Frontier Oil Corporation Maintains Perform Rating

Oppenheimer has published its research report on Frontier Oil Corp. FTO following their 3Q10 results. FTO reported 3Q10 adjusted income of %0.08/sh compared to the consensus estimate of $0.05/sh. FTO shares have gained 22.5% YTD compared to a 12% gain for their peer group average and a %7.5 gain for the S&P 500. Oppenheimer writes, "FTO shares are trading above the peer average on a P/E and P/CF basis. Using 2011 consensus estimates, FTO trades at 13.2x P/E versus the peer average of 12.3x, and at 6.7x cash flow versus the peer average of 5.2x. FTO's 2010 projected return on capital is 8.2%, second-best in its peer group and above the peer average of 6.2%." FTO closed Monday at $14.75.