FINDLAY,
Ohio, May 3, 2022 /PRNewswire/ --
- Net income attributable to MPC of $845 million, or $1.49 per diluted share
- Adjusted EBITDA of $2.6
billion, of which $1.4 billion
is Refining and Marketing
- Net cash provided by operating activities of $2.5 billion, inclusive of $0.6 billion of favorable changes in working
capital
- ~$8 billion of shares
repurchased since inception of capital return program
- Announced 15% Scope 3 absolute greenhouse gas emission
reduction target by 2030
Marathon Petroleum Corp. (NYSE: MPC) today reported net income
attributable to MPC of $845 million,
or $1.49 per diluted share, for the
first quarter of 2022, compared with a net loss of $242 million, or $(0.37) per diluted share, for the first quarter
of 2021.
Adjusted earnings before interest, taxes, depreciation, and
amortization (adjusted EBITDA) was $2.6
billion in the first quarter of 2022, compared with
$1.6 billion for the first quarter of
2021. The first quarter of 2021 includes $332 million of adjusted EBITDA from discontinued
operations.
"MPC first quarter results reflect our team's ability to execute
on our strategic pillars in these market conditions," said
President and Chief Executive Officer Michael J. Hennigan. "This quarter we advanced
our low carbon strategy with the announcement of our intent to form
a joint venture with Neste at our Martinez Renewable Fuels Facility
and a 15% Scope 3 absolute GHG emission reduction target. We have
now completed approximately $8
billion of MPC share repurchases since the inception of our
$10 billion return of capital
program."
Results from Operations
Adjusted EBITDA from Continuing and
Discontinued Operations (unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Refining &
Marketing Segment
|
|
|
|
|
|
Segment income (loss)
from operations
|
$
|
768
|
|
$
|
(598)
|
Add: Depreciation and
amortization
|
|
461
|
|
|
478
|
Refining planned turnaround costs
|
|
145
|
|
|
112
|
Storm impacts
|
|
—
|
|
|
31
|
Refining &
Marketing segment adjusted EBITDA
|
|
1,374
|
|
|
23
|
|
|
|
|
|
|
Midstream
Segment
|
|
|
|
|
|
Segment income from
operations
|
|
1,072
|
|
|
972
|
Add: Depreciation and
amortization
|
|
331
|
|
|
334
|
Storm impacts
|
|
—
|
|
|
16
|
Midstream segment
adjusted EBITDA
|
|
1,403
|
|
|
1,322
|
|
|
|
|
|
|
Subtotal
|
|
2,777
|
|
|
1,345
|
Corporate
|
|
(151)
|
|
|
(157)
|
Add: Depreciation and
amortization
|
|
13
|
|
|
32
|
Adjusted EBITDA from
continuing operations
|
$
|
2,639
|
|
$
|
1,220
|
|
|
|
|
|
|
Speedway
|
|
|
|
|
|
Speedway
|
$
|
—
|
|
$
|
330
|
Add: Depreciation and
amortization
|
|
—
|
|
|
2
|
Adjusted EBITDA from
discontinued operations
|
$
|
—
|
|
$
|
332
|
|
|
|
|
|
|
Adjusted EBITDA from
continuing and discontinued operations
|
$
|
2,639
|
|
$
|
1,552
|
|
|
|
|
|
|
Refining & Marketing (R&M)
Segment adjusted EBITDA was $1.4
billion in the first quarter of 2022, versus $23 million for the first quarter of 2021.
Segment adjusted EBITDA excludes refining planned turnaround costs,
which totaled $145 million in the
first quarter of 2022 and $112
million in the first quarter of 2021. First-quarter 2021
segment adjusted EBITDA also excludes winter storm effects of
$31 million. The increase in R&M
EBITDA was driven by higher margins and throughput in all
regions.
R&M margin was $15.31 per
barrel for the first quarter of 2022, versus $10.16 per barrel for the first quarter of 2021.
Crude capacity utilization was 91%, resulting in total throughput
of 2.8 million barrels per day for the first quarter of 2022. This
compares to crude capacity utilization of 83% for the first quarter
of 2021, which resulted in total throughput of 2.6 million barrels
per day.
Midstream
Segment adjusted EBITDA was $1.4
billion in the first quarter of 2022, versus $1.3 billion for the first quarter of 2021.
First-quarter 2021 segment adjusted EBITDA excludes winter storm
effects of $16 million.
Corporate and Items Not Allocated
Corporate expenses totaled $151
million in the first quarter of 2022, compared with
$157 million in the first quarter of
2021.
Speedway
This business was sold on May 14,
2021. Historic results are reported as discontinued
operations.
Financial Position and Liquidity
As of March 31, 2022, MPC had
$10.6 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 first quarter of 2022 totaled
$7.0 billion, excluding MPLX debt.
MPC's debt-to-capital ratio, excluding MPLX debt, was 22% at the
end of the first quarter of 2022.
On March 14, 2022, MPLX issued
$1.5 billion aggregate principal
amount of 4.950% senior notes due March 2052. As of
March 31, 2022, MPLX had repaid
approximately $1.1 billion of the
amount outstanding under the intercompany loan with MPC.
Strategic and Operations Update
Since the last earnings call, the company has repurchased
approximately $2.5 billion of company
shares, and has completed, as of April 30,
2022, approximately 80% of the $10
billion repurchase program. The company has approximately
$7 billion remaining under its share
repurchase authorizations.
MPC announced it has entered into definitive agreements to form
a joint venture with Neste for Marathon's Martinez renewable fuels
project. The partnership will be structured as a 50/50 joint
venture with Neste expected to contribute a total of $1 billion, inclusive of half of the total
estimated development costs. MPC will continue to manage project
execution and operate the facility once construction is complete.
The closing of the joint venture is subject to customary closing
conditions and regulatory approvals, including obtaining the
necessary permits, which depend upon certification of a final
Environmental Impact Report.
The Martinez facility is currently targeted to have a production
capacity of 260 million gallons per year of renewable diesel in the
second half of 2022, with pretreatment capabilities to come online
in 2023. The facility is expected to be capable of producing 730
million gallons per year by the end of 2023. The expected and
targeted timelines for achieving the production capacities outlined
above are dependent upon the timing of obtaining the necessary
permits to operate the facility.
On February 14, 2022, MPC
established a 2030 target to reduce absolute Scope 3 – Category 11
greenhouse gas (GHG) emissions by 15% below 2019 levels. The new
Scope 3 target further enhances MPC's GHG disclosures and is part
of the company's commitment to continuously improve its
environmental performance while meeting society's energy needs
sustainably.
The Midstream segment remains focused on executing the strategic
priorities of strict capital discipline, embedding a low cost
culture, and optimizing the portfolio. MPLX continues to evaluate
opportunities to expand its logistics to meet the needs of today
and participate in an energy-diverse future.
Second Quarter 2022
Outlook
|
|
|
|
|
|
Refining &
Marketing Segment:
|
|
|
Refining operating costs per barrel(a)
|
$
|
5.50
|
Distribution costs (in millions)
|
$
|
1,300
|
Refining planned turnaround costs (in millions)
|
$
|
155
|
Depreciation and amortization (in millions)
|
$
|
470
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
Crude oil refined
|
|
2,750
|
Other charge and blendstocks
|
|
175
|
Total
|
|
2,925
|
|
|
|
Corporate (in
millions)
|
$
|
170
|
|
|
|
|
|
(a)
|
Excludes refining
planned turnaround and depreciation and amortization
expense
|
Conference Call
At 11:00 a.m. ET 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: the continuance or escalation of the military conflict
between Russia and Ukraine and related sanctions; general
economic, political or regulatory developments, including
inflation, and 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; 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 Neste,
including the timing and ability to obtain necessary regulatory
approvals and permits and to satisfy other conditions necessary to
consummate the joint venture within the expected timeframe if at
all; the availability of desirable strategic alternatives to
optimize portfolio assets and the ability to obtain regulatory and
other approvals with respect thereto; our ability to successfully
implement our sustainable energy strategy and principles, including
our GHG intensity and emissions, methane intensity and freshwater
withdrawal intensity targets, and realize the expected benefits
thereof; 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 and MPLX's Annual Reports on Form 10-K for the
year ended Dec. 31, 2021, 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
March 31,
|
(In millions, except
per-share data)
|
|
2022
|
|
|
2021
|
Revenues and other
income:
|
|
|
|
|
|
Sales and
other operating revenues
|
$
|
38,058
|
|
$
|
22,711
|
Income from
equity method investments
|
|
142
|
|
|
91
|
Net gain (loss)
on disposal of assets
|
|
(18)
|
|
|
3
|
Other
income
|
|
202
|
|
|
77
|
Total revenues
and other income
|
|
38,384
|
|
|
22,882
|
Costs and
expenses:
|
|
|
|
|
|
Cost of
revenues (excludes items below)
|
|
35,068
|
|
|
21,084
|
Depreciation and amortization
|
|
805
|
|
|
844
|
Selling,
general and administrative expenses
|
|
603
|
|
|
575
|
Other
taxes
|
|
192
|
|
|
162
|
Total costs and
expenses
|
|
36,668
|
|
|
22,665
|
Income from continuing
operations
|
|
1,716
|
|
|
217
|
Net interest and other
financial costs
|
|
262
|
|
|
353
|
Income (loss) from
continuing operations before income taxes
|
|
1,454
|
|
|
(136)
|
Provision for income
taxes on continuing operations
|
|
282
|
|
|
34
|
Income (loss) from
continuing operations, net of tax
|
|
1,172
|
|
|
(170)
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
234
|
Net
income
|
|
1,172
|
|
|
64
|
Less net income
attributable to:
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
21
|
|
|
20
|
Noncontrolling
interests
|
|
306
|
|
|
286
|
Net income (loss)
attributable to MPC
|
$
|
845
|
|
$
|
(242)
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
Continuing
operations
|
$
|
1.50
|
|
$
|
(0.73)
|
Discontinued
operations
|
|
—
|
|
|
0.36
|
Net income
(loss) per share
|
$
|
1.50
|
|
$
|
(0.37)
|
|
|
|
|
|
|
Weighted average
shares outstanding (in millions)
|
|
564
|
|
|
651
|
Diluted:
|
|
|
|
|
|
Continuing
operations
|
$
|
1.49
|
|
$
|
(0.73)
|
Discontinued
operations
|
|
—
|
|
|
0.36
|
Net income
(loss) per share
|
$
|
1.49
|
|
$
|
(0.37)
|
|
|
|
|
|
|
Weighted average shares
outstanding (in millions)
|
|
568
|
|
|
651
|
|
|
|
|
|
|
Income Summary for
Continuing Operations (unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Refining &
Marketing
|
$
|
768
|
|
$
|
(598)
|
Midstream
|
|
1,072
|
|
|
972
|
Corporate
|
|
(151)
|
|
|
(157)
|
Income from continuing
operations before items not allocated to segments
|
|
1,689
|
|
|
217
|
Items not allocated to
segments:
|
|
|
|
|
|
Litigation
|
|
27
|
|
|
—
|
Income from continuing
operations
|
$
|
1,716
|
|
$
|
217
|
Income Summary for
Discontinued Operations (unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Speedway
|
$
|
—
|
|
$
|
330
|
Transaction-related
costs
|
|
—
|
|
|
(23)
|
Income from
discontinued operations
|
$
|
—
|
|
$
|
307
|
Capital Expenditures
and Investments (unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Refining &
Marketing
|
$
|
244
|
|
$
|
134
|
Midstream
|
|
283
|
|
|
138
|
Corporate(a)
|
|
46
|
|
|
35
|
Speedway
|
|
—
|
|
|
103
|
Total
|
$
|
573
|
|
$
|
410
|
|
(a)
Includes capitalized interest of $23 million and $14 million for
the first quarter 2022 and the first quarter 2021,
respectively.
|
Refining &
Marketing Operating Statistics (unaudited)
|
|
|
Dollar per Barrel
of Net Refinery Throughput
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing margin(a)
|
$
|
15.31
|
|
$
|
10.16
|
Less:
|
|
|
|
|
|
Refining operating costs, excluding storm
impacts(b)
|
|
5.22
|
|
|
5.16
|
Distribution costs(c)
|
|
4.79
|
|
|
5.18
|
Other (income) loss(d)
|
|
(0.09)
|
|
|
(0.27)
|
Refining &
Marketing adjusted EBITDA
|
|
5.39
|
|
|
0.09
|
Storm impacts on refining operating
cost(e)
|
|
—
|
|
|
0.13
|
Refining planned turnaround costs
|
|
0.57
|
|
|
0.48
|
Depreciation and amortization
|
|
1.81
|
|
|
2.07
|
Refining &
Marketing income (loss) from operations
|
$
|
3.01
|
|
$
|
(2.59)
|
|
|
|
|
|
|
Fees paid to MPLX
included in distribution costs above
|
$
|
3.46
|
|
$
|
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)
|
Excludes depreciation
and amortization expense.
|
(d)
|
Includes income (loss)
from equity method investments, net gain (loss) on disposal of
assets and other income.
|
(e)
|
A storm in the first
quarter of 2021 resulted in higher costs, including maintenance and
repairs.
|
Refining &
Marketing - Supplemental Operating Data
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing refined product sales volume
(mbpd)(a)
|
|
3,293
|
|
|
3,067
|
Crude oil refining
capacity (mbpcd)(b)
|
|
2,887
|
|
|
2,874
|
Crude oil capacity
utilization (percent)(b)
|
|
91
|
|
|
83
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
2,624
|
|
|
2,381
|
Other charge and blendstocks
|
|
209
|
|
|
184
|
Net refinery
throughput
|
|
2,833
|
|
|
2,565
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
47
|
|
|
48
|
Sweet crude oil
throughput (percent)
|
|
53
|
|
|
52
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
1,483
|
|
|
1,324
|
Distillates
|
|
978
|
|
|
881
|
Propane
|
|
69
|
|
|
45
|
NGLs
and petrochemicals
|
|
161
|
|
|
222
|
Heavy fuel oil
|
|
86
|
|
|
36
|
Asphalt
|
|
87
|
|
|
97
|
Total
|
|
2,864
|
|
|
2,605
|
Inter-region refinery
transfers excluded from throughput and yields above
(mbpd)
|
|
59
|
|
|
36
|
|
|
(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)
The per barrel for Refining & Marketing margin is calculated
based on net refinery throughput (excludes inter-refinery transfer
volumes). The per barrel for the refining operating costs, refining
planned turnaround costs and refining depreciation and amortization
for the regions, as shown in the tables below, is calculated based
on the gross refinery throughput (includes inter-refinery transfer
volumes).
Refining operating costs exclude refining planned turnaround
costs, refining depreciation and amortization expense and the
estimated 2021 storm impacts.
Gulf Coast
Region
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
Refining & Marketing margin
|
$
|
16.14
|
|
$
|
9.13
|
Refining operating costs
|
|
4.51
|
|
|
4.23
|
Refining planned turnaround costs
|
|
0.80
|
|
|
1.01
|
Refining depreciation and amortization
|
|
1.41
|
|
|
1.62
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
1,017
|
|
|
925
|
Other charge and blendstocks
|
|
148
|
|
|
105
|
Gross refinery
throughput
|
|
1,165
|
|
|
1,030
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
57
|
|
|
60
|
Sweet crude oil
throughput (percent)
|
|
43
|
|
|
40
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
595
|
|
|
491
|
Distillates
|
|
374
|
|
|
348
|
Propane
|
|
40
|
|
|
22
|
NGLs
and petrochemicals
|
|
103
|
|
|
170
|
Heavy fuel oil
|
|
56
|
|
|
4
|
Asphalt
|
|
20
|
|
|
25
|
Total
|
|
1,188
|
|
|
1,060
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
28
|
|
|
16
|
Mid-Continent
Region
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
Refining & Marketing margin
|
$
|
12.35
|
|
$
|
10.25
|
Refining operating costs
|
|
4.64
|
|
|
4.68
|
Refining planned turnaround costs
|
|
0.28
|
|
|
0.13
|
Refining depreciation and amortization
|
|
1.60
|
|
|
1.75
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
1,105
|
|
|
1,012
|
Other charge and blendstocks
|
|
68
|
|
|
57
|
Gross refinery
throughput
|
|
1,173
|
|
|
1,069
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
27
|
|
|
26
|
Sweet crude oil
throughput (percent)
|
|
73
|
|
|
74
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
626
|
|
|
568
|
Distillates
|
|
414
|
|
|
366
|
Propane
|
|
21
|
|
|
17
|
NGLs
and petrochemicals
|
|
38
|
|
|
40
|
Heavy fuel oil
|
|
12
|
|
|
12
|
Asphalt
|
|
67
|
|
|
72
|
Total
|
|
1,178
|
|
|
1,075
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
9
|
|
|
9
|
West Coast
Region
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
Refining & Marketing margin
|
$
|
19.99
|
|
$
|
12.09
|
Refining operating costs
|
|
7.36
|
|
|
7.67
|
Refining planned turnaround costs
|
|
0.64
|
|
|
0.12
|
Refining depreciation and amortization
|
|
1.35
|
|
|
1.80
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
Crude oil refined
|
|
502
|
|
|
444
|
Other charge and blendstocks
|
|
52
|
|
|
58
|
Gross refinery
throughput
|
|
554
|
|
|
502
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
70
|
|
|
72
|
Sweet crude oil
throughput (percent)
|
|
30
|
|
|
28
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
Gasoline
|
|
292
|
|
|
265
|
Distillates
|
|
190
|
|
|
167
|
Propane
|
|
8
|
|
|
6
|
NGLs
and petrochemicals
|
|
29
|
|
|
40
|
Heavy fuel oil
|
|
38
|
|
|
28
|
Asphalt
|
|
—
|
|
|
—
|
Total
|
|
557
|
|
|
506
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
22
|
|
|
11
|
Midstream Operating
Statistics (unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
Pipeline throughputs
(mbpd)(a)
|
|
5,423
|
|
|
5,219
|
Terminal throughput
(mbpd)
|
|
2,941
|
|
|
2,613
|
Gathering system
throughput (million cubic feet per day)(b)
|
|
5,276
|
|
|
5,085
|
Natural gas processed
(million cubic feet per day)(b)
|
|
8,267
|
|
|
8,370
|
C2 (ethane) + NGLs
fractionated (mbpd)(b)
|
|
526
|
|
|
559
|
|
|
(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)
|
|
|
March
31,
2022
|
|
December
31,
2021
|
(In
millions)
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
7,148
|
|
$
|
5,291
|
Short-term
investments
|
|
3,449
|
|
|
5,548
|
MPC debt
|
|
6,953
|
|
|
6,968
|
MPLX debt
|
|
19,756
|
|
|
18,571
|
Total consolidated
debt(a)
|
|
26,709
|
|
|
25,539
|
Redeemable
noncontrolling interest
|
|
965
|
|
|
965
|
Equity
|
|
30,334
|
|
|
32,616
|
Shares
outstanding
|
|
545
|
|
|
579
|
|
(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 the first quarter of 2021
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 Loss Attributable to MPC to Adjusted Net Loss
Attributable to MPC
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2021
|
Net loss
attributable to MPC
|
$
|
(242)
|
Pre-tax
adjustments:
|
|
|
Transaction-related costs
|
|
23
|
Storm impacts
|
|
47
|
Tax impact of
adjustments(a)
|
|
46
|
Non-controlling
interest impact of adjustments
|
|
(6)
|
Adjusted net loss
attributable to MPC
|
$
|
(132)
|
|
|
|
Diluted loss per
share
|
$
|
(0.37)
|
Adjusted diluted
loss per share(b)
|
$
|
(0.20)
|
|
|
|
|
|
(a)
|
Income taxes for
adjusted earnings for the three months ended in 2021 was calculated
by applying a combined federal and state statutory tax rate of 24%
to the adjusted pre-tax loss. The corresponding adjustments to
reported income taxes are shown in the table above.
|
(b)
|
Weighted average
diluted shares used for the adjusted net loss per share
calculations do not assume the conversion of share-based awards, as
the effect would be anti dilutive.
|
Adjusted EBITDA
Amounts included in net income (loss) attributable to MPC and
excluded from adjusted EBITDA include (i) net interest and other
financial costs; (ii) provision/benefit for income taxes; (iii)
noncontrolling interests; (iv) depreciation and amortization; (v)
refining planned turnaround costs and (vi) other adjustments as
deemed necessary, as shown in the table below. We believe 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 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 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 (unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Net income (loss)
attributable to MPC
|
$
|
845
|
|
$
|
(242)
|
Net
income attributable to noncontrolling interests
|
|
327
|
|
|
306
|
Income from discontinued operations, net of tax
|
|
—
|
|
|
(234)
|
Provision for income taxes on continuing
operations
|
|
282
|
|
|
34
|
Net
interest and other financial costs
|
|
262
|
|
|
353
|
Depreciation and amortization
|
|
805
|
|
|
844
|
Refining planned turnaround costs
|
|
145
|
|
|
112
|
Storm impacts
|
|
—
|
|
|
47
|
Litigation
|
|
(27)
|
|
|
—
|
Adjusted EBITDA from
continuing operations
|
$
|
2,639
|
|
$
|
1,220
|
Reconciliation of
Income from Discontinued Operations, Net of Tax to
Adjusted EBITDA from Discontinued Operations
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Income from
discontinued operations, net of tax
|
$
|
—
|
|
$
|
234
|
Provision for income taxes
|
|
—
|
|
|
69
|
Net
interest and other financial costs
|
|
—
|
|
|
4
|
Depreciation and amortization
|
|
—
|
|
|
2
|
Transaction-related costs
|
|
—
|
|
|
23
|
Adjusted EBITDA from
discontinued operations
|
$
|
—
|
|
$
|
332
|
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
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2022
|
|
|
2021
|
Refining &
Marketing income (loss) from operations
|
$
|
768
|
|
$
|
(598)
|
Plus
(Less):
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
508
|
|
|
456
|
Income from equity method investments
|
|
(12)
|
|
|
(5)
|
Net
gain on disposal of assets
|
|
—
|
|
|
(3)
|
Other income
|
|
(181)
|
|
|
(54)
|
Refining &
Marketing gross margin
|
|
1,083
|
|
|
(204)
|
Plus
(Less):
|
|
|
|
|
|
Operating expenses (excluding depreciation and
amortization)
|
|
2,389
|
|
|
2,275
|
Depreciation and amortization
|
|
461
|
|
|
478
|
Gross margin excluded from and other income included in
Refining & Marketing margin(a)
|
|
14
|
|
|
(179)
|
Other taxes included in Refining & Marketing
margin
|
|
(43)
|
|
|
(24)
|
Refining &
Marketing margin
|
$
|
3,904
|
|
$
|
2,346
|
|
|
|
|
|
|
Refining &
Marketing margin by region:
|
|
|
|
|
|
Gulf Coast
|
$
|
1,653
|
|
$
|
834
|
Mid-Continent
|
|
1,293
|
|
|
978
|
West Coast
|
|
958
|
|
|
534
|
Refining &
Marketing margin
|
$
|
3,904
|
|
$
|
2,346
|
|
|
|
|
|
|
|
|
(a)
|
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.
|
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SOURCE Marathon Petroleum Corporation