Par Pacific J.P. Morgan Natural Resources Conference Takeaways

Research evidence excerpt

Par Pacific J.P. Morgan Natural Resources Conference Takeaways

be shut down again alongside the Hawaii refinery

turnaround, with a true ramp not visible until 4Q. On feedstock, the company can source

a range of inputs (from greases and vegetable oils to tallow), focused mostly on

international markets including Latin America, Southeast Asia, and Canada, and can

distribute renewable diesel through existing infrastructure in Washington, with a

Mitsubishi product terminal in Long Beach supporting any eventual move toward SAF.

• Retail normalization and growth. Same-store fuel and in-store sales declined 3.3% and

1%, respectively, year-over-year in 1Q26, with retail adjusted EBITDA falling to $15mm

from $22mm in 4Q on lower fuel margins tied to rapid wholesale price increases.

Management expects margins to compress in June with normalization once volatility

subsides. In a rapidly rising price environment, transactions rose while fuel volume per

transaction fell. From a growth standpoint, the company sees a good base of operations

and will likely look to add one to two sites, having recently brought on a new site in Idaho

in the Pacific Northwest where it is seeing positive trends and a 1-2 year runway to build

out the pipeline.

• Logistics and the integrated growth strategy. Logistics adjusted EBITDA was $32mm

in 1Q26, in line with the mid-cycle run-rate, with strong Hawaii and Montana utilization

partially offset by reduced Washington crude activity during the planned turnaround.

CEO Monteleone framed the logistics growth strategy as intrinsically tied to refining: as

the refining business grows, the logistics business grows alongside it, with a focus on

overall throughput, utilization, and opportunity cost. Notably, management expressed a