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...
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