PBF Energy Inc. PBF posted first-quarter 2019 loss of $1.18 a share, wider than the Zacks Consensus Estimate of 95 cents and the year-ago quarter loss of 29 cents. The underperformance can be attributed to a decline in refining margin per barrel of throughput following strong turnarounds and maintenance activities. Lower crude oil and feedstocks throughput volumes added to the concern.
Total revenues fell to $5,216 million from $5,803 million in the prior-year quarter. The top line, however, beat the Zacks Consensus Estimate of $4,520 million.
Operating income at the Refining segment was $389.5 million, up from $127 million in the year-ago quarter.
The company generated profit of $34.2 million from the Logistics segment, which shows an improvement from the prior-year quarter’s $33.9 million.
In the quarter under review, crude oil and feedstocks throughput volumes were 743.1 thousand barrels per day (BPD), down from 799.6 thousand BPD in the year-ago quarter.
The East Coast, Mid-Continent, Gulf Coast and West coast regions accounted for roughly 41%, 20%, 22% and 17%, respectively, of the total oil and feedstocks throughput volume.
Company-wide gross refining margin per barrel of throughput — excluding special items — was recorded at $6.38, lower than the year-earlier quarter’s $7.26. This was owing to strong turnarounds and maintenance activities.
Refining margin per barrel of throughput was $3.35 in the East Coast, down from $6.47 in the year-earlier quarter. Refining margin realized was $3.33 per barrel in the Gulf Coast, down from $4.45 in the prior-year quarter. The metric was $10.76 per barrel in the West Coast, down from $10.81 in the prior-year quarter. However, the metric was $12.28 a barrel in the Mid-Continent, higher than $8.22 a year ago.
Refining operating expense per barrel of throughput was $6.78, higher than $5.72 in the year-ago quarter.
Capital Expenditure & Balance Sheet
Through the first quarter, the company spent $247.1 million capital on refining operations and $11.2 million on logistics businesses.
At the end of the quarter, the company had cash and cash equivalents of $418.3 million along with total debt of $2.2 billion, the debt-to-capitalization ratio being 39%.
PBF Energy projects total daily throughput volumes for the June quarter of 2019 from the East Coast in the range of 320,000-340,000 barrels, while the same from the Mid-Continent is expected in the band of 160,000-170,000 barrels. Total daily throughput volumes at the Gulf Coast are expected in the range of 190,000-200,000 barrels, while that at the West Coast is anticipated within 160,000-170,000 barrels.
Through 2019, the company anticipates total daily throughput volumes from the East Coast between 330,000 barrels and 350,000 barrels. The same from the Mid-Continent is projected at 150,000-160,000 barrels, while the Gulf Coast is anticipated to generate 190,000-200,000 barrels.
Zacks Rank and Key Picks
PBF Energy currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are ProPetro Holding Corp. PUMP, Parsley Energy PE and TransCanada Corp. TRP, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Midland, TX-based ProPetro’s 2019 earnings is pegged at $2.42, indicating 21% growth over the year-ago reported figure. Next year’s forecast is $2.70, hinting at 11.5% growth.
The Zacks Consensus Estimate for Austin, TX-based Parsley’s 2019 earnings stands at $1.53, implying an 8.5% improvement over the prior-year reported number. Next year’s projection is $2.47, calling for 61.8% growth.
TransCanada has beaten estimates in the last four quarters, the average being 19%.
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