FINDLAY, Ohio – U.S. refiner Marathon Petroleum Corp. announced a stock repurchase of up to $2 billion and said it might spin off some assets, sending its shares up nearly 10 percent and overshadowing news of a wider-than-expected quarterly loss.
The company said on Wednesday that its board had approved a share buyback plan of up to $2 billion over two years and said it was looking at strategic alternatives for some of its midstream assets, including spinning them off into a master limited partnership.
The fourth-quarter net loss was $75 million, or 21 cents per share, compared with year-earlier net income of $230 million, or 64 cents per share.
Analysts on average expected a loss of 6 cents per share, according to Thomson Reuters I/B/E/S.
During the quarter, the price between U.S. benchmark crude oil and European Brent crude narrowed, squeezing margins. U.S. crude oil prices averaged about $92.39 per barrel.
Total revenue and other income rose 11 percent to $19.44 billion. Analysts expected $15.06 billion.
Shares of the company, which was spun off from Marathon Oil Corp. last year, were up 9.9 percent at $41.99 in trading before the market opened.