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Post Earnings Coverage as Marathon Petroleum's Q4 Results Outperformed Expectations

Upcoming AWS Coverage on Ultrapar Participacoes

LONDON, UK / ACCESSWIRE / February 15, 2017 / Active Wall St. announces its post-earnings coverage on Marathon Petroleum Corp. (NYSE: MPC). The Company disclosed its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on February 01, 2017. The Findlay, Ohio-based Company's quarterly total revenues and other income and diluted EPS grew on a year-over-year basis, outperforming market consensus estimates. Register with us now for your free membership at:

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One of Marathon Petroleum's competitors within the Oil & Gas Refining & Marketing space, Ultrapar Participacoes S.A. (NYSE: UGP), is expected to report its fiscal quarter ending December 2016 earnings results on February 22, 2017 after market close. AWS will be initiating a research report on Ultrapar Participacoes following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on MPC; touching on UGP. Get our free coverage by signing up to:

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Earnings Reviewed

During the quarter ended December 31, 2016, Marathon Petroleum total revenues and other income were $17.28 billion, which came in above $15.68 billion recorded at the end of Q4 FY15. Furthermore, total revenues and other income for the reported quarter beat market expectations of $13.68 billion.

In Q4 FY16, the Company's income from operations was $553 million versus $338 million in the previous year's comparable quarter. Moreover, the Company's total segment's EBITDA rose to $1.12 billion in Q4 FY16 from $807 million in Q4 FY15.

The independent refiner, transporter, and marketer of petroleum products reported net income attributable to Marathon Petroleum of $227 million, or $0.43 per diluted share, in Q4 FY16, compared to $187 million, or $0.35 per diluted share, in Q4 FY15. Wall Street had expected the Company to report diluted EPS of $0.25 in Q4 FY16.

For full year FY16, the Company's total revenues and other income came in at $63.36 billion compared to $72.26 billion in FY15. The Company's net income attributable to Marathon Petroleum for FY16 was $1.17 billion, or $2.21 per diluted share, versus $2.85 billion, or $5.26 per diluted share, in FY15.

Segment Performance

During Q4 FY16, Refining & Marketing segment's income from operations was $219 million compared to $179 million in Q4 FY15. The segment's EBITDA for Q4 FY16 stood at $491 million compared to $447 million in the prior year's same quarter. Furthermore, the segment's refined product sales volume during Q4 FY16 was 2,240 million barrel per day (mbpd) versus 2,248 mbpd in Q4 FY15.

Marathon Petroleum's Speedway segment's income from operations increased to $165 million in Q4 FY16 from $135 million in Q4 FY15. The segment's Q4 FY16 EBITDA came in at $235 million compared to $201million in Q4 FY15. Additionally, the segment's gasoline and distillate sales during the reported quarter were 1,489 million gallons compared to 1,537 million gallons in the prior year's corresponding quarter.

In Q4 FY16, Midstream segment contributed $245 million to the Company's total income from operations compared to $94 million in the year ago same quarter. The segment reported Q4 FY16 EBITDA of $392 million which came in above $159 million recorded in the previous year's comparable quarter. During Q4 FY16, Crude oil and refined product pipeline throughputs were 2,346 mbpd versus 2,071 mbpd in Q4 FY15. The Gathering system throughput during Q4 FY16 was 3,164 million cubic feet per day compared to 3,075 million cubic feet per day in Q4 FY15. Moreover, the segment processed 5,970 million cubic feet per day of natural gas in Q4 FY16 compared to 5,468 million cubic feet per day in Q4 FY15.

Cash Matters and Balance Sheet

For the quarter ended on December 31, 2016, Marathon Petroleum generated $991 million in cash from operations compared to $405 million in quarter ended September 30, 2016. The Company's cash and cash equivalents balance stood at $887 million as on December 31, 2016 compared to $709 million at the close of books on September 30, 2016.

The oil major's total consolidated debt as on December 31, 2016, was $10.57 billion. Furthermore, the Company's debt-to-total-capital at the end Q4 FY16 was 33% versus 34% at close of Q3 FY16.

Dividend

In a separate press release on January 27, 2017, Marathon Petroleum's Board of Directors announced dividend of $0.36 per share on common stock. The dividend is payable on March 10, 2017, to shareholders of record as of close of business on February 16, 2017. Furthermore, the Company return $210 million to its shareholders by way of dividends and share repurchases during the reported quarter.

Stock Performance

On Tuesday, February 14, 2017, the stock closed the trading session at $50.96, climbing 1.35% from its previous closing price of $50.28. A total volume of 4.36 million shares have exchanged hands. Marathon Petroleum's stock price advanced 16.88% in the last three months, 24.68% in the past six months, and 60.72% in the previous twelve months. The Company's shares are trading at a PE ratio of 23.94 and have a dividend yield of 2.83%.

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SOURCE: Active Wall Street