Barclays on Energy: EPS Revised To Reflect Updated Macro Assumptions

Barclays on Energy: EPS Revised To Reflect Updated Macro Assumptions

Barclays analyst says, 'We lower our Brent assumption in 2011 and 2012 to $111.6 and $107.5/bl from $113.6/bl and $110.0/bl, respectively, while increasing our Brent/WTI spread to $17.6/bl and $15.6/bl in 2011 and 2012, from $16.4/bl and $15.2/bl, respectively. We also raise our U.S. refining margin assumptions by 8% in 2011 and 2% in 2012, while raising our U.S. marketing margins by 4% and 3% in 2011 and 2012, respectively."

"We raise our price target on Delek (NYSE: DK) to $18 from $16 previously. Our new price target price assumes DK should trade at $665 per daily barrel of capacity or 37% of replacement cost of $1,800 versus $585 per daily barrel previously."

"We raise our target price on Tesoro (NYSE: TSO) to $41 from $38 previously. Our new target price assumes TSO should trade at $885 per daily barrel of capacity or 49% of replacement cost versus $820 per daily barrel previously."

"We raise our target price on Valero (NYSE: VLO) to $31 from $30 previously. Our new target price assumes VLO should trade at $585 per daily barrel of capacity or 32% of replacement cost versus $560 per daily barrel previously."

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