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PBF Energy (PBF) reported Q2 adjusted earnings Thursday of $6.22 per diluted share, swinging from a loss of $1.03 a year earlier.Analysts surveyed by FactSet expected $4.15.Revenue for the quarter ended June 30 was $11.68 billion, up from $7.48 billion a year earlier.Analysts expected $9.61 billion.The company maintained its quarterly dividend at $0.275 per share, payable on Aug. 28 to shareholders of record on Aug. 14.
Refining stocks gave back recent gains after crude oil jumped about $13 per barrel on renewed Middle East tensions, ahead of Q2 earnings this week, according to TPH Energy Research in a Monday note.Refining shares fell 1.1% last week, compared with a 0.6% decline for the S&P 500. Par Pacific (PARR) gained 1.5% to lead the group, while CVR Energy (CVI) dropped 4.8%, the steepest decline, according to TPH strategist Matthew Blair.Singapore gasoline and diesel cracks each climbed $11/bbl, supporting Par Pacific. In the US, gasoline cracks fell by $3 to $38/bbl, while diesel cracks rose $1 to $66/bbl, with both holding five-year highs.The US West Coast posted the only weekly regional improvement as stronger gasoline and diesel margins supported refining economics.Northwest Europe margins weakened as gasoline cracks fell $9/bbl and diesel cracks dropped $3/bbl after the dated Brent premium over front-month Brent widened.Crude price spreads also widened sharply. Brent's premium over Western Canadian Select at Hardisty increased $5 to $25/bbl, while the Brent-Alaska North Slope spread widened $4 to $13/bbl.The note also highlighted several market developments, including China's June 2026 crude imports falling to a near-decade low, Russia considering a longer gasoline and diesel export ban, low Rhine River water levels and HF Sinclair (DINO) suing the Environmental Protection Agency over delayed small refinery exemption decisions.Q2 earnings season starts this week with results from HF Sinclair, PBF Energy (PBF), Valero Energy (VLO) and CVR Energy (CVI).Price: $77.86, Change: $+0.47, Percent Change: +0.61%
Renewed US-Iran tensions pushed refining stocks up 13.1% last week as diesel and gasoline crack spreads climbed to fresh five-year highs, TPH Energy said in a Monday note.Refining shares outperformed the S&P 500's 1.6% decline after the US resumed its blockade and struck an Iranian supertanker, TPH Energy said. PBF Energy (PBF) gained 18.0%, while Phillips 66 (PSX) rose 9.8%.US diesel crack spreads jumped $12 to $65 per barrel, far above the five-year average of about $23/bbl, while gasoline cracks added $2 to $41/bbl, exceeding the $18/bbl five-year average, the note said.The West Coast posted the greatest improvement among US refining regions, while the Midwest lagged. Meanwhile, the 2026 6-3-2-1 refining futures curve advanced $3 to $21/bbl, its highest level this year, according to the note.Outside the US, diesel crack spreads climbed $12/bbl in Northwest Europe and $15/bbl in Singapore, extending both markets to fresh five-year highs, the report said.Among other developments, the note said Argus expects Group II base oil margins to improve in July as feedstock costs ease, while Iran said 200 ships have requested Strait of Hormuz permits since June.BP (BP) lifted its second-quarter refining margin to $29.60/bbl from $16.90 in the prior quarter, while US retail diesel prices topped $5 per gallon and the strategic petroleum reserve fell to its lowest level since 1983, according to the note.
Energy stocks were higher late Friday afternoon, with the NYSE Energy Sector Index rising 1.3% and the State Street Energy Select Sector SPDR ETF (XLE) increasing 0.9%.The Philadelphia Oil Service Sector Index was up 0.1%, and the Dow Jones US Utilities Index was shedding 0.7%.Crude oil prices jumped amid Washington intensifying strikes against Iran. US Central Command said in a post on X that it completed the sixth consecutive wave of attacks against Iran, degrading the nation's military capabilities and holding it "accountable" for recent attacks on commercial shipping in the Strait of Hormuz. President Donald Trump has threatened to launch broad-based air strikes on Iranian infrastructure and has also declined to rule out a ground assault on Iran's coast or islands, Reuters reported.Front-month West Texas Intermediate crude oil jumped 4% to $82.12 a barrel, and the global benchmark Brent crude contract climbed 4.2% to $87.77 a barrel. Henry Hub natural gas futures rose 2% to $2.92 per 1 million BTU.In sector news, incoming UK Prime Minister Andy Burnham is preparing to announce support for new North Sea oil and gas drilling and plans to bring Thames Water under public control shortly after taking office, Bloomberg reported. Burnham, who is due to succeed Keir Starmer on Monday, has asked civil servants to prepare energy and water policy proposals that could be announced as early as next week, according to the report. Options under consideration include backing development of the Jackdaw gas and Rosebank oil fields and expanding drilling tied to existing North Sea projects.In corporate news, Chevron (CVX) subsidiary Chevron Exploration Services and Iraqi state-owned Basra Oil have signed an agreement to further their commercial negotiations regarding the West Qurna Phase 2 oil field, a company spokesperson toldin an emailed response Friday. Chevron shares rose 1.7%.ConocoPhillips (COP) said Friday it has agreed to acquire a 42% stake in BP's (BP) BP Energy Co. of Kirkuk, which oversees the ongoing redevelopment of four large-scale, currently producing oil fields in northern Iraq's Kirkuk region. ConocoPhillips shares rose 1.3%, and BP climbed 1.8%.PBF Energy (PBF) shares gained 3.3% after Evercore ISI started coverage of the firm with an in-line rating and $58 price target.Valero Energy (VLO) shares were rising 2.7%. The company said in a filing Thursday that its board has authorized the purchase of the company's common stock worth $5 billion, in addition to the amount remaining under its existing buyback program.
Energy stocks were higher Friday afternoon, with the NYSE Energy Sector Index rising 1% and the State Street Energy Select Sector SPDR ETF (XLE) increasing 0.8%.The Philadelphia Oil Service Sector Index was up 0.3%, and the Dow Jones US Utilities Index was shedding 0.5%.Crude oil prices jumped amid Washington intensifying strikes against Iran. US Central Command said in a post on X that it completed the sixth consecutive wave of attacks against Iran, degrading the nation's military capabilities and holding it "accountable" for recent attacks on commercial shipping in the Strait of Hormuz. President Donald Trump has threatened to launch broad-based air strikes on Iranian infrastructure and has also declined to rule out a ground assault on Iran's coast or islands, Reuters reported.Front-month West Texas Intermediate crude oil jumped 4.2% to $82.23 a barrel, and the global benchmark Brent crude contract climbed 4.1% to $87.64 a barrel. Henry Hub natural gas futures rose 2.1% to $2.92 per 1 million BTU.In sector news, incoming UK Prime Minister Andy Burnham is preparing to announce support for new North Sea oil and gas drilling and plans to bring Thames Water under public control shortly after taking office, Bloomberg reported. Burnham, who is due to succeed Keir Starmer on Monday, has asked civil servants to prepare energy and water policy proposals that could be announced as early as next week, according to the report. Options under consideration include backing development of the Jackdaw gas and Rosebank oil fields and expanding drilling tied to existing North Sea projects.In corporate news, ConocoPhillips (COP) said Friday it has agreed to acquire a 42% stake in BP's (BP) BP Energy Co. of Kirkuk, which oversees the ongoing redevelopment of four large-scale, currently producing oil fields in northern Iraq's Kirkuk region. ConocoPhillips shares rose 0.8%, and BP climbed 1.3%.PBF Energy (PBF) shares rose 3% after Evercore ISI started coverage of the company with an in line rating and $58 price target.JERA, a Japan power generator, has begun a feasibility study for a potential US stock market listing as it explores ways to expand overseas and broaden its funding options, Reuters reported.
Carlos Slim's Grupo Carso has agreed to acquire France's TotalEnergies' (TTE) 30% stake in the EP Mexico Block 30 offshore field in the Gulf of Mexico, expanding the Mexican conglomerate's growing portfolio of oil and gas assets.The acquisition, announced in a securities filing on Thursday, will be carried out through a Grupo Carso subsidiary. UK-based Harbour Energy will retain its 70% interest in the block and continue as operator.The deal marks the latest step in 86-year-old billionaire Carlos Slim's strategy to build a larger presence in the segments of Mexico's energy sector open to private investment, even as state oil company Petroleos Mexicanos seeks private partners to reverse declining crude production and strengthen its finances.Slim said earlier this year that his companies would not pursue new joint ventures with Pemex, despite the state producer's efforts to attract outside investment, Bloomberg reported.Grupo Carso has steadily expanded its energy holdings over the past two years. In January, the company completed the acquisition of Fieldwood Energy's Mexican business from Russia's Lukoil, securing full ownership of two producing Gulf of Mexico fields.Last year, Carso also won a contract valued at about $2 billion from Pemex to drill over 30 wells in the Ixachi oil and gas field. Slim has said the project could nearly double crude production at Ixachi to around 200,000 barrels per day within three years.The group's acquisitions, including stakes in Talos Energy (TALO) and US-based refiner PBF Energy (PBF), have made Grupo Carso Pemex's largest private-sector partner.Slim said earlier this month that Mexico's oil and gas production could increase to as much as 2.5 million barrels per day with greater private-sector participation. Pemex produced 1.65 million barrels per day of crude oil and condensates as of the end of April.Price: $80.56, Change: $+1.74, Percent Change: +2.21%
PBF Energy (PBF) has an average rating of Hold and mean price target of $48.62, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
US refiners are on track to report one of their strongest quarters in years as geopolitical disruptions drove fuel margins sharply higher, TPH Energy Research analyst Matthew Blair said in a note on Wednesday.Average Q2 2026 earnings per share are projected at $6.53, above the consensus estimate of $6.20 and up from $0.59 in Q1.Blair said the quarter is shaping up to be the industry's most profitable since market disruptions following Russia's invasion of Ukraine in 2022.Global refining runs fell to an estimated 78 million barrels per day in Q2 from 83 million b/d in Q1, reflecting the closure of the Strait of Hormuz and increased Ukrainian drone attacks on Russian refineries.Tighter supply pushed US gasoline crack spreads to an average of $25/bbl in the quarter, up from $9/bbl in Q1 and $16/bbl a year earlier.Diesel crack spreads climbed to $45/bbl from $30/bbl in the previous quarter and $17/bbl a year earlier. Margins improved across most US refining regions, with the Southwest and Gulf Coast posting the largest gains over the year. Jet fuel and naphtha margins also strengthened.In Asia, Singapore gasoline and diesel crack spreads rose to $33/bbl and $69/bbl, respectively, from $16/bbl and $41/bbl in Q1. Singapore diesel margins reached five-year highs during much of the quarter.Higher fuel margins were partly offset by tighter crude price differentials, steeper backwardation and higher tanker rates. Backwardation indicates strong near-term demand or tight spot supply, with futures prices trading below spot prices.Marathon Petroleum (MPC), PBF Energy (PBF) and Phillips 66 (PSX) are expected to post the largest earnings beats versus consensus, while CVR Energy (CVI) and Delek US Holdings (DK) may underperform expectations.The third quarter has also started strongly, with gasoline and diesel margins rising further amid renewed US-Iran tensions and continued constraints on shipping through the Strait of Hormuz.Blair forecasts average third-quarter earnings per share of $5.91, roughly in line with the consensus estimate of $5.94.Price: $296.79, Change: $-6.61, Percent Change: -2.18%
US refining equities surged last week, outpacing the broader market as renewed fighting between the US and Iran stoked concerns over energy supplies, driving a sharp climb in gasoline and diesel cracks, TPH Energy Research strategists said in a note Monday.TPH analysts said refining equities jumped 8% last week, outperforming the broader S&P 500, which gained 1.2%.Matthew Blair, analyst at TPH Energy, said higher-beta refiners led the advance, with Par Pacific Holdings (PARR) shares rising 12.5%, PBF Energy (PBF) gaining 11.2%, and CVR Energy (CVI) climbing 8.7%.Blair said that the rally came as renewed US-Iran tensions have stoked concerns over potential disruptions to crude and refined product flows, pushing gasoline and diesel margins higher.US gasoline cracks rose by about $3 per barrel last week to $40/bbl, with the West Coast and Rockies regions posting the strongest gains.Diesel margins climbed even more sharply, surging $10/bbl to $53/bbl, buoyed by stronger pricing across the West Coast, Rockies, Gulf Coast and Midwest markets.TPH said the East Coast and Gulf Coast markets entered Q3 with the largest improvement in refining margins over the quarter.Meanwhile, global markets showed mixed signals. Northwest Europe gasoline margins climbed $3/bbl to $37/bbl, reaching the highest level in five years, while Singapore gasoline margins weakened by $5/bbl to $23/bbl amid softer regional demand and supply dynamics.TPH said forward refining margins also strengthened. The 2026 and 2027 6-3-2-1 crack spread futures curves improved by $2/bbl and $3/bbl, respectively, reaching $19/bbl and $14/bbl, driven largely by gains in diesel markets.Crude oil differentials also improved during the week. TPH said Syncrude and Alaska North Slope crude each widened by $8/bbl over Brent, while other grades, including WTI, Mars, Maya, Western Canadian Select at Houston, Western Canadian Select premiums at Hardisty and Bakken also strengthened.WTI differentials improved by $1/bbl, while Mars and Maya gained $1/bbl each. Bakken widened by $2/bbl, the bank said.However, despite the recent rally, most refining stocks remain valued below their three-year forward consensus enterprise value-to-EBITDA averages.TPH said only Marathon Petroleum (MPC) and Valero Energy (VLO) are currently trading above their historical valuation benchmarks.Price: $70.20, Change: $+4.42, Percent Change: +6.72%
PBF Energy's (PBF) refinery in Torrance, California, reported unplanned flaring, according to South Coast Air Quality Management District on Wednesday.Unplanned flaring is an emergency response to an unexpected operational upset or equipment failure. The refinery has a capacity of 160,000 barrels per day.
TPH Energy Research expects US independent refiners to deliver stronger-than-expected Q3 earnings as gasoline and diesel margins remain robust, it said in a Tuesday note.TPH raised its average Q3 earnings per share estimate for the sector to $5.83 from $4.97, above the consensus forecast of $5.22 per share.TPH still expects earnings to remain below its Q2 estimate of $6.18 and the Street's $5.74.TPH said refining margins have started the third quarter strongly, supported by an unusual seasonal increase in US gasoline margins.TPH said its US gasoline margin indicator increased to $35 per barrel in Q3 from $28 per barrel in Q2, after adjusting for Renewable Volume Obligation costs and measuring against Brent crude.US gasoline inventories have fallen to five-year lows and stand 6% below the five-year average, while gasoline yields have remained about 3 percentage points below normal over the past two weeks as refiners favored diesel production, the brokerage said.Diesel margins also improved, with TPH's US futures indicator increasing to $49/bbl in Q3 from $48/bbl in Q2 despite the US-Iran peace agreement.Low inventories, Russian refinery outages and a steeper global cost curve continued supporting diesel markets.TPH said crude differentials have narrowed against Brent for several grades, including WTI-Cushing, Syncrude, Western Canadian Select at Hardisty, Western Canadian Select at Houston and Alaska North Slope, creating a modest headwind for refiners.Company-specific indicators also strengthened early in the quarter, with Valero Energy (VLO) up $7.86/bbl from the prior quarter, Phillips 66 (PSX) up $5.71/bbl and Marathon Petroleum (MPC) up $4.08/bbl, according to TPH.The firm said lower crude backwardation, wider octane spreads and cheaper tanker rates should improve capture rates. Backwardation indicates strong near-term demand or constrained spot supply, with futures prices trading below spot prices.However, weaker jet fuel margins relative to diesel, flat crude prices and a roughly $2/bbl increase in Renewable Volume Obligation costs will offset some of those gains.TPH expects Midwest ethanol margins to improve by about 3 cents per gallon from the Q2 on stronger co-product returns, while retail operations recover. Renewable diesel and polyethylene margins are expected to weaken.Analysts forecast the largest earnings upside versus consensus for Valero Energy, HF Sinclair (DINO) and Par Pacific Holdings (PARR), while maintaining estimates below consensus for PBF Energy (PBF) and CVR Energy (CVI).TPH expects refiners to increase shareholder distributions in Q3 after limiting returns in Q2 because of market volatility.The firm forecasts an average total capital return yield of 9% in Q3, up from 5% in Q2, led by Marathon Petroleum, Valero Energy, Par Pacific Holdings, HF Sinclair and Delek US Holdings (DK).
Renewed Middle East supply concerns boosted refining equities and fuel margins last week, while second-quarter refining fundamentals continued to improve, TPH Energy said in a Monday note.US refining stocks climbed 7.6% last week, outperforming the S&P 500's 2.0% decline after tensions between the US and Iran intensified. The note cited Iran's strike on a cargo ship and the US response targeting drone and missile storage sites.Among refiners, PBF Energy (PBF) gained 15.6%, Delek US Holdings (DK) rose 15.3%, and Valero Energy (VLO) advanced 9.8%. CVR Energy (CVI) fell 1.1% after unexpectedly replacing its chief executive officer, TPH Energy said.Gasoline cracks strengthened across key regions, with US margins rising $6 per barrel to $32/bbl, Northwest Europe gaining $5/bbl to $29/bbl, Singapore increasing $1/bbl to $31/bbl, and 2026 gasoline futures climbing $1/bbl to $14/bbl, TPH said.Diesel cracks also moved higher, as US margins increased $3/bbl to $38/bbl, Northwest Europe rose$7/bbl to $41/bbl, Singapore added $1/bbl to $42/bbl, and 2026 diesel futures advanced $2/bbl to $35/bbl, TPH added.TPH expects second-quarter 2026 product cracks to post their strongest quarterly performance since the second quarter of 2022. US gasoline cracks are on pace to rise $16/bbl quarter over quarter to $25/bbl, while US diesel cracks are expected to increase $15/bbl to $45/bbl.The Southwest posted the greatest improvement in refining margins, both quarter-over-quarter and year-over-year. The West Coast recorded the smallest quarterly gain, while the Mid-Continent showed the weakest year-over-year improvement, TPH said.Higher crude differentials offset part of the stronger refining margins as several grades tightened against Brent. West Texas Intermediate tightened by $1/bbl, Louisiana Light Sweet by $2/bbl, Mars by $4/bbl, Maya by $3/bbl, Bakken by $7/bbl, Syncrude by $5/bbl, West Texas Sour by $2/bbl, and Alaska North Slope by $11/bbl, the company added.Western Canadian Select widened by $4/bbl at Hardisty and $1/bbl at Houston. TPH also expects the West Texas Intermediate market structure to reduce the value of US inland barrels by $5/bbl during the second quarter.
PBF Energy (PBF) has an average rating of hold and mean price target of $45.09, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
US Gulf Coast heavy crude markets are showing signs of divergence as widening discounts for Mexico's Maya blend clash with tightening supplies of Western Canadian Select, TPH Energy strategists said in a note on Monday.Matthew Blair, TPH Energy analyst, said that the market for Maya crude has weakened, with state-owned Pemex widening its discretionary "K factor" price adjustment to a $ 9.20-per-barrel discount for July, steeper than the $8.15 set in June and $4.35 in May.TPH analysts forecast that the move will push Maya-Brent differentials toward a $9.71/bbl discount at the start of Q3, a notable shift from the $7.58 average seen in Q2.The broader heavy crude landscape has been volatile in 2026. TPH said differentials widened in Q1 as additional barrels from Venezuela entered the market, but narrowed in Q2 as regional supplies tightened due to reduced Middle Eastern sour crude shipments.Simultaneously, WCS at Houston has seen its discount to Brent narrow significantly to $7.52 in June, down from $15.12 recorded in May.Market participants attribute this tightness in Canadian heavy crude to supply-side constraints at the source. TPH said unfavorable wet weather in Canada has hindered oil sands operations, compounded by an unplanned outage at Cenovus Energy's (CVE) Foster Creek and Christina Lake assets.The bank said the shifting dynamics in heavy crude pricing carry significant implications for Gulf Coast refiners, specifically Valero Energy (VLO), PBF Energy (PBF), Phillips 66 (PSX), and Marathon Petroleum (MPC).Price: $25.68, Change: $+0.52, Percent Change: +2.05%
China's crude oil imports fell in May to 7.8 million barrels per day, the lowest level since October 2017, as disruptions linked to the Middle East conflict and weaker refining economics weighed on demand, TPH Energy strategists said in a note Tuesday.Matthew Blair, analyst at TPH, said crude arrivals dropped to 7.8 million b/d, down from 9.4 million b/d in April, 11.8 million in March, and 12.6 million in February.The May figure marks the weakest level since October 2017, reflecting what TPH analysts described as a pullback in demand following disruptions linked to the ongoing conflict.The decline in feedstock availability has filtered through to refinery operations.TPH said state-owned refiners saw utilization rates drop to 67% in May from 70% in April, and significantly lower than 78% in March and 82% in February.Meanwhile, the bank said independent "teapot" refiners were more resilient but still eased to 54% from 55% over the same period. Early June data suggests utilization holding at 67% for state-run plants and slipping further to 51% for teapots.Blair said that Chinese refiners are increasingly operating under margin pressure, with elevated crude costs contributing to reported losses across parts of the sector.Despite weaker run rates, China's net refined product exports rose modestly to 489,000 b/d in May from 320,000 b/d in April. However, TPH said that the composition of those exports appears to have shifted. April data suggest shipments were skewed toward jet fuel and fuel oil, with minimal volumes of gasoline and diesel.On the margin side, TPH said that refining economics remain relatively supportive in Asia. Singapore 2-1-1 refining cracks eased to $42 per barrel so far in June, down from $45 in May and a recent peak of $68 in April, though still elevated versus March levels of $59.TPH analysts said the sustained strength in Singapore cracks is most directly supportive of US refiner PBF Energy (PBF), which remains a key beneficiary within its coverage universe.Price: $40.35, Change: $-2.02, Percent Change: -4.77%
Refining equities and product crack spreads declined last week as reports of progress in US-Iran peace negotiations pressured margins and softened sector sentiment, TPH Energy strategists said in a note on Tuesday.Matthew Blair, analyst at TPH Energy, said the refining group fell 1.3%, underperforming the S&P 500's 0.9% gain, with high-beta names leading losses.PBF Energy (PBF) dropped 4.9%, while Phillips 66 (PSX) outperformed the group with a 1.6% rise, making it the lone notable gainer among diversified refiners.TPH said the decline was driven by a sharp compression in refined product cracks. US gasoline cracks fell $12 to $25 per barrel, while US diesel cracks declined $7 to $45/bbl.Regional softness was most pronounced in the Midwest, Midcontinent and Rockies, TPH analysts said, reflecting broad-based margin pressure.International cracks were mixed. Northwest Europe gasoline and diesel eased by $1 and $3/bbl, respectively, while Singapore markets moved against the trend, with gasoline up $3/bbl and diesel rising $5/bbl.Forward curves also reflected the softer tone. The 2026 gasoline strip moved $1 lower, while diesel was unchanged.On the crude side, the Brent-WTI spread narrowed to $3/bbl from $5 previously, reducing a key advantage for US refiners that benefit from discounted domestic crude.Blair said grades, including Mars, Louisiana Light Sweet and Bakken crude strengthened, while Western Canadian Select at Hardisty, Mexico's Maya crude and Alaska North Slope held largely steady.Macro and industry developments added to the mixed backdrop. US regular gasoline prices eased 5 cents to $4.45 per gallon. India raised retail gasoline prices in response to war-related supply dynamics involving Iran.Kuwait's refinery throughput has reportedly fallen by half since the Middle East conflict began, while US jet fuel production has climbed above 2 million barrels per day in recent weeks.On corporate activity, Delek US Holdings (DK) disclosed a $100 million share repurchase authorization from REH. However, despite the recent pullback in refining equities, TPH said most refiners continue to trade above their three-year average forward EBITDA valuation multiples, except for Phillips 66 and Valero Energy (VLO).
PBF Energy (PBF) has priced $500 million of 7.25% senior notes due 2034 in a private offering, the company said late Tuesday.The notes will be co-issued with PBF Energy's subsidiary PBF Holding, the company said, adding that PBF Holding intends to use the net proceeds from the offering to fund the redemption in full of its outstanding 6% senior notes due 2028.The offering is slated to close on Thursday, the company added.Shares of the company were up 1.1% in after-hours activity.
PBF Energy's (PBF) subsidiary PBF Holding plans to offer $500 million of senior notes due 2034 in a private placement, the company said Tuesday.The company said the proceeds, together with cash on hand, will be used to fully redeem its 6.00% senior notes due 2028.
US refiners delivered a softer but still solid quarter for shareholder returns in Q1, as rising crude prices and higher equity valuations pressured free cash flow and reduced buyback activity, TPH Energy strategists said in a note Friday.The average total capital return yield across refiners eased to 4.9% in Q1 from 6.3% in the prior quarter and 9.4% a year ago, the bank said. Matthew Blair, analyst at TPH, said the decline was driven largely by lower share repurchases and slightly reduced dividend yields.Share buybacks averaged a 2.8% yield, down from 4% in Q4 and 6.2% a year earlier, as higher crude prices and seasonal factors weighed on free cash flow. TPH said that half of the refiners in its coverage universe generated negative free cash flow in the quarter.Dividend yields also slipped to 2.1% from 2.3% in Q4 and 3.2% a year ago, despite dividend increases from Phillips 66 (PSX) and Valero Energy (VLO), reflecting higher average share prices during the period.Blair said among individual names, the strongest total capital return yields in Q1 were led by Par Pacific (PARR) at 9.2%, followed by Marathon Petroleum (MPC) at 7%, HF Sinclair (DINO) at 6.8%, and Valero Energy (VLO) at 6.1%. CVR Energy (CVI) was the only refiner that did not return capital during the quarter.Going ahead, TPH expects average total capital return yields to ease further to about 4.5% in Q2, despite what it described as robust profitability and free cash flow generation.The bank identified three main headwinds, including higher share prices, reduced opportunistic buybacks at Par Pacific, and a shift among some refiners, such as Phillips 66 and PBF Energy (PBF), toward debt reduction rather than share repurchases.TPH projects that Valero will lead total capital return yields in Q2 at an estimated 8.1%, followed by HF Sinclair at 7.5% and Marathon Petroleum at 6.7%.CVR Energy is expected to lag its peer group, with a projected yield of 1.1%, even as the energy firm moves to reinstate its dividend.Price: $176.42, Change: $+2.37, Percent Change: +1.36%
US oil refiner PBF Energy (PBF) expects to ramp up output at its Martinez refinery to "full planned rates" by early May, a feat it says has taken a year of exhaustive work after a fire and which now positions it to increase product supply at a time of growing market need, it said in its Q1 earnings report on Thursday.The company's other refineries had operated satisfactorily during the first quarter, which began with a period of severe cold in January that made operations more difficult. It also completed a turnaround at its Torrance refinery during the Jan-March period.The company is optimizing refining operations overall through an improvement initiative that is yielding improvements to cost structure, it said.A turbulent quarter for refineries at the start of the year looks likely to persist in the near term but refining fundamentals look strong at a time of tight supply-demand balances, PBF said.The company expects most of the repair work following the fire at the Martinez plant will be covered by insurance while it must contribute a deductible of $30 million, it said.The company expects to refine between 850,000 and 910,000 barrels of oil per day at its various facilities in Q2, it said.The SBR refinery produced an average 16,700 barrels of renewable diesel per day in Q1, a volume which is likely to decrease to between 15,000 and 16,000 barrels in Q2.The company's East Coast Refining System comprised of Delaware City and Paulsboro facilities produced 302,700 barrels of refined products in Q1, up from 258,400 a year earlier.The mid-continent Toledo facility produced 145,200 barrels of product, up from 139,100 barrels in Q1 2025.The Chalmette refinery on the Gulf Coast produced 187,500 barrels of product in Q1 versus 158,900 a year prior.Torrance and Martinez refineries on the West Coast produced a total of 205,800 barrels of products, up from 176,300 in Q1, 2025, the earnings report said.Price: $43.99, Change: $+0.85, Percent Change: +1.98%
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