Summary
Marathon Petroleum Corporation (MPC) reported a significant increase in net income attributable to MPC for the three and six months ended June 30, 2018, reaching $1.055 billion and $1.092 billion, respectively, compared to $483 million and $513 million in the same periods of 2017. This surge was primarily driven by strong performance in the Refining & Marketing segment, benefiting from favorable crack spreads and crude oil differentials, as well as robust growth in the Midstream segment, largely due to asset contributions from MPC to MPLX. The company also announced a definitive merger agreement with Andeavor (ANDV) on April 29, 2018, which is expected to create a leading U.S. refining, marketing, and midstream company. This strategic combination is anticipated to deliver substantial cost synergies and enhance geographic diversification. While the acquisition is a key focus, MPC also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
49 data points| Revenue | $22.32B |
| Cost of Revenue | $19.66B |
| Gross Profit | $2.66B |
| SG&A Expenses | $424.00M |
| Operating Expenses | $20.73B |
| Operating Income | $1.71B |
| Interest Expense | $229.00M |
| Net Income | $1.05B |
| EPS (Basic) | $2.30 |
| EPS (Diluted) | $2.27 |
| Shares Outstanding (Basic) | 459.00M |
| Shares Outstanding (Diluted) | 464.00M |
Key Highlights
- 1Net income attributable to MPC significantly increased year-over-year, rising from $483 million to $1.055 billion in Q2 2018 and from $513 million to $1.092 billion in the first six months of 2018.
- 2Refining & Marketing segment income from operations saw a substantial increase of $463 million in Q2 2018 and $400 million in the first six months of 2018, driven by favorable crack spreads and crude oil differentials.
- 3Midstream segment income from operations more than doubled year-over-year, increasing by $285 million in Q2 2018 and $543 million in the first six months of 2018, largely due to asset dropdowns to MPLX.
- 4MPC announced a definitive merger agreement with Andeavor (ANDV) on April 29, 2018, creating a combined entity expected to be a leading U.S. refiner, marketer, and midstream company, with anticipated $1 billion in annual synergies.
- 5The company repurchased approximately $2.21 billion of its common stock in the first six months of 2018, demonstrating a commitment to shareholder returns, and still has $5.98 billion remaining under its share repurchase authorization.
- 6Speedway segment income from operations decreased year-over-year, primarily due to lower gasoline and distillate margins and higher operating expenses, despite increased sales volumes.
- 7Total cash and cash equivalents increased significantly to $5.00 billion at June 30, 2018, from $3.01 billion at December 31, 2017, reflecting strong operational cash flow.