Why I'm Bullish Again On Marathon Petroleum

Summary

• Marathon Petroleum has used over half of its 2021 Speedway proceeds to repurchase stock. The $7.5 billion in remaining buybacks post-3Q21 offers significant support to MPC’s equity price.
• This $46 billion market cap company, a 63% owner of $32.1 billion mid-streamer MPLX, currently pays a regular dividend of 3.1%.
• The company has one renewable diesel plant operating, one planned, a soybean oil feedstock joint venture with ADM, and its Alaskan refinery under strategic review.

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Marathon Petroleum Corporation (NYSE:MPC) owns 2.9 million barrels per day (BPD) of US oil refining capacity and the majority of a well-integrated midstream partnership.

In mid-2021, MPC sold the Speedway retail assets for $21 billion ($17.2 billion after-tax) and

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MPC, VLO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.