Marathon Petroleum Corp.NYSE
Yesterday, 5:33 PM
- Handing a victory to Native Americans and environmental types, the U.S. Army Corps of Engineers says it will deny the necessary permits for the Dakota Pipeline project to proceed.
- The Army Corps says it will not allow the pipeline to be built under Lake Oahe, and will study alternative routes.
- The 1,170-mile pipeline is to be built by a group of companies led by Energy Transfer Partners (NYSE:ETP). Related tickers: SXL, PSX, MPC, ENB, EEP
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK
Wed, Nov. 23, 7:47 PM
- The EPA today issued final regulations requiring that the amount of ethanol and other biofuels that must be blended into the U.S. fuel supply must increase by 6% next year.
- Since the result is a significant gain over the 4% the EPA recommended in an earlier draft proposal, it is a victory for ethanol makers and a defeat for oil companies that say using more biofuels in gasoline and diesel is costly and unachievable.
- The EPA set the 2017 target for total renewable fuel use at 19.28B gallons, higher than the initial proposal for 18.8B gallons as well as this year's 18.1B gallon requirement; the new mandate includes 15B gallons for conventional biofuel, which is mostly corn-based ethanol, vs. 14.5B gallons last year.
- Tesoro (NYSE:TSO) exec Stephen Brown says the plan is "unworkable" as it forces the use of biofuels beyond the blend wall and that it highlights the need for a legislative overhaul of the program.
- Shares in oil refiners mostly fell in today's trade: TSO -1.4%, VLO -0.8%, HFC -1.8%, MPC -0.3%, WNR -2.2%, PBF -3.5%, PSX +0.2%.
- Shares of biofuels producers rose: GEVO +8.5%, PEIX +7.1%, GPRE +2.1%, REGI +2%, REX +0.8%.
Mon, Nov. 21, 9:09 AM
- Marathon Petroleum (NYSE:MPC) +4.3% premarket on news that Elliott Management sent a letter to the company's board, saying MPC shares are "severely undervalued" and making recommendations it says would unlock $14B-$19B for shareholders.
- Elliott, which owns ~4% of MPC shares, outlines recommendations it says could result in an uplift of 60%-80% or more in the company's stock by immediately dropping down all MLP-qualifying assets to MPLX and conducting a full strategic review of the company.
- The hedge fund also says MPC should consider spinning off its chain of gasoline and convenience stores or break into three businesses, focused on retailing, refining and midstream operations that hold pipeline and storage assets.
Mon, Nov. 14, 5:57 PM
- Energy Transfer Partners (NYSE:ETP) -1.2% AH on news that the Obama administration plans to extend its review before deciding on a permit for the $3.8B Dakota Access crude pipeline, further delaying work on a segment of the project that has been stalled since September.
- The U.S. Army Corps of Engineers says further talks are warranted given the importance of the lake to the Standing Rock Sioux Tribe, and that it will work with the tribe on a timeline “that allows for robust discussion and analysis to be completed expeditiously.”
- The setback likely will prove temporary, as the incoming Trump administration is expected to grant approval to finish the project.
- Other relevant tickers: SXL, ETE, PSX, MPC, ENB, EEP
Mon, Nov. 14, 8:45 AM
Fri, Nov. 11, 2:14 PM
- A decision on completion of the Dakota Access Pipeline near tribal lands in North Dakota will come in the next few days, possibly by Monday, says an Army Corps of Engineers spokesperson.
- The Obama administration intervened in September to temporarily halt construction under Lake Oahe so the Army Corps could review permitting; pipeline owner Energy Transfer Partners (ETP -0.9%) has continued to build to the edge of the federal land where the lake is located, and earlier this week said it was moving equipment to prepare to tunnel under the lake.
- Other relevant tickers include SXL, PSX, MPC, ENB, EEP.
Thu, Nov. 10, 5:48 PM
- The EPA says it will deny several petitions from oil groups to change the U.S. biofuels program, although it will open a 60-day public comment period.
- Valero Energy (NYSE:VLO), HollyFrontier (NYSE:HFC), Monroe Energy and the American Fuel and Petrochemical Manufacturers have petitioned the EPA to consider changing the rule to reduce the onus on refiners that have little capacity to blend biofuels at their operations.
- The change the refiners are requesting "would not address the challenges associated" with boosting availability of advanced fuels and getting more ethanol into the fuel system, the EPA says.
- Tesoro (NYSE:TSO) and Marathon Petroleum (NYSE:MPC), which have invested in biofuels blending capacity, say they support the EPA's move toward denying the change.
Wed, Nov. 9, 12:44 PM
- U.S. independent refiners are rallying as investors bet that a Trump administration will ease costly renewable fuel regulations.
- During the campaign, Trump unveiled an energy policy calling for the elimination of many regulations, including the system of buying and selling RINs, although Trump also has said he supports ethanol.
- RINs tracking ethanol use for 2016 have more than doubled in the past year, and RINs tracking biodiesel have jumped 59% Y/Y, according to Bloomberg data.
- In today's trade: CVI +22.5%, CVRR +15.4%, PBF +12.2%, HFC +11.7%, DK +6.1%, VLO +4.8%, WNR +4.4%, TSO +2.9%, MPC +2.8%, PSX +1.9%.
Mon, Nov. 7, 5:56 PM
- Some Iowa landowners are complaining about construction of the Dakota Access oil pipeline, saying crews have left behind debris, released cattle from grazing areas and disrespected their land, according to the Des Moines Register.
- Several Iowa landowners have petitioned county inspectors, supervisors and state regulators, claiming that questionable construction practices are worsening tensions between landowners and builders of the 1,170-mile pipeline.
- Dakota Access says it takes its construction commitments seriously, but that none of the complaints filed with the Iowa Utilities Board has been validated so far.
- Energy Transfer Partners (NYSE:ETP) is the project leader; other relevant tickers include SXL, PSX, MPC, ENB, EEP.
Sun, Nov. 6, 5:04 PM
Wed, Nov. 2, 3:56 PM
- Oil prices and energy equities plunged sharply as the latest inventory data showed U.S. stockpiles posted the largest weekly surge in 34 years, after the consensus outlook had pointed to only a modest rise.
- WTI crude oil -2.9% to settle at $45.34/bbl, its lowest since Sept. 27, and Brent crude -2.7% to $46.86, also its lowest since late September.
- “You could easily make the argument it’s the most bearish report of all time,” says Bob Yawger, director of the futures division of Mizuho Securities USA. “There’s nothing to support the market.”
- WTI, which already was turning lower in recent days, has now fallen 12% in just two weeks since hitting a one-year high on Oct. 19 and marks the third retreat from $50/bbl toward $40 within five months.
- Among individual stocks: XOM -0.1%, CVX -0.9%, RDS.A -2%, BP -0.2%, TOT -2.4%, COP -0.6%, MRO -3.6%, HES -1.3%, PSX -2.3%, MPC -3.4%, VLO -1.9%, SLB -1%, HAL -0.5%.
- ETFs: USO, OIL, XLE, UWTI, UCO, VDE, ERX, DWTI, OIH, SCO, XOP, BNO, DBO, ERY, DIG, DTO, USL, DUG, BGR, IYE, IEO, FENY, DNO, PXE, FIF, OLO, PXJ, RYE, SZO, NDP, GUSH, DRIP, DDG, FXN, OLEM
Wed, Nov. 2, 1:20 PM
- This week’s Colonial Pipeline explosion and shutdown (I, II, III) looks like another weight for the refining sector which already is pressured by gasoline stockpiles that are holding on to historic highs for this time of year, with a glut left over from the summer, WSJ reports, and traders now expect supplies in the Gulf Coast and southwest to build up, stranded without a fully operational Colonial.
- Delek US (DK -3.9%) and Alona USA Energy (ALJ -7.3%) are the week's biggest losers so far, down ~10% in just two days, and Valero Energy (VLO -1.8%) and Marathon Petroleum (MPC -3.1%) also are sharply lower; the pervasive pessimism even drags down some that may benefit from Colonial’s problems, such as east coast refiner PBF Energy (PBF -2.4%), which has given back some of yesterday's gains.
- Refiners also continue to face rising costs for crude sold in later months and renewable fuel credits, as well as signs that the stabilization in gasoline prices has caused U.S. consumers to pull back on rapid demand growth.
Wed, Nov. 2, 11:22 AM
- Energy Transfer Partners (ETP -1.3%) is lower as Pres. Obama weighs in on the Dakota Access pipeline, saying the U.S. government is examining ways to reroute the pipeline and address concerns raised by Native American tribes.
- Obama's comments are his first to directly address the escalating conflict between local authorities and protesters over the $3.8B pipeline project.
- Obama says government agencies will let the situation "play out for several more weeks and determine whether or not this can be resolved in a way that I think is properly attentive to the traditions of First Americans."
- Other relevant tickers include SXL, PSX, MPC, ENB, EEP
Tue, Nov. 1, 1:57 PM
- Marathon Petroleum (MPC -2.9%) is upgraded to Neutral from Sell with a $44 price target, raised from $38, at UBS, as a result of its newly announced plans to unlock value in the GP and accelerate growth at the MLP.
- UBS says the news alleviates some of its concerns over MPLX's slower growth and the potential for MPC to be more accommodative.
- While these measures may mean taking on more units than cash on dropdowns, the firm does not expect the multiple paid to be highly accommodative as seen in the marine asset dropdown earlier in 2016 (i.e., 5.0x).
Tue, Nov. 1, 7:59 AM
- The Colonial Pipeline, the largest fuel pipeline in the U.S., has been shut down for the second time in two months following a fatal explosion and fire in Alabama, bringing the likelihood of higher gasoline prices in the southeastern and mid-Atlantic regions of the U.S.
- Nymex gasoline for December delivery has spiked as much as 15% and its premium to crude shot up by 60% to as high as $18/bbl.
- The longer the mainlines are offline, “the more upward pressure will be placed on U.S. East Coast fuel prices, while downward pressure will be exerted on U.S. Gulf Coast product prices," says Robert Campbell, head of oil products research at Energy Aspects.
- Some major U.S. refiners are higher in premarket trading as the premium jumped, including Phillips 66 (NYSE:PSX) - which operates a refinery near New York City - Valero Energy (NYSE:VLO) and Marathon Petroleum (NYSE:MPC).
- Colonial Pipeline is owned by Koch Industries, South Korea’s National Pension Service, Royal Dutch Shell (RDS.A, RDS.B) and others.
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, SZO, OLEM