01—Abstract
Summary
Summary of the 10-K filed February 28, 2024. Cited figures are marked; the original filing is the authoritative source.
Marathon Petroleum Corporation (MPC) reported a decrease in net income attributable to MPC for the year ended December 31, 2023, compared to 2022, primarily due to lower Refining & Marketing margins and a decrease in net gains from asset disposals.
Despite this, the company maintained strong operational performance, with its Refining & Marketing segment generating significant adjusted EBITDA, though lower than the prior year. The Midstream segment, primarily driven by MPLX, showed an increase in adjusted EBITDA, benefiting from higher throughputs and favorable pricing. The company is strategically focused on strengthening its asset competitiveness through investments in high-return projects, including those enhancing sustainable fuels and technologies.
MPC is also prioritizing commercial performance by leveraging advantaged feedstocks and exploring renewable fuel collaborations. A commitment to capital discipline and a low-cost culture remains central to its operations. MPC continued its robust capital allocation to shareholders through share repurchases and dividends, underscoring its focus on returning value to investors while also managing its debt and maintaining a strong liquidity position.
02—Key points
Key Highlights
- Marathon Petroleum Corporation (MPC) reported a year-over-year decrease in net income attributable to MPC for 2023, primarily driven by lower Refining & Marketing margins and reduced gains on asset sales.
- The Refining & Marketing segment's adjusted EBITDA was $13.55 billion in 2023, a decrease from $19.26 billion in 2022, reflecting the impact of lower refining margins.
- The Midstream segment, largely comprising MPLX, saw an increase in adjusted EBITDA to $6.17 billion in 2023 from $5.77 billion in 2022, supported by higher throughputs and rate escalations.
- MPC returned significant capital to shareholders through $11.57 billion in share repurchases and $1.26 billion in dividends during 2023.
- The company is strategically investing in sustainable fuels and technologies, including its joint venture in renewable diesel production and an investment in renewable natural gas projects.
- MPC's liquidity remains strong, with $14.28 billion in total liquidity (excluding MPLX) at the end of 2023, supported by its revolving credit facility and cash reserves.
- The company is focused on strengthening the competitive position of its assets, improving commercial performance through advantaged feedstock sourcing, and maintaining capital discipline and a low-cost culture.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Marathon Petroleum kept $0.07.
- Revenue$148.38B100.0%
- Cost of revenue−$128.57B86.6%
- Gross profit$19.81B13.4%
- Operating costs−$5.30B3.6%
- Operating income$14.51B9.8%
- Interest, other & tax−$4.83B3.3%
- Net income$9.68B6.5%
Where FY2023 revenue went
$148.38B- Cost of revenue: $128.57B, 87% of revenue
- Net income: $9.68B, 6.5% of revenue
- SG&A: $3.04B, 2.0% of revenue
- Other operating costs: $2.26B, 1.5% of revenue
- Interest, other & tax: $4.83B, 3.3% of revenue
Kept 6.5% as net incomeNet income $9.68B · 6.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 28, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $148.38B$177.45B | −16.4% |
| Cost of Revenue | $128.57B$151.67B | −15.2% |
| Gross Profit | $19.81B$25.78B | −23.2% |
| SG&A Expenses | $3.04B$2.77B | +9.6% |
| Operating Expenses | $135.79B$158.48B | −14.3% |
| Operating Income | $14.51B$21.47B | −32.4% |
| Interest Expense | $1.32B$1.30B | +2.0% |
| Net Income | $9.68B$14.52B | −33.3% |
| EPS (Basic) | $23.73$28.31 | −16.2% |
| EPS (Diluted) | $23.63$28.12 | −16.0% |
| Shares Outstanding (Basic) | 407.00M512.00M | −20.5% |
| Shares Outstanding (Diluted) | 409.00M516.00M | −20.7% |
05—Questions
Frequently Asked Questions
What was Marathon Petroleum's financial performance in 2023 compared to 2022?
Marathon Petroleum Corporation's net income attributable to MPC decreased in 2023 compared to 2022, primarily due to lower Refining & Marketing margins and reduced net gains on the disposal of assets. While the Refining & Marketing segment's adjusted EBITDA decreased, the Midstream segment's adjusted EBITDA saw an increase.
What are Marathon Petroleum's key strategic priorities?
MPC's strategic priorities include strengthening the competitive position of its assets, improving commercial performance by securing advantaged feedstocks and exploring renewable fuel opportunities, maintaining capital discipline, and fostering a low-cost culture. The company is also committed to sustainability and investing in lower carbon intensity initiatives.
How did Marathon Petroleum return capital to shareholders in 2023?
In 2023, Marathon Petroleum returned significant capital to shareholders through $11.57 billion in share repurchases and $1.26 billion in dividends paid. The company also has substantial remaining authorization for future share repurchases.
What is the outlook for MPC's renewable fuels business?
MPC is actively investing in its renewable fuels business. This includes ramping up production at its Martinez Renewable Fuels joint venture and investments in renewable diesel feedstock through its joint venture in Green Bison Soy Processing. The company also acquired an equity interest in LF Bioenergy, a renewable natural gas producer.
06—Continue