Oil refiner and marketer Western Refining Inc. (WNR) provided an interim update on fourth-quarter 2014 results and gave an operational guidance for first-quarter 2015. Following the update, shares of Western Refining gained about 3% on the NYSE.
The company expects fourth-quarter earnings, excluding items like hedging gains, market inventory and asset sale adjustments, to range between $1.08 and $1.14. This marks a substantial improvement from the year-ago quarter adjusted earnings of 60 cents.
Moreover, the company added that for first-quarter 2015, it expects throughput from the El Paso refinery to be between 133,000 barrels per day (Bbl/d) and 137,000 Bbl/d. Meanwhile, Gallup refinery throughput is anticipated to be between 26,500 Bbl/d and 28,500 Bbl/d.
Western Refining, headquartered in El Paso, TX, is an independent refiner and marketer of refined petroleum products in the Southwestern and Mid-Atlantic regions of the U.S. A major advantage for the company is its proprietary access to pipelines, which inhibits lower-cost competitors from supplying Western Refining's key markets. However, with volatile industry fundamentals and limited geographic diversification, near-term upside may be limited.
Western Refining is expected to release fourth-quarter result on Feb 26, 2015. The anticipated fourth-quarter earnings announced by the company compares positively with the current Zacks Consensus Estimate of 86 cents per share.
The company has surpassed the Zacks Consensus Estimate in three of the tailing four quarters with an average positive surprise of 6.93%. With a Zacks Rank #3 (Hold) and a positive Earnings ESP, another beat is likely.
Better-ranked players from the industry include World Fuel Services Corp. (INT), Global Partners LP (GLP) and Tesoro Corp. (TSO). While World Fuel Services sports a Zacks Rank #1 (Strong Buy), Global Partners and Tesoro Corp hold a Zacks Rank #2 (Buy).
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