Marathon Petroleum Corp (NYSE:MPC) stock rose 3.54% (As on November 6, 11:32:36 AM UTC-4, Source: Google Finance) after the company reported its third-quarter earnings, beating Wall Street estimates on better-than-expected throughput and utilization rates even as global refining margins decline. The company has announced an additional $5 billion share repurchase program, and now has $8.5 billion available under its share buyback authorization. The refiner’s crude capacity utilization in the third quarter was about 94%, above the 90% it forecast in August. For the fourth quarter, Marathon plans to operate refineries at 90% of combined capacity of 2.95 million bpd. Total throughput, or the amount of crude processed through refineries, of 3 million barrels per day (bpd) was also above the company’s prior expectation of 2.84 million bpd. Adjusted core earnings at Marathon’s midstream unit rose 5.8% to $1.6 billion in the third quarter, primarily driven by higher rates and volumes transported. Marathon said its third-quarter refining and marketing margin was $14.35 per barrel, compared with $26.16 per barrel a year earlier. Net income attributable to the company in the third quarter dropped 82% to $622 million, from last year. The company, which also operates midstream assets through MPLX, is navigating a challenging market environment.

MPC in the third quarter of FY 24 has reported the adjusted earnings per share of $1.87, beating the analysts’ estimates for the adjusted earnings per share of 98 cents, data compiled by LSEG showed. The company’s total revenues and other income for the third quarter of 2024 were $35.4 billion, compared to $41.6 billion in the same period last year. The cost of revenues decreased slightly to $32.1 billion from $34.9 billion. The Refining & Marketing segment’s adjusted EBITDA was $1.1 billion, a sharp decline from $4.4 billion in the previous year, primarily due to reduced market crack spreads. As of September 30, 2024, Marathon Petroleum Corp held $5.1 billion in cash, cash equivalents, and short-term investments. The company also repaid $750 million of senior notes that matured in September 2024. The robust liquidity position supports MPC’s strategic initiatives, including high-return investments at its Los Angeles and Galveston Bay refineries.

Additionally, MPC is advancing growth projects in the Permian and Marcellus basins through MPLX, its midstream partnership. These projects are expected to enhance gas processing capacity and provide steady growth opportunities. In addition, MPC has announced a $5 billion share repurchase authorization and a 10% increase in its quarterly dividend.