Mro does a good businee selling distillate in the midwest. That is the hot product this quarter. I think MRO refining will way outdo its competition this next earnings report season. There is investment in ULSD plants was high and is about to pay off big time. Buying expensive foreign crude is not a problem if the refinery yield of ULSd and jet are high enough.
HES production guidance for this year is 385Kbpd with 235kbpd of refining capacity. their upstream "growth" is practically nothing, 10kbpd per year (2.5%). the stock's strength is of course coming from their offshore brazil leases, but they wont even begin to look into those until the end of 2009 i hear, and first production is who knows how far out? a few years at least. all that for an enterprise value of 36.65B
MRO's production guidance for this year is 430Kbpd with 975kbpd of refining capacity. upstream growth is 6-9% per year. additional refining growth of 19% in 2009, 50% distillataes. enterprise value 43.65B
And while HESS may have brazil, MRO has angola, which according to citigroup, along with the gulf of mexico, almost double MRO's reserves