While Deutsche Bank (NYSE:DB) believes the refining industry needs to be shrunk in the U.S., there is good news for companies like Marathon (NYSE:MRI) and Holly (NYSE:HOC) serving in that capacity, as margins are up and earnings will follow as a result.
Both companies were upgraded to "Buy" on enhanced margins.
Deutsche Bank said, "Demand is weak and expected to never attain its previous peaks; but more refining capacity has been added. The need is to retire refineries, a slow and painful aging process for a twilight industry. However in this note we list the many positive factors that have driven US refining margins, particularly in the MidCon, towards the upper end of the 2000-2010 range. Long MidCon: Raise Marathon to BUY, Holly to BUY, re-iterate ConocoPhillips (NYSE:COP) BUY, Frontier (NYSE:FTO) BUY, CVR Energy (NYSE:CVI) BUY."
It seems Deutsche is wrong concerning oil refinery capacity, which has caused problems in the past in the U.S. when a number of them were shut down.
Showing posts with label Frontier Oil. Show all posts
Showing posts with label Frontier Oil. Show all posts
Tuesday, October 26, 2010
Friday, October 1, 2010
Citigroup (NYSE:C) Slashes Noble (NYSE:NE) EPS Estimate
Citigroup Inc. (NYSE:C) has lowered its earnings per share estimate for Noble Corp. (NYSE:NE), citing the delay of a GOM newbuild semisubmersible.
In a note to clients, Citigroup analyst Robin Shoemaker said, "The accumulated downtime over the last two and a half months was anticipated, but the increased effective tax rate for 3Q10 and delay in the start of a GOM newbuild semisubmersible are negatives we did not expect. Although the implications of this fleet status are negative, we would buy the stock on today's correction. We expect the GOM rigs now on standby will return to work in late 1Q11 and view the recently acquired Frontier backlog as adding stability until the drilling market recovers."
Consequently, earnings for 2010 were lowered from $3.90 to $3.30, "following its first fleet status update since July 8," added Shoemaker.
Noble was trading at $33.57, down $0.22, or 0.65 percent, at 2:40 PM EDT.
In a note to clients, Citigroup analyst Robin Shoemaker said, "The accumulated downtime over the last two and a half months was anticipated, but the increased effective tax rate for 3Q10 and delay in the start of a GOM newbuild semisubmersible are negatives we did not expect. Although the implications of this fleet status are negative, we would buy the stock on today's correction. We expect the GOM rigs now on standby will return to work in late 1Q11 and view the recently acquired Frontier backlog as adding stability until the drilling market recovers."
Consequently, earnings for 2010 were lowered from $3.90 to $3.30, "following its first fleet status update since July 8," added Shoemaker.
Noble was trading at $33.57, down $0.22, or 0.65 percent, at 2:40 PM EDT.
Thursday, August 5, 2010
Frontier Oil (NYSE:FTO) Misses Earnings, Meets Revenue Estimates
Even though they missed earnings estimates for the quarter, Frontier Oil (NYSE:FTO) had a decent quarter, with earnings reaching net income reaching $66.1 million, or 63 cents a share, up from the $57.9 million loss, or 56 cents a share, last year.
Frontier missed after excluding times, with adjusted earnings of 46 cents, whereas analysts had been looking for 47 cents a share.
Revenue in the quarter was $1.55 billion, an increase of 40 percent over the same quarter last year, which was exactly what analysts had expected for the quarter.
A hedging gain was a major factor in the performance of the company over last year, with a hedging gain of 17 cents a share against last year's 18-cent a share loss on hedges.
Like most energy companies in the last quarter, margins have been the story behind their increase in earnings, especially with refinery margins, which CEO Mike Jennings said should continue to widen incrementally going forward.
The differential in light/heavy crude also more than doubled during the quarter, increasing to an average of $9.33 a barrel, helping the margins of the company.
Frontier missed after excluding times, with adjusted earnings of 46 cents, whereas analysts had been looking for 47 cents a share.
Revenue in the quarter was $1.55 billion, an increase of 40 percent over the same quarter last year, which was exactly what analysts had expected for the quarter.
A hedging gain was a major factor in the performance of the company over last year, with a hedging gain of 17 cents a share against last year's 18-cent a share loss on hedges.
Like most energy companies in the last quarter, margins have been the story behind their increase in earnings, especially with refinery margins, which CEO Mike Jennings said should continue to widen incrementally going forward.
The differential in light/heavy crude also more than doubled during the quarter, increasing to an average of $9.33 a barrel, helping the margins of the company.
Sunday, May 9, 2010
Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX) Profits Should Improve
Oil companies like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Tesoro (NYSE:TSO) and Frontier Oil (NYSE:FTO) should rebound in earnings in this quarter, although it should be tempered with some caution.
Some of the earnings improvement are being generated from cost cutting by shutdowns, and that means organic growth isn't happening at this time, although margins in general seem to be increasing.
Even with Chevron reporting profits, it's highly unlikely they came from the oil segment, as they put their chemical and refining units together as downstream when they report, so the chemical division could easily have hidden a poor performance from their oil unit.
With most other oil companies struggling in that regard, Chevron probably did too.
Some of the earnings improvement are being generated from cost cutting by shutdowns, and that means organic growth isn't happening at this time, although margins in general seem to be increasing.
Even with Chevron reporting profits, it's highly unlikely they came from the oil segment, as they put their chemical and refining units together as downstream when they report, so the chemical division could easily have hidden a poor performance from their oil unit.
With most other oil companies struggling in that regard, Chevron probably did too.
Thursday, January 15, 2009
Frontier Oil Plans Earnings Release and Conference Call February 26
HOUSTON, Jan 15, 2009 (BUSINESS WIRE) --
Frontier Oil Corporation (NYSE: FTO) plans to announce results for the quarter ended December 31, 2008 on Thursday, February 26, 2009. Management has scheduled a conference call for the morning of February 26th at 11:00 a.m. ET to discuss the financial results and business outlook.
To access the call, which is open to the public, please dial (888) 211-0226 several minutes prior to the call. For those individuals outside the United States, please call (913) 312-0828. A recorded replay of the call may be heard through March 12, 2009 by dialing (888) 203-1112 (international callers (719) 457-0820 and entering the code 4427813.) In addition, the real-time conference call and a recorded replay will be available via webcast by registering from the Investor Relations page of our website www.frontieroil.com.
Frontier operates a 130,000 barrel-per-day refinery located in El Dorado, Kansas, and a 52,000 barrel-per-day refinery located in Cheyenne, Wyoming, and markets its refined products principally along the eastern slope of the Rocky Mountains and in other neighboring plains states.
SOURCE: Frontier Oil Corporation
Frontier Oil Corporation
Kristine Boyd, 713-688-9600 ext. 135
Copyright Business Wire 2009
Frontier Oil Corporation (NYSE: FTO) plans to announce results for the quarter ended December 31, 2008 on Thursday, February 26, 2009. Management has scheduled a conference call for the morning of February 26th at 11:00 a.m. ET to discuss the financial results and business outlook.
To access the call, which is open to the public, please dial (888) 211-0226 several minutes prior to the call. For those individuals outside the United States, please call (913) 312-0828. A recorded replay of the call may be heard through March 12, 2009 by dialing (888) 203-1112 (international callers (719) 457-0820 and entering the code 4427813.) In addition, the real-time conference call and a recorded replay will be available via webcast by registering from the Investor Relations page of our website www.frontieroil.com.
Frontier operates a 130,000 barrel-per-day refinery located in El Dorado, Kansas, and a 52,000 barrel-per-day refinery located in Cheyenne, Wyoming, and markets its refined products principally along the eastern slope of the Rocky Mountains and in other neighboring plains states.
SOURCE: Frontier Oil Corporation
Frontier Oil Corporation
Kristine Boyd, 713-688-9600 ext. 135
Copyright Business Wire 2009
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