Summary
Marathon Petroleum Corporation (MPC) reported its third quarter and first nine months of 2023 results, showing a decline in net income attributable to MPC compared to the prior year. This decrease was primarily driven by lower Refining & Marketing margins and a reduction in gains from asset disposals. Total revenues and other income also saw a significant decrease, mainly due to lower sales and operating revenues, reflecting decreased average refined product sales prices. Despite the lower reported income, the company's cash flow from operations remained strong. MPC continued its significant share repurchase program, returning substantial capital to shareholders. The company also provided an update on its strategic initiatives, including progress at the Martinez Renewables facility and the acquisition of an interest in LF Bioenergy. Management indicated that demand remains strong, and the company is focused on operational efficiency and strategic growth opportunities, while navigating market volatility and regulatory developments.
Financial Highlights
49 data points| Revenue | $40.92B |
| Cost of Revenue | $34.93B |
| Gross Profit | $5.99B |
| SG&A Expenses | $824.00M |
| Operating Expenses | $36.83B |
| Operating Income | $4.75B |
| Interest Expense | $331.00M |
| Net Income | $3.28B |
| EPS (Basic) | $8.31 |
| EPS (Diluted) | $8.28 |
| Shares Outstanding (Basic) | 394.00M |
| Shares Outstanding (Diluted) | 396.00M |
Key Highlights
- 1Net income attributable to MPC for Q3 2023 was $3.28 billion ($8.28 per diluted share), down from $4.48 billion ($9.06 per diluted share) in Q3 2022.
- 2For the first nine months of 2023, net income attributable to MPC was $8.23 billion ($19.57 per diluted share), down from $11.20 billion ($21.04 per diluted share) in the same period of 2022.
- 3Total revenues and other income decreased by $5.65 billion in Q3 2023 compared to Q3 2022, primarily due to lower sales and operating revenues and a significant decrease in net gain on disposal of assets.
- 4Cash provided by operating activities for the first nine months of 2023 was $12.99 billion, an increase from $11.98 billion in the same period of 2022.
- 5The company repurchased approximately $2.82 billion of its common stock in Q3 2023 and $9.07 billion in the first nine months of 2023.
- 6As of September 30, 2023, MPC had $4.31 billion remaining under its share repurchase authorizations.
- 7MPC announced an additional $5.0 billion share repurchase authorization on October 25, 2023.