NEW YORK (TheStreet) -- Shares of PBF Energy (PBF) are higher by 7.07% to $29.98 on heavy volume in after-hours trading on Thursday afternoon, after the petroleum refiner announced that its subsidiary has agreed to purchase Chalmette Refining, LLC, from ExxonMobil (XOM) and PDV Chalmette, LLC for $322 million.
"The acquisition of the Chalmette Refinery, and its associated logistics assets, represents a significant step in the strategic growth of PBF Energy and PBF Logistics. Upon completion, we will have increased our refining capacity by 35% and added meaningful Gulf Coast assets to our businesses," PBF CEO Tom Nimbley said in a statement announcing the deal.
By the end of trading, 5.59 million shares of PBF Energy had exchanged hands as compared to its average daily volume of 1.48 million shares.
This deal is expected to close before the end of the year.
Separately, TheStreet Ratings team rates PBF ENERGY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PBF ENERGY INC (PBF) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and weak operating cash flow."