Company Reports

The combination of Marathon and Andeavor created the largest US refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

Narrow-moat Marathon Petroleum's first-quarter 2024 earnings fell to $937 million from $2.7 billion a year ago, far surpassing market expectations.

The combination of Marathon and Andeavor created the largest US refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

Narrow-moat Marathon Petroleum's fourth-quarter 2023 adjusted earnings fell to $1.5 billion from $3.1 billion a year ago, but blew past market expectations on stronger-than-expected margin capture rates.

The combination of Marathon and Andeavor created the largest U.S. refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

Marathon Petroleum's third-quarter adjusted earnings fell to $3.2 billion from $3.9 billion a year ago, exceeding market expectations. Refining market conditions weakened from record levels a year ago, but remain at relatively strong levels and well above our midcycle assumptions. Refining and marketing operating income fell to $3.8 billion from $4.6 billion the year before on weaker realized refining margins, which fell to $26.16/barrel from $30.21/bbl. Costs fell to $5.14/bbl from $5.63/bbl last year on lower energy costs. Capture utilization rates slipped to 93% during the quarter on secondary product headwinds and unplanned downtime that offset the benefits of improvements in commercial operations. However, nothing structurally occurred that should impede a recovery in future quarters.

The combination of Marathon and Andeavor created the largest U.S. refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

Marathon Petroleum's second-quarter adjusted earnings fell to $2.2 billion from $5.7 billion a year ago, exceeding market expectations, as refining market conditions weakened from record levels a year ago.

The combination of Marathon and Andeavor created the largest U.S. refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

Marathon Petroleum's first-quarter earnings increased to $2.7 billion from $845 million a year ago, exceeding market expectations, thanks largely to strong market conditions and continued strong operating performance.

The combination of Marathon and Andeavor created the largest U.S. refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

During the fourth quarter, Marathon Petroleum was able to capitalize on favorable market conditions and a strong operating performance to increase adjusted earnings to $3.1 billion from $794 million a year ago, exceeding market expectations.

The combination of Marathon and Andeavor created the largest U.S. refiner with facilities in the midcontinent, Gulf Coast, and West Coast. Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost while also improving its operating cost structure.

Marathon Petroleum turned in another quarter of strong operations that maximized the benefit for highly favorable market conditions, increasing adjusted earnings to $3.9 billion from $464 million a year ago, exceeding market expectations.

Second-quarter refining results produced a round of record profits after margins soared during the quarter. Although that will probably prove a peak as margins have since softened on concerns about weakening demand, they remain at relatively high levels, implying that strong, above-midcycle profits will continue. Refiners have been focused on reducing debt to prepandemic levels and have largely done so, thanks to the strong market. As such, we expect shareholder returns to increase in the second half of the year and stay robust into 2023 as the refining market remains strong.

The combination of Marathon and Andeavor created the U.S.' largest refiner with facilities in the Midcontinent, Gulf Coast, and West Coast. Through the combination, Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost, while also improving its operating cost structure.

Marathon Petroleum ran well during the second quarter to capitalize on robust marketing conditions, increasing adjusted earnings to $5.7 billion from $437 million a year ago. Adjusted EBITDA, excluding discontinued Speedway earnings from 2021, improved to $9.1 billion from $1.9 billion a year ago.

Marathon Petroleum turned in another strong quarter with earnings improving to $845 million from a loss of $242 million a year ago on an improved refining market. Adjusted EBITDA, excluding discontinued Speedway earnings from 2021, improved to $2.6 billion from $1.6 billion a year ago.

We have increased our fair value estimates for the independent refiners under our coverage. After our update, HF Sinclair trades at the largest discount at 0.92 price/fair value, followed by Phillips 66 (0.93), Marathon Petroleum (1.05), and then Valero (1.16). Shares have performed strongly, up an average of 30% year to date given strong demand and improved margins. U.S. refiners have been a beneficiary of the fallout from the Russian invasion of Ukraine as restrictions on Russian crude and product exports have resulted in tight global product inventories, particularly distillate. Also, higher global natural gas prices, a key input to the refining process, have improved U.S. refiners’ relative competitiveness even as domestic natural gas prices have soared to their highest level in almost 14 years. Operating cost is relative and we expect the U.S. to remain at the low end of the cost curve even as it shifts higher globally. Meanwhile, RIN prices have waned since the start of the year, relaxing a headwind of the last few years. Our moat ratings are unchanged.

The combination of Marathon and Andeavor created the U.S.' largest refiner with facilities in the Midcontinent, Gulf Coast, and West Coast. Through the combination, Marathon planned to leverage this geographically diverse footprint to optimize its crude supply from North America to reduce feedstock cost, while also improving its operating cost structure.