Par Pacific Holdings, Inc.

Greetings and welcome to the PAR Pacific Holdings Fourth Quarter Earnings Conference Call. All participants will be in lesson-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by a zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. It is now my pleasure to introduce your host, Ashimi Patel, Manager, Investor Relations for PAR Pacific Holdings. Thank you, Ms. Patel. You may begin.

Thank you, Sarah. Welcome to PAR Pacific's fourth 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, 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, Bill Pate.

Thank you, Ashimi. Good morning to our conference call participants. It goes without saying that 2020 was an extremely challenging year for all of us. Last February on our earnings call, it was inconceivable that global consumption of crude oil would drop from 100 million barrels per day to 80 million barrels per day over the span of a few weeks. Our 2020 financial performance reflects the resulting collapse in prices and margins, despite our actions to reduce costs and preserve liquidity. Full-year adjusted EBITDA was a loss of $86.7 million, and our adjusted net loss was $469 per share. I'm pleased with the way our team responded to the pandemic. We implemented additional layers of safe workplace practices and identified multiple areas to reduce costs. We also finished the year with our best safety and environmental performance. We accomplished our cost control objectives while successfully completing two major turnarounds, and we expect 2021 CapEx to be less than $45 million. Based on this estimate, the current market outlook and good operational performance, we will generate free cash flow for 2021. We had a busy fourth quarter, completing a turnaround in Wyoming, preparing for another in Washington and bringing our renewables logistics project online. We received the first unit train of ethanol into our Tacoma facility in November, and we completed the Washington turnaround this month. With no major planned downtime other than the second phase of the Washington turnaround early next year, our refineries have a clear pathway to strong free cash flow generation for several years. During the fourth quarter, Several positive developments began to lift business profits despite weak cracks. Unfortunately, these positive developments were offset by a non-cash mark-to-market charge associated with the steep climb in RINs pricing. Most of the notable improvements related to demand for our products. Hawaii lifted its 14-day quarantine mandate, and passenger count data has been very encouraging. Holiday season arrivals were close to 40% of pre-pandemic levels, and that trend has remained steady early this year. Current Hawaii jet fuel demand is a sweet spot for our production capability at the Parr East Refinery. In all our markets, we continue to see recovery in ground transportation fuels as COVID-19 related restrictions are lifted. At this time, improving market cracks are the biggest factor to stronger financial performance. On that note, the 2021 calendar strip for our Singapore 312 market index has improved more than $2.50 per barrel since mid-November. With the outages from the current cold, we expect the North American inventories to rebalance and believe a return to more normal cracks on the mainland is ongoing. Retail was a strong contributor to overall earnings during the quarter and for the year. Overall, our retail business unit adjusted EBITDA has grown at a 28% compound annual growth rate from 2017 to 2020. We've started the rebranding of our P&W retail locations to our proprietary Nom Nom brand. This action allows us to optimize our fuel supply arrangements, launch a loyalty program, and upgrade our point of sale to permit the latest pricing and marketing solutions. We're also pleased to announce the sale and leaseback of 22 of our Hawaii retail real estate locations for approximately $116 million at a very attractive valuation. We closed on most of these properties this week. Today we're a stronger company. We're well positioned to return to profitability as the economy recovers and demand returns to 2019 levels. Our leverage to distillate cracks is significant. A $2 per barrel improvement is equivalent to $1 per share of additional free cash flow. We benefit particularly from the jet fuel market with more than four times the exposure to jet cracks than the rest of the industry. The pandemic environment has been challenging for the refining sector with many permanent plant closures. However, we believe that the commercial improvements we have accomplished, coupled with our cost-cutting initiatives, position us well as vaccination rates climb, cases drop, and global demand recovers. At this time, I'll turn it over to Joseph to discuss our operations in more detail.