MPC - Embedded Expectations Analysis - 2020 02 04
ï€ Marathon Petroleum Corporation (MPC:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 13.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their opportunities to unlock value, oil production, and their run rate synergiesï€ Specifically, management is confident they are continuing to evaluate opportunities to unlock value in the midstream business and that they are looking at various segments to determine their values through Project Uplift. Moreover, they are confident they are bullish on the numbers and forecasts out of their Gulf of Mexico production, they are growing Speedway merchandise sales volume, and that they will exceed targeted run rate synergies for 2019. Finally, management is confident their St. Paul Park refinery was able to maintain maximum crude rates by exporting gas oil and that they are targeting an allocation of 75% of their capital to their Logistics & Storage business
Marathon Petroleum is an independent petroleum refining and marketing, retail and midstream company. The company's segments include: Refining and Marketing, which refines crude oil and other feedstocks at its refineries, purchases refined products and ethanol for resale and distributes refined products; Retail, which sells transportation fuels and convenience products in the retail market across the U.S.; and Midstream, which transports, stores, distributes and markets crude oil and refined products via refining logistics assets, pipelines, terminals, towboats and barges, gathers, processes and transports natural gas, and gathers, transports, fractionates, stores and markets natural gas liquids.
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