Marathon Petroleum Corp. (MPC) - NYSE
  • Fri, Jan. 15, 12:48 PM
    • Valero Energy (VLO -1.7%) and PBF Energy (PBF -2.7%) are among the top picks among refiners by Morgan Stanley, which expects refined product demand to exceed new capacity in 2016 and that a significant decline in global growth would be needed for any negative revisions.
    • Refiners easily outperformed the S&P and the energy sector in 2015, and the firm expects refiners to outperform again in 2016, driven by “positive earnings revisions from base crack spreads that drive higher-than-consensus cash returns."
    • Stanley upgrades PBF to Outperform with a $49 price target and raises its target for VLO to $100 from $90; it also maintains Overweight ratings for Marathon Petroleum (MPC -5.5%) and Phillips 66 (PSX -2.5%) with respective price targets of $65 and $105.
    | Fri, Jan. 15, 12:48 PM | 22 Comments
  • Thu, Jan. 14, 3:26 PM
    • Energy stocks are broadly higher as U.S. crude oil bounces off $30/bbl to end pit trading at $31.22, +2.6%; the SPDR Energy ETF (XLE +5.1%) soars 5%, with 36 of its 40 equity components trading higher, after closing yesterday at its lowest level since September 2010.
    • Exxon Mobil (XOM +5.5%) and Chevron (CVX +5.9%) are the Dow's top two gainers; and pipeline companies sport strong showings with Kinder Morgan (KMI +8.2%), Plains All American Pipeline (PAA +11.7%) and Williams Cos. (WMB +27.4%) among the biggest winners.
    • Among other major energy movers: ETE +22.6%, BP +7.6%, MRO +7.5%, OXY +7.1%, PBR +7%, COP +7%, RDS.A +6.7%, SE +6.1%, PSX +6.1%, ETP +6.1%, EPD +5.3%, APA +5%, E +4.6%, HES +4.1%, MPC +4.1%.
    • Amid overwhelmingly negative sentiment, a few analysts are venturing out to say the worst may be over or nearly so: Deutsche Bank’s Torsten Slok thinks "we now have the worst behind us in terms of the negative impact of falling oil prices on the economy," and Gluskin Sheff’s David Rosenberg argues that the oil selloff is getting “long in the tooth.”
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Thu, Jan. 14, 3:26 PM | 89 Comments
  • Wed, Jan. 6, 7:21 PM
    • U.S. gasoline inventories surged by 10.6M barrels last week, the most since 1993 and far more than expected, which analysts say could send retail prices tumbling another $0.10/gallon or more next week.
    • Prices at the pump have fallen less quickly than oil prices in the past 18 months because of strong consumption; AAA says U.S. drivers are paying an average of $1.999/gal. for retail gasoline, down 8.9% Y/Y, while benchmark U.S. crude oil has plunged 30% in the past year.
    • Strong U.S. demand for gasoline has been one of the few bright spots for oil investors, but consumption fell 13% last week, and the four-week average for gasoline demand dropped below 9M bbl/day for the first time since May.
    • But Marathon Petroleum (NYSE:MPC) CEO Gary Heminger thinks the market is tighter than the numbers suggest because the refining side is running at a high-capacity utilization rate, saying "We have very good optics of actual demands... in our retail stores, and I am not seeing anywhere near a drop-off in gasoline demand or diesel demand versus the inventory build."
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Wed, Jan. 6, 7:21 PM | 11 Comments
  • Dec. 16, 2015, 12:13 PM
    • Congress has agreed to lift the 40-year-old ban on crude oil exports, but refiners are holding up well as the group wins a tax break on the cost of transporting oil as part of the deal.
    • The tax provision meant to blunt potential damage to domestic refiners of allowing unfettered crude exports would allow non-integrated refiners to count 75% of their oil transportation costs toward an existing manufacturing tax deduction.
    • Refiners are "positioned to succeed regardless,” says Carl Larry, head of oil and gas for Frost & Sullivan. “They can still make products cheaper than anywhere in the world... Regardless of whether the U.S. exports crude, they’ll be ahead of the game.”
    • Wells Fargo contends that lifting the ban will have only a minimal impact in the short term, and notes that Phillips 66 (PSX +1.6%) has indicated lifting the move would have no material impact at least for one year; Valero Energy (VLO +1.2%) is better positioned than most because it already relies on a larger percentage of foreign oil for its feedstock to make gasoline and other petroleum products, says Simmons analyst Jeff Dietert.
    • Also: TSO +2.5%, MPC +0.9%, HFC +2.4%, PBF +1.6%, WNR +4.9%, NTI +1.6%, ALJ +1%, CLMT -2.2%.
    • Earlier: Solar stocks soar as Congress proposes extending solar/wind tax credits
    | Dec. 16, 2015, 12:13 PM | 24 Comments
  • Dec. 16, 2015, 2:13 AM
    | Dec. 16, 2015, 2:13 AM | 131 Comments
  • Dec. 14, 2015, 7:25 PM
    • The deep discount for benchmark U.S. crude oil prices vs. global rates looks poised to disappear for the first time since the rise of the shale oil boom, Reuters reports.
    • U.S. WTI crude for delivery in March traded at one point today just $0.20/bbl below global Brent crude for the same month, the narrowest gap since 2010.
    • The sudden shift in the closely-watched spread seems to be sending a signal that the domestic oil market is likely to grow tighter while the global glut gets worse, which likely will spur a renewed rise in U.S. imports and erase the cost advantage of U.S. refiners who have made billions of dollars on cut-price domestic crude.
    • Some oil traders say the spread is responding to signs that the U.S. Congress may throw out the 40-year old ban on exporting U.S. crude, while others cite expectations of higher OPEC production following an easing of western sanctions against Iran that is weighing on Brent.
    • Refiners: PSX, VLO, TSO, MPC, HFC, PBF, WNR, NTI, ALJ, CLMT
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Dec. 14, 2015, 7:25 PM | 62 Comments
  • Dec. 12, 2015, 8:25 AM
    • The 40-year-old ban on most U.S. crude oil exports "very likely" will be lifted in the government spending bill, according to reports citing congressional aides from both parties, as part of a deal D.C. lawmakers are negotiating as part of spending and tax measures Congress is aiming to pass by Dec. 16.
    • In the deal said to be coming together, Congress would lift the export ban while also adopting environmental and renewable energy measures, including long-term extensions of wind and solar tax credits; also under discussion is a tax credit for independent domestic refineries, especially a few in the Northeast whose profits could be hurt if oil exports are allowed.
    • "There’s a view that this is the last chance" ahead of a presidential election year, says ClearView Energy Partners managing director Kevin Book.
    • Refiners: PSX, VLO, TSO, MPC, HFC, PBF, WNR, NTI, ALJ, CLMT
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Dec. 12, 2015, 8:25 AM | 163 Comments
  • Dec. 10, 2015, 6:16 PM
    • Marathon Petroleum's (NYSE:MPC) Speedway, Sunoco (NYSE:SUN) and Alimentation Couche-Tard (OTCPK:ANCUF) are among various groups interested in a potential acquisition of convenience store operator CST Brands (NYSE:CST), according to TheStreet.com.
    • The report comes a day after Engine Capital sent a letter to CST's board requesting action to improve the company's business operations or launch a review of strategic alternatives, including the exploration of a sale.
    | Dec. 10, 2015, 6:16 PM | 4 Comments
  • Dec. 7, 2015, 10:35 AM
    • The energy sector (-4.5%) paces the opening decline, as WTI crude oil prices -4% at $38.35/bbl following a 2.7% slide on Friday after OPEC's failure to agree on a production target to reduce the oil glut.
    • Investors are betting on oil prices staying lower for even longer after OPEC's non-decision, pushing U.S. crude futures for delivery nearly 10 years away below $60/bbl, Reuters reports.
    • But the oil glut is set to continue as much because of the U.S. as of OPEC, as U.S. shale drillers have only trimmed their pumping a little, and rising oil flows from the Gulf of Mexico are propping up U.S. production; the overall output of U.S. crude fell just 0.2% in September, the most recent monthly federal data available, and is down less than 3%, to 9.3M bbl/day, from the peak in April.
    • Goldman Sachs says it expects oil prices to remain "lower for longer," with a risk that prices could fall as low as $20/bbl.
    • In early trading: XOM -2.9%, CVX -4.1%, BP -3.2%, RDS.A -4.2%, COP -4.6%, MPC -3.2%, MRO -7.4%, PSX -2.8%, HES -4.9%, APC -6.1%, OXY -3.1%, EOG -5.8%, DVN -9.3%, PXD -7.2%, APA -3.9%, CHK -8%, CLR -9.1%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 7, 2015, 10:35 AM | 118 Comments
  • Dec. 4, 2015, 12:41 PM
    • Credit Suisse analyst Edward Westlake says favorable market conditions that drove the oil refining business this year will carry over into next year, making many refiner stocks strong buys.
    • Global gasoline demand grew at 3x its historical rate in 2015, and while consensus expectations for gasoline demand predict a regression closer to the long-term trend in 2016, Westlake sees at least another year of strong demand growth remaining.
    • The analyst says he has been surprised at Q4 performance so far , and predicts a 2016 environment conducive to earnings strength, especially among coastal names.
    • Credit Suisse has Outperform ratings on these refiners: VLO +1.6%, NTI +0.5%, CLMT +1.5%, MPC +3%, TSO +1.2%, ALDW -2.3%, WNR +1.6%, PBF +0.2%, DK +1.7%.
    | Dec. 4, 2015, 12:41 PM | 23 Comments
  • Dec. 1, 2015, 2:47 PM
    • MarkWest Energy (MWE -4.8%) unitholders vote to approve a merger deal with MPLX (MPLX -13.6%), overcoming opposition from two MWE founders; the deal is now expected to be completed by Dec. 4.
    • The agreement will make MWE, the second largest natural gas processor in the U.S., a subsidiary of Marathon Petroleum (MPC +0.9%) pipeline operator MPLX, and create one of the biggest MLPs.
    • The overall value of the cash and stock deal originally was pegged at ~$15B in July but had fallen to ~$10B by mid-November amid plunging energy stock prices, when MPC increased the cash portion of the deal to $6.20/unit for MWE shareholders.
    | Dec. 1, 2015, 2:47 PM | 9 Comments
  • Nov. 30, 2015, 3:28 PM
    • Biofuel names react favorably and refiners negatively to just-released EPA biofuel targets that come in above those proposed by the agency in May.
    • Fuel suppliers will be required to mix 16.93B gallons of corn-based ethanol and other renewable fuels into gasoline this year and 18.11B gallons next year, according to the newest EPA targets.
    • The final 2016 standard for advanced biofuel is nearly 1B gallons, or 35% higher than actual 2014 volumes.
    • Biofuel names include: PEIX +17.7%, REGI +8.1%, AMRS +7%, GEVO +4.9%, SZYM +2.5%, GPRE +6.2%, REX +3.2%, ADM flat.
    • Refiners are pulling back: VLO -0.9%, TSO -1.5%, HFC -2.6%, MPC -0.3%, PSX -0.9%, WNR -0.7%, CLMT -2.6%.
    | Nov. 30, 2015, 3:28 PM | 121 Comments
  • Nov. 23, 2015, 11:32 AM
    • Phillips 66 (PSX +0.2%) is downgraded to Sell from Neutral at Goldman Sachs, which believes elevated share prices in the group now make stock picking critical when it comes to refiners.
    • Goldman says it continues to believe refiners will benefit from strong gasoline demand, capital returns to shareholders and favorable capture rates due to low oil prices, but is more concerned about tighter inland crude differentials, MLP-related upside and potential oversupply in the diesel markets.
    • The firm says Valero Energy (VLO +1%) is its top pick in the group, while also upgrading PBF Energy (PBF +3.3%) to Buy from Neutral; it also likes Marathon Petroleum (MPC +0.7%) and Delek US Holdings (DK +1.2%).
    | Nov. 23, 2015, 11:32 AM | 22 Comments
  • Nov. 20, 2015, 9:58 AM
    • MarkWest Hydrocarbon founders John Fox and Brian O'Neill say they will vote against a merger of MarkWest Energy (MWE -1.2%) and MPLX (MPLX -2.1%).
    • Fox already has expressed his views, and O'Neill now says he is in "100% agreement" with Fox, adding "MWE has spent more than $10B in capital expenditures over the previous five years, which means MPLX and its owner, Marathon Petroleum (MPC +0.5%), are merely refunding MWE's unitholders and leaving a small premium for their efforts."
    • At the same time, MWE announces that the Glass Lewis and Egan Jones proxy advisory firms recommend shareholders vote for the merger.
    • Earlier: MarkWest says ISS recommends investors vote for deal with MPLX (Nov. 19)
    | Nov. 20, 2015, 9:58 AM | 2 Comments
  • Nov. 18, 2015, 11:57 AM
    • MarkWest Energy Partners (MWE +2.4%) says the ISS proxy advisory firm recommends MWE unitholders vote in favor of the combination of MWE with MPLX (MPLX -3.3%).
    • The ISS recommendation cites "the premium to the unaffected price at announcement, the subsequent cash increases in the merger consideration, and the strategic advantages of the combination - including both the access to relatively more certain capital sources at a lower cost of capital and the ability to de-risk certain growth opportunities" with Marathon Petroleum (MPC +1.1%) as its parent.
    • Separately, Kayne Anderson Capital Advisors discloses a 5.7% active stake in MWE.
    | Nov. 18, 2015, 11:57 AM | 6 Comments
  • Nov. 17, 2015, 8:24 AM
    • Marathon Petroleum (NYSE:MPC) again raises the cash portion of its cash and stock offer for MarkWest Energy Partners (NYSE:MWE), hoping to clinch its proposed takeover.
    • MPC, which has agreed to buy MWE through its MPLX pipeline unit, says it will now offer $6.20/unit, up from $5.21 offered last week.
    • The latest offer, which MPC and MPLX say represents the best and final offer, nearly doubles the cash portion of the offer from the $3.37/unit offered in July when the deal was reached.
    • MWE +2.7% premarket.
    | Nov. 17, 2015, 8:24 AM | 8 Comments
Company Description
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
Industry: Oil & Gas Refining & Marketing
Country: United States