PBF Energy Inc. (PBF - Free Report) gained 3.2% since it reported strong third-quarter 2022 results on Oct 27. Increased contributions from the Refining segment primarily aided the quarterly earnings.
The company reported earnings of $7.96 per share, comfortably beating the Zacks Consensus Estimate of earnings of $6.03. The bottom line improved from the year-ago profit of 12 cents per share.
Total quarterly revenues increased to $12,765 million from $7,187 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $10,116 million.
Segmental Performance
PBF Energy’s operating income from the Refining segment was $1,522.9 million, significantly improving from $116.7 million a year ago.
It generated a profit of $44.7 million from the Logistics segment, reflecting a decline from the prior-year quarter’s $47.1 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 984.7 thousand barrels per day (bpd), higher than the year-ago figure of 848.3 thousand bpd.
East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 32.4%, 16.2%, 19.6% and 31.9%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $24.96, significantly higher than the year-earlier figure of $9.32.
The gross refining margin per barrel of throughput was $20.78 for the East Coast, up from $10.00 in the year-ago quarter. Realized refining margin was $20.25 per barrel for the Gulf Coast, up from $8.40. The metric was $33.02 and $23.21 per barrel in the West Coast and Mid-Continent compared with respective margins of $8.06 and $11.64 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $11,364.6 million, significantly higher than $7,085.8 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 $11,191.4 million, higher than the $7,018 million reported a year ago.
Capital Expenditure & Balance Sheet
In the third quarter, PBF Energy spent $242.4 million in capital on refining operations and $1.5 million on logistics businesses.
At the quarter-end, it had cash and cash equivalents of $1,908.6 million. As of Sep 30, PBF Energy had a total debt of $1,971.5 million, resulting in a total debt to capitalization of 29%.
Zacks Rank & Other Stocks to Consider
PBF Energy currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Shell plc (SHEL - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
Being a leading player in liquefied natural gas across the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL is likely to see earnings growth of almost 115%.
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PBF Energy Inc. (PBF - Free Report) gained 3.2% since it reported strong third-quarter 2022 results on Oct 27. Increased contributions from the Refining segment primarily aided the quarterly earnings.
The company reported earnings of $7.96 per share, comfortably beating the Zacks Consensus Estimate of earnings of $6.03. The bottom line improved from the year-ago profit of 12 cents per share.
Total quarterly revenues increased to $12,765 million from $7,187 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $10,116 million.
Segmental Performance
PBF Energy’s operating income from the Refining segment was $1,522.9 million, significantly improving from $116.7 million a year ago.
It generated a profit of $44.7 million from the Logistics segment, reflecting a decline from the prior-year quarter’s $47.1 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 984.7 thousand barrels per day (bpd), higher than the year-ago figure of 848.3 thousand bpd.
East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 32.4%, 16.2%, 19.6% and 31.9%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $24.96, significantly higher than the year-earlier figure of $9.32.
The gross refining margin per barrel of throughput was $20.78 for the East Coast, up from $10.00 in the year-ago quarter. Realized refining margin was $20.25 per barrel for the Gulf Coast, up from $8.40. The metric was $33.02 and $23.21 per barrel in the West Coast and Mid-Continent compared with respective margins of $8.06 and $11.64 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $11,364.6 million, significantly higher than $7,085.8 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 $11,191.4 million, higher than the $7,018 million reported a year ago.
Capital Expenditure & Balance Sheet
In the third quarter, PBF Energy spent $242.4 million in capital on refining operations and $1.5 million on logistics businesses.
At the quarter-end, it had cash and cash equivalents of $1,908.6 million. As of Sep 30, PBF Energy had a total debt of $1,971.5 million, resulting in a total debt to capitalization of 29%.
Zacks Rank & Other Stocks to Consider
PBF Energy currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Shell plc (SHEL - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
Being a leading player in liquefied natural gas across the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL is likely to see earnings growth of almost 115%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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