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PBF Energy (PBF) Gains 3.2% as Q3 Earnings Beat Estimates
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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.
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%.
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 (PBF) Gains 3.2% as Q3 Earnings Beat Estimates
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.
PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote
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%.