Americas Energy: Oil - Refining - Lower Mid-Con Inventory Levels and Feedstock Advantage Support Positive 2Q Revisions

Goldman Sachs maintains a constructive outlook on the refining complex, specifically favoring Mid-Continent refiners like DK and DINO due to tight inventory levels and feedstock advantages.

Key Takeaways

• 1.The Mid-Continent (Mid-Con) refining region has emerged stronger QTD due to low inventory levels and feedstock advantages.
• 2.Goldman Sachs reiterates Buy ratings on DK and DINO as primary beneficiaries of Mid-Con dynamics.
• 3.Inventory for gasoline and distillates in the Mid-Con is significantly below historical averages, creating a tight supply setup.

Table of Contents

• Key Beneficiaries in PADD 2:
• Valuation & Key Risks
• Disclosure Appendix
• Price target and rating history chart(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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