Marathon Petroleum +7.2% as profit surges, refining margins rise

|About: Marathon Petroleum Corp. (MPC)|By:, SA News Editor

Marathon Petroleum (MPC +7.2%) is one of the day's rare big gainers after reporting a 44% jump in Q2 earnings, boosted by higher crude oil refining margins on the Gulf coast.

Q2 refining and marketing income from operations rose 40% Y/Y to $1.26B, primarily due to more favorable net product price realizations and a higher U.S. Gulf coast crack spread, which rose by $2.55/bbl from the year-ago quarter.

Says it is exercising its option to acquire a 35% interest in the Southern Access Extension project; MPC expects to invest ~$295M in the pipeline project.

Says the FTC had concluded its review of MPC's purchase of Hess' retail business and that the deal would close by the end of the year.

MPC also raised its quarterly dividend by 19% to $0.50/share, the fourth increase since it was spun off from Marathon Oil three years ago, and increased its stock-buyback program by another $2B over the next two years.