Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (June 2020)
33 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Jun 4, 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION I MAY 2020
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 • Owner & operator of essential energy infrastructure in growing PADD IV and V markets • 208,000 bpd petroleum refining capacity • Multimodal integrated logistics network with 9 MMbbls of storage, and marine, rail and pipeline assets • 124 fuel retail locations in Hawaii and the P
Slide 4: Demonstrated Operating Improvements and Growth
Demonstrated Operating Improvements and Growth HAWAII WYOMING WASHINGTON Operating Strategy • Improved crude selection and • Increased annual throughput • Optimizes product flows between mechanical reliability • Developed rail transport capability Hawaii, Northwest Retail, and Wyoming business units
Slide 5: Financial Metrics
Financial Metrics Full Year Full Year Full Year LTM Q1 As of March 31, 2020 2017 2018 2019 1 2020 1 Adjusted EBITDA ($ millions) Share Price 2 $9.45 Refining $114 $92 $169 $123 Logistics 40 40 76 83 Enterprise Value 2 $1,078 Retail 31 46 59 61 Corporate & Other (44) (46) (44) (44) Net Debt $569 Adju
Slide 6: Integrated Downstream Network
Integrated Downstream Network Seattle WA REFINERY • Well-positioned in WA Spokane 33 growing markets MT Portland ND • Advantaged access to Billings HI REFINERIES OR inland crudes Boise ID WY REFINERY 91 Hawaii SD Dedicated shipping to Rapid City • WY handle Hawaii – West Coast movements NE Cheyenne
Slide 7: Growing Retail and Logistics Segments Balance Refining
Growing Retail and Logistics Segments Balance Refining Trending Retail & Logistics Adj. EBITDA ($MM) LTM Q1-20 Adj. EBITDA Split by Segment 23% 46% $267 million LTM Q1-20 Business Segment Contribution 1 31% Logistics Retail Refining 6 1 Excludes Corporate & Other Adjusted EBITDA of $44 million.
Slide 8: Refining Overview
Refining Overview Refining Segment Highlights Refinery Crude Capacity Mbpd • Focus on process safety, environmental Par Hawaii East 94 compliance and operational reliability Par Hawaii West 1 54 • 208,000 bpd petroleum refining capacity Washington 42 Wyoming 18 • Distillate-oriented yield profile Pa
Slide 9: Crude Sourcing
Crude Sourcing Q1-20 Inland vs. Waterborne Crude Exposure WCS and Bakken (Clearbrook) Diffs $/bbl 8% Powder River Basin $10 $5 50% Other $0 $0 Waterborne Bakken Clearbrook ($10) ($5) 24% Bakken ($20) ($10) WCS ($30) ($15) 9% ANS ($40) ($20) 9% Cold Lake ($50) ($25) Jul-16 Jul-17 Jul-18 Jul-19 Jul-20
Slide 10: Upcoming Turnaround Schedule
Upcoming Turnaround Schedule Q3-19 Q4-20 Par West Wyoming Turnaround Turnaround $10MM $17MM 6-7 year cycle 4-5 year cycle No anticipated major turnarounds 2019 2020 2021 2022 2023 2024 2025 Q3-20 Q1-21 Par East Washington Turnaround Turnaround $35MM $35MM 3-4 year cycle 3-4 year cycle Our 10 year es
Slide 11: Hawaii Performance Drivers
Hawaii Performance Drivers Hawaii Performance Drivers Hawaii Production Cost ($/bbl) $3.72 • Market recently became balanced $3.65 $3.60 • 67% distillate and LSFO yield in 2019 • Generally outperforms in over-supplied crude market $3.36 environment $3.25 • Annual performance generally back-end weigh
Slide 12: Leading Retail Position in Attractive Markets
Leading Retail Position in Attractive Markets Kauai Hawaii Retail Retail Segment Growth Oahu • 91 locations across four islands 125 124 11 Maui including “76” and Hele branded 117 $129 $127 61 locations Hawaii 7 High real estate costs, scarcity of • 93 $107 land, and logistics complexity 12 strength
Slide 13: Multimodal Logistics System
Multimodal Logistics System Western Canada 11 Kauai Seattle Oahu WA REFINERY Spokane 33 Molokai WA HI REFINERIES Bakken Maui Portland MT ND 61 Global Crude 7 Sourcing Billings OR Boise Hawaii ID PRB SD Rapid City 12 WY REFINERY WY Asset Detail (1) Hawaii Wyoming Washington Par Pacific NE Cheyenne St
Slide 14: Appendix
Appendix 13
Slide 15: Singapore 3.1.2 Crack Spread
Singapore 3.1.2 Crack Spread 5-Yr Average 1 = $10.11 ($/bbl) Singapore 3.1.2 Crack $10.02 $11.70 $10.54 $10.93 $10.49 $11.39 $10.79 $9.15 $9.39 $12.41 $12.12 $8.11 Average Brent Price $50.79 $52.17 $61.46 $67.19 $74.92 $75.93 $68.60 $63.83 $68.47 $62.03 $62.42 $50.82 Memo: Singapore 4.1.2.1 Crack $6
Slide 16: Wyoming 3.2.1 Crack Spread
Wyoming 3.2.1 Crack Spread 5-Yr Average 1 = $21.64 ($/bbl) Wyoming 3.2.1 Crack $21.47 $25.29 $23.79 $15.65 $24.99 $26.25 $23.97 $15.09 $28.89 $27.32 $28.26 $15.86 Average WTI Price $48.15 $48.20 $55.30 $62.89 $67.91 $69.43 $59.34 $54.90 $59.91 $56.44 $56.87 $45.98 1 Company calculation based on a ro
Slide 17: Pacific Northwest 5.2.2.1 Crack Spread
Pacific Northwest 5.2.2.1 Crack Spread 5-Yr Average 1 = $15.17 ($/bbl) Pacific Northwest 5.2.2.1 $15.45 $19.59 $13.55 $12.93 $16.34 $13.98 $15.88 $10.93 $17.14 $14.76 $16.58 $13.24 Average ANS Price $49.80 $52.70 $61.84 $67.66 $75.12 $75.83 $69.09 $64.15 $69.40 $63.63 $65.51 $52.27 1 Company calcula
Slide 18: Hawaii Market Fundamentals
Hawaii Market Fundamentals Pre-COVID 19 Post-COVID 19 Production & Demand 1 Petroleum Use 2 32% Air Mbbl/d Transportation 45 42 3% Commercial 40 35 35 9% Industrial 29 30 28 25 Total Production 25% Electric 20 Total Demand Power 15 27% Ground 10 Transportation 5 - Distillate Other Products 4% Marine
Slide 19: Capital Expenditure and Turnaround Summary
Capital Expenditure and Turnaround Summary MAINTENANCE / REGULATORY GROWTH TURNAROUND • Expected annual recurring base • Anticipated 2020 growth projects include: • $35MM Par East turnaround in late Q3 maintenance capital expenditures of o Washington NextGen renewable fuels • $17MM Wyoming turnaroun
Slide 20: Corporate Structure
Corporate Structure $49 MM 5% Convertible Notes due 6/15/2021 Par Pacific Holdings Inc. $44 MM L + 1.5% Term NYSE: PARR Loan due 4/1/2024 1 ABL Revolver due 12/21/2022 2 $300 MM 7.75% Senior Secured Notes due 12/15/2025 Par Petroleum, LLC $234 MM L + 6.75% Term Loan B due 1/11/2026 Hermes Laramie En
Slide 21: Trended Capital Structure
Trended Capital Structure Twelve Months Ended 12/31/2017 12/31/2018 12/31/2019 3/31/2020 Debt ($ millions) 7.75% Senior Secured Notes $300 $300 $300 $300 Term Loan B - - 241 238 Other Loans - 1 45 45 Total Secured Debt 300 301 586 583 5% Convertible Note 115 115 49 49 Total Debt 415 416 635 631 Cash
Slide 22: Non-GAAP PV10 and PV20 Disclosures
Non-GAAP PV10 and PV20 Disclosures Non-GAAP PV10 and PV20 Disclosure PV10 and PV20 are considered non-GAAP financial measures under SEC regulations because they do not include the effects of future income taxes, as is required in computing the standardized measure of discounted future net cash flows
Slide 23: Laramie Energy Reserves
Laramie Energy Reserves Year End 2019 Reserves and PV10 Summary – 100% of Laramie Energy NSAI RESERVE REPORT SEC Price Deck and Parameters Assumed Strip Pricing Gas Oil NGL Total PV10 (3) PV20 (3) Gas Price ($/MMBTU) Condensate ($/BBL) (BCF) (MMBBL) (MMBBL) (BCFE) (1) ($MM) ($MM) Average Annual Pric
Slide 24: Laramie Energy Adjusted EBITDAX
Laramie Energy Adjusted EBITDAX Laramie Energy Net Income (Loss) Reconciliation to Adjusted EBITDAX (1) ($ in thousands) Twelve Months Ended December 31, Three Months Ended March 31, 2017 2018 2019 2019 2020 Net income (loss) 30,837 6,347 (380,474) (2,983) 574 Commodity derivative loss (gains) (35,5
Slide 25: Non-GAAP Financial Measures: Adjusted EBITDA and Adjusted Net Income
Non-GAAP Financial Measures Twelve Months Ended Consolidated Adjusted EBITDA and Adjusted Net Income Reconciliation (1) ($ in thousands) 2015 2016 2017 2018 2019 Q1 2020 Net income (loss) $ (39,911) $ (45,835) $ 72,621 $ 39,427 $ 40,809 $ (242,620) Adjustments to Net Income (loss): Inventory valuati
Slide 26: Adjusted EBITDA by Segment Reconciliation: LTM Q1 2020
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended March 31, 2020 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ (89,152) $ 65,432 $ 21,072 $ (51,968) Adjustments to operating income (loss): Unr
Slide 27: Adjusted EBITDA by Segment Reconciliation: 2019
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 28: Adjusted EBITDA by Segment Reconciliation: 2018
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2018 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ 73,269 $ 33,389 $ 37,232 $ (61,949) Adjustments to operating income (loss): De
Slide 29: Adjusted EBITDA by Segment Reconciliation: 2017
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2017 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ 86,016 $ 33,993 $ 24,700 $ (50,748) Adjustments to operating income (loss): De
Slide 30: Adjusted EBITDA by Segment Reconciliation: 2016
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2016 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ (10,934) $ 21,422 $ 22,194 $ (52,331) Adjustments to operating income (loss):
Slide 31: Adjusted EBITDA by Segment Reconciliation: 2015
Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended December 31, 2015 ($ in thousands) Corporate and Refining Logistics Retail Other Operating income (loss) $ 66,756 $ 25,170 $ 27,149 $ (63,345) Adjustments to operating income (loss): De
Slide 32: Retail Segment Adjusted Gross Margin Reconciliation
Non-GAAP Financial Measures Retail Segment - Twelve Months Ended Adjusted Gross Margin Reconciliation (1) ($ in thousands) 2017 2018 2019 Q1 2020 Operating income $ 24,700 $ 37,232 $ 49,245 $ 21,072 Operating expense (excluding depreciation) 45,941 61,182 67,307 68,128 Depreciation, depletion and am
Slide 33: Diluted Adjusted Net Income per Share
Non-GAAP Financial Measures Diluted Adjusted Net Income per Share for the Twelve Months Ended (in thousands, except per share amounts) 2017 2018 2019 Q1 2020 Adjusted Net Income (Loss) $ 63,266 $ 49,339 $ 91,721 $ 55,104 Undistributed Adjusted Net Income allocated to participating securities (1) 765
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