Goldman Sachs Upgrades Par Pacific and Delek Ratings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 10 2026
0mins
Source: seekingalpha
- Rating Upgrade: Goldman Sachs upgraded Par Pacific (PARR) from Neutral to Buy with a price target of $77, driven by strong earnings expectations in Hawaii and undervalued mainland refiners, indicating robust fundamentals and positive estimate revisions.
- Market Outlook: Analysts highlighted that tighter refining supply-demand fundamentals and the scarcity of refined products should enhance earnings power for U.S. refiners, suggesting a constructive outlook for small-to-midcap refiners.
- Delek US Performance: Delek US Holdings (DK) was also upgraded to Buy with a target price of $55, based on forecasts for stronger free cash flow generation supported by self-help initiatives, including cost-reduction efforts and improved marketing strategies.
- CVR Energy and PBF Energy: Goldman maintained a Sell rating on CVR Energy (CVI) due to a focus on debt paydown, while keeping a Neutral rating on PBF Energy (PBF) as they await full recovery from the 2025 fire at the Martinez refinery.
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Analyst Views on DK
Wall Street analysts forecast DK stock price to fall
9 Analyst Rating
2 Buy
7 Hold
0 Sell
Hold
Current: 47.220
Low
33.00
Averages
41.00
High
53.00
Current: 47.220
Low
33.00
Averages
41.00
High
53.00
About DK
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels. The Company's segments include Refining and Logistics. The Refining segment processes crude oil and other feedstocks for the manufacture of transportation motor fuels, including various grades of gasoline, diesel fuel and aviation fuel, asphalt and other petroleum-based products that are distributed through owned and third-party product terminals. The Refining segment also owns three biodiesel facilities, located in Crossett, Arkansas, Cleburne, Texas and New Albany, Mississippi. The Logistics segment is engaged in gathering, transporting and storing crude oil and natural gas, marketing, distributing, transporting and storing intermediate and refined products and disposing and recycling water in select regions of the southeastern United States and North Dakota, the Midland Basin in Texas, the Delaware Basin in New Mexico and West Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Acquisition Challenges: Accurate ship data is becoming difficult to obtain as more vessels turn off their satellite signals, leading market participants to rely on expensive satellite or military-grade information to track ship movements, which may impact investment decisions.
- Supply Chain Risks: The 'opening' of the Strait of Hormuz is critical for the supply of refined products like diesel and jet fuel, and any disruption in supply could lead to market tightness, affecting the global energy supply chain.
- Strategic Petroleum Reserve Concerns: Amos Hochstein, former energy security advisor to President Biden, noted that drawing down the Strategic Petroleum Reserve below 300 million barrels could lead to physical issues during extraction, further impacting market supply and price stability.
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- Rising Ship Traffic: U.S. Energy Secretary Chris Wright confirmed that ship traffic through the Strait of Hormuz is rising significantly, although it has not yet returned to pre-war levels, a trend that could influence oil price volatility and lead to short-term price drops.
- Data Acquisition Challenges: Accurate ship data is becoming difficult to obtain as more vessels turn off their satellite signals, leading market participants to rely on expensive satellite or military-grade information to track ship movements, which may impact investment decisions.
- Supply Chain Risks: The 'opening' of the Strait of Hormuz is critical for the supply of refined products like diesel and jet fuel, and any disruption in supply could lead to market tightness, affecting the global energy supply chain.
- Strategic Petroleum Reserve Concerns: Amos Hochstein, former energy security advisor to President Biden, noted that drawing down the Strategic Petroleum Reserve below 300 million barrels could lead to physical issues during extraction, further impacting market supply and price stability.
See More
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- Strong Stock Performance: Delek US Holdings (DK) has seen a 64% year-to-date increase in stock price, with a market capitalization nearing $3 billion, yet it remains underappreciated despite the broader energy sector and small-cap stock rally.
- Increased Analyst Attention: The stock has risen over 13% since May 26, and is covered by 13 sell-side analysts, indicating that Wall Street is beginning to recognize its potential value, which may attract more investor interest.
- Operational Optimization Strategy: Delek's enterprise optimization program, launched in 2022, has significantly boosted profitability by cutting overhead and waste, with a fivefold increase in EBITDA in the first quarter, despite revenue remaining flat compared to last year, showcasing the effectiveness of its unique 'surgical' operational approach.
- Shareholder Return Capacity: With a current dividend yield of 2.1%, Delek paid $15.6 million in dividends in Q1 2026 and ended the period with $624.1 million in cash, demonstrating its ability to sustain and potentially grow payouts, even as it maintains a relatively high debt ratio compared to larger competitors.
See More
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- Stock Rebound: Delek US Holdings has seen its stock rise over 13% since May 26, with a remarkable 64% year-to-date gain in 2026, indicating a growing market interest in its potential.
- Profitability Surge: While revenue remained flat year-over-year, Delek achieved a fivefold increase in EBITDA in Q1, demonstrating that its operational optimization strategies effectively enhanced profitability without necessitating significant revenue growth.
- Shareholder Returns: In Q1 2026, Delek spent $15.6 million on dividends and ended with $624.1 million in cash, indicating its capacity to sustain or even increase dividends, making it a noteworthy player in the oil dividend stock conversation.
- Debt Management: The company reduced $53 million in debt during Q1, and despite a relatively high debt ratio, its commitment to improving financial health may attract more investor attention in the future.
See More
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- Strategic Partnership: On May 7, 2026, Sky Quarry signed a non-binding MOU with Southern Energy Renewables and DevvStream for a three-year collaboration focused on low-carbon fuel development and refinery integration, marking a significant strategic positioning in the energy transition.
- Resource Development Plan: Sky Quarry issued a Request for Proposals for its PR Spring oil sands asset, targeting the development of approximately 180 million barrels of oil and integrating heavy oil production directly into the Foreland Refinery, creating a vertically integrated pathway that enhances market competitiveness.
- Refinery Capacity Enhancement: The Foreland Refinery operates at a capacity of 5,000 barrels per day and has recently completed high-impact system upgrades, unlocking strategic value and supporting Sky Quarry's goal of 800,000 barrels of annual production, thereby strengthening its operational capabilities in the Western market.
- Policy Support Environment: The Trump administration's Defense Production Act prioritizes U.S. refining infrastructure, and Sky Quarry's multi-party collaboration aligns with this policy, ensuring the company maintains a competitive edge in the currently constrained domestic refining market.
See More
Sky Quarry Forms Strategic Collaboration with Southern Energy
- Strategic Collaboration: On May 7, 2026, Sky Quarry signed a non-binding Memorandum of Understanding with Southern Energy and DevvStream for a three-year term, focusing on low-carbon fuel development and refinery integration, marking a significant advancement in the company's low-carbon fuel pathways.
- Resource Development Plan: On April 29, 2026, Sky Quarry issued a Request for Proposals for its PR Spring oil sands asset, aiming to integrate approximately 180 million barrels of heavy oil production directly into the Foreland Refinery, creating a vertically integrated pathway that enhances overall operational efficiency.
- Refinery Capacity Enhancement: The Foreland Refinery operates at a capacity of 5,000 barrels per day, and following high-impact system upgrades, Sky Quarry's strategic growth plan targets up to 800,000 barrels of annual sustained production, further solidifying its position in the U.S. refining market.
- Policy Support Environment: Sky Quarry's operations are bolstered by the Trump administration's policy support under the Defense Production Act, combined with its 180 million barrels of feedstock and multi-party collaborations, creating a structural framework conducive to the company's growth and enhancing its strategic value within domestic refining capacity.
See More
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