Marathon Petroleum Crushes Q2 Estimates as Refining Margins Hit $36.33/Barrel
MPC sits 99% above its 52-week low of $158.
Summary
Marathon Petroleum posted Q2 adjusted EPS of $17.73, smashing the $13.73 consensus by 29%, as the U.S.-Israeli war on Iran choked global fuel supply and sent refining margins to multi-year highs. The refining and marketing margin surged to $36.33 per barrel from $17.58 a year ago, reflecting the effective closure of the Strait of Hormuz and attacks on Middle East refineries. Adjusted EBITDA reached $8.5 billion, driven by stronger margins and midstream demand. This follows a series of operational incidents at the Galveston Bay refinery and a backdrop of record U.S. energy exports, but the earnings beat is driven by the macro supply shock. Shares rose 2% premarket, adding to a year that has seen the stock near its 52-week high. The company's existing $5 billion buyback program and strong cash flow provide additional support.
At the time of this announcement, MPC was trading at $314.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $89.6B. The 52-week trading range was $158.00 to $326.92. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.