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  - 09/23 10:01:12 pm
42.28 USD   -0.96%
09/07 HIGHTOWER : Marathon flood response hits home
09/06DJEnbridge to Buy Spectra Energy in $28 Billion Deal
09/02 MARATHON PETROL : MPLX opens headquarters
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
09/07 HIGHTOWER : Marathon flood response hits home
09/06 MARATHON PETROLEUM CORP : Regulation FD Disclosure, Financial Statements and Exh..
09/06DJEnbridge to Buy Spectra Energy in $28 Billion Deal
09/02 MARATHON PETROLEUM : MPLX opens headquarters
09/02DJEnbridge Energy Partners Shelves Sandpiper Pipeline Project
08/30 MARATHON PETROLEUM : to present at Barclays' 2016 CEO Energy-Power Conference
08/26 MARATHON PETROLEUM CORPORATION : and MPLX LP announce MPLX senior management cha..
08/25 MARATHON PETROLEUM : vows aid for Louisiana flood cleanup
08/24 MARATHON PETROLEUM : Corporation and MPLX LP announce MPLX senior management cha..
08/23 MARATHON PETROLEUM CORPORATION : donates to Louisiana flood disaster relief effo..
More news
Sector news : Oil & Gas Refining and Marketing - NEC
09/23 Federal Reserve proposes new limits on Wall Street energy bets
09/22 Vodafone injects 477 billion rupees into Indian arm as competition intensifie..
09/22 BP : Azeri BP says Shah Deniz 2 on track to start gas supply from in 2018
09/22DJCHINA PETROLEUM & CHEMICAL : Sinopec Group Selling USD-Denominated Bonds via 3 T..
09/21DJOil Sector, Investors React to SEC Probe of Exxon -- Update
More sector news : Oil & Gas Refining and Marketing - NEC
News from SeekingAlpha
02:40a Marathon Petroleum - Huge Cash Flow Potential
09/23 ENBRIDGE ENERGY PARTNERS : Snake-Bit Or Due For A Bounce?
09/17 Will Dakota Access Pipeline End Up 'Keystoned'?
09/16 THE DAKOTA ACCESS PIPELINE : Desperately Needed Or Devastatingly Destructive?
09/16 Donald Trump's Love/Hate Relationship With The Renewable Fuel Standard
Advertisement
Financials ($)
Sales 2016 61 217 M
EBIT 2016 2 736 M
Net income 2016 1 571 M
Debt 2016 9 440 M
Yield 2016 3,23%
P/E ratio 2016 14,37
P/E ratio 2017 11,31
EV / Sales 2016 0,52x
EV / Sales 2017 0,44x
Capitalization 22 356 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
TrendsNeutralBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 49,1 $
Spread / Average Target 16%
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 Director
John William Snow Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MARATHON PETROLEUM COR..-18.44%22 356
EXXON MOBIL CORPORATIO..7.06%346 038
ROYAL DUTCH SHELL A2.13%201 191
BP PLC23.42%108 037
CHINA PETROLEUM & CHEM..-2.22%87 542
SAUDI BASIC INDUSTRIES..--.--%67 012
More Results