Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (January 2024)
27 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, January 2024
Slide 1: Investor Presentation January 2024
INVESTOR PRESENTATION I JANUARY 2024
Slide 2: Forward-Looking Statements / Disclaimers
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 future
Slide 3: Company Highlights
Company Highlights • Growing energy company providing both renewable and conventional fuels to the western United States • Integrated logistics network with 13 MMbbls of storage, and marine, rail and pipeline assets • System-wide refining capacity of 218,000 bpd • Peer-group leading distillate cut,
Slide 4: History of Successful Acquisitions
History of Successful Acquisitions • Successful expansion from single refinery to vertically integrated multi-site platform over ten years • Increased refining scale and targeted geographic reach in favorable markets through strategic bolt-on acquisitions • Demonstrated ability to integrate acquisit
Slide 5: Improving Earnings Per Share
Improving Earnings Per Share LTM Adj. Net Income per Share 1 $ millions $9.34 $7.93 $1.88 $(0.62) $(4.06) 12/31/2019 12/31/2020 12/31/2021 12/31/2022 9/30/2023 1. See appendix for non-GAAP reconciliations. 4
Slide 6: Attractive Relative Valuation
Attractive Relative Valuation 12/29/23 2023 2023 P/E Peer Comparison Share Price Adj. EPS 1 Multiple ($/sh) ($/sh) Par Pacific $36.37 $8.40 4.3x CVR $30.30 $5.64 5.4x HF Sinclair $55.57 $9.99 5.6x Delek $25.80 $4.00 6.5x Calumet $17.87 $1.18 15.1x 1. 2023 Adj. EPS based on street estimates as of 1/2
Slide 7: Refining Overview
Refining Overview Refining Segment Highlights Refinery Crude Capacity Mbpd • Focus on process safety, environmental compliance and Hawaii 94 operational reliability Washington 42 • System-wide crude capacity of 218,000 bpd Wyoming 19 • Throughput and yield optimized to serve local market needs • Exp
Slide 8: Distillate-Oriented Yield Profile
Distillate-Oriented Yield Profile Distillate Cracks ($/bbl) Advantaged Distillate Yield % 1 80.00 70.00 60.00 50.00 49% 40.00 30.00 40% 40% 40% 20.00 35% 10.00 - Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Apr-22 Apr-19 Apr-20 Apr-21 Jan-23 Apr-23 Jan-19 Jan-20 Jan-21 Jan-22 Oct-19 Oct-20 Oct-21 Oct-22 Oct-2
Slide 9: Multimodal Logistics System
Multimodal Logistics System Diverse logistics assets enable flexibility and development of integrated downstream system 8
Slide 10: Leading Retail Position in Attractive Markets
Leading Retail Position in Attractive Markets Hawaii Retail • 91 locations across four islands • 34 company-operated convenience stores • Scarcity of land, high real estate costs and logistics complexity strengthen competitive position • Dual-branded retail network to attract and retain broad custom
Slide 11: Stable Contribution from Retail and Logistics Segments
Stable Contribution from Retail and Logistics Segments Trending Retail & Logistics Adj. EBITDA ($MM) $165 - $135 $135 - $122 - $121 - - 89 76 57 74 73 76 59 65 60 47 2019 2020 2021 2022 LTM 9/30/23 Retail Logistics Targeted gross term debt of $500-600 million fully supported by the stable cash flows
Slide 12: Capital Expenditure and Turnaround Summary
Capital Expenditure and Turnaround Summary $220 - 250 $75 - 90 $113 $90 - 100 $60 - 70 $83 $50 $30 $40 $19 $39 $18 $85 - 90 $9 $55 $45 $29 $36 2020 2021 2022 2023 Guidance 2024 Guidance * Maintenance Growth Turnarounds & Catalyst Normalized Annual Location Cycle Upcoming Turnaround Outlay 1 Hawaii $
Slide 13: Energy Transition Strategy
Energy Transition Strategy Leverage local resources and policies to meet local needs Short Term Opportunities Washington Co-feed Project Hawaii SAF • Opportunity to invest a small amount of capital and co-feed low carbon • Announced $90 million investment in Hawaii renewable fuels project feedstocks
Slide 14: Consistently Improving Credit Metrics
Consistently Improving Credit Metrics LTM Consolidated Adj. EBITDA 1 $749 $ millions $643 $265 $126 $(53) $ millions 12/31/2019 12/31/2020 12/31/2021 12/31/2022 9/30/2023 Total Secured Debt $ 586 $ 683 $ 580 $ 515 $ 552 Total Unsecured Debt 49 49 - - - Total Debt 635 732 580 515 552 Cash 126 68 112
Slide 15: Company Highlights
Company Highlights 1 Growth Profile Underpinned by Successful Acquisitions 2 Completed Strategic and Accretive Acquisition of Billings Assets 3 Portfolio of Valuable Opportunities to Drive Future Growth 4 Downside Protection from Diversified Businesses 5 Federal Tax Attributes Enhance Free Cash Flow
Slide 16: Appendix
Appendix 15
Slide 17: Singapore 3.1.2 Crack Spread
Singapore 3.1.2 Crack Spread $40 $35 Singapore 3.1.2 Crack 5-Yr Average $30 5-Yr Average 1 = $13.04 $25 $20 $15 $10 $5 $0 ($5) 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 ($/bbl) Singapore 3.1.2 Crack $3.78 $4.42 $6.20 $10.49 $16.21 $36.80 $26.43 $22.84 $21.22 $13.72 $23.
Slide 18: RVO Adjusted USGC 3.2.1 Index
RVO Adjusted USGC 3.2.1 Index $45 RVO Adj. USGC 3.2.1 $40 5-Yr Average $35 5-Yr Average 1 = $16.90 $30 $25 $20 $15 $10 $5 $0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 ($/bbl) RVO Adj. USGC 3.2.1 $8.49 $10.18 $12.57 $12.77 $18.24 $42.24 $29.01 $24.30 $26.55 $21.65 $29.65
Slide 19: RVO Adjusted PNW 3.1.1.1 Index
RVO Adjusted PNW 3.1.1.1 Index $50 Pacific Northwest 3.1.1.1 $45 5-Yr Average $40 $35 5-Yr Average 1 = $21.07 $30 $25 $20 $15 $10 $5 $0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 ($/bbl) Pacific Northwest 3.1.1.1 $9.77 $13.46 $15.83 $15.76 $22.66 $47.23 $40.58 $30.11 $25
Slide 20: Corporate Structure
Corporate Structure Par Pacific Holdings Inc. NYSE: PARR Yellowstone Yellowstone Laramie Energy, Energy Limited Pipe Line LLC Partnership Company $547 MM Term 46% Interest 65% Interest 40% Interest Loan due 2030 Par Petroleum, LLC ABL Credit Facility due 2028 1 Hermes Par Rocky Par Hawaii Consolidat
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Twelve Months Ended Consolidated Adjusted EBITDA and Adjusted Net Income Reconciliation (1) ($ in thousands) 2019 2020 2021 2022 Q3 2023 Net income (loss) $ 40,809 $ (409,086) $ (81,297) $ 364,189 $ 524,037 Adjustments to Net Income (loss): Inventory valuation adjustment
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended September 30, 2023 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ 587,460 $ 64,709 $ 64,357 $ (111,019) Adjustments to operating income (loss):
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2022 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ 401,901 $ 54,049 $ 49,238 $ (67,285) Adjustments to operating income (loss): D
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2021 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ (88,799) $ 51,159 $ 81,249 $ (51,228) Adjustments to operating income (loss):
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2020 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ (331,826) $ 35,044 $ 24,211 $ (45,427) Adjustments to operating income (loss):
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2019 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ 93,781 $ 59,075 $ 49,245 $ (54,121) Adjustments to operating income (loss): De
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Diluted Adjusted Net Income per Share for the Twelve Months Ended (in thousands, except per share amounts) 2019 2020 2021 2022 Q3 2023 Adjusted Net Income (Loss) 96,311 (216,237) (36,133) $ 474,668 $ 569,364 Undistributed Adjusted Net Income allocated to participating sec
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