Marathon Oil Company MPC and Archer-Daniels-Midland Company (ADM) recently announced the closing of their soybean oil manufacturing joint venture (JV) to meet growing demand for renewable diesel fuel.

Announced on August 1, the Green Bison Soy Processing, LLC joint venture was supposed to own and operate a soybean processing plant in Spiritwood, North Dakota, with ADM holding 75% and MPC 25%.

The Spiritwood facility, which is slated for completion in 2023, will source and process local soybeans and supply the resulting soybean oil only to Marathon Petroleum. The Spiritwood complex plans to produce 600 million pounds of refined soybean oil per year, which is enough raw material for 75 million gallons of sustainable diesel, each year.

In addition to the Spiritwood joint venture, the companies plan to work together to explore other agricultural perspectives to promote renewable transportation fuels.

Ken Campbell, president of ADM North America Oils, Biodiesel and Renewable Chemicals, said the entity already supplies Marathon Petroleum with soybean oil for renewable diesel manufacturing, but this contract certainly expands their partnership significantly. .

Both companies have the insight, size and capability to deliver lasting results, from the farm to the fuel delivered in millions of commercial and personal vehicles. This will help boost demand for renewable diesel which ADM estimates could reach 5 billion gallons by 2025. More positive news is that the organization sees the potential to generate more sustainable solutions by forging new alliances.

This joint venture will allow MPC to improve its ability to optimize and acquire logistically advantageous raw materials for its adjacent Dickinson plant. It will also provide Marathon Petroleum with a basis for collaborations with two world-class partners, as they invest in a sustainable and diverse energy future.

The approximately $ 350 million Spiritwood complex will be equipped with state-of-the-art automation technology and will be able to process 150,000 bushels of soybeans per day when completed. Many new jobs are being created in the area thanks to the new complex building and the facility would employ around 75 people once it is fully operational. The Spiritwood complex intends to begin production, with the 2023 harvest in view.

Rank of Zacks and choice of keys

Marathon Petroleum currently has a Zack Rank # 3 (Hold). Investors interested in the energy sector might consider the following stocks to consider with a Zacks Rank # 1 (strong buy) right now. You can see The full list of today’s Zacks # 1 Rank stocks here.

Western Oil Company OXY is an integrated oil and gas company with significant exposure to exploration and production. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. At the end of 2020, Occidental Petroleum’s preliminary proven global reserves stood at 2.91 billion boe compared to 3.9 billion boe at the end of 2019.

In the past year, shares of Occidental Petroleum have jumped 99% against the industry’s growth of 96.6%. OXY profits in 2021 are expected to rise 151.4% from the figure released a year ago. OXY has also witnessed eight northward estimate revisions over the past 60 days. In the third quarter, OXY met its divestment target of $ 10 billion by signing an agreement to sell its stake in two Ghanaian offshore assets for $ 750 million.

PDC Energy PDCE is an independent upstream operator specializing in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its current status following the January 2020 merger with SRC Energy, is currently the second largest producer in the Denver-Julesburg basin. At the end of 2020, PDCE’s total estimated proven reserves stood at 731,073,000 barrels of oil equivalent.

In the past year, shares of PDC Energy have gained 169% versus industry growth of 108.6%. PDCE’s profits for 2021 are expected to increase by 273.4% from the figure released the previous year. In the past 60 days, Zacks’ consensus estimate for PDC Energy’s earnings in 2021 has been increased by 26.8%. PDCE earnings have beaten Zacks’ consensus estimate over the past four quarters, averaging 51.06%.

Phillips 66 PSX is the leading player in operations such as refining, chemicals and midstream in terms of size, efficiency and strengths. PSX’s operations include the processing, transportation, storage and marketing of fuels and products around the world. PSX is currently valued at $ 33.9 billion and offers a quarterly dividend of 92 cents.

The PSX is expected to see a 532.6% increase in profits in 2021 compared to the figure of the previous year. It has seen three upward revisions in the past 30 days. Phillips ’66 net profit has beaten Zacks’ consensus estimate three times in the past four quarters and missed the same time. PSX currently has a Zacks style score of A for value.

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