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

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

Delayed Quote. Delayed  - 07/27 10:02:40 pm
37.83 USD   -2.02%
07/27 MARATHON PETROL : Corp. increases dividend 12.5 percent
07/25 MARATHON PETROL : Speedway Relies on NCR to Make EMV Payment, Loyalt..
07/25DJSummer Offers Refiners No Relief -- WSJ
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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; ben.lefebvre@dowjones.com

 -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
07/27 MARATHON PETROLEUM : Corp. increases dividend 12.5 percent
07/26 MARATHON PETROLEUM CORP : Entry into a Material Definitive Agreement, Terminatio..
07/25 MARATHON PETROLEUM : Speedway Relies on NCR to Make EMV Payment, Loyalty and Sho..
07/25DJSummer Offers Refiners No Relief -- WSJ
07/20 INVESTORSOBSERVER : releases covered-call reports for Chipotle Mexican Grill, F5..
07/17 OWENS CORNING : A great start to a week of golf
07/10 MARATHON PETROLEUM : Urban Meyer highlights Celebrity Pro-Am field
07/10 MARATHON PETROLEUM : 2016 LPGA Marathon Classic presented by Owens Corning and O..
07/07 Cruel summer for U.S. refiners as margins tank
07/06 WEDNESDAY SECTOR LAGGARDS : Oil & Gas Refining & Marketing, Water Utilities
More news
Sector news : Oil & Gas Refining and Marketing - NEC
12:28pDJROYAL DUTCH SHELL A : Shell Defers Decision on Louisiana LNG Investment
11:32a TECK RESOURCES : Canada's Teck profit plummets on lower prices, volumes
10:34aDJHungary MOL Croatian Unit INA Starts Production at New Gas Fields
10:16aDJStocks Little Changed as Investors Mull Fed Statement
09:56aDJROYAL DUTCH SHELL A : Shell Profit Hit Hard by Low Oil Prices -- 2nd Update
More sector news : Oil & Gas Refining and Marketing - NEC
News from SeekingAlpha
07/27 Marathon Petroleum declares $0.36 dividend
07/27 Notable earnings before Thursday?s open
07/25 REUTERS : U.S. refiners switch to winter blend a month earlier than usual
07/18 MLPS : Say Anything
07/17 DIVIDEND CHALLENGERS (AND NEAR-CHALL : 58 Increases Expected By September 30
Advertisement
Financials ($)
Sales 2016 63 396 M
EBIT 2016 2 924 M
Net income 2016 1 569 M
Debt 2016 10 063 M
Yield 2016 3,49%
P/E ratio 2016 11,98
P/E ratio 2017 9,74
EV / Sales 2016 0,47x
EV / Sales 2017 0,40x
Capitalization 20 044 M
More Financials
Chart MARATHON PETROLEUM CORP
Duration : Period :
Marathon Petroleum Corp Technical Analysis Chart | MPC | US56585A1025 | 4-Traders
Full-screen chart
Technical analysis trends MARATHON PETROLEU...
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 46,9 $
Spread / Average Target 24%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Gary R. Heminger Chairman, President & Chief Executive Officer
Timothy T. Griffith Chief Financial Officer & Senior Vice President
Donald W. Wehrly Chief Information Officer & Vice President
David A. Daberko Lead Independent Class I Director
John William Snow Independent Class III Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MARATHON PETROLEUM COR..-27.03%20 044
EXXON MOBIL CORPORATIO..16.63%376 968
ROYAL DUTCH SHELL A16.88%219 883
BP PLC22.61%107 022
CHINA PETROLEUM & CHEM..-2.22%88 580
SAUDI BASIC INDUSTRIES..--.--%68 194
More Results