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NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by AnalystChoice.com (AC).

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Wall Street Capital Funding.

For the second time in less than a month, a major U.S. independent refiner announced it is shuttering a plant. Whatever happened to the impassioned call for more domestic refineries?

Visit StreetInsider.com at http://www.streetinsider.com/news.php?st=p&id=5129929 for the full story.

Speculation about a correction in oil prices -- potentially on a scale of $10 to $15 a barrel -- hangs over energy stocks, which extend their losses from Thursday's session.

Valero Energy is shutting down its refinery in Delaware City, Del., in a move that will eliminate 550 jobs after failing to find a feasible buyer.

Valero Energy Cutting 550 Jobs In Refinery Closure

Valero Energy has just announced it is shutting down its Delaware City Refinery.  This is a major news announcement because refiners should be seen as a canary in the coal mine for end-user demand and Valero is one company in the oil patch which has been loath to cut workers to improve the bottom line.[More...]

Oil refiner and marketer Western Refining Inc. (WNR) reported weaker-than-expected third quarter results, pulled down by lower margins and throughput on the back of weak fuel demand and high inventories caused by the prolonged economic slowdown. This was partially offset by lower costs and expenses. Its loss per share came in at 5 cents, wider [...]

(WNR) Western Refining Suffers Quarterly Loss

Oil refiner and marketer Western Refining Inc. (WNR) reported weaker-than-expected third quarter results, pulled down by lower margins and throughput on the back of weak fuel demand and high inventories caused by the prolonged economic slowdown. This was partially offset by lower costs and expenses. Its loss per share came in at 5 cents, wider than the Zacks Consensus Estimate of 3 cents.

In the year-ago period, the Texas-based company earned $1.60 per share. Revenues were down 40.1% year over year to $1.9 billion. Western follows larger rivals Valero Energy Corp. (VLO) and Sunoco Inc. (SUN) that also posted bigger-than-expected losses.

Refining Segment Results

Western’s refining segment experienced a significant decline in operating income (operating income of $22.2 million vs. $180.8 million in the year-earlier quarter), adversely impacted by weak values for finished products, relative to crude and other feedstock prices.

Throughput

Total refining throughput averaged 223,129 barrels per day (Bbl/d), compared to 230,814 Bbl/d in the year-ago quarter. Overall throughput volumes in the El Paso refinery decreased 1.8% year-over-year to 130,142 Bbl/d. Throughput in the company’s Yorktown refinery fell 5.8% year-over-year to 64,538 Bbl/d, while for the Four Corners refineries, it was down approximately 4.4% to 28,449 Bbl/d.

Refining Margins

Gross refining margin decreased 51.6% year-over-year to $7.28 per barrel. In terms of different regions, refining margin was down approximately 38.2% in El Paso to $8.05 per barrel, 82.1% in Yorktown to $2.67 per barrel, and roughly 39.0% in the Four Corners to $14.04 per barrel.

Operating Expenses

Direct operating expenses during the quarter averaged 4.29 per barrel, down 11.0% year-over-year. Costs in El Paso, Yorktown and Four Corners were $3.01 per barrel (down 21.2% year-over-year), $4.98 per barrel (up 5.5%), and $7.64 per barrel (down approximately 2.6%), respectively.

Capital Expenditure & Balance Sheet

Western’s total capital spending during the third quarter of 2009 was $24.0 million, primarily comprising of regulatory projects at its refineries. As of September 30, 2009, Western had cash on hand of $65.0 million and long-term debt of approximately $1.1 billion, representing a debt-to-capitalization ratio of 57.7%.

Company Initiatives

Given the weak refining margin environment, Western has taken certain strategic actions to improve the company’s performance and competitiveness in a cost-effective manner. As part of this effort, Western plans to consolidate the operations of its Four Corners refineries (Bloomfield and Gallup) into one at the Gallup refinery. The company hopes to save $25 annually through this streamlining.

Despite shuttering the Bloomfield facility, Western will continue to operate the refinery’s products terminal and may use the idled plant to produce alternative fuels. The company is likely to incur charges of $55 - $65 million in the fourth quarter related to the consolidation.

Guidance

For the fourth quarter, total refinery throughput is anticipated to be approximately 212,000 Bbl/d. Operating costs are likely to be approximately $4.36 per barrel at El Paso, $8.71 per barrel at the Four Corners refineries and $5.42 per barrel at Yorktown. The company further informed that it expects capital spending for 2009 to be within $120 million, as against its originally stated budget of $155 million. For 2010, Western plans to spend approximately $100 million.

Company Overview

Western Refining is an independent oil refiner that operates 4 refineries, 2 terminals, 4 asphalt terminals as well as retail service stations and convenience stores in Arizona, Colorado and New Mexico. Western also transports petroleum products throughout the Southwest.
Read the full analyst report on "WNR"
Read the full analyst report on "VLO"
Read the full analyst report on "SUN"
Zacks Investment Research

For Immediate Release

Chicago, IL – November 10, 2009 – Zacks Equity Research highlights NVIDIA Corp. (NVDA) as the Bull of the Day and Red Robin Gourmet Burgers (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesoro Corporation (TSO), Valero Energy Corp. (VLO) and Sunoco Inc. (SUN).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

NVIDIA Corp. (NVDA) posted revenue and earnings well above expectations. NVIDIA is poised for growth through improved cost management, rising demand for GPU and graphics chips, increased orders mainly from China and product launches.

The company is introducing new products at regular intervals and getting good feedback. We believe NVIDIA is well positioned in the longer term given its leadership in the Tegra line-up, the ramp-up of its 40nm process technology and share gains in notebooks and desktops.

We are looking for meaningful revenue growth and sustainable margin expansion. We have changed our rating to Outperform with a six-month price target of $17.00.

Bear of the Day:

Red Robin Gourmet Burgers (RRGB) is vulnerable to economic headwinds, and we believe that the stock will continue to underperform the restaurant industry. Impeding the growth is its sagging same-store sales and declining traffic counts.

The company's third-quarter 2009 same-store sales fell 14.9%. The chain expects guest counts to remain negative, and expects restaurant-level operating margins to decline by 150 to 160 basis points in fiscal year 2009.

In addition, more than 50% of total restaurants are located in areas, which have been hit hard by the housing downturn and economic slowdown. This may dampen the company's growth potential.

Latest Posts on the Zacks Analyst Blog:

Tesoro Beats, Cuts Dividend in Half

Tesoro Corporation’s (TSO) third-quarter 2009 results came in significantly better than expected, helped by better demand balance in the company’s key West Coast region. Earnings per share came in at 24 cents, against Zacks Consensus Estimate of a penny loss.

Tesoro’s outperformance is in contrast to the steep losses posted by the other major refiners that have already reported -- Valero Energy Corp. (VLO) and Sunoco Inc. (SUN).

However, compared to the year-ago period, Tesoro’s earnings per share plunged 87.1%, while sales declined 45.4% to $4.7 billion -- severely hampered by depressed refining margins and lower throughput on the back of weak fuel demand and high inventories.

Tesoro announced a 50% reduction in its quarterly dividend to 5 cents per share (20 cents per share annualized). The new dividend is payable on December 15, to shareholders of record on December 1, 2009.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

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Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Zacks Investment Research

Tesoro Corporation’s (TSO) third-quarter 2009 results came in significantly better than expected, helped by better demand balance in the company’s key West Coast region. Earnings per share came in at 24 cents, against Zacks Consensus Estimate of a penny loss. Tesoro’s outperformance is in contrast to the steep losses posted by the other major refiners that [...]

(TSO) Tesoro Corporation Beats Expectations – Cuts Dividend in Half

Companies featured in this segment: RWE AG (OTC:RWEOY), E.ON AG (OTC:EONGY), Areva SA (EPA:CEI), Electricite de France SA (EPA:EDF), Scottish And Southern Energy plc (OTC:SSEZY), Wal-Mart Stores Incorporated’s (NYSE:WMT), Enterprise Products Partners LP (NYSE:EPD), Shell (NYSE:RDS.A), Exxon Mobile (NYSE:XOM), Valero’s (NYSE:VLO), ConocoPhillips’ (NYSE:COP), Alabama Power Company’s (NYSE:ALM), DuPont’s (NYSE:DD), Gulf Power Company’s (NYSE:GUL), Mississippi Power Company’s (NYSE:MPJ)

Companies featured in this segment: Valero Energy (NYSE:VLO), Marathon Oil (NYSE:MRO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), Jacobs Engineering Group (NYSE:JEC), Fluor Corporation (NYSE:FLR), Areva SA (EPA:CEI), El Paso Corporation (NYSE:EP), Rio Tinto plc (NYSE:RTP), BHP Billiton Limited (NYSE:BHP), Baoshan Iron and Steel Company (SHA:600019), ArcelorMittal (NYSE:MT), ABB Limited (NYSE:ABB), Abengoa Solar SA (MCX:ABG), Deutsche Bank AG (NYSE:DB), E.ON AG (OTC:EONGY), Munich Re (BIT:MUV2), RWE AG (OTC:RWEOY), Siemens AG (NYSE:SI), Wisconsin Energy Corporation (NYSE:WEC), Iberdrola SA (OTC:IBDRY), BHP Billiton Limited (NYSE:BHP), China Shenhua Energy Company Limited (SHA:601088), Peabody Energy Corporation (NYSE:BTU), Vale SA (NYSE:VALE), Gazprom OAO (OTC:OGZPY), Deutsche Bank AG (NYSE:DB), JPMorgan Chase & Company (NYSE:JPM), Rio Tinto plc (NYSE:RTP), Severstal’ OAO (MCX:CHMF), Itochu Corporation (OTC:ITOCY)

Companies featured in this segment: Royal Dutch Shell plc (NYSE:RDS.A), Valero Engineering Corporation (NYSE:VLO), Lazard Limited (NYSE:LAZ), The Boeing Company (NYSE:BA), ABB Limited (NYSE:ABB), Brookfield Asset Management Incorporated (NYSE:BAM), Jacobs Engineering Group Incorporated (NYSE:JEC), CF Industries Holdings Incorporated (NYSE:CF), Fluor Corporation (NYSE:FLR), Exxon Mobil Corporation (NYSE:XOM), Oil & Natural Gas Limited (BSE:500312), Itochu Corporation (TYO:8001), Japan Petroleum Exploration Company Limited (TYO:1662), Marubeni Corporation (TYO:8002), Yara International ASA (OTC:YARIY)

Companies featured in this segment: Enterprise Products Partners LP (NYSE:EPD), Valero Energy Corporation (NYSE:VLO), ExxonMobil’s (NYSE:XOM), Total SA (NYSE:TOT), Lukoil (OTC:LUKOY), RWE (OTC:RWEOY), REpower Systems AG (ETR:RPW), CEZ AS (PRG:BAACEZ), Power Grid Corporation of India Limited (BSE:532898), CESC Limited (BSE:500084), Jindal Steel & Power Limited (BSE:532286), Lanco Infratech Limited (BSE:532778), Larsen & Toubro Limited (BSE:500510), Vedanta Resources plc (LSE:VED), Reliance Infrastructure Limited (BSE:500390), Ispat Industries Limited (BSE:500305), JSW Steel Limited (BSE:500228), Sesa Goa Limited (BSE:500295), Vedanta Resources plc (LSE:VED)

Companies featured in this segment: ExxonMobil (NYSE:XOM), Valero Energy Corporation (NYSE:VLO), Jacobs Engineering Group Incorporated (NYSE:JEC), Perrigo Company (NASDAQ:PRGO), Pfizer (NYSE:PFE), Charles River Laboratories (NYSE:CRL), ConocoPhillips (NYSE:COP), AstraZeneca Plc (NYSE:AZN), Procter & Gamble (NYSE:PG), Chicago Bridge & Iron Company (NYSE:CBI), BASF SE (OTC:BASFY), Steel Authority of India Limited (BSE:500113), and BASF (OTC:BASFY)