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Marathon Petroleum's Profitability Resurgent: Blows Past Q2 Revenue And EPS Estimates

Benzinga ·  Aug 6 20:51

Marathon Petroleum Corporation (NYSE:MPC) shares are trading higher after its second-quarter FY24 results.

Total revenues and other income of $38.362 billion topped the consensus of $35.083 billion.

Adjusted EBITDA was $3.39 billion for the quarter, compared with $4.53 billion in prior year quarter. Refining operating costs per barrel were $4.97 versus $5.15 a year ago.

Refining & Marketing refined product sales volume for the quarter was 3,742 mbpd (vs. 3,581 mbpd a year ago); Crude oil capacity utilization was 97% vs. 93% in the prior-year quarter.

Refining & Marketing segment adjusted EBITDA declined to $1.972 billion from $3.163 billion a year ago due to lower market crack spreads.

Adjusted EPS for the quarter was $4.12, above the consensus of $3.09.

As of June-end, Marathon Petroleum had $8.5 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility.

In the second quarter, the company returned around $3.2 billion to shareholders, including $2.9 billion in share repurchases and $290 million in dividends. It has $5.8 billion remaining under its share repurchase authorizations.

Outlook: Marathon Petroleum expects third-quarter Refining operating costs per barrel of $5.35 and Refinery throughputs of 2,845 mbpd.

Marathon Petroleum owns the general partner and majority limited partner interest in MPLX LP (NYSE:MPLX), which reported second-quarter earnings per limited partner unit of $1.15, beating the consensus of $0.99, and sales of $3.05 billion, beating the consensus of $2.96 billion. MPLX returned $949 million of capital to unitholders in the quarter.

Investors can gain exposure to the stock via iShares U.S. Oil & Gas Exploration & Production ETF (BATS:IEO) and VanEck Oil Refiners ETF (NYSE:CRAK).

Price Action: MPC shares are up 3.05% at $167.00 premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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