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PBF Energy (PBF) Q3 Earnings Beat, Revenues Decline Y/Y
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PBF Energy Inc. (PBF - Free Report) reported third-quarter 2023 earnings of $6.61 per share, beating the Zacks Consensus Estimate of earnings of $4.86. However, the bottom line declined from the year-ago profit of $7.96 per share.
Total quarterly revenues declined to $10,733.5 million from $12,764.6 million in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $9,837 million.
Better-than-expected quarterly results were primarily driven by lower costs and expenses. The positives were partially offset by declining crude oil and feedstock throughput volumes and a lower gross refining margin per barrel of throughput.
PBF Energy’s operating income from the Refining segment was $1,175.7 million, declining from $1,522.9 million a year ago.
The company generated a profit of $49.6 million from the Logistics segment, reflecting an increase from the prior-year quarter’s $44.7 million and our estimate of $44.9 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 939.7 thousand barrels per day (bpd), lower than the year-ago figure of 984.7 thousand bpd. The metric also missed our estimate of 970.7 bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 34%, 16.2%, 19.6% and 30.2%, respectively, of the total oil and feedstock throughput volume.
Margins:
The company-wide gross refining margin per barrel of throughput, excluding special items, was $14.20, lower than the year-earlier figure of $17.36.
The gross refining margin per barrel of throughput was $17.51 for the East Coast, down from $20.78 in the year-ago quarter. The realized refining margin was $18.03 per barrel for the Gulf Coast, down from $20.25. The metric was $32.85 and $17.46 per barrel in the West Coast and Mid-Continent compared with respective margins of $33.02 and $23.21 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $9,656.4 million, lower than $11,364.6 million in the year-ago period. The metric is above our projection of $7,994.8 million.
Cost of sales, which includes operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $9,505.7 million, lower than the $11,191.4 million reported a year ago. The metric is above our projection of $7,843.
Capital Expenditure & Balance Sheet
In the third quarter, PBF Energy spent $183.7 million in capital on refining operations, below our estimates of $336.2 million. The company spent $3.4 million on logistics businesses, beating our estimates of $2.4 million.
At the third-quarter end, it had cash and cash equivalents of $1,892.5 million. As of Sep 30, PBF Energy had a total debt of $1,243 million, resulting in a total debt-to-capitalization of 15%.
Outlook
For the fourth quarter, PBF anticipates throughput volumes of 870,000-930,000 barrels per day. PBF Energy expects refining capital expenditure (excluding capital expenditures related to SBR) of $800-$850 million for 2023.
Zacks Rank & Other Stocks to Consider
PBF Energy currently sports a Zacks Rank #1 (Strong Buy).
Antero Midstream Corporation (AM - Free Report) reported third-quarter 2023 adjusted earnings per share of 23 cents, which beat the Zacks Consensus Estimate of 21 cents. Such strong quarterly results were primarily driven by higher compression, gathering and freshwater delivery volumes, and increased average freshwater distribution fees.
For 2023, Antero Midstream increased its adjusted EBITDA projection to $970-$990 million, indicating an increase of $10 million at the mid-point of the prior guidance.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.
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PBF Energy (PBF) Q3 Earnings Beat, Revenues Decline Y/Y
PBF Energy Inc. (PBF - Free Report) reported third-quarter 2023 earnings of $6.61 per share, beating the Zacks Consensus Estimate of earnings of $4.86. However, the bottom line declined from the year-ago profit of $7.96 per share.
Total quarterly revenues declined to $10,733.5 million from $12,764.6 million in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $9,837 million.
Better-than-expected quarterly results were primarily driven by lower costs and expenses. The positives were partially offset by declining crude oil and feedstock throughput volumes and a lower 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 $1,175.7 million, declining from $1,522.9 million a year ago.
The company generated a profit of $49.6 million from the Logistics segment, reflecting an increase from the prior-year quarter’s $44.7 million and our estimate of $44.9 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 939.7 thousand barrels per day (bpd), lower than the year-ago figure of 984.7 thousand bpd. The metric also missed our estimate of 970.7 bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 34%, 16.2%, 19.6% and 30.2%, respectively, of the total oil and feedstock throughput volume.
Margins:
The company-wide gross refining margin per barrel of throughput, excluding special items, was $14.20, lower than the year-earlier figure of $17.36.
The gross refining margin per barrel of throughput was $17.51 for the East Coast, down from $20.78 in the year-ago quarter. The realized refining margin was $18.03 per barrel for the Gulf Coast, down from $20.25. The metric was $32.85 and $17.46 per barrel in the West Coast and Mid-Continent compared with respective margins of $33.02 and $23.21 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $9,656.4 million, lower than $11,364.6 million in the year-ago period. The metric is above our projection of $7,994.8 million.
Cost of sales, which includes operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $9,505.7 million, lower than the $11,191.4 million reported a year ago. The metric is above our projection of $7,843.
Capital Expenditure & Balance Sheet
In the third quarter, PBF Energy spent $183.7 million in capital on refining operations, below our estimates of $336.2 million. The company spent $3.4 million on logistics businesses, beating our estimates of $2.4 million.
At the third-quarter end, it had cash and cash equivalents of $1,892.5 million. As of Sep 30, PBF Energy had a total debt of $1,243 million, resulting in a total debt-to-capitalization of 15%.
Outlook
For the fourth quarter, PBF anticipates throughput volumes of 870,000-930,000 barrels per day. PBF Energy expects refining capital expenditure (excluding capital expenditures related to SBR) of $800-$850 million for 2023.
Zacks Rank & Other Stocks to Consider
PBF Energy currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that also presently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Midstream Corporation (AM - Free Report) reported third-quarter 2023 adjusted earnings per share of 23 cents, which beat the Zacks Consensus Estimate of 21 cents. Such strong quarterly results were primarily driven by higher compression, gathering and freshwater delivery volumes, and increased average freshwater distribution fees.
For 2023, Antero Midstream increased its adjusted EBITDA projection to $970-$990 million, indicating an increase of $10 million at the mid-point of the prior guidance.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.