MPC
Marathon Petroleum Corporation
Energy
04/17/2015
Presented
| Date | 04/13/2015 |
| Price | $48.61 |
| Market Cap | $26.50B |
| Ent Value | $32.32B |
| P/E Ratio | 11.1x |
| Book Value | $19.62 |
| Div Yield | 2.06% |
| Shares O/S | 545.97M |
| Ave Daily Vol | 6,540,000 |
| Short Int | 1.94% |
Current
| Price | $157.02 |
| Market Cap | $52.55B |
| Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates through three segments: Refining & Marketing, Speedway, and Pipeline Transportation. The company refines crude oil and other feed stocks at its seven refineries in the Gulf Coast and Midwest regions of the United States; and purchases ethanol and refined products for resale. Its refined products include gasoline, distillates, propane, feed stocks and special products, heavy fuel oil, and asphalt. The company also sells transportation fuels and convenience products in the retail market through Speedway convenience stores; and transports crude oil and other feed stocks to its refineries and other locations. Marathon Petroleum Corporation markets its refined products to resellers, consumers, independent retailers, wholesale customers, marathon-branded independent entrepreneurs, its Speedway convenience stores, airlines, transportation companies, and utility companies, as well as exports its refined products. As of December 31, 2014, it owned, leased, and had ownership interests in approximately 8,300 miles of pipeline, as well as owned and operated 2,750 gasoline and convenience stores in 22 states of the United States; and had 5,460 retail outlets operated by independent entrepreneurs in 19 states in the United States. The company is headquartered in Findlay, Ohio. |
Please note, this stock split on 6/11/2015 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $97.21.
Publicly traded companies mentioned herein: Marathon Petroleum Corporation (MPC), MPLX LP (MPLX)
Highlights
Generally speaking, refining stocks don’t perform well in the spring due to seasonality. However, the presenter is willing to take a contrarian position this year, and said he likes the risk/reward setup on Marathon (MPC). He views shares of the largest Midwest refiner (fourth largest in the US) as mispriced at ~$97 (an 11% FCF yield) and is long the stock.
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