Oil refiner and marketer Western Refining Inc.’s WNR fourth-quarter 20Array5 earnings per share (excluding special items) came in at 56 cents. The bottom line not only missed the Zacks Consensus Estimate of 65 cents per share but also decreased from the year-ago adjusted figure of $Array.Array9 on lower refining margins.
Quarterly net sales of $2,070.3 million lagged the Zacks Consensus Estimate of $2,Array24 million and also decreased 3Array.6% from the year-ago quarter level.
Refining Segment: Analysis
Throughput: Total refining throughput averaged Array53,470 barrels per day (Bbl/d) as against Array58,23Array Bbl/d in the year-ago quarter. Overall, throughput volumes at the El Paso refinery decreased Array.4% year over year to Array27,858 Bbl/d. The Gallup unit, on the other hand, recorded throughput volumes of 25,6Array2Bbl/d, down Array0.5% from the year-earlier level.
Refining Margins: Gross refining margin recorded a year-over-year decline from $22.Array3 to $9.82 per barrel. Geographically, refining margin plunged 36.3% to $9.55 per barrel at El Paso and decreased nearly Array7.9% to $Array3.6Array per barrel at Gallup.
Operating Expenses: Direct operating expenses at El Paso averaged $4.22 per barrel, down 7.3% year over year. However, direct operating expenses at Gallup increased about 8.9% year over year to $8.6 per barrel. Combined direct operating expenses at Western Refining’s units were $5.49 per barrel for the three months ended Dec 3Array, 20Array5. This is lower than $5.56 per barrel recorded in the year-ago period.
Capital Expenditure & Balance Sheet
Headquartered in El Paso, TX, Western Refining’s total capital spending during the quarter was $94.9 million, much higher than $76 million in the fourth quarter of 20Array4. As of Dec 3Array, 20Array5, Western Refining had cash and cash equivalents of $772.5 million and total debt of approximately $Array,650.3 million. This represents a debt-to-capitalization ratio of 35.9%.
Dividend & Share Repurchases
In 20Array5, the company returned roughly $234 million to its shareholders through dividends and share repurchases.
Zacks Rank and Other Key Picks
Western Refining currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the energy space SunPower Corporation SPWR, SolarEdge Technologies, Inc. SEDG and Braskem S.A. BAK. All these stocks sport a Zacks Rank #Array(Strong Buy).
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