Ohio-based independent oil refiner and marketer
Marathon Petroleum Corporation
) reported higher-than-expected second-quarter 2013 results,
backed by excellent performances in the Speedway and Pipeline
Marathon reported adjusted earnings per share of $1.95, above the
Zacks Consensus Estimate of $1.91.
Marathon's earnings per share however declined considerably from
$2.53 to $1.95 on a year-over-year basis, owing to lower refining
and marketing margins.
Revenues of $25.7 billion were up 26.9% year over year and above
the Zacks Consensus Estimate of $24.6 billion.
Refining & Marketing:
Marathon's refining and marketing unit earned $0.9 billion during
the quarter, compared with $1.3 billion in the year-ago quarter,
owing to lower realized gross refining and marketing margin that
was down 44.5% year over year to $6.18 per barrel.
Total refined product sales volumes increased (by 35.3%) from the
year-earlier level to 2,125 thousand barrels per day, while
throughput improved 39.2% year over year to 1,864 thousand
barrels per day.
Income from the Speedway retail stations totaled $123.0 million,
up from $107.0 million in the year-ago period. The growth was
driven by increased gasoline and distillate gross margin as well
as higher merchandise gross margin, offset partially by high
costs related to the increased number of stores.
Segment profitability for the most recent quarter was $58.0
million, which increased 16.0% from the second quarter of 2012.
Higher revenues from transportation aided the results, offset
partially by a hike in expenses related to operation and
Capital Expenditure & Balance Sheet
During the quarter, Marathon spent $283.0 million on capital
programs (47.4% on Refining). As of Jun 30, 2013, the company had
cash and cash equivalents of $3.1 billion and total debt of $3.4
billion, with a debt-to-capitalization ratio of 22%.
Dividend & Share Repurchases
On Jul 31, 2013, Marathon's board of directors declared a
quarterly common stock dividend of 42 cents per share ($1.68 per
share annualized) representing a sequential hike of 20%. The
increased dividend will be paid on Sep 10, to shareholders of
record as of Aug 21.
Moreover, for the reported quarter, Marathon returned about $1.0
billion to shareholders through dividends and share repurchases.
The company currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next 1 to 3 months.
CHENIERE ENERGY (CQP): Get Free Report
MARATHON PETROL (MPC): Free Stock Analysis
SEMGROUP CORP-A (SEMG): Free Stock Analysis
WESTERN GAS PTR (WES): Free Stock Analysis
To read this article on Zacks.com click here.
Meanwhile, stocks in the energy sector like
Cheniere Energy Partners LP
Western Gas Partners LP
) are attractive investments. All the firms sport a Zacks Rank #2