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Air Products Closes Buyout of Five Hydrogen Plants for $530M
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Air Products and Chemicals, Inc. (APD - Free Report) announced that it closed the buyout of five steam methane reformer (“SMR”) hydrogen production plants for $530 million from PBF Energy Inc. (PBF). Notably, the deal was initially announced on Mar 30.
Per management, the deal showcases Air Products’ capability to pursue its policy of investing in long-term onsite transactions such as the acquisition of five SMRs hydrogen production plants that it completed.
The company has also started the long-term supply of hydrogen from five SMR hydrogen production plants to refineries of PBF Energy.
The SMRs, located in Torrance and Martinez, CA, and Delaware City, DE, have an approximate combined production capacity of 300 million standard cubic feet per day. Reportedly, the SMR being purchased in Delaware City marks Air Products' first major asset operating in the state of Delaware.
Presently, the company operates 12 industrial gas facilities in California, which includes five hydrogen production plants. Such plants use hydrogen to produce ultra-low sulfur transport fuels (gasoline, petrol and jet). Also, the company supplies hydrogen for fueling infrastructure in California to support the increasing fleet of hydrogen fuel-cell electric vehicles.
Air Products is recognized as a leading supplier of hydrogen to refineries to make cleaner burning transportation fuels. Also, the company operates one of the world’s most successful carbon capture projects in Port Arthur, TX, where it captured roughly 10 million tons of carbon dioxide that has been put to beneficial use.
Air Products’ shares have gained 5.4% in the past year against the industry’s decline of 39.9%.
For fiscal 2020, the company expects adjusted earnings of $9.35-$9.60 per share, which suggests growth of 14-17% from the year-ago reported figure.
It also expects adjusted earnings of $2.10-$2.20 per share for second-quarter fiscal 2020, implying a 9-15% year-over-year rise.
Air Products and Chemicals, Inc. Price and Consensus
Air Products currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 96.9% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 79.8% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 51% for 2020. The company’s shares have gained 93.8% in a year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Air Products Closes Buyout of Five Hydrogen Plants for $530M
Air Products and Chemicals, Inc. (APD - Free Report) announced that it closed the buyout of five steam methane reformer (“SMR”) hydrogen production plants for $530 million from PBF Energy Inc. (PBF). Notably, the deal was initially announced on Mar 30.
Per management, the deal showcases Air Products’ capability to pursue its policy of investing in long-term onsite transactions such as the acquisition of five SMRs hydrogen production plants that it completed.
The company has also started the long-term supply of hydrogen from five SMR hydrogen production plants to refineries of PBF Energy.
The SMRs, located in Torrance and Martinez, CA, and Delaware City, DE, have an approximate combined production capacity of 300 million standard cubic feet per day. Reportedly, the SMR being purchased in Delaware City marks Air Products' first major asset operating in the state of Delaware.
Presently, the company operates 12 industrial gas facilities in California, which includes five hydrogen production plants. Such plants use hydrogen to produce ultra-low sulfur transport fuels (gasoline, petrol and jet). Also, the company supplies hydrogen for fueling infrastructure in California to support the increasing fleet of hydrogen fuel-cell electric vehicles.
Air Products is recognized as a leading supplier of hydrogen to refineries to make cleaner burning transportation fuels. Also, the company operates one of the world’s most successful carbon capture projects in Port Arthur, TX, where it captured roughly 10 million tons of carbon dioxide that has been put to beneficial use.
Air Products’ shares have gained 5.4% in the past year against the industry’s decline of 39.9%.
For fiscal 2020, the company expects adjusted earnings of $9.35-$9.60 per share, which suggests growth of 14-17% from the year-ago reported figure.
It also expects adjusted earnings of $2.10-$2.20 per share for second-quarter fiscal 2020, implying a 9-15% year-over-year rise.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 96.9% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 79.8% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 51% for 2020. The company’s shares have gained 93.8% in a year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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