，機會的出現和消失取決於影響我們業務和整個市場的許多變數。

And really, I think a nimble approach is critical. We live in a volatile world, and things are changing quickly, and what I would say is, as a management team, what we're focused on is really actively weighing our growth prospects. That's both the internal growth capital projects that we're generating as well as any M&A opportunities against those opportunities to repurchase stock and other capital allocation alternatives. And I think I'll just say it a little differently. I think we really just want the most options on the table that we can execute at any point in time so that we can adapt quickly to how quickly the world is changing.

我確實認為靈活的方法至關重要。我們生活在一個動盪的世界，事情瞬息萬變，我想說的是，作為管理團隊，我們真正關注的是積極權衡我們的成長前景。這既包括我們正在產生的內部成長資本項目，也包括任何併購機會，以及回購股票和其他資本配置替代方案的機會。我想我只是想用稍微不同的方式來表達。我認為我們真正想要的只是盡可能提供可以隨時執行的選擇，以便我們能夠快速適應世界快速變化的狀況。

(Operator Instructions) Neil Mehta, Goldman Sachs.

（操作員指示）高盛的 Neil Mehta。

Just want your perspective on small refinery exemptions. Where do you think we are in terms of the time line? And then any advice in helping us to size what this could mean for Par's cash flow?

只是想聽聽您對小型煉油廠豁免的看法。您認為就時間軸而言我們處於什麼位置？那麼有什麼建議可以幫助我們評估這對 Par 的現金流意味著什麼嗎？

Sure. So I think broadly on small refinery exemptions, our expectation is that the EPA will, I would say, follow the law and from our perspective, that means that goes through a rigorous kind of refinery by refinery BOE scoring process to assess each plant. And so -- and to give you some context, in the past, I would say all three of our mainland refineries have qualified and received small refinery exemptions in the past. And so I think that's really our expectation of the process. In terms of the timing, I won't even hazard a guess, Neil.

當然。因此，我認為，就小型煉油廠豁免而言，我們的期望是，環保署將遵守法律，從我們的角度來看，這意味著要透過嚴格的煉油廠 BOE 評分流程來評估每個工廠。所以——為了給你一些背景信息，我想說，過去我們大陸的所有三家煉油廠都具備資格並獲得了小型煉油廠豁免。所以我認為這確實是我們對這過程的期望。至於時間，我甚至不敢猜測，尼爾。

I think this is highly politicized effort on all sides. And unfortunately, there would just be speculation to try and say that we know what the time line is because it's been difficult for them to maintain a schedule. In terms of sizing of the opportunity, maybe I'll turn it to Shawn just to talk about the overall RIN positioning for us as a whole and what it means. Before I do that, I just want to clarify any exemptions and return of RINs would be upside to us, right? We have really a balanced RIN asset and liability position today.

我認為這是各方高度政治化的努力。不幸的是，我們只能透過猜測來表明我們知道時間表，因為他們很難維持時間表。就機會規模而言，也許我會向 Shawn 詢問 RIN 對我們整體的定位及其意義。在此之前，我只想澄清一下，任何豁免和 RIN 的歸還對我們來說都是有利的，對嗎？如今，我們的 RIN 資產和負債狀況確實處於平衡狀態。

Neil, this is Shawn.

尼爾，這是肖恩。

To Will's point there, we've covered our obligations going back to 2019 through 2024. So any retroactive receipt of a small refinery exemption would be sort of direct cash proceeds in terms of getting RINs back and selling those at market prices. I think when you think about our exposure on a go-forward basis, the mainland refineries have about $140 million RIN unit gross exposure. And so I think that's the best way to size up given that those three refineries received SREs in the past.

正如威爾所說，我們已經履行了從 2019 年到 2024 年的義務。因此，任何追溯性收到的小型煉油廠豁免都將是直接的現金收益，即收回 RIN 並以市場價格出售。我認為，當您考慮我們未來的風險敞口時，大陸煉油廠的 RIN 單位總風險敞口約為 1.4 億美元。因此，我認為這是最好的評估方式，因為這三家煉油廠過去都曾獲得 SRE。

That makes sense. And then in time just talking about the Singapore market. Hawaii is, I would characterize it, at or maybe even above mid-cycle. So that happened really quick. It's great to see but just the sustainability of it and there's some moving pieces here, right?

這很有道理。然後我們來談談新加坡市場。我認為夏威夷正處於或甚至可能超過中期週期。所以這發生得非常快。很高興看到這一點，但這只是它的可持續性，而且這裡有一些令人感動的部分，對吧？

Asia demand, Chinese oil demand is not that good. India, there's some debate around tariff impacts out there, and then we have this potential for the Chinese to ramp up product exports. So how do you think about some of those moving pieces and risks as you assess the path forward for Singapore margins?

亞洲需求，中國石油需求不太好。印度方面，圍繞關稅影響存在一些爭論，而中國則有潛力增加產品出口。那麼，當您評估新加坡利潤率的未來發展方向時，您如何看待其中的一些變化因素和風險？

Yes. I think we watch the Singapore market closely and I think really have for the last 12 years. And I think the theme that we continue to see is that the overall Chinese refining fleet remains focused on meeting internal demand is sort of one theme that we see. And the second is really just deeper and deeper integration between the refining fleet and their petrochemical complex. And so I think really internalizing demand and then also shifting product yields to the lighter end products so that they can internalize their petchem complex.

是的。我認為我們密切關注新加坡市場，我認為過去 12 年我們一直如此。我認為我們繼續看到的主題是，中國整體煉油設施仍然專注於滿足內部需求，這是我們看到的一個主題。第二，煉油廠和石化綜合設施之間的整合越來越深入。因此，我認為真正實現內部化需求，然後將產品產量轉移到更輕的最終產品，以便他們能夠內部化他們的石化綜合體。

And so I think those are the kind of the key policy pieces that we watch in terms of the, I'll call it, export relief valve, it seems like that's been relatively well contained. And I wouldn't say we see anything right now that suggests that there's a material change coming in the future on Chinese exports given their stated policy objectives. So I think that's sort of the incremental supply point that we see. And I think big picture of demand in the Asia Pacific market remains steady and a fair amount of, I'll just say, arbitrage barrels are still needed to clear from the Middle East and in India and even potentially from North Asia all the way into Europe to kind of keep the Atlantic Basin balance for distillate. So that's kind of the key thing we're watching, and I think we don't see a major shift there.

因此，我認為這些是我們關注的關鍵政策部分，就我所說的出口安全閥而言，似乎已經得到了相對良好的控制。考慮到中國既定的政策目標，我認為我們現在沒有看到任何跡象表明中國出口未來會發生重大變化。所以我認為這就是我們看到的增量供應點。我認為亞太市場的整體需求保持穩定，而且仍然需要從中東和印度，甚至可能從北亞一路清理到歐洲的相當數量的套利原油，以保持大西洋盆地餾分油的平衡。這是我們正在關注的關鍵問題，我認為我們不會看到重大轉變。

Michael Latimer, TD Cowen.

邁克爾·拉蒂默 (Michael Latimer)，TD Cowen。

It's Mike here on for Jason Gabelman.

我是 Mike，代表 Jason Gabelman 發言。

First, could you just talk about how your niche markets in the Rockies and Pacific Northwest are shaping up quarter to date? Markets like Portland, for example, have been pretty elevated for quite some time now, so I'm just trying to get a handle on the durability of those margins.

首先，您能否談談貴公司在落基山脈和太平洋西北地區的利基市場在本季迄今的進展？例如，像波特蘭這樣的市場在相當長的一段時間內已經處於相當高的水平，所以我只是想了解這些利潤的持久性。

Sure, yes.

當然可以。

I think I referenced this that our July combined index is about $13. So far (inaudible) of aggregates all of our markets, and that's pretty flat to where we were in June. And so I think the overall story there is probably very similar to what we saw in the back half of the second quarter in terms of the distillate market being strong.

我想我提到過，我們 7 月的綜合指數約為 13 美元。到目前為止（聽不清楚）我們所有市場的總量與 6 月相比基本持平。因此，我認為整體情況可能與我們在第二季後半段看到的餾分油市場強勁的情況非常相似。

And I commented on this previously, which is, I think, principally driven by open export market and reduced supply of biodiesel or renewable diesel, but were not domestically produced as well as imported, given the changes in the recent PTC, the production tax credit. So I think those are the factors that are influencing the distillate side of the barrel. I think we see strong demand, I think, in particular, debt demand strong globally. And so all those pieces are kind of pulling on the distillate barrel and the gas kind of side of the equation, I would call it, broadly probably a mid-cycle market condition. And then I think the biggest thing to watch in the future is really the changes in California refining fleet.

我之前對此發表過評論，我認為這主要是由於開放的出口市場和生物柴油或可再生柴油供應減少所致，但考慮到最近 PTC（生產稅收抵免）的變化，這些柴油的國內產量和進口量均低於進口量。所以我認為這些是影響蒸餾酒的因素。我認為我們看到了強勁的需求，特別是全球債務需求強勁。因此，所有這些因素都在拉動餾分油桶和天然氣等式的一側，我稱之為，大致可能是中期市場狀況。我認為未來最值得關注的事情是加州煉油廠的變化。

And to the extent that we do see the two competitor refiners there in Los Angeles and San Francisco, ceased operations in the fourth quarter and the first quarter of next year, I think it really further shifts the kind of import export parity balance over time, which I think practically speaking, just puts you more into a position where you're equally relying on renewables and biodiesel to balance the market.

就我們確實看到洛杉磯和舊金山的兩家競爭對手煉油廠在第四季度和明年第一季停止營運而言，我認為這確實會進一步改變進出口平價平衡，我認為實際上，這會讓你更加依賴再生能源和生物柴油來平衡市場。

All right, great.

好的，太好了。

And then my last one is just how you're thinking about your excess cash position. I think in the past, you've mentioned that the business is comfortable around $300 million of liquidity. So is still -- is that still the right range to think about?

我的最後一個問題是，您如何看待自己多餘的現金狀況。我想您過去曾提到過，該業務擁有約 3 億美元的流動資金。那麼這仍然是——這仍然是值得思考的正確範圍嗎？

And then as your stock has run up a bit, just how your appetite for M&A would be with that excess cash?

那麼，隨著你的股票價格上漲，你對這些過剩現金的併購意願會如何呢？

Yes. I think we've stated that our minimum liquidity target is $250 million to $300 million. So we're certainly in an excess capital position today. And as Will sort of mentioned in the earlier Q&A, I think we're going to continue to think about capital allocation in the same light and measure our opportunistic buybacks with pursuing our strategic growth priorities.

是的。我想我們已經聲明過，我們的最低流動性目標是 2.5 億至 3 億美元。所以我們今天肯定處於資本過剩的狀態。正如威爾在先前的問答中提到的那樣，我認為我們將繼續以同樣的眼光考慮資本配置，並衡量我們的機會性回購與追求我們的策略成長重點。

And on the M&A front, I would just say it's a -- I'd say, still a challenging market from a bid and ask perspective. And I'd say we're today principally focused on trying to find and develop internal opportunities or sort of smaller scale bolt-on solutions that help advance really principally on the cost reduction side, but certainly on other elements of market access that could improve our business, particularly on the Mainland.

在併購方面，我只想說，從買賣角度來看，這仍然是一個充滿挑戰的市場。我想說，我們今天主要致力於尋找和開發內部機會或某種小規模的附加解決方案，這些解決方案主要有助於在降低成本方面取得進展，但肯定也有助於在市場准入的其他方面改善我們的業務，特別是在大陸的業務。

Manav Gupta, UBS.

瑞銀的 Manav Gupta。

I apologize guys, I was having some technical difficulties, so couldn't join in time, so if this question has been asked, I apologize. But I just wanted your views on global quality discounts out there. How do you see heavier sour and other kinds of barrels in the global markets trades versus the light sweet barrels, if you could talk a little bit about that?

我很抱歉，大家，我遇到了一些技術問題，所以我無法及時加入，所以如果有人問了這個問題，我很抱歉。但我只是想了解一下您對全球品質折扣的看法。您如何看待全球市場交易中重質酸性原油和其他類型的原油與輕質低硫原油相比的表現，可以簡單談談嗎？

Sure. I would say -- big picture, I would say the -- I'll say the future incremental supply looks like it should, I would say, add pressure and expand the heavy light dip as we head into the winter. I would tell you that not seeing signs of that in the prompt market, and that probably goes all the way out into the September, October time frame. So continue to see A&S and grades like that trade at some pretty elevated premiums to Brent. And so I would say, while incremental supply should help kind of bring quality differentials or expand quality differentials again, have not seen that emerge at this point.

當然。我想說——從總體上看，我想說——我想說未來的增量供應看起來應該會增加壓力，並在我們進入冬季時擴大重度輕度下降的幅度。我想告訴你，在即期市場中沒有看到這種跡象，而且這種跡象可能會持續到九月和十月。因此，A&S 和類似等級原油的交易價格持續高於布蘭特原油。所以我想說，雖然增量供應應該有助於帶來品質差異或再次擴大品質差異，但目前還沒有看到這種情況出現。

You are seeing some tightening on the WCS side. Any comments you would like to make on that? I think WCS has now dropped to like 13% to WTI, but if you could -- because you do use a lot of WCS in the system. So if you could talk a little bit about the WCS market also?

您會看到 WCS 方面有些收緊。您對此有何評論？我認為 WCS 現在已經下降到 WTI 的 13% 左右，但如果可以的話——因為你確實在系統中使用了大量 WCS。那麼，您能否也談談 WCS 市場呢？

Yes. I mean I think certainly been tighter than we would expect in the, I'll say, almost in the high single digits at points in time here. And I think a little bit of incremental supply coming back on from Latin America and probably some reduced runs here as you get to the turnaround season in the fourth quarter, I think, are setting the stage there for a bit wider differentials there. So those would be kind of the incremental changes that we've seen, nothing earth shattering there probably to what you've heard in the market from other parties.

是的。我的意思是，我認為肯定比我們預期的要緊，我想說，在某些時間點幾乎處於高個位數。我認為，隨著第四季度的轉折季節，拉丁美洲的供應量將有所回升，而這裡的供應量可能會有所減少，我認為這將為那裡的價差進一步擴大奠定基礎。因此，這些只是我們所看到的漸進式變化，與您從市場上其他方聽到的相比，可能沒有什麼驚天動地的變化。

There are no more questions in the queue.

隊列中沒有其他問題。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I'd like to turn the conference back over to Will Monteleone for any closing remarks.

我想將會議交還給威爾·蒙特萊昂 (Will Monteleone) 做結束語。

Thank you. We're encouraged by the improving market backdrop and remain focused on executing on our key objectives as the key to driving our shareholder value. Thank you for joining us today.

謝謝。市場環境的改善令我們感到鼓舞，我們將繼續專注於實現我們的關鍵目標，以此作為推動股東價值的關鍵。感謝您今天加入我們。

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。