Marathon Petroleum Corp

Notes

• MPC owns large oil refinery business, midstream pipeline business (via ownership of $MPLX), and recently sold the Speedway gas station chain for $17.2bn after-tax proceeds

‣

Using proceeds from Speedway sale for large buyback program ($10bn)

‣

Balance sheet is still flush after spending significantly on buybacks — $10.8bn cash, $7bn debt as of 12/31/21

• Midstream EBITDA has grown from $4.8bn in 2019, $5.1bn in 2020, to $5.4bn in 2021

Financials & Valuation

• There are 571m shares outstanding x $77 per share = $44bn market cap. Net cash is $3bn as of 4Q21 for a $41bn EV.
• 2021 EBITDA was $8.3bn vs. $2.5bn in 2020 (refining segment went negative) vs. $9.6bn in 2019...
• At 6x 2022 EBITDA of $9bn = $54bn EV + $3bn net cash = $57bn equity value or $100 per share at 571m shares outstanding

Resources