Anyone know when turnaround scheduled?
Nice earnings report, though they had more oil in inventory than I imagined (or it's accounted for differently).
I've been buying and selling since around ex div time.
No div for me. Thought trading was a better option, but I think I'll get in on the next one.
The PADD II cs has skyrocketed from dismal to just fine and is on a steep upward trend (but not as good as the West Coast cs -wow). If turnaround has already happened, great, if not, I hope they wait as long as possible. Maybe it will go quickly because "We elected to perform a handful of maintenance activities at our St. Paul Park refinery during this time (late Q4)." (annual report )
Good luck to all
$700 ($690) MILLION in inventory non-cash inventory loss combined with a recoup gain of $280 mm in taxes-
If their cost was $100/bbl and it's now worth$50/bbl then they had 14 MILLION bbls of crude oil in storage.
NTI has about 1 MILLION bbls of crude oil storage capacity.
Why do you state that NTI held "little to no inventory"???
They have the capacity to store 800k bbls crude.
If these tanks were almost empty on 12/1 then NTI saved quite a bit of money - if they were full, the drop in inventory value would be huge ($40*800k)
that was BV on 12/31, It's certainly a lot higher now -
Both the 10yr and 30yr are down 20bp since December.
And the cost for the money ORC borrows to buy the 10 & 30 has fallen even more (by percent).
Sentiment: Strong Buy
Today a REIT makes the investment at the lower rates using money borrowed at even lower rates (percentage wise).
Not only has the BV of existing paper gone up, but so has the spread between the new paper and the new capital.
That's what's happening right these days.
As long as the spread between a REIT's borrowed money (2 & 5 year rates) and the mortgage rate (10 & 30 year rates) is increasing, let-em refi.
That spread has increased over the last two weeks (had been stable or decreasing until then -ugh).
We should have hit bottom.
Sounds like someone's been listening to a talking head fretting about refis and quoting the December discount numbers.
10 & 30 year rates down significantly - BV should be much higher.
2 & 3 year rates down even more (percentage wise)- So the spreads should be improved
What's not to like?
Brazil permitted an increase in gasoline prices at the pump in Nov. These prices have not decreased since then while crude has fallen 50%. PBR sells almost no crude in the international market.
PBR also buys quite a lot of refined product in the international market for domestic consumption .
Petro products prices have also fallen 50% internationally.
The Brazilian government can't help but f..k things up but PBR should be rolling in the dough - though I'm fairly sure that private investors in PBR won't see much of those gains.