Marathon Petroleum shares edge higher as earnings, revenue beat estimates

Findlay, Ohio – Marathon Oil Company (NYSE: ) reported first-quarter earnings today that beat analysts' expectations, reporting earnings of $2.58 per share, $0.07 above analysts' expectations of $2.51. The company's revenue for the quarter also topped market expectations, coming in at $33.21 billion versus expectations of $32.01 billion.

After the financial report was released, MPC's stock price rose slightly by 0.49%.

The company's first-quarter net profit attributable to MPC was US$937 million, or US$2.58 per diluted share, down from US$2.7 billion in the same period last year, or US$6.09 per diluted share. Despite the challenges of the quarter, which included the largest program maintenance in the company's history, Adjusted EBITDA was $3.3 billion, down from $5.2 billion in the same period last year.

Chief Executive Officer Michael J. Hennigan commented on the quarter's achievements: “In the first quarter, our team safely and successfully completed the largest scheduled maintenance quarter in MPC's history, including at four of our largest refineries.” He added : “This positions us to meet high demand during the summer travel season. Additionally, we are advancing our midstream growth strategy through disciplined organic investments and targeted bolt-on acquisitions.”

On the operating front, Refining and Marketing (R&M) segment adjusted EBITDA was $1.9 billion in the first quarter of 2024, compared with $3.9 billion in the prior year's first quarter. The decline was primarily due to lower market crack spreads and lower throughput. However, the midstream business improved, with adjusted EBITDA rising to $1.6 billion from $1.5 billion year-over-year.

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Marathon Oil also emphasized returning capital to shareholders, returning about $2.5 billion through stock repurchases and dividends in the first quarter. The company announced an additional $5 billion in stock repurchase authorization, emphasizing its commitment to returning capital to shareholders.

Going forward, the company is focusing on strategic growth, including infrastructure investments at the Los Angeles refinery, a new distillate hydrotreater unit at the Galveston Bay refinery and midstream projects in the Marcellus and Permian basins. These initiatives are part of MPC's ongoing efforts to improve operational efficiency and shareholder value.

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