PBF Energy Inc (PBF): Is It Time to Buy This Under-the-Radar Refiner?

PBF Energy Inc (NYSE:PBF) delivered an average of 17,000 barrels per day of Canadian heavy crude by rail in the first quarter, and 38,000 barrels of Bakken crude, totaling 55,000 barrels per day via rail. The Bakken deliveries have already increased to 70,000 bpd, and second-quarter deliveries should reach 80,000 bpd, before hitting 100,000 bpd by the end of the year. Similarly, the Canadian crude volumes are expected to reach 24,000 bpd in the second quarter, before hitting 80,000 bpd by the end of the first quarter of 2014.

This is huge, and higher volumes of cheaper crude will go a long way toward driving up gross margin per East Coast barrel. Management is expecting improved results from East Coast operations in the second quarter.

Buy or watch?
There are external factors that affect PBF that investors can’t know or control, like oil prices, but there really is a lot to like about the future of PBF Energy Inc (NYSE:PBF), including the increase of domestic feedstock at its East Coast refineries, and the fact that PBF is ramping up its export game. The refiner expects to consistently ship 20,000-25,000 bpd of middle distillate to foreign markets. One last thing to keep in your back pocket: PBF is exploring the potential for a midstream spin-off, which could result in yet another revenue stream, as well as an additional investment opportunity for those who love master limited partnerships.

Given all of this, I would say at the very least PBF Energy Inc (NYSE:PBF) presents an incredibly intriguing opportunity right now, and interested investors should get cracking on their research.

The article Is It Time to Buy This Under-the-Radar Refiner? originally appeared on Fool.com.

Motley Fool contributor Aimee Duffy has no position in any stocks mentioned. If you have the energy, follow her on Twitter, where she goes by @TMFDuffy. The Motley Fool has no position in any of the stocks mentioned.

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