SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : ENERGY EXPLORATION & PRODUCTION
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Dennis Roth2/27/2008 5:43:57 AM
   of 111
 
Frontier Oil Corp. (FTO): Buy the dip following noisy 4Q; outlook remains bullish - Goldman Sachs - February 26, 2008

News
Frontier Oil reported adjusted 4Q 2007 EPS of $0.32, below our $0.45 forecast and the $0.46 First Call consensus estimate.

Analysis
A noisy combination of higher operating costs and slightly lower-than-expected realized refining margins accounted for the bulk of the negative variance versus our estimate. We do not consider the minor shortfall to be material to our short- or long-term outlook for its shares.

Implications
Frontier Oil remains a Conviction Buy-rated top pick of ours. We believe investors should take advantage of early trading weakness on February 26 to add to positions. The key driver of Frontier shares remains Mid-Continent refining margins and Canadian light-heavy crude oil spreads. We are bullish on both areas and see Frontier as amongst the best positioned companies in our coverage universe to benefit from our bullish outlook. There is no change to our $52, 12-month target price (based on asset value, P/E and cash flow valuation analyses; key risk is sustained lower refining margins). Our EPS estimates are under review as per our normal practice of updating forecasts after a company reports results and in light of the company's announced 38 day planned maintenance at its El Dorado, Kansas refinery.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News