Marathon Petroleum Q4 EPS $4.07 Beats Estimates, Margins Soar 44% YoY
Marathon Petroleum reported Q4 adjusted EPS of $4.07, beating forecasts by $1.36, and revenue of $33.42 billion, topping estimates by nearly $3 billion. Refining margins rose to $18.65 per barrel, up 44% YoY, on 95% utilization and record throughput, and analysts lifted price targets to $198.
1. Strong Q4 Financial Performance
Marathon Petroleum reported adjusted earnings of $4.07 per share in Q4, surpassing forecasts by $1.36 and generating revenue of $33.42 billion, nearly $3 billion above expectations. This robust performance fueled a 15.46% share price increase between February 2 and February 9.
2. Elevated Refining Margins and Utilization
The company achieved a refining margin of $18.65 per barrel, a 44% year-over-year increase, while operating its refineries at approximately 95% capacity and processing just over 3 million barrels per day.
3. Record Throughput at Key Refineries
Marathon’s 606,000 bpd Garyville refinery in Louisiana and 253,000 bpd Robinson refinery in Illinois both set monthly crude throughput records, underscoring operational efficiencies and capacity optimization.
4. Analyst Price Target Increases and Crude Acquisitions
TD Cowen raised its price target from $183 to $198, joined by Citi, UBS and Wells Fargo in boosting targets, as Marathon acquired two Venezuelan crude cargoes in late January to support planned heavy-grade processing expansions.