10-Q 1 parr-20220630.htm 10-Q parr-20220630
FALSE0000821483--12-312022Q2P1Yhttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrent0.05445.0000008214832022-01-012022-06-3000008214832022-08-03xbrli:shares00008214832022-06-30iso4217:USD00008214832021-12-31iso4217:USDxbrli:shares00008214832022-04-012022-06-3000008214832021-04-012021-06-3000008214832021-01-012021-06-3000008214832020-12-3100008214832021-06-300000821483us-gaap:CommonStockMember2020-12-310000821483us-gaap:AdditionalPaidInCapitalMember2020-12-310000821483us-gaap:RetainedEarningsMember2020-12-310000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000821483us-gaap:CommonStockMember2021-01-012021-03-310000821483us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100008214832021-01-012021-03-310000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000821483us-gaap:RetainedEarningsMember2021-01-012021-03-310000821483us-gaap:CommonStockMember2021-03-310000821483us-gaap:AdditionalPaidInCapitalMember2021-03-310000821483us-gaap:RetainedEarningsMember2021-03-310000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100008214832021-03-310000821483us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000821483us-gaap:CommonStockMember2021-04-012021-06-300000821483us-gaap:RetainedEarningsMember2021-04-012021-06-300000821483us-gaap:CommonStockMember2021-06-300000821483us-gaap:AdditionalPaidInCapitalMember2021-06-300000821483us-gaap:RetainedEarningsMember2021-06-300000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000821483us-gaap:CommonStockMember2021-12-310000821483us-gaap:AdditionalPaidInCapitalMember2021-12-310000821483us-gaap:RetainedEarningsMember2021-12-310000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000821483us-gaap:CommonStockMember2022-01-012022-03-310000821483us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100008214832022-01-012022-03-310000821483us-gaap:RetainedEarningsMember2022-01-012022-03-310000821483us-gaap:CommonStockMember2022-03-310000821483us-gaap:AdditionalPaidInCapitalMember2022-03-310000821483us-gaap:RetainedEarningsMember2022-03-310000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100008214832022-03-310000821483us-gaap:CommonStockMember2022-04-012022-06-300000821483us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000821483us-gaap:RetainedEarningsMember2022-04-012022-06-300000821483us-gaap:CommonStockMember2022-06-300000821483us-gaap:AdditionalPaidInCapitalMember2022-06-300000821483us-gaap:RetainedEarningsMember2022-06-300000821483us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-30parr:segmentparr:refinery0000821483parr:LaramieMember2022-06-30xbrli:pure0000821483parr:LaramieMember2021-12-310000821483us-gaap:RevolvingCreditFacilityMemberparr:LaramieMember2022-06-300000821483parr:LaramieMember2022-04-012022-06-300000821483parr:LaramieMember2021-04-012021-06-300000821483parr:LaramieMember2022-01-012022-06-300000821483parr:LaramieMember2021-01-012021-06-300000821483parr:RefiningMemberparr:GasolineMember2022-04-012022-06-300000821483parr:LogisticsMemberparr:GasolineMember2022-04-012022-06-300000821483parr:GasolineMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMemberparr:DistillatesMember2022-04-012022-06-300000821483parr:LogisticsMemberparr:DistillatesMember2022-04-012022-06-300000821483parr:DistillatesMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMemberparr:OtherRefinedProductsMember2022-04-012022-06-300000821483parr:LogisticsMemberparr:OtherRefinedProductsMember2022-04-012022-06-300000821483parr:OtherRefinedProductsMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMemberparr:MerchandiseMember2022-04-012022-06-300000821483parr:LogisticsMemberparr:MerchandiseMember2022-04-012022-06-300000821483parr:MerchandiseMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMemberparr:TransportationandTerminallingServicesMember2022-04-012022-06-300000821483parr:LogisticsMemberparr:TransportationandTerminallingServicesMember2022-04-012022-06-300000821483parr:TransportationandTerminallingServicesMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMemberparr:OtherRevenuesMember2022-04-012022-06-300000821483parr:LogisticsMemberparr:OtherRevenuesMember2022-04-012022-06-300000821483parr:OtherRevenuesMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMember2022-04-012022-06-300000821483parr:LogisticsMember2022-04-012022-06-300000821483parr:RetailSegmentMember2022-04-012022-06-300000821483parr:RefiningMemberparr:GasolineMember2021-04-012021-06-300000821483parr:LogisticsMemberparr:GasolineMember2021-04-012021-06-300000821483parr:GasolineMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMemberparr:DistillatesMember2021-04-012021-06-300000821483parr:LogisticsMemberparr:DistillatesMember2021-04-012021-06-300000821483parr:DistillatesMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMemberparr:OtherRefinedProductsMember2021-04-012021-06-300000821483parr:LogisticsMemberparr:OtherRefinedProductsMember2021-04-012021-06-300000821483parr:OtherRefinedProductsMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMemberparr:MerchandiseMember2021-04-012021-06-300000821483parr:LogisticsMemberparr:MerchandiseMember2021-04-012021-06-300000821483parr:MerchandiseMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMemberparr:TransportationandTerminallingServicesMember2021-04-012021-06-300000821483parr:LogisticsMemberparr:TransportationandTerminallingServicesMember2021-04-012021-06-300000821483parr:TransportationandTerminallingServicesMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMemberparr:OtherRevenuesMember2021-04-012021-06-300000821483parr:LogisticsMemberparr:OtherRevenuesMember2021-04-012021-06-300000821483parr:OtherRevenuesMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMember2021-04-012021-06-300000821483parr:LogisticsMember2021-04-012021-06-300000821483parr:RetailSegmentMember2021-04-012021-06-300000821483parr:RefiningMemberparr:GasolineMember2022-01-012022-06-300000821483parr:LogisticsMemberparr:GasolineMember2022-01-012022-06-300000821483parr:GasolineMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMemberparr:DistillatesMember2022-01-012022-06-300000821483parr:LogisticsMemberparr:DistillatesMember2022-01-012022-06-300000821483parr:DistillatesMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMemberparr:OtherRefinedProductsMember2022-01-012022-06-300000821483parr:LogisticsMemberparr:OtherRefinedProductsMember2022-01-012022-06-300000821483parr:OtherRefinedProductsMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMemberparr:MerchandiseMember2022-01-012022-06-300000821483parr:LogisticsMemberparr:MerchandiseMember2022-01-012022-06-300000821483parr:MerchandiseMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMemberparr:TransportationandTerminallingServicesMember2022-01-012022-06-300000821483parr:LogisticsMemberparr:TransportationandTerminallingServicesMember2022-01-012022-06-300000821483parr:TransportationandTerminallingServicesMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMemberparr:OtherRevenuesMember2022-01-012022-06-300000821483parr:LogisticsMemberparr:OtherRevenuesMember2022-01-012022-06-300000821483parr:OtherRevenuesMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMember2022-01-012022-06-300000821483parr:LogisticsMember2022-01-012022-06-300000821483parr:RetailSegmentMember2022-01-012022-06-300000821483parr:RefiningMemberparr:GasolineMember2021-01-012021-06-300000821483parr:LogisticsMemberparr:GasolineMember2021-01-012021-06-300000821483parr:GasolineMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:RefiningMemberparr:DistillatesMember2021-01-012021-06-300000821483parr:LogisticsMemberparr:DistillatesMember2021-01-012021-06-300000821483parr:DistillatesMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:RefiningMemberparr:OtherRefinedProductsMember2021-01-012021-06-300000821483parr:LogisticsMemberparr:OtherRefinedProductsMember2021-01-012021-06-300000821483parr:OtherRefinedProductsMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:RefiningMemberparr:MerchandiseMember2021-01-012021-06-300000821483parr:LogisticsMemberparr:MerchandiseMember2021-01-012021-06-300000821483parr:MerchandiseMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:RefiningMemberparr:TransportationandTerminallingServicesMember2021-01-012021-06-300000821483parr:LogisticsMemberparr:TransportationandTerminallingServicesMember2021-01-012021-06-300000821483parr:TransportationandTerminallingServicesMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:RefiningMemberparr:OtherRevenuesMember2021-01-012021-06-300000821483parr:LogisticsMemberparr:OtherRevenuesMember2021-01-012021-06-300000821483parr:OtherRevenuesMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:RefiningMember2021-01-012021-06-300000821483parr:LogisticsMember2021-01-012021-06-300000821483parr:RetailSegmentMember2021-01-012021-06-300000821483parr:TitledInventoryMember2022-06-300000821483parr:SupplyandOfftakeAgreementsMember2022-06-300000821483parr:TitledInventoryMember2021-12-310000821483parr:SupplyandOfftakeAgreementsMember2021-12-310000821483parr:RenewableIdentificationNumbersRINsAndEnvironmentalCreditsMember2022-06-300000821483parr:RenewableIdentificationNumbersRINsAndEnvironmentalCreditsMember2021-12-310000821483parr:SupplyandOfftakeAgreementsMember2022-06-300000821483parr:SupplyandOfftakeAgreementsMember2021-12-310000821483parr:WashingtonRefineryIntermediationAgreementMember2022-06-300000821483parr:WashingtonRefineryIntermediationAgreementMember2021-12-310000821483parr:SupplyandOfftakeAgreementsMember2022-01-012022-06-300000821483parr:SupplyandOfftakeAgreementsMemberparr:DiscretionaryDrawFacilityMember2022-06-300000821483parr:SupplyandOfftakeAgreementsMemberparr:DiscretionaryDrawFacilityMember2021-12-310000821483parr:SupplyandOfftakeAgreementsMemberparr:DiscretionaryDrawFacilityMember2022-04-240000821483parr:SupplyandOfftakeAgreementsMemberparr:DiscretionaryDrawFacilityMember2022-04-250000821483parr:SupplyandOfftakeAgreementsMember2022-04-240000821483parr:SupplyandOfftakeAgreementsMember2022-04-250000821483parr:SupplyandOfftakeAgreementsMember2021-05-012022-05-220000821483parr:SupplyandOfftakeAgreementsMember2022-03-012022-03-310000821483parr:WashingtonRefineryIntermediationAgreementMember2022-05-080000821483parr:WashingtonRefineryIntermediationAgreementMember2022-05-090000821483us-gaap:LetterOfCreditMemberparr:WashingtonRefineryIntermediationAgreementMember2022-06-300000821483us-gaap:LetterOfCreditMemberparr:WashingtonRefineryIntermediationAgreementMember2021-12-310000821483parr:SupplyandOfftakeAgreementsMemberparr:InventoryIntermediationMember2022-04-012022-06-300000821483parr:SupplyandOfftakeAgreementsMemberparr:InventoryIntermediationMember2021-04-012021-06-300000821483parr:SupplyandOfftakeAgreementsMemberparr:InventoryIntermediationMember2022-01-012022-06-300000821483parr:SupplyandOfftakeAgreementsMemberparr:InventoryIntermediationMember2021-01-012021-06-300000821483parr:SupplyandOfftakeAgreementsMember2022-04-012022-06-300000821483parr:SupplyandOfftakeAgreementsMember2021-04-012021-06-300000821483parr:SupplyandOfftakeAgreementsMember2021-01-012021-06-300000821483parr:WashingtonRefineryIntermediationAgreementMemberparr:InventoryIntermediationMember2022-04-012022-06-300000821483parr:WashingtonRefineryIntermediationAgreementMemberparr:InventoryIntermediationMember2021-04-012021-06-300000821483parr:WashingtonRefineryIntermediationAgreementMemberparr:InventoryIntermediationMember2022-01-012022-06-300000821483parr:WashingtonRefineryIntermediationAgreementMemberparr:InventoryIntermediationMember2021-01-012021-06-300000821483parr:WashingtonRefineryIntermediationAgreementMember2022-04-012022-06-300000821483parr:WashingtonRefineryIntermediationAgreementMember2021-04-012021-06-300000821483parr:WashingtonRefineryIntermediationAgreementMember2022-01-012022-06-300000821483parr:WashingtonRefineryIntermediationAgreementMember2021-01-012021-06-300000821483us-gaap:RevolvingCreditFacilityMemberparr:ABLCreditFacilityMember2022-06-300000821483us-gaap:RevolvingCreditFacilityMemberparr:ABLCreditFacilityMember2021-12-310000821483parr:A7.75SeniorSecuredNotedue2025Memberus-gaap:SeniorNotesMember2022-06-300000821483parr:A7.75SeniorSecuredNotedue2025Memberus-gaap:SeniorNotesMember2021-12-310000821483parr:TermLoanMemberparr:TermLoanBFacilityMember2022-06-300000821483parr:TermLoanMemberparr:TermLoanBFacilityMember2021-12-310000821483parr:A12.875SeniorSecuredNoteDue2026Memberus-gaap:SeniorNotesMember2022-06-300000821483parr:A12.875SeniorSecuredNoteDue2026Memberus-gaap:SeniorNotesMember2021-12-310000821483parr:LettersOfCreditAndSuretyBondsMember2021-12-310000821483parr:LettersOfCreditAndSuretyBondsMember2022-06-300000821483us-gaap:RevolvingCreditFacilityMemberparr:ABLCreditFacilityMember2017-12-210000821483us-gaap:RevolvingCreditFacilityMemberparr:ABLLoanAgreementMember2022-02-020000821483parr:ABLLoanAgreementMemberus-gaap:BridgeLoanMember2022-02-020000821483us-gaap:LetterOfCreditMemberparr:ABLLoanAgreementMember2022-02-020000821483us-gaap:RevolvingCreditFacilityMemberparr:ABLLoanAgreementMember2022-03-300000821483us-gaap:RevolvingCreditFacilityMemberparr:ABLRevloverMember2022-06-300000821483parr:A7.75SeniorSecuredNotedue2025Memberus-gaap:SeniorNotesMember2022-05-242022-05-240000821483parr:A7.75SeniorSecuredNotedue2025Memberus-gaap:SeniorNotesMember2022-01-012022-06-300000821483parr:A12.875SeniorSecuredNoteDue2026Memberus-gaap:SeniorNotesMember2022-05-162022-05-160000821483parr:A12.875SeniorSecuredNoteDue2026Memberus-gaap:SeniorNotesMember2022-05-272022-05-270000821483parr:A12.875SeniorSecuredNoteDue2026Memberus-gaap:SeniorNotesMember2022-05-012022-05-310000821483parr:A12.875SeniorSecuredNoteDue2026Memberus-gaap:SeniorNotesMember2022-06-132022-06-1300008214832022-02-142022-02-140000821483us-gaap:FutureMember2022-01-012022-06-30utr:bbl0000821483us-gaap:SwapMember2022-01-012022-06-300000821483parr:OptionCollarsMemberparr:PeriodOneMember2022-01-012022-06-300000821483parr:OptionCollarFloorMember2022-06-30iso4217:USDutr:bbl0000821483parr:OptionCollarCeilingMember2022-06-3000008214832019-05-31parr:day0000821483us-gaap:CommodityContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-06-300000821483us-gaap:CommodityContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-12-310000821483parr:OtherAccruedLiabilitiesMemberus-gaap:CommodityContractMember2022-06-300000821483parr:OtherAccruedLiabilitiesMemberus-gaap:CommodityContractMember2021-12-310000821483us-gaap:CommodityOptionMemberus-gaap:OverTheCounterMemberparr:ObligationsunderInventoryFinancingAgreementsMember2022-06-300000821483us-gaap:CommodityOptionMemberus-gaap:OverTheCounterMemberparr:ObligationsunderInventoryFinancingAgreementsMember2021-12-310000821483us-gaap:OverTheCounterMemberparr:ObligationsunderInventoryFinancingAgreementsMemberparr:CommodityOption2Member2022-06-300000821483us-gaap:OverTheCounterMemberparr:ObligationsunderInventoryFinancingAgreementsMemberparr:CommodityOption2Member2021-12-310000821483us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-06-300000821483us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-12-310000821483us-gaap:OtherNoncurrentAssetsMember2021-12-310000821483us-gaap:OtherNoncurrentAssetsMember2022-06-300000821483us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2022-04-012022-06-300000821483us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2021-04-012021-06-300000821483us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2022-01-012022-06-300000821483us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2021-01-012021-06-300000821483us-gaap:CommodityOptionMemberus-gaap:CostOfSalesMember2022-04-012022-06-300000821483us-gaap:CommodityOptionMemberus-gaap:CostOfSalesMember2021-04-012021-06-300000821483us-gaap:CommodityOptionMemberus-gaap:CostOfSalesMember2022-01-012022-06-300000821483us-gaap:CommodityOptionMemberus-gaap:CostOfSalesMember2021-01-012021-06-300000821483us-gaap:CostOfSalesMemberparr:CommodityOption2Member2022-04-012022-06-300000821483us-gaap:CostOfSalesMemberparr:CommodityOption2Member2021-04-012021-06-300000821483us-gaap:CostOfSalesMemberparr:CommodityOption2Member2022-01-012022-06-300000821483us-gaap:CostOfSalesMemberparr:CommodityOption2Member2021-01-012021-06-300000821483us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2022-04-012022-06-300000821483us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2021-04-012021-06-300000821483us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2022-01-012022-06-300000821483us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2021-01-012021-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMemberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2022-06-300000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberparr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2022-06-300000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedMember2022-06-300000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2022-06-300000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMember2022-06-300000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMemberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityOptionMemberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberparr:CommodityOption2Memberus-gaap:ExchangeTradedMember2021-12-310000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberparr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2021-12-310000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedMember2021-12-310000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2021-12-310000821483parr:EnvironmentalCreditObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310000821483us-gaap:FairValueMeasurementsRecurringMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:ABLCreditFacilityMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberparr:ABLCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:A7.75SeniorSecuredNotedue2025Member2022-06-300000821483us-gaap:FairValueInputsLevel2Memberparr:A7.75SeniorSecuredNotedue2025Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:TermLoanBFacilityMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberparr:TermLoanBFacilityMember2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:A12.875SeniorSecuredNoteDue2026Member2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberparr:A12.875SeniorSecuredNoteDue2026Member2022-06-300000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:ABLCreditFacilityMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberparr:ABLCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:A7.75SeniorSecuredNotedue2025Member2021-12-310000821483us-gaap:FairValueInputsLevel2Memberparr:A7.75SeniorSecuredNotedue2025Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:TermLoanBFacilityMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberparr:TermLoanBFacilityMember2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberparr:A12.875SeniorSecuredNoteDue2026Member2021-12-310000821483us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberparr:A12.875SeniorSecuredNoteDue2026Member2021-12-31parr:option0000821483srt:MinimumMember2022-01-012022-06-300000821483srt:MaximumMember2022-01-012022-06-30parr:retail_site00008214832021-02-280000821483parr:LeaseAgreementMember2021-01-012021-06-300000821483parr:WashingtonDepartmentOfRevenueMemberparr:StateTaxAuthorityMember2022-01-012022-06-300000821483parr:WyomingRefineryMember2022-06-300000821483parr:WyomingRefineryMember2022-01-012022-06-300000821483parr:WasteWaterTreatmentSystemMemberparr:WyomingRefineryMember2022-06-300000821483us-gaap:IndemnificationGuaranteeMemberparr:TesoroCorporationMember2022-06-30parr:claim0000821483us-gaap:CommonStockMember2021-11-100000821483us-gaap:RestrictedStockMember2022-04-012022-06-300000821483us-gaap:RestrictedStockMember2021-04-012021-06-300000821483us-gaap:RestrictedStockMember2022-01-012022-06-300000821483us-gaap:RestrictedStockMember2021-01-012021-06-300000821483us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300000821483us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300000821483us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300000821483us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300000821483us-gaap:EmployeeStockOptionMember2022-04-012022-06-300000821483us-gaap:EmployeeStockOptionMember2021-04-012021-06-300000821483us-gaap:EmployeeStockOptionMember2022-01-012022-06-300000821483us-gaap:EmployeeStockOptionMember2021-01-012021-06-300000821483us-gaap:RestrictedStockMember2022-06-300000821483us-gaap:EmployeeStockOptionMember2022-06-300000821483parr:PerformanceRestrictedStockUnitsMember2022-01-012022-06-300000821483parr:PerformanceRestrictedStockUnitsMember2022-04-012022-06-300000821483parr:PerformanceRestrictedStockUnitsMember2022-06-300000821483us-gaap:RestrictedStockMember2022-04-012022-06-300000821483us-gaap:RestrictedStockMember2021-04-012021-06-300000821483us-gaap:RestrictedStockMember2022-01-012022-06-300000821483us-gaap:RestrictedStockMember2021-01-012021-06-300000821483us-gaap:EmployeeStockOptionMember2022-04-012022-06-300000821483us-gaap:EmployeeStockOptionMember2021-04-012021-06-300000821483us-gaap:EmployeeStockOptionMember2022-01-012022-06-300000821483us-gaap:EmployeeStockOptionMember2021-01-012021-06-300000821483parr:A5ConvertibleSeniorNotesdue2021Memberus-gaap:SeniorNotesMember2022-06-300000821483us-gaap:ConvertibleDebtSecuritiesMember2022-04-012022-06-300000821483us-gaap:ConvertibleDebtSecuritiesMember2021-04-012021-06-300000821483us-gaap:ConvertibleDebtSecuritiesMember2022-01-012022-06-300000821483us-gaap:ConvertibleDebtSecuritiesMember2021-01-012021-06-300000821483us-gaap:ConvertibleDebtMemberparr:A5ConvertibleSeniorNotesdue2021Member2022-06-300000821483parr:RefiningMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300000821483parr:LogisticsMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300000821483us-gaap:OperatingSegmentsMemberparr:RetailSegmentMember2022-04-012022-06-300000821483parr:CorporateReconcilingItemsAndEliminationsMember2022-04-012022-06-300000821483parr:RefiningMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300000821483parr:LogisticsMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300000821483us-gaap:OperatingSegmentsMemberparr:RetailSegmentMember2021-04-012021-06-300000821483parr:CorporateReconcilingItemsAndEliminationsMember2021-04-012021-06-300000821483parr:RefiningMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300000821483parr:LogisticsMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300000821483us-gaap:OperatingSegmentsMemberparr:RetailSegmentMember2022-01-012022-06-300000821483parr:CorporateReconcilingItemsAndEliminationsMember2022-01-012022-06-300000821483parr:RefiningMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300000821483parr:LogisticsMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300000821483us-gaap:OperatingSegmentsMemberparr:RetailSegmentMember2021-01-012021-06-300000821483parr:CorporateReconcilingItemsAndEliminationsMember2021-01-012021-06-300000821483parr:EquityGroupInvestmentsMember2022-06-300000821483us-gaap:InvestorMember2022-01-012022-06-300000821483us-gaap:InvestorMemberparr:EquityGroupInvestmentsMember2022-01-012022-06-300000821483us-gaap:InvestorMemberparr:EquityGroupInvestmentsMember2021-01-012021-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________________________________________________________________________________________________________
FORM 10-Q
________________________________________________________________________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from to

Commission File No. 001-36550
________________________________________________________________________________________________________________________
PAR PACIFIC HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
________________________________________________________________________________________________________________________
Delaware84-1060803
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
825 Town & Country Lane, Suite 1500 
Houston,Texas77024
(Address of principal executive offices)(Zip Code)
(281899-4800 
(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, $0.01 par valuePARRNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes      No  

60,178,748 shares of Common Stock, $0.01 par value, were outstanding as of August 3, 2022.




PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
TABLE OF CONTENTS



PART I FINANCIAL INFORMATION
Page No.
Item 1.
Item 2.
Item 3.
Item 4.
PART II OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
The terms “Par,” “Company,” “we,” “our,” and “us” refer to Par Pacific Holdings, Inc. and its consolidated subsidiaries unless the context suggests otherwise.



PART I - FINANCIAL INFORMATION 
Item 1. FINANCIAL STATEMENTS
PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share data)
 June 30, 2022December 31, 2021
ASSETS  
Current assets 
Cash and cash equivalents$186,178 $112,221 
Restricted cash4,000 4,000 
Total cash, cash equivalents, and restricted cash190,178 116,221 
Trade accounts receivable, net of allowances of $0.3 million and $0.4 million at June 30, 2022 and December 31, 2021, respectively
370,773 195,108 
Inventories1,160,166 790,317 
Prepaid and other current assets130,238 28,525 
Total current assets1,851,355 1,130,171 
Property, plant, and equipment 
Property, plant, and equipment1,196,747 1,180,397 
Less accumulated depreciation and amortization(356,885)(323,892)
Property, plant, and equipment, net839,862 856,505 
Long-term assets 
Operating lease right-of-use assets333,057 383,824 
Intangible assets, net14,905 16,234 
Goodwill127,262 127,262 
Other long-term assets78,899 56,255 
Total assets$3,245,340 $2,570,251 
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities 
Current maturities of long-term debt$10,874 $10,841 
Obligations under inventory financing agreements1,189,448 737,704 
Accounts payable250,689 154,543 
Accrued taxes37,195 28,641 
Operating lease liabilities51,678 53,640 
Other accrued liabilities570,051 370,424 
Total current liabilities2,109,935 1,355,793 
Long-term liabilities 
Long-term debt, net of current maturities508,997 553,717 
Finance lease liabilities7,214 7,691 
Operating lease liabilities287,648 335,094 
Other liabilities52,817 52,256 
Total liabilities2,966,611 2,304,551 
Commitments and contingencies (Note 13)
Stockholders’ equity
Preferred stock, $0.01 par value: 3,000,000 shares authorized, none issued
  
Common stock, $0.01 par value; 500,000,000 shares authorized at June 30, 2022 and December 31, 2021, 60,219,925 shares and 60,161,955 shares issued at June 30, 2022 and December 31, 2021, respectively
602 602 
Additional paid-in capital827,623 821,713 
Accumulated deficit(551,998)(559,117)
Accumulated other comprehensive income2,502 2,502 
Total stockholders’ equity278,729 265,700 
Total liabilities and stockholders’ equity$3,245,340 $2,570,251 
 

See accompanying notes to the condensed consolidated financial statements.
1


PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Revenues$2,106,332 $1,217,525 $3,456,625 $2,106,205 
Operating expenses  
Cost of revenues (excluding depreciation)1,808,925 1,197,298 3,159,174 2,086,161 
Operating expense (excluding depreciation)82,342 68,821 163,746 143,009 
Depreciation and amortization25,583 23,548 49,363 46,428 
Loss (gain) on sale of assets, net15 510 15 (64,402)
General and administrative expense (excluding depreciation)15,438 12,201 31,331 24,086 
Acquisition and integration costs (352)63 86 
Total operating expenses1,932,303 1,302,026 3,403,692 2,235,368 
Operating income (loss)174,029 (84,501)52,933 (129,163)
Other income (expense) 
Interest expense and financing costs, net(18,154)(17,186)(34,548)(35,337)
Debt extinguishment and commitment costs(5,672)(6,628)(5,672)(8,135)
Gain on curtailment of pension obligation   2,032 
Other income (loss), net47 (36)49 25 
Total other expense, net(23,779)(23,850)(40,171)(41,415)
Income (loss) before income taxes150,250 (108,351)12,762 (170,578)
Income tax expense(1,125)(607)(688)(607)
Net income (loss)$149,125 $(108,958)$12,074 $(171,185)
Income (loss) per share
Basic$2.51 $(1.84)$0.20 $(3.01)
Diluted$2.50 $(1.84)$0.20 $(3.01)
Weighted-average number of shares outstanding  
Basic59,479 59,367 59,449 56,837 
Diluted59,642 59,367 59,644 56,837 
 

See accompanying notes to the condensed consolidated financial statements.
2


PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands)
Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Net income (loss)$149,125 $(108,958)$12,074 $(171,185)
Other comprehensive income (loss):
Other post-retirement benefits income, net of tax   3,996 
Total other comprehensive income, net of tax   3,996 
Comprehensive income (loss)$149,125 $(108,958)$12,074 $(167,189)

See accompanying notes to the condensed consolidated financial statements.

3






PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended June 30,
 20222021
Cash flows from operating activities:  
Net Income (Loss)$12,074 $(171,185)
Adjustments to reconcile net income (loss) to cash provided by operating activities:  
Depreciation and amortization49,363 46,428 
Debt extinguishment and commitment costs5,672 8,135 
Non-cash interest expense2,106 3,638 
Non-cash lower of cost and net realizable value adjustment(463)(10,595)
Deferred taxes615  
Loss (gain) on sale of assets, net15 (64,402)
Stock-based compensation5,769 4,072 
Unrealized gain on derivative contracts(13,155)(5,517)
Net changes in operating assets and liabilities: 
Trade accounts receivable(174,818)(99,462)
Prepaid and other assets(68,580)5,482 
Inventories (369,846)(184,107)
Deferred turnaround expenditures(29,688)(5,731)
Obligations under inventory financing agreements309,396 199,644 
Accounts payable, other accrued liabilities, and operating lease ROU assets and liabilities299,197 275,415 
Net cash provided by operating activities27,657 1,815 
Cash flows from investing activities: 
Capital expenditures(29,020)(14,007)
Proceeds from sale of assets68 102,854 
Net cash provided by (used in) investing activities(28,952)88,847 
Cash flows from financing activities: 
Proceeds from sale of common stock, net of offering costs 87,193 
Proceeds from borrowings256,163 56,409 
Repayments of borrowings(313,143)(197,669)
Net borrowings on deferred payment arrangements, discretionary draw facilities, and receivable advances142,348 76,032 
Purchase of common stock for retirement(6,483)(1,323)
Payments for debt extinguishment and commitment costs(3,983)(5,618)
Other financing activities, net350 334 
Net cash provided by financing activities75,252 15,358 
Net increase in cash, cash equivalents, and restricted cash73,957 106,020 
Cash, cash equivalents, and restricted cash at beginning of period116,221 70,309 
Cash, cash equivalents, and restricted cash at end of period$190,178 $176,329 
Supplemental cash flow information:  
Net cash received (paid) for:
Interest$(30,735)$(37,601)
Taxes(13)54 
Non-cash investing and financing activities:  
Accrued capital expenditures$3,818 $2,129 
ROU assets obtained in exchange for new finance lease liabilities594 1,102 
ROU assets obtained in exchange for new operating lease liabilities13,692 87,331 
ROU assets terminated in exchange for release from operating lease liabilities32,902 113 

See accompanying notes to the condensed consolidated financial statements.
4






PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
(in thousands)
Accumulated
AdditionalOther
Common StockPaid-InAccumulatedComprehensiveTotal
SharesAmountCapitalDeficitIncomeEquity
Balance, December 31, 202054,003 $540 $726,504 $(477,028)$(3,742)$246,274 
Common stock offering, net of issuance costs5,750 58 87,343 — — 87,401 
Stock-based compensation461 3 1,883 — — 1,886 
Purchase of common stock for retirement(76)— (1,321)— — (1,321)
Exercise of stock options4 — 58 — — 58 
Other comprehensive income— — — — 3,996 3,996 
Net loss— — — (62,227)— (62,227)
Balance, March 31, 202160,142 601 814,467 (539,255)254 276,067 
Common stock offering, net of issuance costs— — (208)— — (208)
Issuance of common stock for employee stock purchase plan42 1 713 — — 714 
Stock-based compensation1 — 2,079 — — 2,079 
Purchase of common stock for retirement— — (2)— — (2)
Net loss— — — (108,958)— (108,958)
Balance, June 30, 202160,185 $602 $817,049 $(648,213)$254 $169,692 

Accumulated
AdditionalOther
Common StockPaid-InAccumulatedComprehensiveTotal
SharesAmountCapitalDeficitIncomeEquity
Balance, December 31, 202160,162 $602 $821,713 $(559,117)$2,502 $265,700 
Stock-based compensation412 3 3,655 — — 3,658 
Purchase of common stock for retirement(462)(4)(1,431)(4,955)— (6,390)
Net loss— — — (137,051)— (137,051)
Balance, March 31, 202260,112 601 823,937 (701,123)2,502 125,917 
Issuance of common stock for employee stock purchase plan41 — 632 — — 632 
Purchase of common stock for retirement(1)— (94)— — (94)
Stock-based compensation3 — 2,017 — — 2,017 
Exercise of stock options65 1 1,131 — — 1,132 
Net income— — — 149,125 — 149,125 
Balance, June 30, 202260,220 $602 $827,623 $(551,998)$2,502 $278,729 

See accompanying notes to the condensed consolidated financial statements.
5

PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
For the Interim Periods Ended June 30, 2022 and 2021



Note 1Overview
    Par Pacific Holdings, Inc. and its wholly owned subsidiaries (“Par” or the “Company”) own and operate market-leading energy and infrastructure businesses. Our strategy is to acquire and develop businesses in logistically complex, niche markets. Currently, we operate in three primary business segments:
1) Refining - We own and operate three refineries in Hawaii, Wyoming, and Washington.
2) Retail - Our retail outlets in Hawaii, Washington, and Idaho sell gasoline, diesel, and retail merchandise through Hele and “76” branded sites, “nomnom” branded company-operated convenience stores, 7-Eleven operated convenience stores, other sites operated by third parties, and unattended cardlock stations.
3) Logistics - We operate an extensive multi-modal logistics network spanning the Pacific, the Northwest, and the Rocky Mountain regions to transport and store our crude oil and refined products for our refineries and transport refined products to our retail sites or third-party purchasers.
    As of June 30, 2022, we owned a 46.0% equity investment in Laramie Energy, LLC (“Laramie Energy”). Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco counties, Colorado.

    Our Corporate and Other reportable segment primarily includes general and administrative costs.
Note 2—Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation
    The condensed consolidated financial statements include the accounts of Par and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts previously reported in our condensed consolidated financial statements for prior periods have been reclassified to conform with the current presentation.
    The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. The condensed consolidated financial statements contained in this report include all material adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the complete fiscal year or for any other period. The condensed consolidated balance sheet as of December 31, 2021 was derived from our audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.
Use of Estimates
    The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosures. Actual amounts could differ from these estimates.
    The continued worldwide spread and severity of the COVID-19 coronavirus, along with a number of recent global events including the conflict between Russia and Ukraine and certain developments in the global crude oil markets, have impacted our businesses, people, and operations. We are continuing to actively respond to these ongoing matters and many uncertainties remain. Due to the rapid development and fluidity of these ongoing matters, the full magnitude of these events’ impacts on our estimates and assumptions, financial condition, future results of operations, and future cash flows and liquidity is uncertain and has been and may continue to be material.
Allowance for Credit Losses
    We are exposed to credit losses primarily through our sales of refined products. Credit limits and/or prepayment requirements are set based on such factors as the customer’s financial results, credit rating, payment history, and industry, and are reviewed annually for customers with material credit limits. Credit allowances are reviewed at least quarterly based on changes in the customer’s creditworthiness due to economic conditions, liquidity, and business strategy as publicly reported and
6

PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
For the Interim Periods Ended June 30, 2022 and 2021


through discussions between the customer and the Company. We establish provisions for losses on trade receivables based on the estimated credit loss we expect to incur over the life of the receivable. We did not have a material change in our allowances on trade receivables during the three and six months ended June 30, 2022 or 2021.
Cost Classifications
    Cost of revenues (excluding depreciation) includes the hydrocarbon-related costs of inventory sold, transportation costs of delivering product to customers, crude oil consumed in the refining process, costs to satisfy our Renewable Identification Numbers (“RINs”) obligations, and certain hydrocarbon fees and taxes. Cost of revenues (excluding depreciation) also includes the unrealized gains (losses) on derivatives and inventory valuation adjustments. Certain direct operating expenses related to our logistics segment are also included in Cost of revenues (excluding depreciation).
    Operating expense (excluding depreciation) includes direct costs of labor, maintenance and services, energy and utility costs, property taxes, and environmental compliance costs, as well as chemicals and catalysts and other direct operating expenses.
The following table summarizes depreciation and finance lease amortization expense excluded from each line item in our condensed consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Cost of revenues$5,175 $5,341 $10,227 $10,560 
Operating expense13,183 13,080 26,080 25,882 
General and administrative expense771 715 1,419 1,595 
Recent Accounting Pronouncements
    There have been no developments to recent accounting pronouncements, including the expected dates of adoption and estimated effects on our financial condition, results of operations, and cash flows, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.
Note 3—Investment in Laramie Energy, LLC
    As of June 30, 2022, we had a 46.0% ownership interest in Laramie Energy. Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco counties, Colorado. The balance of our investment in Laramie Energy was zero as of June 30, 2022 and December 31, 2021.
Laramie Energy has a term loan agreement which provides a term loan secured by a lien on its natural gas and crude oil properties and related assets. As of June 30, 2022, the term loan had an outstanding balance of $91.8 million. Under the terms of the term loan, Laramie Energy is generally prohibited from making future cash distributions to its owners, including us, except for certain permitted tax distributions. Laramie Energy’s term loan matures on July 1, 2025.
    Summarized financial information for Laramie Energy is as follows (in thousands):
June 30, 2022December 31, 2021
Current assets$52,908 $68,779 
Non-current assets326,050 328,571 
Current liabilities60,983 107,976 
Non-current liabilities238,635 177,503 
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Natural gas and oil revenues$57,885 $37,616 $108,734 $119,964 
Income from operations29,954 5,941 54,068 53,150 
Net income (loss)383 133 (32,517)40,584 
7

PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
For the Interim Periods Ended June 30, 2022 and 2021


Laramie Energy’s net income (loss) includes (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Depreciation, depletion, and amortization$5,555 $8,772 $11,264 $15,756 
Unrealized loss on derivative instruments10,734 731 53,389 182 
Note 4—Revenue Recognition
    As of June 30, 2022 and December 31, 2021, receivables from contracts with customers were $356.1 million and $189.9 million, respectively. Our refining segment recognizes deferred revenues when cash payments are received in advance of delivery of products to the customer. Deferred revenue was $30.3 million and $10.1 million as of June 30, 2022 and December 31, 2021, respectively. We have elected to apply a practical expedient not to disclose the value of unsatisfied performance obligations for (i) contracts with an original expected duration of less than one year and (ii) contracts where the variable consideration has been allocated entirely to our unsatisfied performance obligation.
    The following table provides information about disaggregated revenue by major product line and includes a reconciliation of the disaggregated revenues to total segment revenues (in thousands):
Three Months Ended June 30, 2022RefiningLogisticsRetail
Product or service:
Gasoline$614,942 $ $112,231 
Distillates (1)896,601  11,224 
Other refined products (2)526,854   
Merchandise  22,907 
Transportation and terminalling services 50,633  
Other revenue6,058  849 
Total segment revenues (3)$2,044,455 $50,633 $147,211 
Three Months Ended June 30, 2021RefiningLogisticsRetail
Product or service:
Gasoline$393,283 $ $86,182 
Distillates (1)491,626  6,942 
Other refined products (2)270,757   
Merchandise  24,146 
Transportation and terminalling services 48,706  
Other revenue181  1,176 
Total segment revenues (3)$1,155,847 $48,706 $118,446 
Six Months Ended June 30, 2022RefiningLogisticsRetail
Product or service:
Gasoline$1,016,051 $ $202,006 
Distillates (1)1,484,684  19,734 
Other refined products (2)830,461   
Merchandise  43,722 
Transportation and terminalling services 93,094  
Other revenue12,482  1,658 
Total segment revenues (3)$3,343,678 $93,094 $267,120 
8

PAR PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
For the Interim Periods Ended June 30, 2022 and 2021


Six Months Ended June 30, 2021RefiningLogisticsRetail
Product or service:
Gasoline$670,862 $ $150,004 
Distillates (1)842,425  12,010 
Other refined products (2)480,537   
Merchandise  45,432 
Transportation and terminalling services 90,015  
Other revenue778  2,188 
Total segment revenues (3)$1,994,602 $90,015 $209,634 
_______________________________________________________
(1)Distillates primarily include diesel and jet fuel.
(2)Other refined products include fuel oil, gas oil, asphalt, and naphtha.
(3)Refer to Note 17—Segment Information for the reconciliation of segment revenues to total consolidated revenues.
Note 5—Inventories
    Inventories at June 30, 2022 and December 31, 2021 consisted of the following (in thousands):
Titled InventorySupply and Offtake Agreement (1)Total
June 30, 2022
Crude oil and feedstocks$237,399 $236,813 $474,212 
Refined products and blendstock206,927 269,549 476,476 
Warehouse stock and other (2)209,478  209,478 
Total$653,804