8-KEarnings & Results

Marathon Petroleum Corp 8-K Report, Financial Results (Feb 26, 2021)

Filed February 26, 2021For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) filed an 8-K on February 26, 2021, to report revisions to its previously announced fourth quarter and full-year 2020 financial results. The primary adjustment relates to a $93 million increase in the benefit for income taxes on continuing operations, stemming from a reduction in the estimate of state deferred income tax liabilities. This adjustment increases reported net income attributable to MPC by $93 million and net income per share by $0.15 for the fourth quarter of 2020. Importantly, MPC stated that these revisions do not impact segment operating results, discontinued operations, cash flows, or adjusted earnings. The company will publish a revised earnings release, presentation, and investor packet to reflect these changes. Investors should note that these revised figures will be formally incorporated into MPC's upcoming Form 10-K filing.

Key Highlights

  • 1MPC revised its Q4 2020 financial results, increasing the income tax benefit by $93 million.
  • 2The revision is due to an updated estimate of state deferred income tax liabilities.
  • 3Reported net income attributable to MPC for Q4 2020 increased by $93 million to $285 million.
  • 4Net income per share for Q4 2020 increased by $0.15 to $0.44.
  • 5These revisions do not affect segment operating results, discontinued operations, cash flows, or adjusted earnings.
  • 6A revised earnings release and investor materials will be published to reflect these changes.

Frequently Asked Questions

The revision is primarily due to Marathon Petroleum Corporation (MPC) reducing its estimate of state deferred income tax liabilities, leading to an incremental deferred benefit for income taxes on continuing operations.

The revision increases the benefit for income taxes by $93 million. This results in a reported net income attributable to MPC of $285 million (up from $192 million) and a net income per share of $0.44 (up from $0.29) for the fourth quarter of 2020.

No, MPC explicitly stated that these revisions had no effect on segment operating results, income from discontinued operations, cash flows, or adjusted earnings as previously reported.

These revised results will be formally included in Marathon Petroleum Corporation's (MPC) Annual Report on Form 10-K for the year ended December 31, 2020. A revised earnings release and accompanying investor materials will also be published on MPC's investor relations website.