Par Pacific Holdings Inc (NYSE:PARR) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 10:00 am ET
basis is that -- should that be kind of neutral cash flow?
It should be neutral. If you recall back in Q1 we had the inverse of this occur where you saw a wor--
Yes I saw that on the balance sheet. That was what I figured was going to happen but I was just confirming.
Yes so again you've had -- again we've on-boarded both the Par West facility an increased our inventory and sale profile in the state of Hawaii pretty substantially this year. This does require additional working capital. We've principally funded that through our intermediation arrangements and then simultaneously brought on board the Washington inventory and receivables positions. So I think over time you can expect to see that neutral. It's going to flex quarter-to-quarter based on our inventory and sales profile. But again that's one of the benefits of those facilities is it helps smooth that out in aggregate.
Yes and you guys mentioned de-levering going forward. How are you thinking about the convert versus I guess you have a couple the retail property term loan or the term loan B; or how do you prioritize your debt pay-down?
Again I think we'd like to see kind of our net debt to cap let's say excluding the Laramie impairment down to that 30% to 35% level. Again without getting into the tactics of what we'd focus on I think our liquidity position we're projecting that to increase and again I think should have the opportunity to again elect to reduce debt on one of our instruments that we have out there. And again I think there's a number of considerations we think about on sort of the tactics of that.
Great, thanks, guys
Since there are no further questions left in the queue I would like to turn the floor back over to management for any closing remarks. Please proceed with your question.
William C. Pate
Thank you. Thanks for joining us this morning. We look forward to a strong end of year as distillate cracks have continued to improve and the West Coast markets have exhibited uncharacteristic strength today. Have a good day.
[Operator Closing Remarks]