MPC

Marathon Petroleum Corp.

Energy


Presented:04/27/2020
Price:$26.45
Cap:$17.19B
Current Price:$157.02
Cap:$52.55B

Presented

Date04/27/2020
Price$26.45
Market Cap$17.19B
Ent Value$78.54B
P/E Ratio6.63x
Book Value$51.92
Div Yield8.2%
Shares O/S650.00M
Ave Daily Vol11,215,664
Short Int3.16%

Current

Price$157.02
Market Cap$52.55B
Marathon Petroleum Corp. is an independent company, which engages in refining, marketing, and transportation of petroleum products in the United States. Itoperates through the following segments: Refining and Marketing; Retail; and Midstream. The Refining and Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast and Midwest regions of the United States; purchases ethanol and refined products for resale and distributes refined products through various means, including barges, terminals, and trucks that the company owns or operates. The Retail segment sells transportation fuels and convenience products in the retail market across the United States through company-owned and operated convenience stores, primarily under the Speedway brand, and long-term fuel supply contracts with direct dealers who operate locations mainly under the ARCO brand. The Midstream segment transports, stores, distributes and markets crude oil and refined products principally for the Refining and Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges. It also gathers, processes, and transports natural gas; and gathers, transports, fractionates, stores, and markets NGLs. The company was founded in 1887 and is headquartered in Findlay, OH.

Publicly traded companies mentioned herein: Alimentation Couche-Tard Inc (ATD/B CN), Marathon Petroleum Corp (MPC), MPLX LP (MPLX), Murphy USA Inc (MUSA), Seven & i Holdings Co Ltd (3382 JP)

Highlights

The presenter is long shares of Marathon Petroleum Corp (MPC), which he views as an attractive SOTP story with real catalysts over the remainder of 2020. MPC derives its value from three assets: its 63% stake in MPLX, its Retail segment, and its Refining & Marketing (R&M) business. As the company executes on its planned spinoff of the Retail asset, and the R&M segment benefits from an economic recovery, he sees 50% – 150% upside from the current share price. 

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Idea Discussion

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