HOUSTON - Par Pacific Holdings, Inc. (NYSE:PARR), a diversified energy company, has entered into a new financial arrangement with Citigroup Energy Inc. for the procurement of crude oil. Under the agreement announced today, Citigroup will supply crude oil to Par Pacific's subsidiary, Par Hawaii Refining, LLC, for its refinery operations in Kapolei, Hawaii.
This new agreement coincides with the termination of Par Pacific's previous supply and offtake agreement with J. Aron & Company LLC. In addition to these changes, Par Pacific has successfully increased lender commitments under its existing asset-based revolving credit facility to $1.4 billion. The expansion of the credit facility is attributed to the inclusion of additional collateral assets in Hawaii, such as refined product inventory and accounts receivable.
The financial restructuring, including the crude-only intermediation financing agreement with Citigroup, the termination of the former agreement with J. Aron & Company LLC, and the augmented credit facility, all took effect as of May 31, 2024.
Par Pacific, headquartered in Houston, Texas, operates across the energy sector, providing a mix of renewable and conventional fuel products mainly to markets in the western United States. The company manages a substantial refining capacity, totaling 219,000 barrels per day, spread across facilities in Hawaii, the Pacific Northwest, and the Rockies.
Par Pacific also maintains a significant energy infrastructure network, which includes storage, as well as marine, rail, and pipeline assets. In the retail sector, the company runs the Hele brand in Hawaii and the 'nomnom' convenience store chain in the Pacific Northwest. Additionally, Par Pacific holds a 46% stake in Laramie Energy, LLC, a natural gas producer with assets in Western Colorado.
The information reported is based on a press release statement from Par Pacific Holdings, Inc.
In other recent news, Par Petroleum has been a focal point for analyst updates and financial results. Piper Sandler recently revised the company's stock target to $43.00, down from $47.00, but maintained an Overweight rating. This adjustment was based on a detailed analysis of the refining sector's performance and Par Petroleum's financial updates, with a significant decrease in refining estimates.
Similarly, TD Cowen adjusted its outlook on Par Petroleum, reducing the price target to $42.00 yet reaffirming a Buy rating. The firm noted Par Petroleum's active share repurchase strategy, signaling a commitment to support the stock price. Despite some near-term challenges, TD Cowen remains confident in the company's long-term prospects.
Par Petroleum also announced its first-quarter financial results, showcasing a robust adjusted EBITDA of $95 million and adjusted net income of $0.69 per share. The company's Retail and Logistics segments delivered stable earnings, while the Refining segment is preparing for increased production. The company's renewable fuel initiatives are progressing, and it maintains a strong balance sheet with over $575 million in liquidity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.