Summary
Marathon Petroleum Corporation (MPC) reported a significant year-over-year decline in net income attributable to MPC for the first quarter of 2016, with net income falling from $891 million in Q1 2015 to just $1 million in Q1 2016. This drastic reduction was primarily driven by a substantial decrease in the Refining & Marketing segment's income from operations, which plummeted by $1.35 billion due to lower crack spreads, unfavorable crude oil acquisition costs, and increased turnaround activity. Despite the sharp decline in refining profitability, the Speedway retail segment remained stable, and the Midstream segment saw an increase in income from operations, largely due to the inclusion of MarkWest's results following its merger with MPLX. The company also reported a $129 million goodwill impairment charge related to the MarkWest acquisition, reflecting ongoing challenges in the midstream sector. Financially, total revenues and other income saw a considerable decrease of $4.41 billion, largely attributable to lower refined product sales prices and volumes. The company's cash flow from operations also declined significantly, from $1.19 billion in Q1 2015 to $327 million in Q1 2016, impacted by lower net income and unfavorable working capital changes. MPC maintained its commitment to returning capital to shareholders, with dividends paid increasing and significant share repurchases continuing. The company's liquidity remained adequate, supported by a revolving credit facility and cash on hand, although future capital spending was revised downward due to market conditions.
Financial Highlights
48 data points| Revenue | $12.76B |
| SG&A Expenses | $378.00M |
| Operating Expenses | $12.76B |
| Operating Income | $75.00M |
| Interest Expense | $153.00M |
| Net Income | $1.00M |
| EPS (Basic) | $0.00 |
| EPS (Diluted) | $0.00 |
| Shares Outstanding (Basic) | 529.00M |
| Shares Outstanding (Diluted) | 531.00M |
Key Highlights
- 1Net income attributable to MPC dropped drastically from $891 million in Q1 2015 to $1 million in Q1 2016.
- 2Refining & Marketing segment income from operations saw a substantial decrease of $1.35 billion year-over-year.
- 3A $129 million goodwill impairment charge was recorded by MPLX related to the MarkWest merger.
- 4Total revenues and other income decreased by $4.41 billion compared to the prior year period.
- 5Cash provided by operating activities significantly decreased to $327 million from $1.19 billion in the prior year.
- 6Dividends paid increased to $169 million in Q1 2016 from $137 million in Q1 2015.
- 7The company revised its 2016 capital spending forecast downward to $3.0 billion due to market conditions.