Morgan Stanley has revised its price target for Marathon Petroleum (MPC, Financial), boosting it from $160 to $182. Analyst Joe Laetsch maintains an Overweight rating on the company's shares. This adjustment reflects a positive outlook on the stock's future performance.
MPC Key Business Developments
Release Date: May 06, 2025
- Net Loss: $0.24 per share for the first quarter.
- Shareholder Returns: Over $1.3 billion returned through dividends and repurchases.
- Adjusted EBITDA: Approximately $2 billion, a sequential decrease of $145 million.
- Refining Utilization: 89%, processing 2.6 million barrels of crude per day.
- R&M Segment Adjusted EBITDA: $1.91 per barrel for the quarter.
- Midstream Segment Adjusted EBITDA: 8% year-over-year increase.
- Distributions from MPLX: $619 million, a 12.5% increase year-over-year.
- Renewable Diesel Utilization: 70% due to unplanned downtime.
- Operating Cash Flow: $1 billion for the quarter.
- Working Capital: $1.1 billion use of cash, primarily due to inventory builds.
- Capital Expenditures and Investments: $795 million for the quarter.
- Senior Notes Issuance: $2 billion issued by MPC.
- Consolidated Cash Position: $3.8 billion at the end of the quarter.
- Projected Throughput Volumes: 2.8 million barrels per day for the second quarter.
- Turnaround Expense: Approximately $265 million projected for the second quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Marathon Petroleum Corp (MPC, Financial) achieved a refining utilization rate of 89% despite completing significant planned turnaround activities, indicating strong operational management.
- The company reported a 104% capture rate, showcasing strong commercial performance even in a period of low refining margins.
- MPC's midstream segment adjusted EBITDA grew by 8% year over year, reflecting robust performance in this area.
- MPLX, a subsidiary of MPC, announced over $1 billion in strategic acquisitions, enhancing its midstream natural gas and NGL growth strategies.
- MPC is progressing with a $1.25 billion standalone capital plan for 2025, focusing on high-return projects that improve market volatility capitalization.
Negative Points
- MPC reported a first-quarter net loss of $0.24 per share, indicating financial challenges during the period.
- The renewable diesel segment faced a challenging environment, with facilities running at only 70% utilization due to unplanned downtime.
- The company experienced a $1.1 billion use of cash for the quarter, primarily driven by inventory builds, impacting cash flow.
- MPC's adjusted EBITDA for the quarter was approximately $2 billion lower sequentially, affected by decreased results in refining and marketing segments.
- Interest expenses saw a significant increase, partly due to net issuance of debt, impacting overall financial performance.
