Winning a big contract is usually good news for a company like Chicago Bridge & Iron (CBI), and today was no exception, as the engineering company won contract to build a liquefied natural gas facility.
Bloomberg NewsThe New Orleans Times-Picayune has the details:
Netherlands-based energy infrastructure company Chicago Bridge & Iron Co. (CB&I) and Chiyoda International Corp., a Japan-based contractor that designs and constructs LNC plants, announced that they were contracted by Cameron LNC, LLC to construct the Cameron Liquefaction Project in Hackberry, La…
The $6 billion contract will include procurement, engineering and construction of natural gas liquefaction and export facilities that will be added to the existing LNC regasification facility. It’s expected to create about 3,000 on-site jobs including several hundred jobs at CB&I’s fabrication facilities in Louisiana. Additionally, officials expect several hundred engineering and project management jobs at its Baton Rouge office that will support design, fabrication and construction of the new facilities.
Top US Stocks To Buy For 2015: CVR Energy Inc (CVI)
CVR Energy, Inc. (CVR Energy), incorporated September 2006, through its wholly owned subsidiaries, acts as an independent petroleum refiner and marketer of transportation fuels in the mid-continental United States. In addition, the Company, through its majority-owned subsidiaries, acts as an independent producer and marketer of nitrogen fertilizer products in North America. As of December 31, 2011, the Company owned the general partner and approximately 70% of CVR Partners, LP (the Partnership), a limited partnership which produces nitrogen fertilizers in the form of ammonia and an aqueous solution of urea and ammonium nitrate used as a fertilizer (UAN). The Company operates in two segments: the petroleum segment and the nitrogen fertilizer segment. On December 15, 2011, the Company acquired Gary-Williams Energy Corporation and its subsidiaries (GWEC).
Petroleum Business
The Company operates a 115,000 barrels per day complex full coking medium-sour crude oil refinery in Coffeyville, Kansas and, as of December 15, 2011, a 70,000 barrels per day crude oil unit refinery in Wynnewood, Oklahoma. Its combined production capacity represents approximately 15% of its region's output during the year ended December 31, 2011. The Coffeyville facility is situated on approximately 440 acres in southeast Kansas, approximately 100 miles from Cushing, Oklahoma, a crude oil trading and storage hub. The Wynnewood facility is situated on approximately 400 acres located approximately 65 miles south of Oklahoma City, Oklahoma and approximately 130 miles from Cushing, Oklahoma. During 2011, its Coffeyville refinery's product yield included gasoline (mainly regular unleaded) (44%), diesel fuel (42%), and pet coke and other refined products, such as natural gas liquids (NGL) (propane and butane), slurry, sulfur and gas oil (14%). Its Wynnewood refinery's product yield included gasoline (54%), diesel fuel (31%), asphalt (6%), jet fuel (3%) and other products (6%) during 2011.
The Company! owns and operates a crude oil gathering system serving Kansas, Oklahoma, western Missouri and southwestern Nebraska. The system has field offices in Bartlesville, Oklahoma, Plainville, Kansas and Winfield, Kansas. The system consists of approximately 350 miles of feeder and trunk pipelines, 100 trucks, and associated storage facilities for gathering sweet crude oils purchased from independent crude oil producers in Kansas, Nebraska, Oklahoma and Missouri. It also leases a section of a pipeline from Magellan Midstream Partners, L.P. (Magellan), which is incorporated into its crude oil gathering system. During 2011, the Company�� crude oil gathering system had a gathering capacity of approximately 38,000 barrels per day. During 2011, it gathered an average of approximately 35,000 barrels per day.
CVR Energy owns a pipeline system capable of transporting approximately 145,000 barrels per day of crude oil from Caney, Kansas to its refinery. Crude oils sourced outside of its gathering system are delivered by common carrier pipelines into various terminals in Cushing, Oklahoma, where they are blended and then delivered to Caney, Kansas via a pipeline owned by Plains Pipeline L.P. (Plains). The Company also owns associated crude oil storage tanks with a capacity of approximately 1.2 million barrels located outside its Coffeyville refinery, 0.5 million barrels of crude oil storage at Wynnewood, Oklahoma, and lease an additional 3.3 million barrels of storage capacity located at Cushing, Oklahoma and other locations. In addition to crude oil storage, it owns approximately 4.5 million barrels of combined refinery related storage capacity.
CVR Energy has access to foreign crude oil from Latin America, South America, West Africa, the Middle East, the North Sea and Canada. It purchases domestic crude oil from Kansas, Oklahoma, Nebraska, Texas, North Dakota, Missouri, and offshore deepwater Gulf of Mexico production. During 2011, its Coffeyville crude oil supply blend consisted of approx! imately 8! 0% light sweet crude oil, 2% light/medium sour crude oil and 18% heavy sour crude oil. During 2011, Wynnewood's crude oil supply blend consisted of approximately 88% sweet crude oil and 12% light/medium sour crude oil.
During 2011, approximately 35% of the Coffeyville refinery's products were sold through the rack system directly to retail and wholesale customers, while the remaining 65% was sold through pipelines via bulk spot and term contracts. The Company makes bulk sales (sales into third party pipelines) into the mid-continent markets via Magellan and into Colorado and other destinations utilizing the product pipeline networks owned by Magellan, Enterprise Products Operating, L.P. (Enterprise) and NuStar Energy, LP (NuStar). Approximately 60% of the Wynnewood refinery's finished products sold are distributed in Oklahoma. Customers for its petroleum products include other refiners, convenience store companies, railroads and farm cooperatives.
The Company competes with BP, Conoco Phillips, HollyFrontier, NCRA, Valero, Flint Hills Resources, CHS and Shell.
Nitrogen Fertilizer Business
The nitrogen fertilizer business, operated by the Partnership, is the nitrogen fertilizer plant in North America. It utilizes a pet coke gasification process to produce nitrogen fertilizer. The nitrogen fertilizer facility's primary input is pet coke. The nitrogen fertilizer facility includes a 1,225 ton-per-day ammonia unit, a 2,025 ton-per-day UAN unit and a gasifier complex having a capacity of 84 million standard cubic feet per day. Linde LLC (Linde) owns, operates, and maintains the air separation plant that provides contract volumes of oxygen, nitrogen and compressed dry air to the gasifier for a monthly fee.
The primary geographic markets for the nitrogen fertilizer business' fertilizer products are Kansas, Missouri, Nebraska, Iowa, Illinois, Colorado and Texas. The nitrogen fertilizer business markets the ammonia products to industrial and agricu! ltural cu! stomers and the UAN products to agricultural customers. The nitrogen fertilizer business sells ammonia to agricultural and industrial customers. Agricultural customers include distributors such as MFA, United Suppliers, Inc., Brandt Consolidated Inc., Gavilon Fertilizer LLC, Transammonia, Inc., Agri Services of Brunswick, LLC, Interchem and CHS Inc. Industrial customers include Tessenderlo Kerley, Inc., National Cooperative Refinery Association, and Dyno Nobel, Inc. The nitrogen fertilizer business sells UAN products to retailers and distributors.
The Company competes with Agrium, Koch Nitrogen, Potash Corporation and CF Industries.
Advisors' Opinion:- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, petroleum refiner CVR Energy (NYSE: CVI ) has earned a respected four-star ranking.
- [By Robert Rapier]
CVR Partners’ fertilizer plant is located in Coffeyville, Kansas, adjacent to the refinery owned by CVR Refining (NYSE: CVRR). CVR Energy (NYSE: CVI), majority-owned by Carl Icahn via Icahn Enterprises (NYSE: IEP), is the general partner and owns most of the units for both CVR Partners and CVR Refining.
- [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut. CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M
Best Energy Companies To Buy For 2014: Royal Dutch Shell PLC (RDS.B)
Royal Dutch Shell plc (Shell), incorporated on February 5, 2002, is an independent oil and gas company. The Company owns, directly or indirectly, investments in the numerous companies constituting Shell. Shell is engaged worldwide in the principal aspects of the oil and gas industry and also has interests in chemicals and other energy-related businesses. The Company operates in three segments: Upstream, Downstream and Corporate. Upstream combines the operating segments Upstream International and Upstream Americas, which are engaged in searching for and recovering crude oil and natural gas; the liquefaction and transportation of gas; the extraction of bitumen from oil sands that is converted into synthetic crude oil, and wind energy. Downstream is engaged in manufacturing; distribution and marketing activities for oil products and chemicals, in alternative energy (excluding wind), and carbon dioxide (CO2) management. Corporate represents the key support functions, comprising holdings and treasury, headquarters, central functions and Shell�� self-insurance activities. In October 2011, the Company bought a marine terminal on Canada's Pacific Coast as a possible site for a liquefied natural gas export terminal. In January 2012, the Company's 50% owned, Australia Arrow Energy Holdings Pty Ltd acquired all of the shares in Bow Energy Ltd. In January 2014, Royal Dutch Shell plc completed the acquisition of Repsol S.A.'s liquefied natural gas (LNG) portfolio outside North America.
Upstream International manages the Upstream businesses outside the Americas. It searches for and recovers crude oil and natural gas, liquefies and transports gas, and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream International also manages Shell�� entire liquefied petroleum gas (LNG) business, gas to liquids (GTL) and the wind business in Europe. Its activities are organized primarily within geographical units, although there are some activities that are mana! ged across the businesses or provided through support units.
Upstream Americas manages the Upstream businesses in North and South America. It searches for and recovers crude oil and natural gas, transports gas and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream Americas also extracts bitumen from oil sands that is converted into synthetic crude oil. Additionally, it manages the United States-based wind business. It comprises operations organized into business-wide managed activities and supporting activities.
Downstream manages Shell�� manufacturing, distribution and marketing activities for oil products and chemicals. These activities are organized into globally managed classes of business, although some are managed regionally or provided through support units. Manufacturing and supply includes refining, supply and shipping of crude oil. Marketing sells a range of products including fuels, lubricants, bitumen and liquefied petroleum gas (LPG) for home, transport and industrial use. Chemicals produces and markets petrochemicals for industrial customers, including the raw materials for plastics, coatings and detergents. Downstream also trades Shell�� flow of hydrocarbons and other energy-related products, supplies the Downstream businesses, markets gas and power and provides shipping services. Downstream additionally oversees Shell�� interests in alternative energy (including biofuels, and excluding wind) and CO2 management.
Projects and Technology manages the delivery of Shell�� major projects and drives the research and innovation to create technology solutions. It provides technical services and technology capability covering both Upstream and Downstream activities. It is also responsible for providing functional leadership across Shell in the areas of health, safety and environment, and contracting and procurement.
Advisors' Opinion:- [By Sara Sjolin]
Oil firms were rising, tracking oil prices higher. Shares of BG Group PLC (UK:BG) �picked up 0.8%, BP PLC (UK:BP) � (BP) �added 0.6% and Royal Dutch Shell PLC (UK:RDSB) � (RDS.B) �inched 0.1% higher.
- [By Sara Sjolin]
In the energy sector, shares of BP PLC (UK:BP) � (BP) �fell 0.7% and Royal Dutch Shell PLC (UK:RDSB) � (RDS.B) �dropped 0.6%.
- [By Vinay Singh]
Natural gas isn't as cheap as it was a year ago and that's leading to big changes in the energy market. That will be a good thing for Ultra Petroleum (UPL), Royal Dutch Shell (RDS.B) and Alliance Natural Resource Partners (ARLP).
Best Energy Companies To Buy For 2014: ENSCO plc(ESV)
Ensco plc, together with its subsidiaries, provides offshore contract drilling services to the oil and gas industry. The company engages in the drilling of offshore oil and natural gas wells by providing its drilling rigs and crews under contracts with international, government-owned, and independent oil and gas companies. As of February 15, 2010, it owned and operated 42 jackup rigs, 4 ultra-deepwater semisubmersible rigs, and 1 barge rig. The company also has 4 ultra-deepwater semisubmersible rigs under construction. It operates in Asia, the Middle East, Australia, New Zealand, Europe, Africa, and North and South America. The company was formerly known as Ensco International plc and changed its name to Ensco plc in March 2010. Ensco plc was founded in 1975 and is based in London, the United Kingdom.
Advisors' Opinion:- [By Ben Levisohn]
As a result, Gerry cut Atwood Oceanics, Ensco (ESV) and Noble Energy (NE) to Market Perform from Outperform. He raised Rowan (RDC) to Outperform from Market Perform. Rowan was also a favorite of Barclays.
- [By Travis Hoium]
Noble isn't the only company betting big on new ultra-deepwater rigs for growth. Transocean (NYSE: RIG ) has seven rigs under construction, Ensco (NYSE: ESV ) has four, and SeaDrill (NYSE: SDRL ) has a whopping nine new ultra-deepwater rigs being built. If dayrates of $600,000 per day can be maintained despite the increased supply, these companies could see $219 million in additional revenue for each new rig.�
- [By Travis Hoium]
The question for investors is if the industry can handle all of this new capacity over the long term. Transocean (NYSE: RIG ) �has seven new ultra-deepwater rigs under construction,�Ensco (NYSE: ESV ) �is building four, and Noble (NYSE: NE ) �will add five in coming years. Adding that much capacity means that $600,000 daily rates may not last forever, which would lower return on investment for everyone.�
Best Energy Companies To Buy For 2014: Willbros Group Inc (WG)
Willbros Group, Inc. (Willbros) is a full service engineering and construction company specializing in energy infrastructure serving the oil and gas and power industries. The Company's services include engineering, procurement and construction (individually or as an integrated engineering, procurement and construction (EPC) offering), project management, maintenance and lifecycle extension services. As of December 31, 2011, the Company operated through three business segments: Upstream Oil & Gas, Downstream Oil & Gas and Utility Transmission and Distribution (Utility T&D), primarily in the United States, Canada and Oman. In January 2012, the Company changed its organization and includes three segments: Oil & Gas, Utility T&D and Canada. During 2011, the Company opened an office in the Houston Ship Channel. On October 11, 2011, the Company completed the sale of all assets and operations of InterCon Construction Inc., a non-strategic subsidiary within the Utility T&D segment.
Upstream Oil & Gas
The Company's core services include the design, construction, and maintenance of hydrocarbon transportation systems. The Company provides a full range of services for the engineering, design, procurement and construction of processing, pumping, compression and metering facilities. It focuses on building these facilities in the North American oil and gas market.
The Company's core services include the design, construction, and maintenance of hydrocarbon transportation systems. The Company provides a full range of services for the engineering, design, procurement and construction of processing, pumping, compression and metering facilities. It focuses on building these facilities in the North American oil and gas market.
The Company�� engineering services include project development, conceptual design, front-end engineering and feasibility studies; project engineering services; definitive design and drafting services; project management, estimating, scheduling! and controls; turnkey EPC arrangements; field engineering and construction liaison services; material and services procurement; planning and management of integrity and maintenance programs, and topographic, hydrographic and engineering as-built surveying, including the establishment of rights-of-way for public utilities and industrial uses. These services are furnished to a number of oil, gas, and pipeline transportation clients on a stand-alone basis, as well as part of EPC contracts undertaken by the Company.
In addition to capital projects, the Company offers its upstream infrastructure construction facilities to its clients through its management and maintenance offerings. The Company operates its fabrication services in Tulsa, Oklahoma and Alberta, Canada.
Downstream Oil & Gas
The Company provides integrated, full-service specialty construction, turnaround, repair and maintenance services, including EPC services, to the downstream energy infrastructure markets, which consists primarily of integrated oil companies, independent refineries, product terminals and petrochemical companies. The Company provides these services primarily in the United States. The Company's principal services include construction, maintenance and turnaround services for downstream facilities, including revamp/reconditioning of fluid catalytic cracking (FCC) units; tank services for construction, maintenance or repair of petroleum storage tanks, typically located at pipeline terminals and refineries; multi-disciplinary engineering services to clients in the petroleum refining, chemicals and petrochemicals and oil and gas industries, and EPC services through program management and EPC project services. The Company�� construction, maintenance and turnaround services include refractory services, furnace re-tube and revamp projects, stainless and alloy welding services and heavy rigging and equipment setting.
The Company provides services to the above-ground storage tank i! ndustry. ! The Company's capabilities include American Petroleum Institute (API) compliant tank maintenance and repair; floating roof seals; floating roof installations and repairs; secondary containment bottoms, cone roof and structure replacements, and new API compliant aboveground storage tanks. The Company provides these services as stand-alone or in combination, including EPC solutions.
The Company provides project management, engineering and material procurement services to the refining industries and government agencies, including chemical/process, mechanical, civil, structural, electrical, instrumentation/controls and environmental through its subsidiary, Wink Companies, LLC (Wink). The Company provides its engineering services through resources located at the project site or at its offices in Louisiana.
Utility T&D
The Company provides a range of services in electric and natural gases transmission and distribution, including comprehensive maintenance and construction, repair and restoration of utility infrastructure. It maintains and constructs overhead and underground transmission lines. Overhead transmission services include the installation, maintenance and repair of transmission structures involving wood, concrete, steel pole and steel lattice tower configurations. Underground transmission services include the installation and maintenance of underground transmission cable and its associated duct, conduit and manhole systems. Electric power transmission also includes substation services, which includes the maintenance, construction, expansion, calibration and testing of electric power substations and components.
The Company maintains, construct and upgrade underground and overhead electric power distribution lines to household voltage levels. The Company's services consists of electric power distribution systems, including primary and secondary voltage cables, wood and steel poles, transformers, switchgear, capacitors, underground duct, manhole syst! ems, resi! dential and commercial and electric meter installation.
The Company offers two complementary services to utilities and industrial companies for the restoration of electrical power cables and the condition assessment of electrical cable systems. It includes CableCURE and CableWISE. CableCURE is a process for the restoration of aged electric power cables. CableWISE is an online electrical system-condition assessment process that enables electric power utilities and a range of commercial and industrial facilities to evaluate the condition of cable systems, transformers and switchgear. The Company provides a spectrum of natural gas T and D services, from the maintenance and construction of large diameter transmission pipelines through the installation of residential natural gases service. The Company constructs, maintain and upgrade natural gases distribution pipelines. The Company's services include trenching, transporting, welding or fusing and laying pipe, post-construction integrity testing, site restoration and meter setting.
The Company provides other specialty services to customers nationwide. These services include utility-line locating, stray voltage and gas leak detection and telecommunications.
The Company competes with Quanta Services, MasTec, Primoris, Associated Pipeline Contractors, Sheehan Pipeline Construction, U.S. Pipeline, Welded Construction, Henkels & McCoy, Michels Corporation, North American Energy Services, Flint Energy Services, Ledcor, Sunland, Dyess, Jomax, CH2M Hill, Gulf Interstate, Universal Pegasus, Trigon, Mustang Engineering, ENGlobal, AltairStrickland, JV Industrial Companies, Plant Performance Services, KBR, Chicago Bridge & Iron, Matrix Services, MYR Group, Pike Electric and Miller Pipeline.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of Willbros Group (NYSE: WG ) were shining today, gaining as much as 16% after the energy services firm boosted its profit estimate for the current quarter.
Best Energy Companies To Buy For 2014: Alon USA Partners LP (ALDW)
Alon USA Partners, LP (Alon USA), incorporated on August 17, 2012, owns and operates refining and petroleum products marketing business. Its integrated downstream business operates primarily in the South Central and Southwestern regions of the United States. It owns and operates a crude oil refinery in Big Spring, Texas with total throughput capacity of approximately 70,000 barrels per day (bpd). The crude oil pipelines the Company utilizes consist of the Amdel, White Oil, Mesa Interconnect, Centurion and Centurion Interconnect. Its Big Spring refinery produces ultra-low sulfur gasoline, ultra-low sulfur diesel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt and other petroleum products.
During the year ended December 31, 2011 and the six months ended June 30, 2012, sour crude, such as West Texas Sour (WTS), represented approximately 80.4% and 80.4% of its throughput, respectively, and sweet crude, such as West Texas Intermediate (WTI), represented approximately 15.8% and 17.1% of its throughput, respectively. For the year ended December 31, 2011 and the six months ended June 30, 2012, the Company produced approximately 49.1% and 49.2% gasoline, 32.3% and 32.5% diesel/jet fuel, 7.1% and 6.4% asphalt, 6.0% and 6.0% petrochemicals and 5.5% and 5.9% other refined products, in each case, respectively. The Company distributes fuel products through a product pipeline and terminal network of seven pipelines totaling approximately 840 miles and six terminals that it owns or access.
The Company competes with Chevron, ExxonMobil and Shell.
Advisors' Opinion:- [By Tom Dorsey]
Over a several day period, I submitted questions and Mr. Eisman, President, Chief Executive Officer and Director of Alon USA Energy Inc. (ALJ) and the parent company of Alon USA Partners LP Inc. (ALDW) responded. He provided some key insights to some challenges the company faces, where the company is going, and the opportunities available in the future. This insight should provide investors with additional information to understand the value of the company and the opportunity as an investor in the company.
- [By Robert Rapier] In last week’s issue I discussed the basics of the refining sector. Today I will provide an overview of four MLPs that hold refining assets.
To review, the refining sector was very profitable in 2012 thanks to unusually high crack spreads, which for many US refiners are approximated by the price differential between Brent and West Texas Intermediate (WTI) crude oils. For a more thorough explanation of this phenomenon, please refer to last week’s issue.
After years of trading at a $1 to $3 per barrel discount to WTI, Brent began fetching a premium a few years ago as a glut of crude developed in the mid-continent area of the US. In 2011 the Brent-WTI price differential increased to more than $25/bbl, and it remained historically high in 2012.
But pipeline capacity started to catch up this year, and the share prices of refiners retreated as the glut began to dissipate and the Brent-WTI differential shrank. In Q3 2012, the Brent-WTI differential averaged $17.43/bbl, but by Q3 of this year, the differential had fallen to $4.43/bbl. This promises bad news for refiners about to report Q3 earnings.
Many analysts downgraded the refining sector in Q3, but as the differential fell below $5/bbl it was hard to imagine that the news could get much worse. With poor Q3 results largely priced in, the differential subsequently rose back above $10/bbl, signaling better refining margins moving into Q4.
Refiners began to post earnings this past week, and as expected they were weak. Valero (NYSE: VLO) reported slightly higher revenues year-over-year, but net earnings fell more than 50 percent from a year ago. Nevertheless, they beat the extremely pessimistic expectations of analysts, and Valero shares rose on the news.
Phillips 66’s (NYSE: PSX) refining unit actually posted a loss, but its chemical business turned in a solid quarter which more than compensated for the disappointing refining results.
The rest of the refine - [By Robert Rapier]
I warned last week that refiners would report relatively poor earnings for Q3, and refinery MLPs could take a hit, presenting a buying opportunity. On Nov. 6 Alon USA Partners (NYSE: ALDW) reported a loss for the third quarter of $16.1 million, or ($0.26) per unit, compared with net income of $120.4 million for the same period last year. Paul Eisman, CEO and president, cited the deteriorating margins that I discussed in last week’s issue: “Our third quarter results were impacted by a volatile and deteriorating margin environment resulting primarily from decreasing discounts for West Texas crude oil.”
- [By Ben Levisohn]
How bad has this week been? Marathon Petroleum has fallen 4.3% through yesterday’s close, while HollyFrontier has dropped 2.5%, Valero Energy (VLO) has declined 3.5% and Alon USA Partners (ALDW) has slipped 5.7%. Western Refining (WNR) has weathered the selling and has ticked down just 0.3%.
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