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PBF Energy (PBF) Gains 3.5% as Q3 Earnings Beat Estimates

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PBF Energy Inc. PBF stock gained 3.5% since it released strong third-quarter 2021 earnings on Oct 28.

The leading North American independent refiner reported third-quarter 2021 earnings of 12 cents per share against the Zacks Consensus Estimate of a loss of 25 cents. The bottom line also turned around from the year-ago loss of $2.87 per share.

Total revenues increased to $7,187 million from $3,668 million in the prior-year quarter and beat the Zacks Consensus Estimate of $6,484 million.

The strong quarterly results can be attributed to a significant improvement in refining margin.

PBF Energy Inc. Price, Consensus and EPS Surprise

PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. Price, Consensus and EPS Surprise

PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote

Segmental Performance

The company’s operating income at the Refining segment was $116.7 million, turning around from a loss of $367 million a year ago.

It generated a profit of $47.1 million from the Logistics segment, reflecting a decline from the prior-year quarter’s $55.6 million.

Throughput Analysis

Volumes:

For the quarter under review, crude oil and feedstocks throughput volumes were 848.3 thousand bpd, higher than the year-ago figure of 706.1 thousand bpd.

East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 30.6%, 17.2%, 17.1%, and 35, respectively, of the total oil and feedstock throughput volume.

Margins:

Company-wide gross refining margin per barrel of throughput — excluding special items — was recorded at $9.32, significantly higher than the year-earlier $2.98.

Gross refining margin per barrel of throughput was $10 in the East Coast, up from $2.41 in the year-ago quarter. Realized refining margin was $8.40 per barrel in the Gulf Coast, up from $2.48 in the prior-year period. The metric was $8.06 and $11.64 per barrel in the West Coast and Mid-Continent compared with respective margins of $4.43 and $1.87 a year ago.

Costs & Expenses

Total costs and expenses for the reported quarter were $7,085.8 million, significantly higher than $4,010.2 million in the year-ago period. Cost of sales — which includes operating expenses, cost of products and others and depreciation and amortization expenses — amounted to $7,018 million, higher than the year-ago $3,980.8 million.

Capital Expenditure & Balance Sheet

Through the third quarter, the company spent $83.1 million in capital on refining operations and $3.4 million on logistics businesses.

At quarter-end, it had cash and cash equivalents of $1,472.5 million. As of Sep 30, PBF Energy had a total debt of $4,407.1 million, resulting in a total debt to capitalization of 65%.

Outlook

The company continued to expect fuel demand to recover gradually in the coming days. The company reaffirmed its capital spending projection for this year at the band of $400-$450 million.

Zacks Rank & Stocks to Consider

The company carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the energy space include Whiting Petroleum Corporation WLL, Comstock Resources, Inc. CRK and APA Corporation APA. While Comstock carries a Zacks Rank #2 (Buy), Whiting Petroleum and APA Corporation sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Comstock is expected to witness earnings growth of 378.3% in 2021.

APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.


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