Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Investor Presentation (August 2016)
32 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Aug 11, 2016
Slide 1: Investor Presentation August 2016
Investor Presentation August 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, this fall; 37 retail stations will be rebranded C
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: Business Platform Overview
® par Pacific Business Platform Overview
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 Nelson comp
Slide 7: Hawaii Refinery Operating Trends
7 Hawaii Refinery Operating Trends Total Sales Volume Production 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 utiliz
Slide 8: Mid Pacific Crack Spread and Differential
8 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; three years of data shown for Mid Pacific Crack Spread and Mid Pacific Crude Differential Mid Pa
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 June 30, 2016. Hawaii Refined Product Demand(1) Hawaii Refinery Yield 2
Slide 10: Hawaii Logistics and Assets Map
10 30,000 Bbls 185,000 Bbls 138,000 Bbls 135,000 Bbls 12,000 Bbls Hawaiian 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
Slide 11: Hawaii Retail Asset Highlights
11 Hawaii Retail Asset Highlights Extensive footprint across five islands Mid Pac acquisition significantly expanded scale and operating capabilities Anticipated continued volume growth from increased retail and distribution network Several identified opportunities to enhance profitability t
Slide 12: Wyoming Refining Refinery Operations
12 Wyoming Refining Refinery Operations Crude and 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 (In Process) 4 Crude Consumed Product
Slide 13: Wyoming Crack Spread
13 Wyoming Crack Spread ____________________ (1) Company calculation based on a rolling two and a half year average. Wyoming 3-2-1 Index is calculated as follows: Rapid City Daily: Computed by taking 2 part gasoline and 1 part distillate (ULSD) as created from a barrel of West Texas Intermediate Cru
Slide 14: Wyoming Logistics
14 Wyoming Logistics Logistics Assets 140-mile crude oil pipeline gathering system providing direct access to Power 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 Cit
Slide 15: Laramie Energy 2H 2016 Plan
15 Anticipate completing majority of 58 uncompleted well inventory with an average net revenue interest of 93% per well Continue to drive cost improvements Evaluate adding one or two rig program as CIG prices approach $3.00/MMBtu 2H 2016 Plan Laramie Energy ____________________ Note: Figures m
Slide 16: Laramie Energy Asset Highlights
16 Attractive per unit development costs of $0.56 / Mcfe based on drilling and completion costs of $1MM and average EURs of 1.8 Bcfe Transformative March 2016 acquisition has led to a substantial reduction in operating costs Experienced management team with a 99% drilling success rate in the P
Slide 17: Financial Overview
® par Pacific Financial Overview
Slide 18: Par Pacific Adjusted EBITDA
18 ($ in millions) ____________________ 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 ($9) ($19) ($28) $47 $22 $31 $34 $23 $5 ($7) -40 -20 0 20 40 $60 Q1 '14 Q2 '14 Q3 '
Slide 19: Capitalization and Maturity Profile
19 Capitalization and Maturity Profile ($ in millions) Capitalization Maturity Profile ___________________ Note: 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. ($ in millio
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 $1.4 billion NOL generates potentially significant value for Par Pacific Selected Benefits Illustrative Value to Par ($ in mi
Slide 21: Par Pacific Summary
21 Par Pacific Summary Enterprise Value as of 8/3/2016 Key Statistics ____________________ (1) Represents Par Pacific’s 42.3% share of Laramie Energy. Calculated based on midpoint of 2016E production. (2) 41,178,623 shares of common stock outstanding as of August 3, 2016. Total Adjusted EBITDA inclu
Slide 22: Contact Information
22 Contact Information Par Pacific Holdings, Inc. (NYSE MKT: PARR) 800 Gessner Road, Suite 875 Houston, TX 77024 (281) 899-4800 www.parpacific.com Christine Laborde Director, Investor Relations claborde@parpacific.com (832) 916-3396
Slide 23: Appendix
® par Pacific Appendix
Slide 24: Laramie Energy Hedging Program
24 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) ($0.259) NGL Hedges
Slide 25: Estimated Reserves and PV10 Summary
25 Estimated Reserves and PV10 Summary – 100% of Laramie Energy Laramie Energy Reserves Update ____________________ Note: Par Pacific Holdings owns 42.3% of Laramie Energy, LLC (1) NGLs and Oil converted to gas based on 6:1 ratio (2) Based on NYMEX strip pricing as of June 30, 2016 held flat after f
Slide 26: Laramie Energy Acreage
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Slide 27: Capitalization Detail
27 Capitalization Detail ($ in millions) Facility Borrower Amount Outstanding (8/3/2016) Undrawn Amount Amortization Maturity Interest Rate Par Term Loan Par $56.9 - NA 7/11/2018 10.00% (12.00% PIK) Retail Term Loan Retail $102.5 - 10-Year 12/17/2022 L + 3.00% Retail Revolver Retail - $5.0 NA 12/17/
Slide 28: Non-GAAP Financial Measures: Adjusted EBITDA and Adjusted Net Income
28 Non-GAAP Financial Measures Consolidated Adjusted EBITDA and Adjusted Net Income (Loss) Reconciliation(1) (in thousands) _____________________________________________ (1) We believe Adjusted Net Income (Loss) and Adjusted EBITDA are useful supplemental financial measures that allow investors to a
Slide 29: Non-GAAP Financial Measures: Consolidated Adjusted EBITDA
29 Non-GAAP Financial Measures Consolidated Adjusted EBITDA Reconciliation (1) For the twelve months ended June 30, 2016 (in thousands) _____________________________________________ (1) Refer to description of Adjusted Net Income (Loss) and Adjusted EBITDA on the previous slide. Net income (loss) (8
Slide 30: Non-GAAP Financial Measures: Adjusted EBITDA by Segment
30 Non-GAAP Financial Measures Adjusted EBITDA by Segment Reconciliation(1) (in thousands) Refining Retail Logistics Corporate, Texadian and Other Operating income (loss) 11,513$ 25,790$ 22,068$ (66,209)$ Depreciation, depletion and amortization 9,678 6,270 3,538 2,372 Unrealized loss (gain) on deri
Slide 31: Laramie Energy Adjusted EBITDAX
31 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 32: Non-GAAP PV10 and PV-20 Disclosure
32 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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