Marathon Petroleum: Further Upside With Refining Boom Likely Set To Last Through 2027

Seeking Profits 5.72K Followers Follow Summary Marathon Petroleum has delivered exceptional returns, fueled by surging crack spreads and supply disruptions, with shares up nearly 50% since July. Refining margins are at historic highs due to global supply shocks, with crack spreads exceeding $60/barrel and diesel prices effectively over $200/barrel. MPC's Q2 net income quadrupled; free cash flow soared; and buybacks are accelerating, supported by a robust balance sheet and $15/share excess cash. I maintain a 'buy' rating, seeing 10%+ further upside as the refining windfall persists through at least 2027, with shares potentially reaching $440. ablokhin/iStock Editorial via Getty Images Shares of Marathon Petroleum ( MPC ) have been a tremendous performer over the past year, more than doubling in value. The refining sector has been a leading beneficiary of the Iran conflict, leading to blowout margins. With supply disruptions This article was written by Seeking Profits 5.72K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.