Marathon Petroleum Corp

Valero Energy (VLO) has witnessed a rise in its short interest since mid-February 2017.

VLO’s mean price target of $72 per share implies around a 10% gain from its current level.

Refining stocks’ implied volatilities have witnessed falls in 1Q17. Marathon Petroleum’s (MPC) implied volatility fell 7% to 27.9% from January 2 to March 31, 2017.

In this article, we’ll compare Tesoro’s (TSO) PEG ratio (price-to-earnings to blended growth rate) to those of its peers. We’ve considered the mean estimate of PEG.

Marathon Petroleum’s refining earnings are impacted by the blended LLS 6-3-2-1 crack, the sweet-sour differential, and the LLS-WTI spread.

Marathon Petroleum’s implied volatility currently stands at 28%—the highest level among peers Valero, Tesoro, and Phillips 66.

On March 2, 2017, Marathon Petroleum’s 90-day beta stood at 2.0—the highest among peers Valero, Tesoro, and Phillips 66.

The correlation coefficient of Marathon Petroleum and WTI stands at 0.35—a positive but feeble correlation.

Tesoro (TSO) posted its 4Q16 results on February 6, 2017. It reported revenues of $6.6 billion, which missed Wall Street analysts’ estimates.

After MPC proposed the dropdown plan, MPC’s forward price-to-earnings (or PE) and EV-to-EBITDA stood at 15.7x and 8x, respectively.

Marathon Petroleum’s (MPC) implied volatility currently stands at 37%, the highest among its peers.

Phillips 66’s adjusted EBITDA from its Marketing segment fell 22% from 3Q15 to $429 million in 3Q16 due to weaker marketing margins and lower volumes.

After Elliott Management’s recommendations, Marathon Petroleum’s forward EV-to-EBITDA multiple stood at 23.1x.

Refining margins are dependent on input crude oil cost, product slate, and prices of refined products and are indicators of overall profitability.

The key factors influencing refining profitability include refining capacity, complexity, and utilization rates.

The Gulf Coast, a key US refining region, accounted for 9.6 MMbpd of total refining capacity, which represents 52% of the total refining strength in the US.

Refiners such as PSX, MPC, VLO, and TSO are now focusing on diversifying their earnings models to shield themselves from the volatile refining environment.

Since the end of June, Marathon Petroleum’s (MPC) stock has risen by 28%. MPC has crossed over its 50-day and its 200-day moving averages during this period.

Nine out of ten companies surveyed rated Valero (VLO) a “buy,” “overweight,” or “outperform.”

Between July 2014 and November 2015, Marathon Petroleum (MPC) stock rose 51%. But after that, the stock fell until early 2016.

Marathon Petroleum’s (MPC) refining segment’s operating income plunged to -$62 million in 1Q16 due to a fall in its gross refining and marketing margin.

Valero’s diesel crack indicators have been rising in 2Q16 compared to 1Q16. The US West Coast, where VLO has 0.3 MMbpd refining capacity, saw the largest rise of $3.20 per barrel.

Amid stock price volatility, Valero rose 20% from February 8–March 28, 2016, and crossed over its 50-day and 200-day moving averages.

The correlation value of Phillips 66 (PSX) and crude oil prices shows that the price of PSX stock moves in line with WTI prices to a certain extent.

Phillips 66 (PSX) has segments in refining, midstream, chemicals, and marketing. In 1Q16, the refining segment contributed $86 million, or 24%, to its adjusted net income.

The correlation coefficient of Western Refining versus WTI and Brent stands at -0.53 and -0.64, respectively.

Natural gas is used as heating fuel in 48% of the homes across the country, electricity is used for heat in 38% of homes, and the rest of the fuels are used for heat in the remaining 14% of homes.

The benchmark US Gulf Coast 3:2:1 crack spread fell ~12.50% last week. It hit ~$13.28 per barrel on Friday, November 13, 2015.

In a press release published on July 13, 2015, MarkWest Energy Partners (MWE) and MPLX LP (MPLX) announced that the two MLPs have agreed to merge.

August WTI crude oil futures contracts fell by $0.74 and closed at $50.15 per barrel on July 20. Brent fell by $0.45 and settled at $56.65 at the close of trade.

The Colonial pipeline system is the largest refined products pipeline in the US based on barrels per mile transported.

MPLX LP (MPLX) is a master limited partnership, or MLP. It was formed by independent refiner Marathon Petroleum Corporation (MPC).

Location-advantaged refiners like Valero Energy (VLO), Phillips 66 (PSX), and Marathon Petroleum (MPC), with refineries along the Gulf Coast, can export refined products.

Tesoro’s activities at the cash flow from financing level have been both a source and a destination for Tesoro’s cash over the years.

Canton to East Sparta consists of two parallel pipelines that connect MPC’s Canton refinery with the MPLX East Sparta, Ohio, breakout tankage and station.

George Soros’ Soros Fund Management added a new position in Marathon Petroleum (MPC) that accounts for 0.45% of the fund’s 1Q 2014 portfolio.