Par Pacific Announces 2025 Capital Expenditure Guidance

Rhea-AI Summary

Par Pacific Holdings (NYSE: PARR) has announced its 2025 capital expenditure and turnaround outlay guidance ranging from $210 million to $240 million. The breakdown includes:

• $85-95 million for turnarounds & catalyst
• $75-85 million for maintenance
• $50-60 million for growth initiatives

The growth expenditure includes approximately $30-40 million for completing the Hawaii renewable hydrotreater project and $10 million for ERP system enhancements. Additionally, $10 million is allocated for reliability investments. The company also expects its 2024 capital expenditures to reach the lower end of the previously announced $220-250 million range.

Positive

• Strategic investment in renewable energy through Hawaii hydrotreater project
• Investment in operational efficiency through ERP system enhancements
• Dedicated allocation for reliability improvements

Negative

• Significant capital expenditure requirements may impact cash flow
• High maintenance costs representing about 35% of total expenditure

Insights

Financial Analyst

The 2025 capex guidance of $210-240 million signals Par Pacific's strategic focus on operational sustainability and growth initiatives. The $30-40 million allocation for Hawaii's renewable hydrotreater project demonstrates commitment to green energy transition while the $10 million ERP enhancement indicates technological modernization efforts. Notably, the $85-95 million earmarked for turnarounds and catalyst management suggests proactive maintenance planning. The company's ability to achieve the lower end of 2024's guidance range ($220-250 million) indicates efficient capital deployment and strong project execution capabilities. For context, these investment levels are significant relative to PARR's $860 million market cap, representing approximately 25% of the company's market value. The balanced allocation between maintenance, growth and sustainability projects positions PARR well for future operational efficiency and market competitiveness in the evolving energy landscape.

Energy Infrastructure Specialist

The capital expenditure plan reveals a well-structured approach to refinery optimization and environmental compliance. The substantial allocation to turnarounds ($85-95 million) is important for maintaining operational integrity and preventing unplanned downtime. The renewable hydrotreater project in Hawaii aligns with the state's aggressive clean energy goals and positions PARR advantageously in a market increasingly focused on sustainable fuels. The $10 million reliability investments, though modest, are strategically important for maintaining operational excellence. The ERP system enhancement indicates PARR's recognition of digital transformation's importance in modern refinery operations. This comprehensive capex strategy balances essential maintenance with forward-looking investments, important for maintaining competitiveness in the evolving petroleum refining sector.

HOUSTON, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific”) today announced its 2025 capital expenditure and turnaround outlay guidance with a range of $210 million to $240 million.

	2025 Capital Expenditure and Turnaround Outlay Guidance
$ in millions
Turnarounds & Catalyst	$85 - 95
Maintenance 1	75 - 85
Growth 2	50 - 60
Total Capital Expenditure and Turnaround Outlay	$210 - 240

1. Includes approximately $10 million in reliability investments.
2. Includes approximately $30-40 million to complete the Hawaii renewable hydrotreater project and $10 million in ERP system enhancements.

Management expects 2024 capital expenditures and turnaround outlays to come in at the low end of the $220 million to $250 million guidance range.

About Par Pacific

Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the “nomnom” convenience store chain in the Pacific Northwest. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com.

Forward-Looking Statements

This news release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about Par Pacific’s anticipated 2025 capital expenditures and turnaround costs. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements because of new information, future events or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.

For more information contact:

Ashimi Patel
VP, Investor Relations and Sustainability
(832) 916-3355
apatel@parpacific.com

FAQ

What is Par Pacific's (PARR) capital expenditure guidance for 2025?

Par Pacific's capital expenditure guidance for 2025 ranges from $210 million to $240 million, including turnaround outlays.

How much is PARR investing in the Hawaii renewable hydrotreater project?

Par Pacific is investing approximately $30-40 million to complete the Hawaii renewable hydrotreater project in 2025.

What are the main components of PARR's 2025 capital expenditure plan?

The main components are $85-95 million for turnarounds & catalyst, $75-85 million for maintenance, and $50-60 million for growth initiatives.

How does PARR's 2025 capital expenditure guidance compare to 2024?

The 2025 guidance of $210-240 million is slightly lower than the 2024 guidance of $220-250 million, with 2024 expected to finish at the lower end of its range.