PSX - PBF Energy: Time May Be Running Out
2023-04-06 07:58:26 ET
Summary
- PBF Energy enjoyed a spectacular 2022 and 2023 as crack spreads have remained high, leading to terrific operating margins.
- PBF relies solely on its refineries for income. If crack spreads were to drop in the future, as predicted by the EIA, the good times will come to an end.
- Purchasing units when crack rates are high exposes investors to capital losses when rates decrease. With a lack of meaningful cash returns to investors, this could be significant.
- Larger competitors like Phillips 66, Valero, or Marathon provide a better risk vs. reward in the refinery space.
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PBF Energy: Time May Be Running Out