Marathon Petroleum Corp
Latest Marathon Petroleum Corp News and Updates
The MPLX crude oil pipeline system
MPLX crude pipelines are connected to supply hubs, and transport crude oil to Marathon Petroleum Corporation’s, or MPC’s, refineries and third parties.
Overview of US Gulf Coast 3:2:1 Crack Spread
Crack spreads usually fall when crude oil prices (USO) increase by more than product prices, or when product prices fall more than crude oil prices.
HollyFrontier’s Stock: Trading Below Moving Averages
Refining companies’ stock performance was affected by the abolition of the crude oil export ban in the United States.
HollyFrontier Stock Has Recovered 5.5% in 2019
HollyFrontier (HFC) stock has risen 5.5% since January 2. The stock has risen less than its peers Marathon Petroleum (MPC) and Valero (VLO).
HFC and PSX: Which Company Could Post the Most Gains?
After HollyFrontier’s earnings, RBC lowered its target price on the stock from $68 to $66.
Why analysts were surprised by distillate inventories last week
It’s expected distillate production will grow by the end of 2014. Refineries have built new facilities to produce more distillates than gasoline in anticipation of strong global demand growth.
Refiners’ 4Q17 Estimates: Ranking MPC, VLO, PSX, ANDV on Earnings
In this series, we’ll be sorting refining stocks in terms of earnings expectations for 4Q17. If we rank them on their likely YoY growth in EPS, then Andeavor (ANDV) occupies the top slot.
Valero’s 4Q15 Estimates Suggest Two Big Words: Under Pressure
In 4Q15, according to Wall Street analyst estimates, Valero is expected to post EPS of $1.40, which would be 23% lower than its 4Q14 adjusted EPS.
Analyzing HollyFrontier’s Refining Margin in 2018
HollyFrontier’s refining segment is critical for its overall earnings. The refining segment’s adjusted EBITDA rose 127% to $1.7 billion in 2018.
How Did Tesoro’s Refining Margin Trend in 3Q16?
Tesoro (TSO) noted a contraction in its GRM (gross refining margin) by $10.4 per barrel YoY (year-over-year) to $9.1 per barrel in 3Q16.
Valero’s Liquidity: Does It Justify High Shareholder Returns?
Valero’s liquidity In 1H17, Valero Energy (VLO) generated $2785 million in cash from operations. The company had cash outflows of $880 million in the form of capital expenditure and deferred turnaround and catalyst costs and $627 million in the form of dividends. Valero’s liquidity surplus Valero’s cash outflows amounted to around $1507 million in 1H17, […]
How Is Marathon Petroleum’s Leverage Trending?
Marathon Petroleum’s solvency ratios are higher than the industry average, which is not a comfortable situation.
Marathon Petroleum’s Earnings Mix by Segment
Marathon Petroleum’s (MPC) operating income rose 51% yearly to $440 million in the first quarter. The rise in midstream earnings mainly led to the rise in operating income.
Distillate inventories continued to decline
Distillate demand and stock levels drive crude demand and crude prices. As a result, energy investors watch distillate inventories closely.
Valero Energy’s Analyst Recommendations: No “Sell” Ratings
Barclays, Goldman Sachs, Credit Suisse, and Wolfe Research have positive recommendations for the stock. They gave price targets equal to $80 per share or above.
HollyFrontier: Which Institutions Bought or Sold the Stock?
Dimensional Fund Advisers, AQR Capital Management, and Goldman Sachs increased their holdings in HollyFrontier stock in the first quarter.
Tesoro’s Big Bet on Building Crude-by-Rail Infrastructure
An important part of Tesoro’s business, crude-by-rail allows refiners to cover maximum accessibility and to gain from price differentials.
Phillips 66: 2Q17 Earnings Beat Estimates, Refining Earnings Rose
In 2Q17, Phillips 66’s revenues missed Wall Street analysts’ estimates by 1%. However, its 2Q17 adjusted EPS of $1.09 surpassed estimates of $1.01.
Waiting for the Numbers: Valero’s 4Q15 Earnings and Refining Margin Trend
In 3Q15, Valero noted a rise in its gross refining margin by $2.6 per barrel to $14.4 per barrel, compared to what we saw in 3Q14.
Who among MPC, VLO, HFC, and PSX Has the Highest Refining Margin?
In this article, we’ll compare the gross refining margins of leading American downstream companies.
Why Andeavor Has so Many ‘Buy’ Ratings among US Refiners
Of the 17 analysts covering Andeavor (ANDV), 15 (88%) have rated the stock a “buy” so far in August 2017. Two analysts have rated ANDV a “hold.”
How Are Analysts Rating MPC after Its 3Q16 Earnings?
The analyst survey shows that nine out of the 12 companies surveyed rated Marathon Petroleum (MPC) as a “buy,” “overweight,” or “outperform.”
Do Marathon Petroleum’s Valuations Stand above Peer Averages?
Currently, MPC trades at a forward PE (price-to-earnings) ratio of 14.8x, above its peer average of 13.8x.
Your Segmental Analysis of Marathon Petroleum’s 4Q15 Results
On a sequential basis, Marathon’s operating income fell by 78%. All the segments reported declines in income in 4Q15 over 3Q15.
Update: Distillate inventory movement
Inventories provide a useful snapshot of distillate demand and supply trends, particularly near and during the winter months.
Phillips 66’s Cash Flow: Rising Shareholder Returns and Capex
From 3Q14 to 3Q15, PSX maintained average quarterly cash flow from operations at $1.1 billion. The company has continued its focus on preserving growth.
Phillips 66: Refining Yields in the Fourth Quarter
Phillips 66’s (PSX) refining operations yielded 45% gasoline and 39% distillates in the fourth quarter.
Will Tesoro’s Stock Uptrend Last after 4Q15 Earnings?
Tesoro Corporation’s (TSO) stock was on an uptrend in 2015, fueled by healthy refining margins. TSO rose 21% in the trailing 12 months up to January 20, 2016.
How Did Valero’s Refining Margins Shape Up in Its Latest Quarter?
Valero’s total refining capacity is 3.0 MMbpd (million barrels per day), of which 1.7 MMbpd is located in the US Gulf Coast.
Marathon Petroleum’s Cash Flow Position
In the first half of 2018, Marathon Petroleum (MPC) had $2.249 billion in cash from operations. The company had cash outflows of $1.466 billion.
MPC, ANDV, VLO, PSX: Why Refining Stocks Are Underperforming SPY
In this series, we’ll perform a cross-sectional analysis of refining stocks. We’ll examine their moving averages and eight-day price forecasts based on implied volatility, and compare their leverage, liquidity, capex, and refining margins.
Behind Delek US Holdings’ Scant ‘Buy’ Ratings
Four (27%) of the 15 analysts covering DK have rated it a “buy” so far in August 2017.
Heating Oil Prices Fall by ~11 Cents per Gallon
Last week, as of March 23, residential heating oil prices averaged ~$2.93 per gallon—~11 cents per gallon lower than the week before.
Why the Chemicals and Midstream segments outperformed in 2Q14
Phillips 66’s net income decreased ~10% to $863 million in 2Q14—from $958 million in 2Q13. Despite the decrease, the Midstream and Chemicals segments’ share in the net income increased to 11% and 33% in 2Q14.
Valero’s 1Q17 Earnings Beat Estimates, Refining Margin Expands
Valero Energy (VLO) posted its 1Q17 results on April 25, 2017. Before we proceed with an earnings review, let’s quickly examine VLO’s 1Q17 performance versus its estimates.
Average US Households Expected to Spend $710 Less on Heating Oil
Like gasoline and distillates, heating oil consumption or demand trends matter to refineries.
4Q16 Pre-Earnings Release: Valero’s Stock Performance
Refining sector stocks usually perform in line with refining margins and cracks. Since February 2016, refining stocks have been putting up volatile performances.
How Analysts Rate Pre-Earnings for PSX, MPC, HFC, and VLO
Marathon Petroleum is growing with its capex and acquisitions, including the latest acquisition of Andeavor.
What Tesoro’s Refining Index for 3Q16 Suggests
In 3Q16, Tesoro’s (TSO) refining index values, which are regional crack indicators in the areas where TSO operates, have fallen compared to 3Q15.
MPC, TSO, VLO, PSX: Which Refining Stock Is Trading at a Premium?
Now, let’s look at the forward valuations of Marathon Petroleum (MPC), Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX).
Marathon Petroleum’s Debt Is Lower than Industry Averages
Marathon Petroluem’s net debt-to-EBITDA ratio stood at 1.9x in 4Q16. It’s lower than the average industry ratio of 2.8x.
Refining Stocks and Oil Prices: Understanding the Correlation Coefficient
The correlation coefficient of Phillips 66 (PSX) and WTI stands highest among refiners at 0.42.
Important update on heating oil prices
As of January 5, residential heating oil prices averaged ~$2.97 per gallon, ~$0.08 lower than last week and $1.05 lower than the same week last year.
Crude Prices Fell Again Due to Long-Term Oversupply Concerns
NYMEX-traded WTI crude oil futures for March delivery fell and closed at $29.64 per barrel on February 19. Oil prices fell due to long-term oversupply concerns.
Why MPC and PSX Trade at a Premium, ANDV and VLO at a Discount
In the previous part of this series, we discussed refining stocks’ dividend yield trends. Now, we’ll look at the forward valuations for Marathon Petroleum (MPC), Andeavor (ANDV), Valero Energy (VLO), and Phillips 66 (PSX).
Why Most Analysts Are Calling Marathon Petroleum a ‘Buy’
Marathon Petroleum (MPC) has been rated by 19 Wall Street analysts. Seventeen analysts (or 89%) have rated it as a “buy” so far in May 2017.
Comparing MPC’s, TSO’s, VLO’s, and PSX’s Valuation
Average valuation multiples Earlier, we discussed refining stocks’ performance in 1Q17 and compared their dividend yields. In this part, we’ll look at Marathon Petroleum’s (MPC), Tesoro’s (TSO), Valero Energy’s (VLO), and Phillips 66’s (PSX) forward valuation. The average forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples and average forward PE […]
Heating oil prices prices rise by about 11 cents per gallon
Heating oil prices are linked to crude prices. As crude prices began to fall late last year, so did heating oil prices. However, last week, crude prices had been rising. This move was mirrored by heating oil prices, as the graph above shows.
How Is Marathon Petroleum Stock Performing in 4Q17?
Since October 2, 2017, Marathon Petroleum (MPC) stock has risen 15.7%, outperforming the SPDR S&P 500 ETF (SPY). SPY has risen 5.3% in the same period.
How Refining Stocks’ Historical Valuation Compares
Refining stocks’ valuation In this part, we’ll compare refining stocks’ EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratios with their three-year averages. Marathon Petroleum (MPC), Valero Energy (VLO), Phillips 66 (PSX), and Tesoro (TSO) are trading higher than their historical valuation. MPC was trading at a 10.3x EV-to-EBITDA ratio in 1Q17, compared […]
Gasoline Prices Continue their Uptrend the Week of May 8
For the summer of 2015, the EIA expects consumption to average 9.2 MMbpd, which is 0.14 MMbpd higher than last summer’s consumption.
Marathon Petroleum’s Credit Rating Compared to Its Peers
Marathon Petroleum’s credit rating of BBB is higher than Tesoro. Valero Energy’s (VLO) rating is in line with Marathon Petroleum’s credit rating.
HollyFrontier Stock Has Fallen 25% in Q4 2018
Since October 1, the beginning of the fourth quarter, HollyFrontier (HFC) stock has fallen 25%.
How Oil and Gas Refining and Marketing Stocks Performed Last Week
Marathon Petroleum (MPC) was the biggest loser last week from the refining and marketing sector.
XLE Rose Despite Weakness in Crude Oil Prices Last Week
The Energy Select Sector SPDR ETF (XLE) gained 3.45% in the week ended August 14. This ETF tracks a diverse group of ~45 of the largest American energy stocks.
WTI-Brent Spread Narrows Due to Lower Production and Iran Deal
A narrower WTI-Brent spread is a positive for US producers, but a negative for US refiners.
Valero Energy Stock Fell 10%: What’s the Story?
Valero Energy (VLO) stock fell 10.3% on Friday, October 19. That same day, Goldman Sachs downgraded the stock from a “neutral” to a “sell.”
Must-know: Putting Phillips 66’s debt levels into perspective
There’s no imminent liquidity crisis. PSX is generating enough cash to cover its major needs. Its high debt level is a concern—particularly if there’s any liquidity crunch in the financial market.
What Drove Diesel Prices Higher the Week Ended September 4?
Prompt New York Harbor ultra-low-sulfur diesel futures traded on the NYMEX closed ~2.4% higher on a weekly basis at ~$1.62 per gallon in the week ended September 4.
Analyzing the latest increase in heating oil prices
As of February 16, residential heating oil prices averaged ~$3.03 per gallon. The prices were ~$0.12 per gallon higher than last week.
This US Refiner Had the Highest Utilization Rate in 1Q17
Tesoro (TSO) achieved a 92% refinery utilization rate in 1Q17—the highest among our select group of four major US refiners.
MPLX LP: The infrastructure link in Marathon Petroleum’s chain
Marathon Petroleum Corporation, or MPC, owns 100% of the MPLX general partnership, or GP, interests, as well as the incentive distribution rights.
Crude Oil Prices Fell and Warren Buffet Sold ExxonMobil
NYMEX-traded WTI crude oil futures contracts for September delivery fell by 0.24% on September 8. Oversupply concerns were weighing on crude oil prices.
How Refining Stocks’ Valuations Compare to Historical Averages
In this article, we’ll look at refining stocks’ EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratios compared to their three-year historical averages.
Unexpected Inventory Buildup: Will Crude Oil Hit $52 per Barrel?
The US commercial crude oil inventory data will be reported by the EIA today. Prices may experience volatility due to inventory increasing more than market estimates.
Possibly Overbought Refiners Posted Losses Last Week
US refiners have profited from access to cheaper crude oil inputs. But a series of refinery projects being ramped up in Latin America could stall exports.
Marathon Petroleum Stock: Performance ahead of the 1Q17 Earnings
Marathon Petroleum stock has plunged 7% year-to-date. Due to its falling price in 1Q17, the stock has broken below its 50-day moving average.
Diesel Prices Rose Again on May 11
The EIA expects US distillate consumption this summer to average 4 million barrels per day, up 3% compared with last summer.
Why Is Western Refining Raising $500 Million?
Western Refining (WNR) plans to raise $500 million via a term loan. In this series, we’ll give you insights into the company’s operations, financials, market performance, and much more.
These Refining Stocks Are Trading at a Premium
PSX is trading at 9x its forward EV-to-EBITDA ratio and at 16.4x its forward PE ratio, which is above the peer averages.
Phillips 66 Stock Is Down 20% in Q4: USGC WTI 3-2-1 Crack Plunges
Since the beginning of the fourth quarter, Phillips 66 (PSX) stock has fallen 20.3%.
Lower heating oil prices are a positive for US households
Last week, residential heating oil prices fell ~8 cents compared to the prior week, averaging $3.14 per gallon. Prices were 81 cents lower than last year.
Phillips 66 Stands Midway with 47% ‘Buy’ Ratings
Seven of the 15 analysts covering PSX rated it as a “buy” in June.
Why Has Tesoro Stock Fallen in 1Q17?
Since January 3, 2017, Tesoro stock has fallen 8%, more than its peers Marathon Petroleum and Valero Energy, the leading American downstream companies.
What a Wider Crack Spread in Mid-May Means for American Refiners
A crack spread represents the price difference between refiners’ revenues—achieved through the sale of finished refined products—and refiner costs—that is, the price of crude oil.
How Will Marathon Petroleum’s Refining Earnings Fare in 3Q16?
According to MPC, a dollar-per-barrel change in the blended LLS 6-3-2-1 crack spread affects its annual net income by $450 million.
Analysts’ Ratings: Marathon Petroleum and Phillips 66
Marathon Petroleum’s mean target price is $98 per share, which implies a 57% gain from the current level–the highest among its peers.
What Do Refining Stock Valuations Reveal?
With respect to the price-to-earnings ratio, larger players Marathon Petroleum (MPC), Tesoro (TSO), and Phillips 66 (PSX) trade higher than the average valuations.
Residential heating oil prices fall with crude
Heating oil prices are linked to crude prices. As crude prices began to fall late last year, so did heating oil prices.
Correlation Analysis: Marathon Petroleum’s Stock, Oil Prices, and the Broad Market
The correlation value between Marathon and oil prices indicates that in the past year, stock prices of MPC have moved in line with crude oil prices.
Refiners’ Leverages in 1Q17: Who’s Best Placed—MPC, TSO, VLO, or PSX?
The currently unstable refining environment has resulted in volatile refining earnings for big US refiners like MPC, VLO, TSO, and PSX.
US Gulf Coast 3:2:1 Crack Spread Widened Last Week
The wider the crack spread, the more profitable it is for refiners such as Valero Energy (VLO), Phillips 66 (PSX), Marathon Petroleum (MPC), and Tesoro (TSO).
Why Loeb Cut Exposure to Netflix, Microsoft, and Alibaba in Q4
In its third-quarter letter to investors, Third Point told investors that it reduced its “tech exposure meaningfully.”
US Gulf Coast 3:2:1 Crack Spread Rises in the Week to June 26
The benchmark US Gulf Coast 3:2:1 crack spread rose 4.4% to $17.385 per barrel in the week to June 26—compared to $16.65 per barrel on June 19.
What Do Changes in Heating Oil Prices Mean?
As of March 16, residential heating oil prices averaged $3.03 per gallon, $0.18 per gallon lower than last week and $1.09 per gallon lower than a year ago.
A key update on heating oil prices
The latest STEO forecasts that US heating oil prices should average $2.90 per gallon, 25% lower than last year.
Middle East Tensions and Slowing US Production Impact Crude Oil
Lately, Middle East tensions and slowing US production are driving oil prices higher. Oil prices gained 21% in April 2015.
Marathon Petroleum’s Q1 Refining Earnings Outlook
So far in the first quarter, according to Marathon Petroleum, the blended crack has fallen by $2.1 per barrel YoY to $6.5 per barrel.
Visa Inc Led the High-Grade Bond Market Last Week
Visa Inc (V) issued A1/A+ rated high-grade bonds worth $16.0 billion via six parts. This included $1.75 billion in 1.20% two-year notes at a spread of 30 bps.
Why Did WTI Fall More than Brent Crude Oil Prices?
WTI crude oil futures contracts for January delivery fell by 4.7% during the first week of December. Crude oil prices were volatile due to OPEC’s meeting.
What Happened to Valero’s Refining Margin in 3Q17?
In 3Q17, Valero Energy (VLO) saw a rise in its gross refining margin by $2.2 per barrel over 3Q16 to $10.9 per barrel.
Marathon Petroleum’s Valuation and the Peer Average
MPC trades at valuations above its peer averages, likely because it is now in the process of restructuring the organization to unlock value.
PSX’s Gross Refining Margin Rises to $9.4 per Barrel in 4Q15
Phillips 66 saw its gross refining margin (or GRM) rise by $0.1 per barrel over 4Q14 to $9.4 per barrel in 4Q15.
Phillips 66 margins dip on refined products crack spread
The crack spread measures the difference between market prices for refined petroleum products and crude oil. In the US, we follow a 3:2:1 crack spread.
Refiners’ Valuations: MPC, TSO, VLO, and PSX
VLO’s forward PE multiple is 12.9x, and its forward EV-to-EBITDA multiple is 6.1x.
What Can We Expect from Marathon Petroleum’s 4Q15 Results?
Marathon Petroleum (MPC) is expected to post its 4Q15 results on February 3, 2016.
Andeavor’s 4Q17 Refining Index: Could Margins Sustain 3Q17 Levels?
ANDV’s Midcontinent index value has declined to $19.00 per barrel in 4Q17 quarter-to-date from $20.10 per barrel in 3Q17.
Must-know: Why gasoline inventories saw huge draws
Last week, gasoline inventories declined by 2.3 MMBbls, to 210 million barrels—the lowest level in 2014, according to the EIA. The EIA described this level as being in the middle of the five-year average range.
VLO’s Net Refining Margin Fell to $5.6 per Barrel in 4Q15
Let’s talk about VLO’s refining margin in 4Q15. The adjusted operating income from the refining segment fell by 3% over 4Q14 to $1,480 million in 4Q15.
Why Did Gasoline Inventories Rise in the Last Week of July?
Gasoline production increased from ~9.68 million barrels per day (or MMbpd) in the week ended July 24 to 9.98 MMbpd in the week ended July 31.