Marathon Petroleum Corporation (MPC) is a major player in the U.S. petroleum industry, handling refining, marketing and transporting petroleum products. With a significant presence in key regions, including the Gulf Coast, Midwest and West Coast, MPC operates a highly integrated refining system that efficiently processes crude oil into a wide range of products, including gasoline, diesel, jet fuel and petrochemicals. The company's extensive network of assets, including refineries, pipelines and storage faci ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Marathon Petroleum (MPC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Marathon Petroleum currently has an average brokerag ...

Core Insights - Marathon Petroleum Corporation (MPC) reported second-quarter adjusted earnings per share of $4.12, exceeding the Zacks Consensus Estimate of $3.04, driven by strong performance in its Refining & Marketing segment [1] - The company's revenues reached $38.4 billion, surpassing the Zacks Consensus Estimate of $32 billion and reflecting a 4.2% year-over-year improvement [2] - The refining margin decreased to $17.37 per barrel from $22.10 a year ago, while capacity utilization increased to 97% from 93% in the same period of 2023 [3] Financial Performance - Operating income for the Refining & Marketing segment was $1.3 billion, down 42.3% from $2.3 billion in the previous year, primarily due to lower margins [2] - Total refined product sales volumes were 3,742 thousand barrels per day, a decrease from 3,581 mbpd in the year-ago quarter, while throughput increased to 3,065 mbpd from 2,925 mbpd [3] - Operating costs per barrel decreased from $5.15 to $4.97 year-over-year [4] Capital Expenditure and Debt - Marathon Petroleum spent $569 million on capital programs in the second quarter, with 53% allocated to Refining & Marketing and 42% to the Midstream segment, compared to $562 million in the prior year [7] - As of June 30, the company had cash and cash equivalents of $4.4 billion and total debt of $28.9 billion, resulting in a debt-to-capitalization ratio of 50.9% [7] Share Repurchase - In the second quarter, MPC repurchased $2.9 billion of shares and an additional $900 million in July, with a remaining authorization of $5.8 billion [8]

Financial Data and Key Metrics Changes - Marathon Petroleum Corporation generated second quarter adjusted earnings per share of $4.12, with adjusted EBITDA increasing sequentially by $133 million, driven by improved results in both Refining & Marketing and Midstream segments [8][9] - The company reported cash from operations, excluding working capital impacts, of $2.7 billion, with total capital return of $3.2 billion to shareholders [8][14] - The tax rate for the quarter was 16%, resulting in a tax provision of $373 million [9] Business Line Data and Key Metrics Changes - The Refining & Marketing segment achieved a refining utilization rate of 97%, processing nearly 2.9 million barrels of crude per day, with operating costs at $4.97 per barrel [10] - The Midstream segment, primarily through MPLX, generated strong cash flows, contributing $550 million in cash flow to MPC [12][14] - Adjusted R&M EBITDA per barrel was reported at $7.07, leading refining peers [8] Market Data and Key Metrics Changes - The global demand for refined products reached new records, with expectations for 2024 to see continued record consumption [4] - The U.S. refining industry is expected to remain structurally advantaged, with limited global refining capacity additions anticipated through the end of the decade [5] Company Strategy and Development Direction - The company is focused on operational excellence, commercial execution, and disciplined capital investments in high-return projects to optimize assets [5][17] - The strategy includes enhancing the midstream growth to deliver cash flow uplift and maintaining a competitive advantage through geographic diversification [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand growth outpacing near-term capacity additions, supporting an enhanced mid-cycle environment for refining [4][35] - The company anticipates a utilization rate of 90% for the third quarter, with planned turnaround expenses projected at approximately $330 million [15][38] Other Important Information - The company returned $2.9 billion through share repurchases and $290 million in dividends during the quarter, with a remaining $5.8 billion under current share repurchase authorizations [14] - MPLX's recent transactions are expected to enhance its Permian NGL value chain and provide a compelling value proposition [6][7] Q&A Session Summary Question: Thoughts on MPLX distribution growth - Management confirmed a strategy targeting mid-single-digit growth in MPLX distributions, which supports MPC's capital needs and dividend coverage [20][21] Question: Drivers of Gulf Coast operating costs - Management attributed the low Gulf Coast operating costs to initiatives focused on profitability per barrel and operational efficiencies [22][23] Question: Key objectives for the new CEO - The new CEO emphasized creating exceptional value, focusing on operational excellence, and maintaining competitive capital allocation [25][26] Question: M&A considerations in renewable diesel - Management clarified that there are no ongoing discussions regarding a buyout with Neste and emphasized organic growth opportunities within their portfolio [27] Question: Impact of TMX on operations - Management indicated that the start-up of TMX has proceeded as anticipated, with no significant operational changes expected [29][30] Question: Market structure and utilization outlook - Management believes in an enhanced mid-cycle for the U.S. refining industry, with steady demand for gasoline and diesel, and strong signals for jet fuel [34][36] Question: Utilization guidance for Q3 - Management confirmed that the 90% utilization guidance reflects planned turnaround activities and is aligned with market demand [38] Question: Performance of Martinez facility - Management reported that the Martinez facility is on track to reach full capacity by year-end, currently operating at 75% of nameplate capacity [40] Question: Shareholder returns and buyback strategy - Management reiterated commitment to share buybacks as a primary return of capital strategy, despite recent increases in net debt [42][43] Question: Mid-Con gross margin performance - Management attributed strong gross margins in the Mid-Con to the competitive advantage of their integrated system [44] Question: Dividend growth policy - Management stated that the dividend policy remains focused on sustainable growth, with a historical compound annual growth rate of 12.5% [47] Question: Balance of buybacks and balance sheet management - Management confirmed no plans to relever the balance sheet, maintaining a disciplined approach to capital structure [48]

Company Performance - Marathon Petroleum reported quarterly earnings of $4.12 per share, exceeding the Zacks Consensus Estimate of $3.04 per share, but down from $5.32 per share a year ago, representing an earnings surprise of 35.53% [1] - The company posted revenues of $38.36 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 19.75% and up from $36.82 billion year-over-year [2] - Over the last four quarters, Marathon Petroleum has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - The stock has gained approximately 9.2% since the beginning of the year, outperforming the S&P 500's gain of 8.7% [3] - The current consensus EPS estimate for the upcoming quarter is $4.34 on revenues of $32.55 billion, and for the current fiscal year, it is $13.71 on revenues of $134.66 billion [7] Industry Context - The Oil and Gas - Refining and Marketing industry is currently ranked in the bottom 11% of over 250 Zacks industries, indicating potential challenges for stocks within this sector [8] - The performance of Marathon Petroleum's stock may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8]

Financial Performance - Second-quarter net income attributable to Marathon Petroleum Corp. (MPC) was $1.5 billion, or $4.33 per diluted share, down from $2.2 billion, or $5.32 per diluted share, in the same quarter of 2023[1]. - Adjusted EBITDA for the second quarter of 2024 was $3.4 billion, compared to $4.5 billion in the second quarter of 2023, reflecting a decrease of approximately 24.4%[2]. - Net income attributable to the company for Q2 2024 was $1,515 million, down 32% from $2,226 million in Q2 2023[20]. - Adjusted net income attributable to MPC for the same period was $1,442 million, compared to $2,226 million in 2023, indicating a 35% decrease[35]. - Adjusted EBITDA for the three months ended June 30, 2024, was $3,392 million, down from $4,531 million in 2023, reflecting a 25% decline[38]. Segment Performance - The Refining & Marketing segment adjusted EBITDA was $2.0 billion in Q2 2024, down from $3.2 billion in Q2 2023, with a margin of $7.07 per barrel compared to $11.88 per barrel in the prior year[4]. - Refining & Marketing segment adjusted EBITDA for Q2 2024 was $1,972 million, down from $3,163 million in Q2 2023, representing a decrease of 37.5%[39]. - Refining & Marketing gross margin for Q2 2024 was $1,921 million, compared to $2,625 million in Q2 2023, reflecting a decline of 26.8%[39]. - Total Refining & Marketing margin for Q2 2024 was $4,845 million, down 17.6% from $5,883 million in Q2 2023[39]. - Midstream segment adjusted EBITDA increased to $1.6 billion in Q2 2024, up from $1.5 billion in Q2 2023, driven by higher rates and volumes[5]. Revenue and Costs - Total revenues and other income for Q2 2024 reached $38,362 million, a 4.2% increase from $36,824 million in Q2 2023[20]. - The total cost of revenues for Q2 2024 was $33,945 million, an increase of 6.9% from $31,762 million in Q2 2023[20]. - Operating expenses (excluding depreciation and amortization) for Q2 2024 were $2,633 million, a decrease from $2,748 million in Q2 2023[39]. - Refining operating costs per barrel decreased to $4.97 in Q2 2024 from $5.15 in Q2 2023, indicating improved cost efficiency[4]. - Corporate expenses increased to $223 million in Q2 2024 from $183 million in Q2 2023, primarily due to decommissioning costs[6]. Shareholder Returns - The company returned $3.2 billion to shareholders in Q2 2024 through $2.9 billion in share repurchases and $290 million in dividends[8]. Capital Expenditures and Investments - Capital expenditures for Q2 2024 totaled $569 million, slightly up from $562 million in Q2 2023[22]. - The company’s capital spending plan for 2024 includes high-return investments at its Los Angeles and Galveston Bay refineries, along with shorter-term projects to enhance refinery yields and improve energy efficiency[9]. Cash and Debt Position - As of June 30, 2024, MPC had $8.5 billion in cash and cash equivalents, with an additional $5 billion available on its bank revolving credit facility[7]. - The company reported a total debt of $28,937 million as of June 30, 2024, compared to $27,289 million at the end of March 2024, indicating an increase of 6%[31]. Operational Metrics - Crude oil refining capacity utilization was 97% in Q2 2024, compared to 93% in Q2 2023[24]. - Total pipeline throughputs for the three months ended June 30, 2024, were 6,129 mbpd, an increase from 6,032 mbpd in the same period of 2023, representing a growth of 1.6%[30]. - Gasoline yield for the three months ended June 30, 2024, was 280 mbpd, compared to 251 mbpd in the same period of 2023, an increase of 11.5%[29]. - The company processed 9,568 million cubic feet per day of natural gas in Q2 2024, an increase from 8,934 million cubic feet per day in Q2 2023, representing a growth of 7.1%[30]. Margins by Region - Gulf Coast Refining & Marketing margin decreased to $1,882 million in Q2 2024 from $2,259 million in Q2 2023, a drop of 16.6%[39]. - Mid-Continent Refining & Marketing margin fell to $1,961 million in Q2 2024, down 22.6% from $2,535 million in Q2 2023[39]. - West Coast Refining & Marketing margin decreased to $1,002 million in Q2 2024, down 8.0% from $1,089 million in Q2 2023[39].

Core Insights - Marathon Petroleum Corporation (MPC) reported a net income of $1.5 billion, or $4.33 per diluted share, for Q2 2024, a decrease from $2.2 billion, or $5.32 per diluted share, in Q2 2023 [1][2][19] - Adjusted EBITDA for Q2 2024 was $3.4 billion, down from $4.5 billion in Q2 2023, reflecting strong operational performance despite lower market conditions [2][4][36] - The company returned $3.2 billion to shareholders through share repurchases and dividends during the quarter [3][9] Financial Performance - Adjusted net income for Q2 2024 was $1.4 billion, or $4.12 per diluted share, compared to $2.2 billion, or $5.32 per diluted share, in Q2 2023 [2][36] - The refining and marketing segment adjusted EBITDA was $2.0 billion in Q2 2024, down from $3.2 billion in Q2 2023, primarily due to lower market crack spreads [5][20] - Midstream segment adjusted EBITDA increased to $1.6 billion in Q2 2024, up from $1.5 billion in Q2 2023, driven by higher rates and volumes [7][11] Operational Highlights - Refining operating costs per barrel were $4.97 in Q2 2024, slightly down from $5.15 in Q2 2023, with crude capacity utilization at approximately 97% [6][22] - The company processed 3.1 million barrels per day in Q2 2024, with a refining margin of $17.37 per barrel, compared to $22.10 per barrel in Q2 2023 [6][24] - MPC's capital spending plan for 2024 includes high-return investments at its Los Angeles and Galveston Bay refineries [10] Strategic Developments - MPC received a quarterly distribution of $550 million from MPLX, highlighting the strategic relationship between the two entities [1][11] - MPLX is advancing growth projects in the Permian and Marcellus basins, with a focus on expanding its value chains [11][12] - The company has $5.8 billion available under its share repurchase authorizations, indicating strong capital return capabilities [9][29]

Most investors are waking up to realize that the market rotation has not only started but is gaining momentum with each trading day. Stanley Druckenmiller started selling out of the technology sector, specifically the artificial intelligence names that seemed to have run their course, to reallocate into bonds and small-cap stocks. Marathon Petroleum Today MPC Marathon Petroleum $164.64 -8.54 (-4.93%) 52-Week Range $133.65 ▼ $221.11 Dividend Yield 2.00% P/E Ratio 8.22 Price Target $196.85 Add to Watchlist Wh ...

Marathon Petroleum Corporation (MPC) is set to release second-quarter results on Aug 6. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.83 per share on revenues of $32 billion. Let's delve into the factors that might have influenced the independent oil refiner and marketer's results in the June quarter. But it's worth taking a look at MPC's previous-quarter performance first. Highlights of Q1 Earnings & Surprise History In the last reported quarter, the Findlay, OH-base ...

Marathon Petroleum (MPC) closed the latest trading day at $177.02, indicating a -0.71% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 2.64%. The refiner's shares have seen an increase of 2.38% over the last month, surpassing the Oils-Energy sector's loss of 10.32% and the S&P 500's loss of 0.44%. Market participants will be closely following the financial results of Marathon Petroleum ...