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Marathon Petroleum Corporation

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Following Marathon Petroleum’s decision not to spin off its Speedway convenience store business, we are taking a bullish stance on the company. We believe that the retail assets will help the leading refiner and marketer of petroleum products in the U.S. generate long-term returns for shareholders due to healthy merchandise margins. As it is, we are a fan of MPC’s scale advantage, impressive asset quality, and an extensive midstream/retail network that diversifies its portfolio and provides more stable revenue streams. MPC's financial flexibility and a strong balance sheet are real assets in this highly unstable economy. Importantly, Marathon Petroleum is known for raising dividends since it became a standalone public company in mid-2011. Additionally, it has an active share repurchase program Consequently, we think MPC offers upside potential from current levels and label it as an attractive investment.


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