Summary
Marathon Petroleum Corporation (MPC) reported a significant turnaround in its financial performance for the nine months ended September 30, 2021, compared to the same period in 2020. This improvement was largely driven by the substantial gain from the sale of its Speedway retail business, coupled with a recovery in refined product sales prices and volumes, and the absence of significant impairment charges experienced in the prior year. The company generated a net income of $8.96 billion, a stark contrast to a net loss of $10.11 billion in the prior year period. The third quarter of 2021 also showed strong performance, with net income attributable to MPC of $694 million ($1.09 per diluted share), a significant improvement from a net loss of $886 million ($1.36 per diluted share) in the third quarter of 2020. This quarter's results were bolstered by higher refined product sales prices and volumes, and the elimination of impairment and restructuring expenses that impacted the prior year's results. The company continues to focus on strengthening its balance sheet and returning capital to shareholders, as evidenced by substantial share repurchase programs and debt reduction efforts.
Financial Highlights
49 data points| Revenue | $32.32B |
| Cost of Revenue | $29.56B |
| Gross Profit | $2.76B |
| SG&A Expenses | $681.00M |
| Operating Expenses | $31.27B |
| Operating Income | $1.34B |
| Interest Expense | $331.00M |
| Net Income | $694.00M |
| EPS (Basic) | $1.10 |
| EPS (Diluted) | $1.09 |
| Shares Outstanding (Basic) | 633.00M |
| Shares Outstanding (Diluted) | 637.00M |
Key Highlights
- 1For the nine months ended September 30, 2021, MPC reported a net income of $8.96 billion, a significant improvement from a net loss of $10.11 billion in the same period of 2020, largely due to the gain from the Speedway sale and operational recovery.
- 2The sale of the Speedway retail business on May 14, 2021, generated approximately $21.38 billion in cash proceeds, resulting in a pretax gain of $11.68 billion ($8.02 billion after taxes).
- 3Third quarter 2021 net income attributable to MPC was $694 million, or $1.09 per diluted share, compared to a net loss of $886 million, or $(1.36) per diluted share, in the third quarter of 2020.
- 4The company repurchased approximately $1.91 billion of its common stock during the first nine months of 2021, with $8.04 billion remaining under its current repurchase authorizations as of September 30, 2021.
- 5MPC made significant progress in debt reduction, utilizing a portion of the Speedway proceeds to redeem various senior notes totaling over $2.5 billion.
- 6The Midstream segment (primarily MPLX) showed resilient performance, with segment income from operations of $2.99 billion for the nine months ended September 30, 2021, compared to $2.73 billion in the prior year period, driven by higher natural gas prices and increased throughputs.
- 7MPC is strategically repositioning its Martinez refinery to a renewable diesel facility, with initial production expected in the second half of 2022, and its Dickinson renewable fuels facility reached full design operating capacity in Q2 2021.