Since the beginning of the second quarter on April 1, Marathon Petroleum (MPC) stock has fallen 20%. However, the SPDR S&P 500 ETF (SPY), a broader equity market indicator, has increased 1% during the same period. So far, Marathon Petroleum has underperformed SPY in the second quarter.
Marathon Petroleum’s peers have also fallen in the second quarter. Valero Energy (VLO) and Phillips 66 (PSX) have fallen 12% and 11%, respectively, since April 1. HollyFrontier (HFC) and Delek US Holdings (DK) have fallen 19% and 4%, respectively, in the second quarter.
Marathon Petroleum stock fell
So far in the second quarter, Marathon Petroleum stock has fallen. The stock likely fell due to its lower-than-expected first-quarter earnings. The fall was partially offset by recovering refining indicators in the second quarter.
In the current quarter, Marathon Petroleum announced lower-than-expected first-quarter earnings. Marathon Petroleum posted a loss of $0.09 per share in the first quarter. The company’s refining and marketing segment posted an operating loss of $334 million. However, the company’s retail and midstream earnings rose year-over-year. For more on Marathon Petroleum’s earnings, read MPC’s Refining Segment after Its Operating Loss in Q1.
In the second quarter, Marathon Petroleum’s refining earnings indicators have started recovering. The blended crack has risen 29% YoY in the second quarter. However, the sweet differential and sour differential have narrowed 19% YoY and 75% YoY, respectively, in the second quarter. Marathon Petroleum’s earnings could be supported by a better crack and partly offset by lower differentials.