What's Going On With Marathon Petroleum Shares Today?
Portfolio Pulse from Lekha Gupta
Marathon Petroleum Corporation (NYSE:MPC) shares fell after reporting Q1 FY24 results with revenue of $33.211 billion, surpassing estimates but with a decline in adjusted EBITDA to $3.26 billion from $5.22 billion year-over-year. Refining & Marketing segment adjusted EBITDA also dropped significantly due to lower market crack spreads and throughputs. Despite this, adjusted EPS was $2.78, above consensus. The company announced a $5 billion share repurchase authorization, adding to an existing $3.8 billion, and returned $2.2 billion through share repurchases and $299 million via dividends in Q1. MPLX LP (NYSE:MPLX), in which Marathon Petroleum holds a significant interest, reported earnings per limited partner unit of $0.98 on sales of $2.85 billion, missing estimates. MPC shares are down 6.6%.
April 30, 2024 | 3:59 pm
News sentiment analysis
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NEGATIVE IMPACT
Marathon Petroleum reported higher Q1 FY24 revenue but lower adjusted EBITDA and announced a significant share repurchase program.
The decline in adjusted EBITDA and the significant drop in share price indicate a negative short-term impact, despite the revenue beat and share repurchase announcement.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
MPLX LP reported Q1 earnings per limited partner unit of $0.98 on sales of $2.85 billion, missing sales estimates.
Missing sales estimates could negatively impact MPLX's short-term stock performance, reflecting investor concerns over its financial health.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Investors can gain exposure to Marathon Petroleum through the First Trust Nasdaq Oil & Gas ETF.
FTXN, like IEO, provides indirect exposure to MPC. The specific impact of MPC's financial results on FTXN's performance is uncertain, leading to a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Marathon Petroleum through the iShares U.S. Oil & Gas Exploration & Production ETF.
While IEO provides indirect exposure to MPC, the direct impact of MPC's earnings on IEO's performance is less clear, suggesting a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50