Marathon Petroleum Q3 profit misses estimates

Overview

• Marathon Petroleum Q3 net income rises to $1.4 bln, adjusted EPS misses analyst expectations

• Company reports $3.2 bln adjusted EBITDA, driven by strong Refining & Marketing execution

• Company returns $926 mln to shareholders, announces 10% quarterly dividend increase

Outlook

• Marathon Petroleum expects Q4 refining operating costs of $5.80 per barrel

• Company projects Q4 distribution costs at $1.575 bln

• Marathon Petroleum forecasts Q4 refining planned turnaround costs of $420 mln

Result Drivers

• REFINING & MARKETING - Higher crack spreads and efficient operations drove strong cash generation in Q3

• MIDSTREAM GROWTH - Midstream segment growth driven by higher rates, throughputs, and recent acquisitions

• RENEWABLE DIESEL CHALLENGES - Segment faced negative EBITDA despite increased utilization due to weaker margins

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 Corp is $195.00, about 0.4% above its November 3 closing price of $195.79

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn3v0FpBa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.