Marathon Petroleum Tops Q4 Earnings on Higher Throughput

Core Insights - Marathon Petroleum Corporation (MPC) reported fourth-quarter adjusted earnings per share of 77 cents, significantly exceeding the Zacks Consensus Estimate of 6 cents, driven by strong performance in its Refining & Marketing segment [1] - The company's revenues reached $33.5 billion, surpassing the Zacks Consensus Estimate of $30.7 billion, although this represented a 9.1% decline year over year [2] Refining & Marketing Segment - The Refining & Marketing segment's adjusted EBITDA was $559 million, down over 75% from $2.2 billion in the previous year, primarily due to lower refining margins, despite stronger throughput and reduced costs [3] - The refining margin decreased to $12.93 per barrel from $17.81 a year ago, while capacity utilization improved to 94% from 91% in the same quarter of the previous year [3] - Total refined product sales volumes increased to 3,747 thousand barrels per day (mbpd) from 3,583 mbpd year over year, and throughput rose to 2,997 mbpd, exceeding the Zacks Consensus Estimate of 2,915 mbpd [4] Midstream Segment - The Midstream segment reported adjusted EBITDA of $1.7 billion, an increase of 8.7% from the fourth quarter of 2023, supported by higher rates, volumes processed, and contributions from acquired assets in the Utica and Permian basins [5] Financial Overview - Total expenses for the fourth quarter were $32.3 billion, a decrease of 6.1% from the previous year [6] - Capital expenditures amounted to $921 million, with 53% allocated to Refining & Marketing and 41% to the Midstream segment, compared to $780 million in the same period last year [6] - As of December 31, the company had cash and cash equivalents of $3.2 billion and total debt of $27.5 billion, resulting in a debt-to-capitalization ratio of 53.1% [7] - In the fourth quarter, MPC repurchased $1.3 billion of shares, with a remaining authorization of $7.8 billion [7]