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1. Company Snapshot

1.a. Company Description

Par Pacific Holdings, Inc.owns and operates energy and infrastructure businesses.The company operates through three segments: Refining, Retail, and Logistics.


The Refining segment owns and operates three refineries that produces ultra-low sulfur diesel, gasoline, jet fuel, marine fuel, distillate, asphalt, low sulfur fuel oil, and other associated refined products primarily for consumption in Hawaii, Pacific Northwest, Wyoming, and South Dakota.The Retail segment operates 119 fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho under the Cenex, nomnom, and Zip Trip brand names.The Logistics segment owns and operates terminals, pipelines, a single point mooring, and trucking operations to distribute refined products throughout the island of Oahu, Maui, Hawaii, Molokai, and Kauai.


It also leases marine vessels; owns and operates a crude oil pipeline gathering system, a refined products pipeline, storage facilities, and loading racks in Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota.In addition, this segment owns and operates a marine terminal, a unit train-capable rail loading terminal, storage facilities, a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord.The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc.


in October 2015.Par Pacific Holdings, Inc.was incorporated in 1984 and is headquartered in Houston, Texas.

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1.b. Last Insights on PARR

Par Pacific Holdings, Inc.'s recent performance was driven by strong Q2 2025 earnings, with EPS jumping 214% and beating estimates. The company's robust refining, retail, and logistics performance contributed to its growth. A joint venture in Hawaii for renewable fuels production, with Mitsubishi Corporation and ENEOS Corporation acquiring a 36.5% equity stake, positions PARR as a leader in renewable fuels. Additionally, The Goldman Sachs Group raised their price target on the stock from $34.00 to $40.00, citing growth potential.

1.c. Company Highlights

2. Par Pacific's Q2 2025 Earnings: A Strong Performance

Par Pacific reported adjusted EBITDA of $138 million and adjusted net income of $1.54 per share for Q2 2025, significantly beating estimates of $0.74 per share. The company's operational performance was solid, with a quarterly throughput record in Hawaii and a successful turnaround in Montana. Product margins remained firm, with a combined index of approximately $13 per barrel. The retail business also performed well, with same-store fuel and in-store revenue increasing by 1.8% and 3%, respectively.

Publication Date: Aug -26

📋 Highlights
  • Strong EBITDA and Net Income:: Adjusted EBITDA of $138 million and adjusted net income of $1.54 per share in Q2 2025.
  • Joint Venture Equity Stake:: $100 million equity contribution from Mitsubishi and ENEOS for a 36.5% stake in a renewable fuels partnership.
  • Share Repurchase Impact:: $28 million in Q2 stock buybacks reduced shares by 8% year-to-date.
  • Liquidity Position:: Ending liquidity of $650 million, exceeding the $250–300 million target for strategic flexibility.
  • RIN Exposure:: Gross RIN unit exposure of $140 million for mainland refineries through 2024.

Financial Highlights

The company's financial performance was robust, driven by strong operational execution and favorable market conditions. The adjusted EPS of $1.54 was a significant beat versus estimates, indicating a strong underlying business. Revenue growth is expected to decline by 6.1% next year, according to analyst estimates, but the company's ability to maintain profitability is a positive sign.

Capital Allocation and Share Buybacks

Par Pacific repurchased $28 million of stock in Q2, bringing the year-to-date share count down by nearly 8%. The company's balance sheet is in good shape, with ending liquidity of nearly $650 million, providing flexibility to pursue strategic objectives and opportunistically repurchase shares. As the management team noted, "We're focused on actively weighing our growth prospects... against opportunities to repurchase stock and other capital allocation alternatives."

Valuation and Return Metrics

With a P/E Ratio of -91.49 and an EV/EBITDA of 14.76, the company's valuation multiples indicate a potentially undervalued stock. The P/B Ratio of 1.53 and P/S Ratio of 0.22 also suggest that the stock may be attractively priced. Return metrics, however, are mixed, with an ROIC of 2.56% and an ROE of -1.63%. The Net Debt / EBITDA ratio of 6.78 indicates a relatively high level of debt.

Outlook and Market Conditions

Looking forward, strong market conditions, reduced capital spending requirements, and the expected receipt of JV proceeds position the company to drive strong cash generation. The company expects to use its excess capital to return value to shareholders, potentially through share buybacks or other means. The distillate market is strong, driven by open export markets and reduced supply of biodiesel or renewable diesel, with the combined index around $13. The company's partnership with Mitsubishi and ENEOS Corporation is also expected to strengthen its renewable fuels capabilities.

3. NewsRoom

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DC Investments Liquidated 301K PARR Shares Valued at Approximately $8 Million

Nov -10

Source: fool.com

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5 Broker-Adored Stocks to Keep an Eye on for Strong Returns

Nov -10

Source: zacks.com

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Par Petroleum (PARR) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -07

Source: zacks.com

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Par Pacific Holdings, Inc. (PARR) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Andatee China Marine Fuel Services (OTCMKTS:AMCF) & Par Pacific (NYSE:PARR) Critical Survey

Nov -05

Source: defenseworld.net

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Par Petroleum (PARR) Q3 Earnings and Revenues Top Estimates

Nov -05

Source: zacks.com

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Par Pacific Holdings Reports Third Quarter 2025 Results

Nov -04

Source: globenewswire.com

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Y Intercept Hong Kong Ltd Makes New Investment in Par Pacific Holdings, Inc. $PARR

Nov -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.08%)

6. Segments

Refining

Expected Growth: 4.0%

Par Pacific Holdings, Inc.'s refining segment growth of 4.0% is driven by increasing demand for refined products, strategic acquisitions, and optimization of refining operations. Additionally, the company's focus on high-margin products, such as diesel and jet fuel, contributes to its growth. Furthermore, the company's ability to capitalize on favorable market conditions, including low crude oil prices, also supports its refining segment growth.

Retail

Expected Growth: 4.83%

Par Pacific Holdings, Inc.'s Retail segment growth of 4.83% is driven by increasing demand for convenience stores, strategic acquisitions, and expansion of retail operations in Hawaii and Texas. Additionally, the company's focus on improving customer experience, investing in technology, and optimizing store layouts have contributed to the growth.

Corporate, Eliminations and Other

Expected Growth: 4.0%

Corporate: Cost savings initiatives and strategic investments drive growth. Eliminations: Intersegment sales elimination and optimization of logistics. Other: Growth in renewable energy and carbon capture projects, and increased demand for specialty products.

Logistics

Expected Growth: 4.83%

Par Pacific Holdings, Inc.'s Logistics segment growth of 4.83% is driven by increasing demand for refined products, strategic acquisitions, and expansion of its terminaling and transportation services. Additionally, the company's focus on optimizing its logistics network, improving operational efficiencies, and investing in digitalization initiatives have contributed to the segment's growth.

7. Detailed Products

Refined Products

Par Pacific Holdings, Inc. refines and markets petroleum products, including gasoline, diesel fuel, jet fuel, and other specialty products.

Crude Oil

The company purchases and sells crude oil, which is used as a feedstock for refining and marketing of petroleum products.

LPG and Other Refined Products

Par Pacific Holdings, Inc. also markets and sells liquefied petroleum gas (LPG) and other refined products, such as asphalt and sulfur.

Renewable Fuels

The company produces and markets renewable fuels, including biodiesel and ethanol, which are blended with petroleum products to create cleaner-burning fuels.

Marine Fuels

Par Pacific Holdings, Inc. supplies marine fuels, including bunker fuel and marine diesel, to the shipping and maritime industries.

Lubricants and Petrochemicals

The company markets and sells lubricants and petrochemicals, which are used in a variety of industrial and commercial applications.

8. Par Pacific Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Par Pacific Holdings, Inc. operates in the refining and marketing of petroleum products, which has a moderate threat of substitutes. The company's products are largely commoditized, and customers may switch to alternative energy sources or competitors' products if prices are more attractive.

Bargaining Power Of Customers

Par Pacific Holdings, Inc. has a diverse customer base, including commercial and retail customers. The company's customers do not have significant bargaining power, as they are not concentrated and do not have the ability to influence prices.

Bargaining Power Of Suppliers

Par Pacific Holdings, Inc. relies on a few large suppliers for its crude oil and other raw materials. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The refining and marketing of petroleum products is a capital-intensive industry with significant barriers to entry. New entrants would need to invest heavily in infrastructure and technology, making it difficult for them to enter the market.

Intensity Of Rivalry

The refining and marketing of petroleum products is a highly competitive industry, with several established players competing for market share. Par Pacific Holdings, Inc. faces intense competition from larger and more established companies, which may exert downward pressure on prices and margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.71%
Debt Cost 3.95%
Equity Weight 50.29%
Equity Cost 13.82%
WACC 8.91%
Leverage 98.84%

11. Quality Control: Par Pacific Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Star

A-Score: 7.3/10

Value: 8.4

Growth: 5.8

Quality: 5.2

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

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CrossAmerica Partners

A-Score: 6.3/10

Value: 7.2

Growth: 4.7

Quality: 3.5

Yield: 10.0

Momentum: 3.5

Volatility: 9.0

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World Kinect

A-Score: 5.7/10

Value: 9.6

Growth: 4.7

Quality: 3.7

Yield: 5.0

Momentum: 3.0

Volatility: 8.0

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Delek US Holdings

A-Score: 5.3/10

Value: 8.0

Growth: 2.0

Quality: 3.2

Yield: 6.0

Momentum: 9.5

Volatility: 3.0

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Par Pacific

A-Score: 4.4/10

Value: 5.8

Growth: 5.4

Quality: 2.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Aemetis

A-Score: 3.4/10

Value: 9.6

Growth: 1.7

Quality: 5.2

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.09$

Current Price

44.09$

Potential

-0.00%

Expected Cash-Flows