Leases

We have cancellable and non-cancellable finance and operating lease liabilities for the lease of land, vehicles, office space, retail facilities, and other facilities used in the storage and transportation of crude oil and refined products. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years or more. There are no material residual value guarantees associated with any of our leases.

The following table provides information on the amounts (in thousands, except lease term and discount rates) of our ROU assets and liabilities, weighted average remaining lease term, and weighted average discount rate as of December 31, 2025 and 2024, and their placement within our consolidated balance sheets:


Lease type	Balance Sheet Location	December 31, 2025			December 31, 2024
Assets

Finance	Property, plant, and equipment	$	33,557		$	30,655
Finance	Accumulated amortization	(17,185)			(14,543)
Finance	Property, plant, and equipment, net	16,372			16,112
Operating	Operating lease right-of-use assets	391,395			428,120
Total right-of-use assets		$	407,767		$	444,232

Liabilities
Current
Finance	Other accrued liabilities	$	2,303		$	2,252
Operating	Operating lease liabilities	99,558			80,174
Long-term
Finance	Finance lease liabilities	12,002			11,690
Operating	Operating lease liabilities	312,450			362,092
Total lease liabilities		$	426,313		$	456,208

Weighted-average remaining lease term (in years)
Finance		9.89			10.26
Operating		6.58			7.17
Weighted-average discount rate
Finance		6.89		%	6.97		%
Operating		7.62		%	7.76		%

The following table summarizes the lease costs recognized in our consolidated statements of operations (in thousands):


	Year Ended December 31,
Lease cost type		2025		2024		2023
Finance lease cost
Amortization of finance lease ROU assets		$	2,646	$	2,335	$	1,906
Interest on lease liabilities		960		987		636
Operating lease cost		126,632		112,850		98,928
Variable lease cost		11,181		7,197		9,246
Short-term lease cost		9,536		4,183		13,500
Net lease cost		$	150,955	$	127,552	$	124,216

Operating lease income (1)		$	(2,161)	$	(6,011)	$	(14,908)

_________________________________________________________

(1)At December 31, 2025 and 2024, Property, plant, and equipment, net, associated with leased assets was approximately $4.3 million and $4.8 million, respectively. The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.

The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):


	Year Ended December 31,
Lease type	2025		2024		2023
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases	$	2,297	$	1,872	$	1,693
Operating cash flows from finance leases	941		954		631
Operating cash flows from operating leases	119,917		108,847		98,416
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities	2,942		2,319		7,896
ROU assets obtained in exchange for new operating lease liabilities	57,352		166,028		72,219
ROU assets terminated in exchange for release from finance lease liabilities	—		—		—
ROU assets terminated in exchange for release from operating lease liabilities	1,318		41		1,439

The table below includes the estimated future undiscounted cash flows for finance and operating leases as of December 31, 2025 (in thousands):


For the year ending December 31,	Finance leases		Operating leases		Total

2026	$	2,985	$	126,852	$	129,837
2027	3,022		117,653		120,675
2028	2,118		102,301		104,419
2029	1,712		24,018		25,730
2030	1,163		17,487		18,650
Thereafter	8,692		113,782		122,474
Total lease payments	19,692		502,093		521,785
Less amount representing interest	(5,599)		(89,873)		(95,472)
Present value of lease liabilities	$	14,093	$	412,220	$	426,313

Additionally, we have no future undiscounted cash flows for operating leases or finance leases that have not yet commenced.

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

PAR PACIFIC HOLDINGS, INC. Leases Disclosure

About Leases Disclosures

Other Available Disclosures