Marathon Petroleum Corp (MPC) recently reported its fourth-quarter FY23 results, and the company’s shares are trading higher as a result. The company’s revenue and other income came in at $36.82 billion, beating the consensus estimate of $35.25 billion.
Adjusted EBITDA for the quarter was $3.53 billion, a decrease from $5.80 billion in the prior year quarter. Refining operating costs per barrel were $5.67, slightly higher than the $5.62 reported a year ago. Refining & Marketing refined product sales volume for the quarter increased to 3,612 thousand barrels per day (mbpd) compared to 3,532 mbpd in the previous year. However, crude oil capacity utilization declined to 91% from 94% in the prior-year quarter.
The Refining & Marketing segment’s adjusted EBITDA saw a significant decline due to lower market crack spreads. On the positive side, adjusted earnings per share (EPS) for the quarter came in at $3.98, surpassing the consensus estimate of $2.20.
As of December 31, 2023, Marathon Petroleum had $10.2 billion in cash, cash equivalents, and short-term investments, with an additional $5 billion available on its bank revolving credit facility. During the fourth quarter, the company returned approximately $2.5 billion to shareholders through share repurchases and $311 million via dividends.
Marathon Petroleum continued its share repurchase program into January, repurchasing an additional $0.9 billion of company shares. The company still has approximately $5.9 billion available under its share repurchase authorizations.
Marathon Petroleum also owns the general partner and majority limited partner interest in MPLX LP (MPLX). MPLX reported fourth-quarter earnings per limited partner unit of $1.10, beating the consensus estimate of $0.94. The company’s sales for the quarter amounted to $2.97 billion, surpassing the consensus estimate of $2.88 billion. MPLX returned $3.3 billion of capital to unitholders for the full year, reflecting a 10% quarterly distribution increase for the second consecutive year.
Looking ahead, Marathon Petroleum expects first-quarter refining operating costs per barrel to be $5.85, with refinery throughputs projected to reach 2,685 mbpd.
As of the last check on Tuesday, MPC shares were trading higher by 0.49% at $160.91.
Overall, Marathon Petroleum’s strong financial results and positive outlook for the coming quarter indicate a promising future for the company. With solid cash reserves and ongoing share repurchases, the company is well-positioned to create value for its shareholders.
