10-KPeriod: FY2024

Marathon Petroleum Corp Annual Report, Year Ended Dec 31, 2024

Filed February 27, 2025For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) reported a challenging year in 2024, with net income attributable to MPC decreasing significantly to $3.445 billion from $9.681 billion in 2023. This decline was primarily driven by lower Refining & Marketing segment adjusted EBITDA, which fell to $5.703 billion from $13.705 billion, largely due to reduced refining margins and crack spreads. The Midstream segment, primarily represented by MPLX, showed resilience, with adjusted EBITDA increasing to $6.544 billion from $6.171 billion, benefiting from rate escalations and acquisitions. The newly established Renewable Diesel segment reported an adjusted EBITDA loss of $150 million, an improvement from the prior year's loss of $64 million, but still a drag on overall performance. Despite the lower profitability, MPC continued its commitment to returning capital to shareholders, repurchasing $9.077 billion of its common stock and paying $1.154 billion in dividends during 2024.

Financial Highlights

51 data points
Beta

Revenue

$138.86B

9.1% Gross Margin

Net Income

$3.44B

2.5% Net Margin

EPS (Diluted)

$10.08

Total Assets

$78.86B

Cash & Equivalents

$3.21B

Free Cash Flow

$6.13B

Financial Statements
Beta
Revenue$138.86B
Cost of Revenue$126.24B
Gross Profit$12.62B
SG&A Expenses$3.22B
Operating Expenses$133.62B
Operating Income$6.80B
Interest Expense$1.36B
Net Income$3.44B
EPS (Basic)$10.11
EPS (Diluted)$10.08
Shares Outstanding (Basic)340.00M
Shares Outstanding (Diluted)341.00M

Key Highlights

  • 1Marathon Petroleum's net income attributable to MPC declined significantly in 2024 to $3.445 billion, down from $9.681 billion in 2023, primarily due to reduced refining margins.
  • 2The Refining & Marketing segment's adjusted EBITDA saw a substantial decrease to $5.703 billion in 2024, down from $13.705 billion in 2023, impacted by lower crack spreads and refining margins.
  • 3The Midstream segment (MPLX) demonstrated strength, with adjusted EBITDA growing to $6.544 billion in 2024, up from $6.171 billion in 2023, driven by rate escalations and asset acquisitions.
  • 4MPC returned substantial capital to shareholders in 2024, repurchasing $9.077 billion of its common stock and paying $1.154 billion in dividends.
  • 5The company continues to invest in its integrated value chain and strategic priorities, including advancements in its Renewable Diesel segment and midstream growth transactions.
  • 6MPC ended 2024 with a strong liquidity position of $6.79 billion (excluding MPLX), indicating financial flexibility.
  • 7Despite the profit decline, MPC's outlook anticipates a constructive environment for U.S. refiners due to anticipated demand growth exceeding net supply impacts.

Frequently Asked Questions

The primary driver of Marathon Petroleum's lower financial performance in 2024 was the significant decline in refining margins and crack spreads, which directly impacted the profitability of its Refining & Marketing segment. This led to a substantial decrease in net income attributable to MPC.

The Midstream segment, primarily driven by MPLX, performed well in 2024, with adjusted EBITDA increasing due to rate escalations on its infrastructure assets and the successful integration of acquired assets. This segment provided a stable contribution to the company's overall results.

Marathon Petroleum continues to prioritize returning capital to shareholders. In 2024, the company repurchased a significant amount of its common stock, totaling $9.077 billion, and also paid substantial dividends amounting to $1.154 billion, reflecting a commitment to shareholder returns.

Marathon Petroleum anticipates a constructive environment for U.S. refiners, expecting refined product demand growth to outpace net supply impacts from limited capacity additions and refinery rationalizations. This outlook supports the company's long-term strategy.