|Bid||0.00 x 1400|
|Ask||0.00 x 3100|
|Day's Range||79.57 - 82.55|
|52 Week Range||54.13 - 85.34|
|PE Ratio (TTM)||9.94|
|Forward Dividend & Yield||1.84 (2.18%)|
|1y Target Est||N/A|
According to the U.S. Energy Information Administration, the U.S. has been pumping about 10 million barrels of crude oil every day. By the end of 2019, the U.S. is expected to pump 11.8 million barrels a day. Domestic oil production is soaring so quickly, pipelines in the U.S. and Canada can’t transport it fast enough.
Delek US Holdings (DK) is currently trading at a forward PE ratio of 6.2x, below the peer average of 11.4x. Peer HollyFrontier (HFC) is trading below the peer average with a forward PE of 10.4x. However, peers Marathon Petroleum (MPC) and PBF Energy (PBF) are trading above the peer average with forward PEs of 12.7x and 12.1x, respectively.
MPLX LP has taken steps to expand its business in a new direction, which could give it the fuel to continue growing its 7.2%-yielding payout each quarter for at least the next few years.
North Dakota's daily crude production in July broke the previous all-time high set in May, while natural gas output and producing wells also hit records.
In this series, we reviewed the refining margin indicators for US refiners. Most of the refining margins implied weakness in the current quarter.
Short interest is low for MPC with fewer than 5% of shares on loan. The net inflows of $4.56 billion over the last one-month into ETFs that hold MPC are not among the highest of the last year and have been slowing.
HollyFrontier’s (HFC) refining index values, which are regional crack indicators in the areas where the company operates, point towards its current margin trend. HollyFrontier publishes the index values for three regions—Midcon (Midcontinent), Rockies, and Southwest.
We started this series by analyzing the US Gulf Coast WTI 3-2-1 crack in the current quarter. We reviewed Marathon Petroleum’s (MPC) refining earnings indicators in the previous part. Now, we’ll analyze Andeavor’s (ANDV) refining index to determine the company refining margin in the third quarter.
Marathon Petroleum’s refining margin and earnings are impacted by the blended LLS 6-3-2-1 crack, the LLS-WTI spread, and the sweet-sour differential. According to Marathon Petroleum, a dollar per barrel rise in the blended LLS 6-3-2-1 crack expands its annual net income by $590 million. Besides, a dollar per barrel shift in the sweet-sour and LLS-WTI spreads alter its yearly income by $300 million and $90 million, respectively.
Refining margins mainly impact refining earnings. Leading US refiners publish refining margin indicators periodically, which show how these margins could be trending. Analyzing these indicators could give us an indication of the company’s refining margin and earnings in its upcoming results.
In the previous article, we looked at institutional holdings in Andeavor (ANDV). In this part, we’ll examine the changes in short interest in the stock.
In the previous part, we discussed Andeavor’s (ANDV) dividend yield, which fell due to a steep rise in its stock price. Now, let’s review the institutions that bought or sold Andeavor stock in the second quarter based on the latest filings.
Earlier in this series, we examined the rise in Andeavor’s (ANDV) valuations. Then we looked at ANDV stock and the performance of its moving averages. Andeavor’s dividend payments have risen steadily in the past few years.
In the previous part, we discussed Andeavor’s (ANDV) moving averages, which implied that ANDV stock isn’t close to being in the bearish zone. Now, we’ll consider its implied volatility to forecast its stock price range until October 1, the expected closing date for the acquisition process by Marathon Petroleum (MPC).
Since its third quarter started on July 2, Andeavor (ANDV) stock has risen 16.0%, outperforming the SPDR S&P 500 ETF (SPY). SPY, the broader market indicator, has risen 6.0% in the same period.
Andeavor (ANDV) trades at a forward PE (price-to-earnings) multiple of 13.0x, above the peer average of 11.4x. However, ANDV’s peers Delek US Holdings (DK) and HollyFrontier (HFC) trade below the peer average with forward PE ratios of 6.6x and 10.4x, respectively.
Andeavor (ANDV) is last on our list in terms of dividend yield among the seven downstream stocks we’re reviewing in this series. The company has the fourth largest market cap of around $24 billion. Andeavor has a current dividend yield of 1.5%. In Q3 2018, ANDV made a dividend payment of $0.59 per share, which was announced on August 6, 2018, and will be paid on September 14, 2018. ANDV has paid dividends regularly in the past three years. Also, in the period, despite refining margin volatility, dividends have risen. ANDV made a dividend payment of $0.50 per share on September 14, 2015.
In the previous part of this series, we discussed PBF Energy (PBF), the refining stock with the third-highest dividend yield. Now we’ll review Marathon Petroleum’s (MPC) dividend yield. Marathon Petroleum (MPC) stands in the fourth position among our dividend-yielding refining stocks. MPC’s market cap of around $38 billion makes it the third-largest stock.
Refining and Marketing excellence along with High transportation capacity positions Marathon Petroleum (MPC) as a compelling stock at the moment.
In this series, we have discussed Marathon Petroleum’s (MPC) stock price trend in the third quarter, its moving averages, and its forecast until the end of the next quarter. We also discussed Marathon Petroleum’s dividend yield trend and institutional holdings. Now, we’ll discuss Marathon Petroleum’s short interest trend.
These stocks fared better than crude in August and still offers a higher growth potential to the investors compared to other stocks in the same category.
In the previous part, we discussed Marathon Petroleum’s (MPC) dividend yield trend, which has fallen to 2.2%. Now, we’ll discuss which institutions bought or sold Marathon Petroleum in the second quarter based on the latest filings.
Short interest is low for MPC with fewer than 5% of shares on loan. Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on August 17. Over the last month, ETFs holding MPC are favorable, with net inflows of $11.13 billion.