What Par Pacific Holdings (PARR)'s $100 Million Renewable Fuels JV Means For Shareholders

• Par Pacific Holdings has entered a joint venture with Mitsubishi and ENEOS to develop Hawaii's largest renewable fuels facility at its Kapolei refinery, with Mitsubishi and ENEOS investing US$100 million for a 36.5% equity stake through Alohi Renewable Energy.
• This partnership leverages new pretreatment technology and existing infrastructure, aiming to supply significant volumes of sustainable aviation fuel and renewable diesel to decarbonize Hawaii's transportation sector.
• We'll now explore how the arrival of major partners with global reach may influence Par Pacific's ongoing business transformation story.

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Par Pacific Holdings Investment Narrative Recap

To be a Par Pacific Holdings shareholder today is to believe in the company’s pivot toward renewable fuels and its potential to drive future earnings, even as recent results have shown financial losses. The new joint venture with Mitsubishi and ENEOS directly supports Par Pacific’s Hawaii Sustainable Aviation Fuel (SAF) project, widely viewed as the most important near-term catalyst, while also bringing additional operational expertise that may help mitigate execution risk, the biggest threat to the business right now.

Of the recent announcements, the update on the Hawaii SAF project stands out most in light of this partnership. The construction progress and added support from experienced global partners could help strengthen project delivery and support the anticipated startup by year-end, aligning closely with the company’s ambitions and Wall Street’s focus.

By contrast, investors should be aware of ongoing execution risks at major projects like Hawaii Renewables, since any delay or operational setback could...

Read the full narrative on Par Pacific Holdings (it's free!)

Par Pacific Holdings' outlook anticipates $6.2 billion in revenue and $479.3 million in earnings by 2028. This is based on a forecasted annual revenue decline of 7.2% and an earnings increase of $539.3 million from current earnings of -$60.0 million.

Uncover how Par Pacific Holdings' forecasts yield a $30.00 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community have estimated Par Pacific’s fair value between US$30 and US$93.79 per share. While opinions span wide, execution risk at the Hawaii SAF facility remains a focal point for the company’s performance and future returns, consider how different outlooks may frame this critical issue.

Explore 3 other fair value estimates on Par Pacific Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own Par Pacific Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Par Pacific Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Par Pacific Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Par Pacific Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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