Gerson Freitas Jr.,/Bloomberg News
NEW YORK
EnergiesNet.com 02 02 2022
Marathon Petroleum Corp. surged to the highest in more than three years after reporting better-than-expected fourth-quarter results and signaling it may return more capital to shareholders than previously planned.
The largest U.S. independent refiner by market value posted on Wednesday quarterly profit that was more than double the average of analyst estimates amid a rebound in refining margins. Marathon has completed about 55% of a $10 billion stock-buyback program and was authorized to repurchase an additional $5 billion in stock, the company said.
The profit beat underscores the recovery of one of the hardest-hit industries during the coronavirus pandemic, when stay-at-home orders sent demand for fuels plummeting. Major rivals Phillips 66 and Valero Energy Corp. have also reported quarterly results that exceeded expectations.
The revival in driving across the U.S. has helped refining companies return to overall profitability and slash the debt glut built during the crisis even as jet fuel demand remains curbed by international travel restrictions. Meanwhile, tight supplies have driven gasoline prices to the highest since 2014, fueling inflation concerns.
Shares of the Findlay, Ohio-based company gained 4.1% as of 9:52 a.m. in New York to the highest level since October 2018.
Marathon also said it plans to spend $1.7 billion in capital this year, less than expected by analysts. About half of the planned investment is for the conversion of its Martinez refinery into a renewable fuel plant.
bloomberg.com 02 02 2022
