![PBF logo.](/sites/default/files/styles/hart_news_article_image_640/public/image/2022/12/shutterstock-1871116795.jpg?itok=XtDqf0ta)
PBF Energy logo on a smartphone. (Source: Shutterstock)
Independent refiner PBF Energy Inc. revealed that its board of directors has authorized the buyback of up to $500 million of PBF Class A common stock.
PBF isn’t obligated to purchase any shares under the repurchase program, and repurchases may be suspended or discontinued at any time without prior notice, the New Jersey-based refiner announced Dec. 12 in a press release.
“We did not predict a return to share repurchases so quickly and consider this an upside surprise,” Wells Fargo analysts Roger D. Read, Lauren Hendrix Walker and Rosalie Chen wrote Dec. 12 in a research report. “Combined with the recent achievement of zero net debt and the dividend restatement of $0.20/share announced during the third quarter 2022 earnings, this announcement presents additional upside for the refiner.”
The deal represents approximately 10% of PBF’s equity market capitalization, according to Wells Fargo.
“We forecast PBF to return approximately $108 million to shareholders in the form of dividends and $250 million in buybacks in 2023. This amounts to returning approximately 45% of 2023 estimated gross free cash flow. Based on our assumed pace of share repurchases, the $500 million authorization should be completed in 2024,” the analysts said.
Recommended Reading
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
Enverus Names Manuj Nikhanj as New CEO
2024-05-29 - Enverus President Manuj Nikhanj will take over as CEO of the top energy analytics firm on July 1, succeeding Jeff Hughes, who will continue as executive chairman.
PGS Gets Greenlight to Begin Surveying for Petrobras 4D Contract
2024-05-30 - After a long permitting process, PGS has secured the last permit needed to begin its large 4D survey contract with Petrobras at the Barracuda-Caratinga field offshore Brazil.