Is Par Pacific Holdings Positioned for a Strong Finish to 2025?

Par Pacific Holdings, Inc. PARR is a Houston-based refining player with a combined refining capacity of 219,000 barrels per day and operations spread across Hawaii and the Pacific Northwest. The company also operates 119 retail locations, along with a logistics business segment. Since the company is primarily involved in the refining business, it is worthwhile to assess whether the current refining environment is beneficial for Par Pacific.

Refining players have seen a significant boost in earnings in 2025 compared with the previous year, supported by strong refining margins throughout the year. In the United States, refining margins have significantly risen in 2025, driven by tightened supply due to refinery maintenance and outages, as well as growing demand for distillate fuels. Par Pacific also reported a significant increase in third-quarter 2025 refining earnings to $340.8 million, up from $19 million in the corresponding period of 2024.

Management has stated that the market outlook appears positive for the fourth quarter as well. This implies that the company is expected to benefit from a supportive macro refining environment in Q4, likely due to tightening supply and demand dynamics and geopolitical tensions and sanctions. The company has also highlighted that the strong Singapore margin environment, partially driven by geopolitical disruptions restricting crude flows into Asian countries and higher seasonal distillate demand, is beneficial for its distillate-oriented refineries.

Hence, the current refining environment appears favorable for Par Pacific Holdings, and the company is well-positioned to continue generating strong earnings in the near term.

PSX & VLO Are Two Other Leading Refiners

Phillips 66 PSX and Valero Energy Corporation VLO are two leading refining players expected to benefit from strong refining margins. Both PSX and VLO sport a Zacks Rank #1 (Strong Buy).

Phillips 66 operates 11 refineries across the United States and Europe. The company recorded a 99% crude utilization rate in the third quarter, the highest since 2018. Its refining results benefit from strong margins seen this year. Further, its involvement in other segments, including midstream, renewables, and chemicals, provides earnings stability.

Valero Energy boasts an extensive refinery network, with 15 refineries and a combined throughput capacity of 3.2 million barrels per day. VLO’s diversified refinery base enables it to tap into different markets and cater to a diverse range of customer needs.

PARR’s Price Performance, Valuation & Estimates

Shares of PARR have surged 116.1% over the past year compared with the 15.3% improvement of the composite stocks belonging to the industry.

From a valuation standpoint, PARR trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 4.45X. This is above the broader industry average of 4.36X.

The Zacks Consensus Estimate for PARR’s 2025 earnings has seen downward revisions over the past 30 days.

Par Pacific currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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