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PBF Energy's (PBF) Earnings Beat Estimates in Q4, Fall Y/Y
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PBF Energy Inc. (PBF - Free Report) reported fourth-quarter 2019 earnings of 60 cents a share, beating the Zacks Consensus Estimate of 50 cents but deteriorating from the year-ago quarter’s $1.03.
Total revenues increased to $6,301.5 million from $6,292.9 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $5,887 million.
The better-than-expected results were aided by higher refining margin per barrel in the Gulf and West Coasts, and lower costs and expenses. The positives were partially offset by decline in realized refining margin per barrel of throughput in the East Coast and Mid-Continent.
On Feb 1, 2020, the company closed the 157,000-barrel per day Martinez refinery acquisition, which increased total throughput capacity to more than 1 million barrels a day. It is currently the most complex refiner with 12.8 Nelson Complexity.
Segmental Performance
Operating income at the Refining segment was $184.9 million, significantly improving from a loss of $397.7 million a year ago.
The company generated profit of $42.9 million from the Logistics segment, which reflects an improvement from the prior-year quarter’s $38.6 million.
Costs & Expenses
Total costs and expenses in the reported quarter were $6,178.6 million, lower than $6,739.1 million in the year-ago period. Cost of sales — which includes operating expenses, cost of products and others — amounted to $6,066.3 million, lower than the year-ago level of $6,650.8 million.
Throughput Volumes
In the quarter under review, crude oil and feedstocks throughput volumes were 843 thousand barrels per day, flat year over year.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for roughly 42.3%, 17.8%, 19.9% and 20%, respectively, of the total oil and feedstock throughput volume.
Throughput Margins
Company-wide gross refining margin per barrel of throughput — excluding special items — was recorded at $9.31, lower than the year-earlier quarter’s $10.00.
Refining margin per barrel of throughput was $8.16 in the East Coast, down from $8.55 in the year-earlier quarter. Realized refining margin was $6.05 per barrel in the Gulf Coast, up from $5.83 in the prior-year quarter. The metric was $14.85 per barrel in the West Coast, up from $10.57 a year ago. Also, the metric was $9.42 a barrel in the Mid-Continent, much lower than $17.76 a year ago.
Refinery operating expense per barrel of throughput was $5.28, lower than $5.56 in the year-ago quarter.
Capital Expenditure & Balance Sheet
Through the fourth quarter, the company spent $108.7 million capital on refining operations and $8.5 million on logistics businesses.
At the end of the quarter, it had cash and cash equivalents of $814.9 million, along with total debt of $2,064.9 million, with the debt-to-capitalization ratio being 37%.
Guidance
PBF Energy projects total daily throughput volumes for the March quarter of 2020 from the East Coast in the range of 345,000-365,000 barrels, while the same from the Mid-Continent is anticipated in the band of 95,000-105,000 barrels. Total daily throughput volumes at the Gulf Coast are expected in the range of 165,000-175,000 barrels, while the same from the West Coast is anticipated within 260,000-280,000 barrels.
Denbury Resources’ earnings per share estimates of 30 cents for 2020 have been unchanged over past seven days.
Chevron’s bottom line for 2020 is expected to rise 12.8% year over year.
Hess’ bottom line for 2020 is expected to rise 93.7% year over year.
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PBF Energy's (PBF) Earnings Beat Estimates in Q4, Fall Y/Y
PBF Energy Inc. (PBF - Free Report) reported fourth-quarter 2019 earnings of 60 cents a share, beating the Zacks Consensus Estimate of 50 cents but deteriorating from the year-ago quarter’s $1.03.
Total revenues increased to $6,301.5 million from $6,292.9 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $5,887 million.
The better-than-expected results were aided by higher refining margin per barrel in the Gulf and West Coasts, and lower costs and expenses. The positives were partially offset by decline in realized refining margin per barrel of throughput in the East Coast and Mid-Continent.
PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote
On Feb 1, 2020, the company closed the 157,000-barrel per day Martinez refinery acquisition, which increased total throughput capacity to more than 1 million barrels a day. It is currently the most complex refiner with 12.8 Nelson Complexity.
Segmental Performance
Operating income at the Refining segment was $184.9 million, significantly improving from a loss of $397.7 million a year ago.
The company generated profit of $42.9 million from the Logistics segment, which reflects an improvement from the prior-year quarter’s $38.6 million.
Costs & Expenses
Total costs and expenses in the reported quarter were $6,178.6 million, lower than $6,739.1 million in the year-ago period. Cost of sales — which includes operating expenses, cost of products and others — amounted to $6,066.3 million, lower than the year-ago level of $6,650.8 million.
Throughput Volumes
In the quarter under review, crude oil and feedstocks throughput volumes were 843 thousand barrels per day, flat year over year.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for roughly 42.3%, 17.8%, 19.9% and 20%, respectively, of the total oil and feedstock throughput volume.
Throughput Margins
Company-wide gross refining margin per barrel of throughput — excluding special items — was recorded at $9.31, lower than the year-earlier quarter’s $10.00.
Refining margin per barrel of throughput was $8.16 in the East Coast, down from $8.55 in the year-earlier quarter. Realized refining margin was $6.05 per barrel in the Gulf Coast, up from $5.83 in the prior-year quarter. The metric was $14.85 per barrel in the West Coast, up from $10.57 a year ago. Also, the metric was $9.42 a barrel in the Mid-Continent, much lower than $17.76 a year ago.
Refinery operating expense per barrel of throughput was $5.28, lower than $5.56 in the year-ago quarter.
Capital Expenditure & Balance Sheet
Through the fourth quarter, the company spent $108.7 million capital on refining operations and $8.5 million on logistics businesses.
At the end of the quarter, it had cash and cash equivalents of $814.9 million, along with total debt of $2,064.9 million, with the debt-to-capitalization ratio being 37%.
Guidance
PBF Energy projects total daily throughput volumes for the March quarter of 2020 from the East Coast in the range of 345,000-365,000 barrels, while the same from the Mid-Continent is anticipated in the band of 95,000-105,000 barrels. Total daily throughput volumes at the Gulf Coast are expected in the range of 165,000-175,000 barrels, while the same from the West Coast is anticipated within 260,000-280,000 barrels.
Zacks Rank & Stocks to Consider
PBF Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector include Denbury Resources Inc. , Chevron Corporation (CVX - Free Report) and Hess Corporation (HES - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Denbury Resources’ earnings per share estimates of 30 cents for 2020 have been unchanged over past seven days.
Chevron’s bottom line for 2020 is expected to rise 12.8% year over year.
Hess’ bottom line for 2020 is expected to rise 93.7% year over year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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