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...

For Immediate Release

Chicago, IL – November 10, 2009 – Zacks Equity Research highlights NVIDIA Corp. (NVDA) as the Bull of the Day and Red Robin Gourmet Burgers (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesoro Corporation (TSO), Valero Energy Corp. (VLO) and Sunoco Inc. (SUN).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

NVIDIA Corp. (NVDA) posted revenue and earnings well above expectations. NVIDIA is poised for growth through improved cost management, rising demand for GPU and graphics chips, increased orders mainly from China and product launches.

The company is introducing new products at regular intervals and getting good feedback. We believe NVIDIA is well positioned in the longer term given its leadership in the Tegra line-up, the ramp-up

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Tesoro Corporation’s (TSO) third-quarter 2009 results came in significantly better than expected, helped by better demand balance in the company’s key West Coast region. Earnings per share came in at 24 cents, against Zacks Consensus Estimate of a penny loss. Tesoro’s outperformance is in contrast to the steep losses posted by the other major refiners that have already reported -- Valero Energy Corp. (VLO) and Sunoco Inc. (SUN). However, compared to the year-ago period, Tesoro’s earnings per share plunged 87.1%, while sales declined 45.4% to $4.7 billion -- severely hampered by depressed refining margins and lower throughput on the back of weak fuel demand and high inventories. Refining Segment Results Tesoro’s refining segment experienced a significant decline in operating income (operating income of $84 million vs. $476 million in the year-earlier quarter) due to struggling profit margins for the production of distillate ...

Oil refiner and marketer Sunoco Inc. (SUN) reported weaker-than-expected third quarter results as its refining and chemicals operations slipped in the red, pulled down by reduced margins and production. Loss per share, excluding special items, came in at 29 cents, significantly wider than the Zacks Consensus Estimate of 9 cents. In the year-ago period, the Pennsylvania-based company earned $4.78 per share. Revenues were down 42.6% year over year to $8.7 billion.   Refining & Supply   The Refining & Supply segment lost $118 million during the quarter, as against a profit of $398 million in the year-earlier period, mainly on account of lower realized margins and lower production volumes, partly canceled by lower expenses. Realized margin averaged $2.72 per barrel, down 81.7% from the third quarter of 2008, reflecting a very weak East Coast refining margin environment. Total production was down approximately 17.2% year over year to 669.2 ...

Recently, the federal government’s Energy Information Administration (EIA) issued an overall bullish report, showing a smaller-than-expected build in crude stockpiles. Further, the data showed that gasoline inventories were down as predicted, while distillate stocks also declined, though fell short of expectations. In its release, the agency said that crude inventories rose by 1.3 million barrels for the week ending October 16, much lower than analysts' expectations. This is the second successive week in which the crude buildup has been lower than originally anticipated. A major contributing factor to the modest increase can be attributed to a fall in crude oil imports, which dropped to the lowest level in two months. Current crude oil stocks, at 339.1 million barrels, are 8.9% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart below). The ...

Yesterday, the U.S. Energy Department's weekly inventory release showed a less-than-expected build in crude stockpiles. However, the headline news was centered on a sharp drop in gasoline stocks and refinery utilization that pushed oil prices to a fresh 2009 peak and lifted energy stocks. The federal government’s Energy Information Administration (EIA) reported a 400,000 barrels rise in crude inventories for the week ending October 9, much less than analyst expectations. The modest increase can be attributed to scaled back operations by the refiners (prompted by weak profit margins) even as imports fell. This follows last week’s report, which showed an unexpected rise in oil supply figures, against consensus forecast of a buildup. Current crude oil stocks, at 337.8 million barrels, are 9.6% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart ...

Philadelphia-based Sunoco Logistics Partners L.P. (SXL) is a master limited partnership (MLP) that acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities.   Sunoco Logistics reported solid second-quarter results, reflecting higher lease acquisition results, increased fees, and contributions from the recent MagTex acquisition. Importantly, the partnership increased its quarterly cash distribution by 11.2% year over year to the annualized rate of $4.16 per unit. With its stable fee-based revenue, geographically diverse assets, and strong business fundamentals, Sunoco Logistics offers investors an opportunity to capture income growth through steadily rising cash distributions and capital appreciation.   We also believe that the partnership’s synergistic relationship with its general partner, Sunoco Inc. (SUN) adds to its positive attributes by providing Sunoco Logistics with stable cash flows and consistent top-line growth opportunities.   At the same time, we remain concerned with Sunoco ...

Yesterday, oil refiner and marketer Sunoco Inc. (SUN) announced certain strategic actions to improve the company’s performance and competitiveness in a cost-effective manner, as it struggles to cope with the bearish refining margin environment. Sunoco said that it would indefinitely idle a New Jersey refinery, furlough 400 workers and cut its dividend in half. The company hopes that these measures will save $320 million annually, though this would also lead to $475–$550 million in largely non-cash financial charges over the next few quarters. Sunoco has decided to shut down its 145,000 barrels-per-day Eagle Point refinery in Westville, NJ, until market conditions improve. In the meantime, the company will shift production from Eagle Point to its refineries in Philadelphia and Marcus Hook, PA, and may use the idled refinery to produce alternative fuels. The Philadelphia and Marcus Hook facilities will up their utilization rates to make up ...

Late last week, Sunoco Logistics Partners LP (SXL) reported that it has closed the acquisition of Excel Pipeline LLC, which owns the 52-mile Excel crude oil pipeline running from Duncan to a refinery in Wynnewood, both in Oklahoma. Sunoco Logistics purchased Excel from affiliates of Gary-Williams Energy Corp., which runs the Wynnewood refinery.  Sunoco Logistics has operated the Excel pipeline on behalf of Gary-Williams since 2007. As part of the transaction, Gary-Williams has entered into a 20-year throughput agreement to use the pipeline's capacity.  Sunoco Logistics did not disclose the value of the Excel deal but expects the transaction to be immediately accretive and to add value to the partnership's business, while extending its long-term relationship with Gary-Williams.   Philadelphia-based Sunoco Logistics Partners L.P. is a master limited partnership (MLP) that acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines ...

Yesterday, oil refiner and marketer Sunoco Inc. (SUN) announced the sale of certain assets of its U.S. retail heating oil and propane distribution business to specialty chemicals supplier Superior Plus Corp. Canada-based Superior has agreed to pay $82.5 million in cash for the transaction, which is expected to close on September 30, subject to regulatory and other approvals. The business to be sold – Sunoco Retail Heat – supplies a wide variety of liquid fuels and propane gas to Pennsylvania and New York markets. The segment also has a network of two pipeline-supplied fuel terminals and 22 retail bulk plants that provide up to 20 million gallons of storage capacity in its core markets. Based upon 2008 volumes, Sunoco Retail Heat’s fuel distribution mix consists of about 81% distillates (mainly heating oil and diesel fuel), 15% gasoline, and 4% propane, while the customer base is comprised ...