Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (March 2017)
34 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Mar 1, 2017
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Forward-Looking Statements / Disclaimers
2 Forward-Looking Statements / Disclaimers The information contained in this presentation has been prepared to assist you in making your own evaluation of the company and does not purport to contain all of the information you may consider important. Any estimates or projections with respect to futur
Slide 3: Our Business Platforms
3 Our Business Platforms Retail - Distributor and Marketer of Refined Products Gasoline and diesel marketed through 90 locations across Hawaii Exclusive provider of 76 and 7-Eleven branded outlets in Hawaii Launched Hele, a new local brand; rebranded 32 of 37 locations in 2016 Competitive Natu
Slide 4: Par Pacific Summary
4 Par Pacific Summary Enterprise Value (2) Key Statistics ____________________ (1) Represents Par Pacific’s 42.3% share of Laramie Energy. Calculated based on mid point of 2017 exit production target. (2) Closing stock price as of February 27, 2017. 45,538,261 shares of common stock outstanding, deb
Slide 5: Hawaii Refinery Asset Highlights
5 Refining Unit Capacity (MBPD) Crude Unit 94 Vacuum Distillation Unit 40 Hydrocracker 18 Catalytic Reformer 13 Visbreaker 11 Hydrogen Plant (MMCFD) 18 Naphtha Hydrotreater 13 Cogeneration Turbine Unit 20 MW Hawaii Refinery Asset Highlights Largest and most complex refinery in Hawaii Distillate
Slide 6: Leader in Niche Hawaiian Market
6 Leader in Niche Hawaiian Market Hawaii Air Travel(2) ____________________ (1) Source: DBEDT; EIA, including military demand per Par Pacific internal estimates. (2) Source: Number of visitors per DBEDT. Hawaii Refined Product Demand(1) Hawaii Refinery Yield 2016 2014 Shortage of available distillat
Slide 7: Hawaii Refinery Operating Trends
7 Hawaii Refinery Operating Trends Total Sales Volume Production Cost(1) Throughput Volume Increased refinery throughput generates economies of scale with higher efficiency and lower production cost On-island demand and refining margin environment are the primary constraints for refinery utiliza
Slide 8: Mid Pacific Crack Spread and Differential
8 Mid Pacific Crack Spread and Differential ____________________ (1) Company calculation based on a rolling five-year average for the 4-1-2-1 Mid Pacific Crack Spread plus Mid Pacific Crude Differential Mid Pacific Crude Differential is calculated as follows: Weighted average differentials, excludin
Slide 9: Wyoming Refinery
9 Wyoming Refinery Refinery Operations 2016 Product Profile(1) Refinery Asset Detail Refining Unit Capacity (MBPD) Crude Unit 18 Residual Fluid Catalytic Cracker 7 Catalytic Reformer 3 Alkylation 1 Naphtha Hydrotreater 3 Diesel Hydrotreater 6 Isomerization 4 Located in Newcastle, Wyoming Complex
Slide 10: Wyoming Crack Spread
10 Wyoming Crack Spread ____________________ (1) Company calculation based on a rolling three year average. Wyoming 3-2-1 Index is calculated as follows: Rapid City Daily: Computed by taking 2 part gasoline and 1 part distillate (ULSD) as created from a barrel of West Texas Intermediate Crude. Denve
Slide 11: Logistics Segment
® par Pacific Logistics Segment
Slide 12: Hawaii Logistics
12 30,000 Bbls 185,000 Bbls 138,000 Bbls 135,000 Bbls 12,000 Bbls Hawaiian Assets Map Asset Highlights Hawaii Logistics Integrated system enhances flexibility and profitability Difficult to replicate asset base Multiple advantages from single point mooring Increased safety and flexibility
Slide 13: Wyoming Logistics
13 Wyoming Logistics Logistics Assets 140-mile crude oil pipeline gathering system providing direct access to Powder River Basin crude 40-mile products pipeline feeds into the Magellan Products Line en route to Rapid City, South Dakota Jet fuel terminal in Rapid City and pipeline connecting to
Slide 14: Retail Segment
® par Pacific Retail Segment
Slide 15: Retail Highlights
15 Retail Highlights Extensive footprint across five islands in Hawaii New local brand HELE Existing retail and logistics network provides opportunity for additional throughput growth High real estate cost, scarcity of land, and logistics complexity strengthen competitive position Retail Net
Slide 16: Laramie Energy
® par Pacific Laramie Energy
Slide 17: Laramie Energy Asset Highlights
17 Anticipate lowering drilling and completion costs by 11% to $0.8MM per well during 2017 Over 6,500 Williams Fork drilling locations across 151,000 net acres, 81% held by production Wet gas production and processing contracts provide exposure to improving NGL markets Self-funded 2 rig dril
Slide 18: Laramie Energy 2017 Plans
18 1 rig program commenced December 2016 and expect to add second rig during 2Q 2017 Anticipated completions and production growth weighted to back half of 2017 Anticipated production growth range of 14% to 28% for 2017 exit vs. 2016 exit based upon staggered 2 rig program Expect to fund out
Slide 19: Financial Overview
® par Pacific Financial Overview
Slide 20: Par Pacific Adjusted EBITDA and Indexes
20 ____________________ Note: Adjusted EBITDA is a non-GAAP financial measure. See the Appendix for a reconciliation to the most directly comparable GAAP financial measure. Par Pacific Adjusted EBITDA and Indexes Mid Pacific 4-1-2-1 Wyoming 3-2-1
Slide 21: Debt Organizational Chart with Loan Balances
21 Debt Organizational Chart with Loan Balances Hermes Consolidated, LLC d/b/a Wyoming Refining Company Term Loan $53MM Revolver $18.3MM Mid Pac Petroleum, LLC / HIE Retail, LLC Term Loan $95MM Revolver $0 Par Wyoming Holdings, LLC Term Loan $67MM Par Pacific Holdings, Inc. Convertible Notes $115MM
Slide 22: Net Operating Loss Carryforward
22 Net Operating Loss Carryforward Differentiated Asset Relative to Peers Potential to Enhance Cash Flow with Growth Provides a Competitive Advantage for Growth Opportunities $1.6 billion NOL generates potentially significant value for Par Pacific Selected Benefits Illustrative Value to Par ($ in mi
Slide 23: Appendix
® par Pacific Appendix
Slide 24: Laramie Energy Hedging Program
24 Laramie Energy Hedging Program 2017 2018 NYMEX Fixed Price Swap Hedged Volume (MMBtu/day) 83,240 75,072 Average Floor Price ($/MMBtu) $2.605 $2.605 CIG Basis Swap Hedged Volume (MMBtu/day) 83,240 75,072 Average CIG Differential to NYMEX ($0.267) ($0.259) Northwest Rockies Pipeline Swap Hedged Vol
Slide 25: Year End Reserves and PV10 Summary
25 Year End Reserves and PV10 Summary – 100% of Laramie Energy Laramie Energy Reserves Update ____________________ Note: Par Pacific Holdings owns 42.3% of Laramie Energy, LLC Reserves information based on audit by Netherland Sewell & Associates unless otherwise noted (1) NGLs and Oil converted to g
Slide 26: Laramie Energy Acreage
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Slide 27: Capitalization Detail
27 Capitalization Detail ($ in millions) Facility Borrower Amount Outstanding (2/24/2017) Undrawn Amount Amortization (Years) Maturity Interest Rate Term Loan Par $60.4 - NA 7/11/2018 10.00% (12.00% PIK) Hawaii Retail Credit Facilities Retail $95.3 - 10.00 12/17/2022 L + 3.00% Retail Revolver Retail
Slide 28: Maturity Profile
28 Maturity Profile ($ in millions)
Slide 29: Annual Gross Margin Impact of Change in RIN Price
29 Annual Gross Margin Impact of $0.1/gallon Change In RIN Price $0.09 $0.34 $0.12 $0.19 $0.06 $0.06 $0.19 $0.07 $0.09 $0.09 $0.00/Bbl $0.05/Bbl $0.10/Bbl $0.15/Bbl $0.20/Bbl $0.25/Bbl $0.30/Bbl $0.35/Bbl $0.40/Bbl ALJ CVRR DK HFC MPC PARR PBF TSO VLO WNR Annual Gross Margin Impact per Barrel $0.1/g
Slide 30: Non-GAAP Financial Measures: Adjusted EBITDA and Adjusted Net Income Reconciliation
30 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation (1) ($ in thousands) _____________________________________________ (1) We believe Adjusted Net Income (Loss) and Adjusted EBITDA are useful supplemental financial measures that allow investors t
Slide 31: Non-GAAP Financial Measures: Adjusted EBITDA and Adjusted Net Income Reconciliation, 2016
31 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation (1) For the year-ended December 31, 2016 ($ in thousands) _____________________________________________ (1) Refer to description of Adjusted Net Income (Loss) and Adjusted EBITDA on the previous
Slide 32: Non-GAAP Financial Measures: Adjusted EBITDA by Segment Reconciliation
32 Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the year-ended December 31, 2016 ($ in thousands) Refining Logistics Retail Corporate, Texadian and Other Operating income (loss) $ (7,840 ) $ 21,422 $ 22,194 $ (52,368 ) Adjustments to operating income (lo
Slide 33: Laramie Energy Adjusted EBITDAX
33 Laramie Energy Adjusted EBITDAX (in thousands) Note: We believe Laramie’s Adjusted EBITDAX is a useful supplemental financial measure because it allows investors to more effectively evaluate Laramie’s operating performance as compared other companies without regard to financing methods and capita
Slide 34: Non-GAAP PV10 and PV-20 Disclosure
34 Non-GAAP PV10 and PV-20 Disclosure Non-GAAP PV10 and PV20 Disclosure PV10 and PV20 are considered non-GAAP financial measures under SEC regulations because they do not include the effects of future income taxes, as is required in computing the standardized measure of discounted future net cash fl
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