Marathon Petroleum Q3 adjusted EPS beats estimates on higher crack spreads

Overview

• US refining and energy firm's Q3 adjusted EPS beat analyst expectations on higher crack spreads

• Q3 net income and revenue rose sharply from a year earlier

• Company announced a 10% dividend increase and new $5 bln share buyback authorization

Outlook

• Marathon Petroleum expects Q4 refining operating costs at $5.60 per barrel

• Company forecasts Q4 refinery crude throughput at 2,830 mbpd

• MPLX plans to invest $2.9 bln in organic growth capital, focused on natural gas and NGL infrastructure

Result Drivers

• HIGHER CRACK SPREADS - Co said results were driven primarily by higher market crack spreads in all regions

• FULL CAPACITY UTILIZATION - Crude capacity utilization reached 100%, resulting in total throughput of 3.2 mln bpd

• RENEWABLE DIESEL MARGINS - Renewable Diesel segment results reflect a stronger margin environment, improved regulatory credit values, and higher throughputs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for Marathon Petroleum Corporation is $459.50, about 6.8% above its November 2 closing price of $430.39

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 2 - S-Oil sees strong Asia refining margins in Q4 on low stocks, heating demand

• Nov 2 - Goldman Sachs raises oil price forecasts, sees Brent upside at $140 a barrel

• Nov 2 - Freed from OPEC quotas, UAE says oil exports have risen as it hosts industry event

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)