STOCKS TELEGRAPH

Tag: fossil fuel

  • PBF Energy Inc. (PBF) Stock Undergoes Minor Volatility Following BAAQMD Emissions Ruling

    PBF Energy Inc. (PBF) stock prices were up 8.17% as of the market close on July 21st, 2021, bringing the price per share up to USD$10.46 at the end of the trading day. Subsequent premarket fluctuations saw the stock fall by 2.87%, bringing it down to USD$10.16.

    BAAQMD’s Decision

    July 21st, 2021 saw the company address the BAAQMD Board’s decision to adopt Proposed Amended Rule 6-5, in regard to particulate emission in the Bay Area resulting from refinery Fluid Catalytic Cracking units. The company has been collaborating closely with Bay Area Air Quality Management District staff throughout the rule-making process, which will require refineries to meet a specific emission standard by 2026. Fortunately, this will not require the installation of a wet gas scrubber or other potentially costly technology.

    Implementing Change

    In line with this, the company plans to continue with the implementation of previously planned projects over the upcoming months, which will see the Martinez refinery undergo a drastic reduction in emissions. The company expects to close the gap between existing emissions and target emissions by the first quarter of 2022. PBF is keen to continue partnering with the BAAQMD to facilitate efficient improvements in air quality while ensuring the continued provision of the company’s vital products to one of the largest fuel markets in the world.

    Healthy Financials

    The company exhibited improvements in financial reports for the first quarter of 2021, as compared to the prior quarter. March 2021 indicated a significant increase from January, reflecting favorable market conditions as the ongoing push for universal immunizations resulted in a normalizing and resurgence of demand. Despite this increase, however, the independent refining sector is at the mercy of rising compliance costs under the RFS program.

    Solid Liquidity Position

    As the devastating effects of the pandemic played out following its onset, PBF took measures to protect its balance sheet in the face of economic uncertainty. The company reported having a solid liquidity position of USD$2.3 billion as of March 31st, 2021, of which USD$1.5 billion consisted of cash and funds available via an asset-based lending facility. Furthermore, PBF Logistics LP liquidity included USD$44 million in cash and roughly USD$311 million as a part of a revolving credit facility.

    Future Outlook for PBF

    Armed with a solid liquidity position that will help the company execute their strategy over the next couple months until the economy fully returns to pre-pandemic levels, PBF is poised to capitalize on its opportunities for success. Current and potential investors are hopeful that management will leverage the resources at their disposal to usher in significant and sustained increases in shareholder value.

  • Recon Technology, Ltd. (RCON) Stock Plummets Following Announcement of USD$55 Million Registered Direct Offering

    Recon Technology, Ltd. (RCON) stock prices plummeted by a significant 19.31% shortly after market trading commenced on June 14th 2021, bringing the price per share down to USD$5.03 early on in the trading day.

    Registered Direct Offering

    June 14th, 2021 saw the company announce having entered into a securities purchase agreement with various accredited investors. The agreement will see the purchasing of USD$55 million worth of the company’s class A ordinary shares in a registered direct offering. Pre-funded warrants to purchase Class A ordinary shares may be issued in lieu of the shares themselves, with the class A ordinary shares warrants being issues in a concurrent private placement.

    Size of Offering

    As per the agreement, the company has agreed to sell a total of 8,814,102 Class A ordinary shares, or pre-funded warrants in lieu thereof. Concurrently, warrants for the purchase of 8,814,102 class A ordinary shares will be offered in a private placement transaction. The pre-funded warrants will have a set exercise price of USD$0.01 per share, with the option of immediate exercising upon the date of issuance until they are exercised in full.

    Pre-Funded Warrants

    The pre-funded warrants will be issued to certain investors who will have elected to purchase them instead of the Class A ordinary shares up for sale in the offering. This is because the investors would otherwise have surpassed 9.99% beneficial ownership of the company’s Class A ordinary shares immediately after the offering.

    Pricing of Offering

    Ordinary share warrants will be exercisable instantly as of the date of issuance, with a set exercise price of USD$6.24. The warrants for ordinary shares will expire in five and a half years from the date of issuance. The purchase price for one unit comprised of one ordinary share and one corresponding ordinary share warrant will also be USD$6.24. Gross proceeds generated from the offering are expected to be USD$55 million before the deduction of expenses related to the offering. Subject to customary closing conditions, the registered direct offering is expected to close around June 15th, 2021.

    Future Outlook for RCON

    Armed with a solid liquidity position from their private placement, RCON is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher inorganic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Torchlight Energy Resources, Inc. (TRCH) Stock Continues Long-Term Upward Trend Amid Market Dominated by Meme Stocks

    Torchlight Energy Resources, Inc. (TRCH) Stock Continues Long-Term Upward Trend Amid Market Dominated by Meme Stocks

    Torchlight Energy Resources, Inc. (TRCH) stock prices were up by 3.65% as of the market closing on June 11th, 2021, bringing the price per share up to USD$3.12 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 7.37%, bringing it up to USD$3.35.

    Meme Stock Craze

    Several of the recent trading days having been dominated by the meme stock phenomenon, wherein members of the online social media community, Reddit, collaborate on pumping “meme” stocks that have no apparent rational basis for being invested in. These underdog companies, sometimes on the brink of collapse, are resuscitated (often only temporarily) by the fortuitous whims of the Reddit-driven retail investors. With no recent news or fundamental developments that justify significant upswings in stock prices, TRCH, too, seems to be the latest target of the meme stock craze.

    Promising Track Record

    Interestingly, however, this seems to be a long-term trend for the company, rather than a short-term surge in price. The past year has seen the stock price skyrocket by 576%, with the last 3 years representing a 90% increase in the value of the company’s equity. The most recent month had seen a 13% increase, with the price rising through both the latest trading day and the subsequent pre-market hours.

    Shaky Foundation

    In their recently disclosed financial statements, TRCH reported a meagre USD$111,230 in revenue over a 12-month period. This fails to signal confidence in the management and the execution of their business plan. Nevertheless, the stock has enjoyed consistent growth in stock price. It seems much more likely that investors are banking on the company’s untapped potential rather than its accomplishments. This is atypical because of the risks involved. Investors might be hoping for the company to stumble upon fossil fuels with an exploration program before it finds itself to have run out of money.

    Sustaining Growth

    Pinning hopes on potential future developments entails a very probably need for infusions of capital to sustain the company until it can support itself. This puts them at the mercy of capital markets, where share price itself impact the value of the shares themselves, as determiners of costs of capital. From here, companies can go on to execute their intended strategies and provide returns on investments made; or companies can suffer heavy losses and eventual de-listing. TRCH has consistently rewarded its investors who took the high risk.

    Future Outlook for TRCH

    Armed with a solid liquidity position from their private placement, as well as the fortuitous surge in the value of their equity, TRCH is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.