FINDLAY,
Ohio, May 2, 2023 /PRNewswire/ --
- First-quarter net income attributable to MPC of
$2.7 billion, or $6.09 per diluted share; adj. EBITDA of
$5.2 billion
- Net cash provided by operating activities of $4.1 billion, reflecting strong
execution
- Commenced STAR project operations; progressed Martinez
Renewable Fuels facility into Phase II
- Returned $3.5 billion of
capital through $3.2 billion of share
repurchases and $337 million of
dividends
- Announced additional $5
billion share repurchase authorization
Marathon Petroleum Corp. (NYSE: MPC) today reported net income
attributable to MPC of $2.7 billion,
or $6.09 per diluted share, for the
first quarter of 2023, compared with net income attributable to MPC
of $845 million, or $1.49 per diluted share, for the first quarter of
2022.
Adjusted earnings before interest, taxes, depreciation, and
amortization (adjusted EBITDA) was $5.2
billion for the first quarter of 2023, compared with
$2.6 billion for the first quarter of
2022.
"Our first-quarter results reflect strong operational and
commercial execution across the company," said President and Chief
Executive Officer Michael J.
Hennigan. "The business generated $4.1 billion of net cash provided by operating
activities in the first quarter. We continue to enhance our
portfolio, including the Galveston Bay STAR project, which
successfully commenced operations in April and the Martinez
Renewables facility, which continues to progress Phase II. We
returned over $3.5 billion through
share repurchases and dividends during the quarter."
Results from
Operations
|
|
Adjusted EBITDA
(unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2023
|
|
|
2022
|
Refining &
Marketing Segment
|
|
|
|
|
|
Segment income from
operations
|
$
|
3,032
|
|
$
|
768
|
Add: Depreciation and
amortization
|
|
464
|
|
|
461
|
Refining planned
turnaround costs
|
|
357
|
|
|
145
|
Refining &
Marketing segment adjusted EBITDA
|
|
3,853
|
|
|
1,374
|
|
|
|
|
|
|
Midstream
Segment
|
|
|
|
|
|
Segment income from
operations
|
|
1,213
|
|
|
1,072
|
Add: Depreciation and
amortization
|
|
317
|
|
|
331
|
Midstream segment
adjusted EBITDA
|
|
1,530
|
|
|
1,403
|
|
|
|
|
|
|
Subtotal
|
|
5,383
|
|
|
2,777
|
Corporate
|
|
(184)
|
|
|
(151)
|
Add: Depreciation and
amortization
|
|
19
|
|
|
13
|
Adjusted
EBITDA
|
$
|
5,218
|
|
$
|
2,639
|
|
|
|
|
|
|
Refining & Marketing (R&M)
Segment adjusted EBITDA was $3.9
billion in the first quarter of 2023, versus $1.4 billion for the first quarter of 2022.
Refining and Marketing segment adjusted EBITDA was $15.09 per barrel for the first quarter of 2023,
versus $5.39 per barrel for the first
quarter of 2022. Segment adjusted EBITDA excludes refining planned
turnaround costs, which totaled $357
million in the first quarter of 2023 and $145 million in the first quarter of
2022. The increase in segment adjusted EBITDA was driven by
higher R&M margins.
R&M margin was $26.15 per
barrel for the first quarter of 2023, versus $15.31 per barrel for the first quarter of 2022.
Crude capacity utilization was approximately 89%, driven by planned
maintenance activity in the Gulf Coast region, resulting in total
throughput of 2.8 million barrels per day for the first quarter of
2023.
Refining operating costs per barrel were $5.68 for the first quarter of 2023, versus
$5.22 for the first quarter of
2022. This increase was primarily driven by higher expenses
for projects conducted during turnaround activity.
Midstream
Segment adjusted EBITDA was $1.5
billion in the first quarter of 2023, versus $1.4 billion for the first quarter of 2022, as
growth in throughputs and higher rates more than offset lower
natural gas liquids prices.
Corporate and Items Not Allocated
Corporate expenses totaled $184
million in the first quarter of 2023, compared with
$151 million in the first quarter of
2022.
Financial Position, Liquidity, and Return of Capital
As of March 31, 2023, MPC had $11.5
billion of cash, cash equivalents, and short-term
investments and $5 billion available
on its bank revolving credit facility.
In the first quarter, the company returned $3.5 billion of capital through $3.2 billion of share repurchases and
$337 million of dividends. And, in
April, the company repurchased $1.2
billion of company shares.
Additionally, the Board of Directors has approved an incremental
$5 billion share repurchase
authorization. With the addition of this new authorization, the
company has a total of $9.0 billion
available under its share repurchase authorization. The
authorization has no expiration date. MPC may utilize various
methods to effect the repurchases, which could include open market
repurchases, negotiated block transactions, accelerated share
repurchases, tender offers or open market solicitations for shares,
some of which may be effected through Rule 10b5-1 plans. The timing
of repurchases will depend upon several factors, including market
and business conditions, and repurchases may be discontinued at any
time.
Strategic and Operations Update
The Martinez Renewable Fuels facility reached full Phase I
production capacity of 260 million gallons per year of renewable
fuels, ramping to design rates and yields as planned. Phase II
construction activities are on schedule. Pretreatment capabilities
are expected to come online in the second half of 2023, and the
facility is expected to be capable of producing 730 million gallons
per year by the end of 2023.
At its Galveston Bay refinery, the company completed the STAR
project, which is expected to add 40,000 barrels per day of
incremental crude capacity and 17,000 barrels per day of resid
processing capacity. Start-up activities are progressing with
utilization expected to increase throughout the second quarter of
2023.
The 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.
Second Quarter 2023
Outlook
|
|
Refining &
Marketing Segment:
|
|
|
Refining operating
costs per barrel(a)
|
$
|
5.20
|
Distribution costs (in
millions)
|
$
|
1,350
|
Refining planned
turnaround costs (in millions)
|
$
|
400
|
Depreciation and
amortization (in millions)
|
$
|
480
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
Crude oil refined
|
|
2,645
|
Other charge and blendstocks
|
|
215
|
Total
|
|
2,860
|
|
|
|
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, diversity and
inclusion 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, 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 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; 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; 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
March 31,
|
(In millions, except
per-share data)
|
|
2023
|
|
|
2022
|
Revenues and other
income:
|
|
|
|
|
|
Sales and
other operating revenues
|
$
|
34,864
|
|
$
|
38,058
|
Income from
equity method investments
|
|
133
|
|
|
142
|
Net gain (loss)
on disposal of assets
|
|
3
|
|
|
(18)
|
Other
income
|
|
77
|
|
|
202
|
Total revenues
and other income
|
|
35,077
|
|
|
38,384
|
Costs and
expenses:
|
|
|
|
|
|
Cost of
revenues (excludes items below)
|
|
29,294
|
|
|
35,068
|
Depreciation and amortization
|
|
800
|
|
|
805
|
Selling,
general and administrative expenses
|
|
691
|
|
|
603
|
Other
taxes
|
|
231
|
|
|
192
|
Total costs and
expenses
|
|
31,016
|
|
|
36,668
|
Income from
operations
|
|
4,061
|
|
|
1,716
|
Net interest and other
financial costs
|
|
154
|
|
|
262
|
Income before income
taxes
|
|
3,907
|
|
|
1,454
|
Provision for income
taxes
|
|
823
|
|
|
282
|
Net
income
|
|
3,084
|
|
|
1,172
|
Less net income
attributable to:
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
23
|
|
|
21
|
Noncontrolling
interests
|
|
337
|
|
|
306
|
Net income
attributable to MPC
|
$
|
2,724
|
|
$
|
845
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
Net income attributable
to MPC per share
|
$
|
6.13
|
|
$
|
1.50
|
Weighted average
shares outstanding (in millions)
|
|
444
|
|
|
564
|
Diluted:
|
|
|
|
|
|
Net income attributable
to MPC per share
|
$
|
6.09
|
|
$
|
1.49
|
Weighted average shares
outstanding (in millions)
|
|
447
|
|
|
568
|
|
|
|
|
|
|
Income Summary
(unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2023
|
|
|
2022
|
Refining &
Marketing
|
$
|
3,032
|
|
$
|
768
|
Midstream
|
|
1,213
|
|
|
1,072
|
Corporate
|
|
(184)
|
|
|
(151)
|
Income from operations
before items not allocated to segments
|
|
4,061
|
|
|
1,689
|
Items not allocated to
segments:
|
|
|
|
|
|
Litigation
|
|
—
|
|
|
27
|
Income from
operations
|
$
|
4,061
|
|
$
|
1,716
|
|
|
|
|
|
|
Capital Expenditures
and Investments (unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2023
|
|
|
2022
|
Refining &
Marketing
|
$
|
421
|
|
$
|
244
|
Midstream
|
|
241
|
|
|
283
|
Corporate(a)
|
|
28
|
|
|
46
|
Total
|
$
|
690
|
|
$
|
573
|
|
|
|
|
|
|
(a)
|
Includes capitalized
interest of $21 million and $23 million for the first quarter 2023
and the first quarter 2022, respectively.
|
Refining &
Marketing Operating Statistics (unaudited)
|
|
Dollar per Barrel
of Net Refinery Throughput
|
|
Three Months
Ended
March 31,
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing margin(a)
|
$
|
26.15
|
|
$
|
15.31
|
Less:
|
|
|
|
|
|
Refining operating
costs(b)
|
|
5.68
|
|
|
5.22
|
Distribution
costs(c)
|
|
5.26
|
|
|
4.79
|
Other
income(d)
|
|
0.12
|
|
|
(0.09)
|
Refining &
Marketing segment adjusted EBITDA
|
|
15.09
|
|
|
5.39
|
Less:
|
|
|
|
|
|
Refining planned
turnaround costs
|
|
1.40
|
|
|
0.57
|
Depreciation and
amortization
|
|
1.82
|
|
|
1.81
|
Refining &
Marketing income from operations
|
$
|
11.87
|
|
$
|
3.01
|
|
|
|
|
|
|
Fees paid to MPLX
included in distribution costs above
|
$
|
3.66
|
|
$
|
3.46
|
|
|
|
|
|
|
(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
March 31,
|
|
|
2023
|
|
|
2022
|
Refining &
Marketing refined product sales volume
(mbpd)(a)
|
|
3,352
|
|
|
3,293
|
Crude oil refining
capacity (mbpcd)(b)
|
|
2,898
|
|
|
2,887
|
Crude oil capacity
utilization (percent)(b)
|
|
89
|
|
|
91
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
2,566
|
|
|
2,624
|
Other charge and blendstocks
|
|
271
|
|
|
209
|
Net refinery
throughput
|
|
2,837
|
|
|
2,833
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
41
|
|
|
47
|
Sweet crude oil
throughput (percent)
|
|
59
|
|
|
53
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
1,508
|
|
|
1,483
|
Distillates
|
|
1,024
|
|
|
978
|
Propane
|
|
67
|
|
|
69
|
NGLs
and petrochemicals
|
|
157
|
|
|
161
|
Heavy fuel oil
|
|
31
|
|
|
86
|
Asphalt
|
|
84
|
|
|
87
|
Total
|
|
2,871
|
|
|
2,864
|
Inter-region refinery
transfers excluded from throughput and yields above
(mbpd)
|
|
45
|
|
|
59
|
|
|
|
|
|
|
(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, refining depreciation and amortization expense.
Gulf Coast
Region
|
|
Three Months
Ended
March 31,
|
|
|
2023
|
|
|
2022
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
25.94
|
|
$
|
16.14
|
Refining operating
costs
|
|
4.55
|
|
|
4.51
|
Refining planned
turnaround costs
|
|
2.59
|
|
|
0.80
|
Refining depreciation
and amortization
|
|
1.44
|
|
|
1.41
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
956
|
|
|
1,017
|
Other charge and blendstocks
|
|
195
|
|
|
148
|
Gross refinery
throughput
|
|
1,151
|
|
|
1,165
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
41
|
|
|
57
|
Sweet crude oil
throughput (percent)
|
|
59
|
|
|
43
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
622
|
|
|
595
|
Distillates
|
|
401
|
|
|
374
|
Propane
|
|
38
|
|
|
40
|
NGLs
and petrochemicals
|
|
95
|
|
|
103
|
Heavy fuel oil
|
|
3
|
|
|
56
|
Asphalt
|
|
18
|
|
|
20
|
Total
|
|
1,177
|
|
|
1,188
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
16
|
|
|
28
|
|
|
|
|
|
|
Mid-Continent
Region
|
|
Three Months
Ended
March 31,
|
|
|
2023
|
|
|
2022
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
26.78
|
|
$
|
12.35
|
Refining operating
costs
|
|
5.26
|
|
|
4.64
|
Refining planned
turnaround costs
|
|
0.47
|
|
|
0.28
|
Refining depreciation
and amortization
|
|
1.56
|
|
|
1.60
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
1,111
|
|
|
1,105
|
Other charge and blendstocks
|
|
76
|
|
|
68
|
Gross refinery
throughput
|
|
1,187
|
|
|
1,173
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
27
|
|
|
27
|
Sweet crude oil
throughput (percent)
|
|
73
|
|
|
73
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
621
|
|
|
626
|
Distillates
|
|
437
|
|
|
414
|
Propane
|
|
19
|
|
|
21
|
NGLs
and petrochemicals
|
|
37
|
|
|
38
|
Heavy fuel oil
|
|
11
|
|
|
12
|
Asphalt
|
|
66
|
|
|
67
|
Total
|
|
1,191
|
|
|
1,178
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
7
|
|
|
9
|
|
|
|
|
|
|
West Coast
Region
|
|
Three Months
Ended
March 31,
|
|
|
2023
|
|
|
2022
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
25.16
|
|
$
|
19.99
|
Refining operating
costs
|
|
8.49
|
|
|
7.36
|
Refining planned
turnaround costs
|
|
0.80
|
|
|
0.64
|
Refining depreciation
and amortization
|
|
1.36
|
|
|
1.35
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
499
|
|
|
502
|
Other charge and blendstocks
|
|
45
|
|
|
52
|
Gross refinery
throughput
|
|
544
|
|
|
554
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
73
|
|
|
70
|
Sweet crude oil
throughput (percent)
|
|
27
|
|
|
30
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
279
|
|
|
292
|
Distillates
|
|
190
|
|
|
190
|
Propane
|
|
10
|
|
|
8
|
NGLs
and petrochemicals
|
|
34
|
|
|
29
|
Heavy fuel oil
|
|
35
|
|
|
38
|
Asphalt
|
|
—
|
|
|
—
|
Total
|
|
548
|
|
|
557
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
22
|
|
|
22
|
|
|
|
|
|
|
Midstream Operating
Statistics (unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2023
|
|
|
2022
|
Pipeline throughputs
(mbpd)(a)
|
|
5,697
|
|
|
5,423
|
Terminal throughput
(mbpd)
|
|
3,091
|
|
|
2,941
|
Gathering system
throughput (million cubic feet per day)(b)
|
|
6,359
|
|
|
5,276
|
Natural gas processed
(million cubic feet per day)(b)
|
|
8,605
|
|
|
8,267
|
C2 (ethane) + NGLs
fractionated (mbpd)(b)
|
|
593
|
|
|
526
|
|
|
|
|
|
|
(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)
|
|
|
|
March
31,
2023
|
|
|
December
31,
2022
|
(In
millions)
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
7,960
|
|
$
|
8,625
|
Short-term
investments
|
|
3,492
|
|
|
3,145
|
Total consolidated
debt(a)
|
|
27,280
|
|
|
26,700
|
MPC debt
|
|
6,886
|
|
|
6,904
|
MPLX debt
|
|
20,394
|
|
|
19,796
|
Redeemable
noncontrolling interest
|
|
968
|
|
|
968
|
Equity
|
|
32,695
|
|
|
34,119
|
Shares
outstanding
|
|
430
|
|
|
454
|
|
|
|
|
|
|
(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 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
March 31,
|
(In
millions)
|
|
2023
|
|
|
2022
|
Net income
attributable to MPC
|
$
|
2,724
|
|
$
|
845
|
Net income
attributable to noncontrolling interests
|
|
360
|
|
|
327
|
Provision for income
taxes
|
|
823
|
|
|
282
|
Net interest and other
financial costs
|
|
154
|
|
|
262
|
Depreciation and
amortization
|
|
800
|
|
|
805
|
Refining planned
turnaround costs
|
|
357
|
|
|
145
|
Litigation
|
|
—
|
|
|
(27)
|
Adjusted
EBITDA
|
$
|
5,218
|
|
$
|
2,639
|
|
|
|
|
|
|
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
March 31,
|
(In
millions)
|
|
2023
|
|
|
2022
|
Refining &
Marketing segment adjusted EBITDA
|
$
|
3,853
|
|
$
|
1,374
|
Plus
(Less):
|
|
|
|
|
|
Depreciation and
amortization
|
|
(464)
|
|
|
(461)
|
Refining planned
turnaround costs
|
|
(357)
|
|
|
(145)
|
Selling, general and
administrative expenses
|
|
592
|
|
|
508
|
(Income) loss from
equity method investments
|
|
36
|
|
|
(12)
|
Net gain on disposal
of assets
|
|
(3)
|
|
|
—
|
Other
income
|
|
(51)
|
|
|
(181)
|
Refining &
Marketing gross margin
|
|
3,606
|
|
|
1,083
|
Plus
(Less):
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
|
2,745
|
|
|
2,389
|
Depreciation and
amortization
|
|
464
|
|
|
461
|
Gross margin excluded
from and other income included in Refining & Marketing
margin(a)
|
|
(67)
|
|
|
14
|
Other taxes included
in Refining & Marketing margin
|
|
(71)
|
|
|
(43)
|
Refining &
Marketing margin
|
$
|
6,677
|
|
$
|
3,904
|
|
|
|
|
|
|
Refining &
Marketing margin by region:
|
|
|
|
|
|
Gulf Coast
|
$
|
2,651
|
|
$
|
1,653
|
Mid-Continent
|
|
2,844
|
|
|
1,293
|
West Coast
|
|
1,182
|
|
|
958
|
Refining &
Marketing margin
|
$
|
6,677
|
|
$
|
3,904
|
|
|
|
|
|
|
(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-first-quarter-2023-results-301812871.html
SOURCE Marathon Petroleum Corporation