What caused MPLX's EPS surprise in Q2 2024?


Aime
Marathon Petroleum Corporation (MPC) reported an EPS surprise in Q2 2024 due to several key factors:
- Refining and Marketing Segment Performance: The Refining & Marketing segment reported an adjusted EBITDA of $559 million for Q4 2024, which was a significant contributor to the overall earnings. Despite lower refining margins per barrel, higher rates and volumes processed, along with contributions from acquired assets in the Utica and Permian basins, helped to buoy earnings12.
- Midstream Segment Strength: The Midstream segment performed well, with an adjusted EBITDA of $1.7 billion for Q4 2024. This was driven by higher rates, volumes, and contributions from acquisitions. The segment's strong performance helped to offset some of the challenges faced by the Refining & Marketing segment32.
- Renewable Diesel Segment Improvement: The Renewable Diesel segment turned profitable, reporting an adjusted EBITDA of $28 million for Q4 2024, a significant improvement from a $47 million loss in the same quarter a year earlier. Higher utilization at the Martinez joint venture contributed to this positive shift32.
- Capital Returns to Shareholders: Marathon Petroleum's focus on capital returns to shareholders also played a role in the positive earnings surprise. The company returned approximately $1.6 billion to shareholders in Q4 2024, including $1.3 billion in share repurchases and $292 million in dividends2.
In summary, MPLX's EPS surprise in Q2 2024 was likely a result of a combination of factors, including strong performance from its Refining & Marketing and Midstream segments, improved profitability in its Renewable Diesel segment, and significant capital returns to shareholders.
Source:
f
1.
Why Is Marathon Petroleum (MPC) Down 14.1% Since Last Earnings Report?
more
less
Continue this conversation 

Explore
Screener
Analysis
Learn
Wiki