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Highlights

  • Par Pacific’s Q2FY24 revenue increased by 13.09%, driven by retail and logistics segments
  • The company’s net income fell 37.89% due to increased operating and interest expenses
  • Its revenue has increased at a CAGR of 19.27% over the past five years
  • The company forecasts FY24 revenue between USD 1.165 billion and USD 1.20 billion

Par Pacific Holdings, Inc. (NYSE:PARR) is an energy company. It provides both conventional and renewable fuels to the western United States. It has a market capitalization of USD 1.21bn.

In Q2FY24, the company saw a revenue increase of 13.09% compared to the previous corresponding period, largely driven by steady performance in its retail and logistics segments alongside consistent refining operations. Despite this revenue growth, net income fell by approximately 37.89% due to higher operating and interest expenses, although increased revenue partially offset these impacts.

Par Pacific Holdings has demonstrated growth in recent years. Over the past five years, the company's revenue has experienced a compound annual growth rate (CAGR) of 19.27%, rising from USD 5,401.5 million in 2019 to USD 8,232 million in 2023. Concurrently, the gross profit saw an impressive recovery and expansion, with a five-year CAGR of 39.47% ( it rose from USD 260.2 million in 2019 to USD 908.3 million in 2023).

Recent Business Update

On June 5, 2024, the company announced a new crude-only agreement with Citigroup Energy, where Citi will supply crude oil to its subsidiary, Par Hawaii Refining, LLC, for the Kapolei refinery.

Company Outlook

For the full year ending December 31, 2024, the company expects revenue between USD 1.165 billion and USD 1.20 billion, representing a 7% to 10% increase. Net income is expected to range from USD 55.4 million to USD 62.4 million, or USD 0.57 to USD 0.64 per diluted share, based on about 98 million fully diluted shares.

Adjusted EBITDA is forecasted to be between USD 199.0 million and USD 209.0 million, with adjusted earnings per diluted share projected between USD 1.53 and USD 1.61. For Q3 2024, the company anticipates revenue of USD 290.0 million to USD 303.0 million, net income of USD 10.7 million to USD 13.2 million, and adjusted EBITDA of USD 47.5 million to USD 51.0 million.

Top 10 Shareholders

The top 10 shareholders collectively hold approximately 47.22% of the company's shares, indicating a concentrated ownership structure. BlackRock Institutional Trust Company, N.A., is the largest shareholder, owning about 13.33% of the company. The Vanguard Group, Inc. follows, with approximately 9.16%.

Stock Performance

The stock has experienced a correction of 11.75% over the past three months and 33.49% in the last nine months. Currently, it is approaching the lower end of its 52-week range, which spans from a high of USD 40.70 to a low of USD 21.31.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 30, 2024. The reference data in this report has been partly sourced from EODHD/Others.