118.75 0.00 (0.00%)
After hours: 4:31PM EDT
|Bid||107.20 x 800|
|Ask||119.72 x 1000|
|Day's Range||117.77 - 121.71|
|52 Week Range||75.85 - 122.38|
|PE Ratio (TTM)||12.06|
|Earnings Date||Jul 30, 2018 - Aug 3, 2018|
|Forward Dividend & Yield||2.80 (2.49%)|
|1y Target Est||113.75|
On May 21, Brent crude oil July futures settled $6.87 higher than WTI (West Texas Intermediate) crude oil July futures. On May 14, the Brent-WTI spread was at $7.24. In the last two trading sessions alone, the Brent-WTI spread contracted by $0.86.
Valero Energy (VLO) is steadily progressing on its growth path to create an integrated downstream value chain. VLO intends to focus on expanding its Refining and Logistics segments. The company targets to achieve around $1.2 billion–$1.4 billion of incremental annual EBITDA from its capex activities. Valero’s adjusted EBITDA stood at $5.0 billion in 2017. The company began 2018 with $793.0 million of adjusted EBITDA in the first quarter.
On Thursday, Brent crude oil topped $80 a barrel for the first time since November 2014 as the market grows concerned regarding the Trump administration's efforts to sanction Iran's crude exports. West Texas Intermediate (WTI) crude hit a 3.5-year-high at $72.30 on Thursday, up over 15% in three months. Oil prices have been steadily on the rise over the past few years due to myriad of factors including an economic collapse in Venezuela and supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. A recent story from CNBC looked at data from the hedge fund analytics tool Kensho to pinpoint some of the market's best performers in periods when oil prices have increased significantly. In the time from May 2008 to now, there have been 16 times when oil prices have gained more than 10% over the course of three months.
The refining yield shows the quantity and quality of various refined products produced. In the first quarter, Andeavor’s (ANDV) gasoline production stood at 54.0% of its total refined products produced. This is higher than its peers Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO).
In this part, we’ll compare the gross refining margins (or GRM) of leading American downstream companies. Andeavor (ANDV) scored the highest gross refining margin in the first quarter, followed by Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO). These refining companies saw a mixed trend in their GRM readings in the first quarter year-over-year. Let’s look at these individual refiners’ margin performance metrics.
Refiners’ cash flows are primarily dependent on refining earnings, which are affected by volatile refining margins. So, to gauge the health of cash flows in the quarter, we have assessed how short or excess refiners’ CFO (cash flow from operations) are in covering their vital capex and indispensable dividend outflows. Capex includes acquisition and turnarounds costs.
U.S. equities are drifting lower on Thursday as investors worry about the impact from the accelerating uptrend in U.S. Treasury bond yields. The first-quarter earnings season wrapped up as well, with Wal-Mart (NYSE:WMT) reporting better-than-expected results.
Previously in this series, we performed a cross-sectional analysis of the first-quarter earnings of refining firms Marathon Petroleum (MPC), Andeavor (ANDV), Valero Energy (VLO), and Phillips 66 (PSX). We also looked at the changes in their analyst ratings.
In this part, we’ll consider the changes in analyst ratings for downstream firms Marathon Petroleum (MPC), Valero Energy (VLO), Andeavor (ANDV), and Phillips 66 (PSX) after their first-quarter earnings.
We saw in the previous part that refining stocks Andeavor (ANDV), Valero Energy (VLO), and Phillips 66 (PSX) surpassed their earnings estimates. However, Marathon Petroleum (MPC) missed its earnings estimate. In this article, we’ll look at additional details of their performances.
LONDON, UK / ACCESSWIRE / May 17, 2018 / Active-Investors has a free review on Phillips 66 (NYSE: PSX) following the Company's announcement that it will begin trading ex-dividend on May 18, 2018. Active-Investors has initiated due-diligence on this dividend stock. If your portfolio includes dividend stocks, you have come to the right place for timely information.
Refining stocks Marathon Petroleum (MPC), Andeavor (ANDV), Valero Energy (VLO), and Phillips 66 (PSX) recently posted their first-quarter earnings. In this article, we’ll review each of them.
Berkshire owns a collection of operating companies and plenty of financial assets ranging from bonds to synthetic securities and, of course, lots of cash. Form 13F is for any investment management company with more than $100 million in discretionary investments.
Sponsored master limited partnerships (MLPs) appear on track to maintain rating appropriate leverage ratios through mid-2019, even as they continue to raise debt to fund growth projects and finance drop-down acquisitions of assets from their sponsors, Moody's Investors Service says in a new report. According to Moody's, borrowing at the MLP level weakens the sponsor's consolidated leverage, particularly for sponsors with large and higher levered MLPs. Among Moody's-rated MLP sponsors, elevated consolidated leverage is constraining the credit quality of Marathon Petroleum--which in April 2018 announced plans to acquire Andeavor--as well as Anadarko Petroleum Corporation, and has contributed to the rating agency's negative outlooks on the ratings of Phillips 66 and HollyFrontier Corporation.
In this part, we’ll consider changes in analyst ratings for Marathon Petroleum (MPC) and Andeavor (ANDV) after the announcement of their strategic merger. Both MPC and ANDV are covered by 17 analysts each. 88% and 59% of analysts rated MPC and ANDV as a “buy,” respectively.
Marathon Petroleum (MPC) announced the acquisition of Andeavor (ANDV) on April 30. On that day, Marathon Petroleum stock closed at $74.9, around 8% lower than the previous day’s close. In contrast, ANDV rose 13% up on the merger announcement day. On the same day, MPC also announced its 1Q18 earnings. Overall, since the merger news, MPC has fallen 5.0%, but Andeavor stock has risen 15%.
Jefferies offers up two short ideas in a report out this week, Phillips 66 and Sunoco LP, which they picked for wildly different reasons. Corey Goldman, who follows refiners for the firm, thinks that Phillips 66's stock has simply become too frothy. "Despite lackluster midstream returns, depressed ethylene margins and the recent [Warren] Buffett stock sale of $3.3 billion, PSX [Phillips 66] continues to imply robust valuation figures," he said.
On May 14, Brent crude oil July futures settled $7.27 higher than WTI (West Texas Intermediate) crude oil June futures, the widest Brent-WTI spread since May 4, 2015. On May 7, the Brent-WTI spread was at $5.44. The jump in the Brent-WTI spread came after the United States exited the Iran nuclear deal. The re-imposition of sanctions on Iran could remove the oil supply from the international market, even as US production booms. We discussed US oil production in Part 2.
The Dow Jones Industrial Average gained each day last week, propelled by gains in energy and technology stocks. A handful of businesses added to the positive sentiment with news of dividend increases.
In the previous part of this series, we examined the synergies that could come from the merger of Marathon Petroleum (MPC) and Andeavor (ANDV). In this part, we’ll look at how the refining segment of pro forma MPC (the merged entity) could shape up.