UBS reiterates Par Pacific stock rating on asset sale agreement

UBS has reaffirmed its Neutral rating and $65.00 price target for Par Pacific Holdings (NYSE:PARR) following the company's announcement of an asset sale agreement. Laramie Energy, a 46% non-controlling interest held by Par Pacific, has reached an agreement with a third-party buyer to sell its oil and gas assets for $485 million in cash.

The deal includes a $60 million payment on the fifth anniversary of the closing date, and potential price-contingent earn-out payments of up to $65 million following the first through fifth anniversaries. UBS analyst Manav Gupta kept Par Pacific's rating the same and maintained the price target at $65.00, even though the stock is currently trading at $73.93.

The stock has delivered a 129% return over the past year, and InvestingPro analysis suggests it remains undervalued with upside potential. Par Pacific's second-quarter 2026 profit increased significantly, beating expectations with adjusted earnings of $10.10 per share on $2.97 billion in revenue. The company attributes this success to improved refining margins and robust plant operations, resulting in a notable rise in Adjusted EBITDA to $571 million.

Despite the positive earnings, Par Pacific's stock fell in after-hours trading, prompting investors to question the sustainability of this performance.