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10-QPeriod: Q2 FY2015

Marathon Petroleum Corp Quarterly Report for Q2 Ended Jun 30, 2015

Filed August 3, 2015For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) reported solid financial results for the six months ended June 30, 2015, with net income attributable to MPC increasing to $1.72 billion compared to $1.05 billion in the prior year period. This growth was driven primarily by a significant improvement in the Refining & Marketing segment, which benefited from higher USGC crack spreads and lower operating costs, partially offset by a weaker performance in the second quarter due to less favorable product price realizations and crude oil acquisition costs. The Speedway segment also demonstrated strong growth, with income from operations increasing due to higher merchandise and fuel margins and the contribution from recently acquired locations. The Pipeline Transportation segment saw a slight decrease in income. Notably, MPC completed a two-for-one stock split in June 2015 and continued its commitment to shareholder returns through substantial share repurchases and a dividend increase.

Financial Statements
Beta
Revenue$20.54B
SG&A Expenses$393.00M
Operating Expenses$19.25B
Operating Income$1.33B
Interest Expense$69.00M
Net Income$826.00M
EPS (Basic)$1.52
EPS (Diluted)$1.51
Shares Outstanding (Basic)541.00M
Shares Outstanding (Diluted)544.00M

Key Highlights

  • 1Net income attributable to MPC for the first six months of 2015 was $1.72 billion, a significant increase from $1.05 billion in the same period of 2014.
  • 2Refining & Marketing segment income from operations increased substantially year-to-date, driven by higher USGC crack spreads and lower operating costs, despite a weaker second quarter performance.
  • 3The Speedway segment showed robust growth, with income from operations increasing by $143 million for the first six months due to higher merchandise and fuel margins and contributions from acquired locations.
  • 4The company completed a two-for-one stock split in June 2015, retroactively adjusting all historical share and per share data.
  • 5MPC repurchased $617 million of its common stock in the first six months of 2015 and announced an additional $2.0 billion share repurchase authorization.
  • 6Quarterly dividend per share increased to $0.32, a 28% increase from the first quarter of 2015, reflecting a commitment to shareholder returns.
  • 7MPLX LP, in which MPC holds a 71.5% interest, announced a significant merger with MarkWest Energy Partners, L.P. (MWE) with an implied enterprise value of approximately $20 billion.

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