FINDLAY, Ohio - Marathon Petroleum Corp. (NYSE:MPC) today announced first-quarter earnings that surpassed analyst expectations, with a reported EPS of $2.58, which is $0.07 higher than the analyst estimate of $2.51. The company's revenue for the quarter was also above consensus, coming in at $33.21 billion against an expected $32.01 billion.
Following the earnings release, MPC shares saw a modest increase of +0.49%.
The company's net income attributable to MPC for the first quarter was $937 million, or $2.58 per diluted share, a decrease from the $2.7 billion, or $6.09 per diluted share, reported in the same quarter last year. Despite a challenging quarter that included the largest planned maintenance in the company's history, the adjusted EBITDA stood at $3.3 billion, down from $5.2 billion year-over-year (YoY).
CEO Michael J. Hennigan commented on the quarter's achievements, "In the first quarter, our team safely and successfully completed the largest planned maintenance quarter in MPC history, including at four of our largest refineries." He added, "This positions us to meet the high demand of summer travel season. Additionally, we are advancing our midstream growth strategy through disciplined organic investments and targeted bolt-on acquisitions."
In terms of operations, the Refining & Marketing (R&M) segment adjusted EBITDA was $1.9 billion for the first quarter of 2024, compared to $3.9 billion in the first quarter of the previous year. The decrease was primarily due to lower market crack spreads and lower throughputs. The Midstream segment, however, showed an improvement with adjusted EBITDA increasing to $1.6 billion from $1.5 billion YoY.
Marathon Petroleum also highlighted its return of capital to shareholders, having returned approximately $2.5 billion through share repurchases and dividends in the first quarter. The company announced an additional $5 billion share repurchase authorization, emphasizing its commitment to returning capital to shareholders.
Looking ahead, the company is focusing on strategic growth, including infrastructure investments at its Los Angeles refinery, a new distillate hydrotreater at its Galveston Bay refinery, and midstream projects in the Marcellus and Permian basins. These initiatives are part of MPC's ongoing efforts to enhance operational efficiency and shareholder value.
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