One NYSE-Listed Oil & Gas Refining Stock to Consider: Par Pacific Holdings Inc

Section 1: Company Overview and Fundamentals

Company Overview:

Par Pacific Holdings, Inc. (NYSE: PARR) is an energy company, which provides both renewable and conventional fuels to the western United States. It owns and operates 125,000 barrels per day of combined refining capacity across three locations and an energy infrastructure network, including 7.6 million barrels of storage, and marine, rail, rack and pipeline assets. The Company has three segments. Refining segment owns and operates four refineries with total operating crude oil throughput capacity of 219 thousand barrels per day (Mbpd)

Kalkine’s US Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 19.25% in the last three months as well as by 37.09% in past nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 40.70 and 52-week low price of USD 21.31, with the current price near an important support zone of USD 19.50-USD 21.00, with expectations of upward momentum, if these levels sustains.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 36.37, downward trending with expectations of trend reversal, if the support levels hold.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~47.22% of the total shareholding, signifying concentrated shareholding. BlackRock Institutional Trust Company, N.A., and The Vanguard Group, Inc. are the biggest shareholders, holding the maximum stake in the company at ~13.33% and ~9.16%, respectively.

1.4 Key Metrics:

Par Pacific Holdings, Inc. has demonstrated growth in recent years. Over the past five years, the company's revenue has experienced a robust compound annual growth rate (CAGR) of 19.27%, rising from USD 5,401.5 million in 2019 to USD 8,232 million in 2023. Concurrently, the gross profit saw an impressive recovery and expansion, with a five-year CAGR of 39.47%, escalating from USD 260.2 million in 2019 to USD 908.3 million in 2023. This progression underscores Par Pacific's strengthening financial performance, overcoming challenges such as a negative gross profit in 2020.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q2FY24:

Section 3: Key Risks & Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 19.25% in the last three months as well as by 37.09% in past nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 40.70 and 52-week low price of USD 21.31, with the current price near an important support zone of USD 19.50-USD 21.00, with expectations of upward momentum, if these levels sustains.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 36.37, downward trending with expectations of trend reversal, if the support levels hold.  

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 28, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.