Tesoro Corp

Now, let’s look at the forward valuations of Marathon Petroleum (MPC), Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX).

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.

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.

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 […]

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 […]

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.

Tesoro Logistics’ (TLLP) operations are organized into the Crude Oil Gathering segment and the Terminalling and Transportation segment.

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.

The EIA reported RBOB gasoline futures contract 1 prices at $1.30 per gallon on November 23, representing a fall of ~1.8% from $1.32 per gallon on October 16.

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.

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.

This series will provide you a complete overview of the refining industry as well as a quick snapshot of downstream sector stocks in the US.

Phillips 66’s 90-day daily beta stands at 1.1, which is below its peer average of 1.5.

Valero’s crack indicators have fallen in all of these areas in May 2017 (as of May 23) as compared to April 2017.

Refiners’ cash flows have turned volatile over the past few quarters due to volatile refining earnings.

Tesoro (TSO) has been rated by 18 analysts. Of those, 12 have assigned the stock a “buy” or “strong buy” rating.

Tesoro (TSO) posted its 1Q17 results on May 8, 2017. Revenues missed analysts’ estimate, but adjusted EPS of $0.55 surpassed the estimate of $0.31.

After its earnings, Phillips 66 was rated by 19 analysts. Four analysts gave it a “buy,” 15 gave it a “hold,” and no analysts gave it a “sell.”

In this series, we’ve examined Tesoro’s (TSO) 1Q17 estimates, refining margin outlook, and stock performance ahead of its earnings release expected on May 8, 2017.

Since January 3, 2017, TSO stock has fallen 9.8%. Comparatively, crude oil prices have fallen 5.2%, and natural gas prices have fallen 5.6% year-to-date.

MPC’s operating income rose 64% YoY to $553 million in 4Q16. The Refining segment’s operating income rose to $219 million in 4Q16 from $179 million in 4Q15.

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.

Thirteen out of the 18 analysts covering Tesoro (TSO) have rated it as a “buy” so far in March 2017. Another five analysts have rated TSO as a “hold.”

Phillips 66’s (PSX) 90-day beta stood at 1.2 on March 16, 2017, below its peer average of 2.1.

Fifteen out of the 19 analysts covering Phillips 66 (PSX) rated it as a “hold” in March 2017. Another four analysts rated PSX as a “buy” or a “strong buy.”

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.

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

The correlation coefficient of Valero (VLO) and WTI stands at 0.15. The correlation value for Valero’s stock and oil price show that they have a positive but feeble correlation.

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.

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

In this article, we’ll look at Tesoro’s (TSO) and Western Refining’s (WNR) valuations following the news of TSO’s acquisition of WNR.

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.

Of the total consumption of 20.2 MMbpd, in October 2016, gasoline accounts for around 9.1 MMbpd. Distillate fuel oil accounts for 4.1 MMbpd of the total.

In a bid to foster its biofuels business, Tesoro (TSO) has agreed to acquire Virent. The company is expected to operate as Tesoro’s wholly owned subsidiary.

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.

Western Refining (WNR) recorded a fall in gross refining margins, from $16.80 per barrel in 1Q15 to $10.80 per barrel in 1Q16.

In 1Q16, PBF Energy’s revenues surpassed Wall Street analyst estimates by 12%. PBF’s 1Q16 adjusted EPS was -$0.65, as compared to the estimated -$0.47.

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.

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 EIA reported that US on-highway diesel fuel prices rose by 0.8% week-over-week and closed at $2.40 per gallon on June 6, 2016.

Investor flows into high yield bond funds were negative last week for the second consecutive week. Net outflows from high yield bond funds totaled $1.9 billion.

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.