01—Abstract
Summary
Summary of the 10-Q filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Marathon Petroleum Corporation (MPC) reported a net loss attributable to MPC of $74 milliona, or $(0.24) per diluted share, for the first quarter of 2025, a significant decrease from a net income of $937 million, or $2.58 per diluted share, in the same period of 2024.
This decline was primarily driven by lower Refining & Marketing margins, which were impacted by decreased average refined product sales prices and crack spreads. Total revenues and other income also saw a notable decrease. Despite the consolidated net loss, the Midstream segment demonstrated strength, with adjusted EBITDA increasing due to fee escalations, higher throughputs, and contributions from recent acquisitions.
The company also continues to focus on strategic initiatives, including the planned acquisition of the remaining interest in BANGL, LLC, and has significant liquidity available, with $5.1 billionb in available capacity under MPC's credit facilities (excluding MPLX) and $3.81 billion in cash and cash equivalents at the end of the quarter. MPC also repurchased $1.06 billion of its common stock during the quarter.
02—Key points
Key Highlights
- Net loss attributable to MPC of $74 million for Q1 2025, a significant drop from net income of $937 million in Q1 2024, driven by lower Refining & Marketing margins.
- Refining & Marketing segment adjusted EBITDA declined substantially year-over-year, with per barrel margins decreasing from $8.22 to $1.91.
- Midstream segment adjusted EBITDA saw a healthy increase of $131 million, driven by fee escalations, higher throughputs, and recent acquisitions.
- Total revenues and other income decreased by $1.36 billion, primarily due to lower sales and other operating revenues stemming from reduced refined product sales prices.
- The company repurchased $1.06 billion of its common stock in Q1 2025, continuing its capital return program, with $6.72 billion remaining under authorized repurchase programs.
- MPC maintains strong liquidity with $5.1 billion in available capacity under its credit facilities (excluding MPLX) and $3.81 billion in cash and cash equivalents as of March 31, 2025.
- MPLX completed a significant midstream acquisition (Whiptail Midstream) and announced an agreement to acquire the remaining interest in BANGL, LLC, indicating continued strategic expansion in the midstream sector.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2025, Marathon Petroleum lost $0.00.
- Revenue$31.52B100.0%
- Cost of revenue−$29.36B93.2%
- Gross profit$2.16B6.8%
- Operating costs−$1.47B4.7%
- Operating income$687.0M2.2%
- Interest, other & tax−$761.0M2.4%
- Net income−$74.0M0.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 6, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $31.52B$32.71B | −3.6% |
| Cost of Revenue | $29.36B$29.59B | −0.8% |
| Gross Profit | $2.16B$3.11B | −30.7% |
| SG&A Expenses | $783.00M$779.00M | +0.5% |
| Operating Expenses | $31.16B$31.43B | −0.8% |
| Operating Income | $687.00M$1.78B | −61.5% |
| Interest Expense | $352.00M$341.00M | +3.2% |
| Net Income | -$74.00M$937.00M | −107.9% |
| EPS (Basic) | $-0.24$2.59 | −109.3% |
| EPS (Diluted) | $-0.24$2.58 | −109.3% |
| Shares Outstanding (Basic) | 313.00M361.00M | −13.3% |
| Shares Outstanding (Diluted) | 313.00M362.00M | −13.5% |
05—Questions
Frequently Asked Questions
What is the primary reason for the significant decrease in net income attributable to MPC in the first quarter of 2025 compared to the first quarter of 2024?
The primary reason for the significant decrease in net income attributable to MPC is the substantial decline in Refining & Marketing margins. This was driven by lower average refined product sales prices and a decrease in benchmark crack spreads, which impacted the profitability of the company's refining operations.
How did the different business segments perform in the first quarter of 2025?
The Refining & Marketing segment experienced a significant decline in performance due to lower margins. However, the Midstream segment showed strong performance with an increase in adjusted EBITDA, driven by fee escalations, higher throughputs, and contributions from recent acquisitions. The Renewable Diesel segment saw an improvement in revenue and adjusted EBITDA compared to the prior year quarter, largely due to increased sales volume and improved margins.
What is Marathon Petroleum's liquidity position and how is it managing its capital?
Marathon Petroleum maintains a strong liquidity position, with $5.1 billion in available capacity under its credit facilities (excluding MPLX) and $3.81 billion in cash and cash equivalents as of March 31, 2025. The company continues its capital return program through share repurchases, having spent $1.06 billion on repurchases in the first quarter, and also pays dividends. Strategically, it is investing in midstream growth through acquisitions like Whiptail Midstream and the pending BANGL, LLC acquisition.
Are there any significant ongoing legal or environmental matters that investors should be aware of?
The company is involved in various environmental matters, including remediation liabilities totaling $357 million and multiple climate-related lawsuits. While management believes the resolution of these matters will not individually or collectively have a material adverse effect, the ultimate outcome remains uncertain. There have been no material changes to previously disclosed legal matters or risk factors since the prior annual report.
06—Continue