Marathon Petroleum is one of the largest refiners and downstream players in the petroleum industry. Recently, the company was in the news for selling its Speedway Stores business. The sale resulted in a jump in the company’s financials. Marathon also announced that it would be initiating a $10 billion share buyback program. $1 billion in buybacks has already been completed. The refining industry, along with the oil industry, is at a critical juncture. There is plenty of movement towards clean energy and sustainability. Governments around the world are focusing their efforts on formulating policies that support the transition from fossil fuels to renewable energy. Thus, large established businesses like Marathon Petroleum have to be nimble-footed to come out successfully from this major transition. Marathon is turning to renewable fuels and vegetable oil refining. Recently, the company announced a joint venture with a soybean oil major for the operation of a processing plant. Companies like Marathon Petroleum are among the energy stocks to buy now category.
Repurposing The Refinery
Marathon Petroleum is a leading refiner. It has the expertise and the infrastructure to do refining on a large scale. Therefore, if the company is to re-position itself for a future where conventional fuels will go down in share and renewable will go up, it has to re-purpose its refining business. It has to focus more on refining biofuels and process vegetable-based fuels. Biodiesel is one of the big plays that Marathon Petroleum is betting on. It has been repurposing its Martinez refinery for biodiesel processing. Marathon has also entered into a joint venture with food major Archer Daniels (ADM). The joint venture will own and operate a North Dakota soybean processing complex. Marathon will own 25% of the joint venture while ADM will own the majority 75% share. Marathon Petroleum is one of the top energy stocks now that investors can look at.
Energy Stocks To Buy Now
Marathon Petroleum Corp was trading at $56 on 10th September 2021. The stock offered a dividend yield of 4.08% at the time. Since the market crash of March 2020, Marathon Petroleum’s stock is up 200%.