Summary
Marathon Petroleum Corporation (MPC) reported solid financial results for the third quarter and first nine months of 2019, driven significantly by the acquisition of Andeavor which closed in October 2018. Net income attributable to MPC increased in both periods compared to the prior year, demonstrating the integration benefits. Revenues saw substantial growth due to higher refined product sales volumes, largely from the expanded refining and retail footprint. Key operational segments, Refining & Marketing, Retail, and Midstream, all contributed positively to income from operations, reflecting the company's integrated business model. The company also made significant progress in its midstream operations through MPLX LP, including the acquisition of Andeavor Logistics LP (ANDX), which simplified MPLX's structure and enhanced its scale. MPC continues to return capital to shareholders through share repurchases and dividends, underscoring its commitment to shareholder value.
Financial Highlights
49 data points| Revenue | $27.55B |
| Cost of Revenue | $24.34B |
| Gross Profit | $3.21B |
| SG&A Expenses | $761.00M |
| Operating Expenses | $26.01B |
| Operating Income | $1.68B |
| Interest Expense | $349.00M |
| Net Income | $1.09B |
| EPS (Basic) | $1.67 |
| EPS (Diluted) | $1.66 |
| Shares Outstanding (Basic) | 656.00M |
| Shares Outstanding (Diluted) | 660.00M |
Key Highlights
- 1Net income attributable to MPC increased by $358 million to $1.10 billion in Q3 2019 and by $365 million to $2.19 billion in the first nine months of 2019 compared to the prior year periods, largely driven by the Andeavor acquisition.
- 2Total revenues and other income increased significantly, up $8.07 billion in Q3 and $28.94 billion year-to-date, primarily due to higher sales and operating revenues resulting from the integration of Andeavor's operations.
- 3Refining & Marketing segment income from operations increased by $217 million in Q3 2019, with higher margins and throughputs, partially offset by increased operating and distribution costs. Year-to-date, segment income decreased slightly by $103 million, reflecting increased costs associated with the Andeavor integration.
- 4Retail segment income from operations saw a substantial increase of $281 million in Q3 and $690 million year-to-date, driven by the addition of Andeavor's retail operations and improved fuel and merchandise margins.
- 5Midstream segment revenue and income from operations showed strong growth, benefiting from the inclusion of ANDX revenues and contributions from MPLX's expanding businesses.
- 6MPC returned $1.89 billion to shareholders through share repurchases in the first nine months of 2019, and had $3.02 billion remaining under its share repurchase authorization as of September 30, 2019.
- 7The company announced plans to separate its retail transportation fuel and convenience store business (Speedway) into an independent publicly traded company, expected to be completed by year-end 2020.