U.S. Refiner Marathon Petroleum Beats Q4 Profit Estimates on Midstream, Renewable Diesel Strength
Marathon Petroleum, a leading U.S. refiner, surpassed market expectations for its fourth-quarter profit driven by robust performance in its midstream and renewable diesel segments.
Midstream Segment Surges
The company's midstream segment posted an adjusted core profit of $1.71 billion, a notable increase from $1.57 billion in the previous year. This growth is primarily attributed to the accretive contributions of recently acquired Utica and Permian basins assets.
Refining Margin Declines
Despite the midstream gains, Marathon Petroleum's refining and marketing margin witnessed a decline to $12.93 per barrel in the quarter, compared to $17.81 per barrel a year earlier. U.S. refinery margins have faced significant pressure and averaged lower than in the prior year.
Earnings Beat Estimates
On an adjusted basis, Marathon Petroleum reported a quarterly profit of 77 cents per share, outperforming the analysts' consensus estimate of 2 cents per share (LSEG).