Par Pacific Holdings, Inc.

What they do

Par Pacific operates refineries in Hawaii, Montana, Washington, and Wyoming, producing conventional fuels, and is completing a renewable fuels manufacturing facility co-located with its Hawaii refinery through a joint venture with Alohi. The company also operates logistics and retail segments serving the western U.S. It holds an equity-method investment in Laramie Energy, a Colorado natural gas producer in Garfield, Mesa, and Rio Blanco counties.

Revenue drivers

• Refining — Largest earnings driver; Q2 2026 Refining segment operating income was $629.9 million versus $81.3 million a year earlier, with Q2 2026 segment Adjusted Gross Margin of $680.4 million.
• Retail — Retail segment operating income decreased $6.2 million in Q2 2026 versus Q2 2025, making it a smaller and currently shrinking contributor relative to refining.
• Logistics — Logistics supports the refining and retail operations; no separate segment results were disclosed in the provided excerpts.
• Renewables — Hawaii Renewables joint venture (63.5% Par-owned) is building the Renewable Fuels Facility near the Hawaii refinery, expected to begin operations in the first half of 2026; no revenue yet.

Recent performance

Q2 2026 net income attributable to Par Pacific stockholders was $462.1 million, or $9.35 per diluted share, versus $59.5 million, or $1.17 per diluted share, in Q2 2025. Adjusted EBITDA was $571.3 million versus $137.8 million a year earlier, and Adjusted Net Income was $499.2 million, or $10.10 per diluted share. Refining segment operating income rose to $629.9 million from $81.3 million, with throughput of 181 Mbpd versus 187 Mbpd. The Hawaii refinery's Q2 2026 Adjusted Gross Margin was $57.00 per barrel including a $76.5 million net price lag benefit, reversing a negative lag in Q1 2026. Q2 2026 revenue was $2.97 billion.

Strategy

Par Pacific is completing its annual turnaround maintenance, with the Hawaii turnaround substantially complete and most processing units back online. It formed the Hawaii Renewables joint venture with Alohi, contributed assets, and received an $83.0 million distribution from the JV, with Alohi contributing $100.0 million. It completed a $500 million senior unsecured notes offering in Q2 2026 that reduced term debt by more than $130 million, and amended its Term Loan Credit Agreement to cut the applicable margin by 50 basis points. The Renewable Fuels Facility is expected to commence operations in the first half of 2026.

Risks

• Commodity price and margin volatility — Brent averaged $87.58 per barrel in the first half of 2026 versus $70.82 a year earlier, and Par Pacific's Hawaii results include large net price lag impacts from prior-month and prior-week pricing of contractual sales volumes.
• Refinery operational incidents — The Wyoming refinery was idled for 66 days in 2025 after a February 12 operational incident, hurting comparability of 2025 and first-half 2026 results.
• RFS/RIN regulatory exposure — Par Pacific received 2019-2024 small refinery exemptions in August 2025 producing a $199.5 million gain, but the EPA has not determined 2025 SREs, so the company records 100% of its 2025 RFS obligation with no SRE relief assumed.
• Geopolitical supply disruption — The Strait of Hormuz effectively closed in early March 2026, disrupting global trade patterns and increasing crude oil price volatility.

Outlook

Management said Q2 2026 results reflected strong operational and commercial execution in a constructive market, and that with annual turnaround maintenance substantially complete the company is positioned to capitalize on the favorable margin environment. The Hawaii Renewables facility is expected to commence operations in the first half of 2026. The EPA has not yet determined small refinery exemptions for the 2025 compliance year.