Par Pacific Holdings, Inc.

Good day and welcome to the PAR Pacific third quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then 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. I would now like to turn the conference over to Ashimi Patel, Senior Manager, Investor Relations. Please go ahead.

Thank you, Drew. 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 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 Tate.

Thank you, Ashimi. Good morning to our conference call participants. We're very pleased with our third quarter financial results. All our refining units were profitable, and our retail and logistics business segments continued to generate significant profits. Adjusted EBITDA was $85 million, and adjusted net income was 76 cents per share. These results include a $29 million non-cash mark-to-market benefit for our prior year's RFS compliance. Wyoming refining and logistics profits were particularly notable as the business unit recorded one of its most profitable quarters ever. Strong summer demand bolstered regional product cracks and excellent operational and commercial execution drove record crude charge and sales volumes. Hawaii refining and logistics profitability continued to improve despite the decline in tourism due to the Delta variant outbreak. Unlike prior quarters, crude oil prices were steady, so we experienced very little product price sales lag during the quarter. In the fourth quarter, Asian market improvements are accelerating. Global refined product demand is increasing with significant increases in international air travel. The impact of Chinese tax reforms and concerns about winter supply have diminished Singapore inventory levels. As a result, current Singapore cracks as well as the forward outlook are close to and at times above mid-cycle. Higher product cracks have also contributed to a tighter crude oil market with increased differentials and very high backwardation. These crude oil factors offset the significant improvement in product cracks. Rinse prices were highly volatile during the quarter as the market reacted to conflicting rumors and administrative comments on the renewable fuel standard. We believe the EPA needs to act quickly to affirm our outstanding small refinery exemption applications and to address 2021 RVO obligation levels. With the return to profitability and growing liquidity, we are reviewing our capital allocation options. Reducing our cost of capital remains our highest priority, and debt reduction is presently the most important element of this effort. We were able to repurchase a small amount of our senior secured notes this quarter, In addition to managing our capital structure, we're also evaluating growth opportunities in our local markets. In this regard, I'd like to make a few comments about the energy transition. As we consider longer-term strategies in our market position, we're exploring various opportunities in the Hawaii and Washington markets in particular. To this end, we'll continue to focus on local needs and leveraging regional strengths. And each market demands a different solution. Hawaii is a fairly difficult market for energy transition initiatives given the lack of any carbon mitigation incentive, high electricity costs, and the high cost and complexity of renewable feedstocks. Nonetheless, we are actively exploring concepts that leverage our local resources and address the state's needs. On the other hand, Washington has provided significant incentives with the passage of a low carbon fuel standard and a carbon emission cap and trade system. The region also benefits from inexpensive low-carbon electricity due to abundant hydroelectric power. Furthermore, our operation is an attractive delivery point for renewable fuels and or feedstocks. Given these features, we're working with local agencies and developers to try and position Tacoma as a leader in the development of hydrogen infrastructure. But this effort will take a considerable amount of time and public support. We'll continue to focus on smaller projects with more limited capital requirements. Our most significant energy transition efforts will be small capital, high return projects within our refineries as we focus on reducing our carbon and energy profile while enhancing yields and reducing operating expense. I'm also pleased to announce that we published our inaugural sustainability report. With our focus on community needs, it's important that we demonstrate our adherence to strong ESG standards. This report illustrates our commitment as well as a corporate culture built on integrity and respect for the environment, our communities, our employees, and others. At this time, I'll turn the call over to Joseph to discuss our operational performance.