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
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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
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