Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (March 2018)
33 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Mar 27, 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018
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 Gasoline and diesel marketed through 91 locations in Hawaii and 33 locations in Idaho and Washington Exclusive provider of “76” branded outlets in Hawaii Completed launch of Hele, a local fuel brand in Hawaii Laramie Energy: A Competitive Natural Gas Producer (2
Slide 4: Corporate Strategy
4 Corporate Strategy Grow Existing Businesses Bolt-on acquisitions Selective capital projects Continuous business improvement Acquire Similar Businesses Energy and infrastructure business in niche markets Maintain Diverse Earnings Profile Decrease commodity price volatility Enhance credi
Slide 5: Financial Summary
5 Financial Summary ____________________ (1) Free Cash Flow is defined as cash provided by (used in) operations minus capital expenditures. See Appendix for Non-GAAP reconciliation. (2) Adjusted Net Income (Loss) is defined as Net Income (Loss) excluding changes in the value of contingent considerat
Slide 6: Business Segment Profile
6 Business Segment Profile ____________________ (1) Percentage of total segment Adjusted EBITDA excluding corporate and other. (2) After adjusting for the February 2018 acquisition Retail and Logistics contributed 38% of 2017 Adjusted EBITDA (1) E&P diversification with 39.1% ownership of Laramie En
Slide 7: Hawaii Refinery Asset Highlights
7 Refining Unit Capacity (MBPD) Crude Unit 94 Vacuum Distillation Unit 40 Hydrocracker 19 Catalytic Reformer 13 Visbreaker 11 Hydrogen Plant (MMCFD) 18 Naphtha Hydrotreater 13 Cogeneration Turbine Unit 20 MW Hawaii Refinery Largest and most complex refinery in Hawaii Distillate yield configured
Slide 8: Hawaii Business Strategy
8 At Acquisition: September 2013 60,000 BPD throughput 45,000 BPD on-island sales 35% fuel oil yield Middle East crude slate $5.00/bbl production cost Hawaii Business Strategy FY 2017: 73,736 MBPD throughput 63,282 MBPD on-island sales 16% fuel oil yield Balanced opportunistic crude slate $3.60/bbl
Slide 9: Wyoming Refinery Asset Highlights
9 Wyoming Refinery Asset Highlights Asset Detail Refining Unit Capacity (MBPD) Crude Unit 18 Residual Fluid Catalytic Cracker 7 Catalytic Reformer 3 Naphtha Hydrotreater 3 Diesel Hydrotreater 5 Isomerization 5 18,000 bpd refinery in Newcastle, Wyoming Complex refinery with a Nelson Complexity In
Slide 10: Wyoming Business Strategy
10 Acquisition: July 2016 15,200 BPD throughput 41% distillate yield Wyoming Business Strategy 2019 Goals: Expanded commercial market Increased throughput > 54% distillate yield Added Economic and Planning group Refined products transported by rail Establish out of market commercial strategy Upgrade
Slide 11: Logistics Segment
® Par Pacific Logistics Segment
Slide 12: Hawaii Logistics Assets Map
12 Hawaii 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 Enhanced distribution capability Latin America South America Nort
Slide 13: Wyoming Logistics
13 Wyoming Logistics Logistics Assets Well-positioned to benefit from regional development ____________________ (1) Source: Baker Hughes North American Rig Count as of March 2, 2018. 140-mile crude oil pipeline gathering system providing direct access to Powder River Basin crude 40-mile products
Slide 14: Retail Segment
® Par Pacific Retail Segment
Slide 15: Hawaii Retail Highlights
15 Hawaii Retail Highlights Extensive footprint across four islands in Hawaii Same-store fuel and non-fuel sales up 2.6% and 2.1%, respectively, during the fourth quarter 2017 compared to the same period last year New location expected to open in 2018 High real estate costs, scarcity of land,
Slide 16: Pacific Northwest Retail Acquisition
16 Pacific Northwest Retail Acquisition • 33 Cenex Zip Trip branded convenience stores • 21 fee-owned sites • 30 sites recently remodeled / upgraded • Strategic multi-year fuel supply and Cenex branded agreements • Second largest branded retail position in Spokane region • Historically robust fuel m
Slide 17: Laramie Energy
® Par Pacific Laramie Energy
Slide 18: Laramie Energy Asset Highlights
18 Asset Highlights Laramie Energy ____________________ (1) Figures for 100% of Laramie Energy based on 2018 two rig capital plan. (2) After adjusting for the February 2018 acquisition (3) 2016 unit costs were $1.72/Mcfe. Par Pacific owns 39.1% of Laramie Energy, LLC 6,500+ Mesa Verde drilling l
Slide 19: Appendix
® Par Pacific Appendix
Slide 20: Hawaii Market Fundamentals
20 Air Transport Electric Power Ground Transport Industrial Marine Commercial Hawaii Market Fundamentals Air Travel (2) ____________________ 1) Source: EIA data as of May 2017; including military demand per Par Pacific internal estimates. 2) Source: Department of Business, Economic Development and T
Slide 21: Mid Pacific Crack Spread and Crude Differential
21 Mid Pacific Crack Spread and Crude 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, e
Slide 22: Wyoming Crack Spread
22 Wyoming Crack Spread ____________________ (1) Company calculation based on a rolling four year average Wyoming 3-2-1 Index is calculated as follows: Rapid City Daily: Computed by taking 2 parts gasoline and 1 part distillate (ULSD) as created from a barrel of West Texas Intermediate Crude. Denver
Slide 23: Capital Expenditures Summary
23 Capital Expenditures Summary Maintenance / Regulatory Growth Turnaround Annual base maintenance capital expenditures of $25-30MM 2018 estimates include non-recurring maintenance and regulatory capital related to Wyoming Refinery and Logistics Distillate hydrotreater project in Hawaii accoun
Slide 24: Corporate Structure
24 Corporate Structure Par Pacific Holdings Inc. NYSE: PARR $115 MM 5% Convertible Notes due 6/15/2021 Par Hawaii Refining, LLC Supply and Offtake Agreement Par Hawaii, Inc Hermes Consolidated, LLC d/b/a Wyoming Refining Company ____________________ Note: Chart omits intermediate subsidiaries betwee
Slide 25: Laramie Energy Hedging Program
25 Laramie Energy Hedging Program 2018 2019 NYMEX Fixed Price Swap Hedged Volume (MMBtu/day) 88,415 9,863 Average Floor Price ($/MMBtu) $2.67 $3.09 NYMEX Collar Hedged Volume (MMBtu/day) 7,500 Collar ($/MMBtu) $2.92 - $3.25 CIG Basis Swap Hedged Volume (MMBtu/day) 75,072 Average CIG Differential to
Slide 26: Year End Reserves and PV10 Summary – Laramie Energy
26 Year End Reserves and PV10 Summary – 100% of Laramie Energy Laramie Energy Reserves Strip Pricing Summary Note: Par Pacific Holdings owned 42.3% of Laramie Energy, LLC as of 12/31/2017. Par Pacific Holdings currently owns 39.1%. Reserve information based on NSAI’s reserve report (1) NGLs and Oil
Slide 27: Laramie Key Statistics
27 Laramie Key Statistics ____________________ (1) Laramie Debt is non-recourse to Par Pacific and solely guaranteed by a Par Pacific subsidiary that owns Laramie Energy units. (2) Preferred stock balance based on current Liquidation Preference amount. (3) Par Pacific ownership of Laramie Energy dec
Slide 28: Laramie Energy Adjusted EBITDAX
28 Laramie Energy Adjusted EBITDAX ($ in thousands)
Slide 29: Non-GAAP PV10 and PV20 Disclosure
29 Non-GAAP PV10 and PV20 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 flo
Slide 30: Non-GAAP Financial Measures: Adjusted EBITDA and Adjusted Net Income
30 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation (1) ($ in thousands, except per share data) _____________________________________________ (1) We believe Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted Net Income (Loss) per diluted s
Slide 31: Non-GAAP Financial Measures: Adjusted EBITDA and Net Income, 2017
31 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation (1) For the twelve months ended December 31, 2017 ($ in thousands, except per share data) _____________________________________________ (1) Refer to description of Adjusted Net Income (Loss), Ad
Slide 32: Non-GAAP Financial Measures: Adjusted EBITDA by Segment
32 Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2017 ($ in thousands) Refining Logistics Retail Corporate, Eliminations, and Other Operating income (loss) $ 86,013 $ 33,993 $ 24,700 $ (49,834 ) Adjustments to operatin
Slide 33: Non-GAAP Financial Measures: Free Cash Flow
33 Non-GAAP Financial Measures Free Cash Flow (1) ($ in thousands) 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash provided by (used in) operations $ 12,029 $ (40,835 ) $ (12,442 ) $ 17,357 $ 24,995 $ 37,202 $ 43,259 $ 1,027 Less: Capital Expenditures 4,476 7,215 7,585 5,557 7,579 4,198 8,111 11,820 Free Cas
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