UPDATE: Marathon Petroleum (MPC) Misses Q1 EPS by 5c

(Updated - May 1, 2014 8:18 AM EDT)

Marathon Petroleum (NYSE: MPC) reported Q1 EPS of $0.67, $0.05 worse than the analyst estimate of $0.72.

Refining & Marketing

Refining & Marketing segment income from operations was $362 million in the first quarter of 2014, compared with $1.11 billion in the first quarter of 2013. The decrease was primarily due to narrower crude oil differentials, higher turnaround costs and lower refinery throughput, primarily due to the turnaround activities. The decrease was partially offset by higher crack spreads and more favorable net product price realizations. The West Texas Intermediate/Light Louisiana Sweet (LLS) crude oil differential narrowed by $13.83 per barrel when compared to the first quarter of 2013. In addition, the sweet/sour crude oil differential narrowed by $3.89 per barrel for the quarter. The Chicago 6-3-2-1 crack spread increased by $4.81 per barrel compared to the first quarter of 2013 and the U.S. Gulf Coast LLS 6-3-2-1 crack spread increased by $2.40 per barrel.

Speedway

Speedway segment income from operations was $58 million in the first quarter of 2014, compared with $67 million in the first quarter of 2013. The severe weather conditions in the Midwest impacted all aspects of the business for the first quarter of 2014. First-quarter results were also impacted by a decrease in the gasoline and distillate gross margin compared to the first quarter of 2013. That combined margin decreased from 13.01 cents per gallon in the first quarter of 2013 to 11.56 cents per gallon in the first quarter of 2014. Additionally, higher operating expenses resulted from an increase in the number of stores and the difficult weather conditions in the quarter. These impacts to segment income were partially offset by a higher merchandise margin.

Pipeline Transportation

Pipeline Transportation segment income from operations, including 100 percent of MPLX LP's operations, was $72 million in the first quarter of 2014, compared with $51 million for the first quarter of 2013. The increase was primarily due to an increase in pipeline transportation revenue and equity affiliate income, partially offset by higher operating expenses.

For earnings history and earnings-related data on Marathon Oil Corp. (MRO) click here.

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