Marathon (MPC) Overcomes Lower Margins, Tops Q2 Earnings

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]