With Energy Prices Rising Due to Crack Spreads, Think About Cashing In on These 2 Small Cap Oil Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Source: Marketbeat
Oil and Gas Stock Surge: Oil and gas stocks have surged since the onset of the Iran conflict, primarily due to the Persian Gulf's critical role in global oil supply, with approximately 20 million barrels passing through the Strait of Hormuz daily.
Refiners Benefit from Price Gaps: Refiners are currently benefiting from an unusual gap between crude and refined product prices, particularly in the U.S., which has led to increased margins for downstream refiners despite rising crude prices.
Market Dynamics and Risks: The widening crack spreads have insulated downstream companies from the volatility of crude prices, but there are risks that these spreads could normalize quickly, impacting refiners' profitability.
Investment Recommendations: Analysts suggest that investors consider small-cap oil stocks, as they may offer significant gains amidst the current market conditions, especially as energy prices fluctuate due to geopolitical tensions and supply chain dynamics.
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Analyst Views on PBF
Wall Street analysts forecast PBF stock price to fall
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 40.590
Low
23.00
Averages
33.63
High
42.00
Current: 40.590
Low
23.00
Averages
33.63
High
42.00
About PBF
PBF Energy Inc. is an independent refiner in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. The Company operates as a refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products. It operates through two segments: Refining and Logistics. The Refining segment includes the operations of its oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California and Martinez, California. The Logistics segment includes the operations of PBF Logistics LP, an indirect wholly owned subsidiary of PBF Energy and PBF LLC, which owns or leases, operates, develops, and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities, and similar logistics assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fire Breaks Out at PBF Energy's Chalmette Refinery in Louisiana
- Incident Overview: A fire broke out Friday afternoon at PBF Energy's Chalmette refinery in Louisiana following a large explosion, which, although quickly contained, raised public concern about safety protocols.
- Emergency Response: Refinery firefighters, along with the St. Bernard Fire Department and the St. Bernard Parish Sheriff’s Office, responded promptly, ensuring the fire was resolved without the need for evacuations or shelter-in-place orders, demonstrating effective emergency management.
- Facility Capacity: The Chalmette refinery has a processing capacity of 185,000 barrels per day and is one of PBF Energy's six refineries; the incident could impact operations, especially after a previous fire in 2023 caused approximately $34 million in damages.
- Market Reaction: Despite an initial drop in stock price following the incident, PBF Energy shares closed up 0.3% on Friday, indicating that the market perceives the short-term impact of the event as limited and investor confidence remains relatively stable.
See More
PBF Energy Q1 2026 Earnings Call Insights
- Financial Performance Overview: PBF Energy reported an adjusted net loss of $0.88 per share and adjusted EBITDA of $68.7 million for Q1 2026, reflecting ongoing operational improvements despite facing a derivative loss of over $200 million.
- Operational Efficiency Gains: The company expects all units at the Martinez facility to be operational within days, with CEO Lucey emphasizing the rising global demand for their products, presenting a significant market opportunity for the company.
- Capital Expenditure and Liquidity: Capital expenditures for the quarter totaled $320 million, including $100 million of net carryover from 2025, with a cash balance of $542 million and net debt of approximately $2.3 billion, indicating strong financial health.
- Market Outlook: Management expressed optimism about the outlook for Q2 and Q3, anticipating sustained global demand for their products while prioritizing debt reduction to enhance shareholder value.
See More
PBF Energy Q1 Earnings Exceed Expectations
- Earnings Beat: PBF Energy reported a Q1 GAAP EPS of $1.65, surpassing expectations by $2.57, indicating a strong rebound in profitability that may attract increased investor interest.
- Significant Revenue Growth: The company achieved Q1 revenue of $7.9 billion, an 11.7% year-over-year increase, exceeding market expectations by $390 million, showcasing PBF's robust performance amid recovering market demand and strengthening its market position.
- Operational Income Fluctuations: The first quarter's income from operations stood at $299.6 million, while excluding special items, the company faced an operational loss of $108.4 million, including a $208.8 million mark-to-market derivative loss, reflecting the impact of market volatility on financials.
- Optimistic Market Outlook: Analysts have rated PBF Energy as a “strong buy,” suggesting that ongoing Middle East conflicts will continue to support stock prices, and combined with the company's solid financial performance, it is expected to attract more investor attention.
See More
PBF Energy Reports Significant Q1 Net Income Rebound
- Revenue Rebound: PBF Energy reported Q1 2026 income from operations of $299.6 million, a stark recovery from a $511.2 million loss in Q1 2025, indicating strong resilience amid market volatility and operational improvements.
- Net Income Surge: The company achieved a net income of $200.2 million in Q1 2026, translating to $1.65 per share, compared to a net loss of $405.9 million or $(3.53) per share in the same quarter of 2025, showcasing a significant turnaround in profitability and boosting investor confidence.
- Insurance Recovery Impact: Non-cash special items contributed $302 million to net income in Q1, primarily from insurance recoveries related to the Martinez refinery fire, highlighting effective crisis management and financial stability during operational disruptions.
- Dividend Declaration: PBF Energy announced a quarterly dividend of $0.275 per share to be paid on May 29, 2026, reflecting a commitment to shareholder returns following a return to profitability, which enhances market optimism regarding the company's future performance.
See More
PBF Energy Reports $299.6 Million Q1 Income Amid Refinery Restart
- Significant Revenue Growth: PBF Energy reported Q1 2026 income from operations of $299.6 million, a stark contrast to a $511.2 million loss in Q1 2025, indicating strong performance amid market recovery, which is likely to boost investor confidence.
- Net Profit Reversal: The company posted a net income of $200.2 million for Q1, translating to $1.65 per share, a substantial improvement from a net loss of $405.9 million and $(3.53) per share in Q1 2025, reflecting a recovery in profitability.
- Martinez Refinery Restart Progress: The restart of the Martinez refinery is progressing well, with full operational capacity expected by early May, which will help meet market demand and enhance the company's production efficiency and competitive position.
- Dividend Declaration: PBF Energy announced a quarterly dividend of $0.275 per share to be paid on May 29, 2026, demonstrating a commitment to shareholder returns following a return to profitability, further strengthening market confidence in its financial health.
See More
Primo Brands and PBF Energy See High Options Trading Volume
- Primo Brands Options Activity: Primo Brands Corp saw options trading volume of 49,475 contracts, equivalent to approximately 4.9 million shares, representing about 133.6% of its average daily trading volume over the past month, indicating strong market interest in the stock.
- High Volume Contracts: Notably, the $25 strike call option expiring on May 15, 2026, has seen 25,319 contracts traded today, representing around 2.5 million underlying shares, suggesting investor expectations for future price increases.
- PBF Energy Options Dynamics: PBF Energy Inc recorded options trading volume of 42,111 contracts, equivalent to approximately 4.2 million shares, which is about 132% of its average daily trading volume over the past month, reflecting the stock's active trading status.
- Bullish Call Options: The $45 strike call option expiring on May 15, 2026, has seen 15,308 contracts traded today, representing approximately 1.5 million underlying shares, reflecting optimistic market sentiment regarding PBF's future performance.
See More
Fire Breaks Out at PBF Energy's Chalmette Refinery in Louisiana
- Incident Overview: A fire broke out Friday afternoon at PBF Energy's Chalmette refinery in Louisiana following a large explosion, which, although quickly contained, raised public concern about safety protocols.
- Emergency Response: Refinery firefighters, along with the St. Bernard Fire Department and the St. Bernard Parish Sheriff’s Office, responded promptly, ensuring the fire was resolved without the need for evacuations or shelter-in-place orders, demonstrating effective emergency management.
- Facility Capacity: The Chalmette refinery has a processing capacity of 185,000 barrels per day and is one of PBF Energy's six refineries; the incident could impact operations, especially after a previous fire in 2023 caused approximately $34 million in damages.
- Market Reaction: Despite an initial drop in stock price following the incident, PBF Energy shares closed up 0.3% on Friday, indicating that the market perceives the short-term impact of the event as limited and investor confidence remains relatively stable.
See More
PBF Energy Q1 2026 Earnings Call Insights
- Financial Performance Overview: PBF Energy reported an adjusted net loss of $0.88 per share and adjusted EBITDA of $68.7 million for Q1 2026, reflecting ongoing operational improvements despite facing a derivative loss of over $200 million.
- Operational Efficiency Gains: The company expects all units at the Martinez facility to be operational within days, with CEO Lucey emphasizing the rising global demand for their products, presenting a significant market opportunity for the company.
- Capital Expenditure and Liquidity: Capital expenditures for the quarter totaled $320 million, including $100 million of net carryover from 2025, with a cash balance of $542 million and net debt of approximately $2.3 billion, indicating strong financial health.
- Market Outlook: Management expressed optimism about the outlook for Q2 and Q3, anticipating sustained global demand for their products while prioritizing debt reduction to enhance shareholder value.
See More
PBF Energy Q1 Earnings Exceed Expectations
- Earnings Beat: PBF Energy reported a Q1 GAAP EPS of $1.65, surpassing expectations by $2.57, indicating a strong rebound in profitability that may attract increased investor interest.
- Significant Revenue Growth: The company achieved Q1 revenue of $7.9 billion, an 11.7% year-over-year increase, exceeding market expectations by $390 million, showcasing PBF's robust performance amid recovering market demand and strengthening its market position.
- Operational Income Fluctuations: The first quarter's income from operations stood at $299.6 million, while excluding special items, the company faced an operational loss of $108.4 million, including a $208.8 million mark-to-market derivative loss, reflecting the impact of market volatility on financials.
- Optimistic Market Outlook: Analysts have rated PBF Energy as a “strong buy,” suggesting that ongoing Middle East conflicts will continue to support stock prices, and combined with the company's solid financial performance, it is expected to attract more investor attention.
See More
PBF Energy Reports Significant Q1 Net Income Rebound
- Revenue Rebound: PBF Energy reported Q1 2026 income from operations of $299.6 million, a stark recovery from a $511.2 million loss in Q1 2025, indicating strong resilience amid market volatility and operational improvements.
- Net Income Surge: The company achieved a net income of $200.2 million in Q1 2026, translating to $1.65 per share, compared to a net loss of $405.9 million or $(3.53) per share in the same quarter of 2025, showcasing a significant turnaround in profitability and boosting investor confidence.
- Insurance Recovery Impact: Non-cash special items contributed $302 million to net income in Q1, primarily from insurance recoveries related to the Martinez refinery fire, highlighting effective crisis management and financial stability during operational disruptions.
- Dividend Declaration: PBF Energy announced a quarterly dividend of $0.275 per share to be paid on May 29, 2026, reflecting a commitment to shareholder returns following a return to profitability, which enhances market optimism regarding the company's future performance.
See More
PBF Energy Reports $299.6 Million Q1 Income Amid Refinery Restart
- Significant Revenue Growth: PBF Energy reported Q1 2026 income from operations of $299.6 million, a stark contrast to a $511.2 million loss in Q1 2025, indicating strong performance amid market recovery, which is likely to boost investor confidence.
- Net Profit Reversal: The company posted a net income of $200.2 million for Q1, translating to $1.65 per share, a substantial improvement from a net loss of $405.9 million and $(3.53) per share in Q1 2025, reflecting a recovery in profitability.
- Martinez Refinery Restart Progress: The restart of the Martinez refinery is progressing well, with full operational capacity expected by early May, which will help meet market demand and enhance the company's production efficiency and competitive position.
- Dividend Declaration: PBF Energy announced a quarterly dividend of $0.275 per share to be paid on May 29, 2026, demonstrating a commitment to shareholder returns following a return to profitability, further strengthening market confidence in its financial health.
See More
Primo Brands and PBF Energy See High Options Trading Volume
- Primo Brands Options Activity: Primo Brands Corp saw options trading volume of 49,475 contracts, equivalent to approximately 4.9 million shares, representing about 133.6% of its average daily trading volume over the past month, indicating strong market interest in the stock.
- High Volume Contracts: Notably, the $25 strike call option expiring on May 15, 2026, has seen 25,319 contracts traded today, representing around 2.5 million underlying shares, suggesting investor expectations for future price increases.
- PBF Energy Options Dynamics: PBF Energy Inc recorded options trading volume of 42,111 contracts, equivalent to approximately 4.2 million shares, which is about 132% of its average daily trading volume over the past month, reflecting the stock's active trading status.
- Bullish Call Options: The $45 strike call option expiring on May 15, 2026, has seen 15,308 contracts traded today, representing approximately 1.5 million underlying shares, reflecting optimistic market sentiment regarding PBF's future performance.
See More
