Oil refiner and marketer Western Refining Inc. (WNR) reported weaker-than-expected third quarter results, pulled down by lower margins and throughput on the back of weak fuel demand and high inventories caused by the prolonged economic slowdown. This was partially offset by lower costs and expenses. Its loss per share came in at 5 cents, wider than the Zacks Consensus Estimate of 3 cents. In the year-ago period, the Texas-based company earned $1.60 per share. Revenues were down 40.1% year over year to $1.9 billion. Western follows larger rivals Valero Energy Corp. (VLO) and Sunoco Inc. (SUN) that also posted bigger-than-expected losses. Refining Segment Results Western’s refining segment experienced a significant decline in operating income (operating income of $22.2 million vs. $180.8 million in the year-earlier quarter), adversely impacted by weak values for finished products, relative to crude and other feedstock prices. Throughput...

American Refiners Have a Problem… And the Government is Making it Worse

by Sheena Martin, Investment U Contributing Editor

America’s refining companies are under severe financial pressure.

As the recession has blanketed the markets, demand for petroleum products has collapsed, causing refiners to scale back production.

And a bill currently working its way through Congress could also have an adverse effect. Democrats support less reliance on foreign crude, but the hotly debated Climate Change bill would do just the opposite. The burden of carbon cap-and-trade provisions for refiners makes it reasonable for U.S. companies to consider moving production overseas.

Why? Because foreign refiners will enjoy a significant cost advantage. Assuming even a modest carbon allowance of $26 per ton, the American refining industry will be spending an additional $58 billion annually.

And recent studies put this closer to

...

Earlier today, Valero Energy Corp. (VLO) -- the largest independent refiner in the U.S. -- reported a weaker-than-expected third-quarter 2009 loss, reflecting depressed refining margins and lower throughput on the back of weak fuel demand and high inventories. This was partially offset by lower operating costs. The loss per share, excluding one-time items, came in at 39 cents, well below the Zacks Consensus Estimate of 26 cents. In the year-ago period, the Texas-based marketer of petroleum products earned $1.91 per share. Revenue was down 45.8% year-over-year to $19.5 billion. Operating loss for the quarter was $579 million ($162 million excluding one-time items), compared to operating income of $1.8 billion ($1.6 billion excluding one-time items) in the year-earlier quarter. The main factors causing the operating loss were lower diesel and jet fuel margins, coupled with smaller discounts on sour crude oil and other feedstocks. Throughput Volume...

Plains All American Pipeline L.P. (PAA) yesterday announced the acquisition of certain pipelines, a manifold system and approximately 400,000 barrels of crude oil storage capacity from Holly Corporation (HOC) for $40 million. The deal includes 6 tanks, 9 receiving pipelines and related assets and contract rights located at or associated with Holly’s Tulsa, Oklahoma refinery.  Apart from the sale, the companies entered into a tank lease and throughput agreement, allowing Holly to use the acquired tankage for a monthly payment and pipelines for a fee. Holly will maintain ownership of the remaining 2.8 million barrels of intermediate and finished petroleum product tankage that was acquired as part of Holly's Tulsa refinery acquisition from Sunoco in June 2009.  Plains and Holly have also agreed to work together to identify and capture contango storage opportunities.  Plains All American Pipeline L.P. is a publicly traded master limited ...

Earlier this week, Chevron Corp. (CVX) – the second-biggest U.S. oil company – announced the discovery of a new offshore natural gas site (Achilles-1) in Western Australia ’s Carnarvon Basin . The discovery builds on the integrated energy giant’s leading position in this hydrocarbon-rich area and follows the Clio-2 and the Kentish Knock-1 finds in August. Drilled to a total depth of 4,500 meters, the Achilles-1 well encountered 100 meters of net gas pay. The find is situated in the WA-374-P permit area (in the Greater Gorgon region), 160 kilometers off the coast of northwest Australia . Chevron Australia has a 50% operated interest in the prospect, with the other partners being ExxonMobil Corp. (XOM) and Royal Dutch Shell PLC (RDS.A). We believe that the latest exploration success will boost Chevron’s growth prospects in Australia by adding to its already significant gas interests in ...

This post is a guest contribution by Dian Chu*, market analyst, trader and author of the Economic Forecasts and Opinions blog.

Last Friday, US crude oil futures finished above $78, the highest level in a year, surging more than 9% during the past week making it the largest weekly gain since the height of the summer driving season, even though the US continues to sit on ample supply of petroleum.

Given the continued sluggishness of the economy, high unemployment rate and large amounts of excess oil production capacity around the world, analysts said a sudden upward spike was still unlikely, while others are predicting an immanent correction down below $70.

However, if you take a closer look, it is evident that the current crude oil market is almost entirely detached from fundamentals. Furthermore, there are several factors supporting oil rising to new levels, as fundamentals are

...

Yesterday, Houston-based integrated oil major Marathon Oil Corporation (MRO) provided an interim update for the third quarter of 2009 (covering the first two months of the quarter). Recovery in crude oil prices is expected to benefit the company's upstream segment, while the downstream business will see higher refinery output and throughputs. The company plans to release its quarterly results on November 3, 2009. Upstream Marathon expects third-quarter oil and natural gas production available for sale from continuing operations to average 395,000 oil-equivalent barrels per day (BOE/d), which is within the company's guidance for the quarter. This is below the previous quarter’s output of 411,000 BOE/d but above the year-ago production of 389 BOE/d and closer to the high end of its 380,000–400,000 BOE/d guidance. Marathon's realized oil price domestically averaged $60.59 per barrel, up 14% sequentially, but down 43% year-over-year. The company's domestic realized price was ...

Late last week, Kinder Morgan Energy Partners LP (KMP) closed the previously announced acquisition of natural gas treating business from Dallas-based Crosstex Energy LP (XTEX) and its general partner Crosstex Energy Inc. (XTXI) for approximately $266 million.  As part of the transaction, Kinder Morgan purchased approximately 290 amine-treating and dew-point control plants from natural gas company Crosstex. These plants are primarily located in Texas and Louisiana , with additional facilities in Mississippi , Oklahoma , Arkansas and Kansas.  Kinder Morgan will use these natural gas treatment plants in servicing its Texas Intrastate customers and to other producers in various supply basins, including the fast growing shale plays. Following the deal, Kinder Morgan has become the largest provider of contracted natural gas treating services in the country.  The Crosstex asset acquisition will allow the partnership to expand its natural gas business through the inclusion ...

Dr Stock Pick HOT News & Alerts!

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Tuesday September 29, 2009

DrStockPick.com Stock Report!

PWRM, CVX, NDAQ, TSPG, BA, AQNM, LMT

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PWRM, Power 3 Medical Products Inc, PWRM.OB

Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and drug targets. Power3’s patent-pending technologies are being used to develop screening and diagnostic tests for the early detection and prognosis of disease, identify protein biomarkers, and drug targets. Diagnostic tests are targeted toward markets with critical unmet needs in areas including neurodegenerative disease (NuroPro) and breast cancer (BC-SeraPro). Power3 expects

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Thursday September 24, 2009

DrStockPick.com Stock Report!

CSRH, CME, PWRM, GRMN, CVAT, HERO, CVX

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CSRH, Consorteum Holdings Inc, CSRH.OB

CSRH is a company in the financial services, payment and transaction processing industries.

CSRH provides electronic transaction processing and management services to financial institutions, healthcare, government, public and private sector companies. CSRH’s services provide customized, innovative technology solutions that create, augment and enhance customers’ existing financial, payment and transactional processing systems.

CSRH has established an agreement with a third party partner within the payment processing industry to offer Merchant Discount Rates. Consorteum will leverage this new partnership to offer competitive Merchant Discount Rates and

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