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?...
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Marathon Petroleum: Still Has Gas In The Tank After 100% Returns