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Par Pacific Holdings (PARR)
NYSE:PARR
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Par Pacific Holdings
(NYSE:PARR)
Rating:63Neutral
Price Target:
$17.50
▼( -20.09% Downside)
Positive Factors
Earnings Outlook
Industry outages in the West Coast have supported margins and set up PARR for a better earnings outlook.
Share Buyback Confidence
PARR repurchased 5% of shares, signaling confidence in its current liquidity position and share price.
Negative Factors
Earnings Decline
A steep decline in Rockies margins is contributing to a significant earnings decline.
Operational Challenges
The operational hiccup at Wyoming will reduce rates and likely add to costs in the near term.
Par Pacific Holdings (PARR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)3.0
Beta (1Y)0.69
Revenue Growth-9.25%
EPS Growth-113.66%
CountryUS
Employees1,787
SectorEnergy
Sector Strength46
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)-0.94
Shares Outstanding51,578,860
10 Day Avg. Volume1,520,976
30 Day Avg. Volume1,393,013
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)0.83
Price to Sales (P/S)0.00
P/FCF Ratio68.98
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit5.06
Enterprise Value/Ebitda1.43
Forecast
1Y Price Target
$20.96Price Target Upside-4.29% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Par Pacific Holdings Business Overview & Revenue Model
Company DescriptionPar Pacific Holdings, Inc. is a diversified energy company primarily engaged in the refining, distribution, and retail marketing of petroleum products. Headquartered in Houston, Texas, Par Pacific operates through three main segments: Refining, Retail, and Logistics. The company owns and manages refineries, a network of retail gas stations, and logistics assets including pipelines and terminals, primarily in Hawaii, Washington, and Wyoming. Par Pacific focuses on optimizing its operations to efficiently supply fuel products to local markets, leveraging its strategic assets and market positions.
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 earnings and declining margins. While the balance sheet is robust with no debt and positive cash flows, recent profitability and revenue growth declines are concerning.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 |
| 176.16M | 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 |
| 1.57B | 1.02B | 870.63M | 960.98M | 1.08B | Net Debt |
| 1.38B | 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
Positive
21.90
Price Trends
15.47
Positive
15.74
Positive
17.07
Positive
Market Momentum
1.83
Negative
79.95
Negative
86.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PARR, the sentiment is Positive. The current price of 21.9 is above the 20-day moving average (MA) of 17.79, above the 50-day MA of 15.47, and above the 200-day MA of 17.07, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 79.95 is Negative, neither overbought nor oversold. The STOCH value of 86.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PARR.
Par Pacific Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.43B | 9.92 | 26.11% | 6.37% | -3.59% | 22.77% | |
63 Neutral | $1.13B | 3.02 | -4.95% | ― | -9.25% | -113.66% | |
57 Neutral | $7.06B | 3.07 | -3.48% | 5.79% | 0.59% | -50.58% | |
55 Neutral | $2.35B | ― | -18.01% | 5.17% | -16.30% | -160.78% | |
54 Neutral | $859.48M | 28.46 | 666.62% | 9.31% | -6.57% | -50.55% | |
51 Neutral | $1.18B | ― | -151.69% | 5.23% | -29.23% | -931.43% | |
46 Neutral | $2.36B | 268.82 | -27.14% | 8.51% | -16.21% | -130.18% |
* Energy Sector Average
Performance Comparison
PARR
Par Pacific Holdings
21.90
-5.28
-19.43%
CVI
CVR Energy
23.50
-5.59
-19.22%
DK
Delek US Holdings
19.42
-6.19
-24.17%
PBF
PBF Energy
20.29
-27.00
-57.09%
SUN
Sunoco
55.19
7.99
16.93%
CAPL
Crossamerica Partners
22.56
4.55
25.26%
Par Pacific Holdings Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 46.59%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive market developments and challenges. While there were significant achievements in market recovery, Retail performance, and strategic initiatives, there were notable financial setbacks and operational challenges. The sentiment is balanced, with both progress and hurdles acknowledged.Q1-2025 Updates
Positive Updates
Improvement in Market Conditions
The combined index is up by $6 per barrel, indicating improving market conditions. The West Coast and Hawaii markets are showing positive signs, with reduced supply tightening the Rocky Mountain region.
Retail Business Performance
Quarterly same-store fuel and in-store revenue increased by 0.5% and 1.8% compared to the first quarter of 2024. The Retail business continues to deliver solid results with total adjusted EBITDA exceeding $80 million for the first time.
Strategic Share Repurchases
Shares outstanding were reduced by 5% compared to the end of 2024, reflecting progress on strategic objectives and capital allocation.
Progress on Montana and Wyoming Operations
Montana's turnaround is on time and on budget, with mechanical completion nearing. Wyoming operations resumed a month earlier than planned after an outage.
SAF Project Progress in Hawaii
SAF project construction in Hawaii is progressing as planned, with major equipment set and on-site work proceeding for completion.
Excess Capital Position
Ending liquidity stands at $525 million, with a strong balance sheet and improved free cash flow outlook.
Negative Updates
First Quarter Financial Losses
First quarter adjusted EBITDA was $10 million, and the adjusted net loss was $0.94 per share. The Refining segment reported an adjusted EBITDA loss of $14 million.
Refinery Outage Costs
Wyoming refinery outage elevated OpEx by $6 million in the first quarter, with an additional $4 million expected in the second quarter.
Challenges in Montana Operations
Montana's first quarter throughput was 52,000 barrels per day with higher production costs of $10.56 per barrel due to the FCC and alky turnaround.
Lower Refining Segment Capture Rates
Washington's index averaged $4.15 per barrel with a capture rate of 50%, impacted by increased refinery maintenance and below-average inventory levels.
Company Guidance
During Par Pacific's First Quarter 2025 Earnings Conference Call, the company provided guidance highlighting several key metrics. The first quarter adjusted EBITDA was reported at $10 million, with an adjusted net loss of $0.94 per share. Par Pacific noted a strong outlook for its Hawaii Refining business and a combined index increase of $6 per barrel so far in the quarter. The company's retail segment showed growth, with same-store fuel and in-store revenue rising by 0.5% and 1.8% respectively, compared to the first quarter of 2024. For the refining and logistics operations, first quarter combined throughput was 176,000 barrels per day, with expectations for the second quarter system-wide throughput ranging between 178,000 and 189,000 barrels per day. Additionally, Par Pacific made progress on strategic objectives, reducing shares outstanding by 5% compared to the end of 2024, and maintaining a strong liquidity position with $525 million. The company is confident in achieving cost reduction targets and remains focused on increasing its per-share earnings power while managing the business through various environments.Par Pacific Holdings Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Par Pacific Holdings Approves Key Proposals at Annual Meeting
Positive
May 6, 2025
On May 1, 2025, Par Pacific Holdings held its Annual Meeting of Stockholders, where key proposals were voted on, including the election of ten board members, the ratification of Deloitte & Touche LLP as the independent auditor for 2025, and an amendment to increase shares in the Employee Stock Purchase Plan by 500,000. The proposals were largely approved, indicating strong shareholder support for the company’s governance and strategic plans, which could enhance its operational flexibility and stakeholder confidence.
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.