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PBF Energy (PBF) Tops on Q1 Earnings, Reiterates Refining Capex
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PBF Energy Inc. (PBF - Free Report) reported first-quarter 2023 earnings of $2.76 per share, beating the Zacks Consensus Estimate of earnings of $2.53. The bottom line improved from the year-ago profit of 35 cents per share.
Total quarterly revenues increased to $9,295 million from $9,142 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $8,870 million.
Strong quarterly results were primarily driven by a higher gross refining margin per barrel of throughput.
PBF Energy’s operating income from the Refining segment was $525.7 million, significantly improving from $146.1 million a year ago.
The company generated a profit of $49.7 million from the Logistics segment, reflecting an increase from the prior-year quarter’s $46.4 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 851.2 thousand barrels per day (bpd), higher than the year-ago figure of 832.6 thousand bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 38.3%, 11%, 19.9% and 30.8%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $18.35, significantly higher than the year-earlier figure of $11.36.
The gross refining margin per barrel of throughput was $18.16 for the East Coast, up from $11.03 in the year-ago quarter. The realized refining margin was $19.96 per barrel for the Gulf Coast, up from $11.96. The metric was $20.70 and $9.49 per barrel in the West Coast and Mid-Continent compared with respective margins of $12.75 and $8.50 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $8,762.6 million, lower than $9,050.7 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 $8,718.6 million, lower than the $8,944.9 million reported a year ago.
Capital Expenditure & Balance Sheet
In the first quarter, PBF Energy spent $379.2 million in capital on refining operations and $2.7 million on logistics businesses.
At the first-quarter end, it had cash and cash equivalents of $1,616.1 million. As of Mar 31, PBF Energy had a total debt of $1,438 million, resulting in a total debt-to-capitalization of 21.4%.
Outlook
For the second quarter, the company anticipates throughput volumes of 900,000-960,000 barrels per day.
PBF expects refining capital expenditure of $700-$750 million for 2023, with capital costs for the St. Bernard Renewables facility and related project infrastructure of $650-$700 million. This suggests an increase from the $995 million reported in 2022.
Phillips 66’s (PSX - Free Report) first-quarter 2023 adjusted earnings of $4.21 per share beat the Zacks Consensus Estimate of $3.58. Strong quarterly earnings can be primarily attributed to strong refining margins worldwide.
Phillips 66 is progressing toward its target to return $10-$12 billion in shareholder distributions by the end of 2024. This represents the company’s strong focus on returning capital to stockholders.
Marathon Petroleum Corporation’s (MPC - Free Report) first-quarter 2023 adjusted earnings per share of $6.09 comfortably beat the Zacks Consensus Estimate of $5.74. The company’s bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment.
In the first quarter, MPC repurchased $3.2 billion of shares and a further $1.2 billion worth of shares in April. The company, which gave an additional $5 billion share repurchase approval, currently has a remaining authorization of $9 billion.
Valero Energy Corporation’s (VLO - Free Report) first-quarter 2023 adjusted earnings of $8.27 per share beat the Zacks Consensus Estimate of $7.24. Strong quarterly earnings were driven by increased refinery throughput volumes and a higher refining margin per barrel of throughput.
Valero’s adjusted operating income in the Refining segment amounted to $4,067 million in the first quarter, improving from $1,469 million in the year-ago quarter. VLO’s refining throughput volumes were 2,930 thousand barrels per day (MBbls/d), up from the 2,800 MBbls/d reported in the first quarter of 2022.
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PBF Energy (PBF) Tops on Q1 Earnings, Reiterates Refining Capex
PBF Energy Inc. (PBF - Free Report) reported first-quarter 2023 earnings of $2.76 per share, beating the Zacks Consensus Estimate of earnings of $2.53. The bottom line improved from the year-ago profit of 35 cents per share.
Total quarterly revenues increased to $9,295 million from $9,142 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $8,870 million.
Strong quarterly results were primarily driven by a higher gross refining margin per barrel of throughput.
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 $525.7 million, significantly improving from $146.1 million a year ago.
The company generated a profit of $49.7 million from the Logistics segment, reflecting an increase from the prior-year quarter’s $46.4 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 851.2 thousand barrels per day (bpd), higher than the year-ago figure of 832.6 thousand bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 38.3%, 11%, 19.9% and 30.8%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $18.35, significantly higher than the year-earlier figure of $11.36.
The gross refining margin per barrel of throughput was $18.16 for the East Coast, up from $11.03 in the year-ago quarter. The realized refining margin was $19.96 per barrel for the Gulf Coast, up from $11.96. The metric was $20.70 and $9.49 per barrel in the West Coast and Mid-Continent compared with respective margins of $12.75 and $8.50 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $8,762.6 million, lower than $9,050.7 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 $8,718.6 million, lower than the $8,944.9 million reported a year ago.
Capital Expenditure & Balance Sheet
In the first quarter, PBF Energy spent $379.2 million in capital on refining operations and $2.7 million on logistics businesses.
At the first-quarter end, it had cash and cash equivalents of $1,616.1 million. As of Mar 31, PBF Energy had a total debt of $1,438 million, resulting in a total debt-to-capitalization of 21.4%.
Outlook
For the second quarter, the company anticipates throughput volumes of 900,000-960,000 barrels per day.
PBF expects refining capital expenditure of $700-$750 million for 2023, with capital costs for the St. Bernard Renewables facility and related project infrastructure of $650-$700 million. This suggests an increase from the $995 million reported in 2022.
Zacks Rank & Stocks to Consider
PBF Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Results of Other Downstream Companies
Phillips 66’s (PSX - Free Report) first-quarter 2023 adjusted earnings of $4.21 per share beat the Zacks Consensus Estimate of $3.58. Strong quarterly earnings can be primarily attributed to strong refining margins worldwide.
Phillips 66 is progressing toward its target to return $10-$12 billion in shareholder distributions by the end of 2024. This represents the company’s strong focus on returning capital to stockholders.
Marathon Petroleum Corporation’s (MPC - Free Report) first-quarter 2023 adjusted earnings per share of $6.09 comfortably beat the Zacks Consensus Estimate of $5.74. The company’s bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment.
In the first quarter, MPC repurchased $3.2 billion of shares and a further $1.2 billion worth of shares in April. The company, which gave an additional $5 billion share repurchase approval, currently has a remaining authorization of $9 billion.
Valero Energy Corporation’s (VLO - Free Report) first-quarter 2023 adjusted earnings of $8.27 per share beat the Zacks Consensus Estimate of $7.24. Strong quarterly earnings were driven by increased refinery throughput volumes and a higher refining margin per barrel of throughput.
Valero’s adjusted operating income in the Refining segment amounted to $4,067 million in the first quarter, improving from $1,469 million in the year-ago quarter. VLO’s refining throughput volumes were 2,930 thousand barrels per day (MBbls/d), up from the 2,800 MBbls/d reported in the first quarter of 2022.