You wonder where the money is going? MPC stock is ~16-20% higher than our peers, yet our share buyback program is ~200% our peers. That is where the money is going. Who benefits the most from a strong share buy back program? Those compensated primarily in stock, ie execs and upper management.
Share buyback program:
2Q24 1Q24 4Q23
MPC: $2.9B $2.2B $2.5B
PSX: $0.8B $0.8B $1.2B
VLO: $0.6B $1.0B $1.0B
Captains of a ship /Execs sometimes know a ship is going down or likely will list to one side and have info you do not. Coming consolidations, etc. Moves to bump up stock value before they jump off the ship include buybacks which can raise stock value and therefore put more jingle in their own pockets. Remember ENR-N?
Buyback programs tell investors a business might be in good shape. So investors buy more stock in that company. The value goes up. Those already holding the most stocks benefit greatly. However past practice shows with a variety of other (not MPC) businesses the buyback program was a veil to disguise that all is well so come and buy more .