Par Pacific Holdings, Inc.

Good day and welcome to the PAR Pacific first quarter 2021 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ashimi Patel. Please go ahead.

Thank you, Matt. Welcome to PAR Pacific's first 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 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. Our first quarter results reflect the continuing demand suppression brought out by the global pandemic. However, we noted several positive developments in the United States during the first quarter. An increase in vaccination rates, improving mobility trends, growing employment, and increasing business openings. These factors indicate that our industry is at a key inflection point. First quarter adjusted EBITDA was a loss of 43 million, and adjusted net loss was $1.55 per share. These results included a $47 million non-cash prior period mark-to-market expense. In March, we were pleased to see substantial improvement in our refinery's profitability. This was a welcome change and market conditions continued to improve early in the second quarter. Air travel to Hawaii increased significantly with the advent of spring break. This growth boosted our logistics segment utilization and profitability as neighbor island demand approached normal. Passenger arrivals to the state are now approximately 65% of pre-pandemic levels primarily driven by increases in domestic travel from the U.S. mainland. International arrivals continue to lag domestic trends due to lower vaccination rates in key nations like Japan. Despite the slow international tourist recovery in Hawaii, we can operate our refinery in the range of 85,000 barrels per day and easily place all our refined product in local markets. On the mainland, product cracks have improved seasonally as inventories have returned to normal levels and refined product demand recovers. Cracks are improved over prior year, even when adjusted for the record RINs prices. The Texas freeze knocked out a number of refining units, and as a result, inventories are now at normal and even low levels in some paths. Wyoming has particularly benefited from the improving environment. We expect our retail segment to rebound from the weaker Q1 performance as crude oil prices stabilize and traffic volumes increase. Our Northwest retail unit began rebranding to our proprietary Nom Nom convenience store brand this winter, and we expect this initiative will boost segment profit in coming quarters. In Washington State, several pieces of legislation have been passed to help reduce greenhouse gas emissions. If these bills are signed by Governor Inslee, they will enact cap-and-trade limitations on greenhouse gas emissions and low-carbon fuel standard regulations similar to the California framework. We expect these regulations will have a significant impact on the industry, although establishing the regulatory framework will take time. We're confident that our operations are well positioned for these new regulations, given our low Scope 1 greenhouse gas emissions, our newly completed renewables logistics system, and our unique product yield. During the first quarter, we closed two significant transactions to continue to increase our liquidity. We completed $116 million sale leaseback of certain real estate properties and an $87 million equity issuance. Our liquidity and net debt position are in the best shape since the closing of our Tacoma Refinery acquisition in January 2019. Our current liquidity of $287 million is substantially greater than liquidity levels at the end of 2019 when we faced three major turnarounds and unbeknownst to us, a historic refining downturn. Our net debt position is also down to $462 million, more than $45 million below our net debt level at year-end 2019. Overall, we anticipate improving profitability as the economy recovers. Forward cracks in Singapore are in steep contango, anticipating increasing demand. Going forward, we expect much of the global demand growth to be distillate. Refined product demand softness is now largely concentrated in jet fuel. The largest domestic jet fuel markets, like the United States and China, are rapidly recovering to pre-pandemic levels. Remaining demand recovery will largely revolve around international travel as countries open their borders to other markets. While there is a limited global recovery underway, there are occasional setbacks like the current surge in India. Volatility is high as the market attempts to identify recovery trends. Nonetheless, after the market is fully recovered, we expect a balanced market with high utilization as a result of the refinery closures during the pandemic. At this time, I'll turn it over to Joseph to discuss our operations in more detail.