PARR Q2 Earnings Beat Estimates on Refining Margin Strength

Par Pacific Holdings, Inc. PARR reported second-quarter 2026 adjusted earnings of $10.10 per share, surging 555.8% from $1.54 a year ago. The figure beat the Zacks Consensus Estimate of $8.20 by 23.2%.

Quarterly revenues jumped 56.8% year over year to $2.97 billion and topped the consensus estimate of $2.48 billion by 19.9%.

The strong quarterly results were driven by strong refining economics and commercial execution as the refining adjusted gross margin reached $680.4 million despite total throughput declining 2.8% to 181.4 thousand barrels per day (Mbpd).

Par Pacific Holdings, Inc. Price, Consensus and EPS Surprise

Par Pacific Holdings, Inc. price-consensus-eps-surprise-chart | Par Pacific Holdings, Inc. Quote

PARR's Refining Margins Power the Quarter

The Refining segment generated operating income of $629.9 million, up sharply from $81.3 million in the prior-year quarter. Segment adjusted EBITDA rose to $552 million from $108.4 million, underscoring the stronger margin environment across the refining system.

The adjusted gross margin per throughput barrel climbed to $41.22 from $13.65. The combined market index increased to $32.94 per barrel from $13.76, while production costs grew to $7.71 per barrel from $7.20.

Par Pacific's Hawaii Economics Strengthen

The Hawaii Index averaged $46.06 per barrel compared with $8.57 a year earlier. Hawaii throughput declined to 73.2 Mbpd from 88.1 Mbpd, but the refinery's adjusted gross margin expanded to $57 per barrel from $10.18.

The quarterly margin included a favorable net price lag impact of $76.5 million, or $11.49 per barrel, as lower June product prices benefited volumes sold using prior-period pricing. Production costs increased to $6.43 per barrel from $4.18. Management said that the Hawaii turnaround was substantially complete, with most processing units online.

PARR's Other Refineries Post Broad Gains

Montana throughput increased to 52.7 Mbpd from 44.2 Mbpd. Its adjusted gross margin rose to $37.22 per barrel from $22.30, while production costs fell to $10.16 per barrel from $14.18.

Washington throughput was 41.2 Mbpd compared with 40.8 Mbpd, and adjusted gross margin advanced to $20.31 per barrel from $11.47. Wyoming throughput increased to 14.3 Mbpd from 13.5 Mbpd, while the adjusted gross margin reached $34.03 per barrel versus $18.57. Wyoming's results included a negative first-in, first-out (FIFO) inventory impact of $3.2 million, or $2.48 per barrel.

Par Pacific Retail Softens as Logistics Hold

The Retail segment reported operating income of $14.6 million, down from $20.8 million. Adjusted EBITDA declined to $17.3 million from $23.3 million, while fuel sales volume was nearly flat at 30.7 million gallons versus 30.8 million gallons.

Same-store fuel volumes decreased 0.8%, though inside sales revenues improved 1.0%. Logistics operating income slipped to $22.5 million from $23.7 million. The adjusted gross margin increased to $35.1 million from $34.4 million, while adjusted EBITDA remained steady at $29.8 million.

PARR Profitability Expands on Refining Upside

Consolidated adjusted EBITDA was $571.3 million compared with $137.8 million in the year-ago quarter. GAAP net income attributable to Par Pacific stockholders rose to $462.1 million, or $9.35 per diluted share, from $59.5 million, or $1.17 per share.

Operating income increased to $634.6 million from $96.8 million. Interest expenses and financing costs declined to $14.3 million from $22.1 million, though the quarter included $11.5 million in debt extinguishment and commitment costs, and $144 million in income tax expenses.

Par Pacific Ends Q2 With $1.4B in Liquidity

Net cash provided by operations totaled $282.6 million, including working capital outflows of $312.2 million and deferred turnaround spending of $19.5 million. Excluding those items, the operating cash flow was $614.3 million. Investing activities used $39.7 million, while financing activities used $223 million.

Par Pacific ended June with $185 million in cash, gross term debt of $505.7 million, and net term debt of $320.7 million. Total liquidity stood at $1.4 billion. The company also completed a $500-million senior unsecured notes offering and reduced term debt by more than $130 million.

Zacks Rank & Other Stocks to Consider

Par Pacific currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the energy sector are PBF Energy PBF and Valero Energy VLO, each sporting a Zacks Rank #1 (Strong Buy), and Kinder Morgan Inc. KMI, carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

PBF Energy operates one of the most sophisticated refining systems in the United States, with a weighted average Nelson Complexity Index of 12.8. This high level of complexity enables the company to process a broad range of crude oil feedstocks while maximizing the production of higher-value refined products and intermediates.

PBF Energy reported adjusted earnings of $6.22 per share for the second quarter of 2026, compared with an adjusted loss of $1.03 per share in the prior-year quarter. Earnings exceeded the Zacks Consensus Estimate of $4.05 by 53.6%, driven by favorable crack spreads, higher refinery throughput and the successful restart of the Martinez refinery.

Valero Energy is among the largest independent refiners, operating 14 refineries with a combined throughput capacity of approximately 3 million barrels per day. Its refineries have a combined Nelson Complexity Index of 11.5, providing the flexibility to process diverse feedstocks, optimize product yields and capitalize on changing market conditions by producing higher-value refined products.

Valero Energy posted adjusted earnings of $12.54 per share for the second quarter of 2026, a sharp increase from $2.28 per share in the year-ago period. The company exceeded the Zacks Consensus Estimate of $9.87 by 27.1%, supported by stronger refining margins and significantly improved profitability in its renewable diesel and ethanol businesses.

Kinder Morgan owns one of the largest natural gas infrastructure systems in North America, comprising approximately 58,600 miles of transmission pipelines, 6,800 miles of gathering pipelines and 1,300 miles of natural gas liquids pipelines. The company transports nearly 40% of U.S. natural gas production and operates more than 700 billion cubic feet of storage capacity, accounting for roughly 15% of the nation's total natural gas storage.

Kinder Morgan reported second-quarter 2026 adjusted earnings of 37 cents per share, surpassing the Zacks Consensus Estimate of 31 cents by 19.4%. Earnings increased 32.1% year over year from 28 cents per share, reflecting broad-based business strength, particularly from higher natural gas transportation and gathering volumes.

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