Joe Terranova Sells Marathon Petroleum, Details Refiner Trade Strategy

Joe Terranova's Trading Strategy

• 🎯 Joe Terranova details a personal trade where he sold Marathon Petroleum entirely.
• 💡 This sale is part of a broader refiner trade initiated in early August, which also included positions in Phillips 66 and Valero.

Rationale for Selling Marathon Petroleum

• 📉 While Marathon Petroleum is up 31% this year, Terranova chose to exit the position.
• 📊 The decision was made after considering selling portions of all three refiner stocks he held.

Why Keep Phillips 66 and Valero

• 🏆 Valero is identified as the best-in-breed among the refiner names, with its price performance confirming this view.
• 🚀 Phillips 66 is favored for its turnaround potential, bolstered by activist investor Elliot Management's stake and board seats.
• 💰 Phillips 66's recent acquisition of the remaining 50% ownership in WRB Refining from Sunoco is highlighted as a strong valuation move, done at approximately four times EBITDA when seven times would have been expected.
• 📈 Terranova anticipates mean reversion for Phillips 66.