MPC - Marathon Petroleum: Time To Take Profits At These Record Share Prices

• Marathon Petroleum has seen their share price rally strongly throughout 2021 and earlier 2022 to now reach record levels.
• Whilst positive in the short term, this poses problems in the long term because they are conducting their massive share buybacks to offset their Speedway divestiture.
• The higher their share price goes, the less effective these share buybacks become, and as a result, the lower their future dividend growth, earnings per share and so forth.
• The combination of a cyclical industry with very strong operating conditions as well as a record share price does not normally make for a desirable investment, especially when conducting share buybacks.
• Since their record high share price hinders the long-term dividend growth potential, which was central to my previous buy rating, I now believe that a sell rating is appropriate.

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