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PBF Energy (PBF) Jumps 52.1% Year to Date: More Room to Run?

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PBF Energy Inc.’s (PBF - Free Report) shares have jumped 52.1% year to date compared with the industry’s 13.6% rally. The Zacks Rank #3 (Hold) stock has witnessed upward estimate revisions for 2022 and 2023 earnings in the past seven days.

Zacks Investment Research
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Factors Favoring the Stock

With economies reopening as coronavirus cases have dropped considerably, global demand for fuel has recovered significantly. PBF Energy is well positioned to capitalize on mounting fuel demand since it is one of the leading independent petroleum refiners in North America. In the United States, PBF Energy is a well-known name for supplying heating oil, unbranded transportation fuels, lubricants, petrochemical feedstock and other petroleum products.

With a view of diversifying its income stream, PBF Energy is advancing the renewable fuels production project at a facility that is co-located at the Chalmette refinery. In the first half of next year, PBF is expecting to begin Chalmette renewable diesel production.

PBF Energy is also focused on strengthening the balance sheet. Last year, PBF successfully lowered consolidated debt load by more than $335 million. The consolidated cash balance at last year-end was a handsome $1.3 billion.

Stocks to Consider

Some better-ranked players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , EOG Resources (EOG - Free Report) and Chevron Corporation (CVX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ExxonMobil is banking on key upstream projects centered around Permian — the most prolific basin in the United States — and offshore Guyana resources.

ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past 30 days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.

For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cash flow at a West Texas Intermediate crude price of $80 per barrel. EOG Resources has also committed $1.7 billion in regular dividend payments.

With the employment of premium drilling, EOG Resources is reducing cash operating costs per barrel of oil equivalent, thereby aiding the bottom line.

In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cash flows for the company in the long run.

In the past seven days, Chevron has witnessed upward earnings estimate revisions for 2022.


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