Marathon Petroleum Refining Margins Fall Drags Q1 Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2025
0mins
Should l Buy MPC?
Source: Benzinga
First Quarter Financial Results: Marathon Petroleum Corporation reported first-quarter revenues of $31.85 billion, exceeding expectations, while adjusted EPS loss was $(0.24), better than the consensus estimate of $(0.53). The refining segment saw a decline in adjusted EBITDA to $489 million due to lower market crack spreads.
Shareholder Returns and Outlook: The company returned approximately $1.3 billion to shareholders through buybacks and declared a quarterly dividend of $0.91 per share. For the second quarter, it anticipates refining operating costs per barrel of $5.30 and refinery throughputs of 2,945 mbpd.
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Analyst Views on MPC
Wall Street analysts forecast MPC stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 211.980
Low
184.00
Averages
201.50
High
213.00
Current: 211.980
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.
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- Government Support Measures: Treasury Secretary Scott Bessent announced that the Trump administration will provide insurance for oil tankers in the Gulf through the International Development Finance Corporation and promised naval escorts if necessary, aiming to restore market confidence.
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- Market Reaction: Despite a 6% and 5% increase in U.S. crude prices on Monday and Tuesday respectively, market sentiment turned cautious following Bessent's announcement of further support measures, leading to a decline in oil prices.
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- Inflationary Risks Intensified: Rising oil prices are likely to drive overall inflation, particularly impacting costs in sectors like trucking and plastics, which may reduce consumer purchasing power and subsequently affect sales and corporate profits.
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