Dallas, Texas 01/03/2014 (FINANCIALSTRENDS) – Marathon Petroleum Corp.(NYSE: MPC), one of the better known oil, gas exploration, refining and marketing companies in the U.S. has since established itself as an attractive stock for investors. The stock has been trading at $57 and has since soared to $89 in less than 3 months.
The high valuation is due to the high growth in the refineries.
Marathon Petroleum Corp.(NYSE: MPC) is also expected to grow exponentially, thanks to the various advantages it holds over others. The refinery currently holds the capacity to refine over 11.7 million barrels on per day basis.
Marathon has been able to record high refining and marketing segment growth of nearly 86%. The revenue in this segment was recorded at 24% increase on year to year basis. This was due to the high revenue generated by the sale of fuels in the transportation division as well as convenience products in the western parts of the country.
Marathon Petroleum Corp.(NYSE: MPC) also saw a less comparative growth in its Pipeline Transportation segment, with 1% of revenue growth. This was due to limited crude oil transport to refineries. Even the refined products it sells on wholesale as well as retail markets were known to decline.
Marathon Petroleum Corp.(NYSE: MPC) stands to have higher advantages over other stocks largely because of the rich haul of heavy as well as sour crude oil. These are priced lowered than the lighter yet sweet crudes. Therefore, Marathon is able to maximize its margins accordingly. Additionally, its vast network of refineries is located strategically. The Canadian, middle parts of West US as well as the Gulf Coast indicate lower margins and higher efficiency, building in profits. The costs of its supplies are manageable because of its multiple resources. Therefore, Marathon Petroleum continues to ride longer, given the rich quality and connectivity of its refineries!
