PBF Energy (PBF Quick QuotePBF - Free Report) and Par Pacific Holdings (PARR Quick QuotePARR - Free Report) are two energy-sector players with similar downstream operations. PBF Energy produces transportation fuels, heating oil, petrochemical feedstocks and other petroleum products. The company also provides pipeline, storage and terminaling services through its Logistics segment and participates in renewable diesel production. PBF Energy operates six U.S. refineries with combined crude processing capacity of about 1 million barrels per day.

Par Pacific operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho; refining operations in Hawaii, Wyoming, Washington and Montana; cumulative refining capacity of 219,000 barrels per day; and a supporting logistics network.

Over the past year, PBF shares have soared 109.9%, outperforming PARR’s 103.4% surge.

Image Source: Zacks Investment Research

Price performance alone does not determine a stock’s attractiveness, as it largely reflects market sentiment. Assessing the fundamentals and operating environment of both companies is therefore essential before making an investment decision.

RBI Savings Are Lowering PBF’s Structural Cost Base

PBF’s Refining Business Improvement (RBI) initiative is becoming an increasingly important earnings lever alongside favorable refining conditions. The program generated more than $230 million of run-rate cost improvements in 2025, and PBF expects savings to exceed $350 million by the end of 2026. The benefits are expected to flow through refinery operating expenses, as well as capital and turnaround programs.

Progress is already visible across several initiatives. A system-wide energy-efficiency program has reduced purchased natural gas by 20% on a per-barrel, price-adjusted basis compared with the 2024 baseline. Meanwhile, PBF’s procurement organization is renegotiating or rebidding more than 60 contracts, and expects roughly $60 million of annual savings across chemicals, maintenance, equipment rentals and other categories.

These measures matter because they can lower the cost threshold required for PBF to generate attractive returns across different refining environments, rather than merely boosting earnings when crack spreads are strong. Improved turnaround execution and interval optimization are also allowing the company to defer planned Chalmette and Toledo turnarounds from late 2026 into 2027.

That decision contributed to PBF lowering its 2026 capital expenditure guidance to $825-$875 million. Taken together, a lower structural cost base, better asset reliability and disciplined maintenance scheduling could improve margin capture and support stronger free-cash-flow conversion over time.

Distillate-Heavy Refining Mix Strengthens PARR’s Margin Opportunity

Par Pacific’s refining portfolio stands out for its relatively high exposure to distillates. Across its 219,000-barrels-per-day refining system, distillates and low-sulfur fuel oil represented 52% of product yield for the 12 months ended June 30, 2026, compared with 36% for gasoline. PARR shows peer distillate-oriented yields of 38-41%.

This product mix gives PARR greater exposure to periods of strong middle-distillate pricing. Rather than relying predominantly on gasoline economics, the company can capture favorable pricing across diesel, jet fuel and other distillate products through a larger share of its refining output.

That positioning proved valuable in the first half of 2026 as regional refining economics strengthened considerably. In Hawaii, PARR’s refining index increased to $31.11 per barrel in the first quarter of 2026 and then to $46.06 in the second quarter compared with a five-year average of $14.51 and a 10-year average of $10.37. The Singapore 3-1-2 product crack similarly reached $49.99 per barrel in the second quarter, well above its five-year average of $20.03.

Hawaii is particularly important because it accounts for 94,000 barrels per day of PARR’s total 219,000-bpd refining capacity, making stronger Pacific-basin product economics a meaningful contributor to consolidated profitability.

Favorable refining conditions were also evident across PARR’s other markets. The Wyoming Index reached $28.73 per barrel in the second quarter of 2026 compared with a five-year average of $21.27. Montana reached $25.76 versus $18.74, while Washington reached $20.27 compared with $10.97.

These levels were also materially above the assumptions used in PARR’s mid-cycle framework, which incorporates regional indices of $8-$9 per barrel for Hawaii, $17.50-$18.50 for Wyoming, $8.50-$9.50 for Washington and $16-$17 for Montana. The broad-based strength across all four regions suggests that the earnings benefit has not been dependent on a single refinery or market.

Image Source: Par Pacific Holdings

Valuation Snapshot

From a valuation standpoint, PBF Energy currently trades at a premium to Par Pacific. PBF carries a trailing 12-month EV/EBITDA multiple of 4.8X compared with 3.26X for PARR.

The valuation gap is noteworthy because PARR is currently benefiting from strong refining economics, above-peer distillate exposure and sharply improved refining EBITDA, while still trading at the lower EV/EBITDA multiple.

Image Source: Zacks Investment Research

PBF Holds the Edge Over PARR

PBF Energy and Par Pacific both offer identifiable operating catalysts. PARR is benefiting from strong refining conditions and its above-peer exposure to distillates, while its lower EV/EBITDA multiple provides an additional valuation advantage. However, these benefits remain closely tied to favorable refining margins, which can fluctuate materially as industry conditions change.

PBF’s investment case is supported by a more structural earnings driver. Its RBI initiative generated more than $230 million of run-rate savings in 2025, with improvements expected to exceed $350 million by the end of 2026. The company is also benefiting from lower energy consumption, procurement savings, better turnaround execution and reduced 2026 capital-expenditure requirements. These initiatives can support margins and free cash flow even if refining conditions become less favorable.

Therefore, despite PBF’s higher EV/EBITDA multiple, its expanding structural cost savings, improving capital efficiency and larger refining platform provide a compelling foundation for earnings and cash-flow improvement. Between the two stocks, PBF Energy emerges as the stronger investment choice, and investors should consider buying PBF over PARR.

PBF currently sports a Zacks Rank #1 (Strong Buy), whereas PARR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.