Summary
Marathon Petroleum Corporation (MPC) reported solid financial results for the second quarter and first six months of 2019, demonstrating the strategic benefits of the Andeavor acquisition completed in October 2018. Total revenues and other income significantly increased year-over-year, driven by higher sales volumes across all segments, particularly in Refining & Marketing due to the expanded operational footprint. While net income attributable to MPC saw a modest increase for the quarter and six-month period, this was against a backdrop of higher costs and expenses, including increased depreciation and amortization stemming from the Andeavor acquisition, and higher net interest and other financial costs. The company continued to return capital to shareholders through share repurchases and dividends, underscoring a commitment to shareholder value. Liquidity remains strong, supported by significant available credit facilities and cash on hand, positioning MPC to navigate market dynamics and pursue future growth opportunities. The successful integration of Andeavor and the upcoming merger of MPLX and ANDX are key strategic initiatives that are expected to further enhance the company's financial performance and operational efficiency.
Financial Highlights
49 data points| Revenue | $30.24B |
| Cost of Revenue | $29.68B |
| Gross Profit | $557.00M |
| SG&A Expenses | $886.00M |
| Operating Expenses | $31.63B |
| Operating Income | $1.70B |
| Interest Expense | $350.00M |
| Net Income | $1.11B |
| EPS (Basic) | $1.67 |
| EPS (Diluted) | $1.66 |
| Shares Outstanding (Basic) | 662.00M |
| Shares Outstanding (Diluted) | 666.00M |
Key Highlights
- 1Total revenues and other income increased significantly in both the second quarter and the first six months of 2019 compared to the prior year, largely driven by the inclusion of Andeavor's operations and increased sales volumes.
- 2Net income attributable to MPC showed modest growth, reaching $1.11 billion ($1.66/diluted share) for Q2 2019 and $1.10 billion ($1.63/diluted share) for the first six months of 2019, despite higher operating costs and interest expenses.
- 3The Refining & Marketing segment saw a substantial increase in throughput and revenues, benefiting from the expanded refinery network post-Andeavor acquisition, though segment income from operations decreased due to higher costs.
- 4The Retail segment experienced strong revenue growth, driven by the integration of Andeavor's retail locations, with significant improvements in fuel and merchandise margins.
- 5The Midstream segment reported increased revenues and operating income, with contributions from ANDX and growth in MPLX's businesses, highlighting the strategic value of these integrated operations.
- 6The company returned substantial capital to shareholders through share repurchases ($1.39 billion in H1 2019) and dividends, with $3.52 billion remaining on its share repurchase authorization as of June 30, 2019.
- 7Liquidity remains robust with $7.93 billion in total liquidity at June 30, 2019, including cash and available credit facilities, supporting ongoing operations and strategic investments.