Par Pacific Holdings, Inc. (NYSE:PARR) Q4 2022 Earnings Call Transcript

Shawn Flores: Jason, this is Shawn. I think as we referenced, we’re a growth-oriented company, and our near-term capital allocation policies will reflect that strategy. And I think what we said is we want to get through Billings. We want to integrate it. Will mentioned some capital projects that are on the table to increase reliability, which we think will be really attractive. I think after Billings is integrated, we’ll turn our focus to identifying other attractive opportunities to enhance our network. And I think after a period of time, if we’re unable to identify capital projects, then we’ll certainly evaluate returning capital to shareholders. Bill, anything you’d add?

William Pate: No.

Jason Gabelman: Got it. And in terms of the inorganic growth aspect, are there areas that are more attractive, either regionally or by asset type?

William Pate: Jason, this is Bill. I’ve said this before, and I’ll say it again, we’re really, first of all, focused on closing and integrating Billings. But even beyond that, we continue to look at the same area, and we continue to look at the same avenues of growth, investing in renewables, which we’re doing right now, and we expect to continue to do; adding to our retail footprint, which we’re doing with the new-to-industry builds as well as the recent acquisition, which is going quite well. And then obviously, within our market, PADD 4 and PADD 5, we’ll continue to look at communities that — additional communities that we can serve through additional refinery acquisitions.

Jason Gabelman: Understood. And just one more on — there was an inflow on cash from financing, I think, of almost $15 million. Can you disclose what that was related to?

William Pate: Yes, Jason, I think it was a number of small items. I think one I’d call out is we finance our prefunding on our insurance premiums. It’s roughly $15 million to $20 million. And so that’s sort of — it’s located in 2 places. You’ll see it as an inflow in the financing section and an outflow in the cash from ops. The other small item was just general funding and our working capital in Hawaii under the draw facility, but not a big.

Operator: There appears there are no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to William Pate for any closing remarks.

William Pate: Thank you, Anthony. I want to thank everybody for joining us this morning. This is an exciting time for Par Pacific. And with a favorable market outlook, we look forward to closing and integrating the Billings acquisition, and the continued growth of our company. Have a good day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.