VLO - Marathon Petroleum: Polar Vortex A Gift Prior To Closing The Speedway Deal

• It feels odd to write about an old-school oil refiner in an era of Tesla, Bitcoin, ESG, and renewable energy.
• But the fact is, the vast majority of the US car-and-truck fleet still runs on gasoline and diesel, and refiners are critical in supplying fuel.
• For Marathon, the biggest catalyst is clearly the upcoming closing of the deal to sell its Speedway retail operations for ~$16.5 billion in after-tax proceeds.
• That means shareholders can expect significant debt reduction and share buybacks. Meanwhile, crack margins are improving and a polar vortex is a gift from the Gods.
• Some may question the "value" of investing in an oil refiner, yet some investors may find the income (4.9% yield) - and satisfaction of owning something the vast majority of Americans require every day - quite appealing.

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