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Par Pacific Holdings Inc. (PARR) is poised to benefit from current low crude oil prices, which are below $60 per barrel, as it primarily operates as a refining company with a capacity of 219,000 barrels per day. The U.S. Energy Information Administration (EIA) forecasts that the spot average West Texas Intermediate price will drop to $51.26 per barrel by 2026, significantly impacting the refining sector positively.
In contrast, Phillips 66 (PSX) and Valero Energy Corporation (VLO), other major refiners, are also expected to gain from the current pricing environment. Valero operates 15 refineries with a total throughput capacity of 3.2 million barrels per day and has indicated that its refining activities provide robust cash flows for shareholder returns.
Over the past year, PARR’s shares have surged by 184%, while its valuation stands at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) ratio of 5.47, above the industry average of 4.56. The Zacks Consensus Estimate for PARR’s 2025 earnings has seen upward revisions recently.
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