Par Pacific rides record refining margins, Hawaii renewables, Laramie exit
Record refining margins on tight fuel supplies U.S. refiner margins hit record highs as low fuel stockpiles and Middle East and Russia supply disruptions squeeze diesel and gasoline. Par Pacific sells refined fuel, so wider margins mean more profit per barrel. Management said its July refining index was a strong $31.34 per barrel, supporting the third quarter.
This is the core force behind PARR's earnings power and stock move.
Hawaii Renewables starts selling renewable diesel Par Pacific's Hawaii Renewables plant made on-spec renewable diesel and completed its first commercial sales, a real milestone toward new revenue. The plant can make up to 61 million gallons a year of renewable diesel, jet fuel and naphtha, with partners Mitsubishi and ENEOS providing feedstock and customers.
New business line adds a growth story beyond refining margins.
Exiting Laramie Energy for $146 million Par Pacific will sell its 46% stake in Laramie Energy as Laramie sells its oil and gas assets for $485 million. Par Pacific expects about $146 million, plus possible earn-outs. That cash can pay down debt or fund refining and renewables, and it simplifies the company into a pure fuel maker.
A concrete capital move that strengthens the balance sheet and focus.
Strong Q2 results and upbeat analyst views Par Pacific reported strong second-quarter results and carries a Strong Buy rating, with consensus EPS of $8.15, up about 429% from a year ago. Estimates were revised upward before the report. Analysts rank it among the top energy names on growth, momentum and earnings revisions.
Confirms the margin boom is showing up in actual profits and analyst expectations.