They do very well
when the price of crude is low. Low prices means they can refine more oil, so,
apart from the initial hit on inventory, future profit opportunities are
strong. People also tend to buy more gas when oil is low, so there's more
demand for the refineries.
My latest research
focus was the Asset Management, Industrial and finally the Energy Sector.
Within the Energy
sector, companies from the downstream segment like Oil refinery stocks look
attractive for me. They do not depend highly on the oil price, more on the
cracking margin.
The business of
the refining players is negatively correlated with crude prices. This is
because the companies use oil as an input from which they derive refined
petroleum products like gasoline – the prime transportation fuel in the U.S.
Hence, lower the oil price, higher will be their profits.
We can say that
the decline in crude price, which is expected to continue for some time, will
bring more good news for the firms engaged in refining oil.
This means not
that downstream companies are better when the oil price slumps. My research
result of the past decade was that they also lose value and they are highly
volatile.
In 2008, the year of the financial crisis, the portfolio of the best refinery dividend paying oil stocks lost more than half of its value. After the sell-off, it tripled its value.
In 2008, the year of the financial crisis, the portfolio of the best refinery dividend paying oil stocks lost more than half of its value. After the sell-off, it tripled its value.
Attached is a list
of 12 dividend paying oil refinery stocks that gave investors a great past
return. Over the last decade, those stocks delivered a 12.26% average yearly
return.
The biggest threat
is in my view the possibility of a political change in the energy sector. Do
politicians want more renewable energy production or put they more money into
jobs and growth via the old systems.
Energy is
definitely the most important sector that benefits when growth should be
created for the economy.
CVR Refining -- Yield: 12.89%
CVR Refining (NYSE:CVRR) employs 982 people, generates revenue of $8,829.70 million and has a net income of $358.70 million. The current market capitalization stands at $3.03 billion.CVR Refining’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $329.70 million. The EBITDA margin is 3.73% (the operating margin is 2.35% and the net profit margin 4.06%).
Financials: The total debt represents 24.05% of CVR Refining assets and the total debt in relation to the equity amounts to 40.09%. Due to the financial situation, a return on equity of 24.14% was realized by CVR Refining.
Twelve trailing months earnings per share reached a value of $1.27. Last fiscal year, CVR Refining paid $2.93 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.39, the P/S ratio is 0.34 and the P/B ratio is finally 2.09. The dividend yield amounts to 12.89%.
Stock Charts:
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| Long-Term Stock Price Chart of CVR Refining (CVRR) |
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| Long-Term Dividend Payment History of CVR Refining (CVRR) |
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| Long-Term Dividend Yield History of CVR Refining (CVRR) |
CVR Energy -- Yield: 4.67%
CVR Energy (NYSE:CVI) employs 1,298 people, generates revenue of $9,109.50 million and has a net income of $309.40 million. The current market capitalization stands at $3.72 billion.CVR Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $418.70 million. The EBITDA margin is 4.60% (the operating margin is 2.90% and the net profit margin 3.40%).
Financials: The total debt represents 19.49% of CVR Energy assets and the total debt in relation to the equity amounts to 68.30%. Due to the financial situation, a return on equity of 15.98% was realized by CVR Energy.
Twelve trailing months earnings per share reached a value of $1.39. Last fiscal year, CVR Energy paid $3.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.56, the P/S ratio is 0.41 and the P/B ratio is finally 3.76. The dividend yield amounts to 4.67%.
Stock Charts:
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| Long-Term Stock Price Chart of CVR Energy (CVI) |
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| Long-Term Dividend Payment History of CVR Energy (CVI) |
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| Long-Term Dividend Yield History of CVR Energy (CVI) |
PBF Energy -- Yield: 3.73%
PBF Energy (NYSE:PBF) employs 1,714 people, generates revenue of $19,828.15 million and has a net income of $78.27 million. The current market capitalization stands at $3.25 billion.PBF Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $191.95 million. The EBITDA margin is 0.97% (the operating margin is 0.76% and the net profit margin 0.39%).
Financials: The total debt represents 24.25% of PBF Energy assets and the total debt in relation to the equity amounts to 103.46%. Due to the financial situation, a return on equity of -4.08% was realized by PBF Energy.
Twelve trailing months earnings per share reached a value of $0.55. Last fiscal year, PBF Energy paid $1.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 58.84, the P/S ratio is 0.16 and the P/B ratio is finally 2.17. The dividend yield amounts to 3.73%.
Stock Charts:
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| Long-Term Stock Price Chart of PBF Energy (PBF) |
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| Long-Term Dividend Payment History of PBF Energy (PBF) |
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| Long-Term Dividend Yield History of PBF Energy (PBF) |
Alon USA Energy -- Yield: 3.68%
Alon USA Energy (NYSE:ALJ) employs 2,745 people, generates revenue of $6,779.46 million and has a net income of $69.87 million. The current market capitalization stands at $1.16 billion.Alon USA Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $420.74 million. The EBITDA margin is 6.21% (the operating margin is 2.97% and the net profit margin 1.03%).
Financials: The total debt represents 25.61% of Alon USA Energy assets and the total debt in relation to the equity amounts to 88.51%. Due to the financial situation, a return on equity of 6.23% was realized by Alon USA Energy.
Twelve trailing months earnings per share reached a value of $1.53. Last fiscal year, Alon USA Energy paid $0.53 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.80, the P/S ratio is 0.17 and the P/B ratio is finally 1.79. The dividend yield amounts to 3.68%.
Stock Charts:
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| Long-Term Stock Price Chart of Alon USA Energy (ALJ) |
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| Long-Term Dividend Payment History of Alon USA Energy (ALJ) |
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| Long-Term Dividend Yield History of Alon USA Energy (ALJ) |
Western Refining -- Yield: 3.04%
Western Refining (NYSE:WNR) employs 5,700 people, generates revenue of $15,153.57 million and has a net income of $710.07 million. The current market capitalization stands at $4.28 billion.Western Refining’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,018.73 million. The EBITDA margin is 6.72% (the operating margin is 7.24% and the net profit margin 4.69%).
Financials: The total debt represents 27.24% of Western Refining assets and the total debt in relation to the equity amounts to 138.25%. Due to the financial situation, a return on equity of 55.61% was realized by Western Refining.
Twelve trailing months earnings per share reached a value of $5.68. Last fiscal year, Western Refining paid $1.08 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.86, the P/S ratio is 0.28 and the P/B ratio is finally 3.84. The dividend yield amounts to 3.04%.
Stock Charts:
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| Long-Term Stock Price Chart of Western Refining (WNR) |
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| Long-Term Dividend Payment History of Western Refining (WNR) |
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| Long-Term Dividend Yield History of Western Refining (WNR) |
Phillips 66 -- Yield: 2.73%
Phillips 66 (NYSE:PSX) employs 14,000 people, generates revenue of $161,212.00 million and has a net income of $4,091.00 million. The current market capitalization stands at $44.17 billion.Phillips 66’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,302.00 million. The EBITDA margin is 2.67% (the operating margin is 1.96% and the net profit margin 2.54%).
Financials: The total debt represents 17.82% of Phillips 66 assets and the total debt in relation to the equity amounts to 40.22%. Due to the financial situation, a return on equity of 18.60% was realized by Phillips 66.
Twelve trailing months earnings per share reached a value of $7.76. Last fiscal year, Phillips 66 paid $1.89 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.63, the P/S ratio is 0.27 and the P/B ratio is finally 2.08. The dividend yield amounts to 2.73%.
Stock Charts:
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| Long-Term Stock Price Chart of Phillips 66 (PSX) |
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| Long-Term Dividend Payment History of Phillips 66 (PSX) |
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| Long-Term Dividend Yield History of Phillips 66 (PSX) |
HollyFrontier -- Yield: 2.68%
HollyFrontier (NYSE:HFC) employs 2,686 people, generates revenue of $19,764.33 million and has a net income of $326.33 million. The current market capitalization stands at $9.28 billion.HollyFrontier’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $852.10 million. The EBITDA margin is 4.31% (the operating margin is 2.57% and the net profit margin 1.65%).
Financials: The total debt represents 11.43% of HollyFrontier assets and the total debt in relation to the equity amounts to 19.10%. Due to the financial situation, a return on equity of 4.87% was realized by HollyFrontier.
Twelve trailing months earnings per share reached a value of $2.79. Last fiscal year, HollyFrontier paid $3.26 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.60, the P/S ratio is 0.47 and the P/B ratio is finally 1.75. The dividend yield amounts to 2.68%.
Stock Charts:
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| Long-Term Stock Price Chart of HollyFrontier (HFC) |
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| Long-Term Dividend Payment History of HollyFrontier (HFC) |
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| Long-Term Dividend Yield History of HollyFrontier (HFC) |
Marathon Petroleum -- Yield: 2.62%
Marathon Petroleum (NYSE:MPC) employs 45,340 people, generates revenue of $98,081.00 million and has a net income of $2,555.00 million. The current market capitalization stands at $26.15 billion.Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,356.00 million. The EBITDA margin is 5.46% (the operating margin is 4.13% and the net profit margin 2.60%).
Financials: The total debt represents 21.70% of Marathon Petroleum assets and the total debt in relation to the equity amounts to 61.41%. Due to the financial situation, a return on equity of 23.26% was realized by Marathon Petroleum.
Twelve trailing months earnings per share reached a value of $5.76. Last fiscal year, Marathon Petroleum paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.43, the P/S ratio is 0.27 and the P/B ratio is finally 2.48. The dividend yield amounts to 2.62%.
Stock Charts:
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| Long-Term Stock Price Chart of Marathon Petroleum (MPC) |
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| Long-Term Dividend Payment History of Marathon Petroleum (MPC) |
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| Long-Term Dividend Yield History of Marathon Petroleum (MPC) |
Valero Energy -- Yield: 2.57%
Valero Energy (NYSE:VLO) employs 10,065 people, generates revenue of $130,844.00 million and has a net income of $3,775.00 million. The current market capitalization stands at $30.90 billion.Valero Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,362.00 million. The EBITDA margin is 6.39% (the operating margin is 4.51% and the net profit margin 2.89%).
Financials: The total debt represents 14.02% of Valero Energy assets and the total debt in relation to the equity amounts to 30.88%. Due to the financial situation, a return on equity of 18.40% was realized by Valero Energy.
Twelve trailing months earnings per share reached a value of $8.72. Last fiscal year, Valero Energy paid $1.05 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.04, the P/S ratio is 0.24 and the P/B ratio is finally 1.55. The dividend yield amounts to 2.57%.
Stock Charts:
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| Long-Term Stock Price Chart of Valero Energy (VLO) |
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| Long-Term Dividend Payment History of Valero Energy (VLO) |
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| Long-Term Dividend Yield History of Valero Energy (VLO) |
Delek US Holdings -- Yield: 2.35%
Delek US Holdings (NYSE:DK) employs 4,361 people, generates revenue of $8,324.30 million and has a net income of $226.00 million. The current market capitalization stands at $1.62 billion.Delek US Holdings’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $587.10 million. The EBITDA margin is 7.05% (the operating margin is 4.40% and the net profit margin 2.71%).
Financials: The total debt represents 20.40% of Delek US Holdings assets and the total debt in relation to the equity amounts to 58.87%. Due to the financial situation, a return on equity of 20.51% was realized by Delek US Holdings.
Twelve trailing months earnings per share reached a value of $2.37. Last fiscal year, Delek US Holdings paid $0.60 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.00, the P/S ratio is 0.19 and the P/B ratio is finally 1.46. The dividend yield amounts to 2.35%.
Stock Charts:
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| Long-Term Stock Price Chart of Delek US Holdings (DK) |
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| Long-Term Dividend Payment History of Delek US Holdings (DK) |
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| Long-Term Dividend Yield History of Delek US Holdings (DK) |
Tesoro Corporation -- Yield: 2.00%
Tesoro Corporation (NYSE:TSO) employs 5,600 people, generates revenue of $40,633.00 million and has a net income of $917.00 million. The current market capitalization stands at $12.32 billion.Tesoro Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,654.00 million. The EBITDA margin is 6.53% (the operating margin is 4.02% and the net profit margin 2.26%).
Financials: The total debt represents 25.27% of Tesoro Corporation assets and the total debt in relation to the equity amounts to 93.56%. Due to the financial situation, a return on equity of 19.92% was realized by Tesoro Corporation.
Twelve trailing months earnings per share reached a value of $10.19. Last fiscal year, Tesoro Corporation paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.72, the P/S ratio is 0.30 and the P/B ratio is finally 2.81. The dividend yield amounts to 2.00%.
Stock Charts:
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| Long-Term Stock Price Chart of Tesoro Corporation (TSO) |
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| Long-Term Dividend Payment History of Tesoro Corporation (TSO) |
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| Long-Term Dividend Yield History of Tesoro Corporation (TSO) |
Hess -- Yield: 1.66%
Hess (NYSE:HES) employs 3,045 people, generates revenue of $10,616.00 million and has a net income of $1,692.00 million. The current market capitalization stands at $17.30 billion.Hess’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,190.00 million. The EBITDA margin is 48.89% (the operating margin is 18.24% and the net profit margin 15.94%).
Financials: The total debt represents 15.52% of Hess assets and the total debt in relation to the equity amounts to 26.96%. Due to the financial situation, a return on equity of 6.97% was realized by Hess.
Twelve trailing months earnings per share reached a value of $-1.91. Last fiscal year, Hess paid $1.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 1.63 and the P/B ratio is finally 0.78. The dividend yield amounts to 1.66%.
Stock Charts:
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| Long-Term Stock Price Chart of Hess (HES) |
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| Long-Term Dividend Payment History of Hess (HES) |
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| Long-Term Dividend Yield History of Hess (HES) |
