10-KPeriod: FY2022

Marathon Petroleum Corp Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) reported strong financial performance for the fiscal year ending December 31, 2022, driven by robust demand for refined products and favorable refining margins. The company, a leading integrated downstream energy company, operates the largest refining system in the United States. MPC's operations are divided into two main segments: Refining & Marketing and Midstream, with the latter primarily conducted through its majority-owned subsidiary, MPLX LP. The company saw a significant increase in revenues and a substantial improvement in net income attributable to MPC compared to the previous year. This growth was primarily fueled by higher average refined product sales prices and increased sales volumes, reflecting a continued recovery in market demand. MPC also highlighted its strategic initiatives, including investments in sustainable fuels and technologies, and demonstrated a commitment to capital discipline and a low-cost culture. The company continued its share repurchase program, authorizing an additional $5 billion in the period. Looking ahead, MPC is focused on strengthening its competitive position, improving commercial performance, and advancing its sustainability goals. The company's diversified asset base and strategic investments position it well to navigate the evolving energy landscape.

Financial Highlights

51 data points
Beta

Revenue

$177.45B

14.5% Gross Margin

Net Income

$14.52B

8.2% Net Margin

EPS (Diluted)

$28.12

Total Assets

$89.90B

Cash & Equivalents

$8.63B

Free Cash Flow

$13.94B

Financial Statements
Beta
Revenue$177.45B
Cost of Revenue$151.67B
Gross Profit$25.78B
SG&A Expenses$2.77B
Operating Expenses$158.48B
Operating Income$21.47B
Interest Expense$1.30B
Net Income$14.52B
EPS (Basic)$28.31
EPS (Diluted)$28.12
Shares Outstanding (Basic)512.00M
Shares Outstanding (Diluted)516.00M

Key Highlights

  • 1Strong financial performance in 2022 with increased revenues and net income, driven by higher refined product prices and volumes.
  • 2Operates the largest refining system in the U.S. with 2.9 million barrels per day of refining capacity.
  • 3Two reportable segments: Refining & Marketing and Midstream (primarily MPLX LP).
  • 4Significant investments in renewable fuels, including the Martinez Renewable Fuels joint venture.
  • 5Repurchased a substantial amount of its common stock, demonstrating commitment to shareholder returns.
  • 6Focus on capital discipline, operational excellence, and sustainability initiatives.
  • 7Navigated inflationary pressures and supply chain disruptions while maintaining operations.

Frequently Asked Questions

Marathon Petroleum Corporation (MPC) reported a significant increase in net income attributable to MPC, rising to $14.5 billion in 2022 from $9.7 billion in 2021. This growth was primarily driven by higher average refined product sales prices and volumes, contributing to a substantial increase in both Refining & Marketing margins and Midstream throughputs.

MPC operates through two primary segments: Refining & Marketing and Midstream, with Midstream operations largely conducted through its master limited partnership, MPLX LP. The Refining & Marketing segment saw segment adjusted EBITDA increase significantly to $19.3 billion in 2022, up from $3.5 billion in 2021, reflecting strong market conditions. The Midstream segment also showed robust performance, with segment adjusted EBITDA increasing to $5.8 billion in 2022 from $5.4 billion in 2021, primarily benefiting from higher product pricing and gathering system throughputs.

MPC is focused on strengthening the competitive position of its assets, improving commercial performance through advantaged feedstock and dynamic market approaches, and maintaining capital discipline with a focus on a low-cost culture. A key strategic initiative includes advancing its renewable fuels production capabilities, exemplified by the Martinez Renewable Fuels joint venture. The company also emphasized its commitment to sustainability, setting targets for greenhouse gas (GHG) emission reductions. MPC remains committed to shareholder returns, evidenced by its ongoing share repurchase program.

Marathon Petroleum utilizes commodity derivative instruments to hedge against price risk in crude oil and refined product markets. The company is subject to numerous environmental laws and regulations and accrues liabilities for anticipated remediation costs. While facing increasing regulatory scrutiny on GHG emissions and climate change, MPC is investing in sustainable technologies and aims to reduce its carbon intensity.