- PBF Energy was heavily impacted and beaten-down by the severe Covid-19 economic downturn but thankfully it appears that the recovery has finally arrived.
- After seeing continuous negative free cash flow since the beginning of 2020, it finally turned positive during the third quarter of 2021.
- Even more importantly, this marks the third consecutive quarter-on-quarter improvement to their underlying operating cash flow that excludes temporary working capital movements.
- This will help them deleverage within as little as three years even if the recovery ceases improving, which paves the way for their previous dividends to be reinstated.
- Given their massive double-digit free cash flow yield and bright outlook for deleveraging, I believe that maintaining my bullish rating is appropriate.
For further details see:
PBF Energy: Recovery Has Finally Arrived With Bright Outlook