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Marathon Q4 Earnings & Revenues Beat Estimates, Expenses Down Y/Y
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Key Takeaways
Marathon Petroleum delivered Q4 adjusted EPS of $4.07, topping estimates, while revenues of $33.4B also beat.
Refining & Marketing EBITDA surged on higher crack spreads, an $18.65 per barrel margin, and 95% utilization.
MPC returned about $1.3B to shareholders in Q4 and ended 2025 with $4.4B left under buybacks.
Marathon Petroleum Corporation (MPC - Free Report) reported fourth-quarter adjusted earnings per share of $4.07, which beat the Zacks Consensus Estimate of $2.73. Moreover, the bottom line increased significantly from the year-ago adjusted profit of 77 cents. The outperformance was driven by stronger-than-expected Refining & Marketing segment performance and a 4.9% year-over-year decline in costs and expenses during the quarter.
Findlay, OH-based oil and gas refining and marketing company reported revenues of $33.4 billion, which beat the Zacks Consensus Estimate of $29.6 billion. However, the top line was slightly down 0.1% year over year, reflecting lower sales and other operating revenues, along with reduced income from equity-method investments.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
The company distributed approximately $1.3 billion to shareholders during the fourth quarter and ended the year with $4.4 billion of capacity remaining under its share repurchase authorizations as of Dec. 31, 2025.
Inside Marathon Petroleum’s Segments
Refining & Marketing: The Refining & Marketing segment reported adjusted EBITDA of $2 billion, up approximately 75.8% from the year-ago figure of $1.1 billion and the figure surpassed the consensus estimate by 26.7%.
The refining margin improved to $18.65 per barrel from $12.93 in the prior-year quarter, primarily reflecting stronger crack spreads. Moreover, the figure beat the consensus estimate by 6.5%. 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 was flat year over year at $1.7 billion, as higher rates, increased throughputs and contributions from recent acquisitions were more than offset by higher operating costs and the divestiture of non-core gathering and processing assets. The figure also missed the consensus estimate by 3.7%.
MPC’s Financial Analysis
Marathon Petroleum reported expenses of $30.7 billion in the fourth quarter of 2025, down from $32.3 billion reported in the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $1.5 billion on capital programs (31% on Refining & Marketing and 67% on the Midstream segment) compared with $921 million in the year-ago period.
As of Dec. 31, 2025, this Zacks Rank #4 (Sell) company had cash and cash equivalents of $3.7 billion and total debt, including that of MPLX, of $32.9 billion, with a debt-to-capitalization of 42.3%.
MPC expects refining operating costs to average approximately $5.85 per barrel in the first quarter of 2026. Total refinery throughputs are projected at about 2,740 thousand barrels per day (Mbpd), consisting of 2,540 Mbpd of crude oil refined and 200 Mbpd of other charge and blendstocks. The company anticipates distribution costs of roughly $1.63 billion, planned refining turnaround expenses of $465 million, and depreciation and amortization (D&A) of $385 million for the quarter. Corporate costs, including $30 million of D&A, are expected to total $240 million.
MPC expects full-year 2026 refining planned turnaround expenses to total approximately $1.35 billion, indicating a decline from 2025 levels. Moreover, the company anticipates further reductions in turnaround spending in both 2027 and 2028 as major projects are completed and maintenance intensity moderates.
The company expects MPLX’s expanding cash distribution to more than cover its 2026 dividend and standalone capital expenditures, further strengthening the differentiated capital return profile.
MPC’s standalone capital spending outlook for 2026, excluding MPLX, is about $1.5 billion. Of this amount, roughly 65% is earmarked for value-enhancing investments, while the remaining 35% is allocated to sustaining capital. Within this total, refining capital expenditures are expected to be approximately $710 million, focused on high-return projects at the Galveston Bay, Garyville, Robinson and El Paso refineries to enhance margins, reliability and cost competitiveness.
In addition, the company expects marketing capital spending of around $250 million to support branded network expansion, alongside maintenance capital of approximately $450 million. At the same time, MPC reaffirmed its capital allocation strategy, targeting a net debt-to-capital of 25% to 30% and maintaining an annual cash balance of about $1 billion.
Looking ahead, management expects distributions from MPLX to fully fund MPC’s dividends and standalone capital spending in 2026. As a result, the company plans to return all excess free cash flow, after business needs, to its shareholders through continued capital returns.
Important Earnings at a Glance
While we have discussed MPC’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products,posted fourth-quarter 2025 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.22. The bottom line improved from the year-ago quarter’s level of 64 cents. The better-than-expected quarterly results can be mainly attributed to a surge in refining margins, higher ethanol production volumes and lower total cost of sales.
Valero Energy had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2025, it had a total debt of $8.3 billion and finance-lease obligations of $2.4 billion.
Houston, TX-based Baker Hughes Company (BKR - Free Report) , an oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
Baker Hughes Company’s net capital expenditure in the fourth quarter was $321 million. As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.
Another Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.
Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash and cash equivalents, and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.
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Marathon Q4 Earnings & Revenues Beat Estimates, Expenses Down Y/Y
Key Takeaways
Marathon Petroleum Corporation (MPC - Free Report) reported fourth-quarter adjusted earnings per share of $4.07, which beat the Zacks Consensus Estimate of $2.73. Moreover, the bottom line increased significantly from the year-ago adjusted profit of 77 cents. The outperformance was driven by stronger-than-expected Refining & Marketing segment performance and a 4.9% year-over-year decline in costs and expenses during the quarter.
Findlay, OH-based oil and gas refining and marketing company reported revenues of $33.4 billion, which beat the Zacks Consensus Estimate of $29.6 billion. However, the top line was slightly down 0.1% year over year, reflecting lower sales and other operating revenues, along with reduced income from equity-method investments.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
Marathon Petroleum Corporation price-consensus-eps-surprise-chart | Marathon Petroleum Corporation Quote
The company distributed approximately $1.3 billion to shareholders during the fourth quarter and ended the year with $4.4 billion of capacity remaining under its share repurchase authorizations as of Dec. 31, 2025.
Inside Marathon Petroleum’s Segments
Refining & Marketing: The Refining & Marketing segment reported adjusted EBITDA of $2 billion, up approximately 75.8% from the year-ago figure of $1.1 billion and the figure surpassed the consensus estimate by 26.7%.
The refining margin improved to $18.65 per barrel from $12.93 in the prior-year quarter, primarily reflecting stronger crack spreads. Moreover, the figure beat the consensus estimate by 6.5%. 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 was flat year over year at $1.7 billion, as higher rates, increased throughputs and contributions from recent acquisitions were more than offset by higher operating costs and the divestiture of non-core gathering and processing assets. The figure also missed the consensus estimate by 3.7%.
MPC’s Financial Analysis
Marathon Petroleum reported expenses of $30.7 billion in the fourth quarter of 2025, down from $32.3 billion reported in the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $1.5 billion on capital programs (31% on Refining & Marketing and 67% on the Midstream segment) compared with $921 million in the year-ago period.
As of Dec. 31, 2025, this Zacks Rank #4 (Sell) company had cash and cash equivalents of $3.7 billion and total debt, including that of MPLX, of $32.9 billion, with a debt-to-capitalization of 42.3%.
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 approximately $5.85 per barrel in the first quarter of 2026. Total refinery throughputs are projected at about 2,740 thousand barrels per day (Mbpd), consisting of 2,540 Mbpd of crude oil refined and 200 Mbpd of other charge and blendstocks. The company anticipates distribution costs of roughly $1.63 billion, planned refining turnaround expenses of $465 million, and depreciation and amortization (D&A) of $385 million for the quarter. Corporate costs, including $30 million of D&A, are expected to total $240 million.
MPC expects full-year 2026 refining planned turnaround expenses to total approximately $1.35 billion, indicating a decline from 2025 levels. Moreover, the company anticipates further reductions in turnaround spending in both 2027 and 2028 as major projects are completed and maintenance intensity moderates.
The company expects MPLX’s expanding cash distribution to more than cover its 2026 dividend and standalone capital expenditures, further strengthening the differentiated capital return profile.
MPC’s standalone capital spending outlook for 2026, excluding MPLX, is about $1.5 billion. Of this amount, roughly 65% is earmarked for value-enhancing investments, while the remaining 35% is allocated to sustaining capital. Within this total, refining capital expenditures are expected to be approximately $710 million, focused on high-return projects at the Galveston Bay, Garyville, Robinson and El Paso refineries to enhance margins, reliability and cost competitiveness.
In addition, the company expects marketing capital spending of around $250 million to support branded network expansion, alongside maintenance capital of approximately $450 million. At the same time, MPC reaffirmed its capital allocation strategy, targeting a net debt-to-capital of 25% to 30% and maintaining an annual cash balance of about $1 billion.
Looking ahead, management expects distributions from MPLX to fully fund MPC’s dividends and standalone capital spending in 2026. As a result, the company plans to return all excess free cash flow, after business needs, to its shareholders through continued capital returns.
Important Earnings at a Glance
While we have discussed MPC’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products,posted fourth-quarter 2025 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.22. The bottom line improved from the year-ago quarter’s level of 64 cents. The better-than-expected quarterly results can be mainly attributed to a surge in refining margins, higher ethanol production volumes and lower total cost of sales.
Valero Energy had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2025, it had a total debt of $8.3 billion and finance-lease obligations of $2.4 billion.
Houston, TX-based Baker Hughes Company (BKR - Free Report) , an oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
Baker Hughes Company’s net capital expenditure in the fourth quarter was $321 million. As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.
Another Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.
Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash and cash equivalents, and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.