MPC - Marathon Petroleum targets 2023 capital spending dropping to $1.3B

Marathon Petroleum ( NYSE: MPC ) +0.9% in Tuesday's trading after easily beating expectations for Q4 adjusted earnings , as refining margins soared on tight supplies and higher demand for refined products.

Q4 net income more than quadrupled to $3.3B, or $7.09/share, from $774M, or $1.27/share, in the year-earlier quarter, while total revenues rose 12.6% Y/Y to $40.1B.

Q4 adjusted EBITDA totaled $5.8B, with EBITDA in the refining and marketing segment surging to $4.6B from $1.5B a year earlier, as R&M margin jumped to $28.82/bbl from $15.88/bbl in the same period last year.

Q4 crude capacity utilization was 94%, resulting in total throughput of 2.9M bbl/day, roughly flat Y/Y.

The company also approved a $5B stock buyback; in November , it raised the quarterly dividend by 30%.

Marathon Petroleum ( MPC ) said it expects lower capital spending in 2023 of $1.3B, with ~40% of growth capital targeting low-carbon projects.

The company said the Martinez Renewable Fuels facility is on track to reach full Phase 1 production capacity of 260M gal/year of renewable fuels by the end of Q1.

Marathon Petroleum ( MPC ) shares have gained 16.5% so far this year and 80% during the past year .

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