Why Andeavor Stock Has Risen 16% in Q3 2018



Andeavor’s stock performance

Since its third quarter started on July 2, Andeavor (ANDV) stock has risen 16.0%, outperforming the SPDR S&P 500 ETF (SPY). SPY, the broader market indicator, has risen 6.0% in the same period.

Similarly, ANDV’s peer Marathon Petroleum (MPC) has risen 17.0% since July 2. Valero Energy (VLO) and Phillips 66 (PSX) have risen 5.0% and 3.0%, respectively, in the quarter so far.

Article continues below advertisement

Andeavor stock rises

Andeavor (ANDV) posted its second-quarter earnings on August 6 and reported revenues of $12.5 billion, which surpassed Wall Street analysts’ estimate. The company’s second-quarter adjusted EPS stood at $3.53, beating its estimated EPS of $3.00 for an increase of 102.0%. For more on ANDV’s earnings, please refer to Andeavor’s Refining Earnings Surged in Q2 2018.

In its earnings, ANDV stated that the acquisition is expected to close on October 1, subject to approval. So, the acquisition process by Marathon Petroleum (MPC) is progressing according to expectations. 

However, ANDV’s refining index values have declined year-over-year in two of the three operating regions in the current quarter. Also, ANDV’s consolidated refining index has fallen YoY in the third quarter. The fall in index values means weaker refining margins for ANDV in the third quarter, which could impact the company’s third-quarter refining earnings.


More From Market Realist