Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Marathon Petroleum Corp    MPC

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

HollyFrontier Net Up On Strong Refining Margins

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/28/2012 | 06:19pm CEST

(Updates with details, CEO comment and analyst comment)

-Post-merger HollyFrontier increases refining utilization

-Revenue more than doubles but earnings fall short of forecast

-CEO 'remains optimistic' despite new pipeline threatening WTI discount

By Ben Lefebvre

Of

HollyFrontier Corp.'s (>> HollyFrontier Corp) fourth-quarter earnings soared as the refiner took advantage of its post-merger size and strong refining margins but ultimately missed analyst expectations.

The company, which was formed through the July 2011 merger of Holly Corp. and Frontier Oil Corp., has benefited from its access to mid-continent crude oil, which is less expensive than other crudes. The combined company realized operating margins nearly quadruple those from the end of 2010 while it increased its operating rate to 91.8% during the fourth quarter of 2011 from 86.6% the year before.

"HollyFrontier is certainly laying the pedal to the metal with higher runs," said Raymond James analyst Cory Garcia.

In its second quarter as a combined company, HollyFrontier reported a profit of $223.4 million, or $1.06 a share, up from $14.7 million, or 13 cents a share, a year earlier. The latest period included merger integration costs of $8 million.

Revenue more than doubled to $4.97 billion thanks to the inclusion of legacy Frontier refineries and a 19% year-to-year growth in refined products sales prices. Analysts polled by Thomson Reuters most recently projected earnings of $1.20 on revenue of $4.29 billion.

However, analysts ahead of the report had expressed concerns that a narrowing of the discount may give refiners such as HollyFrontier less of an advantage. TransCanada Corp. (TRP) said Monday it would build a pipeline connecting the oil hub in Cushing to the Gulf Coast refining belt, a move that could raise WTI prices and shrink Western's refining margins. WTI traded at $108 Tuesday morning, $15 below Brent prices.

The mid-continent refining advantage should persist despite the new pipeline because their proximity to oil fields gives them a transportation cost advantage, HollyFrontier Chief Executive Mike Jennings said.

The region has "enduring advantages due to near-term logistical bottlenecks and long-term transportation costs," Jennings said during a call with investors. "We remain optimistic about refining margins in the mid-continent, Rockies and Southwest markets."

HollyFrontier's refinery gross margins soared to $15.32 a barrel from $7.87 a year earlier, and were especially strong at its Rocky Mountain operations.

Shares of HollyFrontier were $31.67, down 4.4%.

-By Ben Lefebvre, Dow Jones Newswires; 713-547-9201; [email protected]

 -Tess Stynes contributed 
 

Stocks mentioned in the article : HollyFrontier Corp
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MARATHON PETROLEUM CORP
10/10 MPLX LP : to announce 2017 third - quarter financial results Oct. 26
10/10 MARATHON PETROLEUM : to announce 2017 third-quarter financial results Oct. 26
10/05 MARATHON PETROLEUM : Corp. to announce 2017 third-quarter financial results Oct...
10/05 PBF, Shell prep Louisiana refineries to keep running in storm - sources
09/29 MARATHON PETROLEUM : donates $30K for MCTC maritime simulator
09/28 MARATHON PETROLEUM : Speedway to donate $250,000 for Florida storm recovery
09/18DJMARATHON PETROLEUM : Reports Operational Disruption at Galveston Bay Refinery
09/18DJStorms Lift Refiner Profits -- WSJ
09/17DJHurricanes Stir Up Profits for Refiners
09/10 MARATHON PETROLEUM : to keep Speedway stores
More news
News from SeekingAlpha
10/12 WHAT HAPPENED IN SEPTEMBER : Are The Good Old Days Returning?
10/05 15% of U.S. Gulf of Mexico oil output shut ahead of Tropical Storm Nate
10/05 Refiners slip as senators warn EPA on fuel mandates
10/03 3 Reasons To Bet On Energy
10/03 Phillips 66 jumps as Goldman upgrades to Buy
Financials ($)
Sales 2017 71 922 M
EBIT 2017 3 429 M
Net income 2017 1 509 M
Debt 2017 12 203 M
Yield 2017 2,74%
P/E ratio 2017 18,76
P/E ratio 2018 15,26
EV / Sales 2017 0,56x
EV / Sales 2018 0,59x
Capitalization 28 208 M
Chart MARATHON PETROLEUM CORP
Duration : Period :
Marathon Petroleum Corp Technical Analysis Chart | MPC | US56585A1025 | 4-Traders
Technical analysis trends MARATHON PETROLEUM CORP
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 64,4 $
Spread / Average Target 16%
EPS Revisions
Managers
NameTitle
Gary R. Heminger Chairman & Chief Executive Officer
Donald C. Templin President
Timothy T. Griffith Chief Financial Officer & Senior Vice President
Donald W. Wehrly Chief Information Officer & Vice President
David A. Daberko Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
MARATHON PETROLEUM CORP11.96%28 208
EXXON MOBIL CORPORATION-8.70%349 180
BP-3.69%128 904
CHINA PETROLEUM & CHEMICAL CORP7.39%103 337
RELIANCE INDUSTRIES LIMITED62.37%85 792
SAUDI BASIC INDUSTRIES CORPORATION SJSC--.--%79 200