Report
Allen Good, CFA
EUR 101.80 For Business Accounts Only

Andeavor Delivers Solid Quarter With Improvement Initiatives on Track; Shares Undervalued

The drop in Andeavor’s headline second-quarter earnings to $40 million from $418 million masks the improvement in the underlying business, given the large swing in inventory adjustment charges ($209 million expense compared with $363 million benefit last year) and inclusion of integration costs of $124 million. Excluding the inventory adjustments, refining operating income increased to $254 million from $164 million last year on improved market conditions, ongoing operational improvements, and o...
Underlying
Andeavor

Andeavor is an independent petroleum refining and marketing company. The company has three segments: Marketing, which sells gasoline and diesel fuel in the western and mid-continent U.S. through Retail, Branded, and Unbranded channels along with convenience store products; Refining, which buys and refines crude oil and other feedstocks into transportation fuels; and Logistics, which transports, stores and distributes crude oil, feedstocks and refined products through its terminals and pipelines or terminals and pipelines owned by Andeavor Logistics LP and third-parties in its market areas as well as through purchases and exchange arrangements with other refining and marketing companies.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Allen Good, CFA

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