Par Pacific Holdings, Inc.

Good morning and welcome to the PAR Pacific 4th Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal conference buses 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 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, Director of Investor Relations. Please go ahead.

Thank you, Anthony. Welcome to Power Pacific's fourth quarter earnings conference call. Joining me today are William Pape, Chief Executive Officer, Will Monteleone, President, Sean Flores, SVP and Chief Financial Officer, Richard Priemer, EVP of Refining and Logistics, and Danielle Mattiussi, SVP and Chief Retail 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 Chief Executive Officer, William Pate.

Thank you, Ashimi. Good morning to our conference call participants. 2022 was a breakthrough financial year for our company. Early last year, product cracks rebounded from pandemic lows and remained strong throughout the rest of the year. Adjusted EBITDA was $643 million, and adjusted net income was $475 million, or $7.93 per share. Nearly all our adjusted net income was converted into cash from operations for the year. We used our free cash flow to strengthen our balance sheet. We paid down nearly $65 million in funded debt and built our cash on hand by more than $375 million. Consequently, our year-end net debt declined to approximately $25 million. Our team also announced a comprehensive refinancing of our funded debt this month, further reducing our cost of capital. This financing, coupled with our strong liquidity, leaves us well-positioned to close the billings transaction. We're targeting a June 1st closing. Entering 2023, our markets continue to be tight. Global product cracks remain strong due to increasing demand, principally due to China, which has abandoned its zero COVID lockdown policy. As evidence of growing demand, Chinese refiners have curtailed exports in the first quarter. Additional European sanctions on Russian petroleum products have tightened freight markets and increased the cost of exports, improving overall refining economics. These trends are somewhat offset by declining natural gas prices, which tend to reduce refinery operating costs and product cracks. The Chinese reopening has combined with overall increased global air travel to boost jet fuel demand, a key element of our sales slate. In Singapore, the jet regrade or the difference between the price of jet fuel and ultra-low sulfur diesel has narrowed considerably and occasionally flipped positive for the first time since 2019. We're making significant progress on our renewables projects. In this area, our focus remains on smaller scale projects that afford us maximum flexibility given uncertainty surrounding feedstock sourcing, government credit pricing, and overall market dynamics. For example, our Tacoma co-feed project will cost less than $2 million, but it will cover 50% of our D4 shortfall. We expect this project to be running next quarter. We're also completing the engineering for the conversion of a unit in Hawaii to produce sustainable aviation fuel. We believe we can complete this 60 million gallon per year project, including feedstock pretreatment, for less than $1.50 per gallon of annual production capacity. Our upstream affiliate Laramie also completed a refinancing this quarter, redeeming its preferred stock and replacing their existing term loan facility with a new credit facility. We expect an approximate $10 million distribution in March in conjunction with this financing. I want to congratulate Will Monteleone and Sean Flores in their new roles as president and CFO, respectively. Like many of our colleagues, they're passionate and highly focused on our corporate mission and strategy, a key reason for our growth and success. I will now turn the call over to Will to discuss our commercial and operational performance.