Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (November 2017)
34 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Nov 9, 2017
Slide 1: Investor Presentation November 2017
Investor Presentation November 2017
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 91 locations across Hawaii Exclusive provider of 76 branded outlets in Hawaii Launched Hele, a local brand, with 39 stores rebranded to date Competitive Natural Gas Producer – La
Slide 4: Corporate Strategy
4 Corporate Strategy Build Existing Businesses > Bolt-on acquisitions > Selective capital projects > Continuous business improvement Acquire Similar Businesses > Energy and infrastructure businesses Maintain Diverse Earnings Profile > Decrease commodity price volatility > Enhanced credit profile Lev
Slide 5: Financial Summary
5 Financial Summary Enterprise Value (4) (1) See Appendix for Non-GAAP reconciliation. (2) Free Cash Flow is defined as cash provided by (used in) operations minus capital expenditures. See Appendix for Non-GAAP reconciliation. (3) Net debt to total capitalization is defined as (i) principal amount
Slide 6: Business Segment Profile
6 Business Segment Profile ____________________ (1) Percentage of total segment Adjusted EBITDA excluding corporate and other. (2) Represents Par Pacific’s 42.3% share of Laramie Energy. Diversified downstream businesses Large unrestricted tax asset of $1.6 billion E&P diversification with 42.3% own
Slide 7: Hawaii Refinery Asset Highlights
7 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 8: Hawaii Business Strategy
8 Mid Pac acquisition increased on-island sales Improved mechanical reliability Hawaii Business Strategy 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 As of 3Q 2017 74,000 BPD throughput 64,000 BP
Slide 9: Wyoming Refinery
9 Wyoming Refinery Refinery Operations YTD 2017 Yield Profile 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 18,000 bpd refinery in Newcastle, Wyomin
Slide 10: Wyoming Business Strategy
10 Increased sales contracts Wyoming Business Strategy At Acquisition – July 2016 15,000 BPD throughput 41% distillate yield 2019 Goals Expanded commercial market Increased throughput 54+% distillate yield Added planning and economic group Upgrade diesel hydrotreater to increase distillate Out of ma
Slide 11: Logistics Segment
® par Pacific Logistics Segment
Slide 12: Hawaii Logistics
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 November 6, 2017. 140-mile crude oil pipeline gathering system providing direct access to Powder River Basin crude 40-mile produ
Slide 14: Retail Segment
® par Pacific Retail Segment
Slide 15: Retail Highlights
15 Retail Highlights Extensive footprint across five islands in Hawaii Non-fuel sales up 4.5% on a same store, year- over-year basis during the third quarter of 2017 New store opening in 2018 Attractive fee owned real estate portfolio Retail Network High real estate cost, scarcity of land, a
Slide 16: Laramie Energy
® par Pacific Laramie Energy
Slide 17: Laramie Energy Asset Highlights
17 Asset Highlights Laramie Energy ____________________ (1) Figures for 100% of Laramie Energy based upon 2017 and 2018 two rig staggered capital plan. (2) 2016 unit costs were $1.72/Mcfe. 6,500+ Mesa Verde drilling locations over 150,000 net acres, 81% held by production More than 75% of existi
Slide 18: Appendix
® par Pacific Appendix
Slide 19: Hawaii Market Fundamentals
19 Hawaii Market Fundamentals Hawaii Air Travel(3) ____________________ (1) Source: Department of Business, Economic Development and Tourism (“DBEDT”) as of May 2017; EIA data as of May 2017, including military demand per Par Pacific internal estimates. (2) Source: U.S. Department of Transportation
Slide 20: Mid Pacific Crack Spread and Crude Differential
20 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 21: Wyoming Crack Spread
21 Wyoming Crack Spread ____________________ (1) Company calculation based on a rolling three year, nine month 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
Slide 22: RIN Price Sensitivity
22 RIN Price Sensitivity Source: 2016 Barclay's U.S. Independent Refiners RIN Report & Company data ____________________
Slide 23: Capital Expenditures
23 Capital Expenditures Note: 2016 excludes the Hawaii turnaround, maintenance includes $6MM associated with completion of Wyoming Benzout project, contribution from Wyoming July 15, 2016 to December 31, 2016. ____________________
Slide 24: Corporate Structure
24 Corporate Structure Par Pacific Holdings, Inc. $210MM Revolver $149MM drawn $115.0 MM 5.00% Convertible Senior Notes due 6/15/2021 Laramie Energy, LLC (42.3% ownership)(1) (1) Recourse limited to pledge of equity interest of Par Piceance Energy Equity, LLC Par Piceance Energy Equity, LLC Par Wyom
Slide 25: Laramie Energy Hedging Program
25 Laramie Energy Hedging Program Q4 2017 FY 2018 NYMEX Fixed Price Swap Hedged Volume (MMBtu/day) 90,550 85,090 Average Floor Price ($/MMBtu) $2.65 $2.67 NYMEX Collar Hedged Volume (MMBtu/day) 7,500 7,500 Collar ($/MMBtu) $2.92 - $3.25 $2.92 - $3.25 CIG Basis Swap Hedged Volume (MMBtu/day) 80,550 7
Slide 26: Year End Reserves and PV10 Summary – Laramie Energy
26 Year End Reserves and PV10 Summary – 100% of Laramie Energy Laramie Energy Reserves ____________________ Note: Par Pacific Holdings owns 42.3% of Laramie Energy, LLC Reserves information based on audit by Netherland Sewell & Associates unless otherwise noted (1) NGLs and Oil converted to gas base
Slide 27: Laramie Key Statistics
27 Laramie Key Statistics ____________________ (1) Laramie Debt is non-recourse to Par Pacific and solely guaranteed by a Par Pacific subsidiary that owns Laramie Energy units. (2) Preferred stock balance based on current Liquidation Preference amount. (3) Based on two rig staggered capital plan. (4
Slide 28: Laramie Energy Acreage
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Slide 29: Laramie Energy Adjusted EBITDAX
29 Laramie Energy Adjusted EBITDAX 2017 2016 Net income (loss) (1,838) 5,056 Commodity derivative (gains)/losses (945) (11,743) Losses on settled derivative instruments (1,413) (924) Interest expense 1,812 1,138 Non-cash preferred dividend 1,065 946 Depreciation, depletion, amortization, and accreti
Slide 30: Non-GAAP PV10 and PV20 Disclosure
30 Non-GAAP PV10 and PV20 Disclosure Non-GAAP PV10 and PV20 Disclosure PV10 and PV20 are considered non-GAAP financial measures under SEC regulations because they do not include the effects of future income taxes, as is required in computing the standardized measure of discounted future net cash flo
Slide 31: Consolidated Adjusted EBITDA and Adjusted Net Income Reconciliation
31 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation (1) ($ in thousands, except per share data) _____________________________________________ (1) We believe Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted Net Income (Loss) per diluted s
Slide 32: Consolidated Adjusted EBITDA and Adjusted Net Income Reconciliation (LTM)
32 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation (1) For the twelve months ended September 30, 2017 ($ in thousands, except per share data) _____________________________________________ (1) Refer to description of Adjusted Net Income (Loss), A
Slide 33: Consolidated Adjusted EBITDA by Segment Reconciliation
33 Non-GAAP Financial Measures Consolidated Adjusted EBITDA by Segment Reconciliation (1) For the twelve months ended September 30, 2017 ($ in thousands) Refining Logistics Retail Corporate, Texadian and Other Operating income (loss) $ 89,817 $ 35,651 $ 25,651 $ (49,710 ) Adjustments to operating in
Slide 34: Free Cash Flow
34 Non-GAAP Financial Measures Free Cash Flow (1) ($ in thousands) 2016 2017 Q2 Q3 Q4 Q1 Q2 Q3 Cash provided by (used in) operations $ (40,835 ) $ (12,442 ) $ 17,357 $ 24,995 $ 37,202 $ 43,259 Less: Capital Expenditures 7,215 7,585 5,557 7,579 4,198 8,111 Free Cash Flow $ (48,050 ) $ (20,027 ) $ 11,
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