PBF’s stock performance after its 2Q16 results
In the earlier parts of this series, we analyzed PBF Energy’s (PBF) 2Q16 results. In this part, we’ll look at PBF’s stock performance after its earnings.
PBF Energy (PBF) announced its 2Q16 results on July 29 before the market opened. PBF opened at $21.96 per share, which was higher than the previous close of $21.79. PBF saw highs of $22.35 and lows of $20.57 during the day. Eventually, PBF closed at $22.34, around 2.5% higher than its previous day’s close.
On July 29, 2016, PBF’s peers Valero Energy (VLO), Tesoro (TSO), and Western Refining (WNR) rose by 0.79%, 0.49%, and 1.9%, respectively. Also, crude oil and natural gas prices rose by 1.1% and 0.1%, respectively. For global stock exposure, you could consider the Vanguard Total World Stock ETF (VT).
The word from PBF’s management
In its second quarter earnings press release, PBF’s management stated, “Looking forward, seasonal demand remains strong but inventory levels could continue to pressure refining margins in the third quarter. The crude market continues to be well-supplied and feedstock differentials are showing signs of improvement. Despite the recent market volatility, we are excited about the increased diversification of our system with the addition of Torrance. We have grown our business significantly over the past twelve months and increased the earnings potential of our company.”
In 2Q16, PBF Energy (PBF) completed the acquisition of the Torrance refinery. The deal is valued at $537.5 million plus working capital.