Marathon Petroleum Q3: Earnings Beat, Strong Cash Generation & More

Marathon Petroleum Corp MPC reported Q3 FY23 revenue and other income of $41.58 billion, beating the consensus of $40.02 billion.

Income from operations totaled $4.75 billion, better than $6.69 billion a year ago.

Adjusted EBITDA was $5.71 billion for the quarter, compared with $6.83 billion in Q3 FY22.

Refining operating costs per barrel were $5.14 versus $5.63 a year ago on lower energy costs. Refining & Marketing refined product sales volume for the quarter was 3,596 mbpd (vs. 3,587 a year ago); Crude oil capacity utilization was 94% vs. 98% in Q3 2022.  

Refining & Marketing segment adjusted EBITDA (excludes refining planned turnaround costs) declined to $153 million from $384 million a year ago due to lower market crack spreads.

Adjusted EPS for the quarter was $8.14, above the consensus of $7.77.

As of September 30, 2023, MPC had $13.1 billion of cash, cash equivalents, short-term investments, and $5 billion available on its bank revolving credit facility.

Last week, MPC raised the quarterly dividend per share by 10% to $0.825 per share, payable on December 11, 2023, to shareholders of record as of November 16, 2023.  

Also, the board of directors approved an additional $5 billion share repurchase authorization, which totaled the available share repurchase authorizations to $8.3 billion as of October 27.

During the quarter, the company returned $3.1 billion of capital through $2.8 billion in share repurchases and $297 million of dividends.

MPLX LP MPLX raised distribution by 10%, with MPC expected to receive an incremental $200 million for a total of $2.2 billion annually.

Outlook: MPC expects fourth-quarter Refining operating costs per barrel of $5.60 and Refinery throughputs of 2,890mbpd. 

Price Action: MPC shares are trading higher by 0.63% at $147.78 on the last check Tuesday.