Marathon Petroleum Powers Ahead With Q4 Beat Despite Revenue, Profit Plunge: Details

Marathon Petroleum Corp MPC shares are trading higher after it reported fourth-quarter FY23 results.

Revenue and other income of $36.82 billion, beating the consensus of $35.25 billion.

Adjusted EBITDA was $3.53 billion for the quarter, compared with $5.80 billion in prior year quarter.

Refining operating costs per barrel were $5.67 versus $5.62 a year ago. Refining & Marketing refined product sales volume for the quarter was 3,612 mbpd (vs. 3,532 a year ago); Crude oil capacity utilization was 91% vs. 94% in the prior-year quarter.  

Refining & Marketing segment adjusted EBITDA declined sharply due to lower market crack spreads. Adjusted EPS for the quarter was $3.98, above the consensus of $2.20.

As of December 31, 2023, Marathon Petroleum had $10.2 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility.

In the fourth quarter, the company returned approximately $2.5 billion through share repurchases and $311 million via dividends. 

Through January 26, the company repurchased an additional $0.9 billion of company shares. The company presently has around $5.9 billion available under its share repurchase authorizations.

Marathon Petroleum owns the general partner and majority limited partner interest in MPLX LP MPLX, which reported fourth-quarter earnings per limited partner unit of $1.10, beating the consensus of $0.94, and sales of $2.97 billion, beating the consensus of $2.88 billion. MPLX returned $3.3 billion of capital to unitholders for the full year, reflecting 10% quarterly distribution increase for second consecutive year.

Outlook: Marathon Petroleum expects first-quarter Refining operating costs per barrel of $5.85 and Refinery throughputs of 2,685 mbpd. 

Price Action: MPC shares are trading higher by 0.49% at $160.91 on the last check Tuesday.

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