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Marathon Petroleum (NYSE: NYSE:), led by CEO Michael J. Hennigan, outperformed estimates in Q3 2023, propelled by robust U.S fuel demand. The company reported an adjusted net income of $3.2 billion and earnings per share at $8.14, surpassing estimates of $7.75. This was achieved despite a decrease in the refining and marketing segment’s adjusted EBITDA to $16.06 per barrel from $19.87 in Q3 2022 due to lower market crack spreads.
The company managed to reduce refining operating costs per barrel to $5.14 from $5.63 in the corresponding period last year, thanks to decreased energy costs. As a result, the R&M margin stood at $26.16 per barrel, down from $30.21 in Q3 2022. Crude capacity utilization was recorded at 94%, allowing a total throughput of 3 million barrels per day and generating net cash of $5 billion.
In line with its shareholder return strategy, Marathon Petroleum returned $3.1 billion to its shareholders through dividends and share repurchases during the quarter. The company increased its quarterly dividend by 10% and also expanded its share repurchase authorization by $5 billion.
In other industry news, Valero Energy (NYSE: NYSE:), under CEO Lane Riggs, reported higher-than-expected profits for the quarter with a throughput capacity utilization of 95%. On the other hand, Phillips 66 (NYSE: NYSE:) fell short of analyst expectations despite stronger refining margins.
Looking ahead, Oasis Petroleum (NASDAQ:) is scheduled to announce its Q3 earnings on November 1. The company is expected to report an EPS of $5.11, marking a decrease from the previous year’s Q3 EPS of $7.20. A significant sales decline of 35.74% to $1.19 billion is also anticipated. The company’s profit per share for the fiscal year is projected at $19.79, falling from last year’s $27.03, with total sales estimated to be $3.56 billion, slightly lower than last year’s figure of $3.65 billion.
InvestingPro Insights
InvestingPro’s real-time data and tips provide some valuable insights into Marathon Petroleum’s (NYSE: MPC) performance and future prospects. With a robust market capitalization of $59.81B and a low P/E ratio of 5.28 as of Q2 2023, the company presents an attractive investment opportunity. The company has also shown a strong return on assets of 15.64% in the last twelve months as of Q2 2023, reflecting efficient use of its resources.
Two key InvestingPro Tips can provide further insight. Firstly, the company’s management has been actively buying back shares, reflecting their confidence in the company’s future performance. Secondly, Marathon Petroleum has consistently increased its earnings per share, indicating steady financial growth.
These insights are just a sample of what’s available. InvestingPro offers numerous other tips and metrics for investors seeking a deeper understanding of the company’s performance.
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