Marathon Q4 Earnings & Revenues Beat Estimates, Expenses Down Y/Y

Core Insights - Marathon Petroleum Corporation (MPC) reported fourth-quarter adjusted earnings per share of $4.07, significantly exceeding the Zacks Consensus Estimate of $2.73 and up from the year-ago adjusted profit of 77 cents, driven by strong performance in the Refining & Marketing segment and a 4.9% year-over-year decline in costs and expenses [1][2] Financial Performance - The company reported revenues of $33.4 billion, surpassing the Zacks Consensus Estimate of $29.6 billion, although this represented a slight decline of 0.1% year-over-year due to lower sales and reduced income from equity-method investments [2] - MPC distributed approximately $1.3 billion to shareholders in the fourth quarter and had $4.4 billion remaining under its share repurchase authorizations as of December 31, 2025 [3] Segment Analysis - The Refining & Marketing segment achieved an adjusted EBITDA of $2 billion, a 75.8% increase from the previous year's $1.1 billion, exceeding the consensus estimate by 26.7% [4] - The refining margin improved to $18.65 per barrel from $12.93 in the prior-year quarter, reflecting stronger crack spreads and beating the consensus estimate by 6.5% [5] - Refining capacity utilization was reported at 95%, up from 94% in the year-ago period [5] - The Midstream segment's adjusted EBITDA remained flat year-over-year at $1.7 billion, missing the consensus estimate by 3.7% due to higher operating costs and divestitures [7] Expense and Capital Expenditure - Total expenses for the fourth quarter were $30.7 billion, down from $32.3 billion in the previous year [8] - Capital expenditures for the quarter totaled $1.5 billion, with 31% allocated to Refining & Marketing and 67% to the Midstream segment [8] Future Guidance - MPC expects refining operating costs to average approximately $5.85 per barrel in the first quarter of 2026, with total refinery throughputs projected at about 2,740 thousand barrels per day [10] - Planned refining turnaround expenses for 2026 are expected to total approximately $1.35 billion, indicating a decline from 2025 levels [12] - The company anticipates that distributions from MPLX will fully fund MPC's dividends and standalone capital spending in 2026, with plans to return excess free cash flow to shareholders [15]