Summary
Marathon Petroleum Corporation (MPC) reported solid financial results for the second quarter and first six months of 2016, demonstrating resilience despite a challenging market environment. Net income attributable to MPC for the second quarter was $801 million ($1.51 per diluted share), a slight decrease from $826 million ($1.51 per diluted share) in the prior year period. For the first six months, net income attributable to MPC was $802 million ($1.51 per diluted share), down from $1.72 billion ($3.14 per diluted share) in the first half of 2015. The year-over-year decline in the first six months was significantly influenced by lower commodity prices impacting the Refining & Marketing segment, though this was partially offset by improved performance in the Speedway retail and Midstream segments. The company's Midstream segment, bolstered by the integration of MarkWest Energy Partners following its merger with MPLX, showed significant growth in income from operations. MPLX also successfully completed a private placement of preferred units, raising approximately $984 million to fund capital expenditures and debt repayment, enhancing its financial flexibility. MPC's liquidity remains strong, supported by substantial cash and cash equivalents and available credit facilities, positioning the company to navigate market volatility and pursue strategic growth opportunities.
Financial Highlights
48 data points| Revenue | $16.81B |
| SG&A Expenses | $401.00M |
| Operating Expenses | $15.47B |
| Operating Income | $1.31B |
| Interest Expense | $149.00M |
| Net Income | $801.00M |
| EPS (Basic) | $1.51 |
| EPS (Diluted) | $1.51 |
| Shares Outstanding (Basic) | 528.00M |
| Shares Outstanding (Diluted) | 531.00M |
Key Highlights
- 1Net income attributable to MPC for Q2 2016 was $801 million ($1.51/share), a modest decrease from $826 million ($1.51/share) in Q2 2015.
- 2For the first six months of 2016, net income attributable to MPC was $802 million ($1.51/share), down from $1.72 billion ($3.14/share) in the same period of 2015, largely due to lower commodity prices impacting the Refining & Marketing segment.
- 3The Midstream segment demonstrated strong performance, with income from operations increasing significantly due to the inclusion of MarkWest's results following the December 2015 merger with MPLX.
- 4MPLX successfully completed a $984 million private placement of Series A Convertible Preferred Units, strengthening its financial position for capital expenditures and debt repayment.
- 5The company maintained robust liquidity, with $1.75 billion in cash and cash equivalents and substantial availability under its revolving credit facilities as of June 30, 2016.
- 6Despite lower commodity prices impacting revenue, MPC's Refining & Marketing segment benefited from a $370 million LCM reserve reversal, contributing positively to cost of revenues.
- 7Speedway, MPC's retail segment, showed improved income from operations driven by higher merchandise margins and gasoline/distillate gross margins, alongside a gain from a retail location sale.