FINDLAY,
Ohio, Oct. 31, 2023 /PRNewswire/ --
- Third-quarter net income attributable to MPC of
$3.3 billion, or $8.28 per diluted share; adjusted net income of
$3.2 billion, or $8.14 per adjusted diluted share
- Adjusted EBITDA of $5.7
billion; net cash provided by operating activities of
$5.0 billion, reflecting continued
strong cash generation
- MPLX increases distribution 10%; MPC expects to receive an
incremental $200 million, for a total
of $2.2 billion annually
- Returned $3.1 billion of
capital through $2.8 billion of share
repurchases and $297 million of
dividends
- Announced quarterly dividend increase of approximately 10%
to $0.825 per share and additional
$5 billion share repurchase
authorization
Marathon Petroleum Corp. (NYSE: MPC) today reported net
income attributable to MPC of $3.3
billion, or $8.28 per diluted
share, for the third quarter of 2023, compared with net income
attributable to MPC of $4.5 billion,
or $9.06 per diluted share, for the
third quarter of 2022.
Adjusted net income was $3.2
billion, or $8.14 per diluted
share, for the third quarter of 2023. This compares to adjusted net
income of $3.9 billion, or
$7.81 per diluted share, for the
third quarter of 2022. Adjustments are shown in the accompanying
release tables.
The third quarter of 2023 adjusted earnings before interest,
taxes, depreciation, and amortization (adjusted EBITDA) was
$5.7 billion, compared with
$6.8 billion for the third quarter of
2022. Adjustments are shown in the accompanying release tables.
"Our third quarter results reflect our commitment to growing
shareholder value," said President and Chief Executive Officer
Michael J. Hennigan. "The business
generated $5 billion of net cash
provided by operating activities and we returned $3.1 billion through share repurchases and
dividends during the quarter. Demonstrating our commitment to
return capital, we increased our quarterly dividend by 10% and
increased our share repurchase authorization by $5 billion."
Results from Operations
Adjusted EBITDA (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income from
operations
|
$
|
3,757
|
|
$
|
4,625
|
|
$
|
9,076
|
|
$
|
12,527
|
Add: Depreciation and
amortization
|
|
463
|
|
|
459
|
|
|
1,411
|
|
|
1,395
|
Refining planned
turnaround costs
|
|
153
|
|
|
384
|
|
|
902
|
|
|
680
|
LIFO inventory
charge
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
Refining &
Marketing segment adjusted EBITDA
|
|
4,373
|
|
|
5,496
|
|
|
11,389
|
|
|
14,630
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income from
operations
|
|
1,136
|
|
|
1,176
|
|
|
3,550
|
|
|
3,374
|
Add: Depreciation and
amortization
|
|
340
|
|
|
322
|
|
|
988
|
|
|
983
|
Garyville
incident response costs
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
Midstream segment
adjusted EBITDA
|
|
1,539
|
|
|
1,498
|
|
|
4,601
|
|
|
4,357
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
5,912
|
|
|
6,994
|
|
|
15,990
|
|
|
18,987
|
Corporate
|
|
(246)
|
|
|
(173)
|
|
|
(613)
|
|
|
(494)
|
Add: Depreciation and
amortization
|
|
42
|
|
|
13
|
|
|
80
|
|
|
40
|
Adjusted
EBITDA
|
$
|
5,708
|
|
$
|
6,834
|
|
$
|
15,457
|
|
$
|
18,533
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining & Marketing (R&M)
Segment adjusted EBITDA was $4.4
billion in the third quarter of 2023, versus $5.5 billion for the third quarter of 2022.
Refining & Marketing segment adjusted EBITDA was $16.06 per barrel for the third quarter of 2023,
versus $19.87 per barrel for the
third quarter of 2022. Segment adjusted EBITDA excludes refining
planned turnaround costs, which totaled $153
million in the third quarter of 2023 and $384 million in the third quarter of
2022. The decrease in segment adjusted EBITDA was driven by
lower market crack spreads.
R&M margin was $26.16 per
barrel for the third quarter of 2023, versus $30.21 per barrel for the third quarter of 2022.
Crude capacity utilization was approximately 94%, resulting in
total throughput of 3.0 million barrels per day for the third
quarter of 2023.
Refining operating costs per barrel were $5.14 for the third quarter of 2023, versus
$5.63 for the third quarter of
2022. This decrease was primarily driven by lower energy
costs.
Midstream
Segment adjusted EBITDA was $1.5
billion in the third quarter of 2023, versus $1.5 billion for the third quarter of 2022. The
results were primarily driven by higher rates, growth from equity
affiliates, and higher total throughputs, partially offset by lower
natural gas liquids prices. Third-quarter 2023 segment
adjusted EBITDA excludes Garyville incident response costs of
$63 million.
Corporate and Items Not Allocated
Corporate expenses totaled $246
million in the third quarter of 2023, compared with
$173 million in the third quarter of
2022. The variance was primarily driven by a $35 million charge related to valuation of
existing performance-based stock compensation expense and
$25 million of non-operating
equipment disposal expense.
In the third quarter of 2023, items not allocated to segments
include a $106 million gain on the
sale of the company's interest in the South Texas Gateway Terminal.
In the third quarter of 2022, items not allocated to segments
include a $549 million gain for the
contribution of the Martinez assets to the Martinez Renewables LLC
joint venture and a $509 million gain
related to an MPLX LP (NYSE: MPLX) reclassification of a
third-party contract. These have been excluded from the company's
adjusted results.
Financial Position, Liquidity, and Return of Capital
As of September 30, 2023, MPC had $13.1 billion of cash, cash equivalents, and
short-term investments and $5 billion
available on its bank revolving credit facility.
In the third quarter, the company returned approximately
$3.1 billion of capital to
shareholders through $2.8
billion of share repurchases and $297 million of dividends. Through
October 27, the company repurchased
an additional $1.0 billion of company
shares.
On October 25, MPC announced that
its Board of Directors approved an increase to the quarterly
dividend to $0.825 per share. The
dividend is payable December 11, 2023
to shareholders of record on November
16, 2023.
Additionally, the Board of Directors approved an incremental
$5 billion share repurchase
authorization. With the addition of this new authorization, the
company has a total of $8.3 billion
available under its share repurchase authorizations as of
October 27.
Strategic and Operations Update
At the Martinez Renewables LLC fuels facility, construction
activities are progressing. Pretreatment capabilities are
increasing through the second half of 2023, and the facility is
expected to produce 730 million gallons per year by the end of
2023.
MPC's Midstream segment remains focused on executing the
strategic priorities of strict capital discipline, fostering a
low-cost culture, and optimizing the portfolio. MPLX is advancing
growth projects anchored in the Marcellus, Permian and Bakken
basins.
Fourth Quarter 2023 Outlook
Refining &
Marketing Segment:
|
|
|
Refining operating
costs per barrel(a)
|
$
|
5.60
|
Distribution costs (in
millions)
|
$
|
1,450
|
Refining planned
turnaround costs (in millions)
|
$
|
300
|
Depreciation and
amortization (in millions)
|
$
|
480
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
Crude oil refined
|
|
2,630
|
Other charge and blendstocks
|
|
260
|
Total
|
|
2,890
|
|
|
|
Corporate (in
millions)
|
$
|
175
|
|
|
|
|
|
(a)
|
Excludes refining
planned turnaround and depreciation and amortization
expense
|
Conference Call
At 11:00 a.m. ET today, MPC will
hold a conference call and webcast to discuss the reported results
and provide an update on company operations. Interested parties may
listen by visiting MPC's website at www.marathonpetroleum.com.
A replay of the webcast will be available on the company's website
for two weeks. Financial information, including the earnings
release and other investor-related materials, will also be
available online prior to the conference call and webcast
at www.marathonpetroleum.com.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated,
downstream energy company headquartered in Findlay, Ohio. The company operates the
nation's largest refining system. MPC's marketing system includes
branded locations across the United
States, including Marathon brand retail outlets. MPC also
owns the general partner and majority limited partner interest in
MPLX LP, a midstream company that owns and operates gathering,
processing, and fractionation assets, as well as crude oil and
light product transportation and logistics infrastructure. More
information is available at www.marathonpetroleum.com.
Investor Relations Contacts: (419)
421-2071
Kristina Kazarian,
Vice President, Finance and Investor Relations
Brian Worthington, Director,
Investor Relations
Kenan Kinsey, Supervisor, Investor
Relations
Media Contact: (419) 421-3577
Jamal Kheiry,
Communications Manager
References to Earnings and Defined Terms
References to earnings mean net income attributable to MPC
from the statements of income. Unless otherwise indicated,
references to earnings and earnings per share are MPC's share after
excluding amounts attributable to noncontrolling interests.
Forward-Looking Statements
This press release contains forward-looking statements
regarding MPC. These forward-looking statements may relate to,
among other things, MPC's expectations, estimates and projections
concerning its business and operations, financial priorities,
strategic plans and initiatives, capital return plans, capital
expenditure plans, operating cost reduction objectives, and
environmental, social and governance ("ESG") plans and goals,
including those related to greenhouse gas emissions and intensity
reduction targets, freshwater withdrawal intensity reduction
targets, diversity and inclusion targets and ESG reporting.
Forward-looking and other statements regarding our ESG plans and
goals are not an indication that these statements are material to
investors or are required to be disclosed in our filings with the
Securities Exchange Commission (SEC). In addition, historical,
current, and forward-looking ESG-related statements may be based on
standards for measuring progress that are still developing,
internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future. You can
identify forward-looking statements by words such as "anticipate,"
"believe," "commitment," "could," "design," "estimate," "expect,"
"forecast," "goal," "guidance," "intend," "may," "objective,"
"opportunity," "outlook," "plan," "policy," "position,"
"potential," "predict," "priority," "project," "prospective,"
"pursue," "seek," "should," "strategy," "target," "will," "would"
or other similar expressions that convey the uncertainty of future
events or outcomes. MPC cautions that these statements are based on
management's current knowledge and expectations and are subject to
certain risks and uncertainties, many of which are outside of the
control of MPC, that could cause actual results and events to
differ materially from the statements made herein. Factors that
could cause MPC's actual results to differ materially from those
implied in the forward-looking statements include but are not
limited to: political or regulatory developments, including changes
in governmental policies relating to refined petroleum products,
crude oil, natural gas, NGLs, or renewables, or taxation;
volatility in and degradation of general economic, market, industry
or business conditions due to inflation, rising interest rates, the
military conflict between Russia
and Ukraine, hostilities in the
Middle East, future resurgences of
the COVID-19 pandemic or otherwise; the regional, national and
worldwide demand for refined products and renewables and related
margins; the regional, national or worldwide availability and
pricing of crude oil, natural gas, NGLs and other feedstocks and
related pricing differentials; the adequacy of capital resources
and liquidity and timing and amounts of free cash flow necessary to
execute our business plans, effect future share repurchases and to
maintain or grow our dividend; the success or timing of completion
of ongoing or anticipated projects, including meeting the expected
production rates for the Martinez renewable fuels facility and STAR
project within the expected timeframes if at all; the timing and
ability to obtain necessary regulatory approvals and permits and to
satisfy other conditions necessary to complete planned projects or
to consummate planned transactions within the expected timeframes
if at all; the availability of desirable strategic alternatives to
optimize portfolio assets and the ability to obtain regulatory and
other approvals with respect thereto; our ability to successfully
implement our sustainable energy strategy and principles and
achieve our ESG plans and goals within the expected timeframes if
at all; changes in government incentives for emission-reduction
products and technologies; the outcome of research and development
efforts to create future technologies necessary to achieve our ESG
plans and goals; our ability to scale projects and technologies on
a commercially competitive basis; changes in regional and global
economic growth rates and consumer preferences, including consumer
support for emission-reduction products and technology; accidents
or other unscheduled shutdowns affecting our refineries, machinery,
pipelines, processing, fractionation and treating facilities or
equipment, means of transportation, or those of our suppliers or
customers; our ability to maintain adequate insurance coverage and
recover insurance proceeds to offset losses resulting from
accidents or other incidents and unscheduled shutdowns; the
imposition of windfall profit taxes or maximum refining margin
penalties on companies operating within the energy industry in
California or other jurisdictions;
the impact of adverse market conditions or other similar risks to
those identified herein affecting MPLX; and the factors set
forth under the heading "Risk Factors" in MPC's and MPLX's Annual
Reports on Form 10-K for the year ended Dec.
31, 2022, and in other filings with the SEC. Any
forward-looking statement speaks only as of the date of the
applicable communication and we undertake no obligation to update
any forward-looking statement except to the extent required by
applicable law.
Copies of MPC's Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other SEC filings are available on the SEC's
website, MPC's website at
https://www.marathonpetroleum.com/Investors/ or by contacting MPC's
Investor Relations office. Copies of MPLX's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other SEC filings are
available on the SEC's website, MPLX's website at
http://ir.mplx.com or by contacting MPLX's Investor Relations
office.
Consolidated Statements of Income (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In millions, except
per-share data)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
other operating revenues
|
$
|
40,917
|
|
$
|
45,787
|
|
$
|
112,124
|
|
$
|
137,640
|
Income from
equity method investments
|
|
215
|
|
|
180
|
|
|
547
|
|
|
469
|
Net gain on
disposal of assets
|
|
110
|
|
|
1,051
|
|
|
126
|
|
|
1,072
|
Other
income
|
|
341
|
|
|
219
|
|
|
687
|
|
|
678
|
Total revenues
and other income
|
|
41,583
|
|
|
47,237
|
|
|
113,484
|
|
|
139,859
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues (excludes items below)
|
|
34,928
|
|
|
38,821
|
|
|
95,984
|
|
|
118,096
|
Depreciation and amortization
|
|
845
|
|
|
794
|
|
|
2,479
|
|
|
2,418
|
Selling,
general and administrative expenses
|
|
824
|
|
|
712
|
|
|
2,219
|
|
|
2,009
|
Other
taxes
|
|
233
|
|
|
224
|
|
|
683
|
|
|
606
|
Total costs and
expenses
|
|
36,830
|
|
|
40,551
|
|
|
101,365
|
|
|
123,129
|
Income from
operations
|
|
4,753
|
|
|
6,686
|
|
|
12,119
|
|
|
16,730
|
Net interest and other
financial costs
|
|
118
|
|
|
240
|
|
|
414
|
|
|
814
|
Income before income
taxes
|
|
4,635
|
|
|
6,446
|
|
|
11,705
|
|
|
15,916
|
Provision for income
taxes
|
|
1,004
|
|
|
1,426
|
|
|
2,410
|
|
|
3,507
|
Net
income
|
|
3,631
|
|
|
5,020
|
|
|
9,295
|
|
|
12,409
|
Less net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
25
|
|
|
23
|
|
|
71
|
|
|
65
|
Noncontrolling
interests
|
|
326
|
|
|
520
|
|
|
994
|
|
|
1,149
|
Net income
attributable to MPC
|
$
|
3,280
|
|
$
|
4,477
|
|
$
|
8,230
|
|
$
|
11,195
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to MPC per share
|
$
|
8.31
|
|
$
|
9.12
|
|
$
|
19.66
|
|
$
|
21.18
|
Weighted average
shares outstanding (in millions)
|
|
394
|
|
|
491
|
|
|
418
|
|
|
528
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to MPC per share
|
$
|
8.28
|
|
$
|
9.06
|
|
$
|
19.57
|
|
$
|
21.04
|
Weighted average shares
outstanding (in millions)
|
|
396
|
|
|
494
|
|
|
420
|
|
|
532
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Summary (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing
|
$
|
3,757
|
|
$
|
4,625
|
|
$
|
9,076
|
|
$
|
12,527
|
Midstream
|
|
1,136
|
|
|
1,176
|
|
|
3,550
|
|
|
3,374
|
Corporate
|
|
(246)
|
|
|
(173)
|
|
|
(613)
|
|
|
(494)
|
Income from operations
before items not allocated to segments
|
|
4,647
|
|
|
5,628
|
|
|
12,013
|
|
|
15,407
|
Items not allocated to
segments:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
106
|
|
|
1,058
|
|
|
106
|
|
|
1,058
|
Renewable volume
obligation requirements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
238
|
Litigation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
Income from
operations
|
$
|
4,753
|
|
$
|
6,686
|
|
$
|
12,119
|
|
$
|
16,730
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures and Investments (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing
|
$
|
255
|
|
$
|
445
|
|
$
|
919
|
|
$
|
1,004
|
Midstream
|
|
234
|
|
|
267
|
|
|
748
|
|
|
772
|
Corporate(a)
|
|
33
|
|
|
77
|
|
|
107
|
|
|
163
|
Total
|
$
|
522
|
|
$
|
789
|
|
$
|
1,774
|
|
$
|
1,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes capitalized
interest of $9 million, $28 million, $43 million and $76 million
for the third quarter 2023, the third quarter 2022, the first nine
months of 2023 and the first nine months of 2022,
respectively.
|
Refining & Marketing Operating Statistics
(unaudited)
Dollar per Barrel
of Net Refinery Throughput
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing margin, excluding LIFO inventory
credit(a)
|
$
|
26.16
|
|
$
|
30.31
|
|
$
|
24.80
|
|
$
|
28.08
|
LIFO inventory
credit
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
|
(0.03)
|
Refining &
Marketing margin(a)
|
$
|
26.16
|
|
$
|
30.21
|
|
$
|
24.80
|
|
$
|
28.05
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Refining operating
costs(b)
|
|
5.14
|
|
|
5.63
|
|
|
5.32
|
|
|
5.35
|
Distribution
costs(c)
|
|
5.44
|
|
|
4.90
|
|
|
5.29
|
|
|
4.82
|
Other (income)
loss(d)
|
|
(0.48)
|
|
|
(0.09)
|
|
|
(0.16)
|
|
|
(0.13)
|
LIFO inventory
credit
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
|
(0.03)
|
Refining &
Marketing segment adjusted EBITDA
|
|
16.06
|
|
|
19.87
|
|
|
14.35
|
|
|
18.04
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Refining planned
turnaround costs
|
|
0.56
|
|
|
1.39
|
|
|
1.14
|
|
|
0.84
|
Depreciation and
amortization
|
|
1.70
|
|
|
1.66
|
|
|
1.78
|
|
|
1.72
|
LIFO inventory
charge
|
|
—
|
|
|
0.10
|
|
|
—
|
|
|
0.03
|
Refining &
Marketing income from operations
|
$
|
13.80
|
|
$
|
16.72
|
|
$
|
11.43
|
|
$
|
15.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees paid to MPLX
included in distribution costs above
|
$
|
3.58
|
|
$
|
3.34
|
|
$
|
3.60
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Sales revenue less cost
of refinery inputs and purchased products, divided by net refinery
throughput.
|
(b)
|
Excludes refining
planned turnaround and depreciation and amortization
expense.
|
(c)
|
Excludes depreciation
and amortization expense.
|
(d)
|
Includes income (loss)
from equity method investments, net gain (loss) on disposal of
assets and other income.
|
Refining &
Marketing - Supplemental Operating Data
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing refined product sales volume
(mbpd)(a)
|
|
3,596
|
|
|
3,587
|
|
|
3,510
|
|
|
3,500
|
Crude oil refining
capacity (mbpcd)(b)
|
|
2,936
|
|
|
2,887
|
|
|
2,911
|
|
|
2,887
|
Crude oil capacity
utilization (percent)(b)
|
|
94
|
|
|
98
|
|
|
92
|
|
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
2,773
|
|
|
2,823
|
|
|
2,680
|
|
|
2,781
|
Other charge and blendstocks
|
|
186
|
|
|
184
|
|
|
228
|
|
|
189
|
Net refinery
throughputs
|
|
2,959
|
|
|
3,007
|
|
|
2,908
|
|
|
2,970
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
46
|
|
|
48
|
|
|
44
|
|
|
48
|
Sweet crude oil
throughput (percent)
|
|
54
|
|
|
52
|
|
|
56
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
1,511
|
|
|
1,501
|
|
|
1,506
|
|
|
1,507
|
Distillates
|
|
1,061
|
|
|
1,134
|
|
|
1,040
|
|
|
1,079
|
Propane
|
|
65
|
|
|
73
|
|
|
66
|
|
|
72
|
NGLs
and petrochemicals
|
|
202
|
|
|
199
|
|
|
196
|
|
|
194
|
Heavy fuel oil
|
|
74
|
|
|
43
|
|
|
55
|
|
|
61
|
Asphalt
|
|
87
|
|
|
91
|
|
|
84
|
|
|
90
|
Total
|
|
3,000
|
|
|
3,041
|
|
|
2,947
|
|
|
3,003
|
Inter-region refinery
transfers excluded from throughput and yields above
(mbpd)
|
|
80
|
|
|
97
|
|
|
56
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes intersegment
sales.
|
(b)
|
Based on calendar day
capacity, which is an annual average that includes downtime for
planned maintenance and other normal operating
activities.
|
Refining & Marketing - Supplemental Operating Data by
Region (unaudited)
The per barrel for Refining & Marketing margin is calculated
based on net refinery throughput (excludes inter-refinery transfer
volumes). The per barrel for the refining operating costs, refining
planned turnaround costs and refining depreciation and amortization
for the regions, as shown in the tables below, is calculated based
on the gross refinery throughput (includes inter-refinery transfer
volumes).
Refining operating costs exclude refining planned turnaround
costs and refining depreciation and amortization expense.
Gulf Coast
Region
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
22.30
|
|
$
|
27.39
|
|
$
|
22.34
|
|
$
|
26.89
|
Refining operating
costs
|
|
4.16
|
|
|
4.14
|
|
|
4.05
|
|
|
4.17
|
Refining planned
turnaround costs
|
|
0.86
|
|
|
1.31
|
|
|
1.20
|
|
|
0.91
|
Refining depreciation
and amortization
|
|
1.30
|
|
|
1.16
|
|
|
1.39
|
|
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,104
|
|
|
1,190
|
|
|
1,064
|
|
|
1,139
|
Other charge and blendstocks
|
|
162
|
|
|
171
|
|
|
181
|
|
|
156
|
Gross refinery
throughputs
|
|
1,266
|
|
|
1,361
|
|
|
1,245
|
|
|
1,295
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
59
|
|
|
59
|
|
|
52
|
|
|
58
|
Sweet crude oil
throughput (percent)
|
|
41
|
|
|
41
|
|
|
48
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
627
|
|
|
655
|
|
|
637
|
|
|
635
|
Distillates
|
|
434
|
|
|
508
|
|
|
435
|
|
|
463
|
Propane
|
|
36
|
|
|
43
|
|
|
37
|
|
|
41
|
NGLs
and petrochemicals
|
|
117
|
|
|
116
|
|
|
115
|
|
|
115
|
Heavy fuel oil
|
|
66
|
|
|
44
|
|
|
34
|
|
|
45
|
Asphalt
|
|
17
|
|
|
21
|
|
|
18
|
|
|
20
|
Total
|
|
1,297
|
|
|
1,387
|
|
|
1,276
|
|
|
1,319
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
55
|
|
|
66
|
|
|
33
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Continent
Region
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
25.38
|
|
$
|
31.04
|
|
$
|
25.37
|
|
$
|
27.14
|
Refining operating
costs
|
|
4.74
|
|
|
5.36
|
|
|
5.06
|
|
|
4.99
|
Refining planned
turnaround costs
|
|
0.26
|
|
|
1.47
|
|
|
0.82
|
|
|
0.74
|
Refining depreciation
and amortization
|
|
1.48
|
|
|
1.53
|
|
|
1.53
|
|
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,149
|
|
|
1,122
|
|
|
1,124
|
|
|
1,130
|
Other charge and blendstocks
|
|
73
|
|
|
66
|
|
|
70
|
|
|
65
|
Gross refinery
throughputs
|
|
1,222
|
|
|
1,188
|
|
|
1,194
|
|
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
25
|
|
|
26
|
|
|
26
|
|
|
26
|
Sweet crude oil
throughput (percent)
|
|
75
|
|
|
74
|
|
|
74
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
629
|
|
|
601
|
|
|
619
|
|
|
615
|
Distillates
|
|
439
|
|
|
439
|
|
|
428
|
|
|
428
|
Propane
|
|
20
|
|
|
19
|
|
|
20
|
|
|
21
|
NGLs
and petrochemicals
|
|
55
|
|
|
55
|
|
|
51
|
|
|
52
|
Heavy fuel oil
|
|
13
|
|
|
8
|
|
|
13
|
|
|
14
|
Asphalt
|
|
69
|
|
|
69
|
|
|
66
|
|
|
69
|
Total
|
|
1,225
|
|
|
1,191
|
|
|
1,197
|
|
|
1,199
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
9
|
|
|
7
|
|
|
8
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
West Coast
Region
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
36.65
|
|
$
|
35.83
|
|
$
|
29.31
|
|
$
|
32.97
|
Refining operating
costs
|
|
7.56
|
|
|
8.88
|
|
|
8.35
|
|
|
8.11
|
Refining planned
turnaround costs
|
|
0.45
|
|
|
1.17
|
|
|
1.59
|
|
|
0.78
|
Refining depreciation
and amortization
|
|
1.27
|
|
|
1.30
|
|
|
1.37
|
|
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
520
|
|
|
511
|
|
|
492
|
|
|
512
|
Other charge and blendstocks
|
|
31
|
|
|
44
|
|
|
33
|
|
|
45
|
Gross refinery
throughputs
|
|
551
|
|
|
555
|
|
|
525
|
|
|
557
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
63
|
|
|
72
|
|
|
69
|
|
|
71
|
Sweet crude oil
throughput (percent)
|
|
37
|
|
|
28
|
|
|
31
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
287
|
|
|
280
|
|
|
273
|
|
|
287
|
Distillates
|
|
192
|
|
|
198
|
|
|
182
|
|
|
195
|
Propane
|
|
9
|
|
|
11
|
|
|
9
|
|
|
10
|
NGLs
and petrochemicals
|
|
36
|
|
|
34
|
|
|
37
|
|
|
34
|
Heavy fuel oil
|
|
33
|
|
|
36
|
|
|
29
|
|
|
35
|
Asphalt
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
Total
|
|
558
|
|
|
560
|
|
|
530
|
|
|
562
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
16
|
|
|
24
|
|
|
15
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream Operating Statistics (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Pipeline throughputs
(mbpd)(a)
|
|
5,980
|
|
|
5,845
|
|
|
5,904
|
|
|
5,761
|
Terminal throughputs
(mbpd)
|
|
3,228
|
|
|
3,026
|
|
|
3,167
|
|
|
3,023
|
Gathering system
throughputs (million cubic feet per day)(b)
|
|
6,257
|
|
|
6,083
|
|
|
6,258
|
|
|
5,664
|
Natural gas processed
(million cubic feet per day)(b)
|
|
8,961
|
|
|
8,516
|
|
|
8,835
|
|
|
8,401
|
C2 (ethane) + NGLs
fractionated (mbpd)(b)
|
|
613
|
|
|
562
|
|
|
596
|
|
|
541
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes common-carrier
pipelines and private pipelines contributed to MPLX. Excludes
equity method affiliate pipeline volumes.
|
(b)
|
Includes amounts
related to unconsolidated equity method investments on a 100%
basis.
|
Select Financial Data (unaudited)
|
|
September
30,
2023
|
|
|
June
30,
2023
|
(In
millions)
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
8,452
|
|
$
|
7,345
|
Short-term
investments
|
|
4,604
|
|
|
4,109
|
Total consolidated
debt(a)
|
|
27,282
|
|
|
27,283
|
MPC debt
|
|
6,864
|
|
|
6,877
|
MPLX debt
|
|
20,418
|
|
|
20,406
|
Redeemable
noncontrolling interest
|
|
970
|
|
|
968
|
Equity
|
|
31,828
|
|
|
31,600
|
Shares
outstanding
|
|
386
|
|
|
405
|
|
|
|
|
|
|
(a)
|
Net of unamortized debt
issuance costs and unamortized premium/discount, net.
|
Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our
operating performance that are calculated and presented on the
basis of methodologies other than in accordance with GAAP. The
non-GAAP financial measures we use are as follows:
Adjusted Net Income Attributable to MPC
Adjusted net income attributable to MPC is defined as net income
attributable to MPC excluding the items in the table below, along
with their related income tax effect. We have excluded these items
because we believe that they are not indicative of our core
operating performance and that their exclusion results in an
important measure of our ongoing financial performance to better
assess our underlying business results and trends.
Adjusted Diluted Earnings Per Share
Adjusted diluted earnings per share is defined as adjusted net
income attributable to MPC divided by the number of
weighted-average shares outstanding in the applicable period,
assuming dilution.
Reconciliation of Net Income Attributable to MPC to Adjusted
Net Income Attributable to MPC (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net income
attributable to MPC
|
$
|
3,280
|
|
$
|
4,477
|
|
$
|
8,230
|
|
$
|
11,195
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Garyville incident
response costs
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
Gain on sale of
assets
|
|
(106)
|
|
|
(1,058)
|
|
|
(106)
|
|
|
(1,058)
|
LIFO inventory
credit
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
Renewable volume
obligation requirements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(238)
|
Tax impact of
adjustments(a)
|
|
9
|
|
|
227
|
|
|
9
|
|
|
279
|
Non-controlling
interest impact of adjustments
|
|
(22)
|
|
|
183
|
|
|
(22)
|
|
|
183
|
Adjusted net income
attributable to MPC
|
$
|
3,224
|
|
$
|
3,857
|
|
$
|
8,174
|
|
$
|
10,389
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
$
|
8.28
|
|
$
|
9.06
|
|
$
|
19.57
|
|
$
|
21.04
|
Adjusted diluted
income per share
|
$
|
8.14
|
|
$
|
7.81
|
|
$
|
19.44
|
|
$
|
19.53
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Income taxes for
adjusted earnings were calculated by applying a combined federal
and state statutory tax rate of 22% to the pre-tax adjustments. The
corresponding adjustments to reported income taxes are shown in the
table above.
|
|
|
Adjusted EBITDA
Amounts included in net income (loss) attributable to MPC and
excluded from adjusted EBITDA include (i) net interest and other
financial costs; (ii) provision/benefit for income taxes; (iii)
noncontrolling interests; (iv) depreciation and amortization; (v)
refining planned turnaround costs and (vi) other adjustments as
deemed necessary, as shown in the table below. We believe excluding
turnaround costs from this metric is useful for comparability to
other companies as certain of our competitors defer these costs and
amortize them between turnarounds.
Adjusted EBITDA is a financial performance measure used by
management, industry analysts, investors, lenders, and rating
agencies to assess the financial performance and operating results
of our ongoing business operations. Additionally, we believe
adjusted EBITDA provides useful information to investors for
trending, analyzing and benchmarking our operating results from
period to period as compared to other companies that may have
different financing and capital structures. Adjusted EBITDA should
not be considered as a substitute for, or superior to income (loss)
from operations, net income attributable to MPC, income before
income taxes, cash flows from operating activities or any other
measure of financial performance presented in accordance with GAAP.
Adjusted EBITDA may not be comparable to similarly titled measures
reported by other companies.
Reconciliation of Net Income Attributable to MPC to Adjusted
EBITDA (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net income
attributable to MPC
|
$
|
3,280
|
|
$
|
4,477
|
|
$
|
8,230
|
|
$
|
11,195
|
Net income
attributable to noncontrolling interests
|
|
351
|
|
|
543
|
|
|
1,065
|
|
|
1,214
|
Provision for income
taxes
|
|
1,004
|
|
|
1,426
|
|
|
2,410
|
|
|
3,507
|
Net interest and other
financial costs
|
|
118
|
|
|
240
|
|
|
414
|
|
|
814
|
Depreciation and
amortization
|
|
845
|
|
|
794
|
|
|
2,479
|
|
|
2,418
|
Refining planned
turnaround costs
|
|
153
|
|
|
384
|
|
|
902
|
|
|
680
|
Garyville incident
response costs
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
LIFO inventory
credit
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
Gain on sale of
assets
|
|
(106)
|
|
|
(1,058)
|
|
|
(106)
|
|
|
(1,058)
|
Renewable volume
obligation requirements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(238)
|
Litigation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27)
|
Adjusted
EBITDA
|
$
|
5,708
|
|
$
|
6,834
|
|
$
|
15,457
|
|
$
|
18,533
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining & Marketing Margin
Refining & Marketing margin is defined as sales revenue less
cost of refinery inputs and purchased products. We believe this
non-GAAP financial measure is used to evaluate our Refining &
Marketing segment's operating and financial performance as it is
the most comparable measure to the industry's market reference
product margins. This measure should not be considered a substitute
for, or superior to, Refining & Marketing gross margin or other
measures of financial performance prepared in accordance with GAAP,
and our calculations thereof may not be comparable to similarly
titled measures reported by other companies.
Reconciliation of Refining & Marketing Segment Adjusted
EBITDA to Refining & Marketing Gross Margin and Refining &
Marketing Margin (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing segment adjusted EBITDA
|
$
|
4,373
|
|
$
|
5,496
|
|
$
|
11,389
|
|
$
|
14,630
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(463)
|
|
|
(459)
|
|
|
(1,411)
|
|
|
(1,395)
|
Refining planned
turnaround costs
|
|
(153)
|
|
|
(384)
|
|
|
(902)
|
|
|
(680)
|
LIFO inventory
charge
|
|
—
|
|
|
(28)
|
|
|
—
|
|
|
(28)
|
Selling, general and
administrative expenses
|
|
658
|
|
|
614
|
|
|
1,846
|
|
|
1,696
|
Income from equity
method investments
|
|
(24)
|
|
|
(21)
|
|
|
(5)
|
|
|
(39)
|
Net gain on
disposal of assets
|
|
(1)
|
|
|
—
|
|
|
(4)
|
|
|
(37)
|
Other
income
|
|
(313)
|
|
|
(191)
|
|
|
(605)
|
|
|
(606)
|
Refining &
Marketing gross margin
|
|
4,077
|
|
|
5,027
|
|
|
10,308
|
|
|
13,541
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
|
2,608
|
|
|
2,861
|
|
|
8,101
|
|
|
7,804
|
Depreciation and
amortization
|
|
463
|
|
|
459
|
|
|
1,411
|
|
|
1,395
|
Gross margin excluded
from and other income included in Refining & Marketing
margin(a)
|
|
51
|
|
|
51
|
|
|
79
|
|
|
136
|
Other taxes included
in Refining & Marketing margin
|
|
(77)
|
|
|
(40)
|
|
|
(217)
|
|
|
(132)
|
Refining &
Marketing margin
|
|
7,122
|
|
|
8,358
|
|
|
19,682
|
|
|
22,744
|
LIFO inventory
charge
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
Refining &
Marketing margin, excluding LIFO inventory charge
|
$
|
7,122
|
|
$
|
8,386
|
|
$
|
19,682
|
|
$
|
22,772
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin by region:
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Coast
|
$
|
2,483
|
|
$
|
3,264
|
|
$
|
7,393
|
|
$
|
9,161
|
Mid-Continent
|
|
2,834
|
|
|
3,373
|
|
|
8,213
|
|
|
8,801
|
West Coast
|
|
1,805
|
|
|
1,749
|
|
|
4,076
|
|
|
4,810
|
Refining &
Marketing margin
|
$
|
7,122
|
|
$
|
8,386
|
|
$
|
19,682
|
|
$
|
22,772
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Reflects the gross
margin, excluding depreciation and amortization, of other related
operations included in the Refining & Marketing segment and
processing of credit card transactions on behalf of certain of our
marketing customers, net of other income.
|
|
|
View original
content:https://www.prnewswire.com/news-releases/marathon-petroleum-corp-reports-third-quarter-2023-results-301972522.html
SOURCE Marathon Petroleum Corporation