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How Andeavor Fared in 3Q17

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Part 3
How Andeavor Fared in 3Q17 PART 3 OF 5

How Andeavor Stock Performed ahead of 3Q17 Earnings

Andeavor’s stock performance

Andeavor (ANDV) announced its results on November 8, 2017, after markets closed. Now, let’s look at how Andeavor’s stock performed on the day in anticipation of its earnings. ANDV opened at $110.8 per share, slightly below the previous close of $111.3. Andeavor saw highs of $111.4 and lows of $110.1 during the day and eventually closed at $111.1, around 0.1% lower than its previous day’s close but in line with peers.

How Andeavor Stock Performed ahead of 3Q17 Earnings

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Peers Valero Energy (VLO), PBF Energy (PBF), and Delek US Holdings (DK) fell 0.2%, 0.9%, and 0.5%, respectively, on the day. However, Marathon Petroleum (MPC) rose 0.2% on the day. Plus, Phillips 66 (PSX) and HollyFrontier (HFC) closed flat on the day.

By comparison, on November 8, 2017, crude oil prices fell 0.7%. However, on the day, the broader market indicator like the SPDR S&P 500 ETF (SPY) closed 0.2% higher.

Andeavor’s 3Q17 update

In 3Q17, Andeavor incurred capex of $398 million, of which $59 million was towards the logistics segment. Andeavor aims to strengthen its midstream master limited partnership, ANDX, via organic (optimal capex) as well as inorganic (drop-downs, acquisitions) paths. Andeavor expects to incur capex of $1.3 billion in 2017.

The integration of Western Refining has generated $110 million of synergies on an annual run-rate basis. ANDV expects around $350 million to $425 million of annual savings in the form of operational synergies by June 2019. In the 3Q17 earnings release, Andeavor’s chair and CEO, Greg Goff, stated, “Our business delivered strong results across our integrated value chain for the quarter. Our marketing business is well positioned for continued growth following the Western Refining and Northern California Retail acquisitions which bring more secure and profitable earnings to the portfolio. Andeavor Logistics completed the acquisition of WNRL and the IDR buy-in transaction, which positions us to capture significant organic growth in the Permian Basin.”

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