Valued at a market cap of around $43 billion, Marathon Petroleum Corporation (MPC) is an integrated, downstream energy company. Based in Findlay, Ohio, the company operates through three segments: Refining & Marketing; Midstream; and Renewable Diesel.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks and Marathon Petroleum fits this criterion perfectly. The company operates the nation's largest refining system. It refines, markets, and distributes crude oil, transportation fuels, natural gas liquids, and renewable diesel.
However, the oil refining & marketing giant declined 37.8% from its 52-week high of $221.11. Over the last three months, shares of Marathon Petroleum dipped 8.9%, underperforming the iShares U.S. Oil & Gas Exploration & Production ETF’s (IEO) 6.4% decrease.
In the long term, MPC is down 23.1% over the last 52 weeks, whereas IEO dropped 10.2%. However, shares of Marathon Petroleum have decreased 1.4% on a YTD basis, surpassing IEO’s 2.2% decline over the same time frame.
Marathon Petroleum has been trading below its 50-day and 200-day moving average since last year.
Despite Marathon Petroleum reporting an 80.7% year-over-year drop in Q4 2024 earnings, its stock climbed 6.7% on Feb. 4 as the company’s adjusted EPS of $0.77 exceeded Wall Street expectations. The Midstream segment posted strong adjusted EBITDA of $1.7 billion, driven by higher rates, volumes, and contributions from acquisitions. The Renewable Diesel segment turned profitable with an adjusted EBITDA of $28 million, a significant improvement from a $47 million loss a year earlier, reflecting higher utilization at the Martinez joint venture.
In addition, investors reacted positively to the company’s $10.2 billion capital return in 2024 through dividends and share buybacks, alongside a 2025 capital spending plan of $1.25 billion focused on refining efficiency and long-term value creation.
However, in comparison, rival CrossAmerica Partners LP (CAPL) outperformed MPC. CAPL shares have gained 5.9% on a YTD basis and 4.9% over the past 52 weeks.
Despite MPC’s underperformance relative to its industry peers over the last year, analysts are moderately optimistic about its prospects. MPC has a consensus rating of “Moderate Buy” from the 18 analysts covering the stock. As of writing, Marathon Petroleum is trading below 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 information please view the Barchart Disclosure Policy here.
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