Marathon Petroleum Corp. Reports Second-Quarter 2023 Results
- Strong net income and adj. EBITDA figures
- Significant capital returned to shareholders
- Positive progress on strategic initiatives like the Martinez Renewable Fuels facility and the STAR project at the Galveston Bay refinery
- Healthy financial position with substantial cash reserves and available credit
- Decline in R&M segment adjusted EBITDA and margins compared to Q2 2022
- Higher corporate expenses compared to Q2 2022
- Second-quarter net income attributable to MPC of
, or$2.2 billion per diluted share; adj. EBITDA of$5.32 $4.5 billion - Net cash provided by operating activities of
, reflecting sustained commercial improvements$4.0 billion - Executing disciplined capital program across Refining & Marketing, Midstream, and low carbon projects
- Returned
of capital through$3.4 billion of share repurchases and$3.1 billion of dividends$316 million
Marathon Petroleum Corp. (NYSE: MPC) today reported net income attributable to MPC of
The second quarter of 2023 adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was
"Our second quarter results reflect continued execution against our strategic initiatives," said President and Chief Executive Officer Michael J. Hennigan. "The business generated
Results from Operations
Adjusted EBITDA (unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Refining & Marketing Segment | |||||||||||
Segment income from operations | $ | 2,287 | $ | 7,134 | $ | 5,319 | $ | 7,902 | |||
Add: Depreciation and amortization | 484 | 475 | 948 | 936 | |||||||
Refining planned turnaround costs | 392 | 151 | 749 | 296 | |||||||
Refining & Marketing segment adjusted EBITDA | 3,163 | 7,760 | 7,016 | 9,134 | |||||||
Midstream Segment | |||||||||||
Segment income from operations | 1,201 | 1,126 | 2,414 | 2,198 | |||||||
Add: Depreciation and amortization | 331 | 330 | 648 | 661 | |||||||
Midstream segment adjusted EBITDA | 1,532 | 1,456 | 3,062 | 2,859 | |||||||
Subtotal | 4,695 | 9,216 | 10,078 | 11,993 | |||||||
Corporate | (183) | (170) | (367) | (321) | |||||||
Add: Depreciation and amortization | 19 | 14 | 38 | 27 | |||||||
Adjusted EBITDA | $ | 4,531 | $ | 9,060 | $ | 9,749 | $ | 11,699 | |||
Refining & Marketing (R&M)
Segment adjusted EBITDA was
R&M margin was
Refining operating costs per barrel were
Midstream
Segment adjusted EBITDA was
Corporate and Items Not Allocated
Corporate expenses totaled
Discrete tax benefits in the second quarter 2023 tax provision included a
Financial Position, Liquidity, and Return of Capital
As of June 30, 2023, MPC had
In the second quarter, the company returned approximately
Strategic and Operations Update
At the Martinez Renewable Fuels facility, construction activities are progressing. 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.
MPC completed the STAR project at its Galveston Bay refinery, which is expected to add 40,000 barrels per day of incremental crude capacity and 17,000 barrels per day of resid processing capacity.
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.
Third Quarter 2023 Outlook
Refining & Marketing Segment: | ||
Refining operating costs per barrel(a) | $ | 5.10 |
Distribution costs (in millions) | $ | 1,400 |
Refining planned turnaround costs (in millions) | $ | 120 |
Depreciation and amortization (in millions) | $ | 480 |
Refinery throughputs (mbpd): | ||
Crude oil refined | 2,730 | |
Other charge and blendstocks | 200 | |
Total | 2,930 | |
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
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
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 June 30, | Six Months Ended June 30, | ||||||||||
(In millions, except per-share data) | 2023 | 2022 | 2023 | 2022 | |||||||
Revenues and other income: | |||||||||||
Sales and other operating revenues | $ | 36,343 | $ | 53,795 | $ | 71,207 | $ | 91,853 | |||
Income from equity method investments | 199 | 147 | 332 | 289 | |||||||
Net gain on disposal of assets | 13 | 39 | 16 | 21 | |||||||
Other income | 269 | 257 | 346 | 459 | |||||||
Total revenues and other income | 36,824 | 54,238 | 71,901 | 92,622 | |||||||
Costs and expenses: | |||||||||||
Cost of revenues (excludes items below) | 31,762 | 44,207 | 61,056 | 79,275 | |||||||
Depreciation and amortization | 834 | 819 | 1,634 | 1,624 | |||||||
Selling, general and administrative expenses | 704 | 694 | 1,395 | 1,297 | |||||||
Other taxes | 219 | 190 | 450 | 382 | |||||||
Total costs and expenses | 33,519 | 45,910 | 64,535 | 82,578 | |||||||
Income from operations | 3,305 | 8,328 | 7,366 | 10,044 | |||||||
Net interest and other financial costs | 142 | 312 | 296 | 574 | |||||||
Income before income taxes | 3,163 | 8,016 | 7,070 | 9,470 | |||||||
Provision for income taxes | 583 | 1,799 | 1,406 | 2,081 | |||||||
Net income | 2,580 | 6,217 | 5,664 | 7,389 | |||||||
Less net income attributable to: | |||||||||||
Redeemable noncontrolling interest | 23 | 21 | 46 | 42 | |||||||
Noncontrolling interests | 331 | 323 | 668 | 629 | |||||||
Net income attributable to MPC | $ | 2,226 | $ | 5,873 | $ | 4,950 | $ | 6,718 | |||
Per share data | |||||||||||
Basic: | |||||||||||
Net income attributable to MPC per share | $ | 5.34 | $ | 11.03 | $ | 11.49 | $ | 12.24 | |||
Weighted average shares outstanding (in millions) | 417 | 532 | 430 | 549 | |||||||
Diluted: | |||||||||||
Net income attributable to MPC per share | $ | 5.32 | $ | 10.95 | $ | 11.44 | $ | 12.15 | |||
Weighted average shares outstanding (in millions) | 419 | 536 | 432 | 553 | |||||||
Income Summary (unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Refining & Marketing | $ | 2,287 | $ | 7,134 | $ | 5,319 | $ | 7,902 | |||
Midstream | 1,201 | 1,126 | 2,414 | 2,198 | |||||||
Corporate | (183) | (170) | (367) | (321) | |||||||
Income from operations before items not allocated to segments | 3,305 | 8,090 | 7,366 | 9,779 | |||||||
Items not allocated to segments: | |||||||||||
Renewable volume obligation requirements | — | 238 | — | 238 | |||||||
Litigation | — | — | — | 27 | |||||||
Income from operations | $ | 3,305 | $ | 8,328 | $ | 7,366 | $ | 10,044 | |||
Capital Expenditures and Investments (unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Refining & Marketing | $ | 243 | $ | 315 | $ | 664 | $ | 559 | |||
Midstream | 273 | 222 | 514 | 505 | |||||||
Corporate(a) | 46 | 40 | 74 | 86 | |||||||
Total | $ | 562 | $ | 577 | $ | 1,252 | $ | 1,150 | |||
(a | Includes capitalized interest of |
Refining & Marketing Operating Statistics (unaudited)
Dollar per Barrel of Net Refinery Throughput | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Refining & Marketing margin(a) | $ | 22.10 | $ | 37.54 | $ | 24.08 | $ | 26.93 | |||
Less: | |||||||||||
Refining operating costs(b) | 5.15 | 5.19 | 5.41 | 5.20 | |||||||
Distribution costs(c) | 5.15 | 4.76 | 5.21 | 4.77 | |||||||
Other (income) loss(d) | (0.08) | (0.20) | 0.01 | (0.14) | |||||||
Refining & Marketing segment adjusted EBITDA | 11.88 | 27.79 | 13.45 | 17.10 | |||||||
Less: | |||||||||||
Refining planned turnaround costs | 1.47 | 0.54 | 1.43 | 0.56 | |||||||
Depreciation and amortization | 1.82 | 1.70 | 1.82 | 1.75 | |||||||
Refining & Marketing income from operations | $ | 8.59 | $ | 25.55 | $ | 10.20 | $ | 14.79 | |||
Fees paid to MPLX included in distribution costs above | $ | 3.55 | $ | 3.30 | $ | 3.61 | $ | 3.38 | |||
(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 June 30, | Six Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Refining & Marketing refined product sales volume (mbpd)(a) | 3,581 | 3,615 | 3,467 | 3,455 | |||||||
Crude oil refining capacity (mbpcd)(b) | 2,898 | 2,887 | 2,898 | 2,887 | |||||||
Crude oil capacity utilization (percent)(b) | 93 | 100 | 91 | 96 | |||||||
Refinery throughputs (mbpd): | |||||||||||
Crude oil refined | 2,698 | 2,896 | 2,632 | 2,761 | |||||||
Other charge and blendstocks | 227 | 173 | 249 | 191 | |||||||
Net refinery throughputs | 2,925 | 3,069 | 2,881 | 2,952 | |||||||
Sour crude oil throughput (percent) | 46 | 48 | 44 | 47 | |||||||
Sweet crude oil throughput (percent) | 54 | 52 | 56 | 53 | |||||||
Refined product yields (mbpd): | |||||||||||
Gasoline | 1,497 | 1,536 | 1,503 | 1,510 | |||||||
Distillates | 1,033 | 1,123 | 1,029 | 1,051 | |||||||
Propane | 67 | 74 | 67 | 71 | |||||||
NGLs and petrochemicals | 227 | 224 | 192 | 193 | |||||||
Heavy fuel oil | 61 | 54 | 46 | 70 | |||||||
Asphalt | 83 | 91 | 83 | 89 | |||||||
Total | 2,968 | 3,102 | 2,920 | 2,984 | |||||||
Inter-region refinery transfers excluded from throughput and yields above (mbpd) | 43 | 76 | 44 | 68 | |||||||
(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 June 30, | Six Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Dollar per barrel of refinery throughput: | |||||||||||
Refining & Marketing margin | $ | 19.24 | $ | 35.60 | $ | 22.36 | $ | 26.61 | |||
Refining operating costs | 3.52 | 3.90 | 3.99 | 4.18 | |||||||
Refining planned turnaround costs | 0.32 | 0.60 | 1.37 | 0.69 | |||||||
Refining depreciation and amortization | 1.42 | 1.30 | 1.43 | 1.35 | |||||||
Refinery throughputs (mbpd): | |||||||||||
Crude oil refined | 1,131 | 1,209 | 1,044 | 1,114 | |||||||
Other charge and blendstocks | 186 | 148 | 191 | 148 | |||||||
Gross refinery throughputs | 1,317 | 1,357 | 1,235 | 1,262 | |||||||
Sour crude oil throughput (percent) | 54 | 58 | 48 | 57 | |||||||
Sweet crude oil throughput (percent) | 46 | 42 | 52 | 43 | |||||||
Refined product yields (mbpd): | |||||||||||
Gasoline | 661 | 653 | 642 | 624 | |||||||
Distillates | 468 | 504 | 435 | 440 | |||||||
Propane | 39 | 42 | 38 | 41 | |||||||
NGLs and petrochemicals | 131 | 129 | 113 | 115 | |||||||
Heavy fuel oil | 33 | 34 | 18 | 45 | |||||||
Asphalt | 19 | 19 | 19 | 20 | |||||||
Total | 1,351 | 1,381 | 1,265 | 1,285 | |||||||
Inter-region refinery transfers included in throughput and yields above (mbpd) | 27 | 46 | 22 | 37 | |||||||
Mid-Continent Region | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Dollar per barrel of refinery throughput: | |||||||||||
Refining & Marketing margin | $ | 23.94 | $ | 37.30 | $ | 25.36 | $ | 25.18 | |||
Refining operating costs | 5.19 | 4.96 | 5.23 | 4.80 | |||||||
Refining planned turnaround costs | 1.75 | 0.46 | 1.11 | 0.37 | |||||||
Refining depreciation and amortization | 1.56 | 1.50 | 1.56 | 1.55 | |||||||
Refinery throughputs (mbpd): | |||||||||||
Crude oil refined | 1,111 | 1,164 | 1,111 | 1,135 | |||||||
Other charge and blendstocks | 61 | 62 | 68 | 65 | |||||||
Gross refinery throughputs | 1,172 | 1,226 | 1,179 | 1,200 | |||||||
Sour crude oil throughput (percent) | 27 | 26 | 27 | 27 | |||||||
Sweet crude oil throughput (percent) | 73 | 74 | 73 | 73 | |||||||
Refined product yields (mbpd): | |||||||||||
Gasoline | 607 | 619 | 614 | 622 | |||||||
Distillates | 410 | 433 | 423 | 424 | |||||||
Propane | 20 | 21 | 20 | 21 | |||||||
NGLs and petrochemicals | 60 | 63 | 49 | 51 | |||||||
Heavy fuel oil | 16 | 20 | 13 | 16 | |||||||
Asphalt | 63 | 71 | 64 | 69 | |||||||
Total | 1,176 | 1,227 | 1,183 | 1,203 | |||||||
Inter-region refinery transfers included in throughput and yields above (mbpd) | 8 | 8 | 7 | 9 | |||||||
West Coast Region | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Dollar per barrel of refinery throughput: | |||||||||||
Refining & Marketing margin | $ | 25.42 | $ | 42.78 | $ | 25.28 | $ | 31.53 | |||
Refining operating costs | 9.10 | 8.08 | 8.78 | 7.73 | |||||||
Refining planned turnaround costs | 3.80 | 0.53 | 2.21 | 0.58 | |||||||
Refining depreciation and amortization | 1.48 | 1.41 | 1.42 | 1.38 | |||||||
Refinery throughputs (mbpd): | |||||||||||
Crude oil refined | 456 | 523 | 477 | 512 | |||||||
Other charge and blendstocks | 23 | 39 | 34 | 46 | |||||||
Gross refinery throughputs | 479 | 562 | 511 | 558 | |||||||
Sour crude oil throughput (percent) | 72 | 72 | 72 | 71 | |||||||
Sweet crude oil throughput (percent) | 28 | 28 | 28 | 29 | |||||||
Refined product yields (mbpd): | |||||||||||
Gasoline | 251 | 289 | 265 | 291 | |||||||
Distillates | 163 | 197 | 177 | 193 | |||||||
Propane | 8 | 11 | 9 | 9 | |||||||
NGLs and petrochemicals | 41 | 39 | 38 | 35 | |||||||
Heavy fuel oil | 20 | 33 | 27 | 36 | |||||||
Asphalt | 1 | 1 | — | — | |||||||
Total | 484 | 570 | 516 | 564 | |||||||
Inter-region refinery transfers included in throughput and yields above (mbpd) | 8 | 22 | 15 | 22 | |||||||
Midstream Operating Statistics (unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Pipeline throughputs (mbpd)(a) | 6,032 | 6,012 | 5,865 | 5,719 | |||||||
Terminal throughputs (mbpd) | 3,180 | 3,101 | 3,136 | 3,021 | |||||||
Gathering system throughputs (million cubic feet per day)(b) | 6,159 | 5,626 | 6,259 | 5,452 | |||||||
Natural gas processed (million cubic feet per day)(b) | 8,934 | 8,418 | 8,771 | 8,343 | |||||||
C2 (ethane) + NGLs fractionated (mbpd)(b) | 583 | 536 | 588 | 531 | |||||||
(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 |
Select Financial Data (unaudited)
June 30, | March 31, | ||||
(In millions) | |||||
Cash and cash equivalents | $ | 7,345 | $ | 7,960 | |
Short-term investments | 4,109 | 3,492 | |||
Total consolidated debt(a) | 27,283 | 27,280 | |||
MPC debt | 6,877 | 6,886 | |||
MPLX debt | 20,406 | 20,394 | |||
Redeemable noncontrolling interest | 968 | 968 | |||
Equity | 31,600 | 32,695 | |||
Shares outstanding | 405 | 430 | |||
(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 June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Net income attributable to MPC | $ | 2,226 | $ | 5,873 | $ | 4,950 | $ | 6,718 | |||
Pre-tax adjustments: | |||||||||||
Renewable volume obligation requirements | — | (238) | — | (238) | |||||||
Tax impact of adjustments(a) | — | 52 | — | 52 | |||||||
Adjusted net income attributable to MPC | $ | 2,226 | $ | 5,687 | $ | 4,950 | $ | 6,532 | |||
Diluted income per share | $ | 5.32 | $ | 10.95 | $ | 11.44 | $ | 12.15 | |||
Adjusted diluted income per share | $ | 5.32 | $ | 10.61 | $ | 11.44 | $ | 11.81 | |||
(a) | Income taxes for adjusted earnings for the three and six months ended June 30, 2022 were calculated by applying a combined federal and state statutory tax rate of |
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 June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Net income attributable to MPC | $ | 2,226 | $ | 5,873 | $ | 4,950 | $ | 6,718 | |||
Net income attributable to noncontrolling interests | 354 | 344 | 714 | 671 | |||||||
Provision for income taxes | 583 | 1,799 | 1,406 | 2,081 | |||||||
Net interest and other financial costs | 142 | 312 | 296 | 574 | |||||||
Depreciation and amortization | 834 | 819 | 1,634 | 1,624 | |||||||
Refining planned turnaround costs | 392 | 151 | 749 | 296 | |||||||
Renewable volume obligation requirements | — | (238) | — | (238) | |||||||
Litigation | — | — | — | (27) | |||||||
Adjusted EBITDA | $ | 4,531 | $ | 9,060 | $ | 9,749 | $ | 11,699 | |||
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 June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Refining & Marketing segment adjusted EBITDA | $ | 3,163 | $ | 7,760 | $ | 7,016 | $ | 9,134 | |||
Plus (Less): | |||||||||||
Depreciation and amortization | (484) | (475) | (948) | (936) | |||||||
Refining planned turnaround costs | (392) | (151) | (749) | (296) | |||||||
Selling, general and administrative expenses | 596 | 574 | 1,188 | 1,082 | |||||||
(Income) loss from equity method investments | (17) | (6) | 19 | (18) | |||||||
Net gain on disposal of assets | — | (37) | (3) | (37) | |||||||
Other income | (241) | (234) | (292) | (415) | |||||||
Refining & Marketing gross margin | 2,625 | 7,431 | 6,231 | 8,514 | |||||||
Plus (Less): | |||||||||||
Operating expenses (excluding depreciation and amortization) | 2,748 | 2,554 | 5,493 | 4,943 | |||||||
Depreciation and amortization | 484 | 475 | 948 | 936 | |||||||
Gross margin excluded from and other income included in Refining & Marketing margin(a) | 95 | 71 | 28 | 85 | |||||||
Other taxes included in Refining & Marketing margin | (69) | (49) | (140) | (92) | |||||||
Refining & Marketing margin | $ | 5,883 | $ | 10,482 | $ | 12,560 | $ | 14,386 | |||
Refining & Marketing margin by region: | |||||||||||
Gulf Coast | $ | 2,259 | $ | 4,244 | $ | 4,910 | $ | 5,897 | |||
Mid-Continent | 2,535 | 4,135 | 5,379 | 5,428 | |||||||
West Coast | 1,089 | 2,103 | 2,271 | 3,061 | |||||||
Refining & Marketing margin | $ | 5,883 | $ | 10,482 | $ | 12,560 | $ | 14,386 | |||
(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-second-quarter-2023-results-301890129.html
SOURCE Marathon Petroleum Corporation
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