Marathon Petroleum Corp

Refining Performance and Capacity: Marathon Petroleum (MPC) achieved refining utilization of 89% in Q1 2025 despite significant planned turnarounds. The company forecasts throughput volumes of 2.8 million barrels per day in Q2 2025, reflecting an anticipated increase in utilization to 94%. The capture rate was strong at 104%, attributed to effective commercial strategies and favorable seasonal trends, indicating that MPC may benefit from improved refining margins in the coming quarters.

Midstream Growth and Acquisitions: MPC's Midstream segment, MPLX, experienced an 8% year-over-year growth in adjusted EBITDA. The company has announced over $1 billion in strategic acquisitions, including the full ownership of the BANGL NGL pipeline and gathering assets from Whiptail Midstream. This positions MPLX for enhanced cash flow and distribution growth, expected to continue increasing at a sustainable rate of 12.5% annually in the coming years.

Challenges in Renewable Diesel: The renewable diesel segment faced operational challenges with 70% utilization due to unplanned downtime and changes in regulatory credits, which impacted margins. While actions are being taken to optimize operations and realize incremental 45Z credits, this business remains under pressure, especially in a highly competitive market. It is essential for investors to monitor improvements in this segment moving forward.