Par Pacific Holdings, Inc.

Good day and welcome to the PAR Pacific third quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And 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 Ms. Ashimi Patel, Director of Investor Relations, please go ahead.

Thank you, Operator. Welcome to Power Pacific's third quarter earnings conference call. Joining me today are William Pate, President and Chief Executive Officer, Richard Creamer, EVP of Refining and Logistics, Jim Yates, EVP of Retail, and Will Monteleone, EVP and Chief Financial Officer. 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, William Pate.

Thank you, Hashimi. Good morning to our conference call participants. We're pleased to announce a second consecutive quarter of strong financial and operating results as all our business segments had strong profitability. Third quarter adjusted net income was $2.88 per share and adjusted EBITDA was $214 million. Our organization is excited to return to a growth posture with our recent agreement to purchase ExxonMobil's Billings Refinery and related logistics assets for $310 million. As previously noted, this acquisition will double our mainland refining capacity and significantly boost our logistics business. We expect to fund the acquisition next spring with cash on hand. This quarter, both our retail and logistics business segments reported record quarterly adjusted EBITDA. The retail unit benefited from declining crude oil prices during the third quarter, Retail price declines also partially reversed a portion of the demand destruction that we experienced in the spring when gasoline pump prices spiked to very high levels. Our logistics profitability continued to improve due to increasing throughput and sales throughout our system. Strong operational reliability, a high exposure to distillate markets, and falling crude prices benefited our refining segment despite refined product cracks that softened from record second quarter levels. While gasoline cracks have dropped significantly, distillate cracks remain strong due to high natural gas prices and significant incremental demand from gas to oil substitution in Europe and elsewhere. Prompt distillate prices are approximately $40 a barrel above gasoline prices in Singapore. Forward distillate cracks remain at high levels through the end of 2023 due to rising global demand. The profitability of our business has boosted free cash flow over the past two quarters, bolstering our balance sheet. With over $400 million of gap net income generated during the last six months, our book equity is back to pre-pandemic levels. Over the near term, we will focus on successfully closing the Billings transaction and integrating that business into our organization. We expect the Billings operation to be immediately accretive to our earnings and cash flow. We're also making progress on several renewable energy projects. We have a small coprocessing investment in Tacoma scheduled to be operational in the first quarter, and our joint venture with Hawaiian Airlines to explore sustainable aviation fuel is advancing quickly. The Hawaii SAF project looks very attractive based on the renewables market outlook and current levels of government support. While we are cautiously assessing our feedstock options and mindful of potential government policy changes, we expect to make a final investment decision next spring. We believe this timeline would permit us to break crown next year and commence operations during early 2025. We believe we can complete this conversion project at less than $1.50 per gallon of annual production capacity. Collectively, these two projects, in conjunction with our blending operations, would generate enough RENs to fully cover our obligation for all units other than D3s. We're also working on a green hydrogen project at our Washington refinery that would be highly competitive with a low all-in cost of energy and a low greenhouse gas emissions profile. I'll now turn the call over to Richard to discuss our refining and logistics operations. Thank you, Bill.