ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-1060803 |
(State or other jurisdiction of | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
800 Gessner Road, Suite 875 | |
Houston, Texas | 77024 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ý | |
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
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Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 46,212 | $ | 47,772 | |||
Restricted cash | 1,245 | 1,246 | |||||
Trade accounts receivable | 96,214 | 102,384 | |||||
Inventories | 293,069 | 198,326 | |||||
Prepaid and other current assets | 24,646 | 53,380 | |||||
Total current assets | 461,386 | 403,108 | |||||
Property and equipment | |||||||
Property, plant and equipment | 504,453 | 499,867 | |||||
Proved oil and gas properties, at cost, successful efforts method of accounting | 1,122 | 1,122 | |||||
Total property and equipment | 505,575 | 500,989 | |||||
Less accumulated depreciation and depletion | (57,557 | ) | (49,727 | ) | |||
Property and equipment, net | 448,018 | 451,262 | |||||
Long-term assets | |||||||
Investment in Laramie Energy, LLC | 117,569 | 108,823 | |||||
Intangible assets, net | 29,084 | 29,912 | |||||
Goodwill | 105,732 | 105,732 | |||||
Other long-term assets | 41,913 | 46,596 | |||||
Total assets | $ | 1,203,702 | $ | 1,145,433 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | 20,286 | $ | 20,286 | |||
Obligations under inventory financing agreements | 299,738 | 225,135 | |||||
Accounts payable | 47,888 | 65,190 | |||||
Other accrued liabilities | 54,597 | 72,154 | |||||
Total current liabilities | 422,509 | 382,765 | |||||
Long-term liabilities | |||||||
Long-term debt, net of current maturities | 338,120 | 350,110 | |||||
Common stock warrants | 5,823 | 5,134 | |||||
Long-term capital lease obligations | 1,509 | 1,780 | |||||
Other liabilities | 36,637 | 36,735 | |||||
Total liabilities | 804,598 | 776,524 | |||||
Commitments and contingencies (Note 11) | |||||||
Stockholders’ equity | |||||||
Preferred stock, $0.01 par value: 3,000,000 shares authorized, none issued | — | — | |||||
Common stock, $0.01 par value; 500,000,000 shares authorized at March 31, 2017 and December 31, 2016, 45,763,555 shares and 45,533,913 shares issued at March 31, 2017 and December 31, 2016, respectively | 458 | 455 | |||||
Additional paid-in capital | 589,462 | 587,057 | |||||
Accumulated deficit | (193,012 | ) | (220,799 | ) | |||
Accumulated other comprehensive income | 2,196 | 2,196 | |||||
Total stockholders’ equity | 399,104 | 368,909 | |||||
Total liabilities and stockholders’ equity | $ | 1,203,702 | $ | 1,145,433 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Revenues | $ | 605,253 | $ | 377,812 | |||
Operating expenses | |||||||
Cost of revenues (excluding depreciation) | 501,289 | 342,388 | |||||
Operating expense (excluding depreciation) | 50,348 | 38,177 | |||||
Depreciation, depletion, and amortization | 11,260 | 5,095 | |||||
General and administrative expense | 12,914 | 11,200 | |||||
Acquisition and integration expense | 253 | 671 | |||||
Total operating expenses | 576,064 | 397,531 | |||||
Operating income (loss) | 29,189 | (19,719 | ) | ||||
Other income (expense) | |||||||
Interest expense and financing costs, net | (8,942 | ) | (4,613 | ) | |||
Other income, net | 130 | 46 | |||||
Change in value of common stock warrants | (689 | ) | 1,644 | ||||
Change in value of contingent consideration | — | 6,176 | |||||
Equity earnings (losses) from Laramie Energy, LLC | 8,746 | (1,871 | ) | ||||
Total other income (expense), net | (755 | ) | 1,382 | ||||
Income (loss) before income taxes | 28,434 | (18,337 | ) | ||||
Income tax expense | (648 | ) | (336 | ) | |||
Net income (loss) | $ | 27,786 | $ | (18,673 | ) | ||
Earnings (loss) per share | |||||||
Basic | $ | 0.60 | $ | (0.46 | ) | ||
Diluted | $ | 0.58 | $ | (0.46 | ) | ||
Weighted-average number of shares outstanding | |||||||
Basic | 45,476 | 40,974 | |||||
Diluted | 51,865 | 40,974 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 27,786 | $ | (18,673 | ) | ||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||
Depreciation, depletion, and amortization | 11,260 | 5,095 | |||||
Non-cash interest expense | 2,364 | 1,030 | |||||
Change in value of common stock warrants | 689 | (1,644 | ) | ||||
Change in value of contingent consideration | — | (6,176 | ) | ||||
Deferred taxes | 202 | — | |||||
Stock-based compensation | 2,536 | 2,185 | |||||
Unrealized loss (gain) on derivative contracts | (1,488 | ) | 1,609 | ||||
Equity (earnings) losses from Laramie Energy, LLC | (8,746 | ) | 1,871 | ||||
Net changes in operating assets and liabilities: | |||||||
Trade accounts receivable | 6,362 | 10,466 | |||||
Prepaid and other assets | 32,050 | 43,994 | |||||
Inventories | (94,743 | ) | 72,948 | ||||
Obligations under inventory financing agreements | 76,515 | (84,623 | ) | ||||
Accounts payable and other accrued liabilities | (29,792 | ) | (16,053 | ) | |||
Net cash provided by operating activities | 24,995 | 12,029 | |||||
Cash flows from investing activities | |||||||
Capital expenditures | (7,579 | ) | (4,476 | ) | |||
Proceeds from sale of assets | — | 2,235 | |||||
Investment in Laramie Energy, LLC | — | (55,000 | ) | ||||
Net cash used in investing activities | (7,579 | ) | (57,241 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from sale of common stock, net of offering costs | (33 | ) | — | ||||
Proceeds from borrowings | 74,700 | — | |||||
Repayments of borrowings | (91,636 | ) | (5,114 | ) | |||
Net borrowings (repayments) on deferred payment arrangement | (1,912 | ) | 5,566 | ||||
Purchase of common stock for retirement | (95 | ) | (186 | ) | |||
Contingent consideration settlements | — | (1,084 | ) | ||||
Net cash used in financing activities | (18,976 | ) | (818 | ) | |||
Net decrease in cash and cash equivalents | (1,560 | ) | (46,030 | ) | |||
Cash and cash equivalents at beginning of period | 47,772 | 167,788 | |||||
Cash and cash equivalents at end of period | $ | 46,212 | $ | 121,758 | |||
Supplemental cash flow information: | |||||||
Cash received (paid) for: | |||||||
Interest | $ | (5,249 | ) | $ | (2,746 | ) | |
Taxes | — | 139 | |||||
Non-cash investing and financing activities: | |||||||
Accrued capital expenditures | $ | 1,676 | $ | 2,439 |
Three Months Ended March 31, 2017 | |||
Beginning balance | $ | 108,823 | |
Equity earnings from Laramie | 7,415 | ||
Accretion of basis difference | 1,331 | ||
Ending balance | $ | 117,569 |
March 31, 2017 | December 31, 2016 | ||||||
Current assets | $ | 10,084 | $ | 12,199 | |||
Non-current assets | 654,719 | 655,022 | |||||
Current liabilities | 41,336 | 58,067 | |||||
Non-current liabilities | 181,746 | 186,631 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Natural gas and oil revenues | $ | 40,612 | $ | 14,693 | |||
Income (loss) from operations | 1,163 | (11,124 | ) | ||||
Net income (loss) | 17,528 | (2,579 | ) |
Three Months Ended March 31, 2016 | |||
Revenues | $ | 438,233 | |
Net loss | (31,155 | ) | |
Loss per share | |||
Basic | $ | (0.76 | ) |
Diluted | $ | (0.76 | ) |
Titled Inventory | Supply and Offtake Agreements (1) | Total | |||||||||
Crude oil and feedstocks | $ | 60,169 | $ | 87,350 | $ | 147,519 | |||||
Refined products and blendstock | 42,011 | 82,565 | 124,576 | ||||||||
Warehouse stock and other | 20,974 | — | 20,974 | ||||||||
Total | $ | 123,154 | $ | 169,915 | $ | 293,069 |
Titled Inventory | Supply and Offtake Agreements (1) | Total | |||||||||
Crude oil and feedstocks | $ | 11,620 | $ | 49,682 | $ | 61,302 | |||||
Refined products and blendstock | 38,916 | 77,677 | 116,593 | ||||||||
Warehouse stock and other | 20,431 | — | 20,431 | ||||||||
Total | $ | 70,967 | $ | 127,359 | $ | 198,326 |
(1) | Please read Note 7—Inventory Financing Agreements for further information. |
March 31, 2017 | December 31, 2016 | ||||||
Advances to suppliers for crude oil purchases | $ | 7,793 | $ | 38,300 | |||
Collateral posted with broker for derivative instruments | 3,190 | 2,714 | |||||
Prepaid insurance | 5,088 | 7,504 | |||||
Derivative assets | 3,437 | 161 | |||||
Other | 5,138 | 4,701 | |||||
Total | $ | 24,646 | $ | 53,380 |
March 31, 2017 | December 31, 2016 | ||||||
Hawaii Retail Credit Facilities | $ | 92,569 | $ | 95,319 | |||
5.00% Convertible Senior Notes due 2021 | 115,000 | 115,000 | |||||
Term Loan | 50,361 | 60,361 | |||||
Par Wyoming Holdings Term Loan | 67,325 | 67,325 | |||||
Wyoming Refining Senior Secured Term Loan | 53,394 | 55,715 | |||||
Wyoming Refining Senior Secured Revolver | 7,800 | 6,700 | |||||
Principal amount of long-term debt | 386,449 | 400,420 | |||||
Less: unamortized discount and deferred financing costs | (28,043 | ) | (30,024 | ) | |||
Total debt, net of unamortized discount and deferred financing costs | 358,406 | 370,396 | |||||
Less: current maturities | (20,286 | ) | (20,286 | ) | |||
Long-term debt, net of current maturities | $ | 338,120 | $ | 350,110 |
• | OTC swap sales of 1.1 million barrels that economically hedge our crude oil purchases; |
• | OTC swap sales of 66 thousand barrels that economically hedge our refined products inventory; |
• | futures purchases of 305 thousand barrels that economically hedge our sales of refined products; and |
• | option collars of 52 thousand barrels per month through December 2017 and option collars and OTC swaps of 20 thousand barrels per month through December 2018 that economically hedge our internally consumed fuel. |
Balance Sheet Location | March 31, 2017 | December 31, 2016 | |||||||
Asset (Liability) | |||||||||
Commodity derivatives (1) | Prepaid and other current assets | $ | 2,941 | $ | — | ||||
Commodity derivatives (1) | Other long-term assets | 1,290 | 2,748 | ||||||
Commodity derivatives | Other accrued liabilities | (791 | ) | (595 | ) | ||||
J. Aron repurchase obligation derivative | Obligations under inventory financing agreements | (9,392 | ) | (20,000 | ) | ||||
Interest rate derivatives | Prepaid and other current assets | 496 | 161 | ||||||
Interest rate derivatives | Other long-term assets | 3,149 | 3,377 | ||||||
Interest rate derivatives | Other accrued liabilities | — | (94 | ) |
(1) | Does not include cash collateral of $3.2 million and $2.7 million recorded in Prepaid and other current assets and $7.0 million and $7.0 million in Other long-term assets as of March 31, 2017 and December 31, 2016, respectively. |
Three Months Ended March 31, | |||||||||
Statement of Operations Location | 2017 | 2016 | |||||||
Commodity derivatives | Cost of revenues (excluding depreciation) | $ | (6,367 | ) | $ | (6,855 | ) | ||
J. Aron repurchase obligation derivative | Cost of revenues (excluding depreciation) | 10,607 | (22,976 | ) | |||||
Interest rate derivatives | Interest expense and financing costs, net | 110 | (756 | ) |
March 31, 2017 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Gross Fair Value | Effect of Counter-Party Netting | Net Carrying Value on Balance Sheet (1) | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commodity derivatives | $ | 433 | $ | 7,431 | $ | — | $ | 7,864 | $ | (3,633 | ) | $ | 4,231 | ||||||||||
Interest rate derivatives | — | 3,672 | — | 3,672 | (27 | ) | 3,645 | ||||||||||||||||
Total | $ | 433 | $ | 11,103 | $ | — | $ | 11,536 | $ | (3,660 | ) | $ | 7,876 | ||||||||||
Liabilities | |||||||||||||||||||||||
Common stock warrants | $ | — | $ | — | $ | (5,823 | ) | $ | (5,823 | ) | $ | — | $ | (5,823 | ) | ||||||||
Commodity derivatives | (116 | ) | (4,308 | ) | — | (4,424 | ) | 3,633 | (791 | ) | |||||||||||||
J. Aron repurchase obligation derivative | — | — | (9,392 | ) | (9,392 | ) | — | (9,392 | ) | ||||||||||||||
Interest rate derivatives | — | (27 | ) | — | (27 | ) | 27 | — | |||||||||||||||
Total | $ | (116 | ) | $ | (4,335 | ) | $ | (15,215 | ) | $ | (19,666 | ) | $ | 3,660 | $ | (16,006 | ) |
December 31, 2016 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Gross Fair Value | Effect of Counter-Party Netting | Net Carrying Value on Balance Sheet (1) | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commodity derivatives | $ | 190 | $ | 26,095 | $ | — | $ | 26,285 | $ | (23,537 | ) | $ | 2,748 | ||||||||||
Interest rate derivatives | — | 3,602 | — | 3,602 | (64 | ) | 3,538 | ||||||||||||||||
Total | $ | 190 | $ | 29,697 | $ | — | $ | 29,887 | $ | (23,601 | ) | $ | 6,286 | ||||||||||
Liabilities | |||||||||||||||||||||||
Common stock warrants | $ | — | $ | — | $ | (5,134 | ) | $ | (5,134 | ) | $ | — | $ | (5,134 | ) | ||||||||
Commodity derivatives | (54 | ) | (24,078 | ) | — | (24,132 | ) | 23,537 | (595 | ) | |||||||||||||
J. Aron repurchase obligation derivative | — | — | (20,000 | ) | (20,000 | ) | — | (20,000 | ) | ||||||||||||||
Interest rate derivatives | — | (158 | ) | — | (158 | ) | 64 | (94 | ) | ||||||||||||||
Total | $ | (54 | ) | $ | (24,236 | ) | $ | (25,134 | ) | $ | (49,424 | ) | $ | 23,601 | $ | (25,823 | ) |
(1) | Does not include cash collateral of $10.2 million and $9.7 million as of March 31, 2017 and December 31, 2016, respectively, included within Prepaid and other current assets and Other long-term assets on our condensed consolidated balance sheets. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Balance, at beginning of period | $ | (25,134 | ) | $ | (25,867 | ) | |
Settlements | — | 1,084 | |||||
Total unrealized income (loss) included in earnings | 9,919 | (15,155 | ) | ||||
Balance, at end of period | $ | (15,215 | ) | $ | (39,938 | ) |
March 31, 2017 | |||||||
Carrying Value | Fair Value (1) | ||||||
Hawaii Retail Credit Agreement (2) | $ | 91,175 | $ | 91,175 | |||
5.00% Convertible Senior Notes due 2021 (3) | 92,101 | 134,647 | |||||
Term Loan | 48,141 | 53,130 | |||||
Par Wyoming Holdings Term Loan (2) | 65,985 | 65,985 | |||||
Wyoming Refining Senior Secured Term Loan (2) | 53,204 | 53,204 | |||||
Wyoming Refining Senior Secured Revolver (2) | 7,800 | 7,800 | |||||
Common stock warrants | 5,823 | 5,823 |
December 31, 2016 | |||||||
Carrying Value | Fair Value (1) | ||||||
Hawaii Retail Credit Agreement (2) | $ | 93,853 | $ | 93,853 | |||
5.00% Convertible Senior Notes due 2021 (3) | 91,029 | 122,229 | |||||
Term Loan | 57,426 | 62,367 | |||||
Par Wyoming Holdings Term Loan (2) | 65,908 | 65,908 | |||||
Wyoming Refining Senior Secured Term Loan (2) | 55,480 | 55,480 | |||||
Wyoming Refining Senior Secured Revolver (2) | 6,700 | 6,700 | |||||
Common stock warrants | 5,134 | 5,134 |
(1) | The fair values of these instruments are considered Level 3 measurements in the fair value hierarchy with the exception of the fair value measurement of the 5.00% Convertible Senior Notes which is considered a Level 2 measurement as discussed below. |
(2) | Fair value approximates carrying value due to the debt's floating rate interest which approximates current market value. |
(3) | The carrying value of the 5.00% Convertible Senior Notes excludes the fair value of the equity component, which was classified as equity upon issuance. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Restricted Stock Awards | $ | 1,703 | $ | 684 | |||
Restricted Stock Units | 84 | 1,062 | |||||
Stock Option Awards | 750 | 441 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Components of net periodic benefit cost (credit): | |||||||
Service cost | $ | 153 | $ | — | |||
Interest cost | 298 | — | |||||
Expected return on plan assets | (297 | ) | — | ||||
Net periodic benefit cost | $ | 154 | $ | — |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income (loss) | $ | 27,786 | $ | (18,673 | ) | ||
Less: Undistributed income allocated to participating securities (1) | 299 | — | |||||
Net income (loss) attributable to common stockholders | 27,487 | (18,673 | ) | ||||
Plus: Net income effect of convertible securities | 2,509 | — | |||||
Numerator for diluted income (loss) per common share | $ | 29,996 | $ | (18,673 | ) | ||
Basic weighted-average common stock shares outstanding | 45,476 | 40,974 | |||||
Plus: dilutive effects of common stock equivalents (2) | 6,389 | — | |||||
Diluted weighted-average common stock shares outstanding | 51,865 | 40,974 | |||||
Basic income (loss) per common share | $ | 0.60 | $ | (0.46 | ) | ||
Diluted income (loss) per common share | $ | 0.58 | $ | (0.46 | ) |
(1) | Participating securities include restricted stock that has been issued but has not yet vested. |
(2) | Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per share amounts. We have utilized the basic shares outstanding to calculate both basic and diluted loss per share for the three months ended March 31, 2016. |
Three months ended March 31, 2017 | Refining | Logistics | Retail | Corporate, Eliminations and Other (1) | Total | |||||||||||||||
Revenues | $ | 574,079 | $ | 29,995 | $ | 77,682 | $ | (76,503 | ) | $ | 605,253 | |||||||||
Cost of revenues (excluding depreciation) | 503,044 | 15,298 | 59,799 | (76,852 | ) | 501,289 | ||||||||||||||
Operating expense (excluding depreciation) | 36,216 | 3,797 | 10,315 | 20 | 50,348 | |||||||||||||||
Depreciation, depletion and amortization | 7,403 | 1,487 | 1,448 | 922 | 11,260 | |||||||||||||||
General and administrative expense | — | — | — | 12,914 | 12,914 | |||||||||||||||
Acquisition and integration expense | — | — | — | 253 | 253 | |||||||||||||||
Operating income (loss) | $ | 27,416 | $ | 9,413 | $ | 6,120 | $ | (13,760 | ) | $ | 29,189 | |||||||||
Interest expense and financing costs, net | (8,942 | ) | ||||||||||||||||||
Other income, net | 130 | |||||||||||||||||||
Change in value of common stock warrants | (689 | ) | ||||||||||||||||||
Equity earnings from Laramie Energy, LLC | 8,746 | |||||||||||||||||||
Income before income taxes | 28,434 | |||||||||||||||||||
Income tax expense | (648 | ) | ||||||||||||||||||
Net income | $ | 27,786 | ||||||||||||||||||
Capital expenditures | $ | 1,009 | $ | 1,197 | $ | 3,497 | $ | 1,876 | $ | 7,579 |
Three months ended March 31, 2016 | Refining | Logistics | Retail | Corporate, Eliminations and Other (1) | Total | |||||||||||||||
Revenues | $ | 336,405 | $ | 20,787 | $ | 68,501 | $ | (47,881 | ) | $ | 377,812 | |||||||||
Cost of revenues (excluding depreciation) | 326,706 | 12,826 | 49,950 | (47,094 | ) | 342,388 | ||||||||||||||
Operating expense (excluding depreciation) | 26,050 | 1,901 | 10,112 | 114 | 38,177 | |||||||||||||||
Depreciation, depletion and amortization | 1,938 | 918 | 1,537 | 702 | 5,095 | |||||||||||||||
General and administrative expense | — | — | — | 11,200 | 11,200 | |||||||||||||||
Acquisition and integration expense | — | — | — | 671 | 671 | |||||||||||||||
Operating income (loss) | $ | (18,289 | ) | $ | 5,142 | $ | 6,902 | $ | (13,474 | ) | $ | (19,719 | ) | |||||||
Interest expense and financing costs, net | (4,613 | ) | ||||||||||||||||||
Other income, net | 46 | |||||||||||||||||||
Change in value of common stock warrants | 1,644 | |||||||||||||||||||
Change in value of contingent consideration | 6,176 | |||||||||||||||||||
Equity losses from Laramie Energy, LLC | (1,871 | ) | ||||||||||||||||||
Loss before income taxes | (18,337 | ) | ||||||||||||||||||
Income tax expense | (336 | ) | ||||||||||||||||||
Net loss | $ | (18,673 | ) | |||||||||||||||||
Capital expenditures | $ | 2,631 | $ | 279 | $ | 844 | $ | 722 | $ | 4,476 |
(1) | Includes eliminations of intersegment revenues and cost of revenues of $77.2 million and $58.4 million for the three months ended March 31, 2017 and 2016, respectively. |
Three Months Ended March 31, | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Revenues | $ | 605,253 | $ | 377,812 | $ | 227,441 | 60 | % | ||||||
Cost of revenues (excluding depreciation) | 501,289 | 342,388 | 158,901 | 46 | % | |||||||||
Operating expense (excluding depreciation) | 50,348 | 38,177 | 12,171 | 32 | % | |||||||||
Depreciation, depletion and amortization | 11,260 | 5,095 | 6,165 | 121 | % | |||||||||
General and administrative expense | 12,914 | 11,200 | 1,714 | 15 | % | |||||||||
Acquisition and integration expense | 253 | 671 | (418 | ) | (62 | )% | ||||||||
Total operating expenses | 576,064 | 397,531 | ||||||||||||
Operating income (loss) | 29,189 | (19,719 | ) | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense and financing costs, net | (8,942 | ) | (4,613 | ) | (4,329 | ) | (94 | )% | ||||||
Other income, net | 130 | 46 | 84 | 183 | % | |||||||||
Change in value of common stock warrants | (689 | ) | 1,644 | (2,333 | ) | (142 | )% | |||||||
Change in value of contingent consideration | — | 6,176 | (6,176 | ) | (100 | )% | ||||||||
Equity earnings (losses) from Laramie Energy, LLC | 8,746 | (1,871 | ) | 10,617 | 567 | % | ||||||||
Total other income (expense), net | (755 | ) | 1,382 | |||||||||||
Income (loss) before income taxes | 28,434 | (18,337 | ) | |||||||||||
Income tax expense | (648 | ) | (336 | ) | (312 | ) | (93 | )% | ||||||
Net income (loss) | $ | 27,786 | $ | (18,673 | ) |
Three months ended March 31, 2017 | Refining | Logistics | Retail | Corporate, Eliminations and Other (1) | Total | |||||||||||||||
Revenues | $ | 574,079 | $ | 29,995 | $ | 77,682 | $ | (76,503 | ) | $ | 605,253 | |||||||||
Cost of revenues (excluding depreciation) | 503,044 | 15,298 | 59,799 | (76,852 | ) | 501,289 | ||||||||||||||
Operating expense (excluding depreciation) | 36,216 | 3,797 | 10,315 | 20 | 50,348 | |||||||||||||||
Depreciation, depletion and amortization | 7,403 | 1,487 | 1,448 | 922 | 11,260 | |||||||||||||||
General and administrative expense | — | — | — | 12,914 | 12,914 | |||||||||||||||
Acquisition and integration expense | — | — | — | 253 | 253 | |||||||||||||||
Operating income (loss) | $ | 27,416 | $ | 9,413 | $ | 6,120 | $ | (13,760 | ) | $ | 29,189 |
Three months ended March 31, 2016 | Refining | Logistics | Retail | Corporate, Eliminations and Other (1) | Total | |||||||||||||||
Revenues | $ | 336,405 | $ | 20,787 | $ | 68,501 | $ | (47,881 | ) | $ | 377,812 | |||||||||
Cost of revenues (excluding depreciation) | 326,706 | 12,826 | 49,950 | (47,094 | ) | 342,388 | ||||||||||||||
Operating expense (excluding depreciation) | 26,050 | 1,901 | 10,112 | 114 | 38,177 | |||||||||||||||
Depreciation, depletion and amortization | 1,938 | 918 | 1,537 | 702 | 5,095 | |||||||||||||||
General and administrative expense | — | — | — | 11,200 | 11,200 | |||||||||||||||
Acquisition and integration expense | — | — | — | 671 | 671 | |||||||||||||||
Operating income (loss) | $ | (18,289 | ) | $ | 5,142 | $ | 6,902 | $ | (13,474 | ) | $ | (19,719 | ) |
(1) | Includes eliminations of intersegment Revenues and Cost of revenues (excluding depreciation) of $77.2 million and $58.4 million for the three months ended March 31, 2017 and 2016, respectively. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Total Refining Segment | |||||||
Feedstocks Throughput (Mbpd) | 91.1 | 74.2 | |||||
Refined product sales volume (Mbpd) | 94.8 | 81.4 | |||||
Hawaii Refinery | |||||||
Feedstocks Throughput (Mbpd) | 76.8 | 74.2 | |||||
Source of Crude Oil: | |||||||
North America | 44.2 | % | 64.6 | % | |||
Latin America | 0.3 | % | 7.2 | % | |||
Africa | 22.8 | % | 4.1 | % | |||
Asia | 25.8 | % | 24.1 | % | |||
Middle East | 6.9 | % | — | % | |||
Total | 100.0 | % | 100.0 | % | |||
Yield (% of total throughput) | |||||||
Gasoline and gasoline blendstocks | 27.5 | % | 26.4 | % | |||
Distillate | 45.0 | % | 41.2 | % | |||
Fuel oils | 18.4 | % | 22.1 | % | |||
Other products | 5.9 | % | 6.7 | % | |||
Total yield | 96.8 | % | 96.4 | % | |||
Refined product sales volume (Mbpd) | |||||||
On-island sales volume | 61.8 | 60.8 | |||||
Exports sale volume | 18.2 | 20.6 | |||||
Total refined product sales volume | 80.0 | 81.4 | |||||
4-1-2-1 Singapore Crack Spread (1) ($ per barrel) | $ | 6.74 | $ | 3.39 | |||
4-1-2-1 Mid Pacific Crack Spread (1) ($ per barrel) | 7.69 | 4.48 | |||||
Mid Pacific Crude Oil Differential (2) ($ per barrel) | (1.21 | ) | (2.10 | ) | |||
Operating income (loss) per bbl ($/throughput bbl) | 4.01 | (2.71 | ) | ||||
Adjusted Gross Margin per bbl ($/throughput bbl) (3) | 7.06 | 4.76 | |||||
Production costs per bbl ($/throughput bbl) (4) | 3.71 | 3.74 | |||||
DD&A per bbl ($/throughput bbl) | 0.64 | 0.29 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Wyoming Refinery | |||||||
Feedstocks Throughput (Mbpd) | 14.3 | — | |||||
Yield (% of total throughput) | |||||||
Gasoline and gasoline blendstocks | 54.2 | % | — | % | |||
Distillate | 39.8 | % | — | % | |||
Fuel oil | 2.7 | % | — | % | |||
Other products | 1.4 | % | — | % | |||
Total yield | 98.1 | % | — | % | |||
Refined product sales volume (Mbpd) | 14.8 | — | |||||
Wyoming 3-2-1 Index (5) | $ | 16.51 | $ | — | |||
Operating income (loss) per bbl ($/throughput bbl) | (0.24 | ) | — | ||||
Adjusted Gross Margin per bbl ($/throughput bbl) (3) | 9.45 | — | |||||
Production costs per bbl ($/throughput bbl) (4) | 7.46 | — | |||||
DD&A per bbl ($/throughput bbl) | 2.31 | — |
(1) | The profitability of our Hawaii business is heavily influenced by crack spreads in both the Singapore and U.S. West Coast markets. These markets reflect the closest liquid market alternatives to source refined products for Hawaii. We believe the Singapore and Mid Pacific crack spreads (or four barrels of Brent crude oil converted into one barrel of gasoline, two barrels of distillate (diesel and jet fuel) and one barrel of fuel oil) best reflect a market indicator for our Hawaii operations. The Mid Pacific crack spread is calculated using a ratio of 80% Singapore and 20% San Francisco indexes. |
(2) | Weighted-average differentials, excluding shipping costs, of a blend of crude oils with an API of 31.98 and sulfur weight percentage of 0.65% that is indicative of our typical crude oil mix quality compared to Brent crude oil. |
(3) | Please see discussion of Adjusted Gross Margin below. We calculate Adjusted Gross Margin per barrel by dividing Adjusted Gross Margin by total refining throughput. |
(4) | Management uses production costs per barrel to evaluate performance and compare efficiency to other companies in the industry. There are a variety of ways to calculate production costs per barrel; different companies within the industry calculate it in different ways. We calculate production costs per barrel by dividing all direct production costs, which include the costs to run the refinery including personnel costs, repair and maintenance costs, insurance, utilities and other miscellaneous costs, by total refining throughput. Our production costs are included in Operating expense (excluding depreciation) on our condensed consolidated statement of operations, which also includes costs related to our bulk marketing operations. |
(5) | The profitability of our Wyoming refinery is heavily influenced by crack spreads in nearby markets. We believe the Wyoming 3-2-1 Index is the best market indicator for our operations in Wyoming. The Wyoming 3-2-1 Index is computed by taking two parts gasoline and one part distillate (ULSD) as created from three barrels of West Texas Intermediate Crude Oil. Pricing is based 50% on applicable product pricing in Rapid City, South Dakota, and 50% on applicable product pricing in Denver, Colorado. |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
Retail Segment | |||||
Retail sales volumes (thousands of gallons) | 22,058 | 22,286 | |||
Logistics Segment | |||||
Pipeline throughput (Mbpd) | |||||
Crude oil pipelines | 91.1 | 76.2 | |||
Refined product pipelines | 90.5 | 74.5 | |||
Total pipeline throughput | 181.6 | 150.7 |
Three months ended March 31, 2017 | Refining | Logistics | Retail | ||||||||
Operating income | $ | 27,416 | $ | 9,413 | $ | 6,120 | |||||
Operating expense (excluding depreciation) | 36,216 | 3,797 | 10,315 | ||||||||
Depreciation, depletion and amortization | 7,403 | 1,487 | 1,448 | ||||||||
Inventory valuation adjustment | (8,792 | ) | — | — | |||||||
Unrealized gain on derivatives | (1,287 | ) | — | — | |||||||
Adjusted Gross Margin | $ | 60,956 | $ | 14,697 | $ | 17,883 |
Three months ended March 31, 2016 | Refining | Logistics | Retail | ||||||||
Operating income (loss) | $ | (18,289 | ) | $ | 5,142 | $ | 6,902 | ||||
Operating expense (excluding depreciation) | 26,050 | 1,901 | 10,112 | ||||||||
Depreciation, depletion and amortization | 1,938 | 918 | 1,537 | ||||||||
Inventory valuation adjustment | 21,437 | — | — | ||||||||
Unrealized loss on derivatives | 1,015 | — | — | ||||||||
Adjusted Gross Margin | $ | 32,151 | $ | 7,961 | $ | 18,551 |
• | 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. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income (loss) | $ | 27,786 | $ | (18,673 | ) | ||
Inventory valuation adjustment | (8,792 | ) | 18,322 | ||||
Unrealized loss (gain) on derivatives | (1,287 | ) | 992 | ||||
Acquisition and integration expense | 253 | 671 | |||||
Change in value of common stock warrants | 689 | (1,644 | ) | ||||
Change in value of contingent consideration | — | (6,176 | ) | ||||
Severance costs | 1,595 | — | |||||
Adjusted Net Income (Loss) | 20,244 | (6,508 | ) | ||||
Depreciation, depletion and amortization | 11,260 | 5,095 | |||||
Interest expense and financing costs, net | 8,942 | 4,613 | |||||
Equity losses (earnings) from Laramie Energy, LLC | (8,746 | ) | 1,871 | ||||
Income tax expense | 648 | 336 | |||||
Adjusted EBITDA | $ | 32,348 | $ | 5,407 |
May 5, 2017 | Par Hawaii Refining | Wyoming Refining | Hawaii Retail (2) | Corporate and Other | Total | ||||||||||||||
Cash and cash equivalents | $ | 10,319 | $ | 117 | $ | 12,036 | $ | 6,362 | $ | 28,834 | |||||||||
Revolver availability | — | — | 5,000 | — | 5,000 | ||||||||||||||
Wyoming Refining availability | — | 17,625 | $ | — | — | 17,625 | |||||||||||||
Deferred Payment Arrangement availability (1) | 27,252 | — | — | — | 27,252 | ||||||||||||||
Total available liquidity | $ | 37,571 | $ | 17,742 | $ | 17,036 | $ | 6,362 | $ | 78,711 |
March 31, 2017 | Par Hawaii Refining | Wyoming Refining | Hawaii Retail (2) | Corporate and Other | Total | ||||||||||||||
Cash and cash equivalents | $ | 27,226 | $ | 73 | $ | 8,253 | $ | 10,660 | $ | 46,212 | |||||||||
Revolver availability | — | — | 5,000 | — | 5,000 | ||||||||||||||
Wyoming Refining availability | — | 22,130 | — | — | 22,130 | ||||||||||||||
Deferred Payment Arrangement availability (1) | 13,933 | — | — | — | 13,933 | ||||||||||||||
Total available liquidity | $ | 41,159 | $ | 22,203 | $ | 13,253 | $ | 10,660 | $ | 87,275 |
(1) | Please read Note 7—Inventory Financing Agreements to our condensed consolidated financial statements for further discussion. |
(2) | Includes HIE Retail, LLC and Mid Pac, which are parties to the Hawaii Retail Credit Facilities. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net cash provided by operating activities | $ | 24,995 | $ | 12,029 | |||
Net cash used in investing activities | (7,579 | ) | (57,241 | ) | |||
Net cash used in financing activities | (18,976 | ) | (818 | ) |
• | the price for which we sell our refined products; |
• | the price we pay for crude oil and other feedstocks; |
• | our crude oil and refined products inventory; and |
• | our fuel requirements for our Hawaii refinery. |
• | OTC swap sales of 1.1 million barrels that economically hedge our crude oil purchases; |
• | OTC swap sales of 66 thousand barrels that economically hedge our refined products inventory; |
• | futures purchases of 305 thousand barrels that economically hedge our sales of refined products; and |
• | option collars of 52 thousand barrels per month through December 2017 and option collars and OTC swaps of 20 thousand barrels per month through December 2018 that economically hedge our internally consumed fuel. |
Period | Total number of shares (or units) purchased (1) | Average price paid per share (or unit) | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs | ||||||||
January 1 - January 31, 2017 | 2,270 | $ | 14.69 | — | — | |||||||
February 1 - February 28, 2017 | 7,578 | 14.93 | — | — | ||||||||
March 1 - March 31, 2017 | 21,828 | 15.83 | — | — | ||||||||
Total | 31,676 | $ | 15.53 | — | — |
2.1 | Third Amended Joint Chapter 11 Plan of Reorganization of Delta Petroleum Corporation and Its Debtor Affiliates dated August 13, 2012. Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on September 7, 2012. |
2.2 | Contribution Agreement, dated as of June 4, 2012, among Piceance Energy, LLC, Laramie Energy, LLC and the Company. Incorporated by reference to Exhibit 2.2 to the Company's Current Report on Form 8-K filed on June 8, 2012. |
2.3 | Purchase and Sale Agreement dated as of December 31, 2012, by and among the Company, SEACOR Energy Holdings Inc., SEACOR Holdings Inc., and Gateway Terminals LLC. Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on January 3, 2013. |
2.4 | Membership Interest Purchase Agreement dated as of June17, 2013, by and among Tesoro Corporation, Tesoro Hawaii, LLC and Hawaii Pacific Energy, LLC Incorporated by reference to Exhibit 2.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013, filed on August 14, 2013. |
2.5 | Agreement and Plan of Merger dated as of June 2, 2014, by and among the Company, Bogey, Inc., Koko’oha Investments, Inc., and Bill D. Mills, in his capacity as the Shareholders’ Representative. Incorporated by reference to Exhibit 2.5 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014, filed on August 11, 2014. |
2.6 | Amendment to Agreement and Plan of Merger dated as of September 9, 2014, by and among the Company, Bogey, Inc., Koko’oha Investments, Inc. and Bill D. Mills, in his capacity as the shareholders’ representative. Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on September 10, 2014. |
2.7 | Second Amendment to Agreement and Plan of Merger dated as of December 31, 2014, by and among Par Petroleum Corporation, Bogey, Inc., Koko'oha Investments, Inc. and Bill D. Mills, in his capacity as the shareholder's representative. Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 7, 2015. |
2.8 | Third Amendment to Agreement and Plan of Merger dated as of March 31, 2015, by and among the Company, Bogey, Inc., Koko’oha Investments, Inc. and Bill D. Mills, in his capacity as the shareholders’ representative. Incorporated by reference to Exhibit 2.4 to the Company’s Current Report on Form 8-K filed on April 2, 2015. |
2.9 | Unit Purchase Agreement, dated as of June 14, 2016, between Par Wyoming, LLC and Black Elk Refining, LLC. Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on June 15, 2016. |
2.10 | First Amendment to Unit Purchase Agreement dated as of July 14, 2016, between Par Wyoming, LLC and Black Elk Refining, LLC. Incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed on July 15, 2016. |
3.1 | Restated Certificate of Incorporation of the Company dated October 20, 2015. Incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed on October 20, 2015. |
3.2 | Second Amended and Restated Bylaws of the Company dated October 20, 2015. Incorporated by reference to Exhibit 3.3 to the Company's Current Report on Form 8-K filed on October 20, 2015. |
4.1 | Form of the Company's Common Stock Certificate. Incorporated by reference to Exhibit 4.1 to the Company's Annual Report on Form 10-K filed on March 31, 2014. |
4.2 | Stockholders Agreement dated April 10, 2015. Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on April 13, 2015. |
4.3 | Registration Rights Agreement effective as of August 31, 2012, by and among the Company, Zell Credit Opportunities Master Fund, L.P., Waterstone Capital Management, L.P., Pandora Select Partners, LP, Iam Mini-Fund 14 Limited, Whitebox Multi-Strategy Partners, LP, Whitebox Credit Arbitrage Partners, LP, HFR RVA Combined Master Trust, Whitebox Concentrated Convertible Arbitrage Partners, LP and Whitebox Asymmetric Partners, LP. Incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K filed on September 7, 2012. |
4.4 | Registration Rights Agreement dated as of September 25, 2013, by and among the Company and the Purchasers party thereto. Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on September 27, 2013. |
4.5 | Warrant Issuance Agreement dated as of August 31, 2012, by and among the Company and WB Delta, Ltd., Waterstone Offshore ER Fund, Ltd., Prime Capital Master SPC, GOT WAT MAC Segregated Portfolio, Waterstone Market Neutral MAC51, Ltd., Waterstone Market Neutral Master Fund, Ltd., Waterstone MF Fund, Ltd., Nomura Waterstone Market Neutral Fund, ZCOF Par Petroleum Holdings, L.L.C. and Highbridge International, LLC. Incorporated by reference to Exhibit 4.4 to the Company's Current Report on Form 8-K filed on September 7, 2012. |
4.6 | Form of Common Stock Purchase Warrant dated as of June 4, 2012. Incorporated by reference to Exhibit 4.5 to the Company's Current Report on Form 8-K filed on September 7, 2012. |
4.7 | Indenture, dated June 21, 2016, between Par Pacific Holdings, Inc. and Wilmington Trust, National Association, as Trustee. Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on June 21, 2016. |
4.8 | Registration Rights Agreement, dated June 21, 2016, between Par Pacific Holdings, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the Initial Purchasers. Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 22, 2016. |
4.9 | Registration Rights Agreement dated as of July 14, 2016, by and among Par Pacific Holdings, Inc. and the purchasers party thereto. Incorporated by Reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on July 15, 2016. |
4.10 | First Amendment to Registration Rights Agreement dated as of September 27, 2016, by and among the Company and the purchasers party thereof. Incorporated by reference to Exhibit 4.14 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2016. |
4.11 | Second Amendment to Registration Rights Agreement dated as of September 30, 2016, by and among the Company and the holders party thereto. Incorporated by reference to Exhibit 4.15 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2016. |
4.12 | Third Amendment to Registration Rights Agreement dated as of October 7, 2016, by and among the Company and the holders party thereto. Incorporated by reference to Exhibit 4.16 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2016. |
4.13 | Fourth Amendment to Registration Rights Agreement dated as of October 14, 2016, by and among the Company and the holders party thereto. Incorporated by reference to Exhibit 4.17 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2016. |
4.14 | Fifth Amendment to Registration Rights Agreement dated as of October 21, 2016, by and among the Company and the holders party thereto. Incorporated by reference to Exhibit 4.18 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2016. |
4.15 | Sixth Amendment to Registration Rights Agreement dated as of October 28, 2016 by and among the Company and the holders party thereto. Incorporated by reference to Exhibit 4.19 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2016. |
4.16 | Par Pacific Holdings, Inc. Amended and Restated 2012 Long Term Incentive Plan. Incorporated by reference to Appendix A to the Company’s Proxy Statement on Schedule 14A filed on April 21, 2016.+ |
10.1 | Par Pacific Holdings, Inc. Non-Qualified Deferred Compensation Plan. Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 6, 2017.+ |
10.2 | Par Pacific Holdings, Inc. Severance Plan for Senior Officers. Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on March 6, 2017.+ |
10.3 | Separation Agreement dated as of March 21, 2017 by and between Par Pacific Holdings, Inc. and Christopher Micklas. Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 31, 2017. + |
10.4 | Agreement and General Release dated as of March 21, 2017 by and between Par Pacific Holdings, Inc. and Christopher Micklas. Incorporated by reference to Exhibit 10.2 to the Company's Current Report of Form 8-K filed March 31, 2017.+ |
10.5 | Form of Performance Restricted Stock Unit Award Agreement. Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed March 31, 2017. + |
10.6 | Amendment to Supply and Offtake Agreement dated May 8, 2017, by and between Par Hawaii Refining, LLC and J. Aron & Company LLC. Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 10, 2017. |
10.7 | Amendment to Pledge and Security Agreement dated May 8, 2017, by and between Par Hawaii Refining, LLC and J. Aron & Company LLC. Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated May 10, 2017. |
10.8 | Amendment to Storage Facilities Agreement dated May 8, 2017, by and between Par Hawaii Refining, LLC and J. Aron & Company LLC. Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K dated May 10, 2017. |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.* |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. * |
101.INS | XBRL Instance Document.** |
101.SCH | XBRL Taxonomy Extension Schema Documents.** |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document.** |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document.** |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document.** |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document.** |
PAR PACIFIC HOLDINGS, INC. (Registrant) | ||||
By: | /s/ William Pate | |||
William Pate | ||||
President and Chief Executive Officer | ||||
By: | /s/ William Monteleone | |||
William Monteleone | ||||
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Par Pacific Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ William Pate |
William Pate |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Par Pacific Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ William Monteleone |
William Monteleone |
Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ William Pate |
William Pate |
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ William Monteleone |
William Monteleone |
Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 05, 2017 |
|
Document and Entity Information: | ||
Entity Registrant Name | PAR PACIFIC HOLDINGS, INC. | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Entity Central Index Key | 0000821483 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding (in shares) | 45,790,612 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 45,763,555 | 45,533,913 |
Overview |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Overview | Note 1—Overview Par Pacific Holdings, Inc. and its wholly owned subsidiaries ("Par" or the "Company") own, manage, and maintain interests in energy and infrastructure businesses. Currently, we operate in three primary business segments: 1) Refining - Our refinery in Kapolei, Hawaii, produces ultra-low sulfur diesel, gasoline, jet fuel, marine fuel, and other associated refined products primarily for consumption in Hawaii. Our refinery in Newcastle, Wyoming, produces gasoline, ultra-low sulfur diesel, jet fuel, and other associated refined products that are primarily marketed in Wyoming and South Dakota. 2) Retail - Our retail outlets sell gasoline, diesel, and retail merchandise throughout the islands of Oahu, Maui, Hawaii, and Kauai. Our retail network includes Hele, Tesoro, and "76" branded retail sites, cardlock stations, company-operated convenience stores, sites operated in cooperation with 7-Eleven, and other sites operated by third parties. 3) Logistics - We own and operate terminals, pipelines, a single-point mooring ("SPM"), and trucking operations to distribute refined products throughout the islands of Oahu, Maui, Hawaii, Molokai, and Kauai. In addition, we own and operate a crude oil pipeline gathering system , a refined products pipeline, storage facilities, and loading racks in Wyoming. We also own and operate a jet fuel storage facility and pipeline that serve the Ellsworth Air Force Base in South Dakota. We own a 42.3% equity investment in Laramie Energy, LLC ("Laramie Energy"). Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco Counties, Colorado. Our Corporate and Other reportable segment includes administrative costs, our Texadian operations, and several small non-operated oil and gas interests that were owned by our predecessor. As of December 31, 2016, Texadian has ceased its business operations other than maintaining its fleet of railcars. |
Summary of Significant Accounting Policies |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The condensed consolidated financial statements include the accounts of Par and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts previously reported in our condensed consolidated financial statements for prior periods have been reclassified to conform with the current presentation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. The condensed consolidated financial statements contained in this report include all material adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the complete fiscal year or for any other period. The condensed consolidated balance sheet as of December 31, 2016 was derived from our audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosures. Actual amounts could differ from these estimates. Recent Accounting Pronouncements There have been no developments to recent accounting pronouncements, including the expected dates of adoption and estimated effects on our financial condition, results of operations, and cash flows, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016, except for the following: In March 2017, the Financial Accounting Standards Board issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). This ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. ASU 2017-07 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of any annual period for which an entity’s financial statements (interim or annual) have not been issued or made available for issuance. ASU 2017-07 should be applied retrospectively for the presentation of cost components in the income statement and prospectively for the capitalization of the service cost component in assets. We do not expect the adoption of ASU 2017-07 to have a material impact on our financial condition, results of operations, or cash flows. Accounting Principles Adopted On January 1, 2017, we adopted ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The adoption of this ASU did not have a material impact on our financial condition, results of operations, and cash flows. On January 1, 2017, we adopted ASU No. 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting ("ASU 2016-07"). ASU 2016-07 simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. The adoption of this ASU did not have any impact on our financial condition, results of operations, and cash flows. |
Investment in Laramie Energy, LLC |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Laramie Energy, LLC | Note 3—Investment in Laramie Energy, LLC We have a 42.3% ownership interest in Laramie Energy. Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco Counties, Colorado. We acquired our equity interest in Laramie Energy as a result of (1) the contribution of certain natural gas and oil interests to Laramie Energy in conjunction with our corporate reorganization in August 2012 and (2) cash contributions of $27.5 million in 2015 and $55.0 million in 2016. Laramie Energy has a $400 million revolving credit facility secured by a lien on its natural gas and crude oil properties and related assets with a borrowing base currently set at $210 million. As of March 31, 2017, the balance outstanding on the revolving credit facility was approximately $121 million. We are guarantors of Laramie Energy's credit facility, with recourse limited to the pledge of our equity interest of our wholly owned subsidiary, Par Piceance Energy Equity, LLC. Under the terms of its credit facility, Laramie Energy is generally prohibited from making future cash distributions to its owners, including us. The change in our equity investment in Laramie Energy is as follows (in thousands):
Summarized financial information for Laramie Energy is as follows (in thousands):
Laramie Energy's net income for the three months ended March 31, 2017 includes $13.3 million of depreciation, depletion, and amortization ("DD&A") and $24.2 million of unrealized gain on derivative instruments. Laramie Energy's net loss for the three months ended March 31, 2016 includes $7.6 million of DD&A and $5.9 million of unrealized gain on derivative instruments. At March 31, 2017 and December 31, 2016, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $66.5 million and $67.8 million, respectively. This difference arose due to lack of control and marketability discounts and an other-than-temporary impairment of our equity investment in Laramie Energy in 2015. We attributed this difference to natural gas and crude oil properties and are amortizing the difference over 15 years based on the estimated timing of production of proved reserves. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||
Acquisitions | Note 4—Acquisitions Wyoming Refining Company Acquisition On June 14, 2016, Par Wyoming, LLC, a wholly owned subsidiary of Par, entered into a unit purchase agreement (the “Purchase Agreement”) with Black Elk Refining, LLC to purchase all of the issued and outstanding units representing the membership interests in Hermes Consolidated, LLC (d/b/a Wyoming Refining Company) and indirectly Wyoming Refining Company’s wholly owned subsidiary, Wyoming Pipeline Company, LLC (collectively, “Wyoming Refining”) (the "WRC Acquisition"). Wyoming Refining owns and operates a refinery and related logistics assets in Newcastle, Wyoming. On July 14, 2016, we completed the WRC Acquisition for cash consideration of $209.4 million, including a deposit of $5.0 million paid in June 2016, and assumed debt consisting of term loans of $58.0 million and revolving loans of $10.1 million. The consideration was paid with funds received from the issuance of our 2.50% convertible subordinated bridge notes (the "Bridge Notes"), cash on hand, which included the net proceeds from our June 2016 issuance and sale of an aggregate of $115 million principal amount of 5.00% convertible senior notes due 2021 (the "5.00% Convertible Senior Notes"), and the issuance of a $65 million secured term loan by Par Wyoming Holdings, LLC (the "Par Wyoming Holdings Credit Agreement"). We accounted for the WRC Acquisition as a business combination whereby the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the date of the acquisition. We have recorded a preliminary estimate of the fair value of the assets acquired and liabilities assumed and expect to finalize the purchase price allocation during the second quarter of 2017. The primary area of the purchase price allocation that is not yet finalized relates to environmental liabilities. The results of operations of Wyoming Refining were included in our results beginning July 14, 2016. The following unaudited pro forma financial information presents our consolidated revenues and net income (loss) as if the WRC Acquisition had been completed on January 1, 2015 (in thousands, except per share amounts):
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Note 5—Inventories Inventories at March 31, 2017 consisted of the following (in thousands):
Inventories at December 31, 2016 consisted of the following (in thousands):
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We did not recognize a reserve for lower of cost or net realizable value of inventory as of March 31, 2017. The reserve for the lower of cost or net realizable value of inventory was $0.2 million as of December 31, 2016. |
Prepaid and Other Current Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid and Other Current Assets | Note 6—Prepaid and Other Current Assets Prepaid and other current assets at March 31, 2017 and December 31, 2016 consisted of the following (in thousands):
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Inventory Financing Agreements |
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Other Commitments [Abstract] | |
Inventory Financing Agreements | Note 7—Inventory Financing Agreements Supply and Offtake Agreements On June 1, 2015, we entered into several agreements with J. Aron & Company ("J. Aron") to support the operations of our Hawaii refinery (the "Supply and Offtake Agreements"). The Supply and Offtake Agreements have a term of three years with two one-year extension options upon mutual agreement of the parties. During the term of the Supply and Offtake Agreements, we and J. Aron will identify mutually acceptable contracts for the purchase of crude oil from third parties. Per the Supply and Offtake Agreements, J. Aron will provide up to 94 thousand barrels per day of crude oil to our Hawaii refinery. Additionally, we agreed to sell and J. Aron agreed to buy, at market prices, refined products produced at our Hawaii refinery. We will then repurchase the refined products from J. Aron prior to selling the refined products to our retail operations or to third parties. The agreements also provide for the lease of crude oil and certain refined product storage facilities to J. Aron. Following expiration or termination of the Supply and Offtake Agreements, we are obligated to purchase the crude oil and refined product inventories then owned by J. Aron and located at the leased storage facilities at then-current market prices. Our obligations under the Supply and Offtake Agreements are secured by a security interest on substantially all of the assets of our subsidiary Par Hawaii Refining, LLC ("PHR"), a security interest on the equity interests held by our wholly owned subsidiary, Par Petroleum, LLC, in PHR, and a mortgage whereby PHR granted to J. Aron a lien on all real property and improvements owned by PHR, including our Hawaii refinery. Though title to the crude oil and certain refined product inventories resides with J. Aron, the Supply and Offtake Agreements are accounted for similar to a product financing arrangement; therefore, the crude oil and refined products inventories will continue to be included on our condensed consolidated balance sheets until processed and sold to a third party. Each reporting period, we record a liability in an amount equal to the amount we expect to pay to repurchase the inventory held by J. Aron based on current market prices. For the three months ended March 31, 2017 and 2016, we incurred approximately $3.1 million and $1.9 million, respectively, in handling fees related to the Supply and Offtake Agreements, which are included in Cost of revenues (excluding depreciation) on our condensed consolidated statements of operations. For the three months ended March 31, 2017 and 2016, Interest expense and financing costs, net on our condensed consolidated statements of operations includes approximately $0.8 million and $0.6 million, respectively, of expenses related to the Supply and Offtake Agreements. The Supply and Offtake Agreements also include a deferred payment arrangement ("Deferred Payment Arrangement") whereby we can defer payments owed under the agreements up to the lesser of $125 million or 85% of the eligible accounts receivable and inventory. Upon execution of the Supply and Offtake Agreements, we paid J. Aron a deferral arrangement fee of $1.3 million. The deferred amounts under the Deferred Payment Arrangement will bear interest at a rate equal to 90-day LIBOR plus 3.75% per annum. We also agreed to pay a deferred payment availability fee equal to 0.75% of the unused capacity under the Deferred Payment Arrangement. Amounts outstanding under the Deferred Payment Arrangement are included in Obligations under inventory financing agreements on our condensed consolidated balance sheets. Changes in the amount outstanding under the Deferred Payment Arrangement are included within Cash flows from financing activities on the condensed consolidated statements of cash flows. As of March 31, 2017 and December 31, 2016, the capacity of the Deferred Payment Arrangement was $55.4 million and $59.4 million, respectively. As of March 31, 2017 and December 31, 2016, we had $41.4 million and $43.3 million outstanding, respectively. Under the Supply and Offtake Agreements, we pay or receive certain fees from J. Aron based on changes in market prices over time. In September 2015, we entered into an agreement to fix this market fee for the period from October 1, 2015 through November 30, 2016 whereby J. Aron agreed to pay us a total of $18 million to be settled in fourteen equal monthly payments. In February 2016, we fixed the market fee for the remainder of the term of the Supply and Offtake Agreements for an additional $14.6 million to be settled in eighteen equal monthly payments. The receivable from J. Aron was recorded as a reduction to our Obligations under inventory financing agreements pursuant to our Master Netting Agreement. As of March 31, 2017 and December 31, 2016, the receivable was $12.2 million and $14.6 million, respectively. The agreements also provide us with the ability to economically hedge price risk on our inventories and crude oil purchases. Please read Note 9—Derivatives for further information. |
Debt |
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Debt | Note 8—Debt The following table summarizes our outstanding debt (in thousands):
Our debt is subject to various affirmative, negative, and financial covenants. As of March 31, 2017, we were in compliance with all debt covenants. Some of our subsidiaries have restrictions in their respective credit facilities with regard to dividends, distributions, loans, or advances. In certain circumstances, the consent of a third party would be required prior to the transfer of any cash or assets from these subsidiaries to us. Wyoming Refining Credit Facilities Wyoming Refining Company and its wholly owned subsidiary, Wyoming Pipeline Company LLC, are borrowers under a Third Amended and Restated Loan Agreement dated as of April 30, 2015 (as amended, the “Wyoming Refining Credit Facilities”), with Bank of America, N.A. as the lender. The Wyoming Refining Credit Facilities provide for (a) a revolving credit facility in the maximum principal amount at any time outstanding of $30 million ("Wyoming Refining Senior Secured Revolver"), subject to a borrowing base, which provides for revolving loans and for the issuance of letters of credit and (b) certain term loans that are fully advanced ("Wyoming Refining Senior Secured Term Loan"). The Wyoming Refining Senior Secured Term Loan requires quarterly principal payments of $2.3 million. All remaining outstanding amounts under the Wyoming Refining Senior Secured Term Loan and the Wyoming Refining Senior Secured Revolver are fully payable on April 30, 2018. 5.00% Convertible Senior Notes Due 2021 As of March 31, 2017, the outstanding principal amount of the 5.00% Convertible Senior Notes was $115.0 million, the unamortized discount and deferred financing cost was $22.9 million and the carrying amount of the liability component was $92.1 million. As of March 31, 2017, the if-converted value did not exceed the outstanding principal amount of the 5.00% Convertible Senior Notes. Cross Default Provisions Included within each of our debt agreements are customary cross default provisions that require the repayment of amounts outstanding on demand should an event of default occur and not be cured within the permitted grace period, if any. As of March 31, 2017, we are in compliance with all of our credit agreements. Guarantors In connection with our shelf registration statement on Form S-3, which was filed with the SEC on September 2, 2016 and declared effective on September 16, 2016 (“Registration Statement”), we may sell non-convertible debt securities and other securities in one or more offerings with an aggregate initial offering price of up to $750 million. Any non-convertible debt securities issued under the Registration Statement may be fully and unconditionally guaranteed (except for customary release provisions), on a joint and several basis, by some or all of our subsidiaries, other than subsidiaries that are “minor” within the meaning of Rule 3-10 of Regulation S-X (the “Guarantor Subsidiaries”). We have no “independent assets or operations” within the meaning of Rule 3-10 of Regulation S-X and certain of the Guarantor Subsidiaries may be subject to restrictions on their ability to distribute funds to us, whether by cash dividends, loans or advances. |
Derivatives |
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Derivatives | Note 9—Derivatives Commodity Derivatives We utilize crude oil commodity derivative contracts to manage our price exposure to our inventory positions, future purchases of crude oil, and future sales of refined products. The derivative contracts that we execute to manage our price risk include exchange traded futures, options, and over-the-counter (“OTC”) swaps. Our futures, options, and OTC swaps are marked-to-market and changes in the fair value of these contracts are recognized within Cost of revenues (excluding depreciation) on our condensed consolidated statements of operations. We are obligated to repurchase the crude oil and refined products from J. Aron at the termination of the Supply and Offtake Agreements. We have determined that this obligation contains an embedded derivative, similar to forward purchase contracts of crude oil and refined products. As such, we have accounted for this embedded derivative at fair value, with changes in the fair value recorded in Cost of revenues (excluding depreciation) on our condensed consolidated statements of operations. We are also required under the Supply and Offtake Agreements to hedge the time spread between the period of crude oil cargo pricing and the month of delivery. We utilize OTC swaps to accomplish this. We have entered into forward purchase contracts for crude oil and forward sales contracts of refined products. We elect the normal purchases normal sales ("NPNS") exception for all forward contracts that meet the definition of a derivative and are not expected to net settle. Any gains and losses with respect to these forward contracts designated as NPNS are not reflected in earnings until the delivery occurs. We elect to offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. Our condensed consolidated balance sheets present derivative assets and liabilities on a net basis. Please read Note 10—Fair Value Measurements for the gross fair value and net carrying value of our derivative instruments. Our cash margin that is required as collateral deposits cannot be offset against the fair value of open contracts except in the event of default. At March 31, 2017, our open commodity derivative contracts represent:
Interest Rate Derivatives We are exposed to interest rate volatility in our outstanding debt and in the Supply and Offtake Agreements. We utilize interest rate swaps to manage our interest rate risk. As of March 31, 2017, we had locked in an average fixed rate of 1.1% in exchange for a floating interest rate indexed to the three-month LIBOR on an aggregate notional amount of $200 million. The interest rate swaps mature in February 2019 and March 2021. Our 5.00% Convertible Senior Notes include a redemption option and a related make-whole premium which represent an embedded derivative that is not clearly and closely related to the 5.00% Convertible Senior Notes. As such, we have accounted for this embedded derivative at fair value with changes in the fair value recorded in Interest expense and financing costs, net on our condensed consolidated statements of operations. As of March 31, 2017, this embedded derivative was deemed to have a de minimis fair value. The following table provides information on the fair value amounts (in thousands) of these derivatives as of March 31, 2017 and December 31, 2016 and their placement within our condensed consolidated balance sheets.
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The following table summarizes the pre-tax gains (losses) recognized in Net income (loss) on our condensed consolidated statements of operations resulting from changes in fair value of derivative instruments not designated as hedges charged directly to earnings (in thousands):
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 10—Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis Common Stock Warrants As of March 31, 2017 and December 31, 2016, we had 354,350 common stock warrants outstanding. We estimate the fair value of our outstanding common stock warrants using the difference between the strike price of the warrant and the market price of our common stock, which is a Level 3 fair value measurement. As of March 31, 2017 and December 31, 2016, the warrants had a weighted-average exercise price of $0.09 and $0.10 and a remaining term of 5.42 years and 5.67 years, respectively. The estimated fair value of the common stock warrants was $16.43 and $14.49 per share as of March 31, 2017 and December 31, 2016, respectively. Derivative Instruments We utilize crude oil commodity derivative contracts to manage our price exposure to our inventory positions, future purchases of crude oil, and future sales of refined products. We utilize interest rate swaps to manage our interest rate risk. We classify financial assets and liabilities according to the fair value hierarchy. Financial assets and liabilities classified as Level 1 instruments are valued using quoted prices in active markets for identical assets and liabilities. These include our exchange traded futures. Level 2 instruments are valued using quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. Our Level 2 instruments include OTC swaps and options. These commodity derivatives are valued using market quotations from independent price reporting agencies and commodity exchange price curves that are corroborated with market data. Level 3 instruments are valued using significant unobservable inputs that are not supported by sufficient market activity. The valuation of our J.Aron repurchase obligation derivative requires that we make estimates of the prices and differentials assuming settlement at the end of the reporting period; therefore, it is classified as a Level 3 instrument. We do not have other commodity derivatives classified as Level 3 at March 31, 2017 or December 31, 2016. Please read Note 9—Derivatives for further information on derivatives. Financial Statement Impact Fair value amounts by hierarchy level as of March 31, 2017 and December 31, 2016 are presented gross in the tables below (in thousands):
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A roll forward of Level 3 financial instruments measured at fair value on a recurring basis is as follows (in thousands):
The carrying value and fair value of long-term debt and other financial instruments as of March 31, 2017 and December 31, 2016 are as follows (in thousands):
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We estimate the fair value of the Term Loan using a discounted cash flow analysis and an estimate of the current yield of 9.48% and 11.06% as of March 31, 2017 and December 31, 2016, respectively, by reference to market interest rates for term debt of comparable companies. The fair value of the 5.00% Convertible Senior Notes was determined by aggregating the fair value of the liability and equity components of the notes. The fair value of the liability component of the 5.00% Convertible Senior Notes was determined using a discounted cash flow analysis in which the projected interest and principal payments were discounted at an estimated market yield for a similar debt instrument without the conversion feature. The equity component was estimated based on the Black-Scholes model for a call option with strike price equal to the conversion price, a term matching the remaining life of the 5.00% Convertible Senior Notes, and an implied volatility based on market values of options outstanding as of March 31, 2017. The fair value of the 5.00% Convertible Senior Notes is considered a Level 2 measurement in the fair value hierarchy. The fair value of all non-derivative financial instruments included in current assets, including cash and cash equivalents, restricted cash, and trade accounts receivable and current liabilities, including accounts payable, approximate their carrying value due to their short-term nature. |
Commitments and Contingencies |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11—Commitments and Contingencies In the ordinary course of business, we are a party to various lawsuits and other contingent matters. We establish accruals for specific legal matters when we determine that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on our financial condition, results of operations, or cash flows. Tesoro Earnout Dispute On June 17, 2013, a wholly owned subsidiary of Par entered into a membership interest purchase agreement with Tesoro Corporation ("Tesoro") pursuant to which it purchased all of the issued and outstanding membership interests in Tesoro Hawaii, LLC, an entity that was renamed Hawaii Independent Energy, LLC, and thereafter renamed Par Hawaii Refining, LLC. The cash consideration for the acquisition is subject to an earnout provision during the years 2014-2016. Tesoro has disputed our calculation of the 2015 and 2016 earnout amounts. We are currently evaluating Tesoro's claim. If we and Tesoro are unable to agree on the calculation of the 2015 and 2016 earnout amounts, the dispute will be submitted to a mutually acceptable independent accounting firm to be engaged by the parties, as arbiter, to determine the amount owed, if any. Mid Pac Earnout and Indemnity Dispute Pursuant to a Stock Purchase Agreement dated August 3, 2011 and amended October 25, 2011 (the “SPA”), Mid Pac Petroleum, LLC ("Mid Pac") purchased all the issued and outstanding stock of Inter Island Petroleum, Inc. (“Inter Island”) from Brian J. and Wendy Barbata (collectively, the “Barbatas”). The SPA provides for an earnout payment to be made to the Barbatas in an amount equal to four times the amount by which the average of Inter Island’s earnings before interest, taxes, depreciation, and amortization during the relevant earnout period exceeds $3.5 million. The earnout payment is capped at a maximum of $4.5 million. Mid Pac contends that there are no amounts owed to the Barbatas for the earnout period. By letter dated May 29, 2014, the Barbatas disputed Mid Pac’s computation of the earnout, without explanation of the amount they claim to be owed or refutation of Mid Pac’s analysis. Mid Pac intends to vigorously oppose any such claims. Any claims by the Barbatas may be offset by Mid Pac’s claims for indemnification under the SPA. By letters dated December 31, 2013 and April 25, 2014, Mid Pac has asserted indemnification claims against the Barbatas exceeding $1 million with respect to environmental losses arising from certain terminals operated by Inter Island and its subsidiaries. The Barbatas have disputed such claims. Arbitration for the earnout and indemnification claims is scheduled to commence on April 2, 2018. United Steelworkers Union Dispute A portion of our employees at the Hawaii refinery are represented by the United Steelworkers Union (“USW”). On March 23, 2015, the union ratified a four-year extension of the collective bargaining agreement. On January 13, 2016, the USW filed a claim against PHR before the United States National Labor Relations Board (the “NLRB”) alleging a refusal to bargain collectively and in good faith. On March 29, 2016, the NLRB deferred final determination on the USW charge to the grievance/arbitration process under the extant collective bargaining agreement. Arbitration has not yet been scheduled. PHR denies the USW’s allegations and intends to vigorously defend itself in connection with such claim in the grievance/arbitration process and any subsequent proceeding before the NLRB. Environmental Matters Like other petroleum refiners and exploration and production companies, our operations are subject to extensive and periodically-changing federal and state environmental regulations governing air emissions, wastewater discharges and solid and hazardous waste management activities. Many of these regulations are becoming increasingly stringent and the cost of compliance can be expected to increase over time. Periodically, we receive communications from various federal, state, and local governmental authorities asserting violations of environmental laws and/or regulations. These governmental entities may also propose or assess fines or require corrective actions for these asserted violations. We intend to respond in a timely manner to all such communications and to take appropriate corrective action. Except as disclosed below, we do not anticipate that any such matters currently asserted will have a material impact on our financial condition, results of operations, or cash flows. Wyoming refinery Our Wyoming refinery is subject to a number of consent decrees, orders, and settlement agreements involving the U.S. Environmental Protection Agency ("EPA") and/or the Wyoming Department of Environmental Quality, some of which date back to the late 1970s and several of which remain in effect, requiring further actions at the Wyoming refinery. The largest cost component arising from these various decrees relates to the investigation, monitoring, and remediation of soil, groundwater, surface water, and sediment contamination associated with the facility’s historic operations. Investigative work by Wyoming Refining and negotiations with the relevant agencies as to remedial approaches remain ongoing on a number of aspects of the contamination, meaning that investigation, monitoring, and remediation costs are not reasonably estimable for some elements of these efforts. Based on current information, however, preliminary estimates we have received for the well-understood components of these efforts suggest total response costs of approximately $18.0 million, approximately one-third of which we expect to incur in the next 5 years, with the remainder being incurred over approximately 30 years. Additionally, we believe the Wyoming refinery will need to modify or close a series of wastewater impoundments in the next several years and replace those impoundments with a new wastewater treatment system. Based on preliminary information, reasonable estimates we have received suggest costs of approximately $0.5 million to modify or close the existing wastewater treatment ponds and approximately $11.6 million to design and construct a new wastewater treatment system. Finally, among the various historic consent decrees, orders, and settlement agreements into which Wyoming Refining has entered, there are several penalty orders associated with exceedances of permitted limits by the Wyoming refinery’s wastewater discharges. Although the frequency of these exceedances appears to be declining over time, Wyoming Refining may become subject to new penalty enforcement action in the next several years, which could involve penalties in excess of $100,000. Moreover, in addition to the issues associated with the Wyoming refinery, certain product pipeline assets were acquired in the WRC Acquisition. The Pipeline and Hazardous Materials Administration (“PHMSA”) recently conducted an integrated inspection of the products pipeline with additional follow-up regarding integrity management planning and general operations and maintenance. Based on preliminary discussions with PHMSA following this inspection, the Wyoming refinery anticipates a civil penalty in excess of $100,000. In connection with our acquisition of, and commencement of operations at, the Wyoming refinery, findings of a past failure to comply with applicable environmental or pipeline safety laws and regulations may trigger a variety of administrative, civil, and criminal enforcement measures, including the assessment of monetary penalties that could be in excess of $100,000, the imposition of investigatory, remedial, or corrective actions and the issuance of orders enjoining future operations or imposing additional compliance requirements on such operations. Regulation of Greenhouse Gases The EPA regulates greenhouse gases ("GHG") under the federal Clean Air Act ("CAA"). New construction or material expansions that meet certain GHG emissions thresholds will likely require that, among other things, a GHG permit be issued in accordance with the federal CAA regulations and we will be required, in connection with such permitting, to undertake a technology review to determine appropriate controls to be implemented with the project in order to reduce GHG emissions. Furthermore, the EPA is currently developing refinery-specific GHG regulations and performance standards that are expected to impose GHG emission limits and/or technology requirements. These control requirements may affect a wide range of refinery operations. Any such controls could result in material increased compliance costs, additional operating restrictions for our business, and an increase in the cost of the products we produce, which could have a material adverse effect on our financial condition, results of operations, or cash flows. On September 29, 2015, the EPA announced a final rule updating standards that control toxic air emissions from petroleum refineries, addressing, among other things, flaring operations, fenceline air quality monitoring, and additional emission reductions from storage tanks and delayed coking units. Affected existing sources will be required to comply with the new requirements no later than 2018, with certain refiners required to comply earlier depending on the relevant provision and refinery construction date. We do not anticipate that compliance with this rule will have a material impact on our financial condition, results of operations, or cash flows. In 2007, the State of Hawaii passed Act 234, which required that GHG emissions be rolled back on a statewide basis to 1990 levels by the year 2020. Although delayed, the Hawaii Department of Health has issued regulations that would require each major facility to reduce CO2 emissions by 16% by 2020 relative to a calendar year 2010 baseline (the first year in which GHG emissions were reported to the EPA under 40 CFR Part 98). Those rules are pending final approval by the Government of Hawaii. The Hawaii refinery’s capacity to reduce fuel use and GHG emissions is limited. However, the state’s pending regulation allows, and the Hawaii refinery expects to be able to demonstrate, that additional reductions are not cost-effective or necessary in light of the state’s current GHG inventory and future year projections. The pending regulation allows for “partnering” with other facilities (principally power plants) which have already dramatically reduced greenhouse emissions or are on schedule to reduce CO2 emissions in order to comply with the state’s Renewable Portfolio Standards. Fuel Standards In 2007, the U.S. Congress passed the Energy Independence and Security Act of 2007 (the "EISA") that, among other things, set a target fuel economy standard of 35 miles per gallon for the combined fleet of cars and light trucks in the U.S. by model year 2020 and contained a second Renewable Fuel Standard (the “RFS2”). In August 2012, the EPA and National Highway Traffic Safety Administration jointly adopted regulations that establish an average industry fuel economy of 54.5 miles per gallon by model year 2025. The RFS2 requires an increasing amount of renewable fuel usage, up to 36 billion gallons by 2022. In the near term, the RFS2 will be satisfied primarily with fuel ethanol blended into gasoline. The RFS2 may present production and logistics challenges for both the renewable fuels and petroleum refining and marketing industries in that we may have to enter into arrangements with other parties or purchase credits from the EPA to meet our obligations to use advanced biofuels, including biomass-based diesel and cellulosic biofuel, with potentially uncertain supplies of these new fuels. In October 2010, the EPA issued a partial waiver decision under the Clean Air Act to allow for an increase in the amount of ethanol permitted to be blended into gasoline from 10% (“E10”) to 15% (“E15”) for 2007 and newer light duty motor vehicles. In January 2011, the EPA issued a second waiver for the use of E15 in vehicles model years 2001- 2006. There are numerous issues, including state and federal regulatory issues, which need to be addressed before E15 can be marketed on a large scale for use in traditional gasoline engines. Consequently, unless either the state or federal regulations are revised, Renewable Identification Numbers ("RINs") will be required to fulfill the federal mandate for renewable fuels. In March 2014, the EPA published a final Tier 3 gasoline standard that lowers the allowable sulfur level in gasoline to 10 parts per million ("ppm") and also lowers the allowable benzene, aromatics and olefins content of gasoline, with the most recent rulemaking addressing certain technical corrections and clarifications effective June 21, 2016. The effective date for the new standard was January 1, 2017; however, approved small volume refineries have until January 1, 2020 to meet the standard. Our Hawaii refinery is required to comply with Tier 3 gasoline standards within 30 months of June 21, 2016, the date our Hawaii refinery was disqualified from small volume refinery status. On March 19, 2015, the EPA confirmed the small volume refinery status of our Wyoming refinery. There will be compliance costs and uncertainties regarding how we will comply with the various requirements contained in the EISA and other fuel-related regulations. Along with credit and trading options, potential capital upgrades for the Hawaii and Wyoming refineries are being evaluated. We may also experience a decrease in demand for refined petroleum products due to an increase in combined fleet mileage or due to refined petroleum products being replaced by renewable fuels. Environmental Agreement On September 25, 2013, Par Petroleum, LLC (formerly Hawaii Pacific Energy, a wholly owned subsidiary of Par created for purposes of the PHR acquisition), Tesoro and PHR entered into an Environmental Agreement (“Environmental Agreement”), which allocated responsibility for known and contingent environmental liabilities related to the acquisition of PHR, including the Consent Decree as described below. Consent Decree On July 18, 2016, PHR and subsidiaries of Tesoro entered into a consent decree with the EPA, the U.S. Department of Justice ("DOJ") and other state governmental authorities concerning alleged violations of the federal CAA related to the ownership and operation of multiple facilities owned or formerly owned by Tesoro and its affiliates ("Consent Decree"), including our Hawaii refinery. As a result of the Consent Decree, PHR expanded its previously-announced 2016 Hawaii refinery turnaround to undertake additional capital improvements to reduce emissions of air pollutants and to provide for certain nitrogen oxide and sulfur dioxide emission controls and monitoring required by the Consent Decree. Although the turnaround was completed during the third quarter of 2016, work related to the Consent Decree is ongoing. This work subjects us to risks associated with engineering, procurement, and construction of improvements and repairs to our facilities and related penalties and fines to the extent applicable deadlines under the Consent Decree are not satisfied, as well as risks related to the performance of equipment required by, or affected by, the Consent Decree. Each of these risks could have a material adverse effect on our business, financial condition, or results of operations. We estimate the cost of compliance with the Consent Decree to be approximately $30 million. However, Tesoro is responsible under the Environmental Agreement for reimbursing PHR for all reasonable third-party capital expenditures incurred pursuant to the Consent Decree to the extent related to acts or omissions prior to the date of the closing of the PHR acquisition. Tesoro is obligated to pay all applicable fines and penalties related to the Consent Decree. Through March 31, 2017, Tesoro has reimbursed us for $9.7 million of the total capital expenditures of $11.1 million incurred in connection with the Consent Decree. For the three months ended March 31, 2017, we incurred $1.5 million of capital expenditures in connection with the Consent Decree. For the three months ended March 31, 2017, Tesoro reimbursed us for $3.5 million of capital expenditures in connection with the Consent Decree. Net capital expenditures and reimbursements related to the Consent Decree for the three months ended March 31, 2017 and 2016 are presented within Capital expenditures on our condensed consolidated statement of cash flows for the related periods. Indemnification In addition to its obligation to reimburse us for capital expenditures incurred pursuant to the Consent Decree, Tesoro agreed to indemnify us for claims and losses arising out of related breaches of Tesoro’s representations, warranties, and covenants in the Environmental Agreement, certain defined “corrective actions” relating to pre-existing environmental conditions, third-party claims arising under environmental laws for personal injury or property damage arising out of or relating to releases of hazardous materials that occurred prior to the date of the closing of the PHR acquisition, any fine, penalty, or other cost assessed by a governmental authority in connection with violations of environmental laws by PHR prior to the date of the closing of the PHR acquisition, certain groundwater remediation work, fines, or penalties imposed on PHR by the Consent Decree related to acts or omissions of Tesoro prior to the date of the closing of the PHR acquisition and claims and losses related to the Pearl City Superfund Site. Tesoro’s indemnification obligations are subject to certain limitations as set forth in the Environmental Agreement. These limitations include a deductible of $1 million and a cap of $15 million for certain of Tesoro’s indemnification obligations related to certain pre-existing conditions, as well as certain restrictions regarding the time limits for submitting notice and supporting documentation for remediation actions. Recovery Trusts We emerged from the reorganization of Delta Petroleum on August 31, 2012 ("Emergence Date") when the plan of reorganization ("Plan") was consummated. On the Emergence Date, we formed the Delta Petroleum General Recovery Trust (“General Trust”). The General Trust was formed to pursue certain litigation against third parties, including preference actions, fraudulent transfer and conveyance actions, rights of setoff and other claims, or causes of action under the U.S. Bankruptcy Code and other claims and potential claims that the Debtors hold against third parties. As of March 31, 2017, two related claims totaling approximately $22.4 million remained to be resolved by the trustee for the General Trust and we have reserved approximately $0.5 million representing the estimated value of claims remaining to be settled which are deemed probable and estimable at period end. One of the two remaining claims was filed by the U.S. Government for approximately $22.4 million relating to ongoing litigation concerning a plugging and abandonment obligation in Pacific Outer Continental Shelf Lease OCS-P 0320, comprising part of the Sword Unit in the Santa Barbara Channel, California. The second unliquidated claim, which is related to the same plugging and abandonment obligation, was filed by Noble Energy Inc., the operator and majority interest owner of the Sword Unit. We believe the probability of issuing stock to satisfy the full claim amount is remote, as the obligations upon which such proof of claim is asserted are joint and several among all working interest owners and Delta, our predecessor, only owned an approximate 3.4% aggregate working interest in the unit. The settlement of claims is subject to ongoing litigation and we are unable to predict with certainty how many shares will be required to satisfy all claims. Pursuant to the Plan, allowed claims are settled at a ratio of 54.4 shares per $1,000 of claim. |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Note 12—Stockholders' Equity Incentive Plan The following table summarizes our compensation costs recognized in General and administrative expense under the Amended and Restated Par Pacific Holdings, Inc. 2012 Long-term Incentive Plan ("LTIP") and Stock Purchase Plan (in thousands):
During the three months ended March 31, 2017, we granted 223 thousand shares of restricted stock and restricted stock units with a fair value of approximately $3.4 million. As of March 31, 2017, there were approximately $7.8 million of total unrecognized compensation costs related to restricted stock awards and restricted stock units, which are expected to be recognized on a straight-line basis over a weighted-average period of 2.9 years. During the three months ended March 31, 2017, we granted 239 thousand stock option awards with a weighted-average exercise price of $15.03 per share. As of March 31, 2017, there were approximately $5.2 million of total unrecognized compensation costs related to stock option awards, which are expected to be recognized on a straight-line basis over a weighted-average period of 3.0 years. During the three months ended March 31, 2017, we granted 45 thousand performance restricted stock units to executive officers. These performance restricted stock units vest over a three year period and are subject to certain annual performance targets as defined by our Board of Directors. |
Defined Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans | Note 13—Defined Benefit Plan We maintain a defined benefit pension plan (the "Benefit Plan") covering substantially all of our Wyoming Refining employees. Benefits are based on years of service and the employee’s highest average compensation received during five consecutive years of the last ten years of employment. Our funding policy is to contribute annually an amount equal to the pension expense, subject to the minimum funding requirements of the Employee Retirement Income Security Act of 1974 and the tax deductibility of such contributions. As of March 31, 2017 and December 31, 2016, we had no amounts recorded in accumulated other comprehensive income that are expected to be amortized into net periodic benefit cost in 2017. The Benefit Plan was assumed in connection with the WRC Acquisition on July 14, 2016. The net periodic benefit cost (credit) related to our defined benefit plan includes the following components (in thousands):
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Income (Loss) per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) per Share | Note 14—Income (Loss) per Share Basic income (loss) per share is computed by dividing net income (loss) by the sum of the weighted-average number of common shares outstanding and the weighted-average number of shares issuable under the common stock warrants, representing 352 thousand shares during the three months ended March 31, 2017 and 345 thousand shares during the three months ended March 31, 2016, respectively. The common stock warrants are included in the calculation of basic income (loss) per share because they are issuable for minimal consideration. The following table sets forth the computation of basic and diluted income (loss) per share (in thousands, except per share amounts):
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For the three months ended March 31, 2017, our calculation of dilutive shares outstanding excluded 120 thousand shares of unvested restricted stock and 2.0 million stock options. For the three months ended March 31, 2016, our calculation of diluted shares outstanding excluded 439 thousand shares of unvested restricted stock and 658 thousand stock options, respectively. As discussed in Note 8—Debt, we have the option of settling the 5.00% Convertible Senior Notes in cash or shares of common stock, or any combination thereof, upon conversion. For the three months ended March 31, 2017, diluted income (loss) per share was determined using the if-converted method. |
Income Taxes |
3 Months Ended |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15—Income Taxes In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future results of operations, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, significant book losses during recent prior periods, and projections for future results of operations over the periods in which the deferred tax assets are deductible, among other factors, management continues to conclude that we did not meet the “more likely than not” requirement in order to recognize deferred tax assets and a valuation allowance has been recorded for substantially all of our net deferred tax assets at March 31, 2017. During the three months ended March 31, 2017 and 2016, no adjustments were recognized for uncertain tax positions. Our net taxable income must be apportioned to various states based upon the income tax laws of the states in which we derive our revenue. Our net operating loss ("NOL") carryforwards will not always be available to offset taxable income apportioned to the various states. The states from which our refining, retail, and logistics revenues are derived are not the same states in which our NOLs were incurred; therefore, we expect to incur state tax liabilities on the net income of our refining, retail, and logistics operations. We will continue to assess the realizability of our deferred tax assets based on consideration of actual and projected operating results and tax planning strategies. Should actual operating results continue to improve, the amount of the deferred tax asset considered more likely than not to be realizable could be increased. |
Segment Information |
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Segment Information | Note 16—Segment Information We report the results for the following four business segments: (i) Refining, (ii) Retail, (iii) Logistics, and (iv) Corporate and Other. Beginning in the third quarter of 2016, the results of operations of Wyoming Refining are included in our refining and logistics segments. We have recast the segment information for the three months ended March 31, 2016 to reflect the elimination of the Texadian segment as a reportable segment. As of December 31, 2016, Texadian has ceased its business operations other than maintaining its fleet of railcars. Our Corporate and Other reportable segment now includes administrative costs, our Texadian operations, and several small non-operated oil and gas interests that were owned by our predecessor. Summarized financial information concerning reportable segments consists of the following (in thousands):
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17—Related Party Transactions Equity Group Investments ("EGI") and Whitebox - Service Agreements On September 17, 2013, we entered into letter agreements (“Services Agreements”) with Equity Group Investments (“EGI”), an affiliate of Zell Credit Opportunities Fund, LP ("ZCOF") and Whitebox, each of which owns 10% or more of our common stock directly or through affiliates. Pursuant to the Services Agreements, EGI and Whitebox agreed to provide us with ongoing strategic, advisory and consulting services that may include (i) advice on financing structures and our relationship with lenders and bankers, (ii) advice regarding public and private offerings of debt and equity securities, (iii) advice regarding asset dispositions, acquisitions, or other asset management strategies, (iv) advice regarding potential business acquisitions, dispositions, or combinations involving us or our affiliates or (v) such other advice directly related or ancillary to the above strategic, advisory, and consulting services as may be reasonably requested by us. EGI and Whitebox do not receive a fee for the provision of the strategic, advisory or consulting services set forth in the Services Agreements, but may be periodically reimbursed by us, upon request, for (i) travel and out of pocket expenses, provided that in the event that such expenses exceed $50 thousand in the aggregate with respect to any single proposed matter, EGI or Whitebox, as applicable, will obtain our consent prior to incurring additional costs and (ii) provided that we provide prior consent to their engagement with respect to any particular proposed matter, all reasonable fees and disbursements of counsel, accountants and other professionals incurred in connection with EGI’s or Whitebox’s, as applicable, services under the Services Agreements. In consideration of the services provided by EGI and Whitebox under the Services Agreements, we agreed to indemnify each of them for certain losses incurred by them relating to or arising out of the Services Agreements or the services provided thereunder. The Services Agreements have a term of one year and will be automatically extended for successive one-year periods unless terminated by either party at least 60 days prior to any extension date. There were no significant costs incurred related to these agreements during the three months ended March 31, 2017 or 2016. In October 2015, we terminated our Services Agreement with Whitebox. |
Subsequent Event |
3 Months Ended |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18—Subsequent Events On May 8, 2017, PHR and J. Aron amended the Supply and Offtake Agreements. The amendment, among other things, extended the term of the Supply and Offtake Agreements through May 31, 2021, and provided for a $30 million forward sale by PHR to J. Aron of jet fuel to be delivered to J. Aron over the amended term of the Supply and Offtake Agreements. The amount of jet fuel to be delivered is essentially fixed at an agreed upon price between the two parties. Under the amendment, PHR is permitted to distribute the $30 million proceeds to the Company for general corporate purposes. The Company plans to use the funds for the retirement of existing indebtedness, which currently has a higher cost of capital. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The condensed consolidated financial statements include the accounts of Par and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts previously reported in our condensed consolidated financial statements for prior periods have been reclassified to conform with the current presentation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. The condensed consolidated financial statements contained in this report include all material adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the complete fiscal year or for any other period. The condensed consolidated balance sheet as of December 31, 2016 was derived from our audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. |
Use Of Estimates | Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosures. Actual amounts could differ from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no developments to recent accounting pronouncements, including the expected dates of adoption and estimated effects on our financial condition, results of operations, and cash flows, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016, except for the following: In March 2017, the Financial Accounting Standards Board issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). This ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. ASU 2017-07 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of any annual period for which an entity’s financial statements (interim or annual) have not been issued or made available for issuance. ASU 2017-07 should be applied retrospectively for the presentation of cost components in the income statement and prospectively for the capitalization of the service cost component in assets. We do not expect the adoption of ASU 2017-07 to have a material impact on our financial condition, results of operations, or cash flows. Accounting Principles Adopted On January 1, 2017, we adopted ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The adoption of this ASU did not have a material impact on our financial condition, results of operations, and cash flows. On January 1, 2017, we adopted ASU No. 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting ("ASU 2016-07"). ASU 2016-07 simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. The adoption of this ASU did not have any impact on our financial condition, results of operations, and cash flows. |
Investment in Laramie Energy (Tables) |
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Equity Method Investments | The change in our equity investment in Laramie Energy is as follows (in thousands):
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Equity Method Investees Financial Information | Summarized financial information for Laramie Energy is as follows (in thousands):
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Acquisitions (Tables) |
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Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information presents our consolidated revenues and net income (loss) as if the WRC Acquisition had been completed on January 1, 2015 (in thousands, except per share amounts):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventories at March 31, 2017 consisted of the following (in thousands):
Inventories at December 31, 2016 consisted of the following (in thousands):
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Prepaid and Other Current Assets (Tables) |
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Schedule of Other Current Assets | Prepaid and other current assets at March 31, 2017 and December 31, 2016 consisted of the following (in thousands):
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Debt (Tables) |
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Schedule of Debt | The following table summarizes our outstanding debt (in thousands):
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Derivatives (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following table provides information on the fair value amounts (in thousands) of these derivatives as of March 31, 2017 and December 31, 2016 and their placement within our condensed consolidated balance sheets.
_________________________________________________________
Fair value amounts by hierarchy level as of March 31, 2017 and December 31, 2016 are presented gross in the tables below (in thousands):
_________________________________________________________
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Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table summarizes the pre-tax gains (losses) recognized in Net income (loss) on our condensed consolidated statements of operations resulting from changes in fair value of derivative instruments not designated as hedges charged directly to earnings (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following table provides information on the fair value amounts (in thousands) of these derivatives as of March 31, 2017 and December 31, 2016 and their placement within our condensed consolidated balance sheets.
_________________________________________________________
Fair value amounts by hierarchy level as of March 31, 2017 and December 31, 2016 are presented gross in the tables below (in thousands):
_________________________________________________________
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A roll forward of Level 3 financial instruments measured at fair value on a recurring basis is as follows (in thousands):
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Fair Value and Carrying Value Liabilities Measured On Recurring Basis | The carrying value and fair value of long-term debt and other financial instruments as of March 31, 2017 and December 31, 2016 are as follows (in thousands):
_________________________________________________________
|
Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes our compensation costs recognized in General and administrative expense under the Amended and Restated Par Pacific Holdings, Inc. 2012 Long-term Incentive Plan ("LTIP") and Stock Purchase Plan (in thousands):
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Defined Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The net periodic benefit cost (credit) related to our defined benefit plan includes the following components (in thousands):
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Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Computation Of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted income (loss) per share (in thousands, except per share amounts):
________________________________________________________
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Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Summarized financial information concerning reportable segments consists of the following (in thousands):
________________________________________________________
|
Overview Additional Information (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2017
segment
| |
Schedule of Equity Method Investments [Line Items] | |
Operating segments | 3 |
Laramie Energy Company | |
Schedule of Equity Method Investments [Line Items] | |
Ownership of Piceance Energy, LLC | 42.30% |
Investment in Laramie Energy Change in Equity Investment (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Beginning balance | $ 108,823 | |
Equity earnings from Laramie | 8,746 | $ (1,871) |
Ending balance | 117,569 | |
Laramie Energy Company | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Beginning balance | 108,823 | |
Equity earnings from Laramie | 7,415 | |
Accretion of basis difference | 1,331 | |
Ending balance | $ 117,569 |
Investment in Laramie Energy Summarized Financial Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
ASSETS | |||
Current assets | $ 461,386 | $ 403,108 | |
Current liabilities | 422,509 | 382,765 | |
REVENUE | |||
Income (loss) from operations | 29,189 | $ (19,719) | |
Net income (loss) | 27,786 | (18,673) | |
Laramie Energy Company | |||
ASSETS | |||
Current assets | 10,084 | 12,199 | |
Non-current assets | 654,719 | 655,022 | |
Current liabilities | 41,336 | 58,067 | |
Non-current liabilities | 181,746 | $ 186,631 | |
REVENUE | |||
Natural gas and oil revenues | 40,612 | 14,693 | |
Income (loss) from operations | 1,163 | (11,124) | |
Net income (loss) | $ 17,528 | $ (2,579) |
Acquisitions - Wyoming Refining Company Acquisition (Details) - USD ($) |
1 Months Ended | |
---|---|---|
Jul. 14, 2016 |
Jun. 30, 2016 |
|
Wyoming Refining Company | ||
Business Acquisition [Line Items] | ||
Consideration transferred | $ 209,400,000 | |
Other Long Term Assets | Wyoming Refining Company | ||
Business Acquisition [Line Items] | ||
Acquisition deposit | $ 5,000,000 | |
Secured Debt | Wyoming Refining Company | ||
Business Acquisition [Line Items] | ||
Long-term debt assumed | 58,000,000 | |
Aggregate principal amount | 65,000,000 | |
5% Convertible Senior Notes due 2021 | Convertible Debt | ||
Business Acquisition [Line Items] | ||
Aggregate principal amount | $ 115,000,000 | |
Revolving Credit Facility | Wyoming Refining Company | ||
Business Acquisition [Line Items] | ||
Long-term debt assumed | $ 10,100,000 |
Acquisitions - Pro Forma Financial Information (Details) - Wyoming Refining Company $ / shares in Units, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
$ / shares
| |
Business Acquisition [Line Items] | |
Revenues | $ | $ 438,233 |
Net loss | $ | $ (31,155) |
Earnings (loss) per share | |
Basic (in dollars per shares) | $ / shares | $ (0.76) |
Diluted (in dollars per shares) | $ / shares | $ (0.76) |
Inventories (Detail) - USD ($) |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory [Line Items] | ||
Crude oil and feedstocks | $ 147,519,000 | $ 61,302,000 |
Refined products and blendstock | 124,576,000 | 116,593,000 |
Warehouse stock and other | 20,974,000 | 20,431,000 |
Total | 293,069,000 | 198,326,000 |
Reserves for the lower of cost or market value of inventory | 0 | 200,000 |
Titled Inventory | ||
Inventory [Line Items] | ||
Crude oil and feedstocks | 60,169,000 | 11,620,000 |
Refined products and blendstock | 42,011,000 | 38,916,000 |
Warehouse stock and other | 20,974,000 | 20,431,000 |
Total | 123,154,000 | 70,967,000 |
Supply and Offtake Agreements | ||
Inventory [Line Items] | ||
Crude oil and feedstocks | 87,350,000 | 49,682,000 |
Refined products and blendstock | 82,565,000 | 77,677,000 |
Warehouse stock and other | 0 | 0 |
Total | $ 169,915,000 | $ 127,359,000 |
Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Advances to suppliers for crude oil purchases | $ 7,793 | $ 38,300 |
Collateral posted with broker for derivative instruments | 3,190 | 2,714 |
Prepaid insurance | 5,088 | 7,504 |
Derivative assets | 3,437 | 161 |
Other | 5,138 | 4,701 |
Total | $ 24,646 | $ 53,380 |
Debt - Wyoming Refining Credit Facilities (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Term Loan | Wyoming Refining Senior Secured Term Loan | |
Debt Instrument [Line Items] | |
Periodic payment, principal | $ 2.3 |
Revolving Credit Facility | Wyoming Refining Senior Secured Revolver | |
Debt Instrument [Line Items] | |
Line credit maximum borrowing amount | $ 30.0 |
Debt - Convertible Senior Note (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 386,449 | $ 400,420 |
5% Convertible Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | 115,000 | 115,000 |
Convertible Debt | 5% Convertible Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Unamortized discount (premium) and debt issuance costs, net | 22,900 | |
Reported Value Measurement | 5% Convertible Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 92,101 | $ 91,029 |
Debt - Guarantors (Detail) |
Sep. 16, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Debt instruments, initial offering price | $ 750,000,000 |
Derivatives - Schedule of Pre-Tax Gain (Loss) Recognized in the Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Commodity derivatives | Cost of revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cost of revenues | $ (6,367) | $ (6,855) |
J. Aron repurchase obligation derivative | Cost of revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cost of revenues | 10,607 | (22,976) |
J. Aron repurchase obligation derivative | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cost of revenues | $ 110 | $ (756) |
Fair Value Measurements - Common Stock Warrants (Details) - $ / shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average exercise price (in usd per share) | $ 0.09 | $ 0.10 |
Term (years) | 5 years 5 months 2 days | 5 years 8 months |
Fair value of common stock warrants (in usd per share) | $ 16.43 | $ 14.49 |
Warrant | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Common stock warrants outstanding (in shares) | 354,350 | 354,350 |
Fair Value Measurements - Derivative Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, at beginning of period | $ (25,134) | $ (25,867) |
Settlements | 0 | 1,084 |
Total unrealized income (loss) included in earnings | 9,919 | (15,155) |
Balance, at end of period | $ (15,215) | $ (39,938) |
Stockholders' Equity Schedule of Compensation Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Restricted Stock | ||
Class of Stock [Line Items] | ||
Compensation cost | $ 1,703 | $ 684 |
Restricted Stock Units (RSUs) | ||
Class of Stock [Line Items] | ||
Compensation cost | 84 | 1,062 |
Employee Stock Option | ||
Class of Stock [Line Items] | ||
Compensation cost | $ 750 | $ 441 |
Stockholders' Equity (Details Textual) (Detail) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
$ / shares
shares
| |
Restricted Stock | |
Class of Stock [Line Items] | |
Shares of restricted stock granted (in shares) | shares | 223 |
Grants in the period, aggregate fair value | $ | $ 3.4 |
Unrecognized compensation costs related to restricted stock awards | $ | $ 7.8 |
Weighted average period of recognition | 2 years 11 months 12 days |
Employee Stock Option | |
Class of Stock [Line Items] | |
Unrecognized compensation costs related to restricted stock awards | $ | $ 5.2 |
Weighted average period of recognition | 2 years 11 months 23 days |
Options, granted (in shares) | shares | 239 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 15.03 |
Performance Restricted Stock Units | |
Class of Stock [Line Items] | |
Options, granted (in shares) | shares | 45 |
Award vesting period | 3 years |
Defined Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Amount to be amortized from accumulated other comprehensive income | $ 0 | $ 0 | |
Components of net periodic benefit cost (credit): | |||
Service cost | 153,000 | $ 0 | |
Interest cost | 298,000 | 0 | |
Expected return on plan assets | (297,000) | 0 | |
Net periodic benefit cost | $ 154,000 | $ 0 |
Related Party Transaction (Textual) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Sep. 17, 2013 |
|
Related Party Transaction [Line Items] | ||
Percentage ownership of Par common stock | 10.00% | |
Travel and out of pocket expenses | $ 50 | |
Investor | ||
Related Party Transaction [Line Items] | ||
Initial term of service agreements | 1 year | |
Renewal term for service agreements | 1 year | |
Termination period between extension date | 60 days |
Subsequent Event (Details) $ in Millions |
May 08, 2017
USD ($)
|
---|---|
Supply and Offtake Agreements | Subsequent Event | |
Subsequent Event [Line Items] | |
Forward sale proceed amount | $ 30 |
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