FINDLAY, Ohio, Feb. 2, 2022 /PRNewswire/ --
- Reported fourth-quarter net income of $774 million, or $1.27 per diluted share; reported adjusted net
income of $794 million, or
$1.30 per diluted share
- Returned approximately $3
billion of capital through share repurchases since
Oct 31; completed approximately 55%
of $10 billion repurchase program
through Jan 31; announced an
incremental $5 billion repurchase
authorization
- Announced 2022 MPC standalone capital spending outlook of
$1.7 billion; approximately 50% of
growth capital for Martinez refinery conversion
- Martinez renewable fuels project total cost of $1.2 billion; approximately $300 million spent to date, $700 million for 2022, and $200 million for 2023
Marathon Petroleum Corp. (NYSE: MPC) today reported net income
of $774 million, or $1.27 per diluted share, for the fourth quarter
of 2021, compared with net income of $285
million, or $0.44 per diluted
share, for the fourth quarter of 2020.
Adjusted net income was $794
million, or $1.30 per diluted
share, for the fourth quarter of 2021. This compares to an adjusted
net loss of $608 million, or
$(0.94) per diluted share, for the
fourth quarter of 2020. For the fourth quarter of 2021, the
adjustments exclude $132 million of
pre-tax charges related to senior note redemptions and include an
incremental $112 million of tax
expense to adjust all results to a 24% rate. Adjustments are shown
in the accompanying release tables.
"In 2021, we progressed all three of our strategic initiatives,"
said President and Chief Executive Officer Michael J. Hennigan. "On our portfolio, we
completed the Speedway sale, started up our Dickinson renewable
diesel facility, and progressed the conversion of our Martinez
refinery into a renewable fuels facility. Commercially, we executed
initiatives to enhance the value of our assets by securing
logistically advantaged feedstocks through our JV with ADM to
supply feedstock to Dickinson and adding pretreatment facilities.
Throughout this year, we maintained $1.5
billion of cost reductions and today, the announcement of
our 2022 capital outlook reflects our continued commitment to
capital discipline.
"Another focus has been to return capital to shareholders. We
have completed approximately 55% of our $10
billion capital return program and today, as part of our
long term commitment to return capital, announced an incremental
$5 billion share repurchase
authorization."
Results from Operations
Income from operations was $1.8
billion in the fourth quarter of 2021, compared to
$795 million in the fourth quarter of
2020.
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing(a)
|
$
|
881
|
|
$
|
(1,579)
|
|
$
|
1,016
|
|
$
|
(5,189)
|
Midstream
|
|
1,070
|
|
|
974
|
|
|
4,061
|
|
|
3,708
|
Corporate
|
|
(173)
|
|
|
(175)
|
|
|
(696)
|
|
|
(800)
|
Income (loss) from
continuing operations before items not allocated to
segments
|
|
1,778
|
|
|
(780)
|
|
|
4,381
|
|
|
(2,281)
|
Items not allocated
to segments:
|
|
|
|
|
|
|
|
|
|
|
|
LCM inventory valuation adjustment
|
|
—
|
|
|
1,185
|
|
|
—
|
|
|
—
|
Impairment and idling expenses
|
|
—
|
|
|
(146)
|
|
|
(81)
|
|
|
(9,741)
|
Restructuring expenses
|
|
—
|
|
|
(19)
|
|
|
—
|
|
|
(367)
|
Litigation
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
Gain on sale of assets
|
|
—
|
|
|
66
|
|
|
—
|
|
|
66
|
Transaction-related costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
Income (loss) from
continuing operations
|
$
|
1,778
|
|
$
|
390
|
|
$
|
4,300
|
|
$
|
(12,247)
|
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
$
|
—
|
|
$
|
419
|
|
$
|
613
|
|
$
|
1,701
|
LCM inventory valuation
adjustment
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
11,682
|
|
|
—
|
Transaction-related
costs
|
|
—
|
|
|
(39)
|
|
|
(46)
|
|
|
(114)
|
Income from
discontinued operations
|
$
|
—
|
|
$
|
405
|
|
$
|
12,249
|
|
$
|
1,587
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing and discontinued operations
|
$
|
1,778
|
|
$
|
795
|
|
$
|
16,549
|
|
$
|
(10,660)
|
|
|
(a)
|
Includes last-in,
first-out (LIFO) liquidation charges of $305 million for the fourth
quarter 2020 and $561 million for the year 2020.
|
Adjusted earnings before interest, taxes, depreciation, and
amortization (adjusted EBITDA) was $2.8
billion in the fourth quarter of 2021, compared with
$907 million for the fourth quarter
of 2020. The fourth quarter of 2020 includes $426 million of EBITDA from Speedway discontinued
operations. As detailed in the table below, adjusted EBITDA is
shown for both continuing and discontinued operations. Adjusted
EBITDA from continuing operations excludes refining planned
turnaround costs.
Reconciliation of Income (Loss) from Operations to Adjusted
EBITDA
|
Three Months
Ended December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss)
from operations
|
$
|
881
|
|
$
|
(1,579)
|
|
$
|
1,016
|
|
$
|
(5,189)
|
Add: Depreciation and
amortization
|
|
464
|
|
|
465
|
|
|
1,870
|
|
|
1,857
|
Refining
planned turnaround costs
|
|
204
|
|
|
107
|
|
|
582
|
|
|
832
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
LIFO
liquidation charge
|
|
—
|
|
|
305
|
|
|
—
|
|
|
561
|
Segment Adjusted
EBITDA
|
|
1,549
|
|
|
(702)
|
|
|
3,518
|
|
|
(1,939)
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income from
operations
|
|
1,070
|
|
|
974
|
|
|
4,061
|
|
|
3,708
|
Add: Depreciation and
amortization
|
|
335
|
|
|
343
|
|
|
1,329
|
|
|
1,353
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
Segment Adjusted
EBITDA
|
|
1,405
|
|
|
1,317
|
|
|
5,410
|
|
|
5,061
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA
|
|
2,954
|
|
|
615
|
|
|
8,928
|
|
|
3,122
|
Corporate
|
|
(173)
|
|
|
(175)
|
|
|
(696)
|
|
|
(800)
|
Add: Depreciation and
amortization
|
|
14
|
|
|
41
|
|
|
109
|
|
|
165
|
Adjusted EBITDA
from continuing operations
|
$
|
2,795
|
|
$
|
481
|
|
$
|
8,341
|
|
$
|
2,487
|
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
$
|
—
|
|
$
|
419
|
|
$
|
613
|
|
$
|
1,701
|
Add: Depreciation and
amortization(a)
|
|
—
|
|
|
7
|
|
|
3
|
|
|
244
|
Adjusted EBITDA
from discontinued operations
|
$
|
—
|
|
$
|
426
|
|
$
|
616
|
|
$
|
1,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
from continuing and discontinued operations
|
$
|
2,795
|
|
$
|
907
|
|
$
|
8,957
|
|
$
|
4,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
As of August 2, 2020,
MPC ceased recording depreciation and amortization for
Speedway.
|
Refining & Marketing (R&M)
R&M segment income from operations was $881 million in the fourth quarter of 2021,
compared with a loss of $1.6 billion
for the fourth quarter of 2020.
Segment adjusted EBITDA was $1.5
billion in the fourth quarter of 2021, versus a loss of
$702 million for the fourth quarter
of 2020. Segment adjusted EBITDA excludes refining planned
turnaround costs, which totaled $204
million in the fourth quarter of 2021 and $107 million in the fourth quarter of 2020. It
also excludes a non-cash LIFO liquidation charge of $305 million in the fourth quarter of 2020. The
increase in R&M earnings was primarily due to higher crack
spreads in all regions, wider differentials, and higher
throughput.
R&M margin was $15.88 per
barrel for the fourth quarter of 2021, versus $7.42 per barrel, excluding the LIFO liquidation
charge, for the fourth quarter of 2020. Crude capacity utilization
was 94%, resulting in total throughput of 2.9 million barrels per
day.
Midstream
Midstream segment income from operations, which primarily
reflects the results of MPLX LP (NYSE: MPLX), was $1.1 billion in the fourth quarter of 2021,
compared with $974 million for the
fourth quarter of 2020.
Segment adjusted EBITDA was $1.4
billion in the fourth quarter of 2021, versus $1.3 billion for the fourth quarter of 2020.
Results for the quarter benefited from higher revenue partially
offset by higher operating expenses.
Corporate and Items Not Allocated
Corporate expenses totaled $173
million in the fourth quarter of 2021, compared with
$175 million in the fourth quarter of
2020.
Speedway
This business was sold on May 14,
2021. Historic results are reported as discontinued
operations.
Financial Position and Liquidity
As of Dec. 31, 2021, MPC had
$10.8 billion of cash, cash
equivalents, and short-term investments. There were no borrowings
outstanding under the company's $5
billion five-year bank revolving credit facility.
MPC debt at the end of the fourth quarter of 2021 totaled
$7.0 billion, excluding MPLX debt.
MPC's debt-to-capital ratio, excluding MPLX, was 21% at the end of
the fourth quarter of 2021.
In the fourth quarter, the company redeemed $1.25 billion outstanding aggregate principal
amount of its senior notes due May
2023, and $850 million
outstanding aggregate principal amount of its senior notes due
December 2023. Both redemptions
required payment of make-whole premiums.
Strategic and Operations Update
The company repurchased approximately $3
billion of company shares from October 31, 2021 to January 31, 2022. Approximately 55% of the
$10 billion repurchase program has
been completed.
Additionally, on February 2, the
company announced that its board of directors has approved an
incremental $5 billion share
repurchase authorization. The authorization has no expiration date.
MPC may utilize various methods to effect the repurchases, which
could include open market repurchases, negotiated block
transactions, accelerated share repurchases, tender offers or open
market solicitations for shares, some of which may be effected
through Rule 10b5-1 plans. The timing of repurchases will depend
upon several factors, including market and business conditions, and
repurchases may be discontinued at any time.
MPC's capital spending outlook for 2022 is $1.7 billion. Approximately 80% of overall
spending is focused on growth capital and 20% on sustaining
capital. Of the $1.3 billion of
growth capital, approximately 50% is currently allocating to
completing the Martinez refinery conversion. Total project cost for
Martinez is expected to be $1.2
billion with approximately $200
million remaining in 2023.
MPC has already sourced some advantaged feedstock for Martinez
and is engaged in negotiations with multiple parties for the
balance. The company's strategy is multi-faceted including long
term arrangements, joint ventures and alliances. The Martinez
facility is expected to produce 260 million gallons per year of
renewable diesel by the second half of 2022, with pretreatment
capabilities coming online in 2023. The facility is expected to be
capable of producing 730 million gallons per year by the end of
2023.
The Midstream segment remains focused on executing the strategic
priorities of strict capital discipline, lowering the cost
structure, and portfolio optimization. MPLX announced a capital
outlook of $900 million, of which
approximately $760 million is growth
capital. MPLX continues to evaluate opportunities to expand its
logistics to meet the needs of today and participate in an
energy-diverse future.
2022 Capital Plan
($ millions)
|
|
MPC (excluding
MPLX)
|
|
|
Refining &
Marketing Segment:
|
$
|
1,625
|
|
Growth -
Ongoing Projects
|
|
525
|
|
Growth -
Renewables
|
|
800
|
|
Maintenance
|
|
300
|
|
Midstream Segment
(excluding MPLX)
|
|
10
|
|
Corporate and Other
(a)
|
|
100
|
|
Total MPC
(excluding MPLX)
|
$
|
1,735
|
|
|
|
|
MPLX
Total
|
$
|
900
|
|
|
|
(a)
|
Does not include
capitalized interest
|
First Quarter 2022
Outlook
|
|
Refining &
Marketing Segment:
|
|
|
Refining operating
costs per barrel(a)
|
$
|
5.10
|
Distribution costs (in
millions)
|
$
|
1,300
|
Refining planned
turnaround costs (in millions)
|
$
|
155
|
Depreciation and
amortization (in millions)
|
$
|
465
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
Crude oil refined
|
|
2,685
|
Other charge and blendstocks
|
|
200
|
Total
|
|
2,885
|
|
|
|
(a)
Excludes refining
planned turnaround and depreciation and amortization
expense
|
|
Corporate (in
millions)
|
$
|
170
|
|
|
|
Conference Call
At 11:00 a.m. EST today, MPC will
hold a conference call and webcast to discuss the reported results
and provide an update on company operations. Interested parties may
listen by visiting MPC's website at www.marathonpetroleum.com.
A replay of the webcast will be available on the company's website
for two weeks. Financial information, including the earnings
release and other investor-related materials, will also be
available online prior to the conference call and webcast
at www.marathonpetroleum.com.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated,
downstream energy company headquartered in Findlay, Ohio. The company operates the
nation's largest refining system. MPC's marketing system includes
branded locations across the United
States, including Marathon brand retail outlets. MPC also
owns the general partner and majority limited partner interest in
MPLX LP, a midstream company that owns and operates gathering,
processing, and fractionation assets, as well as crude oil and
light product transportation and logistics infrastructure. More
information is available at www.marathonpetroleum.com.
Investor Relations Contacts: (419)
421-2071
Kristina Kazarian,
Vice President
Brian Worthington, Manager
Kenan Kinsey, Analyst
Media Contact: (419) 421-3312
Jamal Kheiry,
Communications Manager
References to Earnings and Defined Terms
References to earnings mean net income attributable to MPC
from the statements of income. Unless otherwise indicated,
references to earnings and earnings per share are MPC's share after
excluding amounts attributable to noncontrolling interests.
Forward-Looking Statements
This press release contains forward-looking statements
regarding MPC. These forward-looking statements may relate to,
among other things, MPC's expectations, estimates and projections
concerning its business and operations, financial priorities,
strategic plans and initiatives, capital return plans, including
the completion of the Speedway sale proceeds capital return program
within the anticipated timeframe, operating cost and capital
expenditure reduction objectives, and environmental, social and
governance goals. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "commitment," "could," "design," "estimate," "expect,"
"forecast," "goal," "guidance," "imply," "intend," "may,"
"objective," "opportunity," "outlook," "plan," "policy,"
"position," "potential," "predict," "priority," "project,"
"proposition," "prospective," "pursue," "seek," "should,"
"strategy," "target," "will," "would" or other similar expressions
that convey the uncertainty of future events or outcomes. MPC
cautions that these statements are based on management's current
knowledge and expectations and are subject to certain risks and
uncertainties, many of which are outside of the control of MPC,
that could cause actual results and events to differ materially
from the statements made herein. Factors that could cause MPC's
actual results to differ materially from those implied in the
forward-looking statements include but are not limited to: general
economic, political or regulatory developments, including
inflation, changes in governmental policies relating to refined
petroleum products, crude oil, natural gas or NGLs, or taxation;
the magnitude, duration and extent of future resurgences of the
COVID-19 pandemic and its effects, including the continuation or
re-imposition of travel restrictions, business and school closures,
increased remote work, stay at home orders and other actions taken
by individuals, government and the private sector to stem the
spread of the virus; the regional, national and worldwide demand
for refined products and related margins; the regional, national or
worldwide availability and pricing of crude oil and other
feedstocks and related pricing differentials; the success or timing
of completion of ongoing or anticipated projects or transactions,
including the conversion of the Martinez Refinery to a renewable
fuels facility and joint venture with ADM; the availability of
desirable strategic alternatives for the Kenai refinery or other
portfolio assets and the ability to obtain regulatory and other
approvals with respect thereto; accidents or other unscheduled
shutdowns affecting our refineries, machinery, pipelines,
processing, fractionation and treating facilities or equipment,
means of transportation, or those of our suppliers or customers;
the impact of adverse market conditions or other similar risks to
those identified herein affecting MPLX; and the factors set forth
under the heading "Risk Factors" in MPC's Annual Report on Form
10-K for the year ended Dec. 31,
2020, and in other filings with the SEC. Any forward-looking
statement speaks only as of the date of the applicable
communication and we undertake no obligation to update any
forward-looking statement except to the extent required by
applicable law.
Copies of MPC's Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other SEC filings are available on the SEC's
website, MPC's website at
https://www.marathonpetroleum.com/Investors/ or by contacting MPC's
Investor Relations office. Copies of MPLX's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other SEC filings are
available on the SEC's website, MPLX's website at
http://ir.mplx.com or by contacting MPLX's Investor Relations
office.
Consolidated
Statements of Income (Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In millions,
except per-share data)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and other operating revenues(a)
|
$
|
35,336
|
|
$
|
17,972
|
|
$
|
119,983
|
|
$
|
69,779
|
Income
(loss) from equity method investments(b)
|
|
152
|
|
|
102
|
|
|
458
|
|
|
(935)
|
Net gain
on disposal of assets
|
|
18
|
|
|
64
|
|
|
21
|
|
|
70
|
Other
income
|
|
102
|
|
|
49
|
|
|
468
|
|
|
118
|
Total revenues
and other income
|
|
35,608
|
|
|
18,187
|
|
|
120,930
|
|
|
69,032
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues (excludes items below)(a)
|
|
32,184
|
|
|
17,216
|
|
|
110,008
|
|
|
65,733
|
LCM
inventory valuation adjustment
|
|
—
|
|
|
(1,185)
|
|
|
—
|
|
|
—
|
Impairment expense
|
|
—
|
|
|
146
|
|
|
—
|
|
|
8,426
|
Depreciation and amortization
|
|
813
|
|
|
849
|
|
|
3,364
|
|
|
3,375
|
Selling,
general and administrative expenses
|
|
656
|
|
|
630
|
|
|
2,537
|
|
|
2,710
|
Restructuring expenses
|
|
—
|
|
|
19
|
|
|
—
|
|
|
367
|
Other
taxes
|
|
177
|
|
|
122
|
|
|
721
|
|
|
668
|
Total costs and
expenses
|
|
33,830
|
|
|
17,797
|
|
|
116,630
|
|
|
81,279
|
Income (loss) from
continuing operations
|
|
1,778
|
|
|
390
|
|
|
4,300
|
|
|
(12,247)
|
Net interest and
other financial costs
|
|
430
|
|
|
333
|
|
|
1,483
|
|
|
1,365
|
Income (loss) from
continuing operations before income taxes
|
|
1,348
|
|
|
57
|
|
|
2,817
|
|
|
(13,612)
|
Provision (benefit)
for income taxes on continuing operations
|
|
243
|
|
|
(193)
|
|
|
264
|
|
|
(2,430)
|
Income (loss) from
continuing operations, net of tax
|
|
1,105
|
|
|
250
|
|
|
2,553
|
|
|
(11,182)
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
324
|
|
|
8,448
|
|
|
1,205
|
Net income
(loss)
|
|
1,105
|
|
|
574
|
|
|
11,001
|
|
|
(9,977)
|
Less net income
(loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
21
|
|
|
20
|
|
|
100
|
|
|
81
|
Noncontrolling
interests
|
|
310
|
|
|
269
|
|
|
1,163
|
|
|
(232)
|
Net income (loss)
attributable to MPC
|
$
|
774
|
|
$
|
285
|
|
$
|
9,738
|
|
$
|
(9,826)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.28
|
|
$
|
(0.06)
|
|
$
|
2.03
|
|
$
|
(16.99)
|
Discontinued
operations
|
|
—
|
|
|
0.50
|
|
|
13.31
|
|
|
1.86
|
Net income (loss) per
share
|
$
|
1.28
|
|
$
|
0.44
|
|
$
|
15.34
|
|
$
|
(15.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding (in millions)
|
|
605
|
|
|
650
|
|
|
634
|
|
|
649
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.27
|
|
$
|
(0.06)
|
|
$
|
2.02
|
|
$
|
(16.99)
|
Discontinued
operations
|
|
—
|
|
|
0.50
|
|
|
13.22
|
|
|
1.86
|
Net income (loss) per
share
|
$
|
1.27
|
|
$
|
0.44
|
|
$
|
15.24
|
|
$
|
(15.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in millions)
|
|
609
|
|
|
650
|
|
|
638
|
|
|
649
|
|
|
(a)
|
In accordance with
discontinued operations accounting, Speedway sales to retail
customers and net results are reflected in income from discontinued
operations, net of tax, and Refining & Marketing intercompany
sales to Speedway prior to May 14, 2021, are presented as
third-party sales.
|
(b)
|
The YTD 2020 period
includes $1.3 billion of impairment expense.
|
Income Summary for
Continuing Operations (Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing(a)
|
$
|
881
|
|
$
|
(1,579)
|
|
$
|
1,016
|
|
$
|
(5,189)
|
Midstream
|
|
1,070
|
|
|
974
|
|
|
4,061
|
|
|
3,708
|
Corporate
|
|
(173)
|
|
|
(175)
|
|
|
(696)
|
|
|
(800)
|
Income (loss) from
continuing operations before items not allocated to
segments
|
|
1,778
|
|
|
(780)
|
|
|
4,381
|
|
|
(2,281)
|
Items not allocated
to segments:
|
|
|
|
|
|
|
|
|
|
|
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
1,185
|
|
|
—
|
|
|
—
|
Impairment and idling
expenses(b)
|
|
—
|
|
|
(146)
|
|
|
(81)
|
|
|
(9,741)
|
Restructuring
expenses(c)
|
|
—
|
|
|
(19)
|
|
|
—
|
|
|
(367)
|
Litigation
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
Gain on sale of
assets
|
|
—
|
|
|
66
|
|
|
—
|
|
|
66
|
Transaction-related
costs(d)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
Income (loss) from
continuing operations
|
|
1,778
|
|
|
390
|
|
|
4,300
|
|
|
(12,247)
|
Net interest and
other financial costs
|
|
430
|
|
|
333
|
|
|
1,483
|
|
|
1,365
|
Income (loss) from
continuing operations before income taxes
|
|
1,348
|
|
|
57
|
|
|
2,817
|
|
|
(13,612)
|
Provision (benefit)
for income taxes on continuing operations
|
|
243
|
|
|
(193)
|
|
|
264
|
|
|
(2,430)
|
Income (loss) from
continuing operations, net of tax
|
$
|
1,105
|
|
$
|
250
|
|
$
|
2,553
|
|
$
|
(11,182)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes last-in,
first-out (LIFO) liquidation charges of $305 million for the fourth
quarter 2020 and $561 million for the year 2020.
|
(b)
|
The 2021 YTD period
includes impairment expenses related to long-lived assets and
equity method investments. The 2020 YTD period includes $7.4
billion goodwill impairment, $1.3 billion impairment of equity
method investments and $1.0 billion impairment of long-lived
assets.
|
(c)
|
Restructuring
expenses for the year 2020 include $195 million of exit costs
related to the Martinez and Gallup refineries and $172 million of
employee separation costs.
|
(d)
|
2020 includes costs
incurred in connection with the Midstream strategic
review.
|
Income Summary for
Discontinued Operations (Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Speedway
|
$
|
—
|
|
$
|
419
|
|
$
|
613
|
|
$
|
1,701
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
11,682
|
|
|
—
|
Transaction-related
costs(a)
|
|
—
|
|
|
(39)
|
|
|
(46)
|
|
|
(114)
|
Income from
discontinued operations
|
|
—
|
|
|
405
|
|
|
12,249
|
|
|
1,587
|
Net interest and
other financial costs
|
|
—
|
|
|
5
|
|
|
6
|
|
|
20
|
Income from
discontinued operations before income taxes
|
|
—
|
|
|
400
|
|
|
12,243
|
|
|
1,567
|
Provision for income
taxes on discontinued operations
|
|
—
|
|
|
76
|
|
|
3,795
|
|
|
362
|
Income from
discontinued operations, net of tax
|
$
|
—
|
|
$
|
324
|
|
$
|
8,448
|
|
$
|
1,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Costs related to the
Speedway separation.
|
Capital
Expenditures and Investments (Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing
|
$
|
373
|
|
$
|
175
|
|
$
|
911
|
|
$
|
1,170
|
Midstream
|
|
225
|
|
|
199
|
|
|
731
|
|
|
1,398
|
Corporate(a)
|
|
53
|
|
|
40
|
|
|
173
|
|
|
186
|
Speedway
|
|
—
|
|
|
77
|
|
|
177
|
|
|
277
|
Total
|
$
|
651
|
|
$
|
491
|
|
$
|
1,992
|
|
$
|
3,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes capitalized
interest of $20 million, $21 million, $68 million and $106 million
for the fourth quarter 2021, the fourth quarter 2020, the year 2021
and the year 2020, respectively.
|
Refining &
Marketing Operating Statistics (Unaudited)
|
Dollar per
Barrel of Net Refinery Throughput
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing margin, excluding LIFO liquidation
charge(a)
|
$
|
15.88
|
|
$
|
7.42
|
|
$
|
13.36
|
|
$
|
8.96
|
LIFO liquidation
charge
|
|
—
|
|
|
(1.31)
|
|
|
—
|
|
|
(0.59)
|
Refining &
Marketing margin(a)
|
$
|
15.88
|
|
$
|
6.11
|
|
$
|
13.36
|
|
$
|
8.37
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Refining operating
costs, excluding storm impacts(b)
|
|
5.36
|
|
|
5.14
|
|
|
5.02
|
|
|
5.68
|
Storm impacts on
refining operating cost(c)
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
Distribution
costs(d)
|
|
4.93
|
|
|
5.44
|
|
|
5.04
|
|
|
5.37
|
Refining planned
turnaround costs
|
|
0.75
|
|
|
0.46
|
|
|
0.57
|
|
|
0.88
|
Depreciation and
amortization
|
|
1.72
|
|
|
2.00
|
|
|
1.83
|
|
|
1.96
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Other(e)
|
|
0.14
|
|
|
0.14
|
|
|
0.14
|
|
|
0.03
|
Refining &
Marketing income (loss) from operations
|
$
|
3.26
|
|
$
|
(6.79)
|
|
$
|
0.99
|
|
$
|
(5.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees paid to MPLX
included in distribution costs above
|
$
|
3.38
|
|
$
|
3.74
|
|
$
|
3.40
|
|
$
|
3.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Sales revenue less
cost of refinery inputs and purchased products, divided by net
refinery throughput.
|
(b)
|
Excludes refining
planned turnaround and depreciation and amortization
expense.
|
(c)
|
Storms in the first
and third quarters of 2021 resulted in higher costs, including
maintenance and repairs.
|
(d)
|
Excludes depreciation
and amortization expense.
|
(e)
|
Includes income
(loss) from equity method investments, net gain (loss) on disposal
of assets and other income.
|
Refining &
Marketing - Supplemental Operating Data
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing refined product sales volume
(mbpd)(a)
|
|
3,600
|
|
|
3,223
|
|
|
3,425
|
|
|
3,222
|
Crude oil refining
capacity (mbpcd)(b)
|
|
2,874
|
|
|
2,860
|
|
|
2,874
|
|
|
2,963
|
Crude oil capacity
utilization (percent)(b)
|
|
94
|
|
|
82
|
|
|
91
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
2,700
|
|
|
2,335
|
|
|
2,621
|
|
|
2,418
|
Other charge and blendstocks
|
|
236
|
|
|
193
|
|
|
178
|
|
|
165
|
Net refinery
throughput
|
|
2,936
|
|
|
2,528
|
|
|
2,799
|
|
|
2,583
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
48
|
|
|
47
|
|
|
47
|
|
|
49
|
Sweet crude oil
throughput (percent)
|
|
52
|
|
|
53
|
|
|
53
|
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product
yields (mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
1,574
|
|
|
1,344
|
|
|
1,446
|
|
|
1,314
|
Distillates
|
|
1,025
|
|
|
892
|
|
|
965
|
|
|
905
|
Propane
|
|
55
|
|
|
51
|
|
|
52
|
|
|
51
|
Feedstocks and special products
|
|
203
|
|
|
176
|
|
|
250
|
|
|
244
|
Heavy fuel oil
|
|
28
|
|
|
28
|
|
|
31
|
|
|
28
|
Asphalt
|
|
84
|
|
|
76
|
|
|
91
|
|
|
81
|
Total
|
|
2,969
|
|
|
2,567
|
|
|
2,835
|
|
|
2,623
|
Inter-region refinery
transfers excluded from throughput and yields above
(mbpd)
|
|
70
|
|
|
36
|
|
|
59
|
|
|
60
|
|
|
(a)
|
Includes intersegment
sales.
|
(b)
|
Based on calendar day
capacity, which is an annual average that includes downtime for
planned maintenance and other normal operating activities. Excludes
idled Martinez and Gallup facilities and our Dickinson plant in
renewable diesel service.
|
Refining &
Marketing - Supplemental Operating Data by Region
(Unaudited)
|
Gulf Coast
Region
|
|
|
Three Months
Ended December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Dollar per barrel of
refinery throughput:(a)
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin(b)
|
$
|
17.13
|
|
$
|
5.96
|
|
$
|
12.46
|
|
$
|
6.71
|
Refining operating
costs(c)(d)
|
|
4.08
|
|
|
3.42
|
|
|
4.00
|
|
|
4.13
|
Refining planned
turnaround costs
|
|
0.37
|
|
|
0.12
|
|
|
0.44
|
|
|
0.70
|
Refining depreciation
and amortization
|
|
1.25
|
|
|
1.47
|
|
|
1.41
|
|
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,130
|
|
|
997
|
|
|
1,041
|
|
|
987
|
Other charge and blendstocks
|
|
173
|
|
|
113
|
|
|
124
|
|
|
129
|
Gross refinery
throughput
|
|
1,303
|
|
|
1,110
|
|
|
1,165
|
|
|
1,116
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
62
|
|
|
57
|
|
|
61
|
|
|
63
|
Sweet crude oil
throughput (percent)
|
|
38
|
|
|
43
|
|
|
39
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product
yields (mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
657
|
|
|
538
|
|
|
554
|
|
|
498
|
Distillates
|
|
426
|
|
|
389
|
|
|
389
|
|
|
385
|
Propane
|
|
30
|
|
|
28
|
|
|
26
|
|
|
26
|
Feedstocks and special products
|
|
193
|
|
|
172
|
|
|
199
|
|
|
215
|
Heavy fuel oil
|
|
8
|
|
|
3
|
|
|
6
|
|
|
7
|
Asphalt
|
|
18
|
|
|
15
|
|
|
19
|
|
|
17
|
Total
|
|
1,332
|
|
|
1,145
|
|
|
1,193
|
|
|
1,148
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
42
|
|
|
12
|
|
|
30
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The per barrel for
Refining & Marketing margin is calculated based on net refinery
throughput (excludes inter-refinery transfer volumes). The per
barrel for the remaining items is calculated based on the gross
refinery throughput (includes inter-refinery transfer
volumes).
|
(b)
|
Sales revenue less
cost of refinery inputs and purchased products, divided by net
refinery throughput. Excludes 2020 LIFO liquidation
charge.
|
(c)
|
Excludes refining
planned turnaround and depreciation and amortization
expense.
|
(d)
|
Estimated storm
impacts on refining operating costs excluded from regional refining
operating costs.
|
Mid-Continent
Region
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Dollar per barrel of
refinery throughput:(a)
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin(b)
|
$
|
11.80
|
|
$
|
8.22
|
|
$
|
13.05
|
|
$
|
10.07
|
Refining operating
costs(c)(d)
|
|
4.96
|
|
|
5.03
|
|
|
4.47
|
|
|
5.19
|
Refining planned
turnaround costs
|
|
1.40
|
|
|
0.84
|
|
|
0.87
|
|
|
0.86
|
Refining depreciation
and amortization
|
|
1.57
|
|
|
1.83
|
|
|
1.58
|
|
|
1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,074
|
|
|
936
|
|
|
1,096
|
|
|
989
|
Other charge and blendstocks
|
|
86
|
|
|
71
|
|
|
63
|
|
|
52
|
Gross refinery
throughput
|
|
1,160
|
|
|
1,007
|
|
|
1,159
|
|
|
1,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
26
|
|
|
26
|
|
|
26
|
|
|
26
|
Sweet crude oil
throughput (percent)
|
|
74
|
|
|
74
|
|
|
74
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product
yields (mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
620
|
|
|
560
|
|
|
606
|
|
|
550
|
Distillates
|
|
407
|
|
|
346
|
|
|
398
|
|
|
355
|
Propane
|
|
19
|
|
|
17
|
|
|
19
|
|
|
18
|
Feedstocks and special products
|
|
40
|
|
|
15
|
|
|
57
|
|
|
48
|
Heavy fuel oil
|
|
10
|
|
|
11
|
|
|
12
|
|
|
11
|
Asphalt
|
|
66
|
|
|
61
|
|
|
72
|
|
|
63
|
Total
|
|
1,162
|
|
|
1,010
|
|
|
1,164
|
|
|
1,045
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
15
|
|
|
12
|
|
|
11
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The per barrel for
Refining & Marketing margin is calculated based on net refinery
throughput (excludes inter-refinery transfer volumes). The per
barrel for the remaining items is calculated based on the gross
refinery throughput (includes inter-refinery transfer
volumes).
|
(b)
|
Sales revenue less
cost of refinery inputs and purchased products, divided by net
refinery throughput. Excludes 2020 LIFO liquidation
charge.
|
(c)
|
Excludes refining
planned turnaround and depreciation and amortization
expense.
|
(d)
|
Estimated storm
impacts on refining operating costs excluded from regional refining
operating costs.
|
West Coast
Region
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Dollar per barrel of
refinery throughput:(a)
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin(b)
|
$
|
21.72
|
|
$
|
9.28
|
|
$
|
16.06
|
|
$
|
11.69
|
Refining operating
costs(c)(d)
|
|
8.64
|
|
|
9.27
|
|
|
7.89
|
|
|
9.57
|
Refining planned
turnaround costs
|
|
0.22
|
|
|
0.42
|
|
|
0.14
|
|
|
1.23
|
Refining depreciation
and amortization
|
|
1.34
|
|
|
1.61
|
|
|
1.46
|
|
|
1.56
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
496
|
|
|
402
|
|
|
484
|
|
|
442
|
Other charge and blendstocks
|
|
47
|
|
|
45
|
|
|
50
|
|
|
44
|
Gross refinery
throughput
|
|
543
|
|
|
447
|
|
|
534
|
|
|
486
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
63
|
|
|
72
|
|
|
66
|
|
|
70
|
Sweet crude oil
throughput (percent)
|
|
37
|
|
|
28
|
|
|
34
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product
yields (mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
297
|
|
|
246
|
|
|
286
|
|
|
266
|
Distillates
|
|
192
|
|
|
157
|
|
|
178
|
|
|
165
|
Propane
|
|
6
|
|
|
6
|
|
|
7
|
|
|
7
|
Feedstocks and special products
|
|
33
|
|
|
19
|
|
|
43
|
|
|
32
|
Heavy fuel oil
|
|
17
|
|
|
20
|
|
|
23
|
|
|
19
|
Asphalt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
Total
|
|
545
|
|
|
448
|
|
|
537
|
|
|
490
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
13
|
|
|
12
|
|
|
18
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The per barrel for
Refining & Marketing margin is calculated based on net refinery
throughput (excludes inter-refinery transfer volumes). The per
barrel for the remaining items is calculated based on the gross
refinery throughput (includes inter-refinery transfer
volumes).
|
(b)
|
Sales revenue less
cost of refinery inputs and purchased products, divided by net
refinery throughput. Excludes 2020 LIFO liquidation
charge.
|
(c)
|
Excludes refining
planned turnaround and depreciation and amortization
expense.
|
(d)
|
Estimated storm
impacts on refining operating costs excluded from regional refining
operating costs.
|
Midstream
Operating Statistics (Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Pipeline throughputs
(mbpd)(a)
|
|
5,672
|
|
|
4,838
|
|
|
5,542
|
|
|
4,805
|
Terminal throughput
(mbpd)
|
|
2,889
|
|
|
2,606
|
|
|
2,886
|
|
|
2,673
|
Gathering system
throughput (million cubic feet per day)(b)
|
|
5,444
|
|
|
5,265
|
|
|
5,258
|
|
|
5,475
|
Natural gas processed
(million cubic feet per day)(b)
|
|
8,479
|
|
|
8,677
|
|
|
8,401
|
|
|
8,613
|
C2 (ethane) + NGLs
fractionated (mbpd)(b)
|
|
549
|
|
|
585
|
|
|
551
|
|
|
562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes
common-carrier pipelines and private pipelines contributed to MPLX.
Excludes equity method affiliate pipeline volumes.
|
(b)
|
Includes amounts
related to unconsolidated equity method investments on a 100%
basis.
|
Select Financial
Data (Unaudited)
|
|
(In
millions)
|
December
31,
2021
|
|
September
30,
2021
|
Cash and cash
equivalents
|
$
|
5,291
|
|
$
|
5,874
|
Short-term
investments
|
|
5,548
|
|
|
7,352
|
MPC debt
|
|
6,968
|
|
|
9,089
|
MPLX debt
|
|
18,571
|
|
|
18,254
|
Total consolidated
debt(a)
|
|
25,539
|
|
|
27,343
|
Redeemable
noncontrolling interest
|
|
965
|
|
|
986
|
Equity
|
|
32,616
|
|
|
34,978
|
Shares
outstanding
|
|
579
|
|
|
622
|
|
|
|
|
|
|
|
|
(a)
|
Net of unamortized
debt issuance costs and unamortized premium/discount,
net.
|
Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our
operating performance that are calculated and presented on the
basis of methodologies other than in accordance with GAAP. We
believe these non-GAAP financial measures are useful to investors
and analysts to assess our ongoing financial performance because,
when reconciled to their most comparable GAAP financial measures,
they provide improved comparability between periods through the
exclusion of certain items that we believe are not indicative of
our core operating performance and that may obscure our underlying
business results and trends. These measures should not be
considered a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP, and our calculations
thereof may not be comparable to similarly titled measures reported
by other companies. The non-GAAP financial measures we use are as
follows:
Adjusted Net Income Attributable to MPC
Adjusted net income attributable to MPC is defined as net income
attributable to MPC excluding the items in the table below, along
with their related income tax effect. For all periods presented, we
applied a combined federal and state statutory tax rate of 24% to
the adjusted pre-tax income or loss. We have excluded these items
because we believe that they are not indicative of our core
operating performance and that their exclusion results in an
important measure of our ongoing financial performance to better
assess our underlying business results and trends.
Adjusted Diluted Earnings Per Share
Adjusted diluted earnings per share is defined as adjusted net
income attributable to MPC divided by the number of
weighted-average shares outstanding in the applicable period,
assuming dilution.
Reconciliation of
Net Income (Loss) Attributable to MPC to Adjusted Net Income (Loss)
Attributable to MPC
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income (loss)
attributable to MPC
|
$
|
774
|
|
$
|
285
|
|
$
|
9,738
|
|
$
|
(9,826)
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Speedway
sale
|
|
—
|
|
|
—
|
|
|
(11,682)
|
|
|
—
|
Senior notes
redemption make-whole premiums
|
|
132
|
|
|
—
|
|
|
132
|
|
|
—
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
(1,210)
|
|
|
—
|
|
|
—
|
Impairment and idling
expenses
|
|
—
|
|
|
146
|
|
|
81
|
|
|
9,741
|
Restructuring
expenses
|
|
—
|
|
|
19
|
|
|
—
|
|
|
367
|
LIFO liquidation
charge
|
|
—
|
|
|
305
|
|
|
—
|
|
|
561
|
Litigation
|
|
—
|
|
|
(84)
|
|
|
—
|
|
|
(84)
|
Pension
settlement
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
Gain on sale of
assets
|
|
—
|
|
|
(66)
|
|
|
—
|
|
|
(66)
|
Transaction-related
costs
|
|
—
|
|
|
39
|
|
|
46
|
|
|
122
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
Tax impact of
adjustments(a)
|
|
(112)
|
|
|
(22)
|
|
|
3,159
|
|
|
(1,731)
|
Non-controlling
interest impact of adjustments
|
|
—
|
|
|
(20)
|
|
|
(30)
|
|
|
(1,315)
|
Adjusted net income
(loss) attributable to MPC
|
$
|
794
|
|
$
|
(608)
|
|
$
|
1,563
|
|
$
|
(2,231)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per share
|
$
|
1.27
|
|
$
|
0.44
|
|
$
|
15.24
|
|
$
|
(15.13)
|
Adjusted diluted
income (loss) per share
|
$
|
1.30
|
|
$
|
(0.94)
|
|
$
|
2.45
|
|
$
|
(3.44)
|
|
|
(a)
|
Income taxes for
adjusted earnings was calculated by applying a combined federal and
state statutory tax rate of 24% to the adjusted pre-tax income
(loss) for these periods. The corresponding adjustments to reported
income taxes are shown in the table above.
|
Adjusted EBITDA & Segment Adjusted EBITDA
Adjusted EBITDA and Segment Adjusted EBITDA represent earnings
before net interest and other financial costs, income taxes,
depreciation and amortization expense as well as adjustments to
exclude refining turnaround costs, items not allocated to segment
results and other items shown in the table below. We believe these
non-GAAP financial measures are useful to investors and analysts to
analyze and compare our operating performance between periods by
excluding items that do not reflect the core operating results of
our business or in the case of turnarounds, which provide benefits
over multiple years. We also believe that excluding turnaround
costs from this metric is useful for comparability to other
companies as certain of our competitors defer these costs and
amortize them between turnarounds. Adjusted EBITDA and Segment
Adjusted EBITDA should not be considered as a substitute for, or
superior to segment income (loss) from operations, net income
attributable to MPC, income before income taxes, cash flows from
operating activities or any other measure of financial performance
presented in accordance with GAAP. Adjusted EBITDA and Segment
Adjusted EBITDA may not be comparable to similarly titled measures
reported by other companies.
Reconciliation of
Net Income (Loss) Attributable to MPC to Adjusted EBITDA from
Continuing Operations
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income (loss)
attributable to MPC
|
$
|
774
|
|
$
|
285
|
|
$
|
9,738
|
|
$
|
(9,826)
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
(324)
|
|
|
(8,448)
|
|
|
(1,205)
|
Net interest and
other financial costs
|
|
430
|
|
|
333
|
|
|
1,483
|
|
|
1,365
|
Net income (loss)
attributable to noncontrolling interests
|
|
331
|
|
|
289
|
|
|
1,263
|
|
|
(151)
|
Provision (benefit)
for income taxes
|
|
243
|
|
|
(193)
|
|
|
264
|
|
|
(2,430)
|
Depreciation and
amortization
|
|
813
|
|
|
849
|
|
|
3,308
|
|
|
3,375
|
Refining planned
turnaround costs
|
|
204
|
|
|
107
|
|
|
582
|
|
|
832
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
(1,185)
|
|
|
—
|
|
|
—
|
Impairment and idling
expenses(a)
|
|
—
|
|
|
146
|
|
|
81
|
|
|
9,741
|
Restructuring
expenses
|
|
—
|
|
|
19
|
|
|
—
|
|
|
367
|
LIFO liquidation
charge
|
|
—
|
|
|
305
|
|
|
—
|
|
|
561
|
Litigation
|
|
—
|
|
|
(84)
|
|
|
—
|
|
|
(84)
|
Gain on sale of
assets
|
|
—
|
|
|
(66)
|
|
|
—
|
|
|
(66)
|
Transaction-related
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
Adjusted EBITDA
from continuing operations
|
$
|
2,795
|
|
$
|
481
|
|
$
|
8,341
|
|
$
|
2,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Impairments of $56
million in the year 2021 are included in depreciation and
amortization expense on the statements of income.
|
Reconciliation of
Income from Discontinued Operations, Net of Tax to EBITDA from
Discontinued Operations (Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Income from
discontinued operations, net of tax
|
$
|
—
|
|
$
|
324
|
|
$
|
8,448
|
|
$
|
1,205
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and other
financial costs
|
|
—
|
|
|
5
|
|
|
6
|
|
|
20
|
Provision for income
taxes
|
|
—
|
|
|
76
|
|
|
3,795
|
|
|
362
|
Depreciation and
amortization(a)
|
|
—
|
|
|
7
|
|
|
3
|
|
|
244
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
(25)
|
|
|
—
|
|
|
—
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
(11,682)
|
|
|
—
|
Transaction-related
costs
|
|
—
|
|
|
39
|
|
|
46
|
|
|
114
|
Adjusted EBITDA
from discontinued operations
|
$
|
—
|
|
$
|
426
|
|
$
|
616
|
|
$
|
1,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
As of August 2, 2020,
MPC ceased recording depreciation and amortization for Speedway.
Asset write-offs and retirements charges are presented as
depreciation and amortization in our financial statements for all
periods presented.
|
Refining & Marketing Margin
Refining margin is defined as sales revenue less the cost of
refinery inputs and purchased products.
Reconciliation of
Refining & Marketing Income (Loss) from Operations to Refining
& Marketing Gross Margin and Refining & Marketing
Margin
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
(In
millions)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Refining &
Marketing income (loss) from
operations(a)
|
$
|
881
|
|
$
|
(1,579)
|
|
$
|
1,016
|
|
$
|
(5,189)
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
526
|
|
|
454
|
|
|
2,021
|
|
|
2,030
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
1,185
|
|
|
—
|
|
|
—
|
(Income) loss from
equity method investments
|
|
(32)
|
|
|
(8)
|
|
|
(59)
|
|
|
(2)
|
Net gain on disposal
of assets
|
|
—
|
|
|
(1)
|
|
|
(6)
|
|
|
(1)
|
Other
income
|
|
(80)
|
|
|
(26)
|
|
|
(369)
|
|
|
(35)
|
Refining &
Marketing gross margin
|
|
1,295
|
|
|
25
|
|
|
2,603
|
|
|
(3,197)
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
|
2,699
|
|
|
2,213
|
|
|
9,806
|
|
|
9,694
|
LCM inventory
valuation adjustment
|
|
—
|
|
|
(1,185)
|
|
|
—
|
|
|
—
|
Depreciation and
amortization
|
|
464
|
|
|
465
|
|
|
1,870
|
|
|
1,857
|
Gross margin excluded
from and other income included in Refining & Marketing
margin(b)
|
|
(132)
|
|
|
(80)
|
|
|
(485)
|
|
|
(365)
|
Other taxes included
in Refining & Marketing margin
|
|
(38)
|
|
|
(17)
|
|
|
(142)
|
|
|
(79)
|
Refining &
Marketing margin(a)
|
$
|
4,288
|
|
$
|
1,421
|
|
$
|
13,652
|
|
$
|
7,910
|
LIFO liquidation
charge
|
|
—
|
|
|
305
|
|
|
—
|
|
|
561
|
Refining &
Marketing margin, excluding LIFO liquidation charge
|
$
|
4,288
|
|
$
|
1,726
|
|
$
|
13,652
|
|
$
|
8,471
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin by region:
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Coast
|
$
|
1,987
|
|
$
|
601
|
|
$
|
5,163
|
|
$
|
2,652
|
Mid-Continent
|
|
1,242
|
|
|
753
|
|
|
5,465
|
|
|
3,801
|
West Coast
|
|
1,059
|
|
|
372
|
|
|
3,024
|
|
|
2,018
|
Refining &
Marketing margin
|
$
|
4,288
|
|
$
|
1,726
|
|
$
|
13,652
|
|
$
|
8,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
LCM inventory
valuation adjustments are excluded from Refining & Marketing
income from operations and Refining & Marketing
margin.
|
(b)
|
Reflects the gross
margin, excluding depreciation and amortization, of other related
operations included in the Refining & Marketing segment and
processing of credit card transactions on behalf of certain of our
marketing customers, net of other income.
|
View original
content:https://www.prnewswire.com/news-releases/marathon-petroleum-corp-reports-fourth-quarter-2021-results-301473680.html
SOURCE Marathon Petroleum Corporation