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Par Pacific (NYSE: PARR) | Company Profile, History, Competitors

 

Par Pacific (NYSE: PARR) is a refiner and gas station company with operations in Hawaii and Wyoming. The company was formed in 2012 out of the bankruptcy of Delta Petroleum and is headquartered in Houston, TX.

In 2011, Delta Petroleum, a natural gas producer, filed for bankruptcy as natural gas prices plummeted. Par was formed from the emergence of bankruptcy. In 2013, Par acquired the Hawaiian assets from Tesoro. Currently today, it manages fuel and refining assets in Hawaii and Wyoming.

Business Overview

PARR operates in two main segments:
  • Refining (83% of 2017 Revenues): Consists of refining assets in Hawaii and Wyoming
  • Logistics (5% of 2017 Revenues): Consists of fuel transportation assets in Hawaii and Wyoming.
  • Retail (12% of 2017 Revenues): Consists of gas station assets in Hawaii.
The company also has a 42% interest in Laramie Energy, which has oil & gas assets in the Piceance Basin in Colorado.

Refining Segment

PARR owns two refineries that produce gasoline, diesel, jet fuel and low sulfur fuel oil.

Hawaiian Refinery
94kbd refinery on the island of Oahu. Nelson complexity of 5.7. It is the largest refinery in Hawaii. The refinery produces diesel, gasoline, jet fuel, marine fuel and low sulfur fuel oil.

Newcastle, WY Refinery
18kbd refinery in Newcastle, WY. Nelson complexity of 11.0. Serves the Rapid City, SD market. The refinery products gasoline, distillates and jet fuel.

Logistics Segment

PARR has infrastructure that transports refined products from its markets.

Hawaii
Owns two barges that deliver product to eight refined product terminals. Owns 27 mile pipeline network to deliver refined products. Owns Sand Island storage terminal which can hold 30kbls of refined product.

Newcastle, WY
140 mile crude gathering pipeline that brings crude to the Newcastle refinery. 40-mile refined products pipeline to move refined product to the Magellan Products pipeline. 650kbls of refined storage capacity at the refinery.

Retail Segment

PARR owns 91 retail gasoline stations across five Hawaiian islands. PARR has rights to market the gasoline stations under Tesoro and "76" brands.

History

The company was formed out of the bankruptcy of Delta Petroleum when it emerged from bankruptcy in 2012.

In 2013, PARR acquired Hawaiian refining assets from Tesoro.

In 2015, PARR acquired Mid Pac Petroleum, which had 91 retail gas stations in Hawaii.

In 2015, PARR made an investment in Laramie Energy to increase its ownership to 42%.

In 2016, PARR acquired a 18kbd refinery in Newcastle, Wyoming.

Management

William C. Pate (CEO): William Pate serves as CEO since 2015. Prior, he was the Co-President of Equity Group Investments, an investment firm founded by Sam Zell. He had also worked at Blackstone and Credit Suisse.

William Monteleone (CFO): William Monteleone serves as CFO since 2017. Prior, he served in various roles at the company including VP Mergers & Acquisitions. He had also worked as a Vice President at Equity Group Investments and Bank of America.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $886 
$3,108 
$2,066 
$1,865 
$2,443 
 Gross Profit $23 
$157 
 $274 
 $197 
 $343 
 Operating Profit($47)
($38)$62 
($17)$94 
 Net Income($79)($47)($40)($46)$73 
 EPS($3.82)($1.43)($1.05)($1.08)$1.57 

Par Pacific Holdings, Inc.
 
  Type     Public
  Ticker     NYSE: PARR
  Industry Energy
  Founded 1984
  Headquarters Houston, TX
  Revenues
$2.4bn (2017)
  Employees 905 (2017)
  Website parpacific.com