my thought is that refiners have historically had very wild swings in profitability, and that management was powerless to predict margins and earnings. Wall St. doesnt value periodic profitability and only gives full PE ratio to predictable earnings, and gives above average PE to predictable with growth.
We have never had that, and the predictions are for pipeline takeaways to destroy current high margins. dont look for that to change quickly. At best we get 8-9 PE instead of 5-7. But at current earnings rate 9 PE would be awesum. May get there by year end. Sooner if the anti Tar Sands people get their way and the new pipelines dont get approved in timely fashion.
Sentiment: Buy