Marathon Petroleum Corporation (MPC) Bundle
A Brief History of Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) has established itself as a key player in the U.S. refining and marketing industry. As of 2024, the company operates through two primary segments: Refining & Marketing and Midstream, which includes its subsidiary, MPLX.
Financial Performance Overview
In the first nine months of 2024, Marathon Petroleum reported a net income of approximately $3.07 billion, translating to $8.83 per diluted share, down from $8.23 billion or $19.57 per diluted share in the same period of 2023. The company’s total revenues for the nine months ended September 30, 2024, were $105.73 billion, compared to $112.12 billion in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $3.07 billion | $8.23 billion |
| Net Income per Share | $8.83 | $19.57 |
| Total Revenues | $105.73 billion | $112.12 billion |
| Adjusted EBITDA (Refining & Marketing) | $4.90 billion | $11.39 billion |
| Adjusted EBITDA (Midstream) | $4.84 billion | $4.60 billion |
Segment Performance
The Refining & Marketing segment reported revenues of $102.02 billion for the first nine months of 2024, down from $108.53 billion in 2023. The adjusted EBITDA for this segment decreased significantly to $4.90 billion from $11.39 billion over the same period. This decline was primarily attributed to lower refining margins influenced by fluctuating crude oil prices and market conditions.
In contrast, the Midstream segment, which includes MPLX, saw an increase in adjusted EBITDA to $4.84 billion from $4.60 billion. This growth was driven by higher natural gas gathering and processing volumes, along with contributions from newly acquired assets.
Capital Expenditures and Investments
Marathon Petroleum's capital expenditures for the nine months ended September 30, 2024, amounted to $1.70 billion, up from $1.41 billion in the previous year. The company’s capital investment plan for 2024 totals approximately $1.25 billion for various projects. Key investments include upgrades to refining operations and infrastructure improvements in the Midstream sector.
| Capital Expenditure Category | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Refining & Marketing | $967 million | $919 million |
| Midstream | $1.12 billion | $747 million |
| Corporate | $25 million | $64 million |
| Total Capital Expenditures | $1.70 billion | $1.41 billion |
Debt and Share Repurchase Activity
As of September 30, 2024, Marathon Petroleum's total debt was approximately $27.11 billion. The company has been actively managing its capital structure, repurchasing shares worth $7.82 billion in the first nine months of 2024, compared to $9.07 billion in the same period of 2023. The average cost per share repurchased in 2024 was $175.20.
Market Conditions and Future Outlook
Market conditions in 2024 have posed challenges for the refining industry, including lower crack spreads and fluctuating commodity prices. The average WTI crude price for the first nine months of 2024 was $77.61 per barrel. Marathon Petroleum continues to focus on operational efficiencies and strategic acquisitions to enhance its market position.
| Market Indicators | 2024 | 2023 |
|---|---|---|
| WTI Crude Price (per barrel) | $77.61 | $77.28 |
| Refining Margin | $15.69 | $23.21 |
A Who Owns Marathon Petroleum Corporation (MPC)
Ownership Structure
As of 2024, Marathon Petroleum Corporation (MPC) has a diverse ownership structure comprised of institutional investors, retail investors, and company insiders. The largest shareholders include various asset management firms and investment funds.
| Shareholder Type | Number of Shares (in millions) | Ownership Percentage |
|---|---|---|
| Institutional Investors | 245 | 64.4% |
| Retail Investors | 135 | 35.6% |
| Company Insiders | 15 | 4.0% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of MPC as of 2024:
| Institution | Shares Held (in millions) | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 48.0 | 12.5% |
| Vanguard Group, Inc. | 47.5 | 12.3% |
| State Street Corporation | 30.0 | 7.9% |
| Fidelity Investments | 22.0 | 5.8% |
| Invesco Ltd. | 15.0 | 3.9% |
Insider Ownership
Insider ownership at Marathon Petroleum Corporation is relatively low, with key executives and board members holding a combined total of approximately 15 million shares, which represents about 4.0% of total shares outstanding.
Recent Shareholder Actions
In 2024, MPC announced a $5.0 billion share repurchase authorization. As of September 30, 2024, approximately $4.04 billion remained available for repurchase under this authorization. Total share repurchases during the third quarter of 2024 amounted to 15.95 million shares at an average price of $169.30.
Market Capitalization
The market capitalization of Marathon Petroleum Corporation as of September 30, 2024, was approximately $60 billion, based on a stock price of $170.
Financial Performance Overview
In the third quarter of 2024, MPC reported net income attributable to the company of $622 million, down from $3.28 billion in the same quarter of 2023. The earnings per share (EPS) for the third quarter of 2024 was $1.87, compared to $8.28 for the third quarter of 2023.
Dividend Information
MPC declared a dividend of $0.825 per share in 2024, which reflects a consistent dividend policy aimed at returning value to shareholders.
Marathon Petroleum Corporation (MPC) Mission Statement
Mission Statement Overview
The mission of Marathon Petroleum Corporation (MPC) is to deliver energy efficiently and responsibly while maintaining a commitment to safety, operational excellence, and environmental stewardship. The company aims to provide high-quality products and services to its customers while ensuring the well-being of its employees and the communities it serves.
Key Financial Metrics
As of September 30, 2024, the financial performance of Marathon Petroleum reflects its operational effectiveness in executing its mission. Below are some key financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $622 | $3,280 | $3,074 | $8,230 |
| Revenues (in millions) | $35,373 | $41,583 | $106,946 | $113,484 |
| Operating Income (in millions) | $1,349 | $4,753 | $5,655 | $12,119 |
| Earnings Per Share (Diluted) | $1.87 | $8.28 | $8.83 | $19.57 |
Refining & Marketing Segment Performance
The Refining & Marketing segment is a critical aspect of MPC's mission, focusing on efficiency and margin improvement. The following table summarizes the adjusted EBITDA for this segment:
| Period | Adjusted EBITDA (in millions) |
|---|---|
| Q3 2024 | $1,053 |
| Q3 2023 | $4,373 |
| 9M 2024 | $4,899 |
| 9M 2023 | $11,389 |
Midstream Segment Performance
The Midstream segment, primarily represented by MPLX, also supports MPC's mission by ensuring reliable transportation and storage of energy products. Below are the adjusted EBITDA figures for the Midstream segment:
| Period | Adjusted EBITDA (in millions) |
|---|---|
| Q3 2024 | $1,628 |
| Q3 2023 | $1,539 |
| 9M 2024 | $4,837 |
| 9M 2023 | $4,601 |
Capital Investments and Expenditures
MPC's commitment to improving its operations and environmental footprint is reflected in its capital investment plans. For 2024, the total planned capital investment is approximately $1.25 billion, with specific allocations as follows:
| Segment | Capital Expenditures (in millions) |
|---|---|
| Refining & Marketing | $967 |
| Midstream | $1,121 |
| Corporate and Other | $25 |
Share Repurchase Program
MPC has been active in returning value to shareholders through its share repurchase program. As of September 30, 2024, the following details reflect its repurchase activities:
| Period | Shares Repurchased (in millions) | Cash Paid (in millions) | Average Cost Per Share |
|---|---|---|---|
| Q3 2024 | 16 | $2,701 | $170.99 |
| Q3 2023 | 20 | $2,819 | $139.84 |
| 9M 2024 | 44 | $7,815 | $175.20 |
| 9M 2023 | 71 | $9,067 | $127.09 |
Conclusion of Financial Performance
MPC’s financial metrics, segment performance, capital investments, and shareholder returns all align with its mission to operate responsibly and efficiently within the energy sector. The company continues to focus on operational excellence while adapting to changing market conditions.
How Marathon Petroleum Corporation (MPC) Works
Company Overview
Marathon Petroleum Corporation (MPC) is a leading integrated downstream energy company based in the United States. As of 2024, MPC operates through two main segments: Refining & Marketing and Midstream. The company is primarily engaged in refining crude oil into various petroleum products and marketing those products through its extensive retail and wholesale networks.
Financial Performance
For the third quarter of 2024, Marathon Petroleum reported a net income of $622 million, or $1.87 per diluted share, compared to $3.28 billion, or $8.28 per diluted share in the same quarter of 2023. The decline in net income was attributed to lower Refining & Marketing margins, despite a decrease in income tax provisions.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (millions) | $622 | $3,280 | $3,074 | $8,230 |
| Net Income per Diluted Share | $1.87 | $8.28 | $8.83 | $19.57 |
| Total Revenues (millions) | $35,373 | $41,583 | $106,946 | $113,484 |
| Total Costs and Expenses (millions) | $34,024 | $36,830 | $101,291 | $101,365 |
Refining & Marketing Segment
The Refining & Marketing segment is crucial to MPC's operations, with revenues from external customers reported at $33.775 billion for the first nine months of 2024. This segment's adjusted EBITDA for the same period was $4.899 billion, compared to $11.389 billion in 2023.
| Refining & Marketing Statistics | 9M 2024 | 9M 2023 |
|---|---|---|
| Average Refined Product Sales Price (per gallon) | $3.22 | $3.44 |
| Refined Product Sales Volume (mbpd) | 2,907 | 2,908 |
| Refining & Marketing Margin (per barrel) | $16.82 | $24.80 |
Midstream Segment
The Midstream segment, which includes MPLX, reported adjusted EBITDA of $4.837 billion for the first nine months of 2024, up from $4.601 billion in the same period of 2023. MPC owned approximately 647 million MPLX common units, with a market value of $28.78 billion as of September 30, 2024.
Capital Expenditures and Investments
In the first nine months of 2024, MPC's total capital expenditures amounted to $1.705 billion, compared to $1.412 billion in 2023. The company also made investments in equity method investees totaling $450 million in 2024.
| Capital Expenditures | 9M 2024 | 9M 2023 |
|---|---|---|
| Additions to Property, Plant, and Equipment | $1,723 million | $1,358 million |
| Total Capital Expenditures | $1,705 million | $1,412 million |
| Investments in Equity Method Investees | $450 million | $362 million |
Debt and Liquidity
MPC's long-term debt stood at $19.250 billion as of September 30, 2024. The company reported total liquidity of $7.816 billion, consisting of cash and cash equivalents, short-term investments, and available credit facilities.
| Debt and Liquidity Metrics | As of September 30, 2024 |
|---|---|
| Long-term Debt | $19.250 billion |
| Total Liquidity | $7.816 billion |
| Bank Revolving Credit Facility | $5 billion |
| Available Capacity | $4.999 billion |
Shareholder Returns
MPC declared dividends of $0.825 per share in 2024, and the company has authorized a share repurchase program of $5 billion. As of September 30, 2024, approximately $4.04 billion remained available under this authorization.
| Shareholder Return Metrics | 2024 |
|---|---|
| Dividends Declared (per share) | $0.825 |
| Share Repurchase Authorization | $5 billion |
| Remaining Authorization | $4.04 billion |
Market Trends and Outlook
In 2024, the energy market has seen fluctuations in crude oil prices, impacting refining margins and overall profitability. The average crack spread, a key indicator of refining margins, was affected by changes in crude and refined product prices. MPC's performance is closely tied to these market dynamics, as well as its operational efficiencies and strategic investments in growth opportunities.
How Marathon Petroleum Corporation (MPC) Makes Money
Revenue Streams
Marathon Petroleum Corporation (MPC) generates revenue primarily through its two main segments: Refining & Marketing and Midstream.
Refining & Marketing Segment
The Refining & Marketing segment is the largest contributor to MPC's revenue. For the nine months ended September 30, 2024, this segment generated revenues from external customers as follows:
| Category | Q3 2024 (Millions) | Q3 2023 (Millions) | 9M 2024 (Millions) | 9M 2023 (Millions) |
|---|---|---|---|---|
| Refined products | 31,462 | 36,971 | 94,803 | 101,758 |
| Crude oil | 1,826 | 2,188 | 5,713 | 5,393 |
| Services and other | 487 | 466 | 1,398 | 1,304 |
| Total Revenues | 33,775 | 39,625 | 101,914 | 108,455 |
The segment's adjusted EBITDA for Q3 2024 was $1,053 million, down from $4,373 million in Q3 2023 .
Midstream Segment
The Midstream segment contributes through transportation and logistics services. For the same period, the revenues from external customers were:
| Category | Q3 2024 (Millions) | Q3 2023 (Millions) | 9M 2024 (Millions) | 9M 2023 (Millions) |
|---|---|---|---|---|
| Refined products | 431 | 477 | 1,197 | 1,274 |
| Services and other | 901 | 815 | 2,616 | 2,395 |
| Total Revenues | 1,332 | 1,292 | 3,813 | 3,669 |
The Midstream segment adjusted EBITDA for Q3 2024 was $1,628 million .
Cost Structure
MPC's cost of revenues for the nine months ended September 30, 2024, was $95,682 million, compared to $95,984 million in the same period of 2023. The total costs and expenses were $101,291 million for 2024.
Net Income
Net income attributable to MPC for Q3 2024 was $622 million, a significant decrease from $3,280 million in Q3 2023. For the nine months ended September 30, 2024, net income attributable to MPC was $3,074 million compared to $8,230 million in 2023.
Market Adjustments and Other Income
In 2024, lower refining & marketing margins impacted net income significantly. The company reported a decrease in average refined product sales prices by $0.45 per gallon . Other income was $406 million for the nine months ended September 30, 2024, down from $687 million in 2023.
Capital Expenditures
MPC's capital expenditures for the nine months ended September 30, 2024, were $1,705 million, compared to $1,412 million in 2023. The breakdown is as follows:
| Segment | Q3 2024 (Millions) | Q3 2023 (Millions) |
|---|---|---|
| Refining & Marketing | 372 | 255 |
| Midstream | 557 | 234 |
| Total Capital Expenditures | 929 | 489 |
Share Repurchase and Dividends
MPC announced a $5.0 billion share repurchase authorization as of April 30, 2024. As of September 30, 2024, $4.04 billion remained available . Dividends declared on common stock for Q3 2024 were $0.825 per share.
Debt Position
As of September 30, 2024, MPC's long-term debt was $19,250 million .
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Resources:
- Marathon Petroleum Corporation (MPC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marathon Petroleum Corporation (MPC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marathon Petroleum Corporation (MPC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.