Early Access

10-QPeriod: Q2 FY2022

Marathon Petroleum Corp Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 2, 2022For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) reported strong financial results for the second quarter and first six months of 2022, driven by a significant increase in refining and marketing margins and improved midstream operations. Total revenues and other income surged to $54.2 billion for the quarter and $92.6 billion for the first six months, a substantial jump from the prior year, largely due to increased refined product sales prices and volumes. The company generated robust net income attributable to MPC of $5.87 billion in the second quarter of 2022, though this represents a decrease from the prior year's $8.51 billion, primarily due to the absence of the significant gain from the Speedway sale in 2021. Despite this year-over-year comparison, the underlying operational performance remains strong, with income from continuing operations significantly higher than the prior year. MPC also highlighted its commitment to capital discipline, operational excellence, and sustainability, including progress on its Martinez Renewable Fuels Project joint venture with Neste. MPC continues to return capital to shareholders through substantial share repurchases, authorizing an additional $5 billion in August 2022, adding to its existing repurchase programs. The company maintains a strong liquidity position and an investment-grade credit profile, providing confidence in its ongoing operational and financial strategies.

Financial Statements
Beta
Revenue$53.80B
Cost of Revenue$44.21B
Gross Profit$9.59B
SG&A Expenses$694.00M
Operating Expenses$45.91B
Operating Income$8.33B
Interest Expense$324.00M
Net Income$5.87B
EPS (Basic)$11.03
EPS (Diluted)$10.95
Shares Outstanding (Basic)532.00M
Shares Outstanding (Diluted)536.00M

Key Highlights

  • 1Total revenues and other income for the second quarter of 2022 reached $54.2 billion, a substantial increase from $29.8 billion in the same period of 2021, driven by higher refined product sales prices and volumes.
  • 2Net income attributable to MPC was $5.87 billion ($10.95 per diluted share) for Q2 2022, a decrease from $8.51 billion ($13.00 per diluted share) in Q2 2021, primarily due to the absence of the gain from the Speedway sale in the prior year.
  • 3Refining & Marketing segment adjusted EBITDA saw a significant increase to $7.76 billion in Q2 2022 from $751 million in Q2 2021, reflecting improved refining margins.
  • 4The company's cash position remains strong, with cash and cash equivalents and short-term investments totaling $13.02 billion at June 30, 2022.
  • 5MPC repurchased approximately 34.5 million shares of common stock for $3.33 billion in Q2 2022 and announced an additional $5 billion share repurchase authorization in August 2022.
  • 6The Martinez Renewable Fuels Project joint venture with Neste is progressing, with the first phase targeted for mechanical completion in late Q4 2022.
  • 7MPLX, MPC's midstream subsidiary, reported segment adjusted EBITDA of $1.46 billion for Q2 2022, an increase from $1.31 billion in Q2 2021.

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