Marathon Q3 Earnings Miss Estimates, Revenues Beat, Expenses Down Y/Y

Core Insights - Marathon Petroleum Corporation (MPC) reported third-quarter adjusted earnings per share of $3.01, missing the Zacks Consensus Estimate of $3.11, primarily due to a $56 million charge from performance-based stock compensation, although this represents a significant increase from the year-ago adjusted profit of $1.87 driven by a 2.6% decline in costs and expenses [1][2] Financial Performance - Revenues for the third quarter reached $35.8 billion, exceeding the Zacks Consensus Estimate of $30.8 billion and reflecting a 1.3% year-over-year increase, attributed to higher sales and operating revenues [2][11] - The company reported expenses of $33.1 billion, down from $34 billion in the same quarter last year [9] - Adjusted EBITDA for the Refining & Marketing segment was $1.8 billion, up approximately 55.1% from $1.1 billion year-over-year, surpassing consensus estimates by 2.1% [5] - Midstream segment adjusted EBITDA rose 5% year-over-year to $1.7 billion, driven by higher rates and throughputs, also exceeding consensus estimates by 2.2% [8][11] Dividend and Shareholder Returns - MPC's board declared a quarterly dividend of $1 per share, representing a 10% sequential increase from the previous quarter, with a total of approximately $926 million distributed to shareholders during the third quarter [3][16] - As of September 30, 2025, $5.4 billion remained available under authorized share repurchase programs [3] Operational Developments - The midstream segment strengthened its integrated value chain with the final investment decision on the Eiger Express Pipeline, expected to transport up to 2.5 billion cubic feet of natural gas per day from the Permian Basin to Katy, TX, starting mid-2028 [4][11] - Refining capacity utilization was reported at 95%, up from 94% in the prior year [6] Future Guidance - For the fourth quarter of 2025, MPC expects refining operating costs to average $5.80 per barrel, with total refinery throughputs anticipated at 2,905 thousand barrels per day [13][14] - The company is focused on advancing high-return capital projects at its refineries to enhance margins and reduce costs, while also investing in its Midstream subsidiary MPLX for durable mid-single-digit EBITDA growth [15][16]