Par Pacific Holdings Reports $59.5 Million Net Income in Q2 2025, Announces Joint Venture for Renewable Fuels

Par Pacific Holdings, Inc. reported its financial results for the second quarter and first half of 2025, revealing a net income of $59.5 million for the three months ended June 30, 2025, compared to $18.6 million for the same period in 2024. This significant increase in profitability was primarily driven by a $40.1 million rise in operating income from the refining segment, alongside improvements in logistics and retail operations. For the first half of 2025, net income reached $29.1 million, up from $14.9 million in the prior year, reflecting a continued recovery in operational performance.

Total revenues for the second quarter were $1.9 billion, a decrease of 6% from $2.0 billion in the previous year, attributed mainly to lower crude oil prices and a decline in refining revenue. The company experienced a 7% increase in sales volumes, which partially offset the revenue decline. In the first half of 2025, revenues totaled $3.6 billion, down 9% from $4.0 billion in the same period of 2024, again primarily due to lower crude prices and the impact of an operational incident at the Wyoming refinery earlier in the year.

Operationally, Par Pacific's refining segment saw an increase in adjusted gross margin, which rose to $231.8 million in the second quarter, up from $176.6 million a year earlier. This improvement was driven by higher crack spreads and increased refined product sales volumes. However, the refining segment's operating income for the first half of 2025 decreased to $56.6 million, down from $63.8 million in the same period of 2024, primarily due to unfavorable feedstock costs and increased environmental expenses.

In terms of strategic developments, Par Pacific announced a joint venture on July 21, 2025, with Alohi Renewable Energy, LLC, to establish a renewable fuels manufacturing facility in Hawaii. The joint venture is expected to enhance the company's capabilities in renewable energy and is projected to be operational by the end of 2025. The company also continued its share repurchase program, having repurchased approximately 1.6 million shares for $28.2 million during the second quarter, with $181.3 million remaining under the current authorization.

Looking ahead, Par Pacific anticipates that its cash flows from operations and available capital resources will be sufficient to meet its capital and turnaround expenditures, working capital, and debt service requirements for the next 12 months. The company remains cautious about market conditions, particularly regarding crude oil prices and regulatory changes impacting its operations.