Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (November 2016)
36 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Nov 3, 2016
Slide 1: Investor Presentation November 2016
Investor Presentation November 2016
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 distributed through 91 locations across Hawaii Exclusive provider of 76 and 7-Eleven branded outlets in Hawaii Launching Hele, a new local brand; 37 retail stations will be rebranded Competitive
Slide 4: Growth Opportunity Framework
4 Growth Opportunity Framework Tier 1 • Refining • Marketing • Midstream & downstream logistics Tier 2 • E&P with Laramie tie-in • Upstream logistics • Gathering systems • Gas processing • Chemical / process businesses Tier 3 • E&P without Laramie tie-in • Oilfield services • Power generation • Non-
Slide 5: Refining Segment
® Par Pacific Refining Segment
Slide 6: Hawaii Refinery Asset Highlights
6 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 7: Hawaii Refinery Operating Trends
7 Hawaii Refinery Operating Trends Total Sales VolumeProduction 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 utilizat
Slide 8: Mid Pacific Crack Spread and Differential
8 -2 0 2 4 6 8 10 $12 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 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
Slide 9: Leader in Niche Hawaiian Market
9 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. (3) Year to date through September 30, 2016. Hawaii Refined Product Demand(1) Hawaii Refinery Yi
Slide 10: Wyoming Refinery
10 Wyoming Refinery Refinery Operations 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 Refinery located in Newcastle, Wyoming Com
Slide 11: Wyoming Crack Spread
11 $4 $9 $14 $19 $24 $29 $34 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Wyoming Crack Spread ____________________ (1) Company calculation based on a rolling two years and nine month average. Wyoming 3-2-1 Index is calculated as follows: Rapid City Daily: Computed by taking 2 part gasolin
Slide 12: Logistics Segment
® Par Pacific Logistics Segment
Slide 13: Hawaii Logistics
13 30,000 Bbls 185,000 Bbls 138,000 Bbls 135,000 Bbls 12,000 Bbls Hawaiian Assets MapAsset Highlights Hawaii Logistics Integrated system enhances flexibility and profitability Difficult to replicate asset base Multiple advantages from single point mooring Increased safety and flexibility E
Slide 14: Wyoming Logistics
14 Wyoming Logistics Logistics Assets 140-mile crude oil pipeline gathering system providing direct access to Powder River Basin crude Directly connected to the Butte pipeline, allowing for Bakken crude access 40-mile products pipeline feeds into the Magellan Products Line en route to Rapid Ci
Slide 15: Retail Segment
® Par Pacific Retail Segment
Slide 16: Retail Asset Highlights
16 Retail Asset Highlights Extensive footprint across five islands in Hawaii Mid Pac acquisition significantly expanded scale and operating capabilities Anticipated continued volume growth from increased retail and distribution network Several identified opportunities to enhance profitabilit
Slide 17: Laramie Energy
® Par Pacific Laramie Energy
Slide 18: Laramie Energy Asset Highlights
18 Further reduced drilling and completion costs by $0.1MM to $0.9MM per well Per unit development costs of $0.50 / Mcfe based on drilling and completion costs of approximately $0.9MM and average EURs over 1.8 Bcfe March 2016 acquisition led to a substantial reduction in operating costs Expe
Slide 19: Laramie Energy Development Activity
19 Anticipate completing majority of 41 uncompleted well inventory with an average net revenue interest of 93% per well Continue to drive cost improvements One rig program commencing in fourth quarter Evaluate adding additional rigs during 1Q 2017 Development Activity Laramie Energy ________
Slide 20: Financial Overview
® Par Pacific Financial Overview
Slide 21: Par Pacific Adjusted EBITDA
21 ____________________ Note: Adjusted EBITDA is a non-GAAP financial measure. See the Appendix for a reconciliation to the most directly comparable GAAP financial measure. Par Pacific Adjusted EBITDA
Slide 22: Capitalization Profile
22 Capitalization Profile ___________________ (1) Deferred financing costs were previously reported as an asset. However, beginning in 2015 we reported deferred financing costs as a reduction of debt due to a change in GAAP. No material maturities until 2018 1 As of ($ in millions) 10/28/2016 Cash &
Slide 23: Net Operating Loss Carryforward
23 Net Operating Loss Carryforward Differentiated Asset Relative to Peers Potential to Enhance Cash Flow with Growth Provides a Competitive Advantage for Growth Opportunities $1.4 billion NOL generates potentially significant value for Par Pacific Selected Benefits Illustrative Value to Par ($ in mi
Slide 24: Par Pacific Summary
24 Par Pacific Summary Enterprise Value (2)Key Statistics ____________________ (1) Represents Par Pacific’s 42.3% share of Laramie Energy. Calculated based on midpoint of 2016E production. (2) Closing stock price and 45,506,173 shares of common stock outstanding as of October 28, 2016. Debt & cash a
Slide 25: Appendix
® Par Pacific Appendix
Slide 26: Laramie Energy Hedging Program
26 Laramie Energy Hedging Program 2H 2016 2017 2018 NYMEX Fixed Price Swap Hedged Volume (Mcf/day) 92,169 83,240 75,072 Average Floor Price ($/Mcf) $2.605 $2.605 $2.605 CIG Basis Swap Volume Hedged (Mcf/day) 92,169 83,240 75,072 Average CIG Differential to NYMEX ($0.272) ($0.267) ($0.259) NGL Hedges
Slide 27: Estimated Reserves and PV10 Summary
27 Estimated Reserves and PV10 Summary – 100% of Laramie Energy Laramie Energy Reserves Update ____________________ Note: Par Pacific Holdings owns 42.3% of Laramie Energy, LLC (1) NGLs and Oil converted to gas based on 6:1 ratio (2) Based on NYMEX strip pricing as of June 30, 2016 held flat after f
Slide 28: Laramie Energy Acreage Map
28 MESA RIO BLANCOI I I GARFIELDIII Collbranll rollb anllll rro lb anlo lb an De Beque e eque e eque e eque SiltiltilililttilililRiflei lfi lei li lffi lei li le New Castle lte as le l ltte as le le as le Battlement Mesal tt ta le en esal l tt ttt ta le en esal a le en esa Palisadelialisadelilialisa
Slide 29: Capitalization Detail
29 Capitalization Detail ($ in millions) Facility Borrower Principal Amount Outstanding (10/28/2016) Undrawn Amount Amortization Maturity Interest Rate Term Loan Par $58.6 - NA 7/11/2018 10.00% (12.00% PIK) Hawaii Retail Credit Facilities Retail $99.7 - 10-Year 12/17/2022 L + 3.00% Retail Revolver R
Slide 30: Maturity Profile
30 Maturity Profile ($ in millions)
Slide 31: Annual Gross Margin Impact of RIN Price Change
31 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 $0.1/g
Slide 32: Non-GAAP Financial Measures: Adjusted EBITDA and Adjusted Net Income
32 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation(1) (in thousands) _____________________________________________ (1) We believe Adjusted Net Income (Loss) and Adjusted EBITDA are useful supplemental financial measures that allow investors to a
Slide 33: Consolidated Adjusted EBITDA Reconciliation
33 Non-GAAP Financial Measures Consolidated Adjusted EBITDA Reconciliation (1) For the twelve months ended September 30, 2016 (in thousands) _____________________________________________ (1) Refer to description of Adjusted Net Income (Loss) and Adjusted EBITDA on the previous slide. Net loss (126,3
Slide 34: Adjusted EBITDA by Segment Reconciliation
34 Non-GAAP Financial Measures Adjusted EBITDA by Segment Reconciliation(1) (in thousands) Refining Retail Logistics Corporate, Texadian and Other Operating income (loss) (41,656)$ 22,835$ 18,552$ (54,658)$ Depreciation, depletion and amortization 13,715 6,676 3,966 2,548 Unrealized loss (gain) on d
Slide 35: Laramie Energy Adjusted EBITDAX
35 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 36: Non-GAAP PV10 and PV-20 Disclosure
36 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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