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Marathon Petroleum Outperformed SPY, Stock Rose 17%

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Marathon Petroleum stock performance

Since the beginning of the third quarter on July 2, Marathon Petroleum (MPC) stock has risen 17%. The stock outperformed the SPDR S&P 500 ETF (SPY), which closely follows and tracks the S&P 500 Index. SPY rose 7% during the same period.

So far, Marathon Petroleum’s peers have outperformed SPY during the quarter. Andeavor (ANDV) and Valero Energy (VLO) have risen 16% and 8%, respectively, since July 2. HollyFrontier (HFC), PBF Energy (PBF), and Delek US Holdings (DK) have risen 9%, 25%, and 10%, respectively.

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Marathon Petroleum stock has risen

So far in the third quarter, Marathon Petroleum stock has risen due to its second-quarter earnings, which surpassed Wall Street analysts’ earnings estimate. For the second quarter, the company reported an EPS of $2.27 and beat the estimated EPS of $2.03. In the second quarter, Marathon Petroleum’s EPS was 120% higher than its adjusted EPS in the second quarter of 2017. To learn more, read MPC’s Q2 2018 Earnings Beat Estimates, Stock Rose 7.3%.

Marathon Petroleum’s acquisition of Andeavor has progressed considerably since the announcement on April 30. The acquisition is expected to close in the second half of 2018. Management reiterated its confidence in achieving substantial synergies, earnings, and cash flows from the merged entity.

In the third quarter, Marathon Petroleum’s refining earnings indicators have been mixed. While the blended LLS 6-3-2-1 crack (net of RINs [1. Renewable Identification Numbers]) has expanded year-over-year in the third quarter, the LLS-WTI spread and the sweet-sour differential have contracted. Weaker spreads could partly or fully offset higher refining earnings due to stronger net blended crack in the third quarter.

Marathon Petroleum stock has risen sequentially due to better-than-expected earnings and the ongoing acquisition of Andeavor. The rise has been partly offset by the mixed trend in Marathon Petroleum’s refining earnings indicators.

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