How has PBF’s stock performed?
Amid the industry volatility, PBF Energy’s (PBF) stock price rose in 2015. PBF’s stock gained 27% in the trailing 12 months to January 26, 2016. The company enjoyed the limelight in 2015. During the year, PBF Energy announced plans to acquire the Chalmette and Torrance refineries. Plus, PBF announced plans to raise funds via equity and senior secured notes. The series of events in October and November of 2015 led to a rise in PBF’s stock price. In fact, from October 1, 2015, to November 30, 2015, PBF’s stock surged by 29%.
However, PBF’s stock fell in December 2015. From December 1, 2015, to January 26, 2016, PBF’s stock lost 14%. This was on the back of the abolition of the crude oil export ban in the US, which raised fears of a fall in the refining margin of US refineries. During the same period, PBF’s peers Western Refining (WNR), HollyFrontier (HFC), and Phillips 66 (PSX) lost 30%, 31%, and 16%, respectively.
Comments from PBF management
PBF Energy (PBF) was on a buying spree in 2015. The company acquired Chalmette refinery and related logistics assets in November 2015. Plus, PBF signed an agreement to purchase the Torrance refinery from ExxonMobil (XOM). The acquisition is expected to close in 2Q16.
In the 3Q15 press release, PBF’s management commented, “At the end of the quarter, PBF announced that we have entered into an agreement to purchase ExxonMobil’s Torrance refinery in California. In conjunction with the previously announced Chalmette acquisition, the addition of these two assets will establish PBF Energy as the fourth largest independent refiner in North America with a presence in all of the U.S. coastal markets and the robust Mid-Continent market.”
For exposure to refining sector stocks, you could consider the iShares US Energy ETF (IYE), which has ~10% exposure to the sector.