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Par Petroleum Third Quarter 2014 Results

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Par Petroleum Corporation has reported a third quarter and nine month 2014 net loss of $39.5 million and $78.7 million and negative Adjusted EBITDA of $29.0 million and $56.7 million, respectively.

William Monteleone, Chief Executive Officer said: "During the quarter, we continued our transition efforts and were successful in contracting additional on-island sales, from which we expect to benefit beginning in the fourth quarter of 2014, and to a larger extent, in 2015. We saw steady improvements in market conditions during the quarter; however, our overall results were negatively impacted by higher feedstock costs and higher operating costs largely due to planned and unplanned maintenance.

We are continuing to work through the regulatory process to close the Mid Pac acquisition and expect that the transaction will close in late 2014 or early 2015. Additionally, due to Piceance Energy’s strong operating cash flow, we will likely defer the previously announced capital contribution by Par of approximately $3.3 million until the first or second quarter of 2015."

The company will hold a conference call with investors on Wednesday, November 12, 2014 at 9:00 AM CT, which will include a discussion of the market information included as slides in Attachment 3. See dial-in information below.

Third Quarter 2014 and Nine Months 2014

The company reported a consolidated net loss of $39.5 million and negative Adjusted EBITDA of $29.0 million for the third quarter 2014. Significant non-cash items or acquisition and integration costs included in the third quarter results relate to the following:

• $3.9 million of acquisition and integration costs related to the HIE and the Mid Pac acquisitions;
• $2.4 million in gains related to the change in the fair value of common stock warrants; and
• $1.0 million in gains related to a change in the value of contingent consideration related to the HIE acquisition.

The company reported a consolidated net loss of $78.7 million and negative Adjusted EBITDA of $56.7 million for nine months 2014. Significant non-cash items or acquisition and integration costs included in the nine months results relate to the following:

• $9.1 million of acquisition and integration costs related to the HIE and Mid Pac acquisitions;
• $4.1 million in gains related to a change in the fair value of our common stock warrants; and
• $5.8 million in gains related to a change in the value of contingent consideration related to the HIE acquisition.