Par Pacific Holdings, Inc.

Greetings and welcome to the Park Pacific Holdings third quarter earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ashimi Patel, Manager, Investor Relations for Park Pacific Holdings. Thank you, Ms. Patel. You may begin.

Thank you, Shamali. Welcome to PAR Pacific's Third Quarter Earnings Conference Call. Joining me today are William Pate, President and Chief Executive Officer, Will Monteleone, Chief Financial Officer, and Joseph Israel, President and Chief Executive Officer of PAR Petroleum. 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 filing with the SEC for non-GAAP reconciliations and additional information. I'll now turn the call over to our President and Chief Executive Officer, Bill Pate.

Thank you, Ashimi. Good morning to our conference call participants. During the third quarter, we reported negative adjusted EBITDA of $16 million and an adjusted net loss of $1.06 per share. While conditions improved modestly from the prior period, we continued to experience seasonally weak product cracks during the third quarter. We're also continuing to see improvements in the crude oil market. In the third quarter, the Chinese reduced their record buying of crude oil when compared to late spring and summer, and as a result, waterborne barrels have been plentiful most of this quarter. The reduction in crude differentials bodes well next year for our Hawaii refining business. Global demand has slowly begun to recover from the depths of April and May, with product inventories declining materially in the third quarter. However, a winter surge in COVID-19 could halt or even reverse some of the improving trends that we are seeing across our businesses. Consequently, we're focused on improving our earnings capability without regard to market improvements. On the cost management front, we've identified $45 million in reduced cash expenditures for 2021 when compared to our third quarter run rate. When combined with contractual improvements, we anticipate well more than a $100 million increase to our 2021 earnings profile. None of these improvements are contingent on market recovery. We also successfully completed both our Hawaii and Wyoming turnarounds since our last earnings call. We've decided to reduce the scope of our Washington turnaround scheduled in the first quarter of 2021 to defer some planned growth projects. This was a difficult decision, but given the current outlook, it makes more sense to delay the planned improvements to our facility. Operationally, in Hawaii, we continue to operate only PARIs to meet lower local demand. Beginning October 15th, Hawaii's 14-day quarantine was modified to permit visitors to pre-test for COVID-19, and we are closely watching passenger arrival trends. Early indications have been very encouraging for a resumption in Hawaii tourism and therefore jet fuel demand. Although the logistics segment was a positive contributor, third quarter profit continued to be lower than the historical average due to lower refining throughput, some of which was related to the heavy turnaround schedule. In addition, lower jet fuel demand resulted in underutilization of our Hawaii logistics assets. We are releasing two barges at the end of 2020 to improve profitability. This action is a key component of our cost savings for 2021. We also have completed our biofuels logistics system in Tacoma and are scheduled to receive our first unit train of ethanol next month. We believe the market demand for these logistics assets is strong given our facility's unique attributes and proximity to growing demand centers. Retail continues to be a strong contributor to overall earnings. Fuel margins were strong, but they declined from record highs in Q2 when commodity price declines benefited margins disproportionately. Volumes improved from second quarter lows as economic activity increased. Regarding the pandemic and our ongoing efforts to protect the well-being of our employees and communities, our team has done a great job of maintaining operations and executing our turnarounds with effective social distancing. We've only identified one possible incident of workplace spread and have had zero positive cases from workplace contact tracing. I want to thank our employees for their dedication and for continuing to execute safely and efficiently. We believe that the commercial improvements we have obtained, when coupled with our cost-cutting and profit-enhancing initiatives, positions us to realizing our objective of generating significant profitability and free cash flow. At this time, I'll turn the call over to Joseph to further discuss our operational activities.