01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Marathon Petroleum Corporation (MPC) reported a challenging year in 2024, with net income attributable to MPC decreasing significantly to $3.445 billiona from $9.681 billion in 2023.
This decline was primarily driven by lower Refining & Marketing segment adjusted EBITDA, which fell to $5.703 billionb 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 millionc, 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.
02—Key points
Key Highlights
- Marathon 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.
- The 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.
- The 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.
- MPC returned substantial capital to shareholders in 2024, repurchasing $9.077 billion of its common stock and paying $1.154 billion in dividends.
- The company continues to invest in its integrated value chain and strategic priorities, including advancements in its Renewable Diesel segment and midstream growth transactions.
- MPC ended 2024 with a strong liquidity position of $6.79 billion (excluding MPLX), indicating financial flexibility.
- Despite the profit decline, MPC's outlook anticipates a constructive environment for U.S. refiners due to anticipated demand growth exceeding net supply impacts.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Marathon Petroleum kept $0.02.
- Revenue$138.86B100.0%
- Cost of revenue−$126.24B90.9%
- Gross profit$12.62B9.1%
- Operating costs−$5.83B4.2%
- Operating income$6.80B4.9%
- Interest, other & tax−$3.35B2.4%
- Net income$3.44B2.5%
Where FY2024 revenue went
$138.86B- Cost of revenue: $126.24B, 91% of revenue
- Net income: $3.44B, 2.5% of revenue
- SG&A: $3.22B, 2.3% of revenue
- Other operating costs: $2.61B, 1.9% of revenue
- Interest, other & tax: $3.35B, 2.4% of revenue
Kept 2.5% as net incomeNet income $3.44B · 2.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $138.86B$148.38B | −6.4% |
| Cost of Revenue | $126.24B$128.57B | −1.8% |
| Gross Profit | $12.62B$19.81B | −36.3% |
| SG&A Expenses | $3.22B$3.04B | +6.0% |
| Operating Expenses | $133.62B$135.79B | −1.6% |
| Operating Income | $6.80B$14.51B | −53.2% |
| Interest Expense | $1.36B$1.32B | +3.0% |
| Net Income | $3.44B$9.68B | −64.4% |
| EPS (Basic) | $10.11$23.73 | −57.4% |
| EPS (Diluted) | $10.08$23.63 | −57.3% |
| Shares Outstanding (Basic) | 340.00M407.00M | −16.5% |
| Shares Outstanding (Diluted) | 341.00M409.00M | −16.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of Marathon Petroleum's lower financial performance in 2024?
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.
How did the Midstream segment (MPLX) perform in 2024?
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.
What is Marathon Petroleum's strategy for returning capital to shareholders?
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.
What is the company's outlook for the refining industry?
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.
06—Continue