JP Morgan cuts PT across US refiners on weaker refining cracks

Par Pacific Holdings

02/07/2024 11:03

** Brokerage JP Morgan sees recovery in refining cracks over
the near term unlikely, unless an upside in demand presents
itself or if supply is impacted externally, such as through
hurricane damage
    ** Sees that in Q2, refineries ran higher than expected
utilizations coming out of maintenance, demand was lower on
gasoline and diesel and Russian refinery outages were shorter
and less impactful than expected
    ** "While gasoline cracks tend to climb throughout May-June,
they have been broadly flat to down since late April. We think
inventory builds are the primary driver" 

    PT changes: 
 Company                     New PT   Old PT   Rating
 CVR Energy  CVI.N           $26      $30      Underweight
 Delek Holdings  DK.N        $23      $25      Underweight
 HF Sinclair  DINO.N         $59      $61      Neutral
 Marathon Petroleum  MPC.N   $186     $191     Neutral
 Par Pacific  PARR.N         $36      $38      Neutral
 PBF Energy  PBF.N           $53      $58      Overweight
 Phillips 66  PSX.N          $162     $165     Overweight
 Valero  VLO.N               $172     $178     Overweight
 
 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))