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Refiners Battle Sharp Increase in Renewable Fuel Credits in 2013

18.03.2013  |  Marketwired
RDInvesting Provides Stock Research on Delek US Holdings and Murphy Oil

NEW YORK, NY -- (Marketwire) -- 03/18/13 -- Shares of oil refiners have slid this past week on concerns that rising renewable fuel credits would begin to pressure margins. The Environmental Protection Agency has propped refineries raising the U.S. ethanol mandate to over 14 billion gallons, compared with 13.2 billion gallons in 2012. Research Driven Investing examines investing opportunities in the Oil & Gas Refining & Marketing Industry and provides equity research on Delek US Holdings, Inc. (NYSE: DK) and Murphy Oil Corporation (NYSE: MUR).


Access to the full company reports can be found at:

www.RDInvesting.com/DK

www.RDInvesting.com/MUR


"There is a potential real stinker of an issue developing for US refiners on meeting obligations related to the US government's renewable fuels standard (RFS) that could materially impact earnings for many of the companies. The price of renewable fuel credits, known as Renewable Identification Number (RINs), has skyrocketed from under US$0.01/gal for ethanol in late 2012 to over US$1.00/gal this week, significantly increasing the cost of RFS compliance for the US refiners so far in 2013." Macquarie wrote in a recent note to investors.

Research Driven Investing releases regular market updates on the Oil & Gas Refining & Marketing Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.RDInvesting.com and get exclusive access to our numerous stock reports and industry newsletters.

Delek's two inland refineries with a combined production capacity of more than 140,000 barrels per day. Their refining segment is comprised of a 60,000 barrel per day refinery in Tyler, Texas and an 80,000 barrel per day refinery in El Dorado, Arkansas. The company reported a fourth quarter net income of $64.3 million, compared to a net loss of $6.0 million a year ago.

Murphy Oil Corporation is an oil and gas exploration and production company with retail and wholesale gasoline marketing operations in the United States and refining and marketing operations in the United Kingdom. The company currently offers investors an annual dividend of $1.25 a share, for a dividend yield of approximately 2.0 percent.

Research Driven Investing has not been compensated by any of the above-mentioned publicly traded companies. Research Driven Investing is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.rdinvesting.com/disclaimer
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