Marathon Petroleum beats by $0.11, beats on revs; provides details on FY17 capex guidance
- Reports Q4 (Dec) earnings of $0.43 per share, $0.11 better than the Capital IQ Consensus of $0.32; revenues rose 10.2% year/year to $17.28 bln vs the $16 bln single analyst estimate.
- Refining & Marketing segment income from operations was $219 mln in the fourth quarter of 2016 and $1.54 bln for full-year 2016, compared with $179 mln and $4.09 bln in the fourth quarter of 2015 and full-year 2015, respectively.
- Speedway segment income from operations was $165 mln in the fourth quarter of 2016 and $734 mln for full-year 2016, compared with $135 mln in the fourth quarter of 2015 and $673 mln for full-year 2015.
- Midstream segment income from operations, which includes 100 percent of MPLX's operations as well as other related operations, was $245 mln in the fourth quarter of 2016 and $871 mln for full-year 2016, compared with $94 mln and $380 mln for the fourth quarter and full-year 2015, respectively.
- MPC's investment plan, excluding MPLX LP (MPLX), totals ~$1.7 bln. The plan includes nearly $1.2 bln for MPC's refining and marketing segment, with approximately $325 mln for margin-enhancing projects and ~$840 mln for sustaining capital, related to regulatory spending including Tier 3 gasoline. It also includes ~$380 mln for MPC's Speedway segment, primarily to build new stores and to remodel and rebuild existing retail locations in its core markets; approximately $90 mln for MPC's midstream segment, excluding MPLX; and approximately $100 mln to support corporate activities.
- MPLX announced its 2017 capital investment plan, which includes $1.4 bln to $1.7 bln of organic growth capital and approximately $100 mln of maintenance capital. Approximately $1 bln to $1.3 bln of these growth investments are for the development of natural gas and gas liquids infrastructure to support MPLX's producer customers, primarily in the prolific Marcellus Shale.
- "Moving into 2017, we are executing our strategic plan to unlock the tremendous value in our best-in-class midstream platform for the benefit of all investors," Heminger said. "We are well-positioned across the business to take advantage of strengthening commodity prices, recovering refinery spreads and robust demand for our products."