Marathon Petroleum beats Q1 adjusted EPS estimates

Overview

• US refiner's Q1 adjusted EPS beat analyst expectations

• Q1 revenue increased yr/yr, supported by higher refining margins

• Company announced new $5 bln share repurchase authorization

Outlook

• Company expects 2Q26 refining operating costs per barrel of $5.65

• Marathon Petroleum sees 2Q26 refinery throughputs at 2,990 mbpd

• Company maintains full-year planned turnaround expense estimate at $1.35 bln

Result Drivers

• HIGHER CRACK SPREADS - Results benefited from higher crack spreads in the Refining & Marketing segment, partially offset by derivative losses

• RENEWABLE DIESEL RECOVERY - Renewable Diesel segment returned to profitability due to stronger margins and recognition of clean fuel production tax credits, despite planned downtime at Martinez Renewables JV

• TURNAROUND ACTIVITY - Increased project-related expenses from accelerated turnaround activity aimed at enhancing operational readiness for elevated market demand

Company press release: ID:nPn7Jbn13a

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 $231.50, about 8.3% below its May 4 closing price of $252.54

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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