The year 2020 was a disruptive one for many businesses. While we all heard terrible stories about hotels, tourism, and aviation businesses, other industries were also affected. The demand for oil products took a hit in the short term as well. The trend was evident in Marathon Petroleum’s refining segment numbers. It reported a loss in Q22020. However, Marathon recently reported its Q22021 earnings results. And things are looking up again. Marathon also recognizes the broader shift that is happening globally with carbon-neutrality, sustainability, and climate agreements. Governments around the world are now pushing their economies towards renewable energy. Marathon has therefore begun to repurpose its refineries to process biofuels and renewable fuels. Such efforts will determine which energy stocks to buy right now as lesser nimble players will face a difficult time in the future.
Marathon Q22021 Earnings Release
On 4th August 2021, Marathon Petroleum reported its second-quarter 2021 earnings results. Total revenues rose significantly from $12.3 billion in Q22020 to $29.8 billion. The big driver of this jump was the refining segment. The company management also revealed that it had completed $1 billion of its planned $10 billion share buyback program. Net income rose from $276 million in Q22020 to $8.8 billion. Earnings per share on a diluted basis were also up significantly from $0.01 in Q22020 to $13. Company CEO Mike Hennigan informed that gasoline demand was about 2% to 5% below 2019 levels. However, he said that the demand scenario was gradually improving. Meanwhile, Marathon’s Dickinson facility became the second-largest renewable diesel facility in the US. Marathon is positioning itself to be among the best energy stocks now that you can invest in.
Energy Stocks To Buy Right Now
Marathon got a much-needed cash cushion via the sale of its Speedway business. The company is also progressing towards transforming its refineries for renewable fuel processing. Marathon Petroleum’s stock has been up 83% over the past year.