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It's worth noting that Macquarie, in sounding the alarm over biofuels costs that could hurt...

It's worth noting that Macquarie, in sounding the alarm over biofuels costs that could hurt earnings for refiners, thinks the problem won't hurt all refiners equally. It says the well positioned companies are those that are better integrated between refining and midstream product terminal assets that support self-blending of ethanol, such as MPC, NTI, TSO and WNR.
Comments (13)
    13 Mar 2013, 12:51 PM Reply Like
  • To be fair, from the analyst call yesterday John Lipinski said, "...we do ethanol blending at Wynnewood and at Coffeyville, which is not insubstantial, but the majority of our product goes out on the Magellan and NuStar pipelines and at that point, no control of blending." But I agree that the downgrade is over-blown
    13 Mar 2013, 02:02 PM Reply Like
  • NTI sure looks like a barn burner with a 17+% dividend and a share price at $31+ which could be going to +$45/share PDQ.....
    13 Mar 2013, 02:10 PM Reply Like
  • Long since $23 :)
    13 Mar 2013, 02:35 PM Reply Like
  • Long since $25 :)
    13 Mar 2013, 02:49 PM Reply Like
  • Forgot to mention that I bought in NTI kind of late at $24.00/share...
    13 Mar 2013, 09:13 PM Reply Like
  • It's stupid for Macquarie to make irresponsible remarks about biofuels, as it doesn't affect the general market that much, so what's the beef? What it does is to unreasonable set off panic and stimulate sell-offs, which I suspect, is intended to create buying opportunities for their investing associates. Well, VLO did go down to $43.20 suddenly this morning, from $45.53 at close yesterday, before it climbed back to $44.55, and now, its down again. I'm sure other refiners are having similar fluctuations, so we can only wait for the market to regain its confidence in VLO and the rest again. But this downgrade remark is irresponsible, which often happens to stocks which went high up suddenly and people like this are kept on the sidelines, waiting to get in, so they cook up stories to scare the market and get in..
    13 Mar 2013, 02:23 PM Reply Like
  • Leave it to f%#*in idiots like those at MacQuarie to spoil a good thing . HFC didn't need to be downgraded based on misleading information. Now the other refiners took a hit as well (VLO, TSO, PSX )
    13 Mar 2013, 02:44 PM Reply Like
  • Macquarie actually raised its EBITDA and EPS forecasts for WNR and MPC


    According to the report, VLO and CVI get hit the most


    Why all the refiners are getting hit is simply the baby being thrown out with the bath water. Ultimately there will be winners and losers as fundamentals matter again as opposed to "charts".
    13 Mar 2013, 09:10 PM Reply Like
  • Isn't VLO one of the biggest US ethanol producers?
    13 Mar 2013, 09:20 PM Reply Like
  • Yes it is, they bought Verasun in bankruptcy in 2008 or 09. I'm thinking biofuel makers like KIOR should be benefiting from higher RIN prices.
    14 Mar 2013, 04:20 PM Reply Like
  • Yes. Top Ethanol: Poet, ADM, Valero, GPRE. Valero had a few plants shut down but they're in the process of starting back up.
    14 Mar 2013, 09:32 AM Reply Like
  • VLO is the largest refiner in the U.S., so they're into everything that needs refining and yes, they've idled many plants when demand was down but now, they're firing them up again. New plants are also on the drawing boards.
    14 Mar 2013, 02:00 PM Reply Like
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