8 Best Oil Refinery Stocks To Invest In

04. PBF Energy Inc. (NYSE:PBF)

Number of Hedge Fund Holders: 32

PBF Energy Inc. (NYSE:PBF) is a leading independent oil refining company that operates through two primary segments: Refining and Logistics. The company produces a variety of petroleum products, including gasoline, ultra-low sulfur diesel, jet fuel, lubricants, petrochemicals, and asphalt. With operations spanning the Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as Canada, Mexico, and international markets, PBF Energy Inc. (NYSE:PBF) is well-positioned to meet diverse fuel and petrochemical needs. This broad geographic footprint, coupled with an extensive product portfolio, makes PBF Energy Inc. (NYSE:PBF) a strong contender in the list of best oil refinery stocks to invest in.

PBF Energy Inc. (NYSE:PBF) Q2 2024 earnings report revealed challenges, but the company’s strong cash position and commitment to capital allocation strategies underscore its resilience and long-term growth potential. Despite missing on earnings expectations and reporting an adjusted net loss of $0.54 per share, the company achieved an adjusted EBITDA of $94.8 million. The primary reason for the earnings miss was the impact of extended maintenance activities at its East Coast and Mid-Con refineries, which reduced product yield and increased inventory levels.

The refining segment faced headwinds from declining crack spreads and tightening crude differentials, which led to lower margins during the quarter. However, with most of the planned maintenance activities completed and assets now operating at full capacity, PBF Energy Inc. (NYSE:PBF) is well-positioned to capitalize on improved refining margins in the second half of 2024. The company’s cash flow from operations remained robust at $425 million, benefiting from a $300 million working capital normalization.

In addition, PBF Energy Inc. (NYSE:PBF) focus on returning value to shareholders is evident through its share repurchase program and regular dividend payments. During Q2 2024, the company repurchased approximately $100 million in shares and paid a quarterly dividend of $0.25 per share. Since December 2022, PBF has repurchased over $914 million worth of shares, reducing its total share count by 16%.

With a healthy balance sheet, $1.4 billion in cash, and $1.3 billion in debt, PBF Energy Inc. (NYSE:PBF) is on solid financial footing. The company’s strategic capital allocation and efficient operations in the refining industry make it an attractive investment in the oil refinery sector.