Marathon Petroleum (NYSE:MPC) Releases Earnings Results, Beats Expectations By $0.34 EPS

Marathon Petroleum (NYSE:MPC) released its quarterly earnings data on Tuesday. The oil and gas company reported $4.07 earnings per share for the quarter, topping the consensus estimate of $3.73 by $0.34, FiscalAI reports. Marathon Petroleum had a net margin of 2.13% and a return on equity of 9.76%. The business had revenue of $35.10 billion for the quarter, compared to analyst estimates of $30.89 billion. During the same quarter last year, the firm earned $0.77 EPS. Marathon Petroleum’s quarterly revenue was down .1% compared to the same quarter last year.

Here are the key takeaways from Marathon Petroleum’s conference call:

• Strong 2025 financials — MPC delivered full-year adjusted EPS of $10.70 and roughly $12 billion of adjusted EBITDA, generated about $8.3 billion of operating cash and returned $4.5 billion to shareholders (6.5% reduction in shares).
• Disciplined 2026 capital plan — refining capex is targeted at ~ $700 million (nearly 20% YoY reduction) with $250 million for marketing; MPC keeps net debt/capital in a 25–30% range and intends to return excess free cash flow after business needs to shareholders.
• High-return refining projects — announced Garyville upgrades (≈+30,000 bpd crude throughput and +10,000 bpd export-grade gasoline) and an El Paso yield project, all targeted to start by end‑2027 (El Paso in 2Q2026) with a stated hurdle of ~25% returns.
• Feedstock optionality & sour-crude advantage — MPC runs ~50% sour crude across its system, can pivot to Venezuelan barrels when economical, and says a $1/­bbl move in sour differentials implies roughly a $500 million annual impact to MPC.
• Near-term headwinds and risks — Q4 midstream results were lower due to divestitures, renewables faced weaker margins with a planned Martinez turnaround, and industry bargaining with the USW (contracts expired Jan 31 with rolling extensions) remains an operational/cost-risk to monitor.

Marathon Petroleum Trading Up 5.7%

NYSE:MPC opened at $187.04 on Wednesday. The company has a quick ratio of 0.79, a current ratio of 1.32 and a debt-to-equity ratio of 1.31. Marathon Petroleum has a twelve month low of $115.10 and a twelve month high of $202.29. The company has a market cap of $56.22 billion, a P/E ratio of 19.94, a price-to-earnings-growth ratio of 1.81 and a beta of 0.74. The business has a 50 day moving average price of $177.30 and a two-hundred day moving average price of $180.70.

Marathon Petroleum Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Wednesday, February 18th will be paid a $1.00 dividend. The ex-dividend date is Wednesday, February 18th. This represents a $4.00 annualized dividend and a yield of 2.1%. Marathon Petroleum’s payout ratio is presently 42.64%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. WFA of San Diego LLC bought a new stake in Marathon Petroleum during the 2nd quarter worth about $33,000. Ossiam acquired a new stake in shares of Marathon Petroleum in the third quarter valued at about $68,000. McIlrath & Eck LLC raised its holdings in Marathon Petroleum by 15.8% during the second quarter. McIlrath & Eck LLC now owns 792 shares of the oil and gas company’s stock worth $132,000 after acquiring an additional 108 shares in the last quarter. MUFG Securities EMEA plc acquired a new position in Marathon Petroleum during the second quarter valued at approximately $151,000. Finally, Lazard Asset Management LLC grew its stake in Marathon Petroleum by 7.1% in the second quarter. Lazard Asset Management LLC now owns 1,037 shares of the oil and gas company’s stock valued at $172,000 after purchasing an additional 69 shares in the last quarter. Institutional investors own 76.77% of the company’s stock.

Analysts Set New Price Targets

MPC has been the subject of several research analyst reports. Zacks Research lowered shares of Marathon Petroleum from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 20th. BMO Capital Markets reduced their target price on Marathon Petroleum from $208.00 to $200.00 and set an “outperform” rating on the stock in a report on Monday, January 12th. Barclays lowered their price target on Marathon Petroleum from $202.00 to $194.00 and set an “overweight” rating for the company in a report on Tuesday, January 13th. TD Cowen lifted their price objective on Marathon Petroleum from $183.00 to $198.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Scotiabank reissued an “outperform” rating and set a $174.00 target price on shares of Marathon Petroleum in a research note on Friday, January 16th. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $198.38.

Marathon Petroleum News Summary

Here are the key news stories impacting Marathon Petroleum this week:

• Positive Sentiment: Q4 beat and margin rebound — MPC reported adjusted EPS ~$4.07, beating consensus, with refining margins recovering and 94% utilization; management highlighted margin capture of ~105%, which drove stronger cash flow and underpins 2026 capital returns. Marathon press release
• Positive Sentiment: Buybacks & MPLX support — Management signaled continued aggressive share repurchases (reducing share count ~6.5% Q1, ~10% for 2025) and highlighted that MPC’s ~70% stake in MPLX provides a high-yield dividend stream that helps fund MPC dividends and buybacks. This is a key long-term driver for EPS accretion. MarketBeat analysis
• Neutral Sentiment: Purchased Venezuelan crude for U.S. refineries — MPC disclosed two cargo purchases of Venezuelan heavy crude and plans to run more heavy grades; this can lower feedstock costs and improve margins but adds operational complexity and potential geopolitical/regulatory exposure. Reuters
• Neutral Sentiment: Analyst/institutional positioning — Coverage and price-target chatter turned more constructive after the print (some houses see upside to near-record levels), and institutional ownership remains high (~90% held by institutions), supporting a favorable technical backdrop. MarketBeat
• Negative Sentiment: Labor negotiation risk — Refinery union talks remain unresolved; Reuters sources say the union has neither accepted nor rejected Marathon’s latest offer, leaving the possibility of labor disruption that could pressure utilization and margins. Seeking Alpha / Reuters
• Negative Sentiment: Mixed near-term market reaction — Some coverage notes the stock slipped intraday despite the beat, reflecting investor focus on forward visibility, cyclical margin sustainability, and any incremental guidance. Expect volatility as the market digests buyback pace vs. recurring margin strength. TipRanks

About Marathon Petroleum

Marathon Petroleum Corporation (NYSE: MPC) is a U.S.-based downstream energy company engaged principally in the refining, marketing, supply and transportation of petroleum products. The company was formed through a spin-off from Marathon Oil in 2011 and operates an integrated system of refining and logistics assets that support the production and distribution of transportation fuels and other refined petroleum products.

Marathon Petroleum’s operations include refining crude oil into gasoline, diesel, jet fuel, asphalt and other specialty products, as well as managing the distribution and storage infrastructure needed to move those products to market.