Refiners Riding Valero’s Coattails

Energy

Published: January 29, 2013 2:05 pm

Last Updated: April 28, 2020 4:01 am

BP, Texas City refineryWhen oil refiner Valero Energy Corp. (NYSE: VLO) reported a big earnings beat this morning, it was almost inevitable that the halo would also appear above the other major refining stocks. And so it has, with competitor Tesoro Corp. (NYSE: TSO) even setting a new 52-week high of its own today. Phillips 66 (NYSE: PSX) is up more than 5%, as are HollyFrontier Corp. (NYSE: HFC), Western Refining Inc. (NYSE: WNR), and Marathon Petroleum Corp. (NYSE: MPC). And all these have already posted new 52-week highs as well.

Valero was the first to report earnings, so the best may be yet to come here. Here’s a look at what’s ahead.

Marathon Petroleum reports tomorrow and fourth-quarter EPS is forecast at $2.10 on revenues of $19.07 billion. The EPS estimate is up $0.46 in the past three months and the consensus price target on the shares is around $76.20. Shares are trading today at about $72.

Phillips 66 also reports tomorrow and fourth-quarter EPS is forecast at $1.68 on revenues of $46.03 billion. The estimate has risen by $0.10 in the past 90 days and the consensus price target on the stock is around $64.40. Shares are trading today at about $60.

Tesoro reports earnings on February 6th and EPS is estimated at $1.37 on revenues of $6.95 billion. The estimate has risen $0.15 a share in the past three months and the consensus price target is around $54.20. Shares are trading today at about $49.

HollyFrontier is scheduled to report on February 26th and the consensus estimate calls for EPS of $2.26 on revenues of $4.93 billion. The earnings estimate has grown by a whopping $0.74 in the past 90 days and the consensus price target on the stock is around $53.30. Shares are trading today at about $50.55.

Western Refining is scheduled to report earnings on February 28th and the consensus estimate calls for EPS of $1.37 on revenues of $$2.31 billion. The earnings estimate is up $0.30 in the past three months and the consensus price target is $34. Shares are trading today at nearly $32.

There are no big value plays here, but keep an eye on the price differential between WTI and Brent crudes, which has dropped below $16 a barrel. Most of these refiners benefit from a lower WTI price and a wider spread. But there’s still room for all of them to keep profits rolling in.

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