MPC Board OK's Further Share Repurchase - Analyst Blog
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
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 previous authorization.
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 like Stone Energy Corp. ( SGY ), China Petroleum & Chemical Corp. ( SNP ) and Dril-Quip Inc. ( DRQ ). All these stocks sport a Zacks Rank #1 (Strong Buy).
DRIL-QUIP INC (DRQ): Free Stock Analysis Report
MARATHON PETROL (MPC): Free Stock Analysis Report
STONE ENERGY CP (SGY): Free Stock Analysis Report
CHINA PETRO&CHM (SNP): Free Stock Analysis Report
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