Summary
Marathon Petroleum Corporation (MPC) reported a significant year-over-year decrease in net income attributable to MPC for the first quarter of 2024, falling to $937 million ($2.58 per diluted share) from $2.72 billion ($6.09 per diluted share) in the prior year period. This decline was primarily driven by lower Refining & Marketing margins, impacted by narrower crack spreads and increased turnaround activity, which led to higher operating costs and reduced refinery throughput. While total revenues and other income also saw a decrease, income from equity method investments and other income sources provided some offset. The company's Midstream segment demonstrated resilience, with adjusted EBITDA increasing year-over-year, supported by higher rates and processing volumes. MPC continued its capital allocation strategy, repurchasing $2.22 billion of its common stock during the quarter and announcing an additional $5.0 billion share repurchase authorization. The company maintains strong liquidity with over $12 billion available for MPC (excluding MPLX), underscoring its financial stability despite the challenging refining environment.
Financial Highlights
49 data points| Revenue | $32.71B |
| Cost of Revenue | $29.59B |
| Gross Profit | $3.11B |
| SG&A Expenses | $779.00M |
| Operating Expenses | $31.43B |
| Operating Income | $1.78B |
| Interest Expense | $341.00M |
| Net Income | $937.00M |
| EPS (Basic) | $2.59 |
| EPS (Diluted) | $2.58 |
| Shares Outstanding (Basic) | 361.00M |
| Shares Outstanding (Diluted) | 362.00M |
Key Highlights
- 1Net income attributable to MPC significantly decreased to $937 million in Q1 2024 from $2.72 billion in Q1 2023, primarily due to lower refining margins and higher turnaround costs.
- 2Refining & Marketing segment adjusted EBITDA saw a substantial decline to $1.87 billion from $3.85 billion year-over-year, driven by narrower crack spreads and reduced refinery throughput.
- 3Midstream segment adjusted EBITDA increased to $1.59 billion from $1.53 billion year-over-year, showcasing resilience in its logistics and gathering operations.
- 4Total revenues and other income decreased by $1.87 billion to $33.21 billion, mainly due to lower sales from the Refining & Marketing segment.
- 5The company repurchased $2.22 billion of its common stock in Q1 2024, and announced an additional $5.0 billion share repurchase authorization, indicating a commitment to returning capital to shareholders.
- 6MPC maintained strong liquidity, with over $12 billion in available liquidity (excluding MPLX) as of March 31, 2024, supporting ongoing operations and capital allocation plans.
- 7The company reported a significant decrease in provision for income taxes, contributing to a partial offset of the decline in pre-tax income.