Energy has been in short supply for most of the year due to supply-side constraints caused by the conflict between Russia and Ukraine and OPEC+’s decision to…
cut oil production by 2 million barrels/day.
Moreover, with the EU embargo on Russian crude oil expected to kick in from December onward, more supply threatens to be taken off the market as Russia’s oil production is projected to fall to as low as 9 million barrels per day (BPD).
The potential supply vacuum and consequent higher prices bode well for oil and gas companies, such as Marathon Petroleum Corporation (MPC). It is involved in midstream and downstream businesses, such as petroleum product refining, marketing, and retail in the United States. The company operates through two segments: Refining & Marketing and Midstream transport.
MPC’s stock is currently trading above its 50-day and 200-day moving averages of $107.39 and $93.74, respectively, indicating a bullish trend. The stock has gained 13.1% over the past month and 83.4% year-to-date to close the last trading session at $120.40.
Let’s closely examine the factors that make it worthy of investment.
Robust Financials
For the fiscal 2022 third quarter ended September 30, MPC’s total revenues and other income increased 44.8% year-over-year to $47.24 billion, while its adjusted EBITDA increased 182.9% year-over-year to $6.83 billion due to…
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