Over the next two weeks, there will be a plethora of releases coming from refiners that investors are keeping an eye out for.
This week, earnings reports are expected from Valero Energy Corporation VLO on Tuesday, April 28, MRC Global Inc MRC on Thursday, April 30 and PBF Energy Inc PBF on Friday, May 1.
Cowen and Company noted that refiners should benefit from a 'robust crack spread environment' driven by widespread industry down times.
All three companies will benefit from strong margins, but Cowen warned "we are somewhat cautious on the refining space due to our expectation that a ramp back to 100% industry utilization is likely to compress crude differentials from current levels."
What Cowen sees for the three highlighted companies this week:
Valero:
- Estimating $1.80 EPS
- Expecting ~$500M cash build before impact from February's $1.3B note offering
- Expecting conference call to focus on cash
- Expecting updates on possible methanol partners currently being evaluated
MRC Global:
- Expecting "strong contribution from the acquired Hess assets"
- Expecting update on marketing benefits from allocation on Colonial pipeline
- Expecting update on Sandpiper pipeline project following EIA reports on Bakken production declines in March
PBF Energy:
- Expecting conference call to focus on growth opportunities outside of Delaware City rail terminal.
- Expecting market commentary on PBF's potential acquisition of an additional refinery
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