Marathon Petroleum Is A Good Investment For The Next 2 Years

Mirsad Tulic
184 Followers

Summary

  • Marathon Petroleum is the largest oil refining company in the US and one of the largest in the world with a capacity of 3 million barrels per day.
  • It is supposed to profit from the recovery once airlines rebound to pre-pandemic air traffic levels and gasoline demand increases.
  • MPC reported strong Q4 2021 revenue and EPS and announced additional share buybacks.
  • The biggest strength is its Midstream division with predictable, guaranteed cash flows, independent of the oil price.
  • Despite dampened air travel throughout 2021, oil demand and refinery output show resilience.

Marathon

Marathon

RiverNorthPhotography/iStock Unreleased via Getty Images

With a refining capacity of 2.9 million barrels a day in 13 refineries and a refining throughput of 2.8 million barrels per day in Q3 2021, Marathon Petroleum Company (NYSE:MPC) is the largest refiner in the United States. The crucial

This article was written by

184 Followers
I am a mathematician and statistician by education, working currently on my Ph.D. thesis using methods from statistics, econometrics and time-series analysis. In 2014 I started a full-time job at the Austrian Oil and Gas company, OMV AG where I worked as a risk officer in the gas and oil trading department. In 2019 I switched to the finance department where I contribute to various digitalization and automation initiatives. I have started investing in stocks in 2015 with my own money as well as advising friends and family on investments.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MPC 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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