- 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.
For further details see:
Marathon Petroleum: Polar Vortex A Gift Prior To Closing The Speedway Deal