Oil and natural gas exploration and production (E&P) company, Marathon Petroleum Corporation (MPC - Free Report) on Jan 4, 2017, reported updates on company`s previously announced initiatives in order to enhance shareholder value.
Marathon said it would speed up drop-down of assets with about $1.4 billion of annual earnings before interest, taxes, depreciation and amortization to MPLX LP (MPLX - Free Report) . The latter is a master limited partnership formed by Marathon Petroleum to purchase, develop and operate midstream assets. The transaction is expected to take place in 2017.
Additionally, the company announced that a special committee will conduct a review of Speedway-Marathon’s brand of company-owned and operated convenience stores and gas stations. An update on the review is expected by mid-2017.
These steps come post Elliott Management’s proposal in Nov 2016 to part ways with Marathon. Elliott Management, a hedge fund which owns 4% of Marathon Petroleum's shares, suggested so because it wanted the oil company to progress with plans to transfer some operations to MPLX. They also wanted Marathon to consider spinning off or selling the Speedway business. Post these strategic updates by Marathon Petroleum, Elliot Management is happy with the former’s decisions.
Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.
Over the past two years, the Zacks categorized Oil and Gas Refining and Marketing industry has registered an impressive growth of 13.8%. However, the Marathon Petroleum stock has underperformed the industry by registering growth of only 13%.
The company carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) and CONE Midstream Partners LP . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
In the last four quarters, CONE Midstream Partners posted an average positive earnings surprise of 14.68%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Oil and natural gas exploration and production (E&P) company, Marathon Petroleum Corporation (MPC - Free Report) on Jan 4, 2017, reported updates on company`s previously announced initiatives in order to enhance shareholder value.
Marathon said it would speed up drop-down of assets with about $1.4 billion of annual earnings before interest, taxes, depreciation and amortization to MPLX LP (MPLX - Free Report) . The latter is a master limited partnership formed by Marathon Petroleum to purchase, develop and operate midstream assets. The transaction is expected to take place in 2017.
Additionally, the company announced that a special committee will conduct a review of Speedway-Marathon’s brand of company-owned and operated convenience stores and gas stations. An update on the review is expected by mid-2017.
These steps come post Elliott Management’s proposal in Nov 2016 to part ways with Marathon. Elliott Management, a hedge fund which owns 4% of Marathon Petroleum's shares, suggested so because it wanted the oil company to progress with plans to transfer some operations to MPLX. They also wanted Marathon to consider spinning off or selling the Speedway business. Post these strategic updates by Marathon Petroleum, Elliot Management is happy with the former’s decisions.
Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.
Over the past two years, the Zacks categorized Oil and Gas Refining and Marketing industry has registered an impressive growth of 13.8%. However, the Marathon Petroleum stock has underperformed the industry by registering growth of only 13%.
The company carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) and CONE Midstream Partners LP . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
In the last four quarters, CONE Midstream Partners posted an average positive earnings surprise of 14.68%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BAK - FREE
Get the latest research report on MPC - FREE
Get the latest research report on MPLX - FREE