Par Pacific Announces Proposed $550 Million Senior Secured Term Loan B Due 2030 and Fourth Quarter 2022 Operating Update
Par Pacific Announces Proposed $550 Million Senior Secured Term Loan B Due 2030 and Fourth Quarter 2022 Operating Update
Although our financial closing process and our financial statements as of and for the three months ended
| Three Months Ended | ||||||
| Preliminary financial results (1) |
|
|||||
| (in thousands of dollars, unaudited) | Low | High | ||||
| Net income (loss) | $ | 60,000 | $ | 90,000 | ||
| Inventory valuation adjustment | 10,000 | 3,250 | ||||
| RINs mark-to-market adjustments | 23,000 | 22,500 | ||||
| Unrealized loss (gain) on derivatives | 20,000 | 19,250 | ||||
| Acquisition and integration costs | 4,000 | 3,500 | ||||
| Adjusted Net Income (Loss) | $ | 117,000 | $ | 138,500 | ||
| Depreciation and amortization | 25,500 | 25,000 | ||||
| Interest expense and financing costs, net | 17,000 | 16,750 | ||||
| Income tax expense (benefit) | 500 | (250 | ) | |||
| Adjusted EBITDA | $ | 160,000 | $ | 180,000 | ||
(1) Please see “Use of Non-GAAP Information” below.
Balance sheet data |
As of | ||
| (in thousands of dollars, unaudited) | |||
| Cash and cash equivalents |
|
||
| Total liquidity | 581,000 | ||
| Principal amount of debt | 515,000 | ||
| Net debt | 25,000 | ||
| Feedstocks throughput | Three Months Ended | |
| (in thousands of barrels per day) | ||
|
|
81 | |
|
|
40 | |
|
|
16 | |
This news release does not constitute a notice of redemption under the provisions of the indentures governing the notes, nor does it constitute an offer to sell, or a solicitation of an offer to buy, any security, or repay any loans. No offer, solicitation or sale will be made in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
About
Forward-Looking Statements
This news release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about
Note About Preliminary Results
The financial and operational information presented in this news release is preliminary and may change. Our financial closing procedures with respect to the estimated financial and operational information provided in this news release are not yet complete. As a result, our final results may vary materially from the preliminary results included in this news release. We undertake no obligation to update or supplement the information provided in this news release until we release our financial statements for the three months and year ended
Use of Non-GAAP Information
Management uses certain financial measures to evaluate our operating performance that are considered non-GAAP financial measures. These measures should not be considered in isolation or as substitutes or alternatives to their most directly comparable GAAP financial measures or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies since each company may define these terms differently. We believe Adjusted Net Income (Loss) and Adjusted EBITDA (as defined below) are useful supplemental financial measures that allow investors to assess the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis, the ability of our assets to generate cash to pay interest on our indebtedness, and our operating performance and return on invested capital as compared to other companies without regard to financing methods and capital structure.
Adjusted Net Income (Loss) is defined as Net income (loss) excluding:
- inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, contango (gains) and backwardation losses associated with our Washington inventory and intermediation obligation, and purchase price allocation adjustments);
- the LIFO layer liquidation impacts associated with our Washington inventory;
- RINs mark-to-market adjustments (which represents the income statement effect of reflecting our RINs liability on a net basis; this adjustment also includes the mark-to-market losses (gains) associated with our net RINs liability);
- unrealized (gain) loss on derivatives;
- acquisition and integration costs;
- debt extinguishment and commitment costs;
- increase in (release of) tax valuation allowance and other deferred tax items;
- changes in the value of contingent consideration and common stock warrants;
- severance costs;
- (gain) loss on sale of assets;
- impairment expense;
- impairment expense associated with our investment in Laramie Energy and our share of Laramie Energy’s asset impairment losses in excess of our basis difference; and
- Par’s share of Laramie Energy’s unrealized loss (gain) on derivatives.
Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding:
- interest expense and financing costs;
- equity losses (earnings) from Laramie Energy excluding Par’s share of unrealized loss (gain) on derivatives, impairment of Par’s investment, and our share of Laramie Energy’s asset impairment losses in excess of our basis difference; and
- income tax expense (benefit).
For more information contact:
Ashimi Patel
Director, Investor Relations
(832) 916-3355
[email protected]
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