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MPC, VLO, and PSX: Refining Yield Comparison

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Refining yields comparison

Refining yields show the volume and type of refined products produced. In the first quarter, Marathon Petroleum’s (MPC) gasoline production was 49% of its total refined products produced. Marathon Petroleum’s production was higher compared to Valero Energy (VLO) and Phillips 66 (PSX). Marathon Petroleum’s distillate production was 35%. The company’s others production was 16%—lower compared to Phillips 66.

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Usually, heavier refined products have lower realizations than lighter refined products like gasoline. When more lighter products are produced, refiners’ revenues will be higher.

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In contrast, the gasoline as a percentage of the total production was the lowest in Phillips 66. Gasoline accounted for 44% of the overall refined products produced by the company in the first quarter. Phillips 66’s distillate production was 38% in the first quarter. Valero Energy’s refining operations yielded 48% gasoline and 38% distillates in the first quarter.

However, if we consider absolute production levels, Marathon Petroleum produced the highest gasoline volumes in the first quarter followed by Valero Energy and Phillips 66. Marathon Petroleum’s gasoline volumes were higher due to the addition of Andeavor’s capacity.

Total production trend

While Valero Energy and Phillips 66’s total production fell YoY (year-over-year) in the first quarter, Marathon Petroleum’s output increased. Marathon Petroleum’s total refined products production rose 62% YoY to 3,132 Mbpd (thousand barrels per day).

Phillips 66 had the highest fall in production. The company’s output fell 3.0% YoY to 1,999 Mbpd in the first quarter. Valero Energy’s production fell  2.6% YoY to 2,892 Mbpd in the first quarter.

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