I've also been looking at this space. I agree with a lot of the conclusions presented.
The cheapest refiner that I've come across is Blue Dolphin Energy (BDCO).
They are the smallest publicly traded refiner that I am aware of. They have gone up in price a bit, and now have a market cap of almost $30MM.
The most interesting thing is that they are probably trading for a P/E of LESS than 1.
They have had a tremendous problem with their debt load, but they made an agreement with their largest creditor. They are also earning money at an incredible rate, and has made progress on their debt in 2022. At the current rate of earnings, they will be able to pay off most of their debt this year. While their debt has gotten them into trouble in the past, they might be able to pay it off and not have to worry about it moving forward.
They also primarily refine jet fuel, which appears to have increasing demand. They have so much operating leverage, that if they can increase their net margin from 6% to 8%, that will boost earnings tremendously.
Earnings will also increase substantially as they pay off their high interest debt.
I don't think this is a high quality company, but with their improved balance sheet, I would think that this should trade for a P/E higher than 1. Heck, they might even be able to trade for a 4-5 P/E?
BDCO came out with earnings today. I was calculating that they would do $2.35 in earnings for 2022. Earnings came in at $2.34, so it was a slight miss.
Even with the miss, I am still bullish on it.
The 1st quarter just ended, and I think they did well.
As they continue to pay down debt, they will get to keep more their money.
I think that the stock could EVENTUALLY trade for a 2 P/E.
Hey all:
I've also been looking at this space. I agree with a lot of the conclusions presented.
The cheapest refiner that I've come across is Blue Dolphin Energy (BDCO).
They are the smallest publicly traded refiner that I am aware of. They have gone up in price a bit, and now have a market cap of almost $30MM.
The most interesting thing is that they are probably trading for a P/E of LESS than 1.
They have had a tremendous problem with their debt load, but they made an agreement with their largest creditor. They are also earning money at an incredible rate, and has made progress on their debt in 2022. At the current rate of earnings, they will be able to pay off most of their debt this year. While their debt has gotten them into trouble in the past, they might be able to pay it off and not have to worry about it moving forward.
They also primarily refine jet fuel, which appears to have increasing demand. They have so much operating leverage, that if they can increase their net margin from 6% to 8%, that will boost earnings tremendously.
Earnings will also increase substantially as they pay off their high interest debt.
I don't think this is a high quality company, but with their improved balance sheet, I would think that this should trade for a P/E higher than 1. Heck, they might even be able to trade for a 4-5 P/E?
Anybody else been looking at this?
Hey all:
I guess nobody else looking at this?
BDCO came out with earnings today. I was calculating that they would do $2.35 in earnings for 2022. Earnings came in at $2.34, so it was a slight miss.
Even with the miss, I am still bullish on it.
The 1st quarter just ended, and I think they did well.
As they continue to pay down debt, they will get to keep more their money.
I think that the stock could EVENTUALLY trade for a 2 P/E.