Marathon Petroleum Q4 revenue and EPS beat estimates

Overview

• Energy company's Q4 revenue and adjusted EPS beat analyst expectations

• Refining & Marketing segment Q4 adjusted EBITDA rises, driven by higher crack spreads

• Company returned $1.3 bln of capital to shareholders in Q4

Outlook

• Marathon Petroleum projects 2026 standalone capital spending at $1.5 bln, excluding MPLX

• MPLX plans $2.7 bln capital spending in 2026, focusing 90% on growth capital

• Company aims to complete Garyville feedstock optimization by year-end 2027

Result Drivers

• HIGHER CRACK SPREADS - Refining & Marketing segment Q4 adjusted EBITDA rose significantly due to higher crack spreads

• MIDSTREAM STABILITY - Midstream segment maintained steady EBITDA with higher rates and throughputs offset by increased expenses and asset divestitures

• WEAKER RENEWABLE DIESEL MARGINS - Renewable Diesel segment saw a decline in EBITDA due to weaker margins despite increased utilization

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", 10 "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 $200.00, about 13.1% above its February 2 closing price of $176.91

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPnbkZybSa

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