Marathon Petroleum Corp. (NYSE:MPC) posted better-than-expected second-quarter earnings on Tuesday, driven by robust execution in its refining and commercial operations, despite headwinds in refining margins.
Following the report, shares of the energy giant dipped slightly by 0.10% in after-hours trading.
The company reported net income of $1.2 billion, or $3.96 per diluted share, handily beating analyst expectations of $3.11. Revenue for the quarter totaled $34.1 billion, also ahead of the projected $33.04 billion.
Adjusted EBITDA came in at $3.3 billion, just under the $3.4 billion posted in the same quarter last year. Marathon maintained strong operational efficiency in its refining segment, achieving 97% crude capacity utilization and 105% margin capture.
“Our second quarter results reflect actions we have taken to deliver on our strategic commitments,” said President and CEO Maryann Mannen. “In refining, our team delivered 97% utilization and 105% margin capture; and we remain constructive on the long-term outlook.”
The Refining & Marketing division contributed $1.9 billion in adjusted EBITDA, a slight decline from $2.0 billion a year ago. Refining margins edged up to $17.58 per barrel compared to $17.53 in the prior-year quarter, though operating costs rose to $5.34 per barrel from $4.91.
Marathon’s Midstream segment remained steady, delivering $1.6 billion in adjusted EBITDA, on par with last year, supported by increased throughput and improved rates.
During the quarter, the company returned about $1.0 billion to shareholders, including $692 million through share buybacks. It also finalized the $425 million sale of its stake in an ethanol production joint venture.
Looking ahead, Marathon’s MPLX unit announced a $2.375 billion acquisition of Northwind Midstream, a move aimed at enhancing its footprint in the Permian Basin. For the third quarter, the company anticipates refining operating costs of $5.70 per barrel and total refinery throughput of 2.94 million barrels per day.
Marathon Petroleum Corp stock price
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