What caused the significant drop in net income for the third quarter and nine months ended September 30, 2013, compared to the prior year?

The significant decrease in net income was primarily due to a substantial decline in refining and marketing gross margins, particularly impacting the Refining & Marketing segment. This was partially offset by increased refinery throughputs and sales volumes from the newly acquired Galveston Bay Refinery.

How did the acquisition of the Galveston Bay Refinery impact the company's financial performance?

The acquisition of the Galveston Bay Refinery in February 2013 contributed to increased revenues through higher refined product sales volumes. However, it also led to higher costs, including cost of revenues and depreciation and amortization, and contributed to a lower average refining margin per barrel.

What is the company's strategy regarding capital allocation and shareholder returns?

Marathon Petroleum is actively returning capital to shareholders through significant share repurchase programs and dividend payments. The company has substantial share repurchase authorizations, indicating a continued focus on reducing outstanding shares and enhancing shareholder value.

How is the company managing its liquidity and financial health?

MPC maintains a strong liquidity position with substantial cash and cash equivalents, along with significant availability under its revolving credit agreements. The company also maintains an investment-grade credit rating, demonstrating its sound financial health and ability to meet its financial obligations.

MPC 10-Q Quarterly Report Q3 FY2013 — Revenue, Net Income, EPS

Summary

Marathon Petroleum Corporation (MPC) reported a significant decrease in net income for the third quarter and the first nine months of 2013 compared to the same periods in 2012. This decline was primarily driven by the Refining & Marketing segment, which experienced a substantial drop in refining and marketing gross margins. Despite this, revenues saw an increase due to higher refined product sales volumes, largely attributable to the acquisition of the Galveston Bay Refinery and Related Assets in February 2013. The Speedway segment showed improved performance with increased gasoline, distillate, and merchandise gross margins. The company also made strategic acquisitions, including the Galveston Bay Refinery and ethanol companies, which are expected to enhance its portfolio. MPC continued its commitment to returning capital to shareholders through significant share repurchases and dividend payments. The company's liquidity remains strong, supported by cash on hand and available credit facilities, and it maintains an investment-grade credit profile.

Financial Highlights

49 data points

Beta

Revenue

$26.26B

Net Income

$168.00M

0.0% Net Margin

EPS (Diluted)

$0.27

Total Assets

$29.00B

Cash & Equivalents

$2.02B

Free Cash Flow

$98.00M

Financial Statements

Beta

Revenue	$26.26B
SG&A Expenses	$305.00M
Operating Expenses	$25.97B
Operating Income	$301.00M
Interest Expense	$50.00M
Net Income	$168.00M
EPS (Basic)	$0.27
EPS (Diluted)	$0.27
Shares Outstanding (Basic)	618.00M
Shares Outstanding (Diluted)	622.00M

Key Highlights

1Net income attributable to MPC decreased significantly year-over-year, primarily due to lower refining and marketing gross margins.
2Revenues increased due to higher refined product sales volumes, largely driven by the acquisition of the Galveston Bay Refinery in February 2013.
3The Speedway segment demonstrated improved profitability with higher gasoline, distillate, and merchandise gross margins.
4Significant capital allocation towards share repurchases and dividends, with substantial new repurchase authorizations approved.
5Strategic acquisitions, including the Galveston Bay Refinery and interests in ethanol companies, were completed to strengthen the business portfolio.
6Strong liquidity position maintained, with ample cash and credit facilities, supported by an investment-grade credit rating.

Marathon Petroleum Corp Quarterly Report for Q3 Ended Sep 30, 2013

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions