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Marathon Q3 Earnings Miss Estimates, Revenues Beat, Expenses Down Y/Y
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Key Takeaways
Q3 revenues climbed 1.3% to $35.8B on stronger sales and higher income from equity investments.
Midstream EBITDA rose 5% to $1.7B, supported by higher throughput and recent acquisitions.
MPC and partners approved the Eiger Express Pipeline to boost Permian-to-Gulf Coast capacity by 2028.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter adjusted earnings per share of $3.01, which missed the Zacks Consensus Estimate of $3.11. This was due to a $56 million charge from the quarterly fair value remeasurement of performance-based stock compensation that reduced earnings per share. However, the company’s bottom line increased significantly from the year-ago adjusted profit of $1.87, primarily driven by a 2.6% year-over-year decline in costs and expenses during the quarter.
Findlay, OH-based oil and gas refining and marketing company reported revenues of $35.8 billion, which beat the Zacks Consensus Estimate of $30.8 billion and increased 1.3% year over year, primarily due to increased sales and other operating revenues and higher income from equity method investments and other income.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
On Oct. 29, MPC's board of directors declared a quarterly dividend of $1 per share to its common shareholders of record on Nov. 19, 2025. The payout, which represents a 10% sequential increase from the previous quarter, will be made on Dec. 10, 2025.
During the third quarter, Marathon Petroleum distributed roughly $926 million to shareholders, while $5.4 billion remained available under its authorized share repurchase programs as of Sept. 30, 2025.
During the quarter, Marathon Petroleum’s midstream segment continued to strengthen its Permian-to-Gulf Coast integrated value chain, as MPLX LP (MPLX - Free Report) and its partners reached a final investment decision on the Eiger Express Pipeline — a natural gas pipeline designed to transport up to 2.5 billion cubic feet per day from the Permian Basin to Katy, TX, with connectivity to Agua Dulce via the Traverse pipeline. The Eiger Express pipeline is expected to begin service in mid-2028.
Inside Marathon Petroleum’s Segments
Refining & Marketing: The Refining & Marketing segment reported adjusted EBITDA of $1.8 billion, up approximately 55.1% from the year-ago figure of $1.1 billion and the figure surpassed the consensus estimate by 2.1%.
The refining margin improved to $17.60 per barrel from $14.63 in the prior-year quarter, primarily reflecting stronger crack spreads. However, the figure missed the consensus estimate by 0.6%. Refining capacity utilization for the quarter was 95%, up from 94% in the year-ago period.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX — a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment adjusted EBITDA rose 5% year over year to $1.7 billion, driven by higher rates and throughputs, along with contributions from recent acquisitions, partially offset by increased operating expenses. Additionally, the figure surpassed the consensus estimate by 2.2%.
MPC’s Financial Analysis
Marathon Petroleum reported expenses of $33.1 billion in the third quarter of 2025, down from $34 billion reported in the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $1.4 billion on capital programs (30.4% on Refining & Marketing and 66.1% on the Midstream segment) compared with $950 million in the year-ago period.
As of Sept. 30, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $2.7 billion and total debt, including that of MPLX, of $32.8 billion, with a debt-to-capitalization of 57.9%.
MPC expects refining operating costs to average $5.80 per barrel in the fourth quarter of 2025. Total refinery throughputs are expected at 2,905 thousand barrels per day (Mbpd), comprising 2,675 Mbpd of crude oil refined and 230 Mbpd of other charge and blendstocks. The company anticipates distribution costs of $1.58 billion, refining planned turnaround expenses of $420 million, and depreciation and amortization (D&A) of $400 million for the period. Corporate costs, including $20 million of D&A, are expected to total $240 million.
MPC’s management anticipates crude utilization of approximately 90%, with the Galveston Bay resid hydrocracker expected to return to full operating capacity by the end of November 2025, enhancing optimization across the Gulf Coast system. Turnaround activities will primarily focus on the West Coast, where MPC is completing its multiyear infrastructure improvement project at the Los Angeles refinery aimed at improving competitiveness, reliability and energy efficiency.
Looking ahead, MPC remains focused on advancing high-return capital projects at its Los Angeles, Robinson and Galveston Bay refineries, which are designed to enhance margins and reduce costs. The company also continues to invest through its Midstream subsidiary MPLX, which is expanding the Permian-to-Gulf Coast integrated value chain with several long-haul pipeline and processing projects expected to drive durable mid-single-digit EBITDA growth.
MPC’s integrated refining, marketing and midstream operations, supported by growing cash distributions from MPLX — expected to total $2.8 billion annually — are anticipated to fund dividends and standalone capital spending, while enabling continued share repurchases and industry-leading capital returns to shareholders.
Important Energy Earnings at a Glance
While we have discussed MPC’s third-quarter results in detail, let us take a look at two other key reports in this space.
Liberty Energy Inc. (LBRT - Free Report) , a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
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Marathon Q3 Earnings Miss Estimates, Revenues Beat, Expenses Down Y/Y
Key Takeaways
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter adjusted earnings per share of $3.01, which missed the Zacks Consensus Estimate of $3.11. This was due to a $56 million charge from the quarterly fair value remeasurement of performance-based stock compensation that reduced earnings per share. However, the company’s bottom line increased significantly from the year-ago adjusted profit of $1.87, primarily driven by a 2.6% year-over-year decline in costs and expenses during the quarter.
Findlay, OH-based oil and gas refining and marketing company reported revenues of $35.8 billion, which beat the Zacks Consensus Estimate of $30.8 billion and increased 1.3% year over year, primarily due to increased sales and other operating revenues and higher income from equity method investments and other income.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
Marathon Petroleum Corporation price-consensus-eps-surprise-chart | Marathon Petroleum Corporation Quote
On Oct. 29, MPC's board of directors declared a quarterly dividend of $1 per share to its common shareholders of record on Nov. 19, 2025. The payout, which represents a 10% sequential increase from the previous quarter, will be made on Dec. 10, 2025.
During the third quarter, Marathon Petroleum distributed roughly $926 million to shareholders, while $5.4 billion remained available under its authorized share repurchase programs as of Sept. 30, 2025.
During the quarter, Marathon Petroleum’s midstream segment continued to strengthen its Permian-to-Gulf Coast integrated value chain, as MPLX LP (MPLX - Free Report) and its partners reached a final investment decision on the Eiger Express Pipeline — a natural gas pipeline designed to transport up to 2.5 billion cubic feet per day from the Permian Basin to Katy, TX, with connectivity to Agua Dulce via the Traverse pipeline. The Eiger Express pipeline is expected to begin service in mid-2028.
Inside Marathon Petroleum’s Segments
Refining & Marketing: The Refining & Marketing segment reported adjusted EBITDA of $1.8 billion, up approximately 55.1% from the year-ago figure of $1.1 billion and the figure surpassed the consensus estimate by 2.1%.
The refining margin improved to $17.60 per barrel from $14.63 in the prior-year quarter, primarily reflecting stronger crack spreads. However, the figure missed the consensus estimate by 0.6%. Refining capacity utilization for the quarter was 95%, up from 94% in the year-ago period.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX — a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment adjusted EBITDA rose 5% year over year to $1.7 billion, driven by higher rates and throughputs, along with contributions from recent acquisitions, partially offset by increased operating expenses. Additionally, the figure surpassed the consensus estimate by 2.2%.
MPC’s Financial Analysis
Marathon Petroleum reported expenses of $33.1 billion in the third quarter of 2025, down from $34 billion reported in the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $1.4 billion on capital programs (30.4% on Refining & Marketing and 66.1% on the Midstream segment) compared with $950 million in the year-ago period.
As of Sept. 30, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $2.7 billion and total debt, including that of MPLX, of $32.8 billion, with a debt-to-capitalization of 57.9%.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
MPC’s Guidance
MPC expects refining operating costs to average $5.80 per barrel in the fourth quarter of 2025. Total refinery throughputs are expected at 2,905 thousand barrels per day (Mbpd), comprising 2,675 Mbpd of crude oil refined and 230 Mbpd of other charge and blendstocks. The company anticipates distribution costs of $1.58 billion, refining planned turnaround expenses of $420 million, and depreciation and amortization (D&A) of $400 million for the period. Corporate costs, including $20 million of D&A, are expected to total $240 million.
MPC’s management anticipates crude utilization of approximately 90%, with the Galveston Bay resid hydrocracker expected to return to full operating capacity by the end of November 2025, enhancing optimization across the Gulf Coast system. Turnaround activities will primarily focus on the West Coast, where MPC is completing its multiyear infrastructure improvement project at the Los Angeles refinery aimed at improving competitiveness, reliability and energy efficiency.
Looking ahead, MPC remains focused on advancing high-return capital projects at its Los Angeles, Robinson and Galveston Bay refineries, which are designed to enhance margins and reduce costs. The company also continues to invest through its Midstream subsidiary MPLX, which is expanding the Permian-to-Gulf Coast integrated value chain with several long-haul pipeline and processing projects expected to drive durable mid-single-digit EBITDA growth.
MPC’s integrated refining, marketing and midstream operations, supported by growing cash distributions from MPLX — expected to total $2.8 billion annually — are anticipated to fund dividends and standalone capital spending, while enabling continued share repurchases and industry-leading capital returns to shareholders.
Important Energy Earnings at a Glance
While we have discussed MPC’s third-quarter results in detail, let us take a look at two other key reports in this space.
Liberty Energy Inc. (LBRT - Free Report) , a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.