Big guys tripped all the sells then came in and bought. News is around the corner with Options Exp. Friday and possible Sale of Citgo to one or multiple refiners /oil companies.
DALLAS --(BUSINESS WIRE)-- HollyFrontier Corporation (NYSE: HFC) (" HollyFrontier ") today announced its Board of Directors has authorized a $500 million share repurchase program. This authorization replaces all existing share repurchase authorizations, of which there was approximately $230 million remaining after having recently purchased approximately 1.6 million shares in the third quarter of 2014. Share repurchases will be made in the open market or through privately negotiated transactions from time to time and are subject to market conditions, corporate, regulatory and other considerations. This share repurchase program may be discontinued at any time by the Board of Directors.
"Our Board's decision to authorize a $500 million share repurchase program reflects our renewed focus on share repurchases in addition to our dividend program and our continued commitment to deliver value to our shareholders," said Mike Jennings , President and Chief Executive Officer of HollyFrontier .
Who do you think will bid WNR?
Reuters: PDVSA seeks bids for Citgo in potential $10B deal • 6:52 PM
Carl Surran, SA News Editor
Venezuela's PDVSA reportedly is seeking preliminary offers for its U.S. unit Citgo Petroleum by the end of September, a deal that could fetch up to $10B.
Lazard is running the sale process for Citgo on behalf of PDVSA and is said to have sent offering materials to potential buyers; Deutsche Bank is separately exploring a sale of PDVSA's 50% stake in the Chalmette refinery in Louisiana it owns alongside Exxon.
HollyFrontier (NYSE:HFC), Valero Energy (NYSE:VLO), Western Refining (NYSE:WNR), Tesoro (NYSE:TSO) and PBF Energy (NYSE:PBF) are speculated as logical bidders for Citgo's U.S. refineries in Lemont, Ill.; Lake Charles, La.; and Corpus Christi, Tex.
MIAMI, Fla.- U.S. Rep. Joe Garcia and Venezuelan opposition leaders in Miami called on the Obama administration Wednesday to block Venezuela's sale of U.S.-based Citgo Petroleum Corp.
Garcia said the sale of Venezuela's oil refining and distribution network in the U.S. would hurt national interests, noting a number of American corporations are owed large amounts of money by the Venezuelan government and that the country has few significant remaining assets in the U.S.
"The last thing we want them to do is delink themselves from the United States and then not pay their debtors," Garcia said.
He said Citgo's value is also "severely diminished" when no longer tied to Venezuelan oil reserves, hurting both nations' assets in the long term.
"We believe allowing this government to monetize this part of the Venezuelan patrimony would be a grave mistake," Garcia said.
Venezuela has been in the throes of economic crisis and analysts have said the sale likely reflects the social government's urgent need for cash.
Venezuelan Oil Minister Rafael Ramirez said earlier this month Venezuela would sell Citgo for the right price. The company is believed to be worth as much as $15 billion, and Ramirez has said any sale must be for at least $10 billion to be considered.
Over 5 million shares traded and up 2.32%. That's a nice move for a Friday. Don't think Citgo is a good fit unless they sell of parts but will be interesting to see who bids.
PBF Energy Inc. (PBF) announced today that its board of directors has authorized the repurchase of up to $200 million of PBF Class A common stock. This repurchase authorization expires on September 30, 2016.
“Returning capital to our shareholders is fundamental to creating value and enhancing shareholder returns,” said PBF Energy CEO Tom Nimbley. “Today’s announcement reaffirms this ongoing commitment to our shareholders.”
These repurchases may be made from time to time through various methods, including open market transactions, block trades, accelerated share repurchases, privately negotiated transactions or otherwise, certain of which may be effected through Rule 10b5-1 and Rule 10b-18 plans. The timing and number of shares repurchased will depend on a variety of factors, including price, capital availability, legal requirements and economic and market conditions. PBF is not obligated to purchase any shares under the repurchase program, and repurchases may be suspended or discontinued at any time without prior notice.
Valero Energy’s (VLO) performance has been anything but refined recently, as the refiner has dropped 3.2% during the best three month. Morgan Stanley’s Evan Calio and Manav Gupta, however, think it’s time for a Valero turnaround. They explain why:
In the last 3 months, Valero Energy has underperformed its closest peers Marathon Petroleum (MPC) and Phillips 66 (PSX) by 5% and 7.1%, respectively. While Marathon Petroleum, Phillips 66 and ExxonMobil (XOM) have major planned turnaround scheduled for 4Q14, Valero Energy will be operating at a meaningfully higher utilization rate and is best positioned to capture any widening Gulf Coast differentials resulting from high turnaround activity. In addition to 4Q14 earnings revision upside, we estimate Valero Energy has $800MM in MLP-able EBITDA (including organic growth projects) which can be dropped into Valero Energy Partners (VLP) in the foreseeable future. Assuming a 10.0x EBITDA multiple, we estimate Valero Energy can unlock ~$19.6/shr (drop-down proceeds + GP valuation + LP valuation) in value if it chooses to drop these assets into Valero Energy Partners in the 3 years. For Valero Energy, higher pace of drops could provide a much higher EVA strategy than cutting capex.
Shares of Valero Energy have gained 2.2% to $53.37 at 2:19 p.m. today, while Phillips 66 has gained 2.1% to $85.52, Marathon Petroleum has advanced 1.3% to $89.77 and ExxonMobil has ticked up 0.3% to $99.36. Valero Energy Partners is up 2.1% at $49.16.
In an attempt to increase cash flow for the country's impoverished economy, Venezuelan Economy Vice President Rafael Ramirez confirmed this past week that the government is interested in selling one of its main assets on the international market, Citgo Petroleum Corp., one of the largest oil refinery and distribution networks in the United States.
"We will get rid of Citgo when we receive a lucrative offer," said Ramirez, who also serves as president of PDVSA, the state-run oil company, and as President Nicolás Maduro's energy and oil minister.
Reports claim that Venezuela has three offers on the table from Goldman Sachs, J.P. Morgan and Deutsche Bank.
Question is who will be the buyer?
Take a look at the September call options on PBF. Open interest 18,447 at $30 and 13,649 at $35. Just hold and don't buy more. Stock may go down again on the 27th when they pay the divy. Lots of interest in Mid Continent refiners. I would not be surprised if someone makes an offer for PBF.
Shorts will have their hands full. Better cover:)
Momentum will carry this stock north even if they miss (a little). Second quarter is history and oil is backing off. Nice divy so you are protected somewhat.
Valero Energy declares $0.275 dividend • 11:42 AM
Valero Energy (NYSE:VLO) declares $0.275/share quarterly dividend, 10.0% increase from prior dividend of $0.25.
Forward yield 2.22%
Payable Sept. 17; for shareholders of record Aug. 20; ex-div Aug. 18.