Core Viewpoint - Marathon Petroleum (NYSE: MPC) shares have underperformed over the past year due to a weakening refining cycle, but have recently rebounded strongly as crack spreads have improved [1] Company Performance - The shares of Marathon Petroleum have shown a significant recovery from their lows, indicating a potential turnaround in performance [1] Market Conditions - The refining cycle has been weak, impacting the overall performance of companies in this sector, including Marathon Petroleum [1]

Core Viewpoint - Elliott Investment Management is advocating for the election of four independent director nominees to the board of Phillips 66, emphasizing their skills and experiences to drive positive change and create value for shareholders [1][2][3]. Group 1: Nominees' Qualifications - The four nominees—Brian Coffman, Sigmund Cornelius, Michael Heim, and Stacy Nieuwoudt—bring a diverse set of skills relevant to Phillips 66, including leadership in refining, financial oversight, midstream operations, and an investor's perspective [3][4]. - Each nominee has experience serving on boards of companies at various stages, which positions them to address the unique challenges faced by Phillips 66 [3]. Group 2: Value Creation Potential - The nominees believe that closing the performance gap between Phillips 66 and its competitors is achievable, citing the company's high-quality assets and talented workforce as key strengths [4]. - They propose a focus on operational excellence, accountability, and corporate governance to unlock the company's potential and enhance its market position [4]. Group 3: Commitment to Collaboration - If elected, the nominees are prepared to work constructively with incumbent directors to strengthen Phillips 66, emphasizing their independent thinking and readiness to ask challenging questions [5]. - The nominees express a commitment to improving the company's credibility with shareholders and conducting thorough evaluations of its current structure and operations [5][6].

Core Viewpoint - The article discusses potential investment opportunities in cheap dividend-paying stocks that yield between 5.3% and 7.6%, despite the broader market recovery. It highlights five specific companies that remain undervalued and offers insights into their financial metrics and challenges [1][2]. Group 1: Company Summaries - **Bristol-Myers Squibb (BMY)**: A $90 billion pharmaceutical company with a low PEG of 0.12 and a cash-flow multiple of 7. It has a dividend yield of over 5% but faces profitability concerns due to competition affecting core drugs, leading to a 44% revenue drop for Revlimid in Q1 [3][5][6]. - **HF Sinclair (DINO)**: Formed from a merger, it operates seven U.S. refineries and has a crude oil processing capacity of 678,000 barrels per day. The stock has a PEG of 0.2 and a P/CF of 7.3, reflecting a more than 30% drop over the past year, primarily due to industry-wide challenges [7][10]. - **AES Corp. (AES)**: A utility company serving 2.7 million customers with a diverse energy portfolio. It has a PEG of 0.8 and a forward P/CF of 5, but has seen its stock lose over half its value in 2023 due to aggressive transitions to renewables and project delays [13][14][15]. - **Polaris (PII)**: A manufacturer of recreational vehicles, its stock has dropped over 70% since July 2023, resulting in a high dividend yield. The company has faced declining demand and significant revenue and profit drops, with a PEG of negative 1.6 [17][18][20]. - **Atlas Energy Solutions (AESI)**: An energy equipment and services company that has been increasing its dividends since its IPO in March 2023. It has a PEG of 0.2 and a forward P/CF of 5.5, but faces challenges due to fluctuating oil prices affecting demand [21][22][23]. Group 2: Financial Metrics - **Valuation Metrics**: All highlighted companies have a PEG below 1, indicating they are undervalued. The article emphasizes the importance of PEG and P/CF ratios in assessing investment opportunities [8][10]. - **Dividend Coverage**: Companies like DINO and AES have strong dividend coverage ratios, with DINO expected to have a coverage of 180% due to anticipated earnings growth in 2026 [12][16]. - **Market Challenges**: Each company faces unique challenges, such as competition, industry weakness, and fluctuating demand, which have impacted their stock performance and profitability [4][5][10][18].

Core Insights - The International Energy Agency (IEA) forecasts that global refinery output will reach 83.2 million barrels per day (bpd) in 2025 and 83.6 million bpd in 2026 [1] Industry Summary - The projected increase in refinery output indicates a growing demand for refined products in the coming years, reflecting potential opportunities for investment in the refining sector [1] - The expected rise in production levels suggests that refiners may need to enhance their operational efficiencies and capacity to meet the anticipated demand [1] - The data highlights the importance of monitoring global oil supply and demand dynamics, as they will significantly impact refinery profitability and investment strategies [1]

Core Insights - Murphy USA Inc. reported first-quarter 2025 earnings per share of $2.63, missing the Zacks Consensus Estimate of $3.87 and down from $3.12 in the previous year, primarily due to lower petroleum product sales [1] - The company's operating revenues were $4.5 billion, a decrease of 6.6% year over year, and fell short of the consensus estimate by $241 million [1] Revenue Breakdown - Revenues from petroleum product sales were $3.5 billion, below the estimate of $3.7 billion and down 8.4% from Q1 2024 [2] - Merchandise sales remained unchanged year over year at $999.4 million [2] Fuel Contribution - Total fuel contribution increased by 0.4% year over year to $287.3 million, driven by higher retail contribution and margin expansion, with total fuel contribution at 25.4 cents per gallon, up 2.4% from Q1 2024 [3] - Retail fuel contribution rose 7.1% year over year to $267.7 million, with margins widening to 23.7 cents per gallon from 21.7 cents in the same period of 2024 [4] - Retail gallons sold decreased by 1.9% year over year to 1,131.2 million, missing the estimate of 1,152 million [4] Merchandise Contribution - Contribution from merchandise increased by 2.2% to $195.9 million, despite flat sales, as unit margins rose from 19.2% a year ago to 19.6% [5] - On a same-store sales (SSS) basis, total merchandise contribution increased by 1% year over year, mainly due to a 2.8% rise in nicotine margins, although total merchandise sales decreased by 1.6% on an SSS basis [5] Balance Sheet and Share Buyback - As of March 31, Murphy USA had cash and cash equivalents of $49.4 million and long-term debt of $2 billion, with a debt-to-capitalization ratio of 73.3% [7] - The company repurchased shares worth $151.2 million during the quarter [7]

Delek US Holdings, Inc. (DK) reported a first-quarter 2025 adjusted net loss of $2.32 per share, wider than the Zacks Consensus Estimate of a loss of $2.27 and the year-ago quarter’s loss of 41 cents. This decline was mainly due to weaker year-over-year performance in the Refining segment. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Net revenues decreased 18.2% year over year to $2.6 billion.  The figure also missed the Zacks Consensus Estimate by $208 million.The diversified downs ...

Group 1 - Phillips 66 shares have underperformed over the past year, losing approximately 25% of their value due to a challenging macro refining environment [1] - The stock was significantly impacted by President Trump's announcement of widespread tariffs [1] Group 2 - The article does not provide any specific investment recommendations or advice regarding Phillips 66 or other companies mentioned [2]

Financial Data and Key Metrics Changes - NAV decreased by $336 million from Q4 2024, primarily due to negative performance in funds and accrual for distribution, partially offset by increases in CVI and auto service [5] - Investment funds ended down approximately 8.4% for the quarter, mainly driven by healthcare investments [6] - The company ended the quarter with $1.3 billion in cash and cash equivalents at the holding company, and an additional $900 million of cash at the funds [6] Business Line Data and Key Metrics Changes - Energy segment consolidated EBITDA was negative $61 million for Q1 2025, compared to $203 million in Q1 2024, impacted by the Coffeyville refinery turnaround and unfavorable RINs valuation [11] - Automotive segment sales were down 9% year over year; excluding the wind down of the parts business, sales were down 6% [12] - Adjusted EBITDA for the automotive segment was negative $6 million, with profitability suffering due to labor hiring and inventory optimization efforts [13] - Real estate's Q1 2025 adjusted EBITDA decreased by $1 million compared to the prior year quarter [15] - Food Packaging's adjusted EBITDA decreased by $6 million due to lower prices and higher material costs [16] - Pharma's adjusted EBITDA for Q1 2025 came in lower by $3 million due to increased R&D spending and marketing expenses [17] Market Data and Key Metrics Changes - The company noted a modestly positive performance quarter to date when marking to market the funds and adding in CVI and UAN [6][25] Company Strategy and Development Direction - The company is focusing on significant investments in labor, inventory, equipment, and marketing to improve the automotive segment's performance [12] - The board maintained a quarterly distribution at $0.50 per depositary unit, indicating a commitment to returning value to shareholders [7] - The company is exploring the sale of additional properties in its portfolio and seeking new opportunities that fit its investment strategy [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of outstanding litigation related to small refinery exemptions, which could remove a $438 million liability [5] - The company sees considerable value creation potential in its portfolio despite market volatility [7] - Management believes that investments in the automotive segment, while painful in the short term, are necessary for long-term profitability [13] Other Important Information - The company has a significant liquidity position, with $3.8 billion in cash and investments at the holding company and $1.3 billion at subsidiaries [18] Q&A Session Summary Question: Can you provide details on the automotive segment store closures? - Management refrained from discussing the aggregate EBITDA loss from store closures but indicated that many previously profitable stores are now money-losing and are being evaluated for closure [20][21] Question: Are there any liabilities associated with the store closures? - Management noted that some closures present opportunities, with one previously underperforming store sold for $4 million, indicating that many closures should not be considered liabilities [22][23] Question: What is the current status of indicative net asset value? - Management clarified that the public portfolio and marked investments were modestly positive as of the last Friday [25]

Financial Data and Key Metrics Changes - NAV decreased by $336 million from Q4 2024, primarily due to negative performance in funds and accrual for distribution, partially offset by increases in CVI and auto service [5] - Investment funds ended down approximately 8.4% for the quarter, mainly driven by healthcare investments [6] - The company ended the quarter with $1.3 billion in cash and cash equivalents at the holding company, and an additional $900 million of cash at the funds [6] Business Line Data and Key Metrics Changes - Energy segment consolidated EBITDA was negative $61 million for Q1 2025, compared to $203 million in Q1 2024, impacted by the Coffeyville refinery turnaround and unfavorable RINs valuation [11] - Automotive segment sales were down 9% year over year, with adjusted EBITDA at negative $6 million [12][13] - Real estate's Q1 2025 adjusted EBITDA decreased by $1 million compared to the prior year quarter [15] - Food Packaging's adjusted EBITDA decreased by $6 million due to lower prices and higher costs [16] - Pharma's adjusted EBITDA decreased by $3 million due to higher R&D and marketing expenses [17] Market Data and Key Metrics Changes - CVI share price increased by 3%, leading to an increase of $80 million from the fourth quarter [5] - The funds ended the quarter approximately 20% net long, adjusting for refining hedges, the fund was 35% net long [10] Company Strategy and Development Direction - The company is focusing on significant value creation potential in its portfolio, particularly in electric utilities benefiting from AI-driven demand [7][8] - The automotive segment is undergoing restructuring, including store closures and investments in labor and facilities to improve long-term profitability [12][13] - The company is exploring the sale of additional properties and seeking new opportunities that fit its investment strategy [15] Management's Comments on Operating Environment and Future Outlook - Management remains hopeful for a resolution regarding small refinery exemptions that could remove a $438 million liability [5] - The company is maintaining liquidity to capitalize on attractive opportunities within and outside existing operating segments [18] Other Important Information - The board has maintained a quarterly distribution at $0.50 per depositary unit [6] - The company is actively seeking to improve operational efficiency in its Food Packaging segment through a restructuring plan [16] Q&A Session Summary Question: Can you provide details on the automotive segment store closures? - Management refrained from discussing the aggregate EBITDA loss for the money-losing stores but indicated that they are taking a hard look at the causes of decline and will be closing underperforming stores [20][21] Question: Are there any liabilities associated with the store closures? - Management noted that some closures have turned into opportunities, with one store sold for $4 million despite being a money loser [22][23] Question: What is the current status of indicative net asset value? - Management clarified that the public portfolio, including funds and marked investments, was modestly positive as of the last Friday [24]

Financial Performance - Par Pacific reported a net loss of $(30.4) million, or $(0.57) per diluted share, for Q1 2025, compared to a net loss of $(3.8) million, or $(0.06) per diluted share, in Q1 2024 [2][11] - Adjusted Net Loss for Q1 2025 was $(50.3) million, a significant decline from Adjusted Net Income of $41.7 million in Q1 2024 [2][11] - Adjusted EBITDA for Q1 2025 was $10.1 million, down from $94.7 million in Q1 2024 [2][11] Refining Segment - The Refining segment reported an operating loss of $(24.7) million in Q1 2025, compared to operating income of $22.6 million in Q1 2024 [4] - Adjusted Gross Margin for the Refining segment was $104.3 million in Q1 2025, down from $207.1 million in Q1 2024 [4] - Adjusted EBITDA for the Refining segment was $(14.3) million in Q1 2025, compared to $81.3 million in Q1 2024 [4] Hawaii Operations - The Hawaii Index averaged $8.13 per barrel in Q1 2025, down from $12.07 per barrel in Q1 2024 [5][6] - Throughput in Hawaii was 79 thousand barrels per day (Mbpd) in Q1 2025, unchanged from Q1 2024 [5] - Production costs in Hawaii were $4.81 per throughput barrel in Q1 2025, slightly down from $4.89 in Q1 2024 [5] Montana Operations - The Montana Index averaged $7.07 per barrel in Q1 2025, down from $17.09 per barrel in Q1 2024 [7][8] - Throughput in Montana was 52 Mbpd in Q1 2025, compared to 53 Mbpd in Q1 2024 [7] - Production costs in Montana were $10.56 per throughput barrel in Q1 2025, down from $12.44 in Q1 2024 [7] Washington Operations - The Washington Index averaged $4.15 per barrel in Q1 2025, down from $5.16 per barrel in Q1 2024 [9][10] - Throughput in Washington was 39 Mbpd in Q1 2025, up from 31 Mbpd in Q1 2024 [9] - Production costs in Washington were $4.16 per throughput barrel in Q1 2025, down from $6.07 in Q1 2024 [9] Wyoming Operations - The Wyoming Index averaged $20.31 per barrel in Q1 2025, up from $17.23 per barrel in Q1 2024 [12][13] - Throughput in Wyoming was 6 Mbpd in Q1 2025, down from 17 Mbpd in Q1 2024 [12] - Production costs in Wyoming were $34.35 per throughput barrel in Q1 2025, significantly higher than $7.86 in Q1 2024 [12] Retail Segment - The Retail segment reported operating income of $16.0 million in Q1 2025, compared to $11.0 million in Q1 2024 [14] - Adjusted Gross Margin for the Retail segment was $39.8 million in Q1 2025, up from $37.1 million in Q1 2024 [14] - Retail segment Adjusted EBITDA was $18.6 million in Q1 2025, compared to $14.1 million in Q1 2024 [15] Liquidity and Capital Management - As of March 31, 2025, Par Pacific's cash balance was $133.7 million, with gross term debt of $642.4 million [18] - The company repurchased $51 million of common stock during Q1 2025, representing a 5% reduction in shares outstanding [3][19] - Net cash used in operations totaled $(1.4) million for Q1 2025, compared to net cash provided by operations of $25.4 million in Q1 2024 [17]