Marathon Petroleum Refining Margins Fall Drags Q1 Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2025
0mins
Should l Buy MPC?
Source: Benzinga
First Quarter Financial Results: Marathon Petroleum Corporation reported first-quarter revenues of $31.85 billion, exceeding expectations, while adjusted EPS loss was $(0.24), better than the consensus estimate of $(0.53). The refining segment saw a decline in adjusted EBITDA to $489 million due to lower market crack spreads.
Shareholder Returns and Outlook: The company returned approximately $1.3 billion to shareholders through buybacks and declared a quarterly dividend of $0.91 per share. For the second quarter, it anticipates refining operating costs per barrel of $5.30 and refinery throughputs of 2,945 mbpd.
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Analyst Views on MPC
Wall Street analysts forecast MPC stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 243.910
Low
184.00
Averages
201.50
High
213.00
Current: 243.910
Low
184.00
Averages
201.50
High
213.00
About MPC
Marathon Petroleum Corporation is an integrated, downstream energy company. The Company’s segments include Refining & Marketing, Midstream and Renewable Diesel. The Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States. It sells refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, and to independent entrepreneurs who operate primarily Marathon branded outlets. The Midstream segment gathers, transports, stores and distributes crude oil, refined products, including renewable diesel, and other hydrocarbon-based products, principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, and others. The Renewable Diesel segment processes renewable feedstocks into renewable diesel, markets renewable diesel and distributes renewable products through its Midstream segment and third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Webcast Availability: Interested parties can listen to the conference call by visiting Marathon Petroleum's website, and a replay of the webcast will be available for two weeks post-event, allowing investors who cannot attend live to catch up.
- Financial Information Release: Prior to the call and webcast, Marathon Petroleum will provide financial information online, including the earnings release and other investor-related materials, ensuring that investors have timely access to the latest financial data.
- Company Background: Marathon Petroleum is a leading integrated energy company headquartered in Findlay, Ohio, operating the largest refining system in the U.S. and maintaining a network of branded retail outlets nationwide, highlighting its strong market position in the energy sector.
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- Financial Information Release: Prior to the call and webcast, Marathon Petroleum will provide financial information online, including the earnings release and other investor-related materials, ensuring that investors have timely access to the latest financial data.
- Company Background: Marathon Petroleum is a leading integrated energy company headquartered in Findlay, Ohio, operating the largest refining system in the U.S. and maintaining a network of branded retail outlets nationwide, highlighting its strong market position in the energy sector.
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- Rising Diesel Prices: Diesel prices have soared over 40% to $5.37 per gallon, impacting the transportation sector, with the Energy Secretary indicating plans to boost diesel supply to meet market demand.
- Regulatory Flexibility: The EPA has also suspended certain state fuel requirements, allowing the production and distribution of gasoline with ethanol content between 9% and 15%, demonstrating the government's adaptability and responsiveness in addressing the energy crisis.
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- Appeal Plans: A Meta spokesperson stated that the company intends to appeal the verdict, indicating dissatisfaction with the legal outcome, which may lead to increased future legal costs and affect the company's reputation.
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- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
- International Tensions: Reports of Saudi Arabia and the UAE aligning with the Iran conflict have heightened market anxiety, as investors are closely monitoring the potential for increased US military deployment, which could escalate tensions and affect global market stability.
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