파 퍼시픽(PARR) 2026년 3분기 실적 콘퍼런스콜: 조정 EBITDA 6억 4,600만 달러 및 순현금 마일스톤

핵심 요약

• 파 파시픽(PARR)은 2026년 3분기 조정 EBITDA 6억 4,600만 달러, 조정 순이익 5억 3,100만 달러(주당 10.70달러)를 기록했다고 발표했다.
• 이번 실적에는 조정 EBITDA 혜택 2억 2,200만 달러와 조정 순이익 혜택 1억 8,700만 달러가 2025년 소형 정유사 의무 면제(SRE)로부터 반영됐다.
• 통합 정제 지수는 분기 기준 사상 최고치인 배럴당 38.45달러에 달해 2025년 평균인 배럴당 12.40달러의 약 3배를 기록했다. 전사 마진 캡처율은 86%였으며, 하와이 가격 반영 시차와 정기보수 영향을 조정한 정상화 기준으로는 약 98%였다.
• 파 파시픽은 24억 달러의 유동성(현금 7억 3,100만 달러 포함)으로 해당 분기를 마감했으며, 창사 이래 처음으로 순현금 상태에 도달했다.
• 하와이 리뉴어블스는 500만 달러의 조정 EBITDA를 창출하며 첫 분기 흑자를 기록했다. 9월 처리량은 하루 약 3,700배럴에 달했다.
• 경영진은 4분기 전사 정제 처리량이 평균 하루 약 20만 배럴(지역별 가이던스 범위 중간값 기준)에 달할 것으로 예상하고 있다.

주요 재무 데이터

사업 및 운영 실적

전사 정제 처리량은 하루 17만 4,000배럴이었다. 하와이는 정기보수 중 추가 발견된 작업이 연장되면서 하루 5만 7,000배럴을 처리하는 데 그쳤고, 워싱턴과 와이오밍은 각각 하루 4만 배럴과 1만 9,000배럴을 처리했다.

몬태나는 분기 사상 최대인 하루 5만 8,400배럴의 처리량을 달성했다. 생산 비용은 배럴당 10.41달러였으며, 코커 유지보수 비용 600만 달러를 제외하면 배럴당 9.29달러였다. 경영진은 빌링스 정유공장 처리량이 인수 전 하루 약 5만 배럴에서 올해 누적 기준 5만 6,000배럴로 증가한 반면, 생산 비용은 배럴당 12달러 이상에서 10달러 미만으로 하락했다고 밝혔다.

하와이 마진 캡처율은 5,200만 달러(배럴당 10달러)의 가격 시차 역풍과 정기보수 관련 영향을 포함해 54%를 기록했다. 정상화 기준 캡처율은 97%였다. 로키산맥 지역 캡처율은 몬태나의 계절적 수요와 와이오밍의 900만 달러 선입선출(FIFO) 이익에 힘입어 109%에 달했다. 워싱턴 캡처율은 89%였다.

하와이 리뉴어블스는 이번 분기 동안 하루 평균 7만 8,000갤런을 기록했으며 카놀라유, 폐식용유(yellow grease), 우지(tallow) 원료를 처리했다. 경영진은 신뢰도 향상과 전처리 및 수소화처리 설비 최적화에 주력하고 있다.

소매 동일 매장 연료 판매량은 전년 동기 대비 2.1% 증가했고, 매장 내 매출은 1.9% 늘었다. 식품 매출은 11% 증가해 전체 매장 내 매출의 10% 이상을 차지했다.

파 파시픽은 해당 분기 동안 2억 4,300만 달러의 ABL(자산담보대출) 차입금을 상환하고 1,000만 달러 상당의 보통주를 자사주 매입했다. 또한 2025년 소형 정유사 면제에 따른 약 2억 달러 규모의 초과 RIN을 매각했으며, 현금 유입액의 약 절반은 3분기에 정산됐고 나머지는 4분기에 정산될 예정이다.

경영진 가이던스

통합 정제 지수는 10월 평균 배럴당 41.34달러로 3분기 평균보다 약 3달러 높았다. 경영진은 청정 제품 운임 전가율 상승과 미 서안-싱가포르 간 중간유분 스프레드 확대가 하와이 마진 캡처율을 지지하고 있다고 밝혔다.

회사는 하와이 원유 중개 금융 계약을 종료하고 약 1억 5,000만 달러의 현금을 사용해 관련 재고를 재매입할 계획이다. 경영진은 이번 조치로 연간 운전자본 조달 비용이 약 1,400만 달러 절감될 것으로 추산하고 있다.

라라미 에너지(Laramie Energy) 매각은 통상적인 조건 충족을 전제로 4분기 내 종결을 목표로 하고 있다. 파 파시픽은 매각 종결 시 약 1억 2,000만 달러의 현금 대금과 함께 향후 5년에 걸쳐 추가적인 고정 대가 및 천연가스 가격 연동 대가를 받을 것으로 예상하고 있다.

위험 요인 및 주시 분야

• 하와이는 해상 원유 도입 비용, 더티 탱커 운임, 원유 구매와 제품 가격 조정 간 시차에 여전히 노출돼 있다. 경영진은 운임 전가 조항과 미 서안 가격 연동에 따른 상쇄 효과를 언급했다.
• 하와이의 보고된 마진 캡처율은 계약상 가격 반영 시차와 정기보수 영향으로 축소됐으며, 이는 분기별 실적 변동성이 나타날 수 있음을 보여준다.
• 중국의 석유제품 수출은 수출 쿼터의 시기와 규모에 따라 변동될 수 있으나, 경영진은 중국 정책에 대한 거시적 시각은 변함이 없다고 밝혔다.
• 3분기 유입에도 불구하고 연간 누적 운전자본은 여전히 1억 1,000만 달러 이상의 유출을 기록했다. 경영진은 원자재 가격이 하락하면 이 같은 부담이 완화될 것으로 예상하고 있다.
• 파 파시픽은 2026년에 남은 연방 이월결손금을 전액 소진하고, 이후부터는 통상적인 연방 현금 납세 기업이 될 것으로 예상하고 있다.
• 경영진은 정제 마진 강세로 인해 M&A 가치평가에서 매수자와 매도자가 합의에 도달하기가 더 어려워질 수 있다고 언급했다.

애널리스트 질의응답(Q&A) 주요 내용

경영진은 하와이의 원유 도입 비용이 FOB 원유 가격차, 운임 및 시장 구조에 따라 결정된다고 설명했다. 미 서안 도착 기준 ANS 디퍼렌셜은 지난 2~3개월 동안 배럴당 10~15달러 확대된 반면, 청정 제품 운임 전가율은 배럴당 6~8달러 상승했다. 또한 로스앤젤레스-싱가포르 간 중간유분 스프레드 역시 3분기 약 5달러에서 평균 배럴당 30~40달러로 확대돼 잠재적인 상쇄 요인을 제공했다.

성장 투자와 관련해 경영진은 하와이의 경질원유 처리 능력을 높이는 프로젝트를 제시했다. 몬태나에서는 1,000만 달러 미만의 프로젝트를 통해 디젤 또는 항공유 생산량을 하루 최대 1,000배럴 늘릴 수 있으며, 알킬레이션 설비 공사를 통해 생산 능력을 10~20% 확대할 수 있다고 밝혔다.

하와이 리뉴어블스의 경우 경영진은 명목 생산능력이 하루 약 4,000배럴에 가깝다고 밝혔다. 이 프로젝트는 내부수익률(IRR) 40%를 기준으로 투자 검토가 이뤄져 연간 약 3,500만 달러의 EBITDA 창출을 의미하지만, 실제 성과는 가동률과 시장 여건에 좌우될 것이라고 덧붙였다.

파 파시픽은 미국 서부에서 상당한 시너지를 낼 수 있는 잠재적 인수를 지속적으로 우선 검토하고 있으나, 거래를 서두르지는 않고 있다고 밝혔다. 물류 투자는 장거리 송유관보다는 기존 핵심 시장 내 소규모 프로젝트가 될 가능성이 높다.

경영진은 향후 소형 정유사 면제(SRE) 여부를 예측하기는 여전히 어렵다고 밝혔다. 기본 전제는 미국 에너지부(DOE)와 환경보호청(EPA)이 기존의 상대적 평가 점수 체계를 유지하는 것이다.

실적 발표 콘퍼런스콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day, and welcome to the Par Pacific Third Quarter 2026 Earnings Conference Call. [Operator Instructions] This event is being recorded. I would now like to turn the conference over to Ashimi Vitter, Vice President of Investor Relations. Please go ahead.

Ashimi Patel

Thank you, Sarah. Welcome to Par Pacific's Third Quarter Earnings Conference Call. Joining me today are Will Monteleone, Richard Creamer, Shawn Flores and Jerry Stumbo. 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 reconciliations and additional information. I'll now turn the call over to our President and Chief Executive Officer, Will Monteleone.

William Monteleone

Thank you, Ashimi, and good morning, everyone. Before I turn to results, I want to note a leadership transition in our refining and logistics organization. After many years of outstanding contributions, Richard Creamer is transitioning to a senior adviser role ahead of his retirement next spring, and Jerry Stumbo has joined us as Executive Vice President of Refining and Logistics. Richard built a reliable, disciplined operating organization that is a significant part of the results we are reporting today, and we are fortunate to retain his counsel through the transition.

Richard will walk through our operational results on today's call, and Jerry will take that role beginning next quarter. I'm excited to welcome Jerry to the team and believe his experience, character and resilience will be critical ingredients to drive our operations to the next level. I couldn't be more excited to work side-by-side with him to build an even stronger business. Turning to the quarter. Strong financial results were driven by solid reliability and commercial execution from our core operations. Third quarter adjusted net income was $10.70 per share. Adjusted EBITDA was $646 million, including a small refinery exemption benefit of $222 million.

We safely and successfully completed Hawaii's plant-wide turnaround and returned the facility to full operations, and our mainland refineries ran well during the peak summer margin environment. The refined product market environment strengthened through the quarter, and our combined market index averaged a quarterly record of $38.45 per barrel, nearly 3x the 2025 average of $12.40 per barrel. Constrained Persian Gulf and Russian refined product exports, restricted Asian refiner throughput and continued trade protectionism remained critical factors that limited refined product supply. Demand remained resilient.

Looking forward, global refined product inventories remain tight and structural factors supporting refining margins remain intact. Overall, Asian refinery runs remain constrained as the ability to run long-haul import/export refineries and an elevated freight rate environment faces pressure. Increasing waterborne LNG prices are also major factors for both Europe and Asia as we head into winter. The value of local manufacturing is going up in a more volatile world.

Turning to retail. Same-store fuel volumes and in-store sales increased by 2.1% and 1.9%, respectively, compared to the third quarter of 2025, reflecting continued momentum. Our enhanced food offering remains a key driver of in-store performance with food sales growing 11% over the same period and now representing more than 10% of total in-store sales. There is plenty of room to grow this valuable revenue stream. We're also encouraged by the early performance of our most recent new-to-industry location, which is exceeding underwriting expectations and demonstrating the value of our differentiated food and merchandising strategies.

On the strategic front, our Hawaii renewables business reached an inflection, generating a profit during the quarter. Renewable diesel production ramped quickly following July's turnaround with September throughput of approximately 3,700 barrels per day. Just as encouraging, the business is operating at a competitive operating expense per gallon, which is essential to the long-term durability of the platform. Separately, the sale of Laramie Energy remains on track to close in the fourth quarter, subject to customary closing conditions. We expect to receive approximately $120 million in cash proceeds at closing with additional fixed and natural gas price-based consideration over the following 5 years.

Our balance sheet is in the strongest position in the company's history. We ended the quarter with total liquidity of approximately $2.4 billion. And for the first time, the company is in a net cash position. This is a meaningful milestone and a major strategic asset for a cyclical business. Our focus remains on day-to-day reliability, executing low capital, high-return growth projects and opportunistically repurchasing shares. In closing, continued operational discipline, commercial execution and capital allocation are translating in a constructive market into durably stronger free cash flow per share. With that, I'll hand it over to Richard, who will walk through our Refining and Logistics results.

Richard Creamer

Thank you, Will, and good morning. Let me begin by welcoming Jerry to the team. I'm excited that he's here, and I look very forward to the bright future for him and Par Pacific ahead. Hawaii had a busy quarter, and I want to recognize the logistics team for their excellent hurricane preparation and response along with the well-executed changeout of the single point mooring system. In addition, the refining team successfully executed their turnaround, ending with a quality onetime refinery restart. We're very proud of the Hawaii team and their efforts to reliably support the entire island community.

Third quarter refining throughput was 174,000 barrels per day. In Hawaii, throughput was 57,000 barrels per day and production costs were $8.45 per barrel. The lower throughput was related to extended turnaround discovery work. The refinery is now positioned for a 5-year run and is benefiting from several project completions that support the improved onstream reliability and annualized capacity. Hawaii Renewables throughput was 78,000 gallons per day and production costs were $0.38 per gallon. Following the turnaround, we saw strong throughput rates and continue to broaden and prove out our feedstock flexibility.

In Q3, we successfully processed canola, yellow grease and tallow feedstocks. Now our forward focus shifts to sustaining reliable operations and optimizing the pretreatment and hydrotreater units. Shifting to Washington, throughput was 40,000 barrels per day and production costs were $4.68 per barrel. In Wyoming, throughput was 19,000 barrels per day and production costs were $9.27 per barrel. In Montana, throughput was a quarter record 58,400 barrels per day and production costs were $10.41 per barrel. Excluding $6 million of OpEx related to coker maintenance, routine production costs were $9.29 per barrel.

It's worth a moment to reflect on the progress we've made at Billings since the acquisition. Prior to our ownership, the refinery operated at approximately 50,000 barrels per day with production costs exceeding $12 per barrel. Through disciplined reliability investments and consistent execution, we've increased throughput to 56,000 barrels per day year-to-date while reducing production costs to below $10 per barrel. With a stronger operating foundation in place, we are adjusting our focus to the next phase of high-return growth projects and logistics improvements to further enhance the refinery's earnings potential.

Moving to the fourth quarter. With our planned maintenance events behind us, refining throughput guidance reflects strong Q4 demand. We expect Hawaii between 85,000 and 89,000 barrels per day, Washington between 39,000 and 42,000, Wyoming between 16,000 and 18,000 and Montana between 53,000 and 57,000, resulting in a system-wide midpoint of 200,000 barrels per day. Hawaii Renewables throughput is expected between 2,800 and 3,400 barrels per day, reflecting continued feedstock optimization and operating flexibility. I'll now turn the call over to Shawn to cover the financial results.

Shawn Flores

Thank you, Richard. Third quarter adjusted EBITDA was $646 million and adjusted net income was $531 million or $10.70 per share. Our third quarter results include a gain related to the 2025 small refinery exemptions of $222 million in adjusted EBITDA and $187 million in adjusted net income. These amounts reflect the expected pre and post-tax cash benefits based on September 30 RIN prices. For comparability, the upcoming refining segment commentary will exclude the impact of these SRE benefits.

The Refining segment generated third quarter adjusted EBITDA of $396 million compared to $561 million in the second quarter. Our third quarter combined refining index was $38.45 per barrel, an increase of approximately $5.50 per barrel compared to the second quarter. System-wide capture was 86%, reflecting the impacts of Hawaii contractual price lag and turnaround activities. Excluding these items, normalized capture was approximately 98%. Starting in Hawaii, margin capture was 54%, including a net price lag headwind of $52 million or $10 per barrel. Capture was also impacted by June turnaround downtime with the associated margin effects recognized in the third quarter.

Normalizing for these items, Hawaii capture was 97%. In the Rockies, combined capture was 109%, supported by strong seasonal demand in Montana and a $9 million FIFO benefit in Wyoming. In Washington, capture was 89%, reflecting a normalization of West Coast jet to diesel spreads compared to the first half of the year. Shifting to our newly created Renewables segment. Renewables adjusted EBITDA was $5 million, reflecting supportive environmental credit prices and renewable diesel margins. Due to downtime associated with the refinery turnaround, third quarter renewable throughput and sales volumes were approximately half of what we would expect at normalized operating rates.

Turning to Logistics. Adjusted EBITDA was $31 million in the third quarter, partially impacted by lower asset utilization during the Hawaii turnaround. Our Retail segment reported adjusted EBITDA of $19 million in the third quarter compared to $17 million in the second quarter, reflecting improved fuel margins during the first half of the quarter. Moving to cash flow. Cash from operations was $839 million, including a $387 million working capital inflow and $50 million of turnaround expenditures. The working capital inflow primarily reflected the reversal of elevated receivables and equity funded product inventory from the second quarter.

Despite the large inflow, our year-to-date working capital change remains an outflow of over $110 million, which we would expect to unwind as commodity prices decline. Separately, during the quarter, we sold approximately $200 million of excess RINs associated with our 2025 small refinery exemptions. Approximately half of the cash proceeds settled during the third quarter with the balance expected in the fourth quarter. Third quarter capital expenditures, including turnaround costs, totaled $87 million, bringing our year-to-date spending to $205 million. With our major maintenance activities behind us, we expect full year capital and turnaround costs to finish slightly above our 2026 guidance range.

Shifting to the balance sheet and capital allocation. We fully repaid our ABL borrowings of $243 million and repurchased $10 million of common stock during the third quarter. As of September 30, total liquidity was $2.4 billion, including a cash balance of $731 million. As part of our ongoing efforts to optimize our capital structure, we expect to terminate our Hawaii crude intermediation facility in the near term. We plan to use approximately $150 million of cash on hand to repurchase the related inventory and transition the collateral to our ABL facility, reducing annual working capital funding costs by approximately $14 million per year.

Finally, we expect to fully utilize our remaining federal NOLs this year. We entered 2026 with approximately $775 million of NOLs, providing a significant cash tax benefit of over $160 million. With these NOLs fully utilized, we anticipate becoming a regular federal cash taxpayer going forward. Looking to the fourth quarter, our combined refining index averaged $41.34 per barrel in October or $3 per barrel above the third quarter average. In Hawaii, we expect our fourth quarter crude differential to land between $9 and $11 per barrel, reflecting crude purchases made during the third quarter. Quarter-to-date Hawaii capture is supported by higher clean product freight pass-through rates and wider West Coast to Singapore distillate spreads.

Across our Mainland system, we are well positioned to benefit from the widened Brent-to-TI spreads and heavy crude differentials, particularly in Washington and Montana, where our combined heavy crude throughput averages 50,000 barrels per day or 25% of our system-wide feedstock mix. Overall, we entered the fourth quarter with a strong outlook and significant financial flexibility. Looking ahead to 2027, we see attractive opportunities to compound recent earnings through organic growth investments while maintaining an opportunistic approach to share repurchases. This concludes our prepared remarks. Sarah, we'll turn it back to you for Q&A.

Operator

[Operator Instructions] Your first question comes from Matthew Blair with TPH.

질의응답

Matthew Blair

Congrats on the strong results. I was hoping you could talk a little bit more about the impact of rising tanker rates on your business. You provided that $9 to $11 per barrel Hawaii crude diff in Q4. Is there any idea where Q1 is trending so far on that metric? And then clean rates are also moving up. Can you talk about how that supports you in the Hawaii product market?

Shawn Flores

Matthew, thanks for the question. Yes, I'll start by sort of giving some context on Q4, and we're -- we typically don't give guidance out beyond the upcoming quarter, but I think I can help sort of set the stage and what we're seeing in the prompt market. As I mentioned, the fourth quarter Hawaii crude diff is guiding between $9 and $11 per barrel, which is actually softer relative to the third quarter. And just keep in mind, we're typically buying crude 2 to 3 months in advance. And so that's really indicative of crude that we bought in the early part of Q3.

Obviously, since then, dirty freight and market structure have widened materially. I think the best proxy to look at is delivered ANS differentials to the West Coast. And over the last 2 to 3 months, those differentials have widened by $10 to $15 per barrel. So, I think that gives you some context of the types of crude that we're competing against in the market. But keep in mind, as you mentioned, we have meaningful offsets to the dirty freight exposure. On the sort of revenue side, all of our contracts include clean product freight pass-through rates. And over the same time period, those rates are up $6 to $8 per barrel.

We also have a fair amount of exposure to West Coast pricing. And when you look at L.A. versus Singapore spreads, particularly on the distillate side, those have been averaging $30 to $40 per barrel relative to about $5 per barrel in the third quarter. So, those are meaningful offsets that we expect to support capture in Hawaii. Those may not sort of materialize exactly in the same quarter. The clean product freight comments and West Coast spreads is a prompt comment. And obviously, we have the lag on the crude side.

I think the other thing that I just wanted to remind you of is our exposure to the heavy Canadian crude differential on the mainland. We run about 50,000 barrels a day of heavy crude. We've seen those differentials widen out by $15 per barrel over the last month or so. And so, I mean, overall, our system, I think, provides a really natural balance between Hawaii and the Mainland. And I think we're able to offset much of the waterborne freight and Brent-to-TI spreads that you're seeing in the market. And Will, anything else you'd like to add?

William Monteleone

No. I mean, I think, Matthew, the only thing I'd point out too is keep in mind the delivered waterborne freight number or the delivered all-in crude cost to Hawaii is really made up of 3 factors, right? It's the kind of the origin point or FOB differentials on crude freight and then market structure. And I would just point out that if -- what we're seeing is in regions that are exporters of crude that are an extended distance from their typical markets are having to discount the FOB crude in order to clear into the market.

So, in the same time period, we've seen FOB crude differentials move from plus 3 to 5 to minus 5 to 8 in certain markets. So, again, it's -- there's a number of variables that move in ensuring that crude is clearing the market. And I think I'd just point that out. I think Shawn gave you the best proxy with respect to the delivered ANS values, and that gives you a good sense of where the market is today.

Operator

Your next question comes from John Royall with Piper Sandler.

John Royall

So my first question is just on potential M&A. We've seen some activity out in the market kind of across the size spectrum for independent refiners. Bless you, can you just update us on how you're thinking about refinery M&A more broadly post-Billings? And if there's any kind of geographic white space that you'd like to fill in?

William Monteleone

Sure, John. It's Will. I think broadly, it's there's not a lot that's changed in our M&A framework. And again, I think we continue to be focused in areas where we would have significant synergies. And ultimately, that's principally in the Western United States that would plug into our existing network. That said, I don't think we're in a rush to try and get things done. And I would recognize that we're in a very attractive margin environment, which typically is a challenging environment for which a buyer and a seller to get together, notwithstanding recent activity.

John Royall

That makes sense. And then my follow-up is on the balance sheet and having the ABL at 0 and over $700 million of cash on the balance sheet is a great position to be in. My question is, do you expect to keep the ABL at 0 and finance your working capital with cash from here? Or should we expect those balances to move back up a little bit?

William Monteleone

Yes. John, it's Will again. I think on just broader capital allocation, I would just say really our capital allocation framework remains consistent. And I'd say, first and foremost, we're really -- we're a growth company and are focused on building shareholder value over the next 5 to 10 years. And in a cyclical business, maintaining excess capital after a period of near record margins is particularly valuable. And we've seen this time and again in the refining business that balance sheet strength really affords us flexibility to be prepared to act when inevitably the cycle is going to change.

And so in terms of priority, I would just say we're always going to challenge ourselves and rethink our position. And I'd point you to the past to really understand how we're dynamically thinking about things and ensuring that we're deploying capital in the most effective and risk-adjusted manner. So I mean, since 2023, I would point you to, we've repurchased our shares and have found that to be a particularly valuable allocation and deployed nearly $360 million and reduced our share count by 20%.

And at other times, you've seen us active on the M&A side. And it is difficult to predict when those opportunities emerge. And at other times, you've seen us execute organic capital projects like the approximately $100 million opportunity at Hawaii Renewables. So, I really just give you that context because it gives you a sense of how we think. And I'd also just say at the same time, we don't rest on our past and remind ourselves that we're only as good as our next capital deployment decision.

Operator

[Operator Instructions] Your next question comes from Jason Gabelman with TD Cowen.

Jason Gabelman

You mentioned in your prepared comments that you're shifting to high-growth projects in Montana and you've kind of increased capability in Hawaii out of the turnaround. So wondering if you could walk through some of the details on that. Any color on potentially increasing crude flexibility and/or the future ability to increase capacity at the sites?

William Monteleone

Yes. Sure, Jason, it's Will. I think in Hawaii, the opportunities we're pursuing there are really to increase our ability to run lighter crudes. And I would say it's early, but we're encouraged by the rates that we're seeing out of Hawaii post turnaround and have found -- again, there's times where we're able to get over 90,000 barrels per day. Again, I think it's too early to call that consistent, but I think we're encouraged by the results we're seeing there.

In Montana, I would tell you, it's about a mix of crude flexibility, but then also product yield flexibility. And again, I think we've got a number of projects that we think are going to expand our capabilities to run a range of inland crudes and then also have a number of debottlenecking projects that are underway. And these are probably less than $10 million projects that will allow us to expand our diesel production or our jet production by up to 1,000 barrels per day. And again, other projects inside the alkylation units that will allow us to debottleneck that unit by 10% to 20%. So, again, lots of low-hanging fruit in Montana that we're seeing. And again, I think we're excited to have a stronger operating foundation to start from that we can execute on some of these projects.

Jason Gabelman

Great. And my other question, just on the SRE disclosure. So, once you monetize these $200 million worth of RINs, will you be -- you'll still be current on your current RIN compliance?

Shawn Flores

Jason, it's Shawn. That's correct. Our sort of purchase cadence remains consistent with how we've approached it in the past. The RINs that we've sold that I referenced the $200 million is truly excess RINs, and we'd like to maintain a sort of assets that fully offset the potential obligation in the future.

Jason Gabelman

Got it. And if I could just squeeze one last one in. There's obviously been product pipelines announced going west by some of your peers as you look at kind of inorganic opportunities and logistics opportunities in kind of the western region of the country. Are those potential projects that can fit in your portfolio?

William Monteleone

Yes, Jason, I think I would say we look at lots of different opportunities, including those on the logistics side. Generally speaking, I think we're trying to find opportunities that have a build multiple that would be attractive for our cost of capital. And again, I think they're going to be probably smaller opportunities that fit within our core markets versus adding on to some of those long-haul pipes that are probably more focused on clearing Mid-Con barrels to the West Coast.

Operator

Your next question comes from Josiah Knight with Goldman Sachs.

Josiah Knight

I guess first one on China, reports of refined products coming out the region or more coming out of the region. Can you just talk about what you're seeing in real time and then how you see this evolving over the next near to medium term?

William Monteleone

Sure. Yes, this is Will. Josiah, thanks for the question. I think big picture, our view of Chinese policy and approach is really unchanged from where it's been. And I would just characterize that broadly as you're seeing refined product exports at flat to down over the last 5 years as they've rationalized kind of their approach to, let's just call it, internally focusing on serving the Chinese market for petrochemicals as well as transportation fuels.

So, we believe that framework remains the same. It's going to be volatile quarter-to-quarter based on the timing and frequency of export quotas. And so again, I think that's the kind of the main kind of, let's just call it, quarterly release valve that we're monitoring. And again, I think we did see some increase in exports during parts of the third quarter. Again, it does look like there's, again, increased quota volume available in the fourth quarter.

That said, I'd point out the Northeast Asian product balances are dynamic. China is clearly a factor. That said, a number of refineries that operate in Northeast Asia have long-haul freight on crude and are export-oriented and so have to pay the clean product freight outbound to try and clear the refined product in the market. So, given the dynamics on both the dirty freight as well as the clean freight side, you're in a more challenging environment if you're an export-oriented refinery in Asia.

Josiah Knight

Got it. That makes sense. And then the follow-up just on renewable diesel. You guys broke it out this segment and that positive EBITDA, which is nice to see. Can you just walk us through how you plan on continuing to ramp this segment maybe from a volume perspective? And additionally, any color you have on how you think about mid-cycle profitability for the segment?

Shawn Flores

Yes, Josiah, it's Shawn. I think Richard provided our fourth quarter guidance midpoint around 3,000 barrels a day. Our nameplate capacity there is closer to 4,000. So I think we'll continue to make progress in getting it up closer to nameplate over the coming quarters.

When we underwrote this project, we underwrote it at 40% IRR returns, which I think implies about a $35 million a year EBITDA contribution. We did $5 million in Q3. Obviously, volumes were about half of what we would expect in normal operating conditions. So I think that gives you a sense of sort of the margin potential in this type of margin environment. So I think the historical framework is the right one to go off of for now at $35 million a year. I think we would just note that the current margin environment is probably better than our underwriting case.

Operator

Your next question is a follow-up from Matthew Blair of TPH.

Matthew Blair

Did you have a baseline on what we should think about for SREs for next year, so essentially the 2026 SRE applications that you would potentially receive in 2027? Do you think investors should just pencil in 0 here because absolute refining profitability was so strong in 2026? Or is it more of a relative calculation and so the small refineries would still have the case to receive SREs?

William Monteleone

Yes. Thanks for that easy question, Matthew. I appreciate it. That's -- but no, I think very difficult to predict the approach that we'll be taking on a year-to-year basis. And again, I think our current baseline would be that the law and the approach that the DOE and the EPA go through remains consistent.

And again, the scoring frameworks are relative. And ultimately, I think that's probably the best way in which to evaluate the baseline, which, again, I think, again, you've got 2 years of history at which point to use as I think your best guide for the future. There's nothing that we've seen in the law or in the approach that we're seeing taken that suggests a different approach going forward.

Operator

There are no further questions at this time. I will now turn the call back to Will Monteleone for closing remarks.

William Monteleone

Thank you all for joining today. The third quarter was a strong continuation of a year defined by execution, notably the successful completion of our Hawaii turnaround, our renewable business turning profitable in its first full quarter of operations and reaching a net cash position for the first time in the company's history. Our focus remains on disciplined execution as the durable path to growing earnings and free cash flow per share over time. Thank you to our employees for their focused effort through the quarter, and thank you all for joining us today.

Operator

This concludes today's conference call. Thank you for joining. You may now disconnect.