We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marathon Petroleum (MPC) Q2 Earnings Shine on Higher Margins
Read MoreHide Full Article
Independent oil refiner and marketer Marathon Petroleum Corporation (MPC - Free Report) reported strong second-quarter results on higher fuel margin and rising income from its midstream division.
The company – which is set to acquire Andeavor in a $23.3 billion deal – said earnings per share came in at $2.27, well ahead of the Zacks Consensus Estimate of $1.98 and the year-ago period's bottom-line figure of $1.03. Specifically, refining margin of $15.40 per barrel increased versus $11.32 a year ago.
Marathon Petroleum’s revenues of $22,445 million came above the Zacks Consensus Estimate of $20,278 million and improved 22.3% year over year.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
Refining & Marketing: Operating profit from the Refining & Marketing segment was $1,025 million compared with $562 million in the year-ago quarter. The improvement reflects positive crack spreads and wider crude differentials.
Total refined product sales volumes were 2,404 thousand barrels per day (mbpd), up from the 2,370 mbpd in the year-ago quarter. Moreover, throughput edged up from 2,023 mbpd in the year-ago quarter to 2,038 mbpd.Capacity utilization, at 99.9%, was down from 102.6% in the second quarter of 2017.
Speedway: Income from the Speedway retail stations totaled $159 million, down 33.2% from the year-ago period. The segment results were impacted by decline in light product (gasoline and distillate) margins and higher operating expense.
Midstream: This unit includes Marathon Petroleum’s 100% interest in MPLX L.P. (MPLX - Free Report) , a publicly-traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment profitability was $617 million, up from $332 million in the second quarter of 2017. Earnings were buoyed by strength in volumes gathered, processed and fractionated. The unit was further aided by the addition of refining logistics assets and fuels distribution services from sponsor Marathon Petroleum.
Total Expenses
Marathon Petroleum – which spun off from Marathon Oil Corp. (MRO - Free Report) in 2011 – reported expenses of $20,734 million in second-quarter 2018, 19.4% higher than the year-ago quarter.
Capital Expenditure, Balance Sheet & Share Repurchase
In the reported quarter, Zacks Rank #3 (Hold) Marathon Petroleum spent $918 million on capital programs (65% on the Midstream segment). As of Jun 30, the company had cash and cash equivalents of $4,999 million and total debt of $17,267 million, with a debt-to-capitalization ratio of 47%.
During the quarter under review, Marathon Petroleum returned $1,100 million of capital to shareholders, including $885 million in share repurchases.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Marathon Petroleum (MPC) Q2 Earnings Shine on Higher Margins
Independent oil refiner and marketer Marathon Petroleum Corporation (MPC - Free Report) reported strong second-quarter results on higher fuel margin and rising income from its midstream division.
The company – which is set to acquire Andeavor in a $23.3 billion deal – said earnings per share came in at $2.27, well ahead of the Zacks Consensus Estimate of $1.98 and the year-ago period's bottom-line figure of $1.03. Specifically, refining margin of $15.40 per barrel increased versus $11.32 a year ago.
Marathon Petroleum’s revenues of $22,445 million came above the Zacks Consensus Estimate of $20,278 million and improved 22.3% year over year.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
Marathon Petroleum Corporation Price, Consensus and EPS Surprise | Marathon Petroleum Corporation Quote
Segmental Performance
Refining & Marketing: Operating profit from the Refining & Marketing segment was $1,025 million compared with $562 million in the year-ago quarter. The improvement reflects positive crack spreads and wider crude differentials.
Total refined product sales volumes were 2,404 thousand barrels per day (mbpd), up from the 2,370 mbpd in the year-ago quarter. Moreover, throughput edged up from 2,023 mbpd in the year-ago quarter to 2,038 mbpd.Capacity utilization, at 99.9%, was down from 102.6% in the second quarter of 2017.
Speedway: Income from the Speedway retail stations totaled $159 million, down 33.2% from the year-ago period. The segment results were impacted by decline in light product (gasoline and distillate) margins and higher operating expense.
Midstream: This unit includes Marathon Petroleum’s 100% interest in MPLX L.P. (MPLX - Free Report) , a publicly-traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment profitability was $617 million, up from $332 million in the second quarter of 2017. Earnings were buoyed by strength in volumes gathered, processed and fractionated. The unit was further aided by the addition of refining logistics assets and fuels distribution services from sponsor Marathon Petroleum.
Total Expenses
Marathon Petroleum – which spun off from Marathon Oil Corp. (MRO - Free Report) in 2011 – reported expenses of $20,734 million in second-quarter 2018, 19.4% higher than the year-ago quarter.
Capital Expenditure, Balance Sheet & Share Repurchase
In the reported quarter, Zacks Rank #3 (Hold) Marathon Petroleum spent $918 million on capital programs (65% on the Midstream segment). As of Jun 30, the company had cash and cash equivalents of $4,999 million and total debt of $17,267 million, with a debt-to-capitalization ratio of 47%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the quarter under review, Marathon Petroleum returned $1,100 million of capital to shareholders, including $885 million in share repurchases.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>