Did MPC, VLO, HFC, and PSX’s Earnings Rise in Q4?

In the previous part, we saw that HollyFrontier (HFC), Marathon Petroleum (MPC), Valero Energy (VLO), and Phillips 66 (PSX) beat their earnings estimate. In this part, we’ll discuss their performances in more detail.

Marathon Petroleum’s reported net income, attributable to its shareholders, fell from $2.0 billion in the fourth quarter of 2017 to $0.95 billion in the fourth quarter. The reported net income fell due to special items in both quarters. The fourth-quarter earnings included special costs of $745 million. Marathon Petroleum’s operating earnings rose 73% YoY to $2.0 billion in the fourth quarter due to a rise in segmental earnings driven by the integration of Andeavor.

HollyFrontier’s net income, attributable to its shareholders, fell from $521 million in the fourth quarter of 2017 to $142 million in the fourth quarter. However, excluding special items, HollyFrontier’s earnings rose from $125 million in the fourth quarter of 2017 to $394 million in the fourth quarter. The earnings rose due to higher refining earnings. The company’s earnings were partially offset by lower HEP (or midstream) and lubricants and specialty products’ earnings.

Valero Energy’s reported net income, attributable to its shareholders, fell from $2,371 million in the fourth quarter of 2017 to $952 million in the fourth quarter. However, excluding special costs, Valero Energy’s adjusted net income rose from $509 million in the fourth quarter of 2017 to $900 million in the fourth quarter. Valero Energy’s operating earnings rose 54% YoY to $1,299 million in the fourth quarter. The earnings rose due to higher refining and VLP (or midstream) earnings. The increase was partially offset by lower ethanol earnings.

Phillips 66’s reported earnings fell. However, the company’s adjusted net income, attributable to its shareholders, rose from $0.5 billion in the fourth quarter of 2017 to $2.3 billion in the fourth quarter. The adjusted net income increased due to a year-over-year rise in the midstream, refining, and marketing (marketing and specialties) earnings. The increase was partially offset by a fall in chemicals earnings.