MPC, VLO, HFC, and PSX: Beats and Misses in Q4



Beats and misses in the fourth quarter

Recently, refining stocks including Marathon Petroleum (MPC), HollyFrontier (HFC), Valero Energy (VLO), and Phillips 66 (PSX) posted their fourth-quarter earnings. All of these companies beat analysts’ fourth-quarter earnings estimate.

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Marathon Petroleum

In the fourth quarter, Marathon Petroleum (MPC) posted an EPS of $1.35. After adjusting the EPS for special costs related to the Andeavor acquisition and MPLX debt extinguishment, Marathon Petroleum’s EPS was $2.41. Analysts’ estimated EPS was $1.96.


HollyFrontier’s (HFC) revenues of $4.3 billion rose 9% YoY. The company’s adjusted EPS of $2.3 in the fourth quarter beat analysts’ estimate of $1.9. The higher earnings were led by a steep rise in the refining margin and earnings. HollyFrontier’s adjusted EBITDA rose 92% YoY to $641 million in the fourth quarter.

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Valero Energy

In the fourth quarter, Valero Energy’s (VLO) revenues beat analysts’ mean estimate by ~20%. The company’s adjusted EPS was $2.1, which beat analysts’ estimated EPS of $1.1 by ~98%. Valero Energy’s fourth-quarter EPS was 83% higher than its adjusted EPS in the fourth quarter of 2017.

Phillips 66

Phillips 66’s fourth-quarter revenues at $29.8 billion beat analysts’ estimate by ~5%. The company’s adjusted EPS was $4.9 in the fourth quarter, which beat analysts’ estimated EPS of $3.0. Phillips 66 posted its highest quarterly adjusted EPS since the fourth quarter of 2015. Also, the company’s fourth-quarter adjusted EPS rose 355% YoY.

Next, we’ll discuss these companies’ fourth-quarter earnings in more detail.


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