PBF

PBF Energy Inc

Energy


Presented:01/14/2016
Price:$34.92
Cap:$3.20B
Current Price:$31.48
Cap:$3.69B

Presented

Date01/14/2016
Price$34.92
Market Cap$3.20B
Ent Value$3.93B
P/E RatioN/A
Book Value$16.87
Div Yield3.44%
Shares O/S91.50M
Ave Daily Vol1,896,071
Short Int8.30%

Current

Price$31.48
Market Cap$3.69B
PBF Energy, Inc. operates as a petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The company owns and operates oil refineries and related assets through its subsidiaries in New Jersey, Delaware and Ohio. It produces a variety of products at each of its refineries, including gasoline, ULSD, heating oil, jet fuel, lubricants, petrochemicals and asphalt. The company operates its business through two segments: Refining and Logistics. PBF Energy was founded on March 1, 2008 and is headquartered in Parsippany, NJ.

Publicly traded companies mentioned herein: Exxon Mobil Corporation (XOM), Marathon Petroleum Corporation (MPC), PBF Energy Inc (PBF), PBF Logistics LP (PBFX)

Highlights

The presenter is short shares of PBF Energy (PBF), a $3.3 billion market cap East Coast refiner that has been growing via acquisitions. PBF also has a $700 million market cap MLP associated with it: PBF Logistics (PBFX). The crux of the thesis relates to the reversal of the WTI/ Brent Crude spread tailwind, and the headwind it creates at a time when barrels of oil could become harder to source (due to depressed prices). If his thesis proves to be accurate, PBF’s earnings results are likely to disappoint the Street, and with the stock trading at ~$34 there is meaningful downside risk.

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Idea Discussion

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