MPLX - Marathon Petroleum: Still Has Gas In The Tank After 100% Returns
2024-04-08 06:12:08 ET
Summary
- Marathon Petroleum has gone up over 100% since my last coverage of the company.
- In my two year look ahead, MPC has ample margin to continue its large buyback program and increase the dividend even in the face of potentially declining crack spreads.
- MPC's refining business remains undervalued and can produce annual returns of 15% or more.
Thesis
In my original coverage of Marathon Petroleum ( MPC ), I highlighted the company's diverse revenue streams, strong cash balances, and undervaluation given the sum of its individual parts. Following my original buy recommendation, the company is up over 100%. Now, after more than doubling in share price, the obvious reaction is to wonder if it's time to cash out, or to see if more can be squeezed out of MPC?...
Marathon Petroleum: Still Has Gas In The Tank After 100% Returns