Par Pacific Holdings Inc

Valero Energy's refining profitability is being supported by tight global refined-product markets, with as much as 5 million barrels of global refining capacity offline due to Middle East disruptions and attacks on Russian refining infrastructure, according to the company's latest earnings call. Valero's coastal refinery network, concentrated on the Gulf Coast, can process a wide range of crude qualities and shift product yields between light products and distillates, letting it capitalize on elevated refined-product prices, with U.S. average diesel prices recently reaching a record high. Low global light-product inventories are expected to support refining fundamentals, as inventory normalization could extend well into 2027. Other refining players positioned to benefit include Par Pacific Holdings, which operates refining capacity of 219,000 barrels per day plus 13 million barrels of storage, and PBF Energy, which runs six refineries with a combined throughput capacity of 1 million barrels per day. Valero shares have jumped 157.7% over the past year versus a 122.5% gain for its industry composite, and the Zacks Consensus Estimate for Valero's 2026 earnings has been revised upward over the past seven days; Valero, Par Pacific and PBF each carry a Zacks Rank #1 (Strong Buy).

Par Pacific announced post-market Tuesday that it will exit its investment in Laramie Energy, which has agreed to sell its oil and gas assets to an unnamed buyer for $485 million in cash. Par Pacific, which owns a 46% interest in Laramie, expects to receive $146 million from the transaction, including $27.5 million payable on the fifth anniversary of the closing date, and is also eligible for up to $30 million in earn-out payments from a potential $65 million in price-contingent earn-outs over the first through fifth anniversaries. The company continues to own and operate 219,000 barrels per day of combined refining capacity across four locations in Hawaii, the Pacific Northwest, and the Rockies, along with an energy infrastructure network including 13 million barrels of storage and marine, rail, rack, and pipeline assets.

Par Pacific Holdings reported strong second-quarter results and expects tight global product inventories to support refining fundamentals in the third quarter. Management said the company's combined refining index totaled $31.34 per barrel in July, indicating a strong refining environment at the start of the third quarter. The company cited lower product exports from the Persian Gulf and Russia, conservative refinery operations by Asian refiners, and limited growth in Chinese refined-product exports as supportive factors. Par Pacific operates an integrated downstream network with 219,000 barrels per day of refining capacity across Hawaii, Montana, Washington and Wyoming. Its shares have surged 103.8% over the past six months, and the stock currently carries a Zacks Rank #1 (Strong Buy).

Par Pacific Holdings' Hawaii Renewables facility produced on-specification renewable diesel in April 2026 and completed its first commercial sales, marking a key operational milestone for the company's long-term growth. The facility is designed to produce 61 million gallons of renewable diesel, sustainable aviation fuel, and renewable naphtha annually, with flexibility to produce up to 60% SAF or 90% renewable diesel. Production ramped during the second quarter, with June throughput reaching approximately 3,000 barrels per day before a plant-wide turnaround. The joint venture with Mitsubishi Corporation and ENEOS Corporation contributed $100 million for a 36.5% interest, providing feedstock-sourcing and customer-access capabilities across Asia-Pacific and California. Par Pacific has not yet provided mid-cycle earnings guidance for Renewables as commissioning and ramp-up continue.

Par Pacific is scheduled to announce its second-quarter 2026 earnings results on Tuesday. The consensus EPS estimate stands at $8.15, representing a 429.2% year-over-year increase, while the consensus revenue estimate is $2.4 billion, up 27.0% from the prior year. Over the last two years, the company has beaten EPS estimates 63% of the time and revenue estimates 100% of the time. In the past three months, EPS estimates have seen four upward revisions and none downward, while revenue estimates have received three upward revisions and two downward.

U.S. refiner margins shattered records this week as low stockpiles and supply disruptions from escalating U.S.-Iran attacks threaten fuel shortfalls. The 3-2-1 crack spread, a key profitability benchmark, settled at a record $69.66 per barrel on Nymex Thursday. Diesel has been the main driver, with disruptions to Middle Eastern exports and a temporary Russian export ban tightening an already-strained market, while gasoline supplies are also a growing concern as refiners shift yields toward diesel and jet fuel. U.S. diesel inventories are down nearly 11 million barrels and gasoline inventories down more than 42 million barrels from pre-war levels, and both are well below their five-year seasonal averages. National average retail gasoline prices reached $3.99 per gallon on Saturday, up nearly $0.84 from a year ago, and analysts warn that depleted inventories and damaged Middle East refineries will keep prices elevated, benefiting refiners whose shares have surged this year.

Seeking Alpha's quantitative model has identified the highest- and lowest-rated large-cap energy stocks ahead of the second-quarter earnings season. The five highest-rated stocks, all with Strong Buy ratings, are National Energy Services Reunited with a quant score of 4.96, PBF Energy at 4.94, Par Pacific at 4.92, Neste Oyj at 4.90, and Frontline at 4.87. The five lowest-rated stocks are Energy Fuels with a Strong Sell rating and a score of 1.21, Centrus Energy at 1.27, Comstock Resources at 1.42, Peabody Energy at 1.69, and Technip Energies at 1.91. The analysis indicates top-rated names are driven by growth, momentum, and earnings revisions, while low-rated names show sharp deterioration in revisions and momentum, particularly in construction-linked and clean-energy segments. The energy sector is expected to post the strongest earnings growth of all eleven S&P 500 sectors in Q2 2026, with year-over-year earnings rising 122.9%, according to FactSet, as WTI crude averaged $92.55 per barrel, about 45% higher than a year earlier.

Valero Energy is well-positioned to benefit from elevated refining margins and strong fuel demand, supported by constrained global refining capacity and tightening product flows. The 3-2-1 crack spread, a key indicator of refining profitability, has risen significantly since the start of the Middle East conflict and remains elevated. Management highlighted a sharp increase in export demand, especially for jet fuel and distillates, which has contributed to declining U.S. product inventories. Valero's strategically located Gulf Coast refining system and extensive logistics network position it to capture increased export volumes while capitalizing on resilient domestic demand. Low product inventories in key markets are expected to support refining fundamentals and keep margins steady.

Amid renewed U.S.-Iran hostilities and heightened Ukraine-Russia tensions, market volatility is making stock selection difficult for individual investors. A Zacks Investment Research screen identifies five broker-favored stocks with strong earnings estimate revisions and attractive valuations: Par Pacific, Bassett Furniture Industries, ChargePoint Holdings, Cleveland-Cliffs, and Alaska Air Group. Par Pacific benefits from diverse crude sourcing and a favorable refining environment, while Bassett Furniture is enhancing its business model despite a weak housing market. ChargePoint is capitalizing on EV adoption and improved financial flexibility, Cleveland-Cliffs gains from acquisitions and higher steel prices, and Alaska Air sees resilient air travel demand and fleet upgrades.

Zacks Equity Research has named Victoria's Secret as the Bull of the Day and BellRing Brands as the Bear of the Day. Victoria's Secret, carrying a Zacks Rank of 1, has posted four straight quarters of positive comparable sales, expanded margins, and raised guidance, with shares up more than 40% year to date. The company recently changed its ticker to VSXY and lifted its full-year fiscal 2026 outlook to net sales of $7.03 to $7.13 billion and adjusted operating income of $550 to $580 million. BellRing Brands, rated a Zacks Rank of 5, missed its fiscal second-quarter 2026 earnings estimate by 55%, saw adjusted gross margin plunge to 22.7% from 34.5%, and slashed its full-year adjusted EBITDA guidance by roughly $115 million at the midpoint. The stock is down about 50% year to date and roughly 75% over the past year. The report also highlights Cenovus Energy and Par Pacific as bargain top-ranked energy stocks, both sporting a Zacks Rank of 1 and trading at EV/EBITDA multiples below their industry averages.

Zacks Investment Research has identified Cenovus Energy and Par Pacific as two bargain energy stocks that may not stay cheap for long. The oil-energy sector has rallied 17.9% year to date, outperforming the S&P 500's 10.4% gain, with geopolitical tensions in the Middle East continuing to support oil prices. Cenovus Energy, an integrated player with operations in Canadian oil sands and North American refining, trades at a trailing 12-month EV/EBITDA of 6.28x, below the industry average of 6.45x. Par Pacific, a refiner benefiting from diverse crude sources including cheaper Canadian heavy oil, trades at a trailing 12-month EV/EBITDA of 4.84x, compared to the industry average of 5.50x. Both stocks currently carry a Zacks Rank of 1, indicating a Strong Buy.

Par Pacific reported a net income of approximately $369.4 million for fiscal year 2025, while Delek US posted a net loss of roughly $22.8 million. Par Pacific's revenue reached close to $7.5 billion, a decrease of about 6.4% from the prior year, and Delek US saw revenue of nearly $10.7 billion, down roughly 9.5%. Par Pacific's debt-to-equity ratio stood at roughly 0.8x and free cash flow was nearly $296.5 million, compared with Delek US's debt-to-equity ratio of 11.7x and free cash flow of approximately $22.0 million. Par Pacific also trades at a lower forward price-to-earnings ratio of 4.2x versus Delek US's 9.2x, while Delek US has a lower price-to-sales ratio of 0.3x compared to Par Pacific's 0.4x. Both companies face customer concentration risk, with one customer accounting for approximately 12% of consolidated revenue in each case.

West Texas Intermediate oil is trading below $70 per barrel, down from over $100 in May, creating a favorable environment for refiners. Phillips 66 and Par Pacific have surged 37.1% and 86.9% over the past year, respectively. Phillips 66 benefits from lower crude costs and a diversified business spanning midstream and chemicals, which provides resilience against commodity volatility. Par Pacific gains from sourcing crude from multiple origins, including cheaper Canadian heavy oil, giving it a cost advantage in producing high-value products.

Mizuho upgraded Par Pacific Holdings from Neutral to Outperform and raised its price target from $58 to $79, citing strong first-quarter 2026 results and a favorable distillate-driven margin backdrop. The company reported net income of $54.5 million, or $1.10 per diluted share, a sharp turnaround from a net loss of $30.4 million in the same quarter last year. Adjusted EBITDA surged to $91.5 million from $10.1 million, while refining throughput in Hawaii reached a record 89.8 thousand barrels per day. Par Pacific also began commercial operations at its Hawaii renewable fuels facility in April and repurchased $28 million of its common stock during the quarter.