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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' recent performance was driven by successful integration of the Billings refinery, robust share buybacks, and a strategic pivot to sustainable energy. The company's strong buy rating is attributed to its resilient moat, high entry barriers, and stable logistics/retail segments. Additionally, the recent share buyback program, which targets 11.5% of outstanding shares, amplifies upside potential. Furthermore, the company's Q4 2025 earnings release showed a net income of $77.7 million, or $1.53 per diluted share, and Adjusted EBITDA of $113.1 million for the fourth quarter.

1.c. Company Highlights

2. Par Pacific Holdings' 2025 Earnings: A Year of Meaningful Progress

Par Pacific Holdings reported an adjusted net income of $7.56 per share for the full-year 2025, with the fourth quarter earnings per share (EPS) coming in at $1.17, slightly below analyst estimates of $1.21. The company's full-year adjusted EBITDA was $634,000,000. The Refining segment generated $88,000,000 of adjusted EBITDA in the fourth quarter, down from $135,000,000 in the third quarter, largely due to a decrease in the combined refining index to $13.13 per barrel from $14.73 per barrel in the previous quarter. System-wide refining capture was 93% for the quarter and 94% for the full year.

Publication Date: Mar -08

📋 Highlights
  • 2025 Full-Year Adjusted EBITDA:: Achieved $634 million with adjusted net income of $7.56 per share.
  • Hawaii Refining Throughput:: Averaged 84,000 barrels/day, 4% above the prior three-year average.
  • 2026 Strategic Priorities:: Focus on Rocky Mountain mid-cycle earnings, Hawaii turnaround, renewable fuels optimization, and disciplined capital allocation.
  • Q4 Refining EBITDA Decline:: Dropped to $88 million from $135 million in Q3 due to a $1.60/barrel decline in the refining index.

Operational Highlights

The company achieved a record annual refining throughput, with Hawaii throughput averaging 84,000 barrels per day, approximately 4% above the prior three-year average. The logistics organization progressed key initiatives throughout the year and generated record segment profits. According to Richard Creamer, EVP of Refining and Logistics, the refining and logistics team delivered another record throughput year, led by Hawaii's increased production rates.

Balance Sheet Strength and Capital Allocation

Par Pacific Holdings ended the year with approximately $915,000,000 in liquidity and 49.7 million shares outstanding, improving liquidity by 49% and reducing share count by 10%. The company's stronger balance sheet provides flexibility to invest through cycles, execute high-return internal projects, and opportunistically repurchase shares. Will Monteleone mentioned that the company is looking at a mix of internal growth opportunities, external opportunities, and potentially repurchasing shares.

Valuation and Outlook

With a P/E Ratio of 6.73 and an EV/EBITDA of 5.23, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 4.5%. The company's objective remains to increase mid-cycle earnings power and grow free cash flow per share through disciplined execution. The Free Cash Flow Yield is 13.15%, indicating a potentially attractive return for investors. The ROE is 28.59%, suggesting efficient use of shareholder equity.

3. NewsRoom

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Par Petroleum (PARR) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Mar -07

Source: zacks.com

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Par Pacific Holdings, Inc. (PARR) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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Par Petroleum (PARR) Q4 Earnings Lag Estimates

Feb -25

Source: zacks.com

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Par Pacific Reports Fourth Quarter and 2025 Results

Feb -24

Source: globenewswire.com

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Counterpoint Mutual Funds LLC Purchases Shares of 92,765 Par Pacific Holdings, Inc. $PARR

Feb -24

Source: defenseworld.net

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Key Factors to Watch Ahead of Par Pacific's Q4 Earnings Release

Feb -18

Source: zacks.com

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Par Pacific Holdings: A Hidden Infrastructure Story

Feb -18

Source: seekingalpha.com

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Par Pacific (PARR) Expected to Announce Quarterly Earnings on Tuesday

Feb -17

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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A-Score: 7.2/10

Value: 8.5

Growth: 5.7

Quality: 5.3

Yield: 10.0

Momentum: 4.5

Volatility: 9.0

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Par Pacific

A-Score: 5.7/10

Value: 8.8

Growth: 5.4

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

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A-Score: 5.6/10

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Growth: 2.0

Quality: 4.3

Yield: 6.0

Momentum: 10.0

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A-Score: 2.7/10

Value: 8.7

Growth: 1.6

Quality: 4.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

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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

48.03$

Current Price

48.03$

Potential

-0.00%

Expected Cash-Flows