Par Pacific Holdings announced a 2026 capital‑expenditure plan that will range from $190 million to $220 million, a reduction from the $210 million to $240 million guidance issued for 2025 and the $220 million to $250 million guidance for 2024. The company’s decision to trim spending reflects a shift toward more targeted investments amid a backdrop of modest revenue growth and a focus on operational efficiency.
The $190‑$220 million capex is broken down into three key buckets: $50‑$60 million for major turnarounds, $105‑$115 million for maintenance and catalyst replacement, and $35‑$45 million for growth initiatives. The emphasis on maintenance and catalyst spending underscores Par Pacific’s commitment to sustaining refining reliability and throughput, while the growth allocation supports selective expansion in refining, logistics, and retail assets, including the Hawaii Renewables joint venture that produces renewable diesel and sustainable aviation fuel.
Comparing the 2026 guidance to prior years shows a clear moderation in planned spending. The company’s 2025 guidance of $210‑$240 million and 2024 guidance of $220‑$250 million were both higher, indicating that management is tightening its capital budget in response to a more cautious outlook for demand and a desire to preserve liquidity. This adjustment signals confidence that the company can maintain profitability with a leaner investment profile.
Par Pacific’s focus on maintaining and upgrading its refining and logistics network across Hawaii, the Pacific Northwest, and the Rockies aligns with its strategy to serve logistically complex markets. The company’s renewable fuels initiative, particularly the Hawaii Renewables joint venture with Mitsubishi and ENEOS, positions it to capture growth in low‑carbon fuels. The capex plan also dovetails with a recent repricing of its 2030 term loan credit agreement, which is expected to reduce interest costs by 50 basis points, further strengthening the company’s balance sheet.
Despite a strong third‑quarter earnings beat—EPS of $5.95 versus a consensus of $1.98 and revenue of $2.01 billion versus $1.72 billion—the market reacted with a 4 % decline in the stock price. Investors weighed the earnings beat against a 6.1 % year‑over‑year revenue decline and the more conservative 2026 capex outlook, leading to a cautious stance on the company’s near‑term growth prospects.
CEO William Monteleone emphasized that the company remains focused on disciplined spending and operational excellence. He noted that the capex plan reflects a strategic balance between maintaining core assets, investing in renewable fuel projects, and preserving liquidity, which he believes will support long‑term profitability and shareholder value.
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