Summary
Marathon Petroleum Corporation (MPC) reported strong financial performance for the nine months ended September 30, 2017, with net income attributable to MPC increasing significantly to $1.416 billion, up from $947 million in the prior year period. This growth was driven by substantial improvements in the Refining & Marketing segment, benefiting from higher crack spreads and increased throughput, and robust performance in the Midstream segment, largely due to higher throughput volumes and improved natural gas and NGL prices. The Speedway segment demonstrated comparable operating income year-over-year, with contributions from a new joint venture offsetting lower fuel and merchandise margins. Key strategic initiatives during the period included significant asset "dropdowns" to MPLX LP, MPC's midstream master limited partnership, which generated substantial cash proceeds used to support a robust share repurchase program. MPC also strengthened its liquidity position with new credit facilities. The company continues to focus on operational efficiency and strategic growth, particularly within its integrated midstream platform via MPLX, while managing environmental and legal contingencies.
Financial Highlights
50 data points| Revenue | $19.21B |
| Cost of Revenue | $16.62B |
| Gross Profit | $2.59B |
| SG&A Expenses | $411.00M |
| Operating Expenses | $17.81B |
| Operating Income | $1.58B |
| Interest Expense | $172.00M |
| Net Income | $903.00M |
| EPS (Basic) | $1.79 |
| EPS (Diluted) | $1.77 |
| Shares Outstanding (Basic) | 504.00M |
| Shares Outstanding (Diluted) | 508.00M |
Key Highlights
- 1Net income attributable to MPC increased by over 50% to $1.416 billion for the first nine months of 2017 compared to $947 million in the same period of 2016.
- 2The Refining & Marketing segment saw a significant increase in operating income, driven by wider crack spreads and higher refinery throughputs.
- 3The Midstream segment, primarily driven by MPLX, experienced growth in income from operations due to increased throughput volumes and higher commodity prices.
- 4MPC completed significant 'dropdown' transactions of midstream assets to MPLX, contributing $1.42 billion in cash and MPLX equity, which helped fund substantial share repurchases.
- 5Total capital expenditures and investments increased to $2.90 billion for the first nine months of 2017, with significant investments in the Midstream segment, including acquisitions and pipeline projects.
- 6The company maintained a strong liquidity position with $2.09 billion in cash and cash equivalents and substantial unused revolving credit facilities.
- 7MPC repurchased $1.62 billion of its common stock in the first nine months of 2017, significantly up from $177 million in the prior year period.