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Par Pacific Holdings (PARR)
NYSE:PARR
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Par Pacific Holdings
(NYSE:PARR)
60Neutral
Positive Factors
Liquidity Management
PARR has sufficient liquidity to get through the weaker environment as it targets minimum liquidity of $250MM - $300MM.
Market Exposure
Despite the weakness in the refining sub-sector, Par Pacific Holdings has attractive exposure to niche markets in PADDs 4 and 5.
Operational Performance
PARR delivered solid operational performance in the quarter, with record refining throughput, record logistics EBITDA and continued improvement in Retail.
Negative Factors
Earnings Decline
A steep decline in Rockies margins is contributing to a significant earnings decline.
Financial Performance
Forecast margins are lower than expected, resulting in significantly lower EBITDA generation.
Operational Challenges
The operational incident in Wyoming will lower throughput volumes through May.
Par Pacific Holdings (PARR) vs. S&P 500 (SPY)
Market Cap
$779.39M
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)3.0
Beta (1Y)0.69
Revenue Growth-3.13%
EPS Growth-105.02%
CountryUS
Employees1,787
SectorEnergy
Sector Strength47
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)-0.62
Shares Outstanding54,350,925
10 Day Avg. Volume1,224,861
30 Day Avg. Volume1,528,333
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.18
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.34
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.96Price Target Upside31.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Par Pacific Holdings Business Overview & Revenue Model
Company DescriptionPar 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.
How the Company Makes MoneyPar Pacific Holdings generates revenue through its three main business segments: Refining, Retail, and Logistics. In the Refining segment, the company processes crude oil into various refined products such as gasoline, diesel, and jet fuel, which are sold to wholesale and commercial customers. The Retail segment operates a network of gas stations and convenience stores, selling fuel and convenience products directly to consumers. The Logistics segment supports these operations by managing pipelines, terminals, and storage facilities, enabling efficient transportation and distribution of oil and fuel products. Key revenue streams include the sale of refined products, retail fuel sales, and logistics services. Strategic partnerships with suppliers and customers, as well as the company's ability to adapt to market conditions, significantly contribute to its earnings.
Par Pacific Holdings Financial Statement Overview
Summary
Par Pacific Holdings faces financial challenges with negative net income and declining margins. Despite these issues, the company has a strong balance sheet with no debt and positive cash flows, offering financial flexibility. However, the decline in profitability and revenue growth are significant concerns that need addressing.Income Statement
The income statement shows volatility with a negative net income in the TTM period, contrasting with a profitable 2023. Gross profit margin has decreased significantly to 6.3% in TTM from 15.5% in 2023, indicating margin pressure. Revenue growth has been inconsistent, with a drop in TTM compared to 2023. Net profit margin turned negative at -0.4% in TTM, down from 8.9% in 2023, highlighting profitability challenges.55
Neutral
Balance Sheet
The balance sheet indicates strong equity at $1.19 billion with no debt in TTM, improving the debt-to-equity ratio to 0. The equity ratio stands robust at 100% due to a significantly negative liability value, which may require further investigation. ROE dropped substantially in TTM due to negative net income, showing a decline from 54.6% in 2023.70
Positive
Cash Flow
Cash flow analysis shows positive free cash flow in TTM at $77.2 million, albeit reduced from 2023. Operating cash flow is positive but has decreased, indicating reduced cash generation capability compared to 2023. The free cash flow to net income ratio is high due to negative net income, reflecting cash flow strength despite earnings pressure.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.97B | 8.23B | 7.32B | 4.71B | 3.12B | Gross Profit |
| 741.72M | 1.27B | 846.00M | 277.37M | 87.14M | EBIT |
| 47.63M | 680.01M | 437.90M | -7.62M | -318.00M | EBITDA |
| 175.37M | 805.59M | 542.22M | 80.56M | -271.81M | Net Income Common Stockholders |
| -33.32M | 728.64M | 364.19M | -81.30M | -409.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 191.92M | 279.11M | 490.93M | 112.22M | 68.31M | Total Assets |
| 3.83B | 3.86B | 3.28B | 2.57B | 2.13B | Total Debt |
| 458.84M | 1.02B | 870.63M | 960.98M | 1.08B | Net Debt |
| 266.92M | 739.54M | 379.70M | 848.76M | 1.01B | Total Liabilities |
| 2.64B | 2.53B | 2.64B | 2.30B | 1.89B | Stockholders Equity |
| 1.19B | 1.34B | 644.54M | 265.70M | 246.27M |
| Cash Flow | Free Cash Flow | |||
| -51.76M | 496.88M | 399.58M | -57.16M | -100.74M | Operating Cash Flow |
| 83.78M | 579.16M | 452.61M | -27.62M | -37.21M | Investing Cash Flow |
| -133.99M | -659.04M | -87.31M | 74.63M | -63.46M | Financing Cash Flow |
| -36.96M | -135.60M | 13.41M | -1.09M | 42.56M |
Par Pacific Holdings Technical Analysis
Neutral
14.40
Price Trends
13.90
Positive
15.31
Negative
17.50
Negative
Market Momentum
0.12
Negative
54.03
Neutral
73.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PARR, the sentiment is Neutral. The current price of 14.4 is above the 20-day moving average (MA) of 13.72, above the 50-day MA of 13.90, and below the 200-day MA of 17.50, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PARR.
Par Pacific Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.71B | 9.51 | 28.38% | 6.16% | -1.63% | 80.11% | |
60 Neutral | $779.39M | 3.02 | -2.64% | ― | -3.13% | -105.02% | |
56 Neutral | $6.99B | 3.72 | -4.39% | 5.96% | -0.24% | -48.44% | |
54 Neutral | $931.32M | 46.96 | 666.62% | 8.68% | -6.57% | -50.55% | |
51 Neutral | $1.93B | ― | -8.87% | 6.30% | -13.59% | -127.47% | |
49 Neutral | $853.13M | ― | -108.21% | 7.52% | -28.68% | -4373.94% | |
46 Neutral | $1.95B | 268.82 | -27.14% | 10.34% | -16.21% | -130.18% |
* Energy Sector Average
Performance Comparison
PARR
Par Pacific Holdings
14.40
-16.44
-53.31%
CVI
CVR Energy
20.20
-8.24
-28.97%
DK
Delek US Holdings
13.79
-11.78
-46.07%
PBF
PBF Energy
17.53
-32.60
-65.03%
SUN
Sunoco
57.94
5.52
10.53%
CAPL
Crossamerica Partners
24.47
3.73
17.98%
Par Pacific Holdings Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q4-2024)
| % Change Since: -6.68%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational performance in logistics and retail segments, successful share repurchase, and positive market conditions in certain regions. However, challenges included a significant incident at the Wyoming facility, fourth-quarter financial losses, and high production costs in the Wyoming segment.Q4-2024 Updates
Positive Updates
Record Logistics and Retail Adjusted EBITDA
The company achieved record logistics and retail adjusted EBITDA, highlighting strong operational performance despite a challenging refining market.
Retail Segment Growth
In-store gross margins grew 11% versus 2023, and fuel volumes expanded, driven by strong same-store sales results in the legacy portfolio.
Successful Share Repurchase
The company repurchased nearly five million shares or 9% of outstanding shares at attractive prices, demonstrating strong capital allocation.
Low-Cost, High-Return Projects
The company is executing several key projects, including the Montana FCC and Alky turnaround and the Hawaii SAF unit startup, aimed at driving enhanced earnings power.
Improvement in Washington and Montana Margins
The Washington index improved by approximately $7 per barrel compared to January, and the Montana index in February improved by over $10 per barrel compared to January.
Negative Updates
Wyoming Facility Incident
An operational incident at the Wyoming facility resulted in damage to the crude heater furnace, leading to a temporary shutdown and a planned ramp-up to full operations by Memorial Day.
Fourth-Quarter Financial Loss
Fourth-quarter adjusted EBITDA was $11 million, with an adjusted earnings loss of $43 million or $0.79 per share.
Refining Segment EBITDA Loss
The refining segment reported an adjusted EBITDA loss of $22 million in the fourth quarter.
High Production Costs in Wyoming
Wyoming's throughput was 14,000 barrels per day with high production costs of $11.49 per barrel due to scheduled routine maintenance.
Company Guidance
During Par Pacific Holdings, Inc.'s fourth-quarter earnings call for 2024, several key metrics were highlighted to provide guidance for the upcoming year. The company reported a 2024 adjusted EBITDA of $239 million and an adjusted net income, reflecting a strong operational performance with record refining throughput and improvements in logistics and retail segments. Hawaii's refining business unit was notably successful. The company faced an operational incident at its Wyoming facility, targeting a return to full operations by Memorial Day. Par Pacific plans to execute several key projects in 2025, including a turnaround at the Montana FCC and Alky units, the restart of Wyoming units, and the startup of Hawaii's SAF unit in the latter half of the year. The company achieved a 10% increase in 2024 adjusted EBITDA compared to 2023, with in-store gross margins growing by 11%. The refining segment reported a fourth-quarter adjusted EBITDA loss of $22 million, while Hawaii's throughput was strong at 83,000 barrels per day. The firm repurchased nearly five million shares, representing 9% of outstanding shares, and maintained total liquidity of $614 million. During the Q&A, guidance on share repurchase authorization and strategic objectives were discussed, emphasizing a dynamic approach to capital allocation.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.