Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | PAR PETROLEUM CORP/CO | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 821,483 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 37,109,496 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 78,203 | $ 89,210 |
Restricted cash | 748 | 749 |
Trade accounts receivable | 68,879 | 112,968 |
Inventories | 273,630 | 243,853 |
Prepaid and other current assets | 15,423 | 14,009 |
Total current assets | 436,883 | 460,789 |
Property and equipment | ||
Property, plant and equipment | 207,054 | 123,323 |
Proved oil and gas properties, at cost, successful efforts method of accounting | 1,122 | 1,122 |
Total property and equipment | 208,176 | 124,445 |
Less accumulated depreciation, depletion and amortization | (17,905) | (11,510) |
Property and equipment, net | 190,271 | 112,935 |
Long-term assets | ||
Investment in Piceance Energy, LLC | 127,410 | 104,657 |
Intangible assets, net | 39,529 | 7,506 |
Goodwill | 50,101 | 20,786 |
Other long-term assets | 20,050 | 34,334 |
Total assets | 864,244 | 741,007 |
Current liabilities | ||
Current maturities of long-term debt | 43,373 | 29,100 |
Obligations under inventory financing agreements | 267,707 | 197,394 |
Accounts payable | 22,830 | 33,064 |
Current portion of contingent consideration | 15,506 | 0 |
Other accrued liabilities | 40,883 | 51,248 |
Total current liabilities | 390,299 | 310,806 |
Long-term liabilities | ||
Long-term debt, net of current maturities and unamortized discount | 128,034 | 107,510 |
Common stock warrants | 13,832 | 12,123 |
Contingent consideration | 8,049 | 9,131 |
Contingent consideration | 1,272 | 1,295 |
Other liabilities | 15,690 | 7,983 |
Total liabilities | $ 557,176 | $ 448,848 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value: 3,000,000 shares authorized, none issued | $ 0 | $ 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized at June 30, 2015 and December 31, 2014, 37,102,629 shares and 37,068,886 shares issued at June 30, 2015 and December 31, 2014, respectively | 371 | 371 |
Additional paid-in capital | 430,011 | 427,287 |
Accumulated other comprehensive loss | (122,868) | (135,053) |
Accumulated deficit | (446) | (446) |
Total stockholders’ equity | 307,068 | 292,159 |
Total liabilities and stockholders’ equity | $ 864,244 | $ 741,007 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd 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) | 102,629 | 37,068,886 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Refining and distribution revenues | $ 475,987 | $ 711,696 | $ 949,559 | $ 1,381,739 |
Retail revenues | 80,938 | 59,419 | 127,657 | 111,250 |
Commodity marketing and logistics revenues | 25,125 | 29,183 | 47,969 | 48,978 |
Natural gas and oil revenues | 1,709 | 1,839 | 2,185 | 3,416 |
Total operating revenues | 583,759 | 802,137 | 1,127,370 | 1,545,383 |
Operating expenses | ||||
Cost of revenues | 505,031 | 779,301 | 982,537 | 1,492,350 |
Operating expense, excluding depreciation, depletion and amortization expense | 32,471 | 34,074 | 64,751 | 67,168 |
Lease operating expense | 1,508 | 1,700 | 3,039 | 2,759 |
Depreciation, depletion and amortization | 5,005 | 3,290 | 8,256 | 6,351 |
General and administrative expense | 11,814 | 5,733 | 21,939 | 10,667 |
Acquisition and integration expense | 470 | 2,419 | 1,531 | 5,270 |
Total operating expenses | 556,299 | 826,517 | 1,082,053 | 1,584,565 |
Operating income (loss) | 27,460 | (24,380) | 45,317 | (39,182) |
Other income (expense) | ||||
Interest expense and financing costs, net | (5,825) | (3,397) | (6,904) | |
Loss on termination of financing agreements | (19,229) | 0 | (19,229) | 0 |
Other income (expense), net | (158) | (95) | (154) | (140) |
Change in value of common stock warrants | 3,313 | 140 | (1,709) | 1,717 |
Change in value of contingent consideration | (9,495) | 2,297 | (14,424) | 4,762 |
Equity earnings (losses) from Piceance Energy, LLC | (2,950) | 760 | (4,776) | 539 |
Total other income (expense), net | (34,344) | (295) | (51,674) | (26) |
Loss before income taxes | (6,884) | (24,675) | (6,357) | (39,208) |
Income tax benefit (expense) | 18,607 | (2) | 18,542 | (37) |
Net income (loss) | $ 11,723 | $ (24,677) | $ 12,185 | $ (39,245) |
Earnings (loss) per share | ||||
Income (loss) per common share, basic (USD per share) | $ 0.31 | $ (0.81) | $ 0.32 | $ (1.29) |
Income (loss) per common share, diluted (USD per share) | $ 0.31 | $ (0.81) | $ 0.32 | $ (1.29) |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 37,339 | 30,406 | 37,261 | 30,388 |
Diluted (in shares) | 37,363 | 30,406 | 37,319 | 30,388 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 12,185 | $ (39,245) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||
Depreciation, depletion, and amortization | 8,256 | 6,351 |
Loss on termination of financing agreements | 19,229 | 0 |
Non-cash interest expense | 9,488 | 4,877 |
Change in value of common stock warrants | 1,709 | (1,717) |
Change in value of contingent consideration | 14,424 | (4,762) |
Deferred taxes | (18,542) | (79) |
Stock-based compensation | 2,976 | 1,610 |
Unrealized loss on derivative contracts | 426 | 191 |
Equity (earnings) losses from Piceance Energy, LLC | 4,776 | (539) |
Net changes in operating assets and liabilities: | ||
Trade accounts receivable | 52,989 | 19,914 |
Prepaid and other assets | (4,704) | (50,575) |
Inventories | (22,257) | (28,748) |
Obligations under inventory financing agreements | 45,711 | 5,478 |
Accounts payable and other accrued liabilities | (28,055) | 14,064 |
Net cash provided by (used in) operating activities | 98,611 | (73,180) |
Cash flows from investing activities | ||
Acquisition of Koko'oha Investments, LLC, net of cash acquired | (63,269) | (10,000) |
Capital expenditures | (9,873) | (5,909) |
Payment for working capital settlement on HIE acquisition | 0 | (582) |
Investment in Piceance Energy, LLC | (27,529) | 0 |
Net cash used in investing activities | (100,671) | (16,491) |
Cash flows from financing activities | ||
Proceeds from sale of common stock | 300 | 0 |
Proceeds from borrowings | 90,900 | 197,537 |
Repayments of borrowings | (107,558) | (173,905) |
Net repayments on deferred payment arrangement | (770) | 0 |
Payment of deferred loan costs | (5,872) | (1,136) |
Purchase of common stock for retirement | 0 | (287) |
Proceeds from inventory financing agreements | 287,658 | 47,200 |
Payments for termination of supply and exchange agreements | (273,605) | 0 |
Restricted cash released | 0 | 52 |
Net cash provided by (used in) financing activities | (8,947) | 69,461 |
Net decrease in cash and cash equivalents | (11,007) | (20,210) |
Cash at beginning of period | 89,210 | 38,061 |
Cash at end of period | 78,203 | 17,851 |
Supplemental cash flow information | ||
Cash received (paid) for interest | (1,224) | (2,027) |
Cash received (paid) for taxes | 262 | 235 |
Non-cash investing and financing activities | ||
Accrued capital expenditures | $ 1,687 | $ 1,379 |
Overview
Overview | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Overview | Note 1—Overview We are an integrated refiner and marketer based in Houston, Texas. Currently, we operate in four segments: (i) refining and distribution, (ii) retail, (iii) natural gas and oil production, and (iv) commodity marketing and logistics. Our refining and distribution segment consists of a refinery in Kapolei, Hawaii, refined products terminals, pipelines, a single-point mooring and trucking operations. The refinery produces ultra-low sulfur diesel, gasoline, jet fuel, marine fuel, and other associated refined products primarily for consumption in Hawaii. Our retail segment consists of retail outlets which sell gasoline, diesel, and retail merchandise throughout Hawaii. Our retail network includes Tesoro and "76" branded retail sites, company-operated convenience stores, sites operated in cooperation with 7-Eleven and other sites operated by third parties. Our natural gas and oil production segment consists of natural gas and oil assets that are non-operated and are concentrated in our 34.0% ownership of Piceance Energy, LLC ("Piceance Energy"), a joint venture entity focused on producing natural gas in Garfield and Mesa Counties, Colorado. In addition, we own non-operated interests in Colorado and offshore California, and an overriding royalty interest in New Mexico. Our interests are heavily weighted towards natural gas and natural gas liquids. Our commodity marketing and logistics segment focuses on sourcing, marketing, transporting, and distributing crude oil and refined products. Our logistics capability consists of historical pipeline shipping status, a leased railcar fleet, and chartering tows and barges, with the capability of moving crude oil from landlocked locations in the Western U.S. and Canada to the refining hubs in the Midwest, Gulf Coast, and East Coast regions of the U.S. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Par Petroleum Corporation ("Par") and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts from prior periods have been reclassified to conform to the current presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and 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 unaudited 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. 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, 2014 was derived from our audited consolidated financial statements as of that date. These unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in our Current Report on Form 8-K filed on May 22, 2015. Use of Estimates The preparation of 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. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Significant estimates include the fair value of certain assets and liabilities, including those acquired in business combinations, natural gas and oil reserves, income taxes and the valuation allowances related to deferred tax assets, derivatives, asset retirement obligations, contingencies and litigation accruals. Accounting Principles Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). The FASB’s objective was to provide a more robust framework to improve comparability of revenue recognition practices across entities by removing most industry and transaction specific guidance, align GAAP with International Financial Reporting Standards, and provide more useful information to financial statement users. This authoritative guidance changes the way entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. ASU No. 2014-09 allows for either full retrospective adoption or modified retrospective adoption. We are in the process of determining the method of adoption and the impact this guidance will have on our financial condition, results of operations and cash flows. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2016 and early adoption is permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our financial condition, results of operations and cash flows. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 changes the consolidation analysis required under GAAP. ASU 2015-02 eliminates the presumption that a general partner should consolidate a limited partnership and modifies the evaluation of whether limited partnerships are Variable Interest Entities or voting interest entities. Under the amended guidance, limited partners would be required to consolidate a partnership if the limited partner retains certain powers and obligations. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods beginning after December 15, 2017. ASU 2015-02 allows for either full retrospective adoption or modified retrospective adoption. Early adoption is permitted, but the guidance must be applied as of the beginning of the annual period containing the adoption date. We are in the process of determining the method of adoption and the impact this guidance will have on our financial condition, results of operations and cash flows. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 changes the balance sheet classification of debt issuance costs. Under current GAAP, debt issuance costs are reported on the balance sheet as assets and amortized as interest expense. ASU 2015-03 requires that debt issuance costs be presented as a direct reduction from the carrying amount of the related debt liability, which is similar to the presentation of debt discounts or premiums. Debt issuance costs will continue to be amortized to interest expense using the effective interest method. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2015. ASU 2015-03 should be adopted on a retrospective basis and early adoption is permitted. As of June 30, 2015 and December 31, 2014 , we had $8.6 million and $13.2 million of debt issuance costs included in Other long-term assets on our unaudited condensed consolidated balance sheets, respectively. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2016. ASU 2015-11 should be adopted prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Our commodity inventories are currently stated at the lower of cost or market value using the first-in, first-out accounting method. We value merchandise, spare parts, materials, and supplies at average cost. We are currently evaluating the provisions and assessing the impact, if any, this amendment may have on our financial position and results of operations. |
Investment in Piceance Energy
Investment in Piceance Energy | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Piceance Energy | Note 3—Investment in Piceance Energy We have a 34.0% ownership interest in Piceance Energy, a joint venture entity focused on producing natural gas in Garfield and Mesa Counties, Colorado. Piceance Energy has a $400 million revolving credit facility secured by a lien on its natural gas and oil properties and related assets with a borrowing base currently set at $110 million . As of June 30, 2015 , the balance outstanding on the revolving credit facility was approximately $48.5 million . We are guarantors of Piceance 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, Piceance Energy is generally prohibited from making future cash distributions to its owners, including us. On March 9, 2015 , we amended the Limited Liability Company Agreement of Piceance Energy LLC ("LLC Agreement") and made a cash capital contribution of $13.8 million to Piceance Energy. On May 29, 2015 , we made an additional cash capital contribution of $13.8 million . As a result of our contributions to Piceance Energy, our ownership interest increased from 33.34% to 34.0% . The change in our equity investment in Piceance Energy is as follows (in thousands): Six Months Ended Beginning balance $ 104,657 Equity loss from Piceance Energy (5,186 ) Accretion of basis difference 410 Capital contributions 27,529 Ending balance $ 127,410 Summarized financial information for Piceance Energy is as follows (in thousands): June 30, 2015 December 31, 2014 Current assets $ 6,396 $ 13,168 Non-current assets 481,955 468,379 Current liabilities 16,347 17,103 Non-current liabilities 55,118 107,087 Three Months Ended Three Months Ended Six Months Ended Six Months Ended Natural gas and oil revenues $ 10,486 $ 20,725 $ 21,223 $ 40,968 Income (loss) from operations (8,207 ) 1,989 (15,286 ) 5,598 Net income (loss) (9,329 ) 1,815 (15,409 ) 724 The net loss for the three and six months ended June 30, 2015 includes $8.4 million and $15.8 million of depreciation, depletion, and amortization ("DD&A") expense and $3.7 million and $4.4 million of unrealized losses on derivative instruments, respectively. The net income for the three and six months ended June 30, 2014 includes $8.6 million and $15.3 million of DD&A and $1.7 million and $157 thousand of unrealized losses on derivative instruments, respectively. As of June 30, 2015 and December 31, 2014 , our equity in the underlying net assets of Piceance Energy exceeded the carrying value of our investment by approximately $14.3 million and $14.7 million , respectively. This difference arose due to lack of control and marketability discounts. We attributed this difference to natural gas and oil properties and are amortizing the difference over 15 years based on the estimated proved reserves at the date Piceance Energy was formed. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Note 4—Acquisition On June 2, 2014 , we and our subsidiary entered into an agreement to acquire Koko’oha Investments, Inc. ("Koko'Oha"), a Hawaii corporation, which owns 100% of the issued and outstanding membership interests in Mid Pac Petroleum, LLC, a Delaware limited liability company (“Mid Pac”). Mid Pac is the exclusive licensee of the “76” brand in the State of Hawaii and the owner/operator of several terminals and retail gasoline stations across Hawaii. On April 1, 2015 , we completed the acquisition of Mid Pac for net cash consideration of $73.3 million . The amount paid at closing, net of cash acquired, was $58.3 million . The cash consideration also includes advance deposits of $15.0 million , of which $10 million was paid in 2014, paid prior to closing. In connection with the acquisition, Mid Pac's pre-existing debt of $45.3 million , was fully repaid on the closing date. The acquisition and debt repayment were funded with cash on hand and $55 million of borrowings under the Credit Agreement with the Bank of Hawaii ("Mid Pac Credit Agreement"). Please read Note 8—Debt for further discussion. We accounted for the acquisition of Mid Pac 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 acquisition. Goodwill recognized in the transaction was attributable to opportunities expected to arise from combining our operations with Mid Pac's, and utilization of our net operating loss carryforwards, as well as other intangible assets that do not qualify for separate recognition. In addition, we recorded certain other identifiable intangible assets including trade names and customer relationships. These intangible assets will be amortized over their estimated useful lives on a straight line basis, which approximates their consumptive life. Please read Note 6—Goodwill and Intangible Assets for further discussion. A summary of the preliminary estimated fair value of the assets acquired and liabilities assumed is as follows (in thousands): Cash $ 10,007 Trade accounts receivable 9,914 Inventories 5,398 Prepaid and other current assets 1,449 Property, plant and equipment 39,821 Land 34,800 Goodwill 29,315 Intangible assets 33,647 Other non-current assets 1,228 Accounts payable and other current liabilities (11,149 ) Deferred tax liability (18,687 ) Other non-current liabilities (7,171 ) Total $ 128,572 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 2016. The primary areas of the purchase price allocation that are not yet finalized relate to income taxes, the working capital settlement, and contingent liabilities. As of December 31, 2014 , we had $10 million in deposits related to the Mid Pac acquisition included in Other long-term assets on our unaudited condensed consolidated balance sheets. The results of operations of Mid Pac are only included in our results beginning April 1, 2015 . For the three and six month periods ended June 30, 2015 , our results of operations included revenues and net income of $53.6 million and $2.8 million , respectively, related to Mid Pac. The following unaudited pro forma financial information presents our consolidated revenues and net income (loss) as if the Mid Pac acquisition had been completed on January 1, 2014 (in thousands): Three Months Ended Six Months Ended Six Months Ended Revenues $ 870,156 $ 1,154,620 $ 1,672,911 Net income (loss) (23,685 ) 4,671 (21,261 ) |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5—Inventories Inventories at June 30, 2015 consist of the following (in thousands): Titled Inventory Supply and Offtake Agreements (1) Total Crude oil and feedstocks $ 7,817 $ 86,396 $ 94,213 Refined products and blend stock 34,116 128,080 162,196 Warehouse stock and other 17,221 — 17,221 Total $ 59,154 $ 214,476 $ 273,630 Inventories at December 31, 2014 consist of the following (in thousands): Titled Inventory Supply and Exchange Agreements (1) Total Crude oil and feedstocks $ 17,924 $ 62,594 $ 80,518 Refined products and blend stock 29,998 118,375 148,373 Warehouse stock and other 14,962 — 14,962 Total $ 62,884 $ 180,969 $ 243,853 ________________________________________________________ (1) Please read Note 7—Inventory Financing Agreements for further information. The reserve for the lower of cost or market value of inventory was $310 thousand and $ 2.4 million as of June 30, 2015 and December 31, 2014, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6—Goodwill and Intangible Assets During the six months ended June 30, 2015 , the change in the carrying amount of goodwill was as follows (in thousands): Balance at beginning of period $ 20,786 Acquisition of Koko'oha (1) 29,315 Balance at end of period $ 50,101 ________________________________________________________ (1) Please read Note 4—Acquisition for further discussion. Intangible assets consist of the following (in thousands): June 30, 2015 December 31, 2014 Intangible assets: Supplier relationships $ 3,360 $ 3,360 Railcar leases 3,249 3,249 Trade names and trademarks 6,267 4,689 Customer relationships 32,069 — Total intangible assets $ 44,945 $ 11,298 Accumulated amortization: Supplier relationships $ (645 ) $ (516 ) Railcar leases (1,626 ) (1,301 ) Trade name and trademarks (2,751 ) (1,975 ) Customer relationships (394 ) — Total accumulated amortization $ (5,416 ) $ (3,792 ) Net: Supplier relationships $ 2,715 $ 2,844 Railcar leases 1,623 1,948 Trade name and trademarks 3,516 2,714 Customer relationships 31,675 — Total intangible assets, net $ 39,529 $ 7,506 Amortization expense was approximately $1.0 million and $1.6 million for the three and six months ended June 30, 2015 , respectively. Amortization expense was approximately $0.9 million and $1.8 million for the three and six months ended June 30, 2014 , respectively. Intangible assets acquired from Mid Pac have an average useful life of 13.6 years . Expected amortization expense for each of the next five years and thereafter is as follows (in thousands): Year Ended Amount 2015 $ 2,650 2016 4,781 2017 3,632 2018 2,982 2019 2,982 Thereafter 22,502 $ 39,529 |
Inventory Financing Agreements
Inventory Financing Agreements | 6 Months Ended |
Jun. 30, 2015 | |
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 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 the refinery. Additionally, we agreed to sell, and J. Aron agreed to buy, at market prices, refined products produced at the refinery. We will then repurchase the refined products from J. Aron prior to selling the refined products to our retail operations or third parties. The agreements also provide for the lease to J. Aron of crude oil and certain refined product storage facilities. Following expiration or termination of the 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 agreements are secured by a security interest on substantially all of the assets of Hawaii Independent Energy, LLC ("HIE"), a security interest on the equity interests held by our wholly-owned subsidiary, Hawaii Pacific Energy, LLC in HIE and a mortgage whereby HIE granted to J. Aron a lien on all real property and improvements owned by HIE, including our refinery. While title to the crude oil and certain refined product inventories will reside with J. Aron, the Supply and Offtake Agreements will be accounted for as a product financing arrangement; therefore, the crude oil and refined products inventories will continue to be included on our consolidated balance sheet 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 June 30, 2015 , we incurred approximately $ 1.5 million in handling fees related to the Supply and Offtake Agreements, which is included in Cost of revenues on our unaudited condensed consolidated statements of operations. For the three months ended June 30, 2015 , Interest expense and financing costs, net on our unaudited condensed consolidated statements of operations includes approximately $0.1 million 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 unaudited condensed consolidated balance sheet. Changes in the amount outstanding under the Deferred Payment Arrangement are included within cash flows from financing activities on the unaudited consolidated statement of cash flows. As of June 30, 2015, the capacity of the Deferred Payment Arrangement was $78.2 million and we had $36.0 million outstanding. The agreements also provide us with the ability to hedge price risk on our inventories and crude oil purchases. Please read Note 9—Fair Value Measurements for further information. Supply and Exchange Agreements HIE entered into several agreements with Barclays Bank PLC ("Barclays"), referred to collectively as the Supply and Exchange Agreements, on September 25, 2013 in connection with the acquisition of HIE for the purpose of managing its working capital and the crude oil and refined product inventory at the refinery. Effective July 31, 2014, HIE supplemented the Supply and Exchange Agreements by entering into the Refined Product Supply Master Confirmation, pursuant to which Barclays may provide refined product supply and intermediation arrangements to HIE. Pursuant to the Supply and Exchange Agreements, Barclays held title to all of the crude oil in the tanks at the refinery and to a majority of our refined product inventory in our tanks at the refinery. Barclays also prepaid us for certain inventory held at locations outside of our refinery. We held title to the inventory during the refining process. Barclays sold the crude oil to us as it was discharged out of the refinery's tanks. We exchanged refined product owned by Barclays stored in our tanks for equal volumes of refined product produced by our refinery when we executed third-party sales of refined product. For the three and six months ended June 30, 2015 , we incurred approximately $ 3.1 million and $6.9 million in handling fees related to the Supply and Exchange Agreements, respectively, which are included in Cost of revenues on our unaudited condensed consolidated statements of operations. For the three and six months ended June 30, 2014 , we incurred approximately $3.9 million and $7.4 million in handling fees related to the Supply and Exchange Agreements, respectively. For each of the three and six months ended June 30, 2015 , Interest expense and financing costs, net on our unaudited condensed consolidated statements of operations includes approximately $0.9 million and $2.3 million of expenses related to the Supply and Exchange Agreements. Interest expense and financing costs, net on our unaudited condensed consolidated statements of operations includes approximately $1.4 million and $2.8 million for the three and six months ended June 30, 2014 . Upon execution of the Supply and Offtake Agreements, HIE terminated the Supply and Exchange Agreements with Barclays, subject to certain obligations to reimburse Barclays for third-party claims. We recognized a loss of $17.4 million on the termination of the agreement which consists of a loss of $13.3 million for the cash settlement value of the liability which had previously been measured assuming settlement with inventory on hand and a loss of $5.6 million for the acceleration of deferred financing costs related the Supply and Exchange Agreements. These losses were partially offset by a $1.5 million exit fee received from Barclays. The net loss of $17.4 million related to the termination of the Supply and Exchange Agreements is included in Loss on termination of financing agreements on our unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2015 . The cash paid to settle the obligation is included in Payments for termination of supply and exchange agreements in the Cash flows from financing activities section of our unaudited condensed statements of cash flows for the six months ended June 30, 2015 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 3.50x 250 50 The Mid Pac Revolving Credit Facility applicable margin is as specified below: Leverage Ratio Applicable Margin for LIBOR Loans Applicable Margin for Basis Rate Loans (basis points) (basis points) < 3.00x 175 (25) 3.00x - 3.50x 200 — > 3.50x 225 25 Mid Pac agreed to pay certain fees in connection with the Mid Pac Credit Agreement, including usage fees for trade letters of credit and commitment fees for standby letters of credit issued under the Mid Pac Revolving Credit Facility. Pursuant to the Mid Pac Credit Agreement, Mid Pac is required to comply with various affirmative and negative covenants affecting its business and operations, including compliance with a minimum fixed charge coverage ratio of not less than 1.15 to 1.00, a minimum tangible net worth of $12.0 million , and a maximum leverage ratio determined as follows: Period (during and as of last day of) Maximum Leverage Ratio June 30, 2015 5.50 to 1.00 September 30, 2015 5.25 to 1.00 December 31, 2015 5.00 to 1.00 2016 fiscal year 4.75 to 1.00 2017 fiscal year 4.25 to 1.00 2018 fiscal year 4.00 to 1.00 2019 fiscal year 3.50 to 1.00 2020 fiscal year, and at all times thereafter 3.25 to 1.00 ABL Facility On September 25, 2013 and in connection with the acquisition of HIE, HIE and its subsidiary (“ABL Borrowers”) and Hawaii Pacific Energy entered into an asset-based senior secured revolving credit facility (“ABL Facility”) of up to $125 million , of which up to $50 million of availability under the ABL Facility was available for the issuances of letters of credit. The ABL Facility was secured by a lien on substantially all of HIE’s assets. Upon the execution of the Supply and Offtake Agreements, we repaid in full and terminated the ABL Facility and expensed $1.8 million of financing costs associated with the termination of the agreement. The expense of $1.8 million related to the termination of the ABL Facility is included within Loss on termination of financing agreements on our unaudited consolidated statements of operations for the three and six months ended June 30, 2015. Guarantors In connection with our shelf registration statement on Form S-3, which was filed with the SEC on June 1, 2015 and declared effective on June 23, 2015 (“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”). The Company has 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 the Company, whether by cash dividends, loans or advances." id="sjs-B4">Note 8—Debt The following table summarizes our outstanding debt (in thousands): June 30, 2015 December 31, 2014 Term Loan $ 93,521 $ 87,360 HIE Retail Credit Agreement 28,928 22,750 Texadian Uncommitted Credit Agreement — 26,500 Mid Pac Credit Agreement 48,958 — Total debt, net of unamortized debt discount 171,407 136,610 Less current maturities (43,373 ) (29,100 ) Long-term debt, net of current maturities and unamortized discount $ 128,034 $ 107,510 Annual maturities of our long-term debt for the next five years and thereafter are as follows (in thousands): Year Amount Due 2015 $ 4,226 2016 47,540 2017 8,452 2018 62,886 2019 8,452 Thereafter 39,851 $ 171,407 Additionally, as of June 30, 2015 , we had approximately $16.3 million in letters of credit outstanding under the Texadian Uncommitted Credit Agreement. Term Loan Pursuant to the terms of our Delayed Draw Term Loan Agreement (the "Term Loan"), we were required to repay an advance of $35 million on March 31, 2015. On March 11, 2015, we entered into a Third Amendment to the Term Loan whereby we extended the repayment date of the advance to March 31, 2016. All other terms and conditions remain unchanged. Certain lenders under the Term Loan are our stockholders. Please read Note 16—Related Party Transactions for more information. Retail Credit Agreement On November 14, 2013, HIE Retail, LLC (“HIE Retail”), our subsidiary, entered into a Credit Agreement (“Retail Credit Agreement”) in the form of a senior secured term loan of up to $30 million (“Retail Term Loan”) and a senior secured revolving line of credit of up to $5 million (“Retail Revolver”). Loans made under the Retail Credit Agreement are secured by a first priority security interest in substantially all of the assets of HIE Retail. On May 15, 2015, HIE Retail entered into a Second Amendment to the Retail Credit Agreement ("Second Amendment") pursuant to which we terminated the Retail Revolver and extended the maturity date of the existing Retail Term Loans in the aggregate principal amount of $22 million until March 31, 2022. In connection with the entry into the Second Amendment, the Retail Facility lenders made additional term loans to HIE Retail in the aggregate principal amount of $7.9 million . The New Term Loans were made on the same terms as the term loans previously made under the Retail Credit Agreement, as amended by the Second Amendment. The Second Amendment also provides that if a prepayment of the amounts outstanding under the Retail Credit Agreement occurs as a result of HIE Retail obtaining refinancing from any financial institution (including from less than all of the Retail Facility Lenders), HIE Retail shall pay a prepayment fee equal to 1% of the amount prepaid. Prior to the entry into the Second Amendment, there were no revolving loans outstanding and no letters of credit issued under the Retail Credit Agreement. The Second Amendment includes a new covenant that requires HIE Retail to maintain cash on hand of not less than $3 million at all times. In addition, the Second Amendment modifies the financial covenant relating to HIE Retail’s maximum Leverage Ratio (as defined in the Retail Credit Agreement), which is measured on a quarterly basis commencing with the fiscal quarter ending June 30, 2015 and building up to a rolling four-quarter basis, as follows for the last day of each fiscal year: Period (during and as of the last day of) Maximum Leverage Ratio 2015 Fiscal Year 5.00 to 1.00 2016 Fiscal Year 4.75 to 1.00 2017 Fiscal Year 4.50 to 1.00 2018 Fiscal Year 4.25 to 1.00 2019 Fiscal Year, and at all times thereafter 4.00 to 1.00 Texadian Uncommitted Credit Agreement On February 20, 2015, Texadian Energy, Inc. ("Texadian"), and its wholly-owned subsidiary Texadian Energy Canada Limited, amended and restated the uncommitted credit agreement. The amended agreement increased the uncommitted loans and letters of credit capacity to $200 million and extended the maturity date to February 2016. Existing Debt Obligations of Koko'oha and Mid Pac On April 1, 2015, in connection with the acquisition of Mid Pac, we repaid certain existing debt obligations of Koko'oha and Mid Pac for $45.3 million . Mid Pac Credit Agreement On April 1, 2015, Koko’oha and Mid Pac entered into the Mid Pac Credit Agreement in the form of a senior secured term loan in the amount of $50.0 million (“Mid Pac Term Loan”) and a senior secured revolving line of credit (“Mid Pac Revolving Credit Facility”) in the aggregate principal amount of up to $5.0 million . The lenders of the Mid Pac Credit Agreement advanced the full amount of the Mid Pac Term Loan and the Mid Pac Revolving Credit Facility at the closing. The proceeds of the loans were used to repay certain existing debt of Koko’oha and Mid Pac, pay a portion of the acquisition consideration and for general corporate purposes. The Mid Pac Term Loan matures and is fully payable on April 1, 2022. Principal on the term loan will be repaid in 28 equal quarterly principal payments over the term. The revolving credit facility matures on April 1, 2018 and no more than five borrowings consisting of LIBOR loans may be outstanding at any time. Letters of credit issued under the revolving credit facility are not to expire beyond the maturity date of the revolving credit facility. The Mid Pac Term Loan and advances under the Mid Pac Revolving Credit Facility will bear interest, at the Company's election, at a rate equal to (a) 30, 90 or 180 day LIBOR plus the applicable margin (as specified below), or (ii) the primary interest rate established from time to time by Bank of Hawaii plus a margin. For both LIBOR and primary interest rate loans, the margin is calculated based on the leverage ratio determined as of the last day of the immediately preceding quarter. Interest is payable at the end of the selected interest period, but no less frequently than quarterly. The Mid Pac Term Loan applicable margin is as specified below: Leverage Ratio Applicable Margin for LIBOR Loans Applicable Margin for Basis Rate Loans (basis points) (basis points) < 3.00x 200 — 3.00x - 3.50x 225 25 > 3.50x 250 50 The Mid Pac Revolving Credit Facility applicable margin is as specified below: Leverage Ratio Applicable Margin for LIBOR Loans Applicable Margin for Basis Rate Loans (basis points) (basis points) < 3.00x 175 (25) 3.00x - 3.50x 200 — > 3.50x 225 25 Mid Pac agreed to pay certain fees in connection with the Mid Pac Credit Agreement, including usage fees for trade letters of credit and commitment fees for standby letters of credit issued under the Mid Pac Revolving Credit Facility. Pursuant to the Mid Pac Credit Agreement, Mid Pac is required to comply with various affirmative and negative covenants affecting its business and operations, including compliance with a minimum fixed charge coverage ratio of not less than 1.15 to 1.00, a minimum tangible net worth of $12.0 million , and a maximum leverage ratio determined as follows: Period (during and as of last day of) Maximum Leverage Ratio June 30, 2015 5.50 to 1.00 September 30, 2015 5.25 to 1.00 December 31, 2015 5.00 to 1.00 2016 fiscal year 4.75 to 1.00 2017 fiscal year 4.25 to 1.00 2018 fiscal year 4.00 to 1.00 2019 fiscal year 3.50 to 1.00 2020 fiscal year, and at all times thereafter 3.25 to 1.00 ABL Facility On September 25, 2013 and in connection with the acquisition of HIE, HIE and its subsidiary (“ABL Borrowers”) and Hawaii Pacific Energy entered into an asset-based senior secured revolving credit facility (“ABL Facility”) of up to $125 million , of which up to $50 million of availability under the ABL Facility was available for the issuances of letters of credit. The ABL Facility was secured by a lien on substantially all of HIE’s assets. Upon the execution of the Supply and Offtake Agreements, we repaid in full and terminated the ABL Facility and expensed $1.8 million of financing costs associated with the termination of the agreement. The expense of $1.8 million related to the termination of the ABL Facility is included within Loss on termination of financing agreements on our unaudited consolidated statements of operations for the three and six months ended June 30, 2015. Guarantors In connection with our shelf registration statement on Form S-3, which was filed with the SEC on June 1, 2015 and declared effective on June 23, 2015 (“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”). The Company has 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 the Company, whether by cash dividends, loans or advances. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9—Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis Common stock warrants . As of June 30, 2015 and December 31, 2014 , we had 749,148 common stock warrants outstanding. We estimate the fair value of our outstanding common stock warrants using a Monte Carlo simulation analysis, which is considered to be a Level 3 fair value measurement. Significant inputs used in the Monte Carlo simulation analysis include: June 30, 2015 December 31, 2014 Stock price $18.72 $16.25 Weighted average exercise price $0.10 $0.10 Term (years) 7.17 7.67 Risk-free rate 2.09% 2.01% Expected volatility 44.5% 50.2% The expected volatility is based on the 10 -year historical volatilities of comparable public companies. Based on the Monte Carlo simulation analysis, the estimated fair value of the common stock warrants was $18.46 and $16.17 per share as of June 30, 2015 and December 31, 2014 , respectively. Since the common stock warrants were in the money upon issuance, we do not believe that changes in the inputs to the Monte Carlo simulation analysis will have a significant impact on the value of the common stock warrants other than changes in the value of our common stock. Increases in the value of our common stock will increase the value of the common stock warrants. Likewise, a decrease in the value of our common stock will result in a decrease in the value of the common stock warrants. Contingent consideration. The cash consideration for our acquisition of HIE may be increased pursuant to an earn out provision. The liability is remeasured at the end of each reporting period using a Monte Carlo simulation analysis. Significant inputs used in the valuation model include estimated future gross margin, annual gross margin volatility and a present value factor. We consider this to be a Level 3 fair value measurement. Please read Note 10—Commitments and Contingencies for further discussion. 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. 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 on our unaudited consolidated statements of operations. 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. During 2014, we entered into certain physical forward crude oil contracts that did not qualify for or for which we did not elect the normal NPNS exception. Changes in the fair value of those contracts were recorded in earnings. The fair value of our commodity derivatives were measured using the closing market price at the end of the reporting period obtained from the New York Mercantile Exchange and from third-party broker quotes and pricing providers. We elect to offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. Our consolidated unaudited balance sheets present derivative assets and liabilities on a net basis. 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. Financial Statement Impact Our assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 and their placement within our unaudited condensed consolidated balance sheets consist of the following (in thousands): Balance Sheet Location June 30, 2015 December 31, 2014 Asset (Liability) Common stock warrants Common stock warrants $ (13,832 ) $ (12,123 ) Contingent consideration Contingent consideration (23,555 ) (9,131 ) Exchange traded futures (1) Other accrued liabilities (1,229 ) — Exchange traded futures Prepaid and other current assets — 1,015 Exchange traded options Prepaid and other current assets 617 — OTC swaps Prepaid and other current assets 1,201 — _________________________________________________________ (1) Does not include cash collateral of $4.2 million recorded in Prepaid and other current assets as of June 30, 2015. The following table summarizes the pre-tax gains (losses) recognized in Net income (loss) on our unaudited condensed consolidated statement of operations resulting from changes in assets and liabilities valued at fair value (in thousands): Income Statement Classification Three Months Ended Three Months Ended Six Months Ended Six Months Ended Common stock warrants Change in value of common stock warrants $ 3,313 $ 140 $ (1,709 ) $ 1,717 Contingent consideration Change in value of contingent consideration (9,495 ) 2,297 (14,424 ) 4,762 Exchange traded futures Cost of revenues 1,338 (340 ) 762 (191 ) Commodities - physical forward contracts Cost of revenues — (625 ) — (1,141 ) Exchange traded options Cost of revenues 1,763 — 609 — OTC swaps Cost of revenues 1,201 — 1,201 — Our assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 and their level within the fair value hierarchy are as follows (in thousands): June 30, 2015 Fair Value Level 1 Level 2 Level 3 Common stock warrants $ (13,832 ) $ — $ — $ (13,832 ) Contingent consideration (23,555 ) — — (23,555 ) Commodity derivatives 589 (612 ) 1,201 — December 31, 2014 Fair Value Level 1 Level 2 Level 3 Common stock warrants $ (12,123 ) $ — $ — $ (12,123 ) Contingent consideration (9,131 ) — — (9,131 ) Commodity derivatives 1,015 1,015 — — A roll forward of Level 3 derivative instruments measured at fair value on a recurring basis is as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Balance, at beginning of period $ (31,205 ) $ (25,274 ) $ (21,254 ) $ (29,316 ) Settlements — — — — Acquired — — — — Total unrealized income (loss) included in earnings (6,182 ) 2,437 (16,133 ) 6,479 Balance, at end of period $ (37,387 ) $ (22,837 ) $ (37,387 ) $ (22,837 ) The carrying value and fair value of long-term debt and other financial instruments as of June 30, 2015 and December 31, 2014 are as follows (in thousands): June 30, 2015 Carrying Value Fair Value (1) Term Loan $ 93,521 $ 100,514 HIE Retail Credit Agreement (2) 28,928 28,928 Mid Pac Credit Agreement (2) 48,958 48,958 Common stock warrants 13,832 13,832 Contingent consideration 23,555 23,555 December 31, 2014 Carrying Value Fair Value (1) Term Loan $ 87,360 $ 87,068 HIE Retail Credit Agreement (2) 22,750 22,750 Texadian Uncommitted Credit Agreement 26,500 26,500 Common stock warrants 12,123 12,123 Contingent consideration 9,131 9,131 _________________________________________________________ (1) The fair values of these instruments are considered Level 3 measurements in the fair value hierarchy. (2) Fair value approximates carrying value due to the floating rate interest which approximates a current market rate. We estimate the fair value of our long-term debt using a discounted cash flow analysis and an estimate of the current yield of 11.36% and 14.11% as of June 30, 2015 and December 31, 2014 , respectively, by reference to market interest rates for term debt of comparable companies. 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
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—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 liquidity, results of operations or financial condition. 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 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 will be offset by Mid Pac’s claims for indemnification under the SPA. By letters dated December 13, 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. Tesoro Earnout Dispute The cash consideration for our acquisition of HIE is subject to increase pursuant to an earnout provision. For 2014, we contend that there are no amounts owed to Tesoro. Tesoro has disputed our calculation of the 2014 earnout amount and contends that approximately $1 million is owed. Pursuant to the Membership Interest Purchase Agreement dated June 17, 2013, 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. Environmental Matters Our petroleum refining operations and third-party oil and gas exploration and production operations in which we have a working interest are subject to extensive and periodically changing federal, state and local environmental laws and regulations governing air emissions, wastewater discharges, and solid and hazardous waste management activities. Many of these laws and regulations are becoming increasingly stringent, and the cost of compliance can be expected to increase over time. Our policy is to accrue environmental and clean-up related costs of a non-capital nature when it is probable that a liability has been incurred and the amount can be reasonably estimated. Such estimates may be subject to revision in the future as regulations and other conditions change. 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. 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. Regulation of Greenhouse Gases. The United States Environmental Protection Agency (“EPA”) has begun regulating greenhouse gases ("GHG") under the Clean Air Act Amendments of 1990 (“Clean Air Act”). 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 Clean Air Act 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 cost of the products we produce, which could have a material adverse effect on our financial position, results of operations, and liquidity. 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 CO 2 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 refinery’s capacity to reduce fuel use and GHG emissions is limited. However, the state’s pending regulation allows, and the refinery should 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 CO 2 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 (“EISA”) which, 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 United States 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. Since April 2006, the State of Hawaii has required that a minimum of 9.2% ethanol be blended into at least 85% of the gasoline pool, but the regulation also limited the amount of ethanol to no more than 10% . Effective January 1, 2016, however, this state mandate will terminate. Consequently, unless federal regulations are revised, qualified 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 ppm and also lowers the allowable benzene, aromatics and olefins content of gasoline. The effective date for the new standard, January 1, 2017, gives refiners nationwide little time to engineer, permit and implement substantial modifications; however, approved small volume refineries have until January 1, 2020 to meet the standard. We believe that HIE’s refinery satisfies the definition of a small volume refinery, and we have applied to the EPA for status as such as is required by the Tier 3 regulations. Along with credit and trading options, potential capital upgrades for the refinery are being evaluated. 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. We may 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 (“Closing Date”), Hawaii Pacific Energy (a wholly-owned subsidiary of Par created for purposes of the HIE acquisition), Tesoro Corporation ("Tesoro") and HIE entered into an Environmental Agreement (“Environmental Agreement”), which allocated responsibility for known and contingent environmental liabilities related to the acquisition of HIE, including the Consent Decree as described below. Consent Decree . Tesoro is currently negotiating a consent decree with the EPA and the United States Department of Justice concerning alleged violations of the federal Clean Air Act related to the ownership and operation of multiple facilities owned or formerly owned by Tesoro and its affiliates (“Consent Decree”), including the Hawaii refinery. It is anticipated that the Consent Decree will be finalized sometime during 2015 and will require certain capital improvements to our refinery to reduce emissions of air pollutants. We estimate the cost of compliance with the final decree could be $20 million to $25 million . However, Tesoro is responsible under the Environmental Agreement for reimbursing HIE for all reasonable third-party capital expenditures incurred for the construction, installation and commissioning of such capital projects and for the payment of any fines or penalties imposed on HIE arising from the Consent Decree to the extent related to acts or omission of Tesoro or HIE prior to the Closing Date. Tesoro’s obligation to reimburse HIE for such fines and penalties is not subject to a monetary limitation; however, the obligation relating to fines and penalties terminates on the third anniversary of the Closing Date. Tank Replacements. Tesoro replaced, at its expense, the existing underground storage tanks at six retail locations. The tank replacements were completed at five of the stations during 2014. The sixth location was completed during the first quarter of 2015. 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 Closing Date, any fine, penalty or other cost assessed by a governmental authority in connection with violations of environmental laws by HIE prior to the Closing Date, certain groundwater remediation work, the replacement of underground storage tanks located at certain retail sites, fines or penalties imposed on HIE by the Consent Decree related to acts or omissions of Tesoro prior to the Closing Date and to 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. We are the beneficiary of the General Trust, subject to the terms of the respective trust agreement and the Plan. Since the Emergence Date, the General Trust has filed various claims and causes of action against third parties before the Bankruptcy Court, which actions are ongoing. Upon liquidation of the various claims and causes of action held by the General Trust, the proceeds, less certain administrative reserves and expenses, will be transferred to us. It is unknown at this time what proceeds, if any, we will realize from the General Trust’s litigation efforts. The Plan provides that certain allowed general unsecured claims be paid with shares of our common stock. As of December 31, 2014, 27 claims totaling approximately $26.5 million remain to be resolved by the trustee for the General Trust and we have reserved approximately $1.1 million representing the estimated value of claims remaining to be settled which are deemed probable and estimable at period end. No claims were settled during the six months ended June 30, 2015 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11—Stockholders' Equity Incentive Plan For the three and six months ended June 30, 2015 , we recognized compensation costs of approximately $1.7 million and $ 3.0 million , respectively, in General and administrative expenses on our unaudited condensed consolidated statements of operations related to restricted stock awards under the Par Petroleum Corporation 2012 Long-term Incentive Plan ("LTIP"). For the three and six months ended June 30, 2014 , we recognized compensation costs of approximately $981 thousand and $1.6 million , respectively, in General and administrative expenses within our unaudited consolidated statements of operations related to restricted stock awards under the LTIP. During the three and six months ended June 30, 2015 , we granted 46 thousand shares and 174 thousand shares of restricted stock with fair values of approximately $1.1 million and $3.5 million , respectively. During the three and six months ended June 30, 2015 , we granted approximately 9 thousand stock options and 152 thousand stock options with a weighted-average exercise price of $ 23.49 and $18.80 and a fair value of approximately $0.1 million and $1.1 million , respectively. As of June 30, 2015 , there was approximately $10.1 million of total unrecognized compensation costs related to restricted stock and stock option awards, which are expected to be recognized on a straight-line basis over a weighted-average period of 3.18 years. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Note 12—Benefit Plans Other Post-retirement Benefits - Medical We sponsor a post-retirement medical plan to provide health care coverage continuation from the date of retirement to age 65 for qualifying employees. Employees hired before 2006 are generally eligible to participate in the plan after five years of service and reaching the age of 55 and will pay 20% of the monthly insurance premium. Employees hired after 2006 are generally eligible to participate in the plan after five years of service and reaching the age of 55 and are required to pay 100% of the monthly insurance premium; however, after 10 years of service, they are only required to pay 50% of the monthly insurance premium. The components of the net periodic benefit cost related to our defined benefit plan consist of the following (in thousands): Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Service cost $ 93 $ 185 Interest cost 53 106 Amortization of prior service cost 2 4 Net periodic benefit cost $ 148 $ 295 |
Income (Loss) per Share
Income (Loss) per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Note 13—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 749,148 shares and 790,683 shares as of June 30, 2015 and 2014, respectively. The common stock warrants are included in the calculation of basic income (loss) per share because they are issuable for minimal consideration. Non-vested restricted stock is excluded from the basic weighted-average common stock outstanding computation as these shares are not considered earned until vested. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Net income (loss) $ 11,723 $ (24,677 ) $ 12,185 $ (39,245 ) Undistributed income allocated to participating securities (2) 108 — 107 — Net income (loss) attributable to common stockholders $ 11,615 $ (24,677 ) $ 12,078 $ (39,245 ) Basic weighted-average common stock shares outstanding 37,339 30,406 37,261 30,388 Add dilutive effects of common stock equivalents (1) 24 — 58 — Diluted weighted-average common stock shares outstanding 37,363 30,406 37,319 30,388 Basic income (loss) per common share $ 0.31 $ (0.81 ) $ 0.32 $ (1.29 ) Diluted income (loss) per common share $ 0.31 $ (0.81 ) $ 0.32 $ (1.29 ) ________________________________________________________ (1) Entities with a net loss are prohibited from including potential common shares in the computation of diluted per share amounts; therefore, we have utilized the basic shares outstanding to calculate both basic and diluted loss per share for the three and six months ended June 30, 2014 . (2) Participating securities includes restricted stock that has been issued but is not yet vested. For the three and six months ended June 30, 2015 , our weighted-average potentially dilutive securities excluded from the calculation of diluted shares outstanding consisted of 348 thousand and 331 thousand shares of non-vested restricted stock and 24 thousand and 58 thousand stock options, respectively. For the three and six months ended June 30, 2014 , there were 658 thousand potentially dilutive securities excluded from the calculation of diluted shares outstanding. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14—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 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 the full amount of our net deferred tax assets at June 30, 2015 . During the second quarter 2015, we recorded a benefit for the release of $18.6 million of our valuation allowance as we expect to be able to utilize a portion of our net operating loss ("NOL") carryforwards to offset future taxable income of Mid Pac. During the three and six month periods ended June 30, 2015 and 2014 , 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 NOL carry forwards will not always be available to offset taxable income apportioned to the various states. The states from which some of our 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 commodity marketing and logistics segment, our refining and distribution segment and our retail segment. Excluding the impact of releasing the valuation allowance, state tax benefit was approximately $22 thousand and state tax expense was $43 thousand for the three and six months ended June 30, 2015 , respectively. State income tax expense of approximately $2 thousand and $37 thousand was recognized for the three and six months ended June 30, 2014 , respectively. 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
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15—Segment Information We have changed our reportable segments to separate our retail operations from our refining operations due to a change in senior leadership, organizational structure, the acquisition of Mid Pac and to reflect how we currently make financial decisions and allocate resources. Beginning with the second quarter, the results of operations of Mid Pac are included in our Refining and Distribution and Retail segments. We previously reported results for the following three business segments: (i) Refining, Distribution and Marketing, (ii) Natural Gas and Oil Production and (iii) Commodity Marketing and Logistics. Effective in the first quarter of 2015, our reportable segments are: (i) Refining and Distribution, (ii) Retail, (iii) Natural Gas and Oil Production, and (iv) Commodity Marketing and Logistics. Corporate and Other includes administrative and other costs.We have recast the segment information for the three and six months ended June 30, 2014 below to conform to the current period presentation. Summarized financial information concerning reportable segments consists of the following (in thousands): Three months ended June 30, 2015 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 538,453 $ 80,938 $ 1,709 $ 25,125 $ — $ 646,225 Intersegment elimination (62,466 ) — — — — (62,466 ) Revenues 475,987 80,938 1,709 25,125 — 583,759 Cost of revenues 417,315 64,298 — 23,418 — 505,031 Operating expense, excluding DD&A 22,714 9,757 — — — 32,471 Lease operating expenses — — 1,508 — — 1,508 Depreciation, depletion, and amortization 2,891 1,590 9 229 286 5,005 General and administrative expense 4,501 959 400 2,131 3,823 11,814 Acquisition and integration costs — — — — 470 470 Operating income (loss) 28,566 4,334 (208 ) (653 ) (4,579 ) 27,460 Interest expense and financing costs, net (5,825 ) Loss on termination of financing agreements (19,229 ) Other expense, net (158 ) Change in value of common stock warrants 3,313 Change in value of contingent consideration (9,495 ) Equity loss from Piceance Energy, LLC (2,950 ) Loss before income taxes (6,884 ) Income tax benefit 18,607 Net income $ 11,723 Capital expenditures $ 4,570 $ 104 $ — $ — $ 452 $ 5,126 Three months ended June 30, 2014 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 750,518 $ 59,419 $ 1,839 $ 29,183 $ — $ 840,959 Intersegment elimination (38,822 ) — — — — (38,822 ) Revenues 711,696 59,419 1,839 29,183 — 802,137 Cost of revenues 701,246 51,438 — 26,617 — 779,301 Operating expense, excluding DD&A 27,958 6,116 — — — 34,074 Lease operating expense — — 1,700 — — 1,700 Depreciation, depletion, and amortization 1,917 557 255 508 53 3,290 General and administrative expense 433 128 94 823 4,255 5,733 Acquisition and integration costs 1,528 — — — 891 2,419 Operating (loss) income (21,386 ) 1,180 (210 ) 1,235 (5,199 ) (24,380 ) Interest expense and financing costs, net (3,397 ) Other expense, net (95 ) Change in value of common stock warrants 140 Change in value of contingent consideration 2,297 Equity earnings from Piceance Energy, LLC 760 Loss before income taxes (24,675 ) Income tax expense (2 ) Net loss $ (24,677 ) Capital expenditures $ 2,922 $ 100 $ 676 $ 193 $ — $ 3,891 Six months ended June 30, 2015 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 1,033,071 $ 127,657 $ 2,185 $ 66,079 $ — $ 1,228,992 Intersegment elimination (83,512 ) — — (18,110 ) — (101,622 ) Revenues 949,559 127,657 2,185 47,969 — 1,127,370 Cost of revenues 838,585 97,728 — 46,224 — 982,537 Operating expense, excluding DD&A 49,069 15,682 — — — 64,751 Lease operating expenses — — 3,039 — — 3,039 Depreciation, depletion, and amortization 5,158 2,183 23 458 434 8,256 General and administrative expense 8,710 1,785 400 3,363 7,681 21,939 Acquisition and integration costs — — — — 1,531 1,531 Operating income (loss) 48,037 10,279 (1,277 ) (2,076 ) (9,646 ) 45,317 Interest expense and financing costs, net (11,382 ) Loss on termination of financing agreements (19,229 ) Other expense, net (154 ) Change in value of common stock warrants (1,709 ) Change in value of contingent consideration (14,424 ) Equity loss from Piceance Energy, LLC (4,776 ) Loss before income taxes (6,357 ) Income tax benefit 18,542 Net income $ 12,185 Capital expenditures $ 8,586 $ 502 $ — $ — $ 785 $ 9,873 Six months ended June 30, 2014 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 1,452,826 $ 111,250 $ 3,416 $ 48,978 $ — $ 1,616,470 Intersegment elimination (71,087 ) — — — — (71,087 ) Revenues 1,381,739 111,250 3,416 48,978 — 1,545,383 Cost of revenues 1,352,162 95,406 — 44,782 — 1,492,350 Operating expense, excluding DD&A 55,129 12,039 — — — 67,168 Lease operating expense — — 2,759 — — 2,759 Depreciation, depletion, and amortization 3,621 1,111 525 1,014 80 6,351 General and administrative expense 1,533 651 244 1,913 6,326 10,667 Acquisition and integration costs 4,028 — — — 1,242 5,270 Operating (loss) income (34,734 ) 2,043 (112 ) 1,269 (7,648 ) (39,182 ) Interest expense and financing costs, net (6,904 ) Other expense, net (140 ) Change in value of common stock warrants 1,717 Change in value of contingent consideration 4,762 Equity loss from Piceance Energy, LLC 539 Loss before income taxes (39,208 ) Income tax expense (37 ) Net loss $ (39,245 ) Capital expenditures $ 4,761 $ 100 $ 748 $ 300 $ — $ 5,909 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16—Related Party Transactions Term Loan Certain of our stockholders, or affiliates of our stockholders, are the lenders under our Term Loan. In previous years, they received common stock warrants exercisable for shares of common stock in connection with the origination of the Term Loan. Please read Note 8—Debt for further information. 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 Advisors, LLC ("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 will 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 and six months ended June 30, 2015 and 2014. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17—Subsequent Events Investment in Piceance Energy On July 31, 2015, an unaffiliated third-party invested an aggregate $19 million in Piceance Energy in the form of cash and property. As a result of this transaction, our ownership interest decreased from 34.0% to 32.4% . |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Par Petroleum Corporation ("Par") and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts from prior periods have been reclassified to conform to the current presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and 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 unaudited 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. 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, 2014 was derived from our audited consolidated financial statements as of that date. These unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in our Current Report on Form 8-K filed on May 22, 2015. |
Use Of Estimates | Use of Estimates The preparation of 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. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Significant estimates include the fair value of certain assets and liabilities, including those acquired in business combinations, natural gas and oil reserves, income taxes and the valuation allowances related to deferred tax assets, derivatives, asset retirement obligations, contingencies and litigation accruals. |
Accounting Principles Not Yet Adopted | Accounting Principles Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). The FASB’s objective was to provide a more robust framework to improve comparability of revenue recognition practices across entities by removing most industry and transaction specific guidance, align GAAP with International Financial Reporting Standards, and provide more useful information to financial statement users. This authoritative guidance changes the way entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. ASU No. 2014-09 allows for either full retrospective adoption or modified retrospective adoption. We are in the process of determining the method of adoption and the impact this guidance will have on our financial condition, results of operations and cash flows. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2016 and early adoption is permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our financial condition, results of operations and cash flows. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 changes the consolidation analysis required under GAAP. ASU 2015-02 eliminates the presumption that a general partner should consolidate a limited partnership and modifies the evaluation of whether limited partnerships are Variable Interest Entities or voting interest entities. Under the amended guidance, limited partners would be required to consolidate a partnership if the limited partner retains certain powers and obligations. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods beginning after December 15, 2017. ASU 2015-02 allows for either full retrospective adoption or modified retrospective adoption. Early adoption is permitted, but the guidance must be applied as of the beginning of the annual period containing the adoption date. We are in the process of determining the method of adoption and the impact this guidance will have on our financial condition, results of operations and cash flows. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 changes the balance sheet classification of debt issuance costs. Under current GAAP, debt issuance costs are reported on the balance sheet as assets and amortized as interest expense. ASU 2015-03 requires that debt issuance costs be presented as a direct reduction from the carrying amount of the related debt liability, which is similar to the presentation of debt discounts or premiums. Debt issuance costs will continue to be amortized to interest expense using the effective interest method. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2015. ASU 2015-03 should be adopted on a retrospective basis and early adoption is permitted. As of June 30, 2015 and December 31, 2014 , we had $8.6 million and $13.2 million of debt issuance costs included in Other long-term assets on our unaudited condensed consolidated balance sheets, respectively. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2016. ASU 2015-11 should be adopted prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Our commodity inventories are currently stated at the lower of cost or market value using the first-in, first-out accounting method. We value merchandise, spare parts, materials, and supplies at average cost. We are currently evaluating the provisions and assessing the impact, if any, this amendment may have on our financial position and results of operations. |
Equity Method Investments Discl
Equity Method Investments Disclosure (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The change in our equity investment in Piceance Energy is as follows (in thousands): Six Months Ended Beginning balance $ 104,657 Equity loss from Piceance Energy (5,186 ) Accretion of basis difference 410 Capital contributions 27,529 Ending balance $ 127,410 |
Equity Method Investees Financial Information | Summarized financial information for Piceance Energy is as follows (in thousands): June 30, 2015 December 31, 2014 Current assets $ 6,396 $ 13,168 Non-current assets 481,955 468,379 Current liabilities 16,347 17,103 Non-current liabilities 55,118 107,087 Three Months Ended Three Months Ended Six Months Ended Six Months Ended Natural gas and oil revenues $ 10,486 $ 20,725 $ 21,223 $ 40,968 Income (loss) from operations (8,207 ) 1,989 (15,286 ) 5,598 Net income (loss) (9,329 ) 1,815 (15,409 ) 724 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | A summary of the preliminary estimated fair value of the assets acquired and liabilities assumed is as follows (in thousands): Cash $ 10,007 Trade accounts receivable 9,914 Inventories 5,398 Prepaid and other current assets 1,449 Property, plant and equipment 39,821 Land 34,800 Goodwill 29,315 Intangible assets 33,647 Other non-current assets 1,228 Accounts payable and other current liabilities (11,149 ) Deferred tax liability (18,687 ) Other non-current liabilities (7,171 ) Total $ 128,572 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information presents our consolidated revenues and net income (loss) as if the Mid Pac acquisition had been completed on January 1, 2014 (in thousands): Three Months Ended Six Months Ended Six Months Ended Revenues $ 870,156 $ 1,154,620 $ 1,672,911 Net income (loss) (23,685 ) 4,671 (21,261 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories at June 30, 2015 consist of the following (in thousands): Titled Inventory Supply and Offtake Agreements (1) Total Crude oil and feedstocks $ 7,817 $ 86,396 $ 94,213 Refined products and blend stock 34,116 128,080 162,196 Warehouse stock and other 17,221 — 17,221 Total $ 59,154 $ 214,476 $ 273,630 Inventories at December 31, 2014 consist of the following (in thousands): Titled Inventory Supply and Exchange Agreements (1) Total Crude oil and feedstocks $ 17,924 $ 62,594 $ 80,518 Refined products and blend stock 29,998 118,375 148,373 Warehouse stock and other 14,962 — 14,962 Total $ 62,884 $ 180,969 $ 243,853 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | During the six months ended June 30, 2015 , the change in the carrying amount of goodwill was as follows (in thousands): Balance at beginning of period $ 20,786 Acquisition of Koko'oha (1) 29,315 Balance at end of period $ 50,101 ________________________________________________________ (1) Please read Note 4—Acquisition for further discussion. |
Schedule of Finite-Lived Intangible Assets | Intangible assets consist of the following (in thousands): June 30, 2015 December 31, 2014 Intangible assets: Supplier relationships $ 3,360 $ 3,360 Railcar leases 3,249 3,249 Trade names and trademarks 6,267 4,689 Customer relationships 32,069 — Total intangible assets $ 44,945 $ 11,298 Accumulated amortization: Supplier relationships $ (645 ) $ (516 ) Railcar leases (1,626 ) (1,301 ) Trade name and trademarks (2,751 ) (1,975 ) Customer relationships (394 ) — Total accumulated amortization $ (5,416 ) $ (3,792 ) Net: Supplier relationships $ 2,715 $ 2,844 Railcar leases 1,623 1,948 Trade name and trademarks 3,516 2,714 Customer relationships 31,675 — Total intangible assets, net $ 39,529 $ 7,506 |
Finite-lived Intangible Assets Amortization Expense | Expected amortization expense for each of the next five years and thereafter is as follows (in thousands): Year Ended Amount 2015 $ 2,650 2016 4,781 2017 3,632 2018 2,982 2019 2,982 Thereafter 22,502 $ 39,529 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our outstanding debt (in thousands): June 30, 2015 December 31, 2014 Term Loan $ 93,521 $ 87,360 HIE Retail Credit Agreement 28,928 22,750 Texadian Uncommitted Credit Agreement — 26,500 Mid Pac Credit Agreement 48,958 — Total debt, net of unamortized debt discount 171,407 136,610 Less current maturities (43,373 ) (29,100 ) Long-term debt, net of current maturities and unamortized discount $ 128,034 $ 107,510 |
Contractual Obligation, Fiscal Year Maturity Schedule | Annual maturities of our long-term debt for the next five years and thereafter are as follows (in thousands): Year Amount Due 2015 $ 4,226 2016 47,540 2017 8,452 2018 62,886 2019 8,452 Thereafter 39,851 $ 171,407 |
Schedule Of Leverage Ratio | In addition, the Second Amendment modifies the financial covenant relating to HIE Retail’s maximum Leverage Ratio (as defined in the Retail Credit Agreement), which is measured on a quarterly basis commencing with the fiscal quarter ending June 30, 2015 and building up to a rolling four-quarter basis, as follows for the last day of each fiscal year: Period (during and as of the last day of) Maximum Leverage Ratio 2015 Fiscal Year 5.00 to 1.00 2016 Fiscal Year 4.75 to 1.00 2017 Fiscal Year 4.50 to 1.00 2018 Fiscal Year 4.25 to 1.00 2019 Fiscal Year, and at all times thereafter 4.00 to 1.00 Pursuant to the Mid Pac Credit Agreement, Mid Pac is required to comply with various affirmative and negative covenants affecting its business and operations, including compliance with a minimum fixed charge coverage ratio of not less than 1.15 to 1.00, a minimum tangible net worth of $12.0 million , and a maximum leverage ratio determined as follows: Period (during and as of last day of) Maximum Leverage Ratio June 30, 2015 5.50 to 1.00 September 30, 2015 5.25 to 1.00 December 31, 2015 5.00 to 1.00 2016 fiscal year 4.75 to 1.00 2017 fiscal year 4.25 to 1.00 2018 fiscal year 4.00 to 1.00 2019 fiscal year 3.50 to 1.00 2020 fiscal year, and at all times thereafter 3.25 to 1.00 |
Schedule Of Revolver Applicable Margin for Debt Instrument | The Mid Pac Term Loan applicable margin is as specified below: Leverage Ratio Applicable Margin for LIBOR Loans Applicable Margin for Basis Rate Loans (basis points) (basis points) < 3.00x 200 — 3.00x - 3.50x 225 25 > 3.50x 250 50 The Mid Pac Revolving Credit Facility applicable margin is as specified below: Leverage Ratio Applicable Margin for LIBOR Loans Applicable Margin for Basis Rate Loans (basis points) (basis points) < 3.00x 175 (25) 3.00x - 3.50x 200 — > 3.50x 225 25 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Significant inputs used in the Monte Carlo simulation analysis include: June 30, 2015 December 31, 2014 Stock price $18.72 $16.25 Weighted average exercise price $0.10 $0.10 Term (years) 7.17 7.67 Risk-free rate 2.09% 2.01% Expected volatility 44.5% 50.2% |
Fair Value, Assets Measured on Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 and their level within the fair value hierarchy are as follows (in thousands): June 30, 2015 Fair Value Level 1 Level 2 Level 3 Common stock warrants $ (13,832 ) $ — $ — $ (13,832 ) Contingent consideration (23,555 ) — — (23,555 ) Commodity derivatives 589 (612 ) 1,201 — December 31, 2014 Fair Value Level 1 Level 2 Level 3 Common stock warrants $ (12,123 ) $ — $ — $ (12,123 ) Contingent consideration (9,131 ) — — (9,131 ) Commodity derivatives 1,015 1,015 — — Our assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 and their placement within our unaudited condensed consolidated balance sheets consist of the following (in thousands): Balance Sheet Location June 30, 2015 December 31, 2014 Asset (Liability) Common stock warrants Common stock warrants $ (13,832 ) $ (12,123 ) Contingent consideration Contingent consideration (23,555 ) (9,131 ) Exchange traded futures (1) Other accrued liabilities (1,229 ) — Exchange traded futures Prepaid and other current assets — 1,015 Exchange traded options Prepaid and other current assets 617 — OTC swaps Prepaid and other current assets 1,201 — |
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 unaudited condensed consolidated statement of operations resulting from changes in assets and liabilities valued at fair value (in thousands): Income Statement Classification Three Months Ended Three Months Ended Six Months Ended Six Months Ended Common stock warrants Change in value of common stock warrants $ 3,313 $ 140 $ (1,709 ) $ 1,717 Contingent consideration Change in value of contingent consideration (9,495 ) 2,297 (14,424 ) 4,762 Exchange traded futures Cost of revenues 1,338 (340 ) 762 (191 ) Commodities - physical forward contracts Cost of revenues — (625 ) — (1,141 ) Exchange traded options Cost of revenues 1,763 — 609 — OTC swaps Cost of revenues 1,201 — 1,201 — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A roll forward of Level 3 derivative instruments measured at fair value on a recurring basis is as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Balance, at beginning of period $ (31,205 ) $ (25,274 ) $ (21,254 ) $ (29,316 ) Settlements — — — — Acquired — — — — Total unrealized income (loss) included in earnings (6,182 ) 2,437 (16,133 ) 6,479 Balance, at end of period $ (37,387 ) $ (22,837 ) $ (37,387 ) $ (22,837 ) |
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 June 30, 2015 and December 31, 2014 are as follows (in thousands): June 30, 2015 Carrying Value Fair Value (1) Term Loan $ 93,521 $ 100,514 HIE Retail Credit Agreement (2) 28,928 28,928 Mid Pac Credit Agreement (2) 48,958 48,958 Common stock warrants 13,832 13,832 Contingent consideration 23,555 23,555 December 31, 2014 Carrying Value Fair Value (1) Term Loan $ 87,360 $ 87,068 HIE Retail Credit Agreement (2) 22,750 22,750 Texadian Uncommitted Credit Agreement 26,500 26,500 Common stock warrants 12,123 12,123 Contingent consideration 9,131 9,131 _________________________________________________________ (1) The fair values of these instruments are considered Level 3 measurements in the fair value hierarchy. (2) Fair value approximates carrying value due to the floating rate interest which approximates a current market rate. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The components of the net periodic benefit cost related to our defined benefit plan consist of the following (in thousands): Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Service cost $ 93 $ 185 Interest cost 53 106 Amortization of prior service cost 2 4 Net periodic benefit cost $ 148 $ 295 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 earnings per share (in thousands, except per share amounts): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Net income (loss) $ 11,723 $ (24,677 ) $ 12,185 $ (39,245 ) Undistributed income allocated to participating securities (2) 108 — 107 — Net income (loss) attributable to common stockholders $ 11,615 $ (24,677 ) $ 12,078 $ (39,245 ) Basic weighted-average common stock shares outstanding 37,339 30,406 37,261 30,388 Add dilutive effects of common stock equivalents (1) 24 — 58 — Diluted weighted-average common stock shares outstanding 37,363 30,406 37,319 30,388 Basic income (loss) per common share $ 0.31 $ (0.81 ) $ 0.32 $ (1.29 ) Diluted income (loss) per common share $ 0.31 $ (0.81 ) $ 0.32 $ (1.29 ) ________________________________________________________ (1) Entities with a net loss are prohibited from including potential common shares in the computation of diluted per share amounts; therefore, we have utilized the basic shares outstanding to calculate both basic and diluted loss per share for the three and six months ended June 30, 2014 . (2) Participating securities includes restricted stock that has been issued but is not yet vested. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized financial information concerning reportable segments consists of the following (in thousands): Three months ended June 30, 2015 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 538,453 $ 80,938 $ 1,709 $ 25,125 $ — $ 646,225 Intersegment elimination (62,466 ) — — — — (62,466 ) Revenues 475,987 80,938 1,709 25,125 — 583,759 Cost of revenues 417,315 64,298 — 23,418 — 505,031 Operating expense, excluding DD&A 22,714 9,757 — — — 32,471 Lease operating expenses — — 1,508 — — 1,508 Depreciation, depletion, and amortization 2,891 1,590 9 229 286 5,005 General and administrative expense 4,501 959 400 2,131 3,823 11,814 Acquisition and integration costs — — — — 470 470 Operating income (loss) 28,566 4,334 (208 ) (653 ) (4,579 ) 27,460 Interest expense and financing costs, net (5,825 ) Loss on termination of financing agreements (19,229 ) Other expense, net (158 ) Change in value of common stock warrants 3,313 Change in value of contingent consideration (9,495 ) Equity loss from Piceance Energy, LLC (2,950 ) Loss before income taxes (6,884 ) Income tax benefit 18,607 Net income $ 11,723 Capital expenditures $ 4,570 $ 104 $ — $ — $ 452 $ 5,126 Three months ended June 30, 2014 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 750,518 $ 59,419 $ 1,839 $ 29,183 $ — $ 840,959 Intersegment elimination (38,822 ) — — — — (38,822 ) Revenues 711,696 59,419 1,839 29,183 — 802,137 Cost of revenues 701,246 51,438 — 26,617 — 779,301 Operating expense, excluding DD&A 27,958 6,116 — — — 34,074 Lease operating expense — — 1,700 — — 1,700 Depreciation, depletion, and amortization 1,917 557 255 508 53 3,290 General and administrative expense 433 128 94 823 4,255 5,733 Acquisition and integration costs 1,528 — — — 891 2,419 Operating (loss) income (21,386 ) 1,180 (210 ) 1,235 (5,199 ) (24,380 ) Interest expense and financing costs, net (3,397 ) Other expense, net (95 ) Change in value of common stock warrants 140 Change in value of contingent consideration 2,297 Equity earnings from Piceance Energy, LLC 760 Loss before income taxes (24,675 ) Income tax expense (2 ) Net loss $ (24,677 ) Capital expenditures $ 2,922 $ 100 $ 676 $ 193 $ — $ 3,891 Six months ended June 30, 2015 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 1,033,071 $ 127,657 $ 2,185 $ 66,079 $ — $ 1,228,992 Intersegment elimination (83,512 ) — — (18,110 ) — (101,622 ) Revenues 949,559 127,657 2,185 47,969 — 1,127,370 Cost of revenues 838,585 97,728 — 46,224 — 982,537 Operating expense, excluding DD&A 49,069 15,682 — — — 64,751 Lease operating expenses — — 3,039 — — 3,039 Depreciation, depletion, and amortization 5,158 2,183 23 458 434 8,256 General and administrative expense 8,710 1,785 400 3,363 7,681 21,939 Acquisition and integration costs — — — — 1,531 1,531 Operating income (loss) 48,037 10,279 (1,277 ) (2,076 ) (9,646 ) 45,317 Interest expense and financing costs, net (11,382 ) Loss on termination of financing agreements (19,229 ) Other expense, net (154 ) Change in value of common stock warrants (1,709 ) Change in value of contingent consideration (14,424 ) Equity loss from Piceance Energy, LLC (4,776 ) Loss before income taxes (6,357 ) Income tax benefit 18,542 Net income $ 12,185 Capital expenditures $ 8,586 $ 502 $ — $ — $ 785 $ 9,873 Six months ended June 30, 2014 Refining and Distribution Retail Natural Gas and Oil Production Commodity Marketing and Logistics Corporate and Other Total Segment revenues $ 1,452,826 $ 111,250 $ 3,416 $ 48,978 $ — $ 1,616,470 Intersegment elimination (71,087 ) — — — — (71,087 ) Revenues 1,381,739 111,250 3,416 48,978 — 1,545,383 Cost of revenues 1,352,162 95,406 — 44,782 — 1,492,350 Operating expense, excluding DD&A 55,129 12,039 — — — 67,168 Lease operating expense — — 2,759 — — 2,759 Depreciation, depletion, and amortization 3,621 1,111 525 1,014 80 6,351 General and administrative expense 1,533 651 244 1,913 6,326 10,667 Acquisition and integration costs 4,028 — — — 1,242 5,270 Operating (loss) income (34,734 ) 2,043 (112 ) 1,269 (7,648 ) (39,182 ) Interest expense and financing costs, net (6,904 ) Other expense, net (140 ) Change in value of common stock warrants 1,717 Change in value of contingent consideration 4,762 Equity loss from Piceance Energy, LLC 539 Loss before income taxes (39,208 ) Income tax expense (37 ) Net loss $ (39,245 ) Capital expenditures $ 4,761 $ 100 $ 748 $ 300 $ — $ 5,909 |
Overview Additional Information
Overview Additional Information (Detail) - segment | 6 Months Ended | ||
Jun. 30, 2015 | May. 29, 2015 | May. 28, 2015 | |
Operating segments | 4 | ||
Piceance Energy [Member] | |||
Ownership of Piceance Energy, LLC | 34.00% | 34.00% | 33.34% |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Other Long Term Assets [Member] | ||
Obligation with Joint and Several Liability Arrangement [Line Items] | ||
Debt issuance costs | $ 8.6 | $ 13.2 |
Investment in Piceance Energy A
Investment in Piceance Energy Additional Information (Detail) - USD ($) | May. 29, 2015 | Mar. 09, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | May. 28, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||||||||
Cash capital contribution | $ 27,529,000 | $ 0 | ||||||
Depreciation, depletion, and amortization | $ 5,005,000 | $ 3,290,000 | 8,256,000 | 6,351,000 | ||||
Unrealized loss on derivative contracts | $ (426,000) | (191,000) | ||||||
Amortization of natural gas and oil properties | 15 years | |||||||
Piceance Energy [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership of Piceance Energy, LLC | 34.00% | 34.00% | 34.00% | 33.34% | ||||
Line credit maximum borrowing amount | $ 400,000,000 | $ 400,000,000 | ||||||
Asset borrowing base currently at | 110,000,000 | 110,000,000 | ||||||
Balance outstanding on the revolving credit facility | 48,500,000 | 48,500,000 | ||||||
Cash capital contribution | $ 13,800,000 | $ 13,800,000 | ||||||
Depreciation, depletion, and amortization | 8,400,000 | 8,600,000 | 15,800,000 | 15,300,000 | ||||
Unrealized loss on derivative contracts | (3,700,000) | $ (1,700,000) | (4,400,000) | $ (157,000) | ||||
Amount of equity in underlying assets exceeding carrying value | $ 14,300,000 | $ 14,300,000 | $ 14,700,000 |
Investment in Piceance Energy C
Investment in Piceance Energy Change in Equity Investment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Beginning balance | $ 104,657 | |||
Equity loss from Piceance Energy | $ (2,950) | $ 760 | (4,776) | $ 539 |
Ending balance | 127,410 | 127,410 | ||
Piceance Energy [Member] | ||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Beginning balance | 104,657 | |||
Equity loss from Piceance Energy | (5,186) | |||
Accretion of basis difference | 410 | |||
Capital contributions | 27,529 | |||
Ending balance | $ 127,410 | $ 127,410 |
Investment in Piceance Energy S
Investment in Piceance Energy Summarized Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
ASSETS | |||||
Current assets | $ 436,883 | $ 436,883 | $ 460,789 | ||
Current liabilities | 390,299 | 390,299 | 310,806 | ||
Natural gas and oil revenues | 1,709 | $ 1,839 | 2,185 | $ 3,416 | |
Income (loss) from operations | 27,460 | (24,380) | 45,317 | (39,182) | |
Net income (loss) | 11,723 | (24,677) | 12,185 | (39,245) | |
Piceance Energy [Member] | |||||
ASSETS | |||||
Current assets | 6,396 | 6,396 | 13,168 | ||
Non-current assets | 481,955 | 481,955 | 468,379 | ||
Current liabilities | 16,347 | 16,347 | 17,103 | ||
Non-current liabilities | 55,118 | 55,118 | $ 107,087 | ||
Natural gas and oil revenues | 10,486 | 20,725 | 21,223 | 40,968 | |
Income (loss) from operations | (8,207) | 1,989 | (15,286) | 5,598 | |
Net income (loss) | $ (9,329) | $ 1,815 | $ (15,409) | $ 724 |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ in Thousands | Apr. 01, 2015 | Jun. 02, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||
Cash consideration net of cash acquired | $ 0 | $ 582 | |||||
Term loan | $ 171,407 | 171,407 | $ 136,610 | ||||
Revenues | 583,759 | $ 802,137 | 1,127,370 | 1,545,383 | |||
Net income (loss) | 11,723 | $ (24,677) | 12,185 | $ (39,245) | |||
Mid Pac Petroleum, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration transferred prior to certain post-closing adjustments | $ 73,300 | ||||||
Cash consideration net of cash acquired | 58,300 | ||||||
Advanced deposits | 15,000 | 10,000 | |||||
Deposit against purchase price | $ 10,000 | ||||||
Revenues | 53,600 | 53,600 | |||||
Net income (loss) | $ 2,800 | $ 2,800 | |||||
Mid Pac Petroleum, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Term loan | 45,300 | ||||||
Mid Pac Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Term loan | $ 55,000 | ||||||
Koko' oha Investments, Inc. [Member] | Mid Pac Petroleum, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Outstanding membership interests of Mid Pac Petroleum, LLC | 100.00% |
Acquisitions Assets Acquired an
Acquisitions Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Apr. 01, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 50,101 | $ 20,786 | |
Mid Pac Petroleum, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 10,007 | ||
Trade accounts receivable | 9,914 | ||
Inventories | 5,398 | ||
Prepaid and other current assets | 1,449 | ||
Property, plant and equipment | 39,821 | ||
Land | 34,800 | ||
Goodwill | 29,315 | ||
Intangible assets | 33,647 | ||
Other non-current assets | 1,228 | ||
Accounts payable and other current liabilities | (11,149) | ||
Deferred tax liability | (18,687) | ||
Other non-current liabilities | (7,171) | ||
Total | $ 128,572 |
Acquisitions Pro forma financia
Acquisitions Pro forma financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combinations [Abstract] | |||
Revenues | $ 870,156 | $ 1,154,620 | $ 1,672,911 |
Net income (loss) | $ (23,685) | $ 4,671 | $ (21,261) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Crude oil and feedstocks | $ 94,213 | $ 80,518 | |
Refined products and blend stock | 162,196 | 148,373 | |
Warehouse stock and other | 17,221 | 14,962 | |
Total | 273,630 | 243,853 | |
Reserves for the lower of cost or market value of inventory | 310 | 2,400 | |
Titled Inventory [Member] | |||
Crude oil and feedstocks | 7,817 | 17,924 | |
Refined products and blend stock | 34,116 | 29,998 | |
Warehouse stock and other | 17,221 | 14,962 | |
Total | 59,154 | 62,884 | |
Supply and Exchange Agreements [Member] | |||
Crude oil and feedstocks | 86,396 | 62,594 | [1] |
Refined products and blend stock | 128,080 | 118,375 | [1] |
Warehouse stock and other | 0 | 0 | [1] |
Total | $ 214,476 | $ 180,969 | [1] |
[1] | Please read Note 7—Inventory Financing Agreements for further information. |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 20,786 | |
Acquisition of Koko'oha | [1] | 29,315 |
Goodwill, ending balance | $ 50,101 | |
[1] | Please read Note 4—Acquisition for further discussion. |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | $ 44,945 | $ 44,945 | $ 11,298 | ||
Accumulated amortization of intangible assets | (5,416) | (5,416) | (3,792) | ||
Amortized intangible assets, Net | 39,529 | 39,529 | 7,506 | ||
Amortization expense | 1,000 | $ 900 | 1,600 | $ 1,800 | |
Supplier Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 3,360 | 3,360 | 3,360 | ||
Accumulated amortization of intangible assets | (645) | (645) | (516) | ||
Amortized intangible assets, Net | 2,715 | 2,715 | 2,844 | ||
Railcar Leases [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 3,249 | 3,249 | 3,249 | ||
Accumulated amortization of intangible assets | (1,626) | (1,626) | (1,301) | ||
Amortized intangible assets, Net | 1,623 | 1,623 | 1,948 | ||
Trademarks and Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 6,267 | 6,267 | 4,689 | ||
Accumulated amortization of intangible assets | (2,751) | (2,751) | (1,975) | ||
Amortized intangible assets, Net | 3,516 | 3,516 | 2,714 | ||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 32,069 | 32,069 | 0 | ||
Accumulated amortization of intangible assets | (394) | (394) | 0 | ||
Amortized intangible assets, Net | $ 31,675 | $ 31,675 | $ 0 | ||
Mid Pac Petroleum, LLC [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Average useful life | 13 years 7 months |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets Schedule of Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,015 | $ 2,650 | |
2,016 | 4,781 | |
2,017 | 3,632 | |
2,018 | 2,982 | |
2,019 | 2,982 | |
Thereafter | 22,502 | |
Total | $ 39,529 | $ 7,506 |
Inventory Financing Agreements
Inventory Financing Agreements (Textual) (Detail) barrel / d in Thousands | Jun. 01, 2015USD ($)barrel / dextension | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Amortization of Intangible Assets | $ 1,000,000 | $ 900,000 | $ 1,600,000 | $ 1,800,000 | |
Supply and exchange agreement expenses | 5,825,000 | 3,397,000 | 6,904,000 | ||
Loss on termination of financing agreements | 19,229,000 | 0 | 19,229,000 | 0 | |
Supply and Offtake Agreements [Member] | |||||
Supply and Offtake agreement term | 3 years | ||||
Number of commitment extensions | extension | 2 | ||||
Commitment period | 1 year | ||||
Barrels of crude per day provided by J. Aron | barrel / d | 94 | ||||
Handling fees | 1,500,000 | ||||
Supply and exchange agreement expenses | 100,000 | ||||
Amount of deferred payment arrangement | $ 125,000,000 | 78,200,000 | 78,200,000 | ||
Outstanding amount of deferred payment arrangement | 36,000,000 | 36,000,000 | |||
Percentage of receivables and inventory for deferred payment arrangement | 85.00% | ||||
Deferral arrangement fee | $ 1,300,000 | ||||
Supply and Exchange Agreements [Member] | |||||
Handling fees | 3,100,000 | 3,900,000 | 6,900,000 | 7,400,000 | |
Supply and exchange agreement expenses | 900,000 | 2,300,000 | |||
Interest expense and financing costs | $ 1,400,000 | $ 2,800,000 | |||
Price variance loss on commitment | 13,300,000 | ||||
Accelerated deferred financing costs | 5,600,000 | ||||
Exit fee received | $ 1,500,000 | ||||
Loss on termination of financing agreements | $ 17,400,000 | $ 17,400,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Supply and Offtake Agreements [Member] | |||||
Margin on LIBOR rate | 3.75% | ||||
Deferred payment availability fee | 0.75% |
Debt Schedule of Debt (Detail)
Debt Schedule of Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||||
Amortization of Intangible Assets | $ 1,000 | $ 900 | $ 1,600 | $ 1,800 | ||
Total debt, net of unamortized debt discount | 171,407 | 171,407 | $ 136,610 | |||
Less current maturities | (43,373) | (43,373) | (29,100) | |||
Long-term debt, net of current maturities and unamortized discount | 128,034 | 128,034 | 107,510 | |||
Retail Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 28,928 | 28,928 | 22,750 | [1] | ||
Texadian Uncommitted Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 0 | 0 | 26,500 | |||
Mid Pac Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 48,958 | 48,958 | 0 | |||
Tranche B Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 93,521 | $ 93,521 | $ 87,360 | |||
[1] | Fair value approximates carrying value due to the floating rate interest which approximates a current market rate. |
Debt Additional Information (De
Debt Additional Information (Detail) | Jun. 23, 2015USD ($) | Jun. 01, 2015USD ($) | Apr. 01, 2015USD ($)loanpayment | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | May. 15, 2015USD ($) | May. 14, 2015USD ($) | Mar. 31, 2015USD ($) | Feb. 20, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 14, 2013USD ($) | Sep. 25, 2013USD ($) |
Debt Disclosure [Line Items] | ||||||||||||||
Amortization of Intangible Assets | $ 1,000,000 | $ 900,000 | $ 1,600,000 | $ 1,800,000 | ||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Minimum | 1.15 | 1.15 | ||||||||||||
Debt maturity | $ 4,226,000 | $ 4,226,000 | ||||||||||||
Number of quarterly principle payments | payment | 28 | |||||||||||||
Maximum number of LIBOR borrowings | loan | 5 | |||||||||||||
Term loan | 171,407,000 | 171,407,000 | $ 136,610,000 | |||||||||||
Minimum Net Worth Required for Compliance | 12,000,000 | 12,000,000 | ||||||||||||
Debt Instruments, Initial Offering Price | $ 750,000,000 | |||||||||||||
ABL Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Line credit maximum borrowing amount | $ 200,000,000 | $ 125,000,000 | ||||||||||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 50,000,000 | |||||||||||||
Texadian Uncommitted Credit Agreement [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Total capacity at period end | $ 16,300,000 | $ 16,300,000 | ||||||||||||
Delayed Draw Term Loan Agreement [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt maturity | $ 35,000,000 | |||||||||||||
Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Term loan | $ 45,300,000 | |||||||||||||
Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Letters of Credit Outstanding, Amount | $ 0 | |||||||||||||
Retail Credit Agreement [Member] | HIE Retail [Member] | Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Line credit maximum borrowing amount | $ 22,000,000 | $ 30,000,000 | ||||||||||||
Covenant Compliance, Amount Of Cash On Hand | 3,000,000 | |||||||||||||
Retail Credit Agreement [Member] | HIE Retail [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Line credit maximum borrowing amount | $ 5,000,000 | |||||||||||||
Revolving credit outstanding | $ 0 | |||||||||||||
If Leverage Ratio Is Less Than Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mid Pac Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 1.75% | |||||||||||||
If Leverage Ratio Is Less Than Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mid Pac Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 2.00% | |||||||||||||
If Leverage Ratio Is Less Than Three [Member] | Base Rate [Member] | Mid Pac Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | (0.25%) | |||||||||||||
If Leverage Ratio Is Less Than Three [Member] | Base Rate [Member] | Mid Pac Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 0.00% | |||||||||||||
If Leverage Ratio Is Between Three And Three Point Five [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mid Pac Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 2.00% | |||||||||||||
If Leverage Ratio Is Between Three And Three Point Five [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mid Pac Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 2.25% | |||||||||||||
If Leverage Ratio Is Between Three And Three Point Five [Member] | Base Rate [Member] | Mid Pac Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 0.00% | |||||||||||||
If Leverage Ratio Is Between Three And Three Point Five [Member] | Base Rate [Member] | Mid Pac Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 0.25% | |||||||||||||
If Leverage Ratio Is Greater Than Three Point Five [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mid Pac Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 2.25% | |||||||||||||
If Leverage Ratio Is Greater Than Three Point Five [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mid Pac Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 2.50% | |||||||||||||
If Leverage Ratio Is Greater Than Three Point Five [Member] | Base Rate [Member] | Mid Pac Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 0.25% | |||||||||||||
If Leverage Ratio Is Greater Than Three Point Five [Member] | Base Rate [Member] | Mid Pac Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument Margin Rate | 0.50% | |||||||||||||
New Term Loans [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Term loan | $ 7,900,000 | |||||||||||||
New Term Loans [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | Term Loan [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Prepayment fee percentage | 1.00% | |||||||||||||
Mid Pac Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Line credit maximum borrowing amount | 5,000,000 | |||||||||||||
Mid Pac Credit Agreement [Member] | Secured Debt [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Line credit maximum borrowing amount | 50,000,000 | |||||||||||||
Mid Pac Petroleum, LLC [Member] | Mid Pac Credit Agreement [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Term loan | $ 55,000,000 | |||||||||||||
Other Operating Income (Expense) [Member] | ABL Revolving Credit Facility [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Financing costs expensed | $ 1,800,000 | |||||||||||||
June 30, 2015 [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 5.50 | |||||||||||||
September 30, 2015 [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 5.25 | |||||||||||||
December 31, 2015 [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 5 | |||||||||||||
2015 Fiscal Year [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 5 | |||||||||||||
2016 Fiscal Year [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4.75 | |||||||||||||
2016 Fiscal Year [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4.75 | |||||||||||||
2017 Fiscal Year [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4.25 | |||||||||||||
2017 Fiscal Year [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4.5 | |||||||||||||
2018 Fiscal Year [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4 | |||||||||||||
2018 Fiscal Year [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4.25 | |||||||||||||
2019 Fiscal Year [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 3.50 | |||||||||||||
2019 Fiscal Year, and at all times thereafter [Member] | Retail Credit Agreement [Member] | HIE Retail [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 4 | |||||||||||||
2020 fiscal Year, and all times thereafter [Member] | Retail Credit Agreement [Member] | Mid Pac Petroleum, LLC [Member] | ||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||
Debt Instrument, Covenant, Leverage Ratio Required, Maximum | 3.25 |
Debt Schedule of Maturities (De
Debt Schedule of Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,015 | $ 4,226 | |
2,016 | 47,540 | |
2,017 | 8,452 | |
2,018 | 62,886 | |
2,019 | 8,452 | |
Thereafter | 39,851 | |
Total | $ 171,407 | $ 136,610 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - shares | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock warrants outstanding (in shares) | 749,148 | 749,148 | 790,683 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value of Outstanding Common Stock Warrants (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||||
Amortization of Intangible Assets | $ 1 | $ 0.9 | $ 1.6 | $ 1.8 | |
Stock price | $ 18.72 | $ 18.72 | $ 16.25 | ||
Weighted average exercise price | 0.10 | $ 0.10 | $ 0.10 | ||
Term (years) | 7 years 2 months 1 day | 7 years 8 months | |||
Risk-free rate | 2.09% | 2.01% | |||
Expected volatility | 44.50% | 50.20% | |||
Historical volatilities period | 10 years | ||||
Fair value of common stock warrants (in usd per share) | $ 18.46 | $ 18.46 | $ 16.17 |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Amortization of Intangible Assets | $ 1,000 | $ 900 | $ 1,600 | $ 1,800 | |||
Cash collateral | 4,200 | 4,200 | |||||
Warrant [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset (Liability) | (13,832) | (13,832) | $ (12,123) | ||||
Contingent Consideration Liability [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset (Liability) | (23,555) | (23,555) | (9,131) | ||||
Embedded Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset (Liability) | 589 | 589 | 1,015 | ||||
Embedded Derivative [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset (Liability) | (1,229) | [1] | (1,229) | [1] | 1,015 | ||
Options Collar [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset (Liability) | 617 | 617 | 0 | ||||
Swap [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset (Liability) | $ 1,201 | $ 1,201 | $ 0 | ||||
[1] | Does not include cash collateral of $4.2 million recorded in Prepaid and other current assets as of June 30, 2015. |
Fair Value Measurements Pre-Tax
Fair Value Measurements Pre-Tax Gain (Loss) Recognized From Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Exchange Traded Options [Member] | ||||
Derivatives not designated as hedges, Gain (loss) recognized in income | $ 1,763 | $ 0 | $ 609 | $ 0 |
Swap [Member] | ||||
Derivatives not designated as hedges, Gain (loss) recognized in income | 1,201 | 0 | 1,201 | 0 |
Change In Value Of Warrants [Member] | Warrant [Member] | ||||
Derivatives not designated as hedges, Gain (loss) recognized in income | 3,313 | 140 | (1,709) | 1,717 |
Change in Value of Contingent Consideration [Member] | ||||
Derivatives not designated as hedges, Gain (loss) recognized in income | (9,495) | 2,297 | (14,424) | 4,762 |
Loss On Derivative Instruments, Net [Member] | Future [Member] | ||||
Derivatives not designated as hedges, Gain (loss) recognized in income | 1,338 | (340) | 762 | (191) |
Loss On Derivative Instruments, Net [Member] | Forward Contracts [Member] | ||||
Derivatives not designated as hedges, Gain (loss) recognized in income | $ 0 | $ (625) | $ 0 | $ (1,141) |
Fair Value Measurements Derivat
Fair Value Measurements Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Amortization of Intangible Assets | $ 1,000 | $ 900 | $ 1,600 | $ 1,800 | |
Embedded Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 589 | 589 | $ 1,015 | ||
Warrant [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | (13,832) | (13,832) | (12,123) | ||
Debt Prepayment Derivative [Member] | Contingent Consideration Liability [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | (23,555) | (23,555) | (9,131) | ||
Fair Value, Inputs, Level 1 [Member] | Embedded Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | (612) | (612) | 1,015 | ||
Fair Value, Inputs, Level 1 [Member] | Warrant [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Debt Prepayment Derivative [Member] | Contingent Consideration Liability [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Embedded Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 1,201 | 1,201 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Warrant [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Prepayment Derivative [Member] | Contingent Consideration Liability [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Embedded Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | (13,832) | (13,832) | (12,123) | ||
Fair Value, Inputs, Level 3 [Member] | Debt Prepayment Derivative [Member] | Contingent Consideration Liability [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair Value, Net Asset (Liability) | $ (23,555) | $ (23,555) | $ (9,131) |
Fair Value Measurements Deriv54
Fair Value Measurements Derivative Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at beginning of period | $ (31,205) | $ (25,274) | $ (21,254) | $ (29,316) |
Settlements | 0 | 0 | 0 | 0 |
Acquired | 0 | 0 | 0 | 0 |
Total unrealized income (loss) included in earnings | (6,182) | 2,437 | (16,133) | 6,479 |
Balance, at end of period | $ (37,387) | $ (22,837) | $ (37,387) | $ (22,837) |
Fair Value Measurements Carryin
Fair Value Measurements Carrying Value and Fair Value of Long-Term Debt and Other Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Amortization of Intangible Assets | $ 1,000 | $ 900 | $ 1,600 | $ 1,800 | |||
Term loan | 171,407 | 171,407 | $ 136,610 | ||||
Common stock warrants, Carrying Value | 13,832 | 13,832 | 12,123 | ||||
Common stock warrants, Fair Value | [1] | 13,832 | 13,832 | 12,123 | |||
Contingent consideration liability, Carrying Value | 23,555 | 23,555 | 9,131 | ||||
Contingent consideration liability, Fair Value | [1] | $ 23,555 | $ 23,555 | $ 9,131 | |||
Long term debt fair value | 11.36% | 11.36% | 14.11% | ||||
Retail Credit Agreement [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Line of credit, Carrying Value | $ 28,928 | $ 28,928 | $ 22,750 | [2] | |||
Lines of credit, Fair Value | [1],[2] | 28,928 | 28,928 | 22,750 | |||
Texadian Uncommitted Credit Agreement [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Line of credit, Carrying Value | 0 | 0 | 26,500 | ||||
Lines of credit, Fair Value | [1] | 26,500 | |||||
Mid Pac Credit Agreement [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Line of credit, Carrying Value | 48,958 | 48,958 | 0 | ||||
Tranche B Term Loan [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Line of credit, Carrying Value | 93,521 | 93,521 | 87,360 | ||||
Lines of credit, Fair Value | [1] | 100,514 | 100,514 | $ 87,068 | |||
Mid Pac Revolving Credit Facility [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Lines of credit, Fair Value | [1],[2] | $ 48,958 | $ 48,958 | ||||
[1] | The fair values of these instruments are considered Level 3 measurements in the fair value hierarchy. | ||||||
[2] | Fair value approximates carrying value due to the floating rate interest which approximates a current market rate. |
Commitments and Contingencies A
Commitments and Contingencies Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)claim | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)claim | Oct. 25, 2011 | |
Commitments and Contingencies [Line Items] | ||||||
Earnout payment percentage of EBITDA | 400.00% | |||||
Minimum EBITDA benchmark | $ 3,500,000 | $ 3,500,000 | ||||
maximum earnout payment amount | 4,500,000 | 4,500,000 | ||||
Contingent consideration | 23,555,000 | $ 23,555,000 | $ 9,131,000 | |||
Number of remaining claim to be resolved | claim | 27 | |||||
Remaining Filed Claims | $ 26,500,000 | |||||
Estimated value of claims remaining to be settled | 1,100,000 | |||||
Claims settled | claim | 0 | |||||
Amortization of Intangible Assets | 1,000,000 | $ 900,000 | $ 1,600,000 | $ 1,800,000 | ||
Tesoros [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Deductible for indemnification obligation | 1,000,000 | |||||
Indemnification obligation cap | 15,000,000 | 15,000,000 | ||||
Clear Air Act Violation [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Final decree low estimate | 20,000,000 | |||||
Final decree high estimate | 25,000,000 | |||||
Pending Litigation [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Claim amount for environmental losses | 1,000,000 | 1,000,000 | ||||
Tesoro Earnout Dispute [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Contingent consideration | $ 1,000,000 | $ 1,000,000 | $ 0 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Class of Stock [Line Items] | ||||
Amortization of Intangible Assets | $ 1,000 | $ 900 | $ 1,600 | $ 1,800 |
Unrecognized compensation costs related to restricted stock awards | 10,100 | $ 10,100 | ||
Period of stock option compensation cost recognition | 3 years 2 months 5 days | |||
Restricted Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Compensation cost | $ 1,700 | $ 981 | $ 3,000 | $ 1,600 |
Shares of restricted stock granted (in shares) | 46 | 174 | ||
Grants in the period, aggregate fair value | $ 1,100 | $ 3,500 | ||
Employee Stock Option [Member] | ||||
Class of Stock [Line Items] | ||||
Options, issued in period (in shares) | 9 | 152 | ||
Options, issued in period, weighted average exercise price | $ 23.49 | $ 18.80 | ||
Grants in period, aggregate fair value | $ 100 | $ 1,100 |
Benefit Plans Benefit Plans Pos
Benefit Plans Benefit Plans Post Retirement Medical Plan Net Periodic Benefit Cost (Details) - Jun. 30, 2015 - Postretirement Medical Plan [Member] - USD ($) $ in Thousands | Total | Total |
Components of net periodic benefit cost: | ||
Service cost | $ 93 | $ 185 |
Interest cost | 53 | 106 |
Amortization of prior service cost | 2 | 4 |
Net periodic benefit cost | $ 148 | $ 295 |
Benefit Plans Benefit Plans P59
Benefit Plans Benefit Plans Post Retirement Medical Plan Additional Information (Details) - 6 months ended Jun. 30, 2015 - age | Total |
Compensation and Retirement Disclosure [Abstract] | |
Post-retirement medical, maximum age of coverage | 65 |
Post-retirement medical, minimum service requirement | 5 years |
Post-retirement medical, minimum age of coverage | 55 |
Post-retirement medical, post 55, pre 2006 employee percentage of monthly insurance | 20.00% |
Post-retirement medical, post 55, post 2006 employee percentage of monthly insurance | 100.00% |
Post-retirement medical, post 2006 reduction in premium service requirement | 10 years |
Post-retirement medical, post 55 with post 2006 reduction in premium service requirement percentage of monthly insurance | 50.00% |
Basic and Diluted Loss Per Shar
Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Net income (loss) | $ 11,723 | $ (24,677) | $ 12,185 | $ (39,245) | ||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic And Diluted | [1] | 108 | 0 | 107 | 0 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ 11,615 | $ (24,677) | $ 12,078 | $ (39,245) | ||
Basic weighted-average common stock shares outstanding | 37,339,000 | 30,406,000 | 37,261,000 | 30,388,000 | ||
Add dilutive effects of common stock equivalents | [2] | $ 24 | $ 0 | $ 58 | $ 0 | |
Diluted weighted-average common stock outstanding (in shares) | 37,363,000 | 30,406,000 | 37,319,000 | 30,388,000 | ||
Income (loss) per common share, basic (USD per share) | $ 0.31 | $ (0.81) | $ 0.32 | $ (1.29) | ||
Income (loss) per common share, diluted (USD per share) | $ 0.31 | $ (0.81) | $ 0.32 | $ (1.29) | ||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average number of shares issuable under the common stock warrants (in shares) | 749,148 | 790,683 | 749,148 | 790,683 | 749,148 | |
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (shares) | 348,000 | 658,000 | 331,000 | 658,000 | ||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (shares) | 24,000 | 58,000 | ||||
[1] | Participating securities includes restricted stock that has been issued but is not yet vested. | |||||
[2] | Entities with a net loss are prohibited from including potential common shares in the computation of diluted per share amounts; therefore, we have utilized the basic shares outstanding to calculate both basic and diluted loss per share for the three and six months ended June 30, 2014. |
Income Taxes (Textual) (Detail)
Income Taxes (Textual) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Valuation allowance | $ 18,600 | |||
State tax expense | $ 22 | $ (2) | $ (43) | $ (37) |
Segment Information (Detail)
Segment Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
Revenues | $ 583,759 | $ 802,137 | $ 1,127,370 | $ 1,545,383 |
Cost of revenues | 505,031 | 779,301 | 982,537 | 1,492,350 |
Operating expense, excluding depreciation, depletion and amortization expense | 32,471 | 34,074 | 64,751 | 67,168 |
Lease operating expense | 1,508 | 1,700 | 3,039 | 2,759 |
Depreciation, depletion and amortization | 5,005 | 3,290 | 8,256 | 6,351 |
General and administrative expense | 11,814 | 5,733 | 21,939 | 10,667 |
Acquisition and integration expense | 470 | 2,419 | 1,531 | 5,270 |
Income (loss) from operations | 27,460 | (24,380) | 45,317 | (39,182) |
Loss on termination of financing agreements | (19,229) | 0 | (19,229) | 0 |
Interest expense and financing costs, net | (5,825) | (3,397) | (11,382) | (6,904) |
Other income (expense), net | (158) | (95) | (154) | (140) |
Change in value of contingent consideration | 3,313 | 140 | (1,709) | 1,717 |
Change in value of contingent consideration | (9,495) | 2,297 | (14,424) | 4,762 |
Equity earnings (losses) from Piceance Energy, LLC | (2,950) | 760 | (4,776) | 539 |
Loss before income taxes | (6,884) | (24,675) | (6,357) | (39,208) |
Income tax benefit (expense) | 18,607 | (2) | 18,542 | (37) |
Net income (loss) | 11,723 | (24,677) | 12,185 | (39,245) |
Capital expenditures | 5,126 | 3,891 | $ 9,873 | 5,909 |
Reporting segments | segment | 3 | |||
Refining Distribution and Marketing [Member] | ||||
Revenues | 475,987 | 711,696 | $ 949,559 | 1,381,739 |
Cost of revenues | 417,315 | 701,246 | 838,585 | 1,352,162 |
Operating expense, excluding depreciation, depletion and amortization expense | 22,714 | 27,958 | 49,069 | 55,129 |
Lease operating expense | 0 | 0 | 0 | 0 |
Depreciation, depletion and amortization | 2,891 | 1,917 | 5,158 | 3,621 |
General and administrative expense | 4,501 | 433 | 8,710 | 1,533 |
Acquisition and integration expense | 0 | 1,528 | 0 | 4,028 |
Income (loss) from operations | 28,566 | (21,386) | 48,037 | (34,734) |
Capital expenditures | 4,570 | 2,922 | 8,586 | 4,761 |
Retail Segment [Member] | ||||
Revenues | 80,938 | 59,419 | 127,657 | 111,250 |
Cost of revenues | 64,298 | 51,438 | 97,728 | 95,406 |
Operating expense, excluding depreciation, depletion and amortization expense | 9,757 | 6,116 | 15,682 | 12,039 |
Lease operating expense | 0 | 0 | 0 | 0 |
Depreciation, depletion and amortization | 1,590 | 557 | 2,183 | 1,111 |
General and administrative expense | 959 | 128 | 1,785 | 651 |
Acquisition and integration expense | 0 | 0 | 0 | 0 |
Income (loss) from operations | 4,334 | 1,180 | 10,279 | 2,043 |
Capital expenditures | 104 | 100 | 502 | 100 |
Natural Gas and Oil Operations [Member] | ||||
Revenues | 1,709 | 1,839 | 2,185 | 3,416 |
Cost of revenues | 0 | 0 | 0 | 0 |
Operating expense, excluding depreciation, depletion and amortization expense | 0 | 0 | 0 | 0 |
Lease operating expense | 1,508 | 1,700 | 3,039 | 2,759 |
Depreciation, depletion and amortization | 9 | 255 | 23 | 525 |
General and administrative expense | 400 | 94 | 400 | 244 |
Acquisition and integration expense | 0 | 0 | 0 | 0 |
Income (loss) from operations | (208) | (210) | (1,277) | (112) |
Capital expenditures | 0 | 676 | 0 | 748 |
Commodity Marketing And Logistics [Member] | ||||
Revenues | 25,125 | 29,183 | 47,969 | 48,978 |
Cost of revenues | 23,418 | 26,617 | 46,224 | 44,782 |
Operating expense, excluding depreciation, depletion and amortization expense | 0 | 0 | 0 | 0 |
Lease operating expense | 0 | 0 | 0 | 0 |
Depreciation, depletion and amortization | 229 | 508 | 458 | 1,014 |
General and administrative expense | 2,131 | 823 | 3,363 | 1,913 |
Acquisition and integration expense | 0 | 0 | 0 | 0 |
Income (loss) from operations | (653) | 1,235 | (2,076) | 1,269 |
Capital expenditures | 0 | 193 | 0 | 300 |
Corporate and Other [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Operating expense, excluding depreciation, depletion and amortization expense | 0 | 0 | 0 | 0 |
Lease operating expense | 0 | 0 | 0 | 0 |
Depreciation, depletion and amortization | 286 | 53 | 434 | 80 |
General and administrative expense | 3,823 | 4,255 | 7,681 | 6,326 |
Acquisition and integration expense | 470 | 891 | 1,531 | 1,242 |
Income (loss) from operations | (4,579) | (5,199) | (9,646) | (7,648) |
Capital expenditures | 452 | 0 | 785 | 0 |
Intersegment Eliminations [Member] | ||||
Revenues | (62,466) | (38,822) | (101,622) | (71,087) |
Intersegment Eliminations [Member] | Refining Distribution and Marketing [Member] | ||||
Revenues | (62,466) | (38,822) | (83,512) | (71,087) |
Intersegment Eliminations [Member] | Retail Segment [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Natural Gas and Oil Operations [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Commodity Marketing And Logistics [Member] | ||||
Revenues | 0 | 0 | (18,110) | 0 |
Intersegment Eliminations [Member] | Corporate and Other [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments [Member] | ||||
Revenues | 646,225 | 840,959 | 1,228,992 | 1,616,470 |
Operating Segments [Member] | Refining Distribution and Marketing [Member] | ||||
Revenues | 538,453 | 750,518 | 1,033,071 | 1,452,826 |
Operating Segments [Member] | Retail Segment [Member] | ||||
Revenues | 80,938 | 59,419 | 127,657 | 111,250 |
Operating Segments [Member] | Natural Gas and Oil Operations [Member] | ||||
Revenues | 1,709 | 1,839 | 2,185 | 3,416 |
Operating Segments [Member] | Commodity Marketing And Logistics [Member] | ||||
Revenues | 25,125 | 29,183 | 66,079 | 48,978 |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Related Party Transaction (Text
Related Party Transaction (Textual) (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Sep. 17, 2013 | |
Percentage ownership of Par common stock | 10.00% | |
Travel and out of pocket expenses | $ 50 | |
Investor [Member] | ||
Initial term of service agreements | 1 year | |
Services Agreements, Renewal Term | 1 year | |
Termination period between extension date | 60 days |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | May. 29, 2015 | Mar. 09, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jul. 30, 2015 | May. 28, 2015 |
Subsequent Event [Line Items] | |||||||
Additional investment by third party | $ 27,529 | $ 0 | |||||
Piceance Energy [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Additional investment by third party | $ 13,800 | $ 13,800 | |||||
Ownership of Piceance Energy, LLC | 34.00% | 34.00% | 33.34% | ||||
Piceance Energy [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ownership of Piceance Energy, LLC | 32.40% | 34.00% | |||||
Unaffiliated Third Party [Member] | Piceance Energy [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Additional investment by third party | $ 19,000 |