Commodity Markets + Energy Landscape

Despite diesel and gasoline prices falling significantly since last year’s price shocks caused by the Russian Ukraine conflict, crack spreads across the US remain robust relative to historical levels. East Coast crack spreads averaged ~$17/bbl in 2Q23 +22% vs the 5Y average.

OPEC+ also has stepped in with cuts and Russia has curbed production which has helped stabilize prices a bit. Looking at the following companies PBF, DINO, PSX, VLO, MPC, and CVI the median EV/EBITDA is 4.2x.