Tue, Aug. 23, 12:37 PM
- Construction will remain halted on the 1,154-mile Dakota Access pipeline at a site near the Missouri River after a federal judge postpones a hearing to determine whether protesters should be prevented from accessing the site.
- The judge delayed a hearing until Sept. 8 to decide whether to grant a preliminary injunction sought to block the protesters from the site, while agreeing to extend a temporary restraining order against several of the protesters; the Standing Rock Sioux tribe argues that the pipeline threatens sacred sites and poses a risk to its drinking-water supply.
- The $3.7B pipeline is being built by Energy Transfer Partners (ETP +0.5%) and its Sunoco Logistics Partners (SXL -0.1%) affiliate; refiner Phillips 66 (PSX +1.1%) owns a 25% stake, and Enbridge Energy Partners (EEP +0.1%) and Marathon Petroleum (MPC +1.4%) bought a stake for $2B earlier this month.
Tue, Aug. 16, 4:42 AM
- Billionaire investor Carl Icahn has called on the EPA to make changes to the market for renewable fuel credits or else risk "the mother of all short squeezes" that could bankrupt refiners.
- "The RIN market is the quintessential example of a 'rigged' market where large gas station chains, big oil companies and large speculators are assured to make windfall profits at the expense of small and midsized independent refineries which have been designated the 'obligated parties' to deliver RINs."
- Related tickers: VLO, NTI, CLMT, MPC, TSO, ALDW, CVI, WNR, PBF, DK, HFC, CVRR, NTI, ALJ, TSO, WNR, PSX, XOM, PBF
Thu, Aug. 11, 6:57 PM
- Major U.S. refiners are on track to pay record amounts this year for credits to comply with U.S. renewable fuel rules, a trend that is bound to continue to hurt profits for the group, Reuters reports.
- A group of 10 refinery owners including Marathon Petroleum (NYSE:MPC) and Valero Energy (NYSE:VLO) spent at least $1.1B buying RINs, according to a Reuters review of their filings, placing them on track to surpass the annual record of $1.3B spent by the same group in 2013.
- RINs averaged ~$0.78 each during Q2, ~25% above the same period a year ago, according to the analysis, due to more ambitious targets from U.S. regulators on the volumes of ethanol required to be blended with gasoline.
- Other relevant tickers include PBF, CVRR, HFC, TSO, PSX, WNR, DK.
Thu, Aug. 4, 9:58 AM
- The long-planned and often-delayed Sandpiper pipeline through the U.S. Midwest seems a likely casualty of plans by Enbridge (ENB, EEP) and Marathon Petroleum (NYSE:MPC) to acquire a portion of the rival Dakota Access Pipeline while scrapping their joint venture agreements and transportation services for the 450K bbl/day Sandpiper project.
- Current outgoing pipeline capacity from the Bakken is ~641K bbl/day, but will surge to 1.21M bbl/day once Dakota Access becomes operational; with global oil futures down by 70% in the last two years, traders and analysts say there just is not enough crude in production in the U.S. Midwest for both pipelines.
- For ENB, investing in another project could be the best move forward: The $2.6B Sandpiper project originally was planned for startup this year, but Minnesota regulators ordered environmental reviews that pushed the timetable out to 2017 and then to 2019.
Wed, Aug. 3, 8:17 AM
- Enbridge Energy Partners (ENB, EEP) and Marathon Petroleum (NYSE:MPC) agree to pay a combined $2B for a 49% stake in the Bakken pipeline system from an affiliate of Energy Transfer Partners (NYSE:ETP) and Sunoco Logistics Partners (NYSE:SXL).
- EEP says it is paying $1.5B for its share in the deal, while MPC says it is contributing $500M in the joint venture project to acquire the stake in the holding company that owns 75% of the pipeline network.
- The deal follows the startup earlier this year of the Southern Access Extension, linking Enbridge’s mainline terminals near Chicago to the storage hub in Patoka, Ill.
- The deal gives EEP the ability to move shale oil from the Bakken to refineries along the U.S. Gulf Coast, through connections to its mainline; EEP will seek to set joint tolls to the Gulf.
- ETP and SXL will receive a respective $1.2B and $800M in the sale.
Fri, Jul. 29, 5:39 PM
Fri, Jul. 29, 4:57 PM
- Phillips 66 (NYSE:PSX) CEO Greg Garland predicts refiners will process less crude in H2 of this year as margins shrink due to a gasoline glut.
- "We've got a lot of inventory stacked up," but demand for refined products remains strong, Garland said on today earnings conference call.
- PSX says its refineries will function at a mid-90% capacity in the current quarter rather than 100% utilization in Q2, in which its reported profit was sliced in half as earnings from its refining business plunged 75% Y/Y.
- PSX's Q2 refining margin was $7.13/bbl, well below $8.22/bbl estimated by Wells Fargo analysts, and smaller rival Alon USA Energy (NYSE:ALJ) reported that its Q2 refinery operating margin fell by more than half to $3.96/bbl.
- Throughout the week, Valero Energy (NYSE:VLO), Marathon Petroleum (NYSE:MPC) and BP all reported a decline in refining margins for the period.
Thu, Jul. 28, 6:48 AM
Wed, Jul. 27, 11:47 PM
Wed, Jul. 27, 5:30 PM
- AB, ABMD, ACIW, ACOR, ADP, AEP, ALKS, ALLE, ALXN, AMT, APD, ARIA, AZN, BC, BCC, BCO, BCOR, BEN, BG, BGCP, BHI, BMS, BMY, BSX, BWA, BWEN, BZH, CAB, CBG, CBM, CELG, CFX, CIT, CL, CLF, CLFD, CME, CMS, COMM, COP, COR, CRR, CRS, CS, CSH, CVI, CVRR, CWT, DBD, DFT, DLX, DOW, DSX, EME, EPD, EQM, EQT, EXLS, F, FCFS, FCN, FI, FIG, FITB, FLY, FSS, GLOP, GNC, GOV, GPI, GPN, GRUB, GTLS, HCA, HEES, HOG, HP, HSY, HTH, IART, IDA, IGT, INCR, INGR, IP, IPGP, IRDM, ITC, ITG, IVC, IVZ, KEM, LAD, LAZ, LDOS, LEA, LKQ, LLL, LPG, MA, MCS, MD, MDP, MDWD, MINI, MITK, MJN, MKTX, MMC, MNRO, MPC, MPLX, MSCI, MTH, MTRN, MVIS, NAP, NEWM, NICE, NMR, NOV, NTCT, NYT, OAK, ODFL, ORI, OSK, PAG, PCG, PES, PF, PJC, PNR, POT, PRLB, PTEN, PX, RDN, RDS.A, RPM, RTN, SCG, SEE, SERV, SFE, SPB, SPGI, SQBG, SQNS, STNG, SXC, SXCP, TCK, TFX, TGI, THRM, TKR, TMO, TPX, TREE, TRI, TZOO, UAN, UBSI, UTHR, VC, VGR, VIVO, VNTV, WCC, WILN, WRLD, WST, WWE, YNDX, ZBH
Mon, Jul. 25, 12:56 PM
- Some U.S. refiners, stuck with the highest inventories of gasoline for this time of year in a quarter of a century, have started blending winter grade gasoline a month earlier than usual to sell later in the year, Reuters reports.
- Looking to cut costs, refiners and blenders reportedly are making an early move to mix cheap butane - a cheaper blending component than most other ingredients - to convert the summer barrels into winter barrels.
- Mixing more winter gasoline now threatens to worsen the glut later, but that's a risk willingly taken by an industry left with few other choices, the report says.
- Independent U.S. refiners are expected to post another quarter of weak earnings en route to possibly the worst year since the shale boom began in 2011.
- Refiners are broadly lower today as crude oil prices drop: PSX -1.6%, VLO -0.7%, MPC -2.3%, TSO -1.6%, HFC -0.7%, WNR -0.3%, PBF -1.5%, DK -0.6%, ALJ -1.7%.
Wed, Jul. 13, 3:56 PM
- Phillips 66 (PSX -0.2%) is downgraded to Equal Weight from Overweight with an $86 price target, lowered from $93, at Barclays, which sees limited upside especially if refining margins rebound and offer greater valuation growth potential to its large-cap peers, including Tesoro (TSO -2.6%), Valero (VLO +0.4%) and Marathon Petroleum (MPC -1.6%).
- Barclays also downgrades Delek US Holdings (DK -4.7%) to Equal Weight from Overweight with a $15 price target, cut from $20, on valuation and continuously challenged margin capture at both DK refineries, neither of which show visibility toward material improvement.
- Meanwhile, the firm upgrades Alon USA (ALJ +0.1%) to Equal Weight from Underweight after the company has significantly underperformed since the end of 2012.
Fri, Jul. 8, 3:23 PM
- Phillips 66 (PSX +0.6%) is downgraded to Market Perform from Outperform at Wells Fargo, citing PSX's relative outperformance and a "shakier outlook" for the company's refining operations.
- The firm lowers its expectations for the quarter, the rest of this year and 2017, seeing the bumpy start to Q3 as “rapidly eroding” hopes for a strong summer; nevertheless, it maintains Outperform ratings on Marathon Petroleum (MPC +2.2%), PBF Energy (PBF +1%) and Valero Energy (VLO +0.9%).
- Despite a recent 3.6M-barrel drawdown in gasoline stocks, inventories remain much higher than a year ago, and analysts have been cutting earnings estimates for big U.S. refiners who report Q2 results in coming weeks.
Wed, Jul. 6, 2:12 PM
Wed, Jun. 29, 3:58 PM
- Tesoro (TSO +1.9%) is upgraded to Buy from Neutral with a $100 price target, lifted from $96, at Goldman Sachs, citing a more constructive outlook for the California refining market, underappreciated value in non-refining assets, and limited risk from higher RINs and a lower Brent-WTI spread.
- Goldman thinks the California refining market will remain well-balanced, despite Torrance returning to service, driven by growing regional demand and the currently low inventories, and that investors have not been giving TSO fair value for its non-refining businesses.
- At the same time, the firm downgrades PBF Energy (PBF +1.2%) to Neutral from Buy with a $26 price target, cut from $37, expecting the company to be “disproportionately negatively impacted” by expectations of higher RINs prices.
- Along with TSO, Goldman rates Valero (VLO +0.1%) and Marathon Petroleum (MPC +4%) as Buys among refiners, while maintaining Sell ratings on Phillips 66 (PSX +1.2%), HollyFrontier (HFC +0.1%), CVR Energy (CVI -0.4%) and CVR Refining (CVRR -1%).
Thu, Jun. 9, 6:57 PM
- Marathon Petroleum (NYSE:MPC) agrees to spend ~$334M to reduce pollution at refineries in five states and pay a $326K civil penalty, the U.S. Justice Department and Environmental Protection Agency said today.
- The agencies said MPC will spend $319M to install state-of-the-art flare gas recovery systems and $15.5M on projects to reduce air pollution at three facilities.
- MPC says the investments began in late 2013 and effectively will be completed by the end of 2018, and that ~$238M of the projected spending will have occurred by the end of this year.
Marathon Petroleum Corp. is an independent petroleum product refiners, marketers and transporters in the United States. The company operates through three segments: Refining & Marketing, Speedway and Pipeline Transportation. The Refining & Marketing segment refines crude oil and other feedstocks... More
Sector: Basic Materials
Industry: Oil & Gas Refining & Marketing
Country: United States