Mon, Jul. 25, 12:56 PM
- Some U.S. refiners, stuck with the highest inventories of gasoline for this time of year in a quarter of a century, have started blending winter grade gasoline a month earlier than usual to sell later in the year, Reuters reports.
- Looking to cut costs, refiners and blenders reportedly are making an early move to mix cheap butane - a cheaper blending component than most other ingredients - to convert the summer barrels into winter barrels.
- Mixing more winter gasoline now threatens to worsen the glut later, but that's a risk willingly taken by an industry left with few other choices, the report says.
- Independent U.S. refiners are expected to post another quarter of weak earnings en route to possibly the worst year since the shale boom began in 2011.
- Refiners are broadly lower today as crude oil prices drop: PSX -1.6%, VLO -0.7%, MPC -2.3%, TSO -1.6%, HFC -0.7%, WNR -0.3%, PBF -1.5%, DK -0.6%, ALJ -1.7%.
Fri, Jul. 15, 5:56 PM
- California proposes a series of regulations aimed at strengthening workplace and environmental safety at the state’s 18 oil refineries, four years after a leaky pipe triggered a fire at Chevron’s (NYSE:CVX) Richmond plant and sent 15K people to the hospital.
- The new rules would require increased employer accountability for mechanical integrity of refinery equipment, adoption of inherently safer designs and systems, periodic workplace safety culture assessments, and more.
- CVX has acknowledged problems at Richmond and agreed to pay $2M in fines but rejected accusations of lax safety attitudes at the plant.
- Other relevant tickers include TSO, VLO, PSX, ALJ, RDS.A, RDS.B.
Wed, Jul. 13, 3:56 PM
- Phillips 66 (PSX -0.2%) is downgraded to Equal Weight from Overweight with an $86 price target, lowered from $93, at Barclays, which sees limited upside especially if refining margins rebound and offer greater valuation growth potential to its large-cap peers, including Tesoro (TSO -2.6%), Valero (VLO +0.4%) and Marathon Petroleum (MPC -1.6%).
- Barclays also downgrades Delek US Holdings (DK -4.7%) to Equal Weight from Overweight with a $15 price target, cut from $20, on valuation and continuously challenged margin capture at both DK refineries, neither of which show visibility toward material improvement.
- Meanwhile, the firm upgrades Alon USA (ALJ +0.1%) to Equal Weight from Underweight after the company has significantly underperformed since the end of 2012.
Wed, Jul. 13, 12:52 PM
Fri, Jul. 8, 3:23 PM
- Phillips 66 (PSX +0.6%) is downgraded to Market Perform from Outperform at Wells Fargo, citing PSX's relative outperformance and a "shakier outlook" for the company's refining operations.
- The firm lowers its expectations for the quarter, the rest of this year and 2017, seeing the bumpy start to Q3 as “rapidly eroding” hopes for a strong summer; nevertheless, it maintains Outperform ratings on Marathon Petroleum (MPC +2.2%), PBF Energy (PBF +1%) and Valero Energy (VLO +0.9%).
- Despite a recent 3.6M-barrel drawdown in gasoline stocks, inventories remain much higher than a year ago, and analysts have been cutting earnings estimates for big U.S. refiners who report Q2 results in coming weeks.
Thu, Jun. 30, 12:47 PM
- Exxon Mobil (XOM +0.8%), Chevron (CVX +1.2%) and Tesoro (TSO -0.5%) are among refiners being investigated by California's attorney general over allegations they withheld supply in an attempt to artificially raise gasoline prices in the state, WSJ reports.
- The subpoenas were sent in late May and seek information about trading, maintenance and repair activities at the companies since 2014, according to the report.
- Other companies receiving subpoenas reportedly also included Phillips 66 (PSX -0.9%), Valero (VLO -2.1%) and Royal Dutch Shell (RDS.A, RDS.B).
- "Many factors that determine the price of gasoline," a TSO spokesperson says, including "the cost of crude oil, distribution and marketing costs, refining costs and federal and state taxes. Market conditions, such as supply and demand, determine the price that consumers pay at the pump.”
Wed, Jun. 29, 3:58 PM
- Tesoro (TSO +1.9%) is upgraded to Buy from Neutral with a $100 price target, lifted from $96, at Goldman Sachs, citing a more constructive outlook for the California refining market, underappreciated value in non-refining assets, and limited risk from higher RINs and a lower Brent-WTI spread.
- Goldman thinks the California refining market will remain well-balanced, despite Torrance returning to service, driven by growing regional demand and the currently low inventories, and that investors have not been giving TSO fair value for its non-refining businesses.
- At the same time, the firm downgrades PBF Energy (PBF +1.2%) to Neutral from Buy with a $26 price target, cut from $37, expecting the company to be “disproportionately negatively impacted” by expectations of higher RINs prices.
- Along with TSO, Goldman rates Valero (VLO +0.1%) and Marathon Petroleum (MPC +4%) as Buys among refiners, while maintaining Sell ratings on Phillips 66 (PSX +1.2%), HollyFrontier (HFC +0.1%), CVR Energy (CVI -0.4%) and CVR Refining (CVRR -1%).
Wed, Jun. 22, 11:43 AM
- Southern California refiners are bracing for potential disruptions ahead of possible blackouts this summer as state regulators to warn of power and gas shortages.
- On top of a heat wave that has swept the region, testing power grids that rely heavily on natural gas for fuel, power generators face strained gas supplies as SoCalGas' Aliso Canyon facility remains out of commission following last year's huge gas leak.
- Any stoppages at the refineries likely would cause gasoline prices to rise in California, already the largest and most expensive gasoline market in the continental U.S.
- Tesoro (TSO +0.1%), which operates two refineries in the region, says the Watson cogeneration facility at its Los Angeles refinery utilizes natural gas to produce steam to operate the refinery.
- Exxon Mobil (XOM -0.2%), Chevron (CVX -0.4%), Valero Energy (VLO +1.1%) and Phillips 66 (PSX +0.9%) also operate southern California refineries.
Fri, Jun. 17, 2:40 PM
- Phillips 66 (PSX -1.1%) is downgraded to Equal Weight from Overweight with a $90 pricetarget, cut from $105, at Morgan Stanley, which says macro refining circumstances have changed since its earlier bullish outlook.
- Warren Buffett is PSX's largest shareholder and has been adding to his position this year, but Stanley says the short-term outlook is in doubt.
- "Changed macro significantly reduces 2016 earnings and cash flow," analyst Evan Calio writes. "We now expect both weaker crack spreads and lower light crude differentials in 2016."
Tue, May 24, 2:10 PM
- Berkshire Hathaway (BRK.A, BRK.B) now owns nearly 15% of Phillips 66 (PSX +2.2%) after buying nearly 643K shares of the company, worth $64M, over the past week.
- Warren Buffett's company now owns ~76.37M PSX shares, a significant jump since the end of 2015 when it owned 61.5M shares.
- Now read Phillips 66: Why Buffett's Berkshire Hathaway continues to fill-up with it
Read more here: http://www.miamiherald.com/news/business/article79506287.html#storylink=cpy
Mon, May 23, 9:15 AM
- Phillips 66 (NYSE:PSX) is in the final stages of selling the only oil refinery in Ireland, Reuters reports.
- Valero Energy (NYSE:VLO) is in the running to purchase the 71K bbl/day Whitegate refinery, as well as ArcLight Capital, Irving Oil and U.K.-based PTFPlusOne, according to the report.
- PSX has tried to sell the refinery since 2013, but the plant has limited strategic appeals and a history of poor refining margins.
- Now read Phillips 66: Why Buffett's Berkshire Hathaway continues to fill-up with it
Thu, May 19, 6:48 PM
- Oil refiners are returning to normal after a period of high differentials, and are thus no longer a safe place for investors to wait out the energy downturn, UBS analysts say.
- UBS believe refiners have reached an inflection point where headwinds outnumber tailwinds, likely driving refining margins to more normal levels; the firm expects a rising crude price to eventually compress refining margins that were supported by wide basis differentials that have now narrowed.
- UBS initiates Tesoro (NYSE:TSO) with a Buy rating, as it expects TSO to derive more of its EBITDA from retail and marketing vs. refining by 2018 than comparable peers under coverage.
- However, the firm starts Marathon Petroleum (NYSE:MPC) with a Sell rating; Phillips 66 (NYSE:PSX), Valero Energy (NYSE:VLO) and CVR Refining (NYSE:CVRR) are rated Neutral.
Tue, May 17, 10:43 AM
- The Gulf Coast petrochemical boom and Chinese expansion are leading to an oversupply of the world’s two most common plastics, polyethylene and polypropylene, which will result in falling prices and profits as well as delays and cancellations of plans to build or expand petrochemical plants, according to a new report from the IHS research firm.
- Companies including Exxon Mobil (NYSE:XOM), Chevron Phillips (CVX, PSX), Dow Chemical (NYSE:DOW), BASF (OTCQX:BASFY) and LyondellBasell (NYSE:LYB) have multi-billion-dollar Gulf coast expansion projects underway, with many planned for completion in a year or so.
- Some companies already are placing planned projects on hold indefinitely; Ascend Performance materials said yesterday that it was delaying construction of a $1.2B propane dehydrogenation plant.
Mon, May 16, 7:53 AM
- Alongside Berkshire Hathaway's (BRK.A, BRK.B) roughly $1B new stake in Apple in Q1, the company slashed its ownership in Procter & Gamble by 99% to 315K shares, and completely exited its 46.6M share holding in AT&T (NYSE:T).
- Berkshire raised its stake in Phillips 66 (NYSE:PSX) by 23% to 75.6M shares.
Thu, May 12, 6:43 PM
- Even as Canada's oil sands producers begin to get facilities back online after massive wildfires, Cnooc's Nexen (NYSE:CEO) is the latest company to warn customers that it may not be able to fulfill supply contracts.
- Reuters reports that Nexen has issued a force majeure for all of its May production of Canadian heavy crude, the latest of four major oil companies to do so.
- Last week, BP, Phillips 66 (NYSE:PSX) and Statoil (NYSE:STO) warned customers some grades of Canadian crude would not be available, while Suncor Energy (NYSE:SU) alerted clients that some supplies from the region would be disrupted.
- Nexen's Long Lake oil sands facility, located south of Fort McMurray, sustained minor damage from the fire.
- Nearly 1M bbl/day of production were shut down during the fire, about half the oil sands' usual daily output, but no oil sands sites are currently under threat from the fire.
Wed, May 11, 6:19 PM
- Some midwest refiners are rushing to find alternatives for crude supply amid concerns about prolonged outages after wildfires in Alberta shut nearly 1B bbl/day of production capacity from the province's oil sands, Reuters reports.
- Traders say sufficient U.S. supply is not a problem overall, but facilities including BP's Whiting refinery in Indiana and Phillips 66's (NYSE:PSX) Wood River refinery in Illinois that need Canadian crude may have trouble getting alternative supplies fast enough.
- Some refiners without accessible crude supply and with tighter margins may have to cut refinery runs, which analysts say could exacerbate the swollen U.S. crude glut and add more pressure to oil prices.
- Analysts predict that the logistical lag time will result in some backlogs for refiners includes Husky's (OTCPK:HUSKF) Lima refinery, which recently wrapped up a major eight-week turnaround as it tries to process more heavy crude feedstock.
- U.S. imports of Canadian crude rose to 2.95M bbl/day through last Friday, but production cuts due to the fire are sure to sharply reduce the figure this week.
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
Phillips 66 operates as an energy manufacturing and logistics company. The company operates through following segments: Midstream, Chemicals, Refining, Marketing and Specialties. The Midstream segment conducts its business primarily through an equity investment in DCP Midstream LLC, which is... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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