The energy sector is having a tough time right now. Companies in the space are being revealed to be overleveraged, and this is translating to a stark amount of bankruptcy proceedings. These proceedings are, however, offering plenty of opportunity for cheap exposures on the back of restructured discounts. Here’s the latest activity, and what it means.
In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Alon Usa Energy Inc. (NYSE:ALJ) reported that Delek Us Holdings, Inc. has picked up 33,691,292 of common stock as of 2017-01-03.
The acquisition brings the aggregate amount owned by Delek Us Holdings, Inc. to a total of 33,691,292 representing a 47.1% stake in the company.
For those not familiar with the company, Alon USA Energy, Inc. is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company operates through three segments: refining and marketing, asphalt and retail. Its refineries produce petroleum products, including various grades of gasoline, diesel fuel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt and other petroleum-based products. The Company’s refining and marketing segment includes sour crude oil refinery located in Big Spring, Texas, a light sweet crude oil refinery located in Krotz Springs, Louisiana and heavy crude oil refineries located in Paramount, Bakersfield and Long Beach, California (California refineries).
A glance at Alon Usa Energy Inc. (NYSE:ALJ)’s key stats reveals a current market capitalization of 789.80 million based on 71.60 million shares outstanding and a price at last close of $11.38 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2016-05-19, Wheeler picked up 2,000 at a purchase price of $7.91. This brings their total holding to 4,800 as of the date of the filing.
On the sell side, the most recent transaction saw Morris unload 25,000 shares at a sale price of $7.22. This brings their total holding to 1,669,347.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Alon Usa Energy Inc. (NYSE:ALJ) as things move forward to see if its progress aligns with these transactions.
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