Stock Alert: PBF Energy Shares Up 17% In Pre-Market

(RTTNews) - Shares of PBF Energy Inc. (PBF) are rising over 17%, following the company's announcement of $530 million Hydrogen Plant Sales, reduction in 2020 cash outlays by over $500 million through lowered capital and operating expenses, dividend suspension and other deferrals.

The company entered into a letter of intent with Air Products and Chemicals Inc. (APD) to monetize five hydrogen plants for cash proceeds of $530 million, with a targeted transaction close in April. PBF will enter into off-take arrangements for hydrogen on terms in line with similar arrangements in place throughout its refining system.

Further, the company reduced capex by $240 million, a 35% reduction to its previous 2020 guidance, including the Martinez refinery, and a more than 45% reduction of its projected spend for the remainder of 2020.

Driven by a significant reduction in discretionary activities and third party services, the company lowered its 2020 operating expenses by about $125 million. The company also suspended its quarterly dividend of $0.30 per share, anticipated to preserve about $35 million of cash each quarter to support the balance sheet.

The stock has been trading between $5.19 and $35.15 in the past one year, and closed Friday's trade at $6.36, down $1.64 or 20.50%. PBF is currently trading at $7.49, up $1.13 or 17.77% in the pre-market trading session.