MPC - Marathon Petroleum's Q1 profit more than triples on strong demand tight supply

2023-05-02 08:58:14 ET

Marathon Petroleum ( NYSE: MPC ) -0.3% pre-market Tuesday after beating Q1 GAAP earnings expectations, helped by higher margins on sustained fuel demand and tight crude supplies, and raised its stock buyback program by $5B.

Q1 net income more than tripled to $2.72B, or $6.09/share, from $845M, or $1.49/share, in the year-earlier quarter, and adjusted EBITDA doubled to $5.2B from $2.6B a year ago.

Refining & Marketing segment adjusted EBITDA surged to $3.9B, or $15.09/bbl, from $1.4B, or $5.39/bbl, in the same quarter last year, driven by higher Refining & Marketing margins, which jumped to $26.15/bbl from $15.31/bbl in the prior-year period.

Q1 crude capacity utilization fell to 89% from 91% a year earlier, driven by planned maintenance activity in the Gulf Coast region, resulting in Q1 total throughput of 2.8M bbl/day, flat compared with a year ago.

Midstream segment adjusted EBITDA increased to $1.5B from $1.4B in the year-earlier quarter, as growth in throughputs and higher rates more than offset lower natural gas liquids prices.

Q1 revenues fell 8.5% Y/Y to $35.08B from $38.38B, while total costs fell to $31.02B from $36.67B a year earlier.

With the addition of the latest $5B authorization, Marathon Petroleum ( MPC ) has a total of $9B available for stock repurchase.

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