Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (December 2015)
29 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Dec 9, 2015
Slide 1: Investor Presentation December 2015
Investor Presentation December 2015
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: Company Overview
® Par Pacific Company Overview
Slide 4: Largest and Most Complex Refiner in Niche Hawaii Market
4 Largest and Most Complex(1) Refiner in Niche Hawaii Market Crude capacity of 94,000 barrels per day 50% distillate yield configuration Flexibility to utilize a wide range of crude blends Our Business Platforms Integrated Network of Logistics Assets 5.4 million barrels of storage capacity w
Slide 5: Company Timeline
5 9/25/2013: Restart of Kapolei Refinery. Renamed Hawaii Independent Energy 9/1/2012: Delta Petroleum emerged from Chapter 11. Company is renamed Par Petroleum Piceance Energy dba Laramie Energy joint venture initiated Company Timeline 2012 Emerging as Par 2013 Building the Foundation 2014 Tra
Slide 6: Growth Opportunity Framework
6 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 w/o Laramie tie-in • Oilfield services • Power generation • Non-oil
Slide 7: Business Platform Overview
® Par Pacific Business Platform Overview
Slide 8: Hawaii Refinery Overview
8 North America Latin America Africa Asia Middle East 30% 47% 3% 10% 10% 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 Overv
Slide 9: Logistics System Overview
9 30,000 Bbls 185,000 Bbls 138,000 Bbls 135,000 Bbls 12,000 Bbls Hawaiian Assets MapAsset Highlights Logistics System Overview Integrated system enhances flexibility and profitability Difficult to replicate asset base Multiple advantages from Single Point Mooring: Additional uptime from wind
Slide 10: Retail Network Overview
10 $26,041 $28,913 24,000 25,000 26,000 27,000 28,000 29,000 30,000 Sep YTD 2014 Sep YTD 2015 36,687 37,631 36,000 36,500 37,000 37,500 38,000 Sep YTD 2014 Sep YTD 2015 Same Store Growth (Sep YTD 2014 vs. Sep YTD 2015)(1) Retail Network Overview Asset Highlights Extensive footprint across five isl
Slide 11: Ongoing Refinery Optimization Opportunities
11 Ongoing Refinery Optimization Opportunities Opportunity to meaningfully increase system volumes and enhance profitability Total Sales VolumeOn-Island Sales Volume Throughput Volume On-island demand is the primary constraint for refinery utilization Enhancing on-island sales improves margin fr
Slide 12: Well Positioned to Benefit from Commodity Flows
12 Well Positioned to Benefit from Commodity Flows Crude slate and sourcing flexibility provide a competitive advantage Located at the crossroads of changing crude flows from West to East Crude sourcing network provides ability to change crude slate based on regional differentials ______________
Slide 13: Historical Crack Spread and Differential
13 -2 0 2 4 6 8 10 $12 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Historical Crack Spread and Differential Mid Pacific Crude Blend 4-1-2-1 Mid Pacific Crack Spread 80% Singapore, 20% San Francisco ____________________ (1) Company calculation based on a rolling three-year average for the 4-1-2-1 Mi
Slide 14: Leader in Niche Hawaiian Market
14 Leader in Niche Hawaiian Market Air Travel(2) ____________________ (1) Source: DBEDT; EIA, including military demand per Par Pacific estimates, assuming Par Pacific throughput at 75MBD. (2) Source: Number of visitors per DBEDT. Refined Product Demand(1) Par Refinery Yield Sep YTD 20152014 Shortag
Slide 15: Laramie Energy Overview
15 -20% 0% 20% 40% 60% 80% 100% (500) - 500 1,000 1,500 2,000 2,500 $2.0 0 $2 .5 0 $3.0 0 $3.5 0 $4.0 0 $4.5 0 $5.0 0 IRO R NPV ($ M ) CIG Gas Price ($/MMBtu) 28-10 Pad 100%WI 92.97%NRI NPV10 ($M/Well) ROR Experienced management team that has drilled over 300 wells in the basin with a 99% success
Slide 16: Laramie Energy 2016 Development Program
16 ($ in millions) Drilling & Completion (D&C) Capital Trends Historical D&C AFE (2010 - 2015) March 2015 D&C AFE (4) September 2015 D&C AFE Pre-Water Facility Post-Water Facility High-End Low-End High-End Low-End Drill & Case $0.75 $0.75 $0.54 $0.45 $0.53 $0.48 Complete 1.05 0.85 0.76 0.76 0.69 0.6
Slide 17: Financial Overview
® Par Pacific Financial Overview
Slide 18: Summary Financial Results
18 Adjusted EBITDA Net Debt Production Cost per Barrel(1) ($ in millions) ($ in millions) ____________________ Note: Adjusted EBITDA and Cash Flow are non-GAAP financial measures. (1) Production costs before DD&A expense per barrel is calculated by dividing all direct production costs by total refin
Slide 19: Capitalization and Maturity Profile
19 Capitalization and Maturity Profile ($ in millions) Capitalization Maturity Profile $39 $55 $2 $8 $8 $8 $100 0 50 100 150 2015 2016 2017 2018 2019 2020 Thereafter Par Term Loan HIE Retail Term Loan Mid Pac Term Loan Texadian Trade Credit (undrawn) Mid Pac Revolver (undrawn) $68 $148 $31 $5 $48 As
Slide 20: Net Operating Loss Carryforward
20 Net Operating Loss Carryforward Differentiated Asset Relative to Peers Potential to Enhance Cash Flow with Growth Provides a Competitive Advantage for Growth Opportunities $1.4 billion NOL generates potentially significant value for Par Selected Benefits Illustrative Value to Par ($ in millions)
Slide 21: Par Pacific Summary
21 Par Pacific Summary Refining – Largest & most complex refinery in Hawaii with distillate focused yield Distribution – Integrated and difficult to replicate asset base, resulting in stable consistent value Retail – Competitive position within a strong niche market, delivering robust on-islan
Slide 22: Flexible Capital Structure and Financial Strategy
22 • Flexible Capital Structure • Conservative Access to Liquidity • Profitability Throughout Cycles • Utilize Capital Markets Opportunistically Conservative Capital Structure Minimal near-term maturities enhances flexibility Low financial leverage positions Par Pacific for future growth opportu
Slide 23: Summary
23 Constructive Market Environment Experienced Management Team and Board Significant Financial Flexibility Identified Growth Opportunities High Quality Asset Base in Niche Market Summary
Slide 24: Contact Information
24 Contact Information Par Pacific Holdings, Inc. (NYSE MKT: PARR) 800 Gessner Road, Suite 875 Houston, TX 77024 (281) 899-4800 www.parpacific.com Christine Thorp Director, Investor Relations cthorp@parpacific.com (832) 916-3396
Slide 25: Appendix
® Par Pacific Appendix
Slide 26: Laramie Energy Asset Overview
26 Laramie Energy Asset Overview ____________________ Source: Drilling Info. (2)
Slide 27: Capitalization Detail
27 Facility Borrower Amount Outstanding (9/30/2015) Undrawn Amount Amortization Maturity Interest Rate Term Loan (1) Par $93.9 NA NA 7/11/2018 10.00% (12.00% PIK) HIE Retail Term Loan Retail 27.9 NA 7-Year 3/31/2022 L + 2.00% Texadian Credit Texadian 0.0 100.0 NA 2/19/2016 L + 2.75% Mid Pac Term Loa
Slide 28: Non-GAAP Financials: Adjusted EBITDA and Free Cash Flow Reconciliation
28 Non-GAAP Financials Adjusted EBITDA and Free Cash Flow Reconciliation (1) (in thousands) (1) (1) We believe the non-GAAP financial metrics used herein, including Adjusted EBITDA and free cash flow, are useful supplemental financial measures to assess, among other things: the financial performance
Slide 29: Non-GAAP Financials: Adjusted EBITDA Reconciliation
29 Non-GAAP Financials Adjusted EBITDA Reconciliation (1) We do not forecast certain amounts that are driven by changes in market prices, such as gains (losses on derivatives and Inventory valuation estimates). (2) We have reconciled Adjusted EBITDA to Operating income for the LTM October 2015 and F
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