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PBF Energy Inc. (PBF)

NYSE - NYSE Delayed Price. Currency in USD
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30.10+0.04 (+0.13%)
At close: 04:00PM EDT
31.44 +1.34 (+4.45%)
Pre-Market: 07:57AM EDT

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  • B
    Bayou
    How is this possible?
  • F
    Fritz1967
    $VLO conversation
    * Valero Energy Corp : BofA Global Research raises price objective to $155 from $150
    * Valero Energy Corp : Credit Suisse raises target price to $148 from $145
    * Valero Energy Corp : JP Morgan raises target price to $148 from $145
    * Valero Energy Corp : RBC raises target price to $143 from $141

    * PBF Energy Inc : JP Morgan raises target price to $43 from $39

    #pbf, #dino, #mpc, #psx
  • M
    MarkT
    Finally, the market seems to be doing what the smart money had figured it would do-- give PBF some credit for having a balance sheet that is $10 per share better this quarter than last quarter.

    If you start to dig through the numbers-- that the reason our gross margin was $30/barrel and not $60 was that 17-19% of our products were NOT gasoline and distillate-- and that those other products were sold at a *loss* relative to the price of oil, you start to realize that Q3 may be just as strong as Q2, and there may be a little more sustainability to refiner pricing.
  • C
    CNBC Depumper
    The market makers are going to have to capitulate and buy the refiners. They can't hold down every single refiner that is going to report blowout earnings.
  • S
    Sandor Clegane
    As I said, blowout earnings. But without dividend I think the range will be $30-35. Buy below, sell above.
  • C
    CNBC Depumper
    Buy all the refiners for their earnings this quarter, it's clear that the refiners are the most undervalued for this oil cycle that we are in. These refiners are so insanely cheap if oil prices stay high for another year.
  • r
    richard
    The 321 spread is still ,and has been during the 3 rd quarter about40.00. Earnings for third quarter will be outstanding again !
  • E
    Elizabeth
    Success depends on the action or step you take to achieve it. Show me a man who has no investment and I'll tell you how soon he'll be broke. Investment is to build a safe paradise for the future
  • B
    Bayou
    Why are we dropping? Makes no sense
  • S
    Sandor Clegane
    Oil and oil stocks are in a bear market. Oil just closed at a 6 month low. Hard to be excited for a stock like PBF that even in the best market conditions did not reinstate the dividend. Fortunately I sold half my position yesterday just above $34. Moody's may soon review PBF's ratings - that's the good news we can hope for at this point. Still the fundamentals are strong for refiners so if they get carried away again to the downside, I'll buy again.
  • M
    MarkT
    NIMBLEY: (rough quote) "If we have above-mid-cycle margins, some of the things on the table *down the road* [some emphasis] are resuming the dividend and buying back equity."

    "We understand that we work for shareholders"

    2nd or 3rd Question, probably 25:00-30:00.

    CFO Erik Young talking about increasing cash on balance sheet and reducing net debt, but not necessarily buying it back at expensive prices at this point.
  • r
    richard
    Latest earnings revisions is over 6.50 this and 3.50 next 13..00 for the year !
  • J
    Juliyana
    go go
  • J
    JD
    -1% / minute
    Jesus this is brutal
  • k
    khaled
    Thank you PBF see you next time 😁👍
  • B
    Bayou
    This is unbelievable! I’ve seen it all now!
  • M
    MarkT
    10Q COMMENTS

    Going through the 10Q, it looks like PBF sold gasoline plus distillate for $172/barrel for Q2, which is roughly in line with a $60 3-2-1 crack spread.

    However, these realizations were diluted by 17% of products going to lubricants, asphalt, feedstock, and chemicals for a realization of roughly $100/barrel. Effectively, these barrels were refined at a loss relative to raw crude.

    It's important to remember that not every gallon coming out of a barrel can go into diesel, jet fuel, and gasoline. BUT we were able to get an 83% gasoline/distillate (diesel/jet fuel) yield out of it.

    You take all of this together and PBF's crack spread was $30 for Q2. Which is still enough for an awesome quarter. Take out operating costs, and our net refining margin is $23/barrel.

    Part of me hopes that pricing in lubricants and chemicals will be stickier and won't necessarily track crude. If that is the case, the reduction in crude prices so far for Q3 may provide a little bit of a tailwind in the face of the moderate compression in the 3-2-1.
  • M
    MarkT
    Earnings tomorrow should be interesting. I think the key question is whether we get a timeline or plan for return of capital.

    Obviously the CFO has been pretty darned busy this quarter between paying down debt and talk about a repurchase of PBFX.

    These are all necessary things that investors ought to support. But there's also a give and take. Once we've been sufficiently responsible with the cashflows, surplus cashflows ought to be going back to shareholders.

    I'm willing to have a conversation about uprating our facilities to handle more North American crude blends if the CAPEX is relatively reasonable. More global refining capacity is coming online, but we have a huge location advantage in North America. However, the only way we can take advantage of that is having more flexibility. It's my understanding that some of the Gulf Coast refineries have higher-grade metals and parts which allow them to process everything from Venezuelan heavy crude to Canadian tar sands. While uprating an entire refinery sounds very expensive, there might be a project or two to give some of our properties some more flexibility. IRR needs to be above 40% and I want a focus on more modular short-cycle projects without a lot of operational or engineering risk. You can have a long-term outlook, but the projects need to be staged and deliver cashflow wins as each step is completed.

    But beyond that, I want 60-75% of FCF going back to investors.

    We'll support some capex to keep the assets relevant. But you have to take care of the shareholders. Let's find a middle-ground and only support the *best* and the most critical projects.
  • C
    CNBC Depumper
    We paid down $2.2 billion in debt, we got $2.1 billion in cash now, we increased our equity value of the stock to $3.1 billion. What a quarter, this company crushed it and is going to go to the moon soon.
  • J
    Joker
    Going to $20 next week