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TREC
“Natural Energy Resources You Can Trust”
Your Specialty Chemical Partner
January 2015
2
Safe Harbor
Statements in this presentation that are not historical facts are forward looking
statements as defined in the Private Securities Litigation Reform Act of 1995. Forward
looking statements are based upon Management's belief, as well as, assumptions
made by and information currently available to Management. Because such
statements are based upon expectations as to future economic performance and are
not statements of fact, actual results may differ from those projected. These risks, as
well as others, are discussed in greater detail in Trecora Resources' filings with the
Securities and Exchange Commission, including Trecora Resources' Annual Reports on
Form 10-K for the year ended December 31, 2013, and the Company‘s subsequent
Quarterly Reports on Form 10-Q.
3
TREC Snapshot
Share Price & Volume
Ticker (NYSE: TREC)
Stock Price1 $14.08
52 Week High / Low1 $15.61 / $9.72
Market Cap1 $341 M
Avg. Daily Volume
(3 month)1
68,119
Shares Outstanding 24.0 M
Float 19.2 M
Insider Ownership 24%
Total Debt2 9.2 M
Current Ratio2 2.9:1
1. All market statistics as of January 15, 2015
2. All balance sheet items as of September 30, 2014
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Volume
StockPrice
Volume TREC Price
4
Resource UpsideResource Upside
Trecora Focus
SHR
High-Purity Light
Hydrocarbons
C5
Silsbee, TX
TC
Specialty Olefin
Waxes
C2
Pasadena, TX
SHR/TC
Custom
Processing
Silsbee, TX
Pasadena, TX
Core Specialty ChemicalCore Specialty Chemical
AMAK
Zinc and Copper
Mine
35% Owner
Najran Province, KSA
• Valued at $138 mm (2011)
• IPO Scheduled Late 2016
• Significant operational
improvements underway
with newly installed
management team
90% Revenues 5% Revenues
5% Revenues
5
South Hampton Resources:
Specialty Chemical Segment
SHR is an independent, petrochemical
manufacturer in southeast Texas, specializing in
manufacturing high purity petrochemical
hydrocarbons.
 TTM Revenues: $252.3 Million (as of 3Q14)
 TTM Adj. EBITDA: $26.1 Million (as of 3Q14)
 190 Employees
 80 Acres in Silsbee, TX
Leader in High Purity
Petrochemical
Hydrocarbons with
International Exposure
Dominant Player International Exposure Pipeline/Terminal Access
South Hampton
Resources
Natural Gas 
Natural Gasoline
Rail/Truck 
75%Market Share
TX
6
SHR Products & Applications
Product:
 Normal Pentane
Application:
 Blowing Agent
 Condensing
Agent
End Products:
 Expandable
Polystyrene
(EPS) Cup Grade
/ Polyurethane
Insulation Foams
 Polyethylene
(PE)
Product:
 Isopentane
Application:
 Expanding Agent
 Condensing
Agent
 Catalyst Carrier
End Products:
 Foam Packaging
 Polyethylene
(PE)
 Catalyst used in
production of
Polyethylene
(PE) and
Polypropylene
(PP)
Product:
 Normal Pentane
/ Isopentane
Blends (Pentane
Blends)
Application:
 Agent used in
Blowing /
Expanding
End Products:
 EPS Block and
Shape Foams,
Polyurethane
Insulation
Foams,
Extraction
Solvent
Product:
 Normal Hexane
Application:
 Carrier or
Diluents
 Catalyst Carrier
End Products:
 Polyethylene
(PE),
Polypropylene
(PP) and
Synthetic Rubber
(SR)
 Catalyst used in
production of
PE, PP and SR
Product:
 Other
Applications /
Processes
Application:
 Geothermal,
Adhesives,
Elastomers,
Agricultural,
ROSE Units, and
Specialty Fuels
Product:
 Isohexane
Application:
 Carrier or
Diluents
 Catalyst Carrier
End Products:
 PE, PP, and SR
 Catalyst used in
production of PE
and SR
7
SHR Blue Chip Customers
8
SHR Financial Overview
139.1
199.5
222.9
236.2
0
50.0
100.0
150.0
200.0
250.0
2010 2011 2012 2013
in$millions
Total Revenue
8.2
16.9
20.9
23.8
0
5
10
15
20
25
2010 2011 2012 2013
in$millions
Total Adj. EBITDA
46.7
54.3
65.6
85.7
0.0
20.0
40.0
60.0
80.0
100.0
2010 2011 2012 2013
inmillionsofgallons Total Volumes Sold
CAGR
19%
CAGR
43%
CAGR
22%
9
Trecora Chemical:
Specialty Waxes Segment
Trecora Chemical (fka SSI ChuseI) is a producer
of polyethylene wax and wax derivatives with
production capabilities beyond 40 million
pounds per year.
 2013 Sales: $23.1 Million
 2013 EBITDA: $6.6 Million
 75 Employees
 22 Acres in Pasadena, TX
Advantaged Business
Development,
Transportation and
Feedstock Supply
Chemical Complex Port of Houston Feedstock Supply
Trecora Chemical
Nitrogen 
Hydrogen 
Ethylene 
Steam 
10
TC Financial Overview
Total Revenue Total EBITDA
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2011 2012 2013
in$millions
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2011 2012 2013
in$millions
CAGR
10%
CAGR
17%
 Additional information and financials, including pro forma, were filed in Form 8-
K/A on December 10, 2014.
11
TC Capacity & Utilization
Current permitted wax capacity of 40 million lbs./yr
Additional plant optimization and expansion
anticipated
Building to meet the needs of the market
oCapitalizing on the ethylene resurgence in the U.S
12
Custom Processing – Business Models
SHR – Build and run dedicated equipment, long term contracts
TC – Flexible equipment – campaign then switch to new
product for next customer. Customers may be long term with
recurring campaigns or shorter term.
13
Custom Processing Overview
Many chemical manufacturers seek toll processing
relationships to drive costs down, reduce internal assets and
focus more on core R&D/engineering processes.
Contractual take or pay basis with high gross and operating
margins
Customers supply and maintain title to their feedstock.
Process feedstock into products based upon customer
specifications
Strategy & Execution
15
Strategic Objectives: Trecora Resources
Create Near-Term Growth
 Maximize utilization of current capacity
 Expand Toll Processing customer base
 Develop international business
Improve Profitability
 Improve margins
 Control costs
Integrate Trecora Chemical
 Provide superior service
 Produce consistent product
Position for Future Growth
 “D” Train expansion for additional 4,000 barrels/day is underway
o Phased startup early 2015, full operation by Q4 2015
 Strategic acquisitions to add new products / diversify customer base – done via TC
 Additional custom process capacity at TC operational by Q4 2015.
16
Enhancing the Revenue Mix
FOCUSING ON THE CORE SPECIALTY CHEMICAL BUSINESS
Trecora has diversified its revenue mix with a focus on growing
its core specialty chemical business while expanding operating
margins.
Historical Trecora EBITDA Margins >10%
TC Wax EBITDA Margins >20%
Custom Processing EBITDA Margins >30%
17
2014 Financial Highlights
Revenue
 3Q: up 26% to $76.9 million
 YTD: up 27% to $215.6 million
Operating Income
 3Q: up 35% to $8.8 million
 YTD: up 41% to $20.6 million
Cash Provided by Operations
 YTD: $18.3 million
Cash and equivalents as of 9/30/14: $13.9 million
18
AMAK Mine Basics
 Mining lease of approximately 44 square kilometers in Saudi Arabia
 TREC has 35.25% ownership in AMAK
 In operation and profitable since July 2012
 New aligned management team is in place
 Talc circuit being expanded, operable in 4th quarter- Quality, recovery improvement
 Precious metals circuit being modified, operational late 2014- Gold and silver
recovery, improvement
 IPO currently scheduled for late 2016 - Opportunity to monetize, determine value
19
Value Proposition
 Undervalued Specialty Chemical Company with Mining Upside
o TREC is undervalued relative to its peers at current valuation multiples
• Pro forma the Chusei acquisition ($27.3 Million Proforma ytd 9/30/14 Adjusted EBITDA); and
• Factoring in 35% equity ownership value for AMAK (Base $138 Million Equity Valuation Pre-IPO)
 Manufacturer that Benefits in a Lower Commodity Pricing Environment
o With oil prices in a decline, feedstock costs are depressed and provide for greater margins
 Niche, Mission Critical Processing Components for the Chemical Industry
o Highly specialized processing components of a growing chemical manufacturing industry
 Internationally Competitive in High Growth Emerging Markets
o Record sales into Canada, Middle East and Asia and expanding into other markets
 Aligned, Proven Management Team that has Executed on its Core Strategy
o Nick Carter – 25+ years in a leadership position; South Hampton Resources since 1977
o Simon Upfill-Brown – President of South Hampton Resources
o Peter Loggenberg, PhD – President of Trecora Chemical
20
Q&A
Thank you
Please visit our websites:
www.trecora.com
www.southhamptonr.com
www.TrecChem.com
www.amak.com.sa
Appendix: Non-GAAP/Products/Applications/Facilities
22
Appendix
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES(1)
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP.
09/30/14
(in thousands except ratio
Current assets 56,888$
Current liabilities 19,669
Working capital 37,219$
(current assets less current liabilities)
Current ratio 2.9
(current assets divided by current liabilities)
9/30/2014
Net income
$ 13,488
Effects of AMAK
687
Interest
1,805
Taxes
6,247
Depreciation
5,114
Adjusted EBITDA
$ 27,341
23
SHR Penhex Capacity & Utilization
 Capacity doubled in 2008 into two independent process units 6,000 B/D
feed total
 Debottlenecked during 2013 and 2014 to current committed capacity of
7,000 B/D feed total
 Capacity to be increased by 60% to 11,000 B/D feed total by YE 2015 with
addition of a third process train (approximately $30mm project)
 Expected to periodically utilize capacity during 2014
 Building to meet the needs of the market
o Shale gas has spawned capital investment by our customers
o Our goal is to keep the market satisfied
24
Chusei Products & Applications
Products:
 Polyethylene Waxes
 Oxidized Waxes
 Polypropylene Waxes
 Wax Blends
Applications:
 Flow Modifiers
 Nucleating Agents
 Anti-blocking Agents
 Mold Release Agents
 Heat Resistance
 Release Agents
 Improved Slip
 Characteristics
 Improved Rub
Resistance
 Matting Effects
 Scratch Resistance
End Products:
 PVC
 Toner
 Hot Melt Adhesives
 Emulsions
 Rubber Compounding
 Coating
 Blender
 Asphalt Roads
 Process Aids
 Molds
25
TC: Specialty Waxes Segment
TC is a respected manufacturer of polyethylene waxes, polyols, resins and
custom processed specialty waxes.
 TC has 4% market share of highly-fragmented market with great
opportunity to capture additional market share
 Strategic location (Pasadena) provides for competitive advantages
 Enjoy higher operating margins
TC provides specialty wax expertise and additional custom processing capabilities.
26
Custom Processing Facilities
Dedicated Custom Processing
(Silsbee, TX)
• White Oils capacity 2,000
barrels/day
• Aromatic Oil capacity 500
barrels/ day
• Bio-jet demonstration unit
10,000 gallons/month
• Para-xylene demonstration unit
started up in September 2013
Multi-Purpose Custom
Processing
(Pasadena, TX)
• Fixed Bed Reactors
• Ceramic Line Vessels
• SS Vessels
• Steam Boilers
• Short-Path Distillation Unit
(WFE)
• Sandvik Pastillation Belts
• Buflovak Drum Flakers
27
SHR is a specialty chemical manufacturer of pentanes, hexanes and blended
products.
SHR is known in the industry for high purity, consistent product and
unmatched customer service.
25%
25%13%
11%
26% Isopentane
Normal Pentane
Normal Hexane
Isohexane
Other/Byproducts
Approximate % of Revenue
SHR provides crucial processing components to the manufacturing sector.
South Hampton Resources:
Specialty Chemical Segment

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Trec

  • 1. Click to edit Master title style TREC “Natural Energy Resources You Can Trust” Your Specialty Chemical Partner January 2015
  • 2. 2 Safe Harbor Statements in this presentation that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon Management's belief, as well as, assumptions made by and information currently available to Management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Trecora Resources' filings with the Securities and Exchange Commission, including Trecora Resources' Annual Reports on Form 10-K for the year ended December 31, 2013, and the Company‘s subsequent Quarterly Reports on Form 10-Q.
  • 3. 3 TREC Snapshot Share Price & Volume Ticker (NYSE: TREC) Stock Price1 $14.08 52 Week High / Low1 $15.61 / $9.72 Market Cap1 $341 M Avg. Daily Volume (3 month)1 68,119 Shares Outstanding 24.0 M Float 19.2 M Insider Ownership 24% Total Debt2 9.2 M Current Ratio2 2.9:1 1. All market statistics as of January 15, 2015 2. All balance sheet items as of September 30, 2014 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 Volume StockPrice Volume TREC Price
  • 4. 4 Resource UpsideResource Upside Trecora Focus SHR High-Purity Light Hydrocarbons C5 Silsbee, TX TC Specialty Olefin Waxes C2 Pasadena, TX SHR/TC Custom Processing Silsbee, TX Pasadena, TX Core Specialty ChemicalCore Specialty Chemical AMAK Zinc and Copper Mine 35% Owner Najran Province, KSA • Valued at $138 mm (2011) • IPO Scheduled Late 2016 • Significant operational improvements underway with newly installed management team 90% Revenues 5% Revenues 5% Revenues
  • 5. 5 South Hampton Resources: Specialty Chemical Segment SHR is an independent, petrochemical manufacturer in southeast Texas, specializing in manufacturing high purity petrochemical hydrocarbons.  TTM Revenues: $252.3 Million (as of 3Q14)  TTM Adj. EBITDA: $26.1 Million (as of 3Q14)  190 Employees  80 Acres in Silsbee, TX Leader in High Purity Petrochemical Hydrocarbons with International Exposure Dominant Player International Exposure Pipeline/Terminal Access South Hampton Resources Natural Gas  Natural Gasoline Rail/Truck  75%Market Share TX
  • 6. 6 SHR Products & Applications Product:  Normal Pentane Application:  Blowing Agent  Condensing Agent End Products:  Expandable Polystyrene (EPS) Cup Grade / Polyurethane Insulation Foams  Polyethylene (PE) Product:  Isopentane Application:  Expanding Agent  Condensing Agent  Catalyst Carrier End Products:  Foam Packaging  Polyethylene (PE)  Catalyst used in production of Polyethylene (PE) and Polypropylene (PP) Product:  Normal Pentane / Isopentane Blends (Pentane Blends) Application:  Agent used in Blowing / Expanding End Products:  EPS Block and Shape Foams, Polyurethane Insulation Foams, Extraction Solvent Product:  Normal Hexane Application:  Carrier or Diluents  Catalyst Carrier End Products:  Polyethylene (PE), Polypropylene (PP) and Synthetic Rubber (SR)  Catalyst used in production of PE, PP and SR Product:  Other Applications / Processes Application:  Geothermal, Adhesives, Elastomers, Agricultural, ROSE Units, and Specialty Fuels Product:  Isohexane Application:  Carrier or Diluents  Catalyst Carrier End Products:  PE, PP, and SR  Catalyst used in production of PE and SR
  • 7. 7 SHR Blue Chip Customers
  • 8. 8 SHR Financial Overview 139.1 199.5 222.9 236.2 0 50.0 100.0 150.0 200.0 250.0 2010 2011 2012 2013 in$millions Total Revenue 8.2 16.9 20.9 23.8 0 5 10 15 20 25 2010 2011 2012 2013 in$millions Total Adj. EBITDA 46.7 54.3 65.6 85.7 0.0 20.0 40.0 60.0 80.0 100.0 2010 2011 2012 2013 inmillionsofgallons Total Volumes Sold CAGR 19% CAGR 43% CAGR 22%
  • 9. 9 Trecora Chemical: Specialty Waxes Segment Trecora Chemical (fka SSI ChuseI) is a producer of polyethylene wax and wax derivatives with production capabilities beyond 40 million pounds per year.  2013 Sales: $23.1 Million  2013 EBITDA: $6.6 Million  75 Employees  22 Acres in Pasadena, TX Advantaged Business Development, Transportation and Feedstock Supply Chemical Complex Port of Houston Feedstock Supply Trecora Chemical Nitrogen  Hydrogen  Ethylene  Steam 
  • 10. 10 TC Financial Overview Total Revenue Total EBITDA $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2011 2012 2013 in$millions $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2011 2012 2013 in$millions CAGR 10% CAGR 17%  Additional information and financials, including pro forma, were filed in Form 8- K/A on December 10, 2014.
  • 11. 11 TC Capacity & Utilization Current permitted wax capacity of 40 million lbs./yr Additional plant optimization and expansion anticipated Building to meet the needs of the market oCapitalizing on the ethylene resurgence in the U.S
  • 12. 12 Custom Processing – Business Models SHR – Build and run dedicated equipment, long term contracts TC – Flexible equipment – campaign then switch to new product for next customer. Customers may be long term with recurring campaigns or shorter term.
  • 13. 13 Custom Processing Overview Many chemical manufacturers seek toll processing relationships to drive costs down, reduce internal assets and focus more on core R&D/engineering processes. Contractual take or pay basis with high gross and operating margins Customers supply and maintain title to their feedstock. Process feedstock into products based upon customer specifications
  • 15. 15 Strategic Objectives: Trecora Resources Create Near-Term Growth  Maximize utilization of current capacity  Expand Toll Processing customer base  Develop international business Improve Profitability  Improve margins  Control costs Integrate Trecora Chemical  Provide superior service  Produce consistent product Position for Future Growth  “D” Train expansion for additional 4,000 barrels/day is underway o Phased startup early 2015, full operation by Q4 2015  Strategic acquisitions to add new products / diversify customer base – done via TC  Additional custom process capacity at TC operational by Q4 2015.
  • 16. 16 Enhancing the Revenue Mix FOCUSING ON THE CORE SPECIALTY CHEMICAL BUSINESS Trecora has diversified its revenue mix with a focus on growing its core specialty chemical business while expanding operating margins. Historical Trecora EBITDA Margins >10% TC Wax EBITDA Margins >20% Custom Processing EBITDA Margins >30%
  • 17. 17 2014 Financial Highlights Revenue  3Q: up 26% to $76.9 million  YTD: up 27% to $215.6 million Operating Income  3Q: up 35% to $8.8 million  YTD: up 41% to $20.6 million Cash Provided by Operations  YTD: $18.3 million Cash and equivalents as of 9/30/14: $13.9 million
  • 18. 18 AMAK Mine Basics  Mining lease of approximately 44 square kilometers in Saudi Arabia  TREC has 35.25% ownership in AMAK  In operation and profitable since July 2012  New aligned management team is in place  Talc circuit being expanded, operable in 4th quarter- Quality, recovery improvement  Precious metals circuit being modified, operational late 2014- Gold and silver recovery, improvement  IPO currently scheduled for late 2016 - Opportunity to monetize, determine value
  • 19. 19 Value Proposition  Undervalued Specialty Chemical Company with Mining Upside o TREC is undervalued relative to its peers at current valuation multiples • Pro forma the Chusei acquisition ($27.3 Million Proforma ytd 9/30/14 Adjusted EBITDA); and • Factoring in 35% equity ownership value for AMAK (Base $138 Million Equity Valuation Pre-IPO)  Manufacturer that Benefits in a Lower Commodity Pricing Environment o With oil prices in a decline, feedstock costs are depressed and provide for greater margins  Niche, Mission Critical Processing Components for the Chemical Industry o Highly specialized processing components of a growing chemical manufacturing industry  Internationally Competitive in High Growth Emerging Markets o Record sales into Canada, Middle East and Asia and expanding into other markets  Aligned, Proven Management Team that has Executed on its Core Strategy o Nick Carter – 25+ years in a leadership position; South Hampton Resources since 1977 o Simon Upfill-Brown – President of South Hampton Resources o Peter Loggenberg, PhD – President of Trecora Chemical
  • 20. 20 Q&A Thank you Please visit our websites: www.trecora.com www.southhamptonr.com www.TrecChem.com www.amak.com.sa
  • 22. 22 Appendix RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES(1) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. 09/30/14 (in thousands except ratio Current assets 56,888$ Current liabilities 19,669 Working capital 37,219$ (current assets less current liabilities) Current ratio 2.9 (current assets divided by current liabilities) 9/30/2014 Net income $ 13,488 Effects of AMAK 687 Interest 1,805 Taxes 6,247 Depreciation 5,114 Adjusted EBITDA $ 27,341
  • 23. 23 SHR Penhex Capacity & Utilization  Capacity doubled in 2008 into two independent process units 6,000 B/D feed total  Debottlenecked during 2013 and 2014 to current committed capacity of 7,000 B/D feed total  Capacity to be increased by 60% to 11,000 B/D feed total by YE 2015 with addition of a third process train (approximately $30mm project)  Expected to periodically utilize capacity during 2014  Building to meet the needs of the market o Shale gas has spawned capital investment by our customers o Our goal is to keep the market satisfied
  • 24. 24 Chusei Products & Applications Products:  Polyethylene Waxes  Oxidized Waxes  Polypropylene Waxes  Wax Blends Applications:  Flow Modifiers  Nucleating Agents  Anti-blocking Agents  Mold Release Agents  Heat Resistance  Release Agents  Improved Slip  Characteristics  Improved Rub Resistance  Matting Effects  Scratch Resistance End Products:  PVC  Toner  Hot Melt Adhesives  Emulsions  Rubber Compounding  Coating  Blender  Asphalt Roads  Process Aids  Molds
  • 25. 25 TC: Specialty Waxes Segment TC is a respected manufacturer of polyethylene waxes, polyols, resins and custom processed specialty waxes.  TC has 4% market share of highly-fragmented market with great opportunity to capture additional market share  Strategic location (Pasadena) provides for competitive advantages  Enjoy higher operating margins TC provides specialty wax expertise and additional custom processing capabilities.
  • 26. 26 Custom Processing Facilities Dedicated Custom Processing (Silsbee, TX) • White Oils capacity 2,000 barrels/day • Aromatic Oil capacity 500 barrels/ day • Bio-jet demonstration unit 10,000 gallons/month • Para-xylene demonstration unit started up in September 2013 Multi-Purpose Custom Processing (Pasadena, TX) • Fixed Bed Reactors • Ceramic Line Vessels • SS Vessels • Steam Boilers • Short-Path Distillation Unit (WFE) • Sandvik Pastillation Belts • Buflovak Drum Flakers
  • 27. 27 SHR is a specialty chemical manufacturer of pentanes, hexanes and blended products. SHR is known in the industry for high purity, consistent product and unmatched customer service. 25% 25%13% 11% 26% Isopentane Normal Pentane Normal Hexane Isohexane Other/Byproducts Approximate % of Revenue SHR provides crucial processing components to the manufacturing sector. South Hampton Resources: Specialty Chemical Segment