Marathon Petroleum Tops Q4 Estimates Despite Lower Refining Margins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2025
0mins
Should l Buy MPC?
Source: Benzinga
Fourth Quarter Financial Performance: Marathon Petroleum Corporation reported fourth-quarter revenues of $33.47 billion, exceeding expectations, but adjusted EBITDA fell to $2.12 billion from $3.57 billion a year prior. The company returned approximately $1.6 billion to shareholders through share repurchases and dividends.
Future Outlook and Capital Expenditure: For 2025, Marathon Petroleum anticipates standalone capital spending of $1.25 billion and MPLX's capital expenditure of $2.0 billion, with refining operating costs projected at $5.70 per barrel for the first quarter.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MPC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MPC
Wall Street analysts forecast MPC stock price to rise
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 198.020
Low
184.00
Averages
201.50
High
213.00
Current: 198.020
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.
Oil Refiners Experience a Golden Era
- Refining Profits Surge: Oil refiners are experiencing significant profit increases due to falling crude costs and rising product demand, with Marathon Petroleum reporting a margin of $18.65 per barrel in Q4, a 50% increase year-over-year.
- Strong Market Demand: Global liquid fuel consumption is projected to rise by 1.2 million barrels per day in 2026, driven by increased manufacturing, trucking, and air travel, which will further enhance refiners' market positions.
- Declining Crude Prices: The EIA forecasts that Brent crude will average $58 per barrel in 2026, down from $69 in 2025, providing refiners with lower input costs and potentially higher margins.
- Optimistic Investment Outlook: Given the current market dynamics, refining stocks have shown impressive performance with a year-to-date return of 25% in 2026, making a modest investment a potentially lucrative opportunity for investors.
See More
Oil Refiners Soar in 2026: Investment Insights
- Refining Margins Surge: In 2026, refiners like Marathon Petroleum reported a margin of $18.65 per barrel, a 50% increase year-over-year, indicating strong profitability in the refining sector amidst falling crude prices, which is likely to attract more investor interest.
- Demand Growth vs. Capacity Constraints: Despite forecasts of declining crude prices, the EIA projects a 1.2 million barrels per day increase in liquid fuel consumption in 2026, driving demand for gasoline, diesel, and jet fuel beyond refining capacity, thereby enhancing profit margins for refiners.
- Strong Market Performance: As of February 11, 2026, stocks of Marathon Petroleum, Phillips 66, and Valero Energy have risen 28%, 25%, and 25% year-to-date, significantly outperforming the S&P 500's 1.6% increase, reflecting robust market confidence in the refining industry.
- Optimistic Future Outlook: While risks such as Middle Eastern conflicts or economic recessions exist, refining stocks are seen as having further upside potential, making a $1,000 investment at this time potentially lucrative, especially given the positive industry outlook.
See More
Oil Price Drop Fuels Refining Stocks Surge
- Optimistic Refining Outlook: The drop in crude oil prices has led to Marathon Petroleum achieving a fourth-quarter profit margin of $18.65 per barrel, approximately 50% higher than the previous year, indicating strong profitability and market demand for refiners.
- Sustained Demand Growth: Global liquid fuel consumption is projected to increase by 1.2 million barrels per day in 2026 and another 1.3 million barrels per day in 2027, primarily driven by manufacturing, trucking, and air travel, further solidifying the refining sector's market position.
- Significant Margin Increases: The 3-2-1 crack spread rose about 45% in the fourth quarter, indicating expanded profit margins for refiners, with Phillips 66's margin doubling to $12.48 per barrel and Valero's margin climbing 61%, reflecting a robust industry recovery.
- Positive Future Outlook: Despite risks from potential Middle East conflicts or economic recessions, crude prices are expected to continue falling, with the EIA forecasting an average Brent crude price of $58 per barrel in 2026, which bodes well for refiners and their shareholders.
See More
PBF Energy Reports Surprise Profit in Q4 Amid Supply Disruptions
- Surprise Profit: PBF Energy reported an adjusted profit of $0.49 per share in Q4, surpassing estimates of a $0.10 loss, indicating a significant rebound in refining margins due to supply disruptions from the Russia-Ukraine war and improved crude price differentials.
- Refining Margin Recovery: The U.S. refining sector experienced a sharp recovery in Q4, with the 3-2-1 crack spread benchmark rebounding from multi-year lows earlier in 2024, driven by tighter global fuel supplies and seasonal demand increases, which bolstered profitability.
- Increased Throughput: PBF's crude oil and feedstocks throughput rose to 888,900 barrels per day in the reported quarter, up from 862,000 barrels per day a year earlier, reflecting the company's ability to capitalize on market recovery opportunities.
- New Refinery Construction Update: PBF expects the construction of its Martinez refinery in California to be completed by February 16, 2026, with the catalytic cracking unit anticipated to start in the first week of March, further enhancing the company's production capacity and competitive position in the market.
See More
United Steelworkers Union Secures New Labor Agreement, Averting Nationwide Strike
- Agreement Reached: The United Steelworkers Union (USW) negotiated a new labor agreement with Marathon Petroleum (MPC), averting a nationwide strike that could have impacted 30,000 workers across 26 refineries and petrochemical plants, ensuring operational continuity.
- Wage Increases: The four-year deal includes a 4% pay raise in the first and fourth years and a 3.5% increase in the second and third years, reflecting a compromise as union members initially sought a 25% increase, highlighting the challenges in wage negotiations.
- Contract Implementation: The new contract will gradually replace the current one at each plant, which was extended on a rolling 24-hour basis just hours before its expiration, indicating the urgency and complexity of the negotiations.
- Local Issues Risk: While a nationwide strike is averted, individual refineries and chemical plants may still face work stoppages due to local issues, particularly at BP's refinery in Whiting, Indiana, where the union is preparing for a potential strike or lockout.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
Oil Refiners Experience a Golden Era
- Refining Profits Surge: Oil refiners are experiencing significant profit increases due to falling crude costs and rising product demand, with Marathon Petroleum reporting a margin of $18.65 per barrel in Q4, a 50% increase year-over-year.
- Strong Market Demand: Global liquid fuel consumption is projected to rise by 1.2 million barrels per day in 2026, driven by increased manufacturing, trucking, and air travel, which will further enhance refiners' market positions.
- Declining Crude Prices: The EIA forecasts that Brent crude will average $58 per barrel in 2026, down from $69 in 2025, providing refiners with lower input costs and potentially higher margins.
- Optimistic Investment Outlook: Given the current market dynamics, refining stocks have shown impressive performance with a year-to-date return of 25% in 2026, making a modest investment a potentially lucrative opportunity for investors.
See More
Oil Refiners Soar in 2026: Investment Insights
- Refining Margins Surge: In 2026, refiners like Marathon Petroleum reported a margin of $18.65 per barrel, a 50% increase year-over-year, indicating strong profitability in the refining sector amidst falling crude prices, which is likely to attract more investor interest.
- Demand Growth vs. Capacity Constraints: Despite forecasts of declining crude prices, the EIA projects a 1.2 million barrels per day increase in liquid fuel consumption in 2026, driving demand for gasoline, diesel, and jet fuel beyond refining capacity, thereby enhancing profit margins for refiners.
- Strong Market Performance: As of February 11, 2026, stocks of Marathon Petroleum, Phillips 66, and Valero Energy have risen 28%, 25%, and 25% year-to-date, significantly outperforming the S&P 500's 1.6% increase, reflecting robust market confidence in the refining industry.
- Optimistic Future Outlook: While risks such as Middle Eastern conflicts or economic recessions exist, refining stocks are seen as having further upside potential, making a $1,000 investment at this time potentially lucrative, especially given the positive industry outlook.
See More
Oil Price Drop Fuels Refining Stocks Surge
- Optimistic Refining Outlook: The drop in crude oil prices has led to Marathon Petroleum achieving a fourth-quarter profit margin of $18.65 per barrel, approximately 50% higher than the previous year, indicating strong profitability and market demand for refiners.
- Sustained Demand Growth: Global liquid fuel consumption is projected to increase by 1.2 million barrels per day in 2026 and another 1.3 million barrels per day in 2027, primarily driven by manufacturing, trucking, and air travel, further solidifying the refining sector's market position.
- Significant Margin Increases: The 3-2-1 crack spread rose about 45% in the fourth quarter, indicating expanded profit margins for refiners, with Phillips 66's margin doubling to $12.48 per barrel and Valero's margin climbing 61%, reflecting a robust industry recovery.
- Positive Future Outlook: Despite risks from potential Middle East conflicts or economic recessions, crude prices are expected to continue falling, with the EIA forecasting an average Brent crude price of $58 per barrel in 2026, which bodes well for refiners and their shareholders.
See More
PBF Energy Reports Surprise Profit in Q4 Amid Supply Disruptions
- Surprise Profit: PBF Energy reported an adjusted profit of $0.49 per share in Q4, surpassing estimates of a $0.10 loss, indicating a significant rebound in refining margins due to supply disruptions from the Russia-Ukraine war and improved crude price differentials.
- Refining Margin Recovery: The U.S. refining sector experienced a sharp recovery in Q4, with the 3-2-1 crack spread benchmark rebounding from multi-year lows earlier in 2024, driven by tighter global fuel supplies and seasonal demand increases, which bolstered profitability.
- Increased Throughput: PBF's crude oil and feedstocks throughput rose to 888,900 barrels per day in the reported quarter, up from 862,000 barrels per day a year earlier, reflecting the company's ability to capitalize on market recovery opportunities.
- New Refinery Construction Update: PBF expects the construction of its Martinez refinery in California to be completed by February 16, 2026, with the catalytic cracking unit anticipated to start in the first week of March, further enhancing the company's production capacity and competitive position in the market.
See More
United Steelworkers Union Secures New Labor Agreement, Averting Nationwide Strike
- Agreement Reached: The United Steelworkers Union (USW) negotiated a new labor agreement with Marathon Petroleum (MPC), averting a nationwide strike that could have impacted 30,000 workers across 26 refineries and petrochemical plants, ensuring operational continuity.
- Wage Increases: The four-year deal includes a 4% pay raise in the first and fourth years and a 3.5% increase in the second and third years, reflecting a compromise as union members initially sought a 25% increase, highlighting the challenges in wage negotiations.
- Contract Implementation: The new contract will gradually replace the current one at each plant, which was extended on a rolling 24-hour basis just hours before its expiration, indicating the urgency and complexity of the negotiations.
- Local Issues Risk: While a nationwide strike is averted, individual refineries and chemical plants may still face work stoppages due to local issues, particularly at BP's refinery in Whiting, Indiana, where the union is preparing for a potential strike or lockout.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
