Adjusted 2Q2020 EBITDA of $1.2 million slightly ahead of expectations due to lower opex, G&A expenses and other costs. TCE revenue was $4.54 million was slightly below our estimate, but the shortfall was more than offset by positive variances in opex of $0.09 million, G&A expense of $0.08 million, and other expenses of $0.7 million, or a total of $0.24 million.Moving 2020 EBITDA estimate to $5.9 million (from $6.2 million) based on TCE rates of $12,406/day (down from $13,064/day) to reflect 2Q2020 operating results, softer rates and the timing of dry dockings on the two small tankers. As of August 6th, 62% of available 3Q2020 days booked at an average MR2 gross TCE rate of $15,125/day.Theta refinancing pushes out debt maturity and adds liquidity. In July, debt of ~$11.1 million secured by the Theta was refinanced with new secured debt of $15.2 million due in 2025, which will add ~$4.1 million to liquidity in 3Q2020. In 2Q2020, total debt dropped $0.51 million to $57.51 million and cash/restricted cash dropped $0.47 million to $3.91 million so net debt dropped slightly to $53.60 million.Floating storage bid faded quickly, but outlook remains favorable. Floating storage ramped up in early 2Q2020, but OPEC production cuts curbed storage builds and floating storage demand quickly moderated with a shift to inventory destocking. Importantly, fundamentals remain attractive due to a shift in refining capacity and a limited order book (lowest since 2000).Maintain Outperform rating and price target of $1.75/share due to attractive risk/reward profile. We view PXS as an attractive small cap play in the refined product tanker market where intermediate term fundamentals are attractive to the limited order book. After a challenging 1Q2020 when it dropped 33% and a flat 2Q2020, PXS has slightly recovered by ~8% so far in 3Q2020. Nonetheless, the stock is still down ~28% for the year and remains an attractive small cap play in the potential turn in the refined product tanker market fundamentals.Read More >>