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Air Products to Supply Additional Hydrogen for Marathon Petroleum

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Air Products to supply additional hydrogen for Marathon Petroleum

On March 1, 2017, Air Products and Chemicals (APD) announced that it had signed an agreement with Marathon Petroleum to supply approximately 30 million standard cubic feet of additional hydrogen per day at its Garyville, Louisiana refinery. APD already supplies hydrogen to Marathon Petroleum. The new supply of hydrogen is expected to begin in November 2017. However, APD didn’t disclose the financial details of the agreement.

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Marie Folkes, president of industrial gases in the Americas region, said, “We are pleased to increase our hydrogen supply to Marathon Petroleum at Garyville. Marathon Petroleum is a valued long-term customer of Air Products, and we serve several of their refineries in the United States.” The additional hydrogen will be provided to Marathon Petroleum from Air Products’ existing gulf coast pipeline.

APD’s stock price for the week

For the week ended March 3, 2017, Air Products and Chemicals closed at $139.52, losing 1.0% for the week. APD’s stock price traded 1.2% below the 100-day moving average price of $141.20, indicating a reversal in the trend from the previous week when it was trading above the 100-day moving average price. On a year-to-date basis, APD lost 3.0%. APD’s 14-day relative strength index (or RSI) of 44 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that the stock is overbought and a score of 30 suggests that the stock is oversold. APD’s 52-week low is $122.03, and its 52-week high is $150.45.

Air Products and Chemicals underperformed the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which rose 0.8% for the week ended March 3, 2017. RTM invests 3.7% of its portfolio in APD. Some top holdings of the fund include CF Industries (CF), Sherwin-Williams (SHW), and Newmont Mining (NEM), which have weights of 4.5%, 4.4%, and 4.3%, respectively.

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