PBF Energy (PBF) Stock Analysis & Winston Score

PBF Energy takes crude oil and turns it into useful products like gasoline, diesel, jet fuel, and heating oil. It sells these refined fuels to gas stations, trucking companies, airlines, and other industrial customers across the United States. PBF is one of the largest independent oil refiners in the country, operating refineries in states including California, New Jersey, Louisiana, Ohio, and Delaware. PBF makes money by buying crude oil, refining it, and selling the finished products at a higher price — the difference is called the "crack spread," and that margin drives almost all of its revenue. The company operates entirely in the U.S. and processes roughly 900,000 barrels of oil per day across its six refineries. Refining is a low-margin, commodity-driven business with very thin profits, as the gross margin near 1% shows, and the biggest risk PBF faces is a narrowing crack spread caused by falling fuel demand or rising crude oil costs.