| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
MPC Stock Overview
Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company primarily in the United States.
Marathon Petroleum Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$95.79 |
| 52 Week High | US$114.35 |
| 52 Week Low | US$53.47 |
| Beta | 1.76 |
| 1 Month Change | 13.47% |
| 3 Month Change | -1.80% |
| 1 Year Change | 64.08% |
| 3 Year Change | 100.36% |
| 5 Year Change | 93.71% |
| Change since IPO | 391.23% |
Recent News & Updates
Need To Know: Analysts Are Much More Bullish On Marathon Petroleum Corporation (NYSE:MPC) Revenues
Marathon Petroleum Corporation ( NYSE:MPC ) shareholders will have a reason to smile today, with the analysts making...
Marathon Petroleum: An Impressive Quarter But No Dividend Increase
Marathon Petroleum reported a total income of $54.24 billion in the second quarter of 2022, up 81.84% from the same quarter a year ago and up 41.4% sequentially. The operating income from the Refining & Marketing and the Midstream units totaled $7,134 million and $1.072 billion, respectively, exceeding expectations. I suggest waiting for a retracement between $88.5 and $87.5 to accumulate again with potential lower support at $79.15. Introduction The independent US refiner and marketer, Ohio-based Marathon Petroleum (MPC), released its second-quarter 2022 results on August 2, 2022. Note: I have followed MPC quarterly since 2018 with 15 articles and counting. This new article is a quarterly update of my article published on June 23, 2022. 1 - 2Q22 results snapshot Marathon Petroleum reported a better-than-expected adjusted income of $10.61 per share for the second quarter. Net income was $5,873 million compared to $8,512 million in 2Q21. Revenues increased significantly from $29.83 billion last year to $54.24 billion. MPC 2Q22 highlights (Marathon Petroleum Presentation) The company's results were positively impacted by a stronger-than-expected performance from the Refining & Marketing and the Midstream segments, with income totaling a whopping $7,134 million and $1,128 million (please see the chart below). MPC Quarterly operating income 2Q21 versus 2Q22 (Fun Trading) 2 - Stock performance I recommend following the VanEck Vectors Oil Refiners ETF (CRAK) for investors interested in the refining sector. Marathon Petroleum has significantly outperformed [[PSX]] and CRAK and is up 57% on a one-year basis. However, it is down from its record established in June. The best performer in this segment is VLO. Data by YCharts 3 - Investment thesis Valero Energy (VLO) has been my long-term first choice in this segment. However, I consider Marathon Petroleum an equal opportunity. The war in Ukraine and the geopolitical uncertainty we have experienced since the start of 2022 have created perfect conditions for the refiners to thrive and prosper. You will probably agree after reading my article. Elevated oil prices and supply disruptions have created a favorable environment for the refining world until now. However, this booming commodity cycle is fueling record inflation not seen for decades and prompted the Fed to hike interest rates twice recently by 75-point and potentially another 75-point soon. The issue is that oil prices have decreased considerably from their peak earlier this year, with the West Texas Intermediate futures falling below $90 per barrel, causing inflation to weaken. However, the core number is not moving down at the same rate and will create a long time to correct, which may trigger a severe recession that some analysts are predicting before the end of 2022. This situation threatens the refining world because a recession will significantly affect demand. Thus, it is prudent to trade LIFO about 30% of your long-term position in case of a steep retracement if the market gets spooked by an imminent recession. By the way, keeping a long-term holding makes sense because MPC pays a dividend yield of 2.57%, which is not negligible but a little low compared to its peers. MPC Dividend comparison with PSX and VLO (Fun Trading) 4 - Margins by Region Marathon Petroleum declared a global R&M margin of $35.54 per Bbl based on throughput per region. Margins were astronomical this quarter. Details below: Gulf Coast Mid Continent West Coast Total $35.60/per Bbl $37.30/per Bbl $42.78/per Bbl $35.54/per Bbl Below is the chart indicating the revenues and the net income for the first quarter for Marathon Petroleum, Valero Energy, and Phillips 66. Marathon Petroleum - Financials History: The Raw Numbers - First Quarter 2022 Marathon Petroleum 2Q21 3Q21 4Q21 1Q22 2Q22 Total Revenues in $ Billion 29.62 32.32 35.34 38.06 53.80 Total Revenues and others in $ Billion 29.83 32.61 35.61 38.38 54.24 Net Income available to common shareholders in $ Million 8,512 694 774 845 5,873 EBITDA $ Million 1,782 2,161 2,463 2,546 9,134 EPS diluted in $/share 13.00 1.09 1.27 1.49 10.95 Operating cash flow in $ Million 1,380 -1,148 3,674 2,513 6,952 CapEx in $ Million 302 377 481 495 498 Free Cash Flow in $ Million 1,078 -1,525 3,193 2,018 6,454 Total Cash $ Billion 17.26 13.23 10.84 10.60 13.32 Debt Consolidated in $ Billion 28.32 27.34 25.54 26.71 26.77* Dividend per share in $ 0.58 0.58 0.58 0.58 0.58 Shares Outstanding (Diluted) in Million 654 637 605 568 536 Operating Income per Segment in $ million 2Q21 3Q21 4Q21 1Q22 2Q22 Refining & Marketing 224 509 881 768 7,134 Midstream 977 1,042 1,070 1,072 1,126 Items not allocated in Segment -180 -186 -173 -161 68 Source: Company News * MPC debt is $6,999 million, and MPLX debt is 19,775 million. Analysis: Earnings Details 1 - Revenues and other income were $54.24 billion in 2Q22 MPC Quarterly Revenues history (Fun Trading) Note: Basic Revenues were $53,795 million. Marathon Petroleum reported a total income of $54.24 billion in the second quarter of 2022, up 81.84% from the same quarter a year ago and up 41.4% sequentially. Net income was $5,873 million or $10.95 per diluted share compared to $8,512 million in 2Q21, and adjusted net income was $5.7 billion, or $10.61 per diluted share. MPC reported adjusted earnings of $10.61 per share, beating analysts' expectations. The operating income from the Refining & Marketing and the Midstream units totaled $7,134 million and $1.072 billion, respectively, exceeding expectations. It was a great quarter. In the press release: R&M margin was $37.54 per barrel for the second quarter of 2022, versus $12.45 per barrel for the second quarter of 2021. Crude capacity utilization was approximately 100%, resulting in total throughput of 3.1 million barrels per day for the second quarter of 2022. This compares to crude capacity utilization of approximately 94% for the second quarter of 2021, which resulted in total throughput of 2.9 million barrels per day. 1. 1 - Refining & Marketing: The company reported an operating income of $7,134 million compared to $224 million in the same quarter a year ago. The significant improvement was due to higher year-over-year margins and throughputs. The refining margin was $35.54 per barrel in 2Q22 from $12.45 a year ago. Below is the Refinery margins history: MPC Quarterly Refinery Margins History (Fun Trading) 1.2 - Midstream: Marathon Petroleum's general and limited majority partners are MPLX (MPLX). Segment profitability was $1,126 million, up 15.3% from $977 in 2Q21. MPLX has largely underperformed MPC on a one-year basis. However, the company is now paying a high dividend yield of 9.35%. CFO Maryann Mannen said in the conference call: MPLX remains a source of durable earnings in the MPC portfolio. As MPLX continues to generate free cash flow, we believe it will have the capacity to return significant capital to its unitholders. Today, MPLX announced an incremental $1 billion unit repurchase authorization. MPC data by YCharts 2 - 3Q22 Outlook slightly weakening MPC 3Q22 outlook (Marathon Petroleum Presentation) CFO Maryann Mannen said in the conference call: We expect crude throughput volumes of roughly 2.7 million barrels per day representing 94% utilization. Utilization is forecasted to be lower than second quarter due to higher planned turnaround activity. Planned turnaround expense is projected to be approximately $400 million in the third quarter with activity spread across all 3 regions. 3 - Free cash flow was $6,454 million in 2Q22 MPC Quarterly Free cash flow history (Fun Trading) Note: Generic free cash flow is the cash from operations minus CapEx. The company has a different way of calculating it.
Shareholder Returns
| MPC | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | 6.0% | 4.8% | 3.6% |
| 1Y | 64.1% | 58.5% | -9.6% |
Return vs Industry: MPC exceeded the US Oil and Gas industry which returned 58.4% over the past year.
Return vs Market: MPC exceeded the US Market which returned -10.2% over the past year.
Price Volatility
| MPC volatility | |
|---|---|
| MPC Average Weekly Movement | 6.0% |
| Oil and Gas Industry Average Movement | 8.8% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: MPC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: MPC's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 17,700 | Mike Hennigan | https://www.marathonpetroleum.com |
Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company primarily in the United States. It operates in two segments, Refining & Marketing, and Midstream. 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; and purchases refined products and ethanol for resale.
Marathon Petroleum Corporation Fundamentals Summary
| MPC fundamental statistics | |
|---|---|
| Market Cap | US$47.76b |
| Earnings (TTM) | US$8.18b |
| Revenue (TTM) | US$160.24b |
5.8x
P/E Ratio0.3x
P/S RatioIs MPC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MPC income statement (TTM) | |
|---|---|
| Revenue | US$160.24b |
| Cost of Revenue | US$141.02b |
| Gross Profit | US$19.22b |
| Other Expenses | US$11.04b |
| Earnings | US$8.18b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 16.41 |
| Gross Margin | 11.99% |
| Net Profit Margin | 5.11% |
| Debt/Equity Ratio | 77.7% |
How did MPC perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield17%
Payout RatioDoes MPC pay a reliable dividends?
See MPC dividend history and benchmarks| Marathon Petroleum dividend dates | |
|---|---|
| Ex Dividend Date | Aug 16 2022 |
| Dividend Pay Date | Sep 12 2022 |
| Days until Ex dividend | 1 day |
| Days until Dividend pay date | 26 days |
Does MPC pay a reliable dividends?
See MPC dividend history and benchmarks