- Citigroup's energy team lowers earnings estimates by an average of 20% on U.S. refiners such as Marathon Petroleum (NYSE:MPC) and Phillips 66 (NYSE:PSX) even while reaffirming its bullish stance on the group, believing crude oil differentials eventually will widen back out over the next 12-18 months once oil storage reaches capacity.
- After running the numbers, Citi's estimates for MPC and PSX are above consensus, and figures MPC likely will post higher Y/Y earnings in 2015 despite the recent decline in crude spreads.
- However, the firm downgrades Tesoro (TSO) to Neutral from Buy on valuation.