Meanwhile, Marathon Petroleum also benefits from the pipeline when the oil gets to the refinery in Cushing, Okla. Marathon Petroleum, which I consider one of the best values among energy stocks, will be able to do what it does best -- refining -- at a lower cost and with higher margins if Canadian oil flows through Keystone's pipelines.
Below is a one-year chart of Marathon Petroleum illustrating how solidly above its 100-day EMA the share price stands today.
MPC data by YCharts
With a forward (one-year) PE ratio of just above 8 and its price-to-earning-to-growth (PEG) ratio of only 0.9, Marathon Petroleum is a very good value. The analysts who follow the company have an average one-year price target for the stock of close to $104, compared to the $87 where shares closed Wednesday. Investors will also like the nearly 2% dividend they'll receive by owning Marathon Petroleum at the current share price.
When politicians and environmental groups realize the Keystone XL is most likely the safest way to ship Canadian oil to America's oil refineries, TransCanada and Marathon Petroleum and their shareholders will be gushing.
At the time of publication the author had positions in TRP and MPC.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.