Marathon Petroleum declared a global R&M margin of $10.16 per bbl based on throughput per region. Marathon Petroleum pays a dividend yield of 3.89%. Thus, it is time to accumulate and wait for a recovery. With the vaccination process well underway, we can hope for better days ahead, with the economy returning to normal, probably in 2022. However, the sector is still struggling, and demand is still weak. Still, I consider Phillips 66 (NYSE: PSX) and Marathon Petroleum an excellent alternative, especially after completing the Speedway sale. I personally own a significant position in Valero Energy (NYSE: VLO). I believe it is essential to hold at least one of those three large US refiners in your long-term portfolio. The investment thesis has not changed since the preceding quarter. Marathon Petroleum has outperformed the group and is up 68% on a one-year basis. I recommend following the VanEck Vectors Oil Refiners ETF ( CRAK) for investors interested in the refining sector. Mannen said:Īfter the completion of the tender offer, we intend to execute on the remainder of our $10 billion repurchase authorization over the subsequent 12 to 18 monthsĪs part of the long-term debt reduction, on May 19, 2021, Marathon Petroleum announced the redemption of all of the $300 million outstanding aggregate principal amount of its 5.125% senior notes due April 1, 2024, including the portion of such notes for which Andeavor LLC, a wholly-owned subsidiary of MPC, is the obligor. Furthermore, Marathon Petroleum intends to buy back $10 billion in common stock, starting with a cash tender offer to buy as much as $4 billion of shares. The company plans to use $2.5 billion of the sales proceeds to reduce its long-term debt. It was a great deal coming at the perfect time and will strengthen the balance sheet significantly. The after-tax cash proceeds are anticipated to be $16.5 billion. However, the first-quarter adjusted loss was bigger than the same quarter a year ago.īelow is the chart comparison of the quarterly income, year over year.ĭuring the first quarter, Marathon Petroleum received approval from the Board of Directors to convert its Martinez petroleum refinery into a renewable diesel facility in response to the collapsing product demand.įinally, On May 14, 2021, Marathon Petroleum completed the sale of its Speedway business for $21 billion. The company benefitted from cost savings and solid performance from its Midstream segment. Marathon Petroleum reported a better-than-expected adjusted loss of $0.20 per share for the first quarter. The independent US refiner and marketer, Ohio-based Marathon Petroleum ( NYSE: MPC), released its first-quarter 2021 results on May 4, 2021. Photo by Joshua Hicks/iStock via Getty Images Investment Thesis
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