Parent Company of Hawaii Independent Energy Announces Acquisition of Mid Pac Petroleum | Business Wire

<p>HONOLULU–(BUSINESS WIRE)–Par Petroleum Corporation (OTCQB:PARR), the parent company of Hawaii

Independent Energy, LLC, today announced that it's reached an

agreement to acquire Koko’oha Investments, Inc., the parent company of

Mid Pac Petroleum, LLC that's the exclusive licensee of the “76” brand

in the State of Hawaii. Approximately $107 million, subject to

adjustment as set forth in the merger agreement. Mid Pac operates or

distributes through more than 80 retail sites and four terminals across

Hawaii.

“Acquiring Mid Pac will provide a unique expansion opportunity for our

Hawaii business. The access to additional retail sites will provide

synergies by increasing on-island sales of our refined products,

optimizing distribution costs and enhancing crude slate flexibility,”

said William Monteleone, chief executive officer of Par Petroleum. “In

addition, Mid Pac’s fee-owned real estate portfolio, consisting of

retail locations, terminals and office space, provides excellent

underlying asset value,” added Mr. Monteleone.

The added local gasoline and diesel sales for the Hawaii Independent

Energy refinery in Kapolei will spell benefits for Hawaii, noted Peter

Coxon, Par’s chief operating officer. “The increased local sales will

enable HIE to better optimize its operations and production slate,

providing Hawaii with stronger on-island refining capability,

high-quality manufacturing jobs. A more secure energy supply,” Mr.

Coxon said.

“I’m excited about what this means for Mid Pac and its employees,” said

Jim Yates, president and chief executive officer of Mid Pac Petroleum.

“The joining of HIE and Mid Pac creates a strong, vertically integrated

Hawaii-based refining and marketing company which provides stability for

our employees and dealers and strengthens an important energy source for

Hawaii.”

Mr. Yates is no stranger to refining in the Islands, having served as an

executive with a former owner of the Kapolei facility, BHP Hawaii. “This

is a homecoming of sorts for me. I’m pleased that Par Petroleum does

not foresee making any staffing changes as they welcome Mid Pac

employees to their family of companies,” he said. “It’s also encouraging

to be a part of merging two companies with such deep local roots and

such long-standing commitments to investing in Hawaii and supporting

local non-profits. This transaction will ensure that those commitments

can continue,” Yates added.

Details of the transition are still to be worked out. Par Petroleum

anticipates finalizing the transaction sometime in the third quarter of

2014, subject to regulatory and other approvals. In September 2013, Par

Petroleum finalized the acquisition of Tesoro Hawaii, LLC, which

included the larger of the State’s two petroleum refineries, related

product storage and distribution assets. 31 Tesoro-branded gasoline

stations on Oahu, Hawaii Island and Maui.

About Par Petroleum Corporation

Par Petroleum Corporation is a Houston-based company that manages and

maintains interests in a variety of energy-related assets. Par is a

growth company that looks for acquisitions with strong fundamentals and

employees who can move the business forward.

Par, through its subsidiaries, owns and operates a 94,000 bpd

refinery located in Hawaii on the island of Oahu. This refinery,

together with substantial storage capacity, a 27-mile pipeline system,

terminals. Retail outlets, provides a substantial portion of the

energy demands of Hawaii.

Par’s largest oil and gas asset is its investment in Piceance Energy,

LLC, which owns and operates natural gas reserves located in the

Piceance Basin of Colorado.

Par also markets, transports and distributes crude petroleum-based

energy products. With significant logistics capability on key pipeline

systems, a rail car fleet. A fleet of chartered barge tows, Par

believes it's a competitive advantage in moving crude oil efficiently

from land locked locations in the Western U.S. and Canada to the

refining hubs in the Midwest, the Gulf Coast. The East Coast.

About Mid Pac Petroleum

Mid Pac Petroleum is a Hawaii-based petroleum marketer and

distributor that's exclusive rights to the 76 brand for petroleum

sales in Hawaii. The company has 150 employees and distributes gasoline

and diesel through more than 80 retail locations throughout the state.

It also owns and operates petroleum product terminals and trucking

operations in Hawaii and is the first petroleum retailer on Oahu to

offer biodiesel to customers.

About Hawaii Independent Energy

Hawaii Independent Energy is the leading provider of transportation

fuels in the Islands. Altogether, there are more than 500 local

employees that make and distribute refined petroleum products such as

gasoline, diesel, marine fuel. Fuel oil to meet Hawaii’s energy

needs. Hawaii Independent Energy’s refinery in Kapolei is the larger of

the state’s two oil refineries. Hawaii Independent Energy supplies 31

Tesoro-branded retail stations on Oahu, Maui and the Big Island.

Forward-Looking Statements

This press release includes “forward-looking statements” within the

meaning of Section 27A of the Securities Act of 1933, as amended.

Section 21E of the Securities Exchange Act of 1934, as amended. All

statements other than statements of historical fact are forward-looking

statements. Forward-looking statements are subject to certain risks,

trends and uncertainties that could cause actual results to differ

materially from those projected. Among those risks, trends and

uncertainties are our ability to successfully complete the pending

acquisition of Mid Pac, integrate it into our operations and realize the

anticipated benefits from the acquisition. Our ability to identify all

potential risks and liabilities in our due diligence of Mid Pac and its

business. Any unexpected costs or delays in connection with the pending

acquisition of Mid Pac. Risks associated with the integration of HIE.

the volatility of crude oil and refined product prices. Uncertainties

inherent in estimating oil, natural gas and NGL reserves. Environmental

risks. Risks of political or regulatory changes. Although the

company believes that in making such forward-looking statements its

expectations are based upon reasonable assumptions, such statements may

be influenced by factors that could cause actual outcomes and results to

be materially different from those projected. The company can't assure

that the assumptions upon which these statements are based will prove to

have been correct. Important risk factors that may affect the

company’s business, results of operations and financial position are

discussed in its most recently filed Annual Report on Form 10-K, as

amended, recent Quarterly Reports on Form 10-Q, recent Current Reports

on Form 8-K and other SEC filings.