Summary
Marathon Petroleum Corporation (MPC) demonstrated significant growth and operational improvement in 2012, following its spinoff from Marathon Oil in mid-2011. The company reported a substantial increase in net income attributable to MPC, reaching $3.39 billion, up from $2.39 billion in 2011. This growth was primarily driven by strong performance in the Refining & Marketing segment, which benefited from wider crack spreads and favorable crude oil differentials. MPC also strategically expanded its refining capacity and retail footprint. Key financial and operational highlights for 2012 include a near 42% increase in net income, a significant improvement in refining and marketing gross margins, and strategic acquisitions in the Speedway convenience store segment. The company also made strides in its midstream operations by forming MPLX, a master limited partnership, and completing its initial public offering, which provided a new avenue for growth and capital generation. MPC also returned capital to shareholders through a robust share repurchase program, underscoring its commitment to enhancing shareholder value.
Financial Highlights
50 data points| Revenue | $82.24B |
| SG&A Expenses | $1.22B |
| Operating Expenses | $77.14B |
| Operating Income | $5.35B |
| Interest Expense | $191.00M |
| Net Income | $3.39B |
| EPS (Basic) | $4.97 |
| EPS (Diluted) | $4.95 |
| Shares Outstanding (Basic) | 680.00M |
| Shares Outstanding (Diluted) | 684.00M |
Key Highlights
- 1Net income attributable to MPC increased by $1.00 billion, or 41.8%, to $3.39 billion in 2012 compared to $2.39 billion in 2011.
- 2Refining & Marketing segment income from operations saw a substantial increase of $1.51 billion, rising to $5.10 billion in 2012 from $3.59 billion in 2011, driven by improved refining and marketing gross margins.
- 3Speedway segment income from operations increased by $39 million to $310 million in 2012, supported by higher merchandise and gasoline gross margins and store acquisitions.
- 4The company completed a $2.2 billion heavy oil upgrading and expansion project at its Detroit refinery, increasing its capacity to process heavy, sour crude oils.
- 5MPC formed MPLX, a master limited partnership for midstream assets, and completed its initial public offering, selling a 26.4% interest.
- 6A significant share repurchase program was active, with $1.35 billion repurchased in 2012, and an additional $2.0 billion authorization announced in January 2013.
- 7MPC acquired the Galveston Bay refinery and related assets from BP for approximately $598 million plus inventories in February 2013, increasing its refining capacity.