HOUSTON - Par Pacific Holdings, Inc. (NYSE: NYSE:PARR) announced a robust finish to the year with their fourth quarter earnings significantly exceeding analyst expectations. The energy company reported an adjusted EPS of $4.77, which was a substantial $3.71 higher than the analyst estimate of $1.06.
Revenue for the quarter was also strong, coming in at $2.18 billion, surpassing the consensus estimate of $2.12 billion.
The fourth quarter results showcased a remarkable year-over-year growth, with net income soaring to $289.3 million, or $4.77 per diluted share, compared to $84.7 million, or $1.40 per diluted share, for the same period in the previous year.
Adjusted Net Income for the quarter was reported at $65.2 million, a decrease from the $132.8 million in the fourth quarter of the prior year. Adjusted EBITDA for the quarter stood at $122.0 million, down from $174.9 million in the previous year's fourth quarter.
Despite the strong earnings report, Par Pacific's stock experienced a slight decline of 1.75% following the announcement, indicating a cautiously optimistic response from the market. This movement suggests that investors may be taking a measured approach to the company's performance, possibly due to the decrease in Adjusted Net Income and Adjusted EBITDA compared to the previous year's fourth quarter.
William Pate, Chief Executive Officer, commented on the year's performance, "2023 was an exceptionally positive year for our company. We generated record financial results, successfully closed and integrated the highly accretive Billings acquisition, and launched a renewables business line." He attributed the record earnings to excellent operational reliability and commercial execution in a strong market environment, which allowed for an improved balance sheet and the repurchase of $62 million of common stock throughout the year.
The company's Refining segment reported operating income of $676.2 million for the year ended December 31, 2023, compared to $401.9 million for the previous year. The Adjusted Gross Margin for the Refining segment was $995.0 million for the year, up from $812.8 million in the prior year.
Par Pacific's results reflect a deferred income tax benefit of $126.2 million for the full year, primarily related to the release of valuation allowances on deferred tax assets. This tax benefit is a result of achieving sustained profitability, with management concluding that the company is more likely than not to realize all federal deferred tax assets in the future.
The company's diverse portfolio, including its refining segment and renewable business line, positions it well for continued growth and adaptation to the evolving energy landscape.
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