PBF Energy Announces Full Redemption of $525M in Senior Notes Due 2023
January 8, 2023
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Pbf Energy Intrinsic Stock Value – PBF ($NYSE:PBF) Energy is a major integrated oil refining and marketing company. The company supplies a wide range of petroleum products to customers both nationally and internationally. The redemption will take place on February 3, 2023 at 100% of the principal amount, plus any accrued and unpaid interest. This news was welcomed by investors as it serves to strengthen the company’s financial standing and reduce its debt burden. This redemption is part of PBF Energy‘s ongoing strategy to improve its financial position. The company has recently made significant investments in its infrastructure, including the construction of two new refineries and the acquisition of two other refineries.
These investments have greatly increased its production capacity, allowing it to meet the growing demand for its products. As a result, the company’s revenues have grown substantially in recent years. The full redemption of the $525 million in senior notes is an important milestone for PBF Energy and its shareholders. By reducing its total debt burden, the company will be in a better position to continue investing in its infrastructure and expanding its production capacity. This should result in greater profits for shareholders in the long term. The news is also expected to have a positive impact on the company’s stock price, as investors recognize the value of PBF Energy’s financial position.
Stock Price
However, despite the positive sentiment surrounding the announcement, PBF Energy‘s stock saw a decline of 7.9% from its prior closing price of $40.8 to $37.6 at the time of writing. The company has stated that the redemption of the notes is part of its effort to improve its balance sheet. It is also looking to reduce the company’s debt levels and use the proceeds to pay off existing debt, which will help the company become more financially secure.
Additionally, the company will benefit from a lower interest rate on its remaining debt, which will reduce its overall cost of capital. This could enable the company to pursue strategic initiatives that could drive long-term shareholder value. Furthermore, with a stronger balance sheet, PBF Energy will be better positioned to capitalize on potential growth opportunities in the future. By improving its balance sheet and reducing its debt load, the company is in a better position to capitalize on potential business opportunities and drive long-term shareholder value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pbf Energy. More…
| Total Revenues | Net Income | Net Margin |
| 44.23k | 2.4k | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pbf Energy. More…
| Operations | Investing | Financing |
| 3.8k | -845 | -2.52k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pbf Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.3k | 8.43k | 34.49 |
Key Ratios Snapshot
Some of the financial key ratios for Pbf Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.8% | 322.6% | 7.0% |
| FCF Margin | ROE | ROA |
| 7.5% | 52.8% | 14.6% |
VI Analysis – Pbf Energy Intrinsic Stock Value
PBF Energy is a top-tier independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the United States. The company’s fundamentals are key to understanding its long-term potential, and can be easily evaluated using VI app. VI Line, a tool in the app, analyses various financial metrics to calculate the intrinsic value of the PBF Energy stock. According to the analysis, the intrinsic value of PBF Energy share is around $25.7. However, the current market price of the stock is $37.6 – which is 46% higher than the intrinsic value. This indicates that the stock is significantly overvalued right now. Investors should keep in mind that the stock market can be volatile and unpredictable, and they must always do their own independent research before investing in any company. That said, given the current overvaluation of the PBF Energy stock, it may be wise to wait for a more attractive entry point before investing in the company. More…
VI Peers
PBF Energy Inc is an American holding company that owns and operates oil refineries and is headquartered in Parsippany-Troy Hills, New Jersey. PBF’s subsidiaries include PBF Logistics LP, which owns crude oil and refined product pipelines and terminals, and PBF Holding Company LLC, which owns and operates crude oil refineries. As of December 31, 2019, PBF Energy Inc. operated four oil refineries with a combined gross crude oil processing capacity of approximately 930,000 barrels per day. PBF Energy’s competitors include HF Sinclair Corp, Delek US Holdings Inc, Marathon Petroleum Corp. These companies are all engaged in the business of refining and marketing petroleum products.
– HF Sinclair Corp ($NYSE:DINO)
Sinclair Broadcast Group, Inc. is one of the largest and most diversified television broadcasting companies in the United States. The company owns and operates, programs or provides sales services to more than 190 television stations in 89 markets. Sinclair’s television group reaches approximately 40% of US television households and includes FOX, ABC, CBS, CW, MyNetworkTV, and Univision affiliates. In addition, Sinclair owns or operates four radio stations in the Seattle market and is a leading local news provider in the Seattle/Tacoma/Bellevue area.
– Delek US Holdings Inc ($NYSE:DK)
Delek US Holdings Inc. is an American petroleum refining and marketing company with operations in the United States and Israel. It has a market cap of 2.07B as of 2022 and a Return on Equity of 34.19%. The company’s operations include crude oil refining, marketing of refined products, and retail marketing of gasoline, diesel fuel, and other petroleum products. Delek US Holdings Inc. also owns and operates a fleet of crude oil and refined product terminals, and a network of pipelines.
– Marathon Petroleum Corp ($NYSE:MPC)
Marathon Petroleum Corp is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011. As of December 31, 2019, Marathon Petroleum had 16 oil refineries in the United States that accounted for approximately 3.1 million barrels per day of crude oil processing capacity. The company’s marketing system includes approximately 8,300 branded retail outlets operated under the Marathon, Speedway, and SuperAmerica brand names in 19 states. These retail outlets sell gasoline and diesel fuel to drivers and also offer a selection of convenience store products.
Summary
PBF Energy has announced the full redemption of $525 million in senior notes due 2023. Despite the news being generally well-received, the stock price has dropped since the announcement. For investors, PBF Energy is a mid-sized independent refinery company with operations in the United States and Canada.
The company also has a strong financial position with minimal debt and strong cash flow, which provides a cushion for investors. The recent redemption of the senior notes could be seen as a positive sign of management’s commitment to reducing debt and strengthening the balance sheet.
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