We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PBF Energy (PBF) Q2 Earnings Miss on Lower Refining Margins
Read MoreHide Full Article
PBF Energy Inc. (PBF - Free Report) reported second-quarter 2024 adjusted loss of 54 cents per share, wider than the Zacks Consensus Estimate of a loss of 25 cents. The bottom line also declined from the year-ago quarter’s reported earnings of $2.29.
Total quarterly revenues declined to $8.74 billion from $9.16 billion in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $8.72 billion.
The weak quarterly earnings were primarily due to lower throughput volumes, a fall in refining margins, and higher total costs and expenses. The company also conducted extensive maintenance activity in the East, Mid-continent and West Coast regions, which affected earnings.
PBF Energy reported an operating loss of $46.9 million in the Refining segment against an operating income of $455.6 million reported a year ago. The figure also lagged our operating income estimate of $498 million.
The company generated a profit of $51 million from the Logistics segment, indicating a marginal decline from the prior-year quarter’s reported level of $51.9 million. Our estimate for the same was pinned at $50.6 million.
Throughput Analysis
Volumes
In the quarter under review, crude oil and feedstock throughput volumes totaled 921.3 thousand barrels per day (bpd), lower than the year-ago figure of 935.8 thousand bpd. The figure surpassed our estimate of 911.8 bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 35%, 15%, 18% and 32%, respectively, of the total oil and feedstock throughput volume.
Margins
The company-wide gross refining margin per barrel of throughput, excluding special items, was $8.12, lower than the year-earlier figure of $13.62.
The gross refining margin per barrel of throughput was $2.52 for the East Coast, down from $8.09 in the year-ago quarter. The realized refining margin was $8.66 per barrel for the Gulf Coast, down from $12.54 a year ago. The metric was $9.50 and $13.21 per barrel in the Mid-Continent and West Coast, respectively, compared with the corresponding figures of $14.30 and $19.41 a year ago.
Costs & Expenses
Total costs and expenses in the reported quarter were $8.8 billion, up from $7.8 billion in the year-ago period.
Cost of sales, including operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $8.73 billion, higher than $8.65 billion reported a year ago.
Capital Expenditure & Balance Sheet
PBF Energy spent $330.3 million in capital on refining operations. It also spent $0.6 million on logistics businesses.
At the end of the second quarter, it had cash and cash equivalents of $1.4 billion. As of Jun 30, PBF had a total debt of $1.25 billion, resulting in a total debt-to-capitalization of 16%.
Outlook
For the third quarter, PBF anticipates total throughput volumes to be in the range of 885,000-945,000 barrels per day. It expects full-year 2024 refining capital expenditures to be in the $850 million range.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PBF Energy (PBF) Q2 Earnings Miss on Lower Refining Margins
PBF Energy Inc. (PBF - Free Report) reported second-quarter 2024 adjusted loss of 54 cents per share, wider than the Zacks Consensus Estimate of a loss of 25 cents. The bottom line also declined from the year-ago quarter’s reported earnings of $2.29.
Total quarterly revenues declined to $8.74 billion from $9.16 billion in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $8.72 billion.
The weak quarterly earnings were primarily due to lower throughput volumes, a fall in refining margins, and higher total costs and expenses. The company also conducted extensive maintenance activity in the East, Mid-continent and West Coast regions, which affected earnings.
PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote
Segmental Performance
PBF Energy reported an operating loss of $46.9 million in the Refining segment against an operating income of $455.6 million reported a year ago. The figure also lagged our operating income estimate of $498 million.
The company generated a profit of $51 million from the Logistics segment, indicating a marginal decline from the prior-year quarter’s reported level of $51.9 million. Our estimate for the same was pinned at $50.6 million.
Throughput Analysis
Volumes
In the quarter under review, crude oil and feedstock throughput volumes totaled 921.3 thousand barrels per day (bpd), lower than the year-ago figure of 935.8 thousand bpd. The figure surpassed our estimate of 911.8 bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 35%, 15%, 18% and 32%, respectively, of the total oil and feedstock throughput volume.
Margins
The company-wide gross refining margin per barrel of throughput, excluding special items, was $8.12, lower than the year-earlier figure of $13.62.
The gross refining margin per barrel of throughput was $2.52 for the East Coast, down from $8.09 in the year-ago quarter. The realized refining margin was $8.66 per barrel for the Gulf Coast, down from $12.54 a year ago. The metric was $9.50 and $13.21 per barrel in the Mid-Continent and West Coast, respectively, compared with the corresponding figures of $14.30 and $19.41 a year ago.
Costs & Expenses
Total costs and expenses in the reported quarter were $8.8 billion, up from $7.8 billion in the year-ago period.
Cost of sales, including operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $8.73 billion, higher than $8.65 billion reported a year ago.
Capital Expenditure & Balance Sheet
PBF Energy spent $330.3 million in capital on refining operations. It also spent $0.6 million on logistics businesses.
At the end of the second quarter, it had cash and cash equivalents of $1.4 billion. As of Jun 30, PBF had a total debt of $1.25 billion, resulting in a total debt-to-capitalization of 16%.
Outlook
For the third quarter, PBF anticipates total throughput volumes to be in the range of 885,000-945,000 barrels per day. It expects full-year 2024 refining capital expenditures to be in the $850 million range.
Zacks Rank and Key Picks
Currently, PBF carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , VAALCO Energy (EGY - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.