Independent oil refiner and marketer
Marathon Petroleum Corp.
) reported receipt of authorization from its board of directors
to buy back additional $2 billion stocks. The company will carry
out the repurchase program through Sep 2015, but the timing is
likely to be subject to the conditions of the market and
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Marathon Petroleum reveals that the current permission is an
extension of the share repurchases approval given earlier by the
board of directors. Moreover, as of Jun 30, 2013, the company had
remaining $1.3 billion shares to be repurchased, following the
Marathon Petroleum is expected to employ negotiated block
transactions and open market operations along with accelerated
share buyback methods to carry forward the buyback program.
The share repurchases represents management's continuous aim to
return capital to the stockholders.
Findlay, Ohio-based Marathon Petroleum Corporation operates in
three segments: Refining and Marketing, Speedway (Retail) and
Pipeline Transportation. Marathon Petroleum is the fourth largest
domestic refiner. A major advantage for the company is its
proprietary access to pipelines, which inhibits lower-cost
competitors from supplying Marathon Petroleum's key markets.
On the flip side, the inherent volatility of the refining
business reduces the accuracy and reliability of long-term
earnings and revenue estimates of the company.
Marathon Petroleum currently retains a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can have a look at better-performing energy firms
Stone Energy Corp.
China Petroleum & Chemical Corp.
). All these stocks sport a Zacks Rank #1 (Strong Buy).