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10-QPeriod: Q1 FY2021

Marathon Petroleum Corp Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 6, 2021For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) reported a net loss attributable to MPC of $242 million, or $0.37 per diluted share, for the first quarter of 2021. This marks a significant improvement from the $9.23 billion net loss, or $14.25 per diluted share, in the prior year period. The improvement is primarily driven by the absence of substantial impairment charges and an inventory valuation adjustment that negatively impacted the first quarter of 2020. Total revenues and other income increased to $22.88 billion from $20.99 billion year-over-year. The company continues to focus on strengthening its competitive position, improving commercial performance, and lowering its cost structure. The expected sale of Speedway to 7-Eleven remains on track for completion in the second quarter of 2021, which is anticipated to provide substantial cash proceeds to strengthen the balance sheet and return capital to shareholders.

Financial Statements
Beta
Revenue$22.71B
Cost of Revenue$21.08B
Gross Profit$1.63B
SG&A Expenses$575.00M
Operating Expenses$22.66B
Operating Income$217.00M
Interest Expense$351.00M
Net Income-$242.00M
EPS (Basic)$-0.37
EPS (Diluted)$-0.37
Shares Outstanding (Basic)651.00M
Shares Outstanding (Diluted)651.00M

Key Highlights

  • 1Net loss attributable to MPC improved significantly to $242 million in Q1 2021 from $9.23 billion in Q1 2020, largely due to the absence of large impairment charges recognized in the prior year.
  • 2Total revenues and other income increased by $1.88 billion year-over-year, reaching $22.88 billion in Q1 2021.
  • 3The sale of Speedway to 7-Eleven is proceeding as expected, with an anticipated close in Q2 2021, which is projected to generate approximately $16.5 billion in after-tax cash proceeds.
  • 4Refining & Marketing segment income from operations decreased by $101 million, primarily due to lower blended crack spreads and reduced throughputs, despite higher refined product sales prices.
  • 5Midstream segment revenue and income from operations increased due to lower operating expenses and higher natural gas prices, partially offset by lower gathered and processed volumes.
  • 6The company's liquidity, excluding MPLX, was $4.47 billion at March 31, 2021, with $3.73 billion in available capacity under its credit facilities and $734 million in cash and cash equivalents.
  • 7MPC is strategically repositioning its Martinez refinery to a renewable diesel facility and its Dickinson facility is ramping up renewable diesel production, signaling a commitment to lower carbon-intensity fuels.

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