Strong Financial Performance: Marathon Petroleum (MPC) reported adjusted earnings per share of $0.77 for Q4 and $9.51 for the full year 2024, with adjusted EBITDA reaching $2.1 billion for the quarter and $11.3 billion for the year. The refining and marketing segment achieved an EBITDA per barrel of $5.33 for the year, showcasing robust profitability despite typical seasonal weaknesses in Q4 margins.
Record Demand Outlook: The company anticipates continued growth in refined product demand in 2025, expecting it to surpass previous records, particularly for gasoline, diesel, and jet fuel. This is backed by a macro environment that favors U.S. refining due to comparatively lower-cost energy sources, with expectations that U.S. refining fundamentals will improve as demand outstrips new capacity additions.
MPLX Contributions and Capital Returns: MPC's midstream segment, primarily represented by MPLX, boosted adjusted EBITDA by 6% year-over-year, with MPLX increasing its quarterly distribution by 12.5% to MPC, amounting to an annualized $2.5 billion. This stable cash flow allows MPC to cover its dividends and capital expenditures comfortably while enabling $10.2 billion in capital returns, highlighting a 23% return yield for shareholders.