Marathon Petroleum Reports Mixed Performance Amid Industry Challenges

With a market capitalization of approximately $43 billion, Marathon Petroleum Corporation (MPC) is an integrated downstream energy firm headquartered in Findlay, Ohio. The company operates through three primary segments: Refining & Marketing, Midstream, and Renewable Diesel.

Marathon Petroleum qualifies as a “large-cap” stock, a designation for companies worth $10 billion or more. Notably, it runs the largest refining system across the United States, engaging in the refining, marketing, and distribution of crude oil, transportation fuels, natural gas liquids, and renewable diesel.

Currently, however, the oil refining and marketing giant has seen a decline of 37.8% from its 52-week peak of $221.11. Over the previous three months, MPC’s shares fell by 8.9%, lagging behind the iShares U.S. Oil & Gas Exploration & Production ETF (IEO), which decreased by 6.4% during the same period.

Examining its performance over a longer horizon, MPC’s shares are down 23.1% in the last 52 weeks, while IEO has dropped 10.2%. Year-to-date, however, shares of Marathon Petroleum have only decreased by 1.4%, outperforming IEO’s 2.2% decline in 2023.

Notably, Marathon Petroleum has traded below both its 50-day and 200-day moving averages since last year, indicating potential volatility in its stock performance.

In a recent financial report, Marathon Petroleum disclosed an 80.7% year-over-year decline in Q4 2024 earnings. In spite of this, the company’s stock rose by 6.7% on February 4, buoyed by an adjusted earnings per share (EPS) of $0.77 that surpassed Wall Street forecasts. The Midstream segment reported strong adjusted EBITDA of $1.7 billion, fueled by increased rates, volumes, and successful acquisitions. Furthermore, the Renewable Diesel segment turned profitable, posting adjusted EBITDA of $28 million, a notable recovery from a $47 million loss the previous year, attributed to higher utilization at the Martinez joint venture.

Investors also welcomed the announcement of a $10.2 billion capital return strategy for 2024 through dividends and share repurchases, alongside a capital spending plan of $1.25 billion for 2025 aimed at increasing refining efficiency and long-term value generation.

In comparison, rival CrossAmerica Partners LP (CAPL) has outperformed MPC, with CAPL shares rising 5.9% year-to-date and 4.9% over the past year.

Despite its underperformance relative to industry peers, analyst sentiment toward MPC remains moderately optimistic. The stock holds a consensus rating of “Moderate Buy” from 18 analysts. Currently, Marathon Petroleum is trading beneath the mean price target of $173.33.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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