Trade Insider
by trader on November 6, 2016

PBF Energy Inc. (NYSE:PBF) plans to increase product exports in the upcoming months to help reduce its exposure

PBF Energy Inc. (NYSE:PBF) plans to increase product exports in the upcoming months to help reduce its exposure to the rising costs of meeting U.S. renewable fuel standards, its chief executive officer said during an earnings call on Friday.

PBF Energy said it spent $252 million to meet the renewable fuel standards during the first nine months of the year, more than the $171.6 million spent all of last year.

Under the standards, U.S. refiners or importers must blend biofuels like ethanol into their fuel pool or purchase renewable fuel credits, known as RINs, which have dramatically risen in price this year.

Its not something we typically do, but we have to explore these options to avoid RINs costs, CEO Tom Nimbley said.

Exports are not subjects to U.S. fuel standards, and Nimbley said they exported 30,000 barrels per day of products in the third quarter, all from its refinery in Chalmette, Louisiana.

The company has also delayed smaller capital projects across its refineries due to weak margins and higher renewable fuel costs, Nimbley said.

PBF Energy Equity Analysis

PBF Energy Inc. (NYSE:PBF) opened trading today as $23.16 and is trading in the range of 22.24-24.61 today. PBF Energy’s current market cap stands at $2.38 billion.

PBF Energy is currently covered by 16 Wall Street analysts.  The mean target price is $26.46 according to First Call.  This presents a solid upside to the current price of the equity.  The Mean Recommendation sits at 2.7 which is based on 2 Strong Buy, 4 Buy and 8 Hold ratings.

The most recent analyst actions consisted of Tudor Pickering upgrading the stock on November 1st and Scotia Howard Weil initiating coverage with a downgrade rating back in October.

The current quarter EPS consensus estimate is -0.08 with revenue estimates of 4.44B.  Sales are expected to grow at a 32.00% rate.  PBF Energy reported actual earnings last quarter of -0.16 which fails to beat the -0.02 consensus estimate, a -700.00% surprise.

Corporate Profile

PBF Energy Inc., together with its subsidiaries, engages in the refining and supply of petroleum products. It produces gasoline, ultra-low-sulfur diesel, heating oil, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, heating oil, petrochemical feedstocks, and other petroleum products. The company sells its products in Northeast and Midwest of the United States, as well as in other regions of the United States and Canada. PBF Energy Inc. is based in Parsippany, New Jersey.

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