Par Pacific Holdings Inc (NYSE:PARR) Q3 2019 Earnings Conference Call Transcript
Nov 05, 2019 • 10:00 am ET
Greetings and welcome to the Par Pacific Holdings Third Quarter Earnings Conference Call. [Operator Instructions]
It is now my pleasure to introduce your host Suneel Mandava Senior Vice President of Finance for Par Pacific Holdings. Thank you Mr. Mandava. You may begin.
Thank you operator. Welcome to Par Pacific's third quarter earnings conference call. Joining me today are William Pate President and Chief Executive Officer; Will Monteleone Chief Financial Officer; and Joseph Israel President and Chief Executive Officer of Par Petroleum.
Before we begin note that our comments today may include forward-looking statements. Any forward-looking statements are subject to change and are not guarantees of future performance or events. They are subject to risks and uncertainties and actual results may differ materially from these forward-looking statements. Accordingly investors should not place undue reliance on forward-looking statements and we disclaim any obligation to update or revise them. I refer you to our investor presentation on our website and to our filings with the SEC for non-GAAP reconciliation and additional information.
I'll now turn the call over to our President and Chief Executive Officer Bill Pate.
William C. Pate
Thanks Suneel. I know we have a couple of calls in the industry today so I want to thank our conference call participants for joining us this morning. I'm pleased to report adjusted EBITDA of $49.7 million and adjusted earnings per share of $0.13 in the third quarter. We also generated $51.7 million of free cash flow in the quarter to further improve our financial profile. These results reflect record contributions from several of our businesses that helped to offset the previously announced operational downtime at our Hawaii refinery. Performance demonstrates the strength and balance in our system right by our mainland we're finding exposure, as well as the diversification of our earnings stream with consistently strong retail and logistics profitability.
The $22 million increase in consolidated EBITDA from the third quarter of last year highlights the growth in all of our business segments with record quarters in our retail segment as well as our Wyoming and Washington refineries. Overall the refining segment benefited from a strong mainland product market combined with advantaged crude sourcing at both of our mainland refineries. On the other hand our Hawaii refineries continued to face the challenge of a tight waterborne crude market driven by numerous macro issues during the quarter. We continue to have a positive outlook on our position in Hawaii as the long-term benefits of our acquisition and larger footprint only increase with time.
Our growth projects also advanced during the quarter. In Hawaii our diesel hydrotreater is running in line with our expectation increasing our clean distillate production. Our next-gen renewable fuels logistics project in Washington also made substantial progress. The completion of this project early next year, along with our expanded marine capabilities, will allow us to further increase the synergistic commercial activities between Washington and Hawaii.
Our integration of recent acquisitions continues to move forward with the final systems integration for Tacoma planned during the