MPC Marathon Petroleum Corp. Common Stock

We are maintaining our Outperform recommendation on Marathon Petroleum (MPC). Spun out of parent Marathon Oil Co. in 2011, the company is a leading refiner and marketer of petroleum products in the U.S. Our bullish investment theme stems from Marathon Petroleum's scale advantage, impressive asset quality and an extensive midstream/retail network that diversifies its portfolio and provides more stable revenue streams.

We believe management's recently commenced $2 billion share repurchase program and potential formation of a midstream MLP could further boost shareholder value. Marathon Petroleum's low debt ratio and hefty cash balance add to the positive sentiment.

All in all, we believe the company is well positioned going forward and view it as an attractive investment. This is reflected in our continued Outperform recommendation and the $41 price objective, which is based on a multiple of 4.6X trailing twelve-month cash flow.
 
MARATHON PETROL (MPC): Free Stock Analysis Report
 
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