Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

RINs Take A Big Bite Out Of PBF Energy

PBF Energy's (NYSE:PBF) earnings came in below expectations for Q2, with the company reporting a quarterly EPS on an adjusted pro forma basis of 0.73 that was 8% below the analyst estimate of 0.79. Like other refiners, the company attributed this in part to much higher-than-expected costs of compliance under the revised Renewable Fuel Standard [RFS2]. This represented the second consecutive quarter in which PBF Energy missed analyst estimates, causing the company's share price to remain below its December 2012 IPO price and near historical lows (see figure). In its conference calls for each quarter the company's management spent a substantial amount of time discussing the RFS2 and its tradable compliance commodity, the Renewable Identification Number [RIN]. As...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details