Why Marathon Petroleum Stock Popped Nearly 12% in January
Shares of Marathon Petroleum (NYSE: MPC) rallied 11.6% in January, according to data provided by S&P Global Market Intelligence. The main factor fueling the double-digit rise in the refining stock was its strong fourth-quarter results. The company also plans to trim its investment spending this year, which would, depending on market conditions, increase its free cash flow and ability to return money to shareholders.
Marathon Petroleum reported its fourth-quarter and full-year results near the end of January. The refining company delivered $1.5 billion, or $3.84 per share, of adjusted net income in the year's final quarter. While that was down from $3.3 billion, or $7.09 per share, from the year-ago period, it significantly exceeded the analysts' consensus estimate that it would earn $2.21 per share. The company also beat analysts' expectations for revenue ($36.8 billion versus $34.9 billion).
That capped a solid year for the refiner as it overcame pricing volatility to produce solid earnings and cash flow. Marathon Petroleum earned $9.7 billion while generating $14.1 billion in net cash provided by operating activities for the year. That strong cash flow supported its hefty cash returns, which totaled $12.8 billion in dividends and share buybacks last year.
Source Fool.com
