Par Pacific Holdings PARR is best known for refining, a business that can swing with fuel margins. But the company is adding new earnings drivers that could help smooth results through the cycle.
The main near-term catalyst is Hawaii Renewables moving from start-up toward a steady ramp. A second stabilizer is Par Pacific’s ownership stake in a hedged natural gas producer. Together, these pieces set up a milestone-driven 2026 story.
Par Pacific’s Renewable Unit Moves From Start-Up to Ramp
Hawaii Renewables advanced into commissioning and early start-up in the fourth quarter of 2025. Pretreatment is already producing on-spec feedstock, an important technical checkpoint.
Management expects to introduce post-treated feed to the renewables unit in the next few weeks. After that, the priority is a safe ramp, stable operations, and then optimization.
PARR’s Near-Term Milestones for Stable Renewable Runs
For investors, the practical checklist is: (1) post-treated feed introduction, (2) stable operations, (3) optimization, and (4) steady-state contribution. Each step reduces uncertainty and makes earnings support more repeatable.
Timing is slightly later than originally expected. Start-ups can take longer if the unit needs extra reliability tuning before it can run consistently, which can push out meaningful contributions.
Par Pacific’s Laramie Energy Hedge Adds Earnings Visibility
Par Pacific owns 46% of Laramie Energy, a natural gas producer in Colorado. Laramie entered 2026 with about 73% of production hedged at $3.46 per MMBtu, which supports more predictable equity earnings.
That visibility can help buffer cash flows while renewables ramps and refining margins move around.
PARR’s Rockies Projects Aim To Lift Mid-Cycle Capture
Alongside renewables, Par Pacific is focused on targeted, high-return projects in the Rockies in 2026 to improve flexibility and margin capture.
The company also has leverage on Western Canadian Select differentials. At mid-cycle runs of 40 to 50 thousand barrels per day, each $1 change versus West Texas Intermediate equates to about $15 million to $16 million of annual EBITDA.
Par Pacific’s Diversification Thesis and Key Execution Risks
If renewables reach steady-state and affiliate earnings remain visible, the earnings base could become less tied only to refining cycles. That can support buybacks and reinvestment over time, helped by roughly $915 million of liquidity entering 2026 and a $250 million open-ended share repurchase authorization. PARR carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key risks remain. Quarter-to-date indicators show a weaker margin starting point than late 2025, with a combined refining index of about $6.70 per barrel versus $13.13 per barrel in the fourth quarter of 2025. Reliability matters, too, with outage sensitivity highlighted by a Northern Wyoming power outage impact and planned 2026 downtime in Hawaii. Renewables ramp issues could also divert attention from capture initiatives.
Peers such as Phillips 66 $PSX PSX and HF Sinclair Corporation DINO underscore how competitive refining is, which is why execution on these 2026 milestones is the real catalyst.
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