What: Shares of refiner Alon USA Energy (NYSE: ALJ) rose 12% today after reporting earnings.
So what: Third-quarter revenue rose 16% to $2.36 billion, well ahead of the $2.18 billion analysts expected. Net income rose 51% to $43.2 million, or $0.84 per share, also ahead of the $0.59 Wall Street expected.
Now what: Results were driven by a strong margin at the company's Big Spring refinery, which generated a $28.19-per-barrel operating margin. Right now, refiners are in a sweet spot of low oil prices and elevated gas prices, but the high margins may not last forever. Still, I like the operating excellence at Alon and think there's upside for investors if oil doesn't jump too fast like it's doing today.
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