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JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation

Par Petroleum Corporation · Jul 9, 2015 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 1
    July 2015
  2. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 2
    Todays Presenters Presenter Joseph Israel Chris Micklas Chief Executive Officer Chief Financial Officer Years Experience: 20 Years Experience: 25 Previous Positions: Previous Positions: Hunt Refining SVP BG Group Finance…
  3. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 3
    I. Company Overview
  4. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 4
    Who We Are Largest and Most Complex(1) Refiner in Niche Hawaii Market Crude capacity of 94,000 barrels per day Integrated Refiner and Marketer 50% distillate yield configuration Flexibility to utilize a wide range of crude…
  5. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 5
    Company Timeline 9/1/2012: 6/17/2013: 11/14/2013: 7/22/2014: 2/20/2015: 5/15/2015: Delta Petroleum Agreed to HIE Retail entered Moved from Texadian HIE Retail emerged from purchase Kapolei into a credit OTCQB amendment of amendment to…
  6. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 6
    Achievements and Initiatives 2014 Achievements 2015 / 2016 Achievements & Initiatives Substantially Enhanced Organizational Depth and Executed Strategic and Financial Transactions Operating Capabilities Closed Mid-Pac acquisition and…
  7. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 7
    Investment Highlights Largest and most complex(1) refinery in Hawaii, weighted to distillate production High Quality Substantial distribution platform consisting of 128 serviced locations across Hawaii Asset Base in Niche Market…
  8. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 8
    Experienced Management Team and Board of Directors Management Team Years Name Position Age Experience Background Joseph Israel President, CEO & Director 44 20 SVP at Hunt Refining; COO at Alon USA Chris Micklas CFO 47 25 Finance…
  9. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 9
    II. Asset Overview
  10. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 10
    Hawaii Refinery Overview Asset Highlights Largest and most complex refinery in Hawaii Nelson complexity of 5.7 High-margin distillate yield configured for island demand Asset location and configuration well positioned to benefit…
  11. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 11
    Logistics System Overview Asset Highlights Hawaiian Assets Map (1) Integrated system enhances flexibility and profitability 30,000 Bbls North America Complementary, difficult to replicate asset base Multiple advantages from Single…
  12. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 12
    Distribution Network Overview Asset Highlights Extensive footprint across five islands Mid Pac acquisition significantly expands scale and operating capabilities Anticipated continued volume growth from increasing retail and…
  13. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 13
    Ongoing Refinery Optimization Opportunities On-Island Sales Volume Total Sales Volume Throughput Volume (MBbl/d) (MBbl/d) (MBbl/d) 85 85 82 85 75 72 70 71 70 70 70 67 68 70 67 66 60 57 56 55 52 55 50 55 40 40 40 Q1 '14 Q2…
  14. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 14
    Piceance Energy Investment Overview Asset Highlights Asset Map(2) Operated by Laramie Energy II, which has drilled over 300 wells in the basin with a 99% success rate Significant recent operating and service cost reductions Company…
  15. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 15
    III. Key Market Trends
  16. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 16
    Well Positioned to Benefit from Commodity Flows Waterborne Access Mid-Pacific Trends Located at the crossroads of changing crude flows Increased supply of cost advantaged crude leads to from West to East sustainable competitive…
  17. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 17
    Historical Crack Spread and Differential Mid Pacific Crude Blend 4-1-2-1 Mid Pacific Crack Spread 80% Singapore, 20% San Francisco 12 Combined Mid Cycle(1) 10 8.43 8 6 4 Crude Differential(2) 2 0.49 0 -2 (3) 3Q13…
  18. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 18
    Leader in Niche Hawaiian Market Refined Product Demand(1) Par Refinery Yield MBbl/d 2014 Q1 2015 80 Production Capacity 70 72 Heavy 64 60 59 Heavy Fuel Oils Fuel Oils & Other 56 22% 47 & Other Distillates 48 38% 38% 40…
  19. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 19
    Substantial Growth Opportunities Increase throughput to generate economies of scale Refining Develop asphalt business to enhance scale and operating efficiency Optimize light end yield Enhance utilization from higher refinery…
  20. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 20
    IV. Financial Overview
  21. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 21
    Financial Strategy Target capital structure driven by market outlook and cash flow profile Conservative Capital Flexible CapitalStructure Minimal near-term maturities enhances flexibility Structure Low debt service requirement…
  22. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 22
    Capitalization and Maturity Profile Pro Forma Capitalization Maturity Profile(4) As of Q2 Pro Forma ( in millions) ( in millions) 3/31/2015 Adjustments(1) 3/31/2015 150 135 Cash & Cash Equivalents 124 (55) 69 Debt: Par Term Loan 90…
  23. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 23
    Summary Financial Results Production Cost per Barrel(1) Adjusted EBITDA ( / bbl) ( in millions) 6.00 5.47 60 47 4.53 4.63 40 4.50 4.08 4.12 22 20 3.00 0 1.50 (9) -20 (19) (29) 0.00 -40 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1…
  24. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 24
    Capital Expenditure Summary ( in millions) Sustaining Capital Expenditures Growth Capital Expenditures 30-35 20-25 30-31 10-15 9 6-7 6 2-3 2014 ____________________ 2015E(1) 2016E(2) 2017E 2014(3) 2015E(4)…
  25. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 25
    Net Operating Loss Carryforward Selected Benefits Illustrative Value to Par(1) ( in millions) Differentiated Asset Relative Discount Rate to Refining Peers 8.0% 10.0% 12.0% Annual Pre-Tax Earnings Potential to Generate…
  26. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 26
    V. Concluding Remarks
  27. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 27
    Track Record of Execution Increased volume of Acquired on-island sales Mid Pac Petroleum Closed multiple financing Transitioned company to transactions profitability Entered into favorable Enhanced organizational…
  28. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 28
    Investment Highlights High Quality Asset Base in Niche Market Constructive Identified Market Growth Environment Opportunities Experienced Significant Management Financial Team and Board Flexibility 29
  29. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 29
    Contact Information Par Petroleum Corporation Christine Thorp (NYSE MKT: PARR) Director, Investor Relations One Memorial Plaza (832) 916-3396 800 Gessner Road, Suite 875 Houston, TX 77024 (281) 899-4800 www.ppetrol.com 30
  30. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 30
    Appendix
  31. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 31
    Mid Pac Acquisition Asset Overview Financing Detail Serves 85 outlets across four islands Total purchase price 107MM plus 10MM working Exclusive right to 76 fuel brand for Hawaii through capital (1) 2024 Four refined product…
  32. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 32
    Safety Record HIE Recordable Injuries (12 month avg.) Recordables TRIR 5 2.00 1.58 1.61 4 1.44 1.39 1.50 1.30 1.32 1.31 1.30 1.27 1.16 1.15 3 1.12 1.11 1.10 1.10 0.92 0.92 1.00 2 0.50 1 0 0.00 14-Jan…
  33. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 33
    Capitalization Detail Amount Outstanding Facility Borrower (PF 3/31/2015) Undrawn Amount Amortization Maturity Interest Rate (1) Par Term Loan Par 90.3 NA NA 7/11/2018 10.00% (12.00% PIK) HIE ABL HIE 0.0 125.0 NA 9/25/2017 L +…
  34. JULY 2015 CORPORATE PRESENTATION – Par Petroleum Corporation – slide 34
    Non-GAAP Financials Adjusted EBITDA and Cash Flow Reconciliation ( in thousands) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Net income (loss) (14,568) (24,700) (39,456) 31,660 462 Adjustments to Net income: Unrealized (loss) gain on…

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