Both Marathon and Valero suffer from a double whammy of a shrinking spread between the cost of West Texas Intermediate, or WTI, and Brent crude, and a sharp rise in the cost of ethanol credits, officially called Renewable Identification Numbers, or RINs.
The ethanol credits hit a new high of $1.32 yesterday, after selling for just pennies at the beginning of the year. We wrote more about this yesterday when the ethanol credits were selling for $1.25.
In its announcement, Marathon said it expects to report profits of $570 million to $600 million, or about $1.75 to $1.85 per share. The consensus estimate had called for earnings per share of $2.58. In the second quarter of 2012, Marathon posted EPS of $2.38.
No word yet from refiners Phillips 66 (NYSE: PSX) or Tesoro Corp. (NYSE: TSO), but it is hard to imagine that either will meet expectations for the second quarter.
Shares of Marathon are down 4.8%, at $69.60 in a 52-week range of $43.62 to $92.73.
Valero’s shares are off another 1.3% today, at $34.92 in a 52-week range of $24.62 to $48.97.
Shares of Phillips 66 are down 2.5%, at $57.78 in a 52-week range of $34.50 to $70.52, and Tesoro’s shares are off 2.1%, at $53.00 in a 52-week range of $25.79 to $65.75.
Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
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