FINDLAY,
Ohio, Aug. 2, 2022 /PRNewswire/ --
- Net income attributable to MPC of $5.9 billion, or $10.95 per diluted share; reported adjusted net
income of $5.7 billion, or
$10.61 per diluted share
- Adjusted EBITDA of $9.1
billion, as the refining system ran at full utilization to
meet demand
- Maintaining focus on low-cost culture and improving
commercial performance
- Published annual Sustainability and Climate Perspectives
reports, demonstrating continued progress toward goals
Marathon Petroleum Corp. (NYSE: MPC) today reported net income
attributable to MPC of $5.9 billion,
or $10.95 per diluted share, for the
second quarter of 2022, compared with net income attributable to
MPC of $8.5 billion, or $13.00 per diluted share, for the second quarter
of 2021.
Adjusted net income was $5.7
billion, or $10.61 per diluted
share, for the second quarter of 2022. This compares to adjusted
net income of $437 million, or
$0.67 per diluted share, for the
second quarter of 2021. Adjusted results for these periods exclude
net pre-tax benefits of $238 million
and $11.6 billion, for the
second-quarter 2022 and second-quarter 2021, respectively.
Adjustments are shown in the accompanying release tables.
Adjusted earnings before interest, taxes, depreciation, and
amortization (adjusted EBITDA) was $9.1
billion in the second quarter of 2022, compared with
$2.2 billion for the second quarter
of 2021.
"We accomplished a lot during the quarter," said President and
Chief Executive Officer Michael J.
Hennigan. "Our team delivered on supplying products to meet
strong market demand. Utilizing the proceeds from the Speedway
divestiture, we have completed approximately $12 billion of our $15
billion return of capital program. We also recently
published our annual Sustainability and Climate reports, which
highlight the progress we have made across our sustainability
commitments."
Results from Operations
Adjusted EBITDA from
Continuing and Discontinued Operations (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss)
from operations
|
$
|
7,134
|
|
$
|
224
|
|
$
|
7,902
|
|
$
|
(374)
|
Add: Depreciation and
amortization
|
|
475
|
|
|
466
|
|
|
936
|
|
|
944
|
Refining planned
turnaround costs
|
|
151
|
|
|
61
|
|
|
296
|
|
|
173
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
Refining &
Marketing segment adjusted EBITDA
|
|
7,760
|
|
|
751
|
|
|
9,134
|
|
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income from
operations
|
|
1,126
|
|
|
977
|
|
|
2,198
|
|
|
1,949
|
Add: Depreciation and
amortization
|
|
330
|
|
|
331
|
|
|
661
|
|
|
665
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
Midstream segment
adjusted EBITDA
|
|
1,456
|
|
|
1,308
|
|
|
2,859
|
|
|
2,630
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
9,216
|
|
|
2,059
|
|
|
11,993
|
|
|
3,404
|
Corporate
|
|
(170)
|
|
|
(180)
|
|
|
(321)
|
|
|
(337)
|
Add: Depreciation and
amortization
|
|
14
|
|
|
31
|
|
|
27
|
|
|
63
|
Adjusted EBITDA from
continuing operations
|
$
|
9,060
|
|
$
|
1,910
|
|
$
|
11,699
|
|
$
|
3,130
|
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
$
|
—
|
|
$
|
283
|
|
$
|
—
|
|
$
|
613
|
Add: Depreciation and
amortization
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
Adjusted EBITDA from
discontinued operations
|
$
|
—
|
|
$
|
284
|
|
$
|
—
|
|
$
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from
continuing and discontinued operations
|
$
|
9,060
|
|
$
|
2,194
|
|
$
|
11,699
|
|
$
|
3,746
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining & Marketing (R&M)
Segment adjusted EBITDA was $7.8
billion in the second quarter of 2022, versus $751 million for the second quarter of 2021.
Segment adjusted EBITDA excludes refining planned turnaround costs,
which totaled $151 million in the
second quarter of 2022 and $61
million in the second quarter of 2021. The increase in
segment adjusted EBITDA was driven by higher margins and throughput
in all regions.
R&M margin was $37.54 per
barrel for the second quarter of 2022, versus $12.45 per barrel for the second quarter of 2021.
Crude capacity utilization was approximately 100%, resulting in
total throughput of 3.1 million barrels per day for the second
quarter of 2022. This compares to crude capacity utilization of
approximately 94% for the second quarter of 2021, which resulted in
total throughput of 2.9 million barrels per day.
Midstream
Segment adjusted EBITDA was $1.5
billion in the second quarter of 2022, versus $1.3 billion for the second quarter of 2021.
Corporate and Items Not Allocated
Corporate expenses totaled $170
million in the second quarter of 2022, compared with
$180 million in the second quarter of
2021.
In the second quarter of 2022, items not allocated to segments
includes a $238 million benefit
related to changes in RVO requirements for 2020 and
2021.
Speedway
This business was sold on May 14,
2021. Historic results are reported as discontinued
operations.
Financial Position, Liquidity, and Return of Capital
As of June 30, 2022, MPC had
$13.3 billion of cash, cash
equivalents, and short-term investments and $5 billion available on its bank revolving credit
facility. Effective July 7,
2022, the company entered into a new $5 billion five-year bank revolving credit
facility to replace its previously existing credit facility that
was scheduled to expire in October
2023. MPC debt at the end of the second quarter of 2022
totaled $7.0 billion, excluding MPLX
debt. MPC's gross debt-to-capital ratio, excluding MPLX debt, was
21% at the end of the second quarter of 2022.
Since the last earnings call, the company repurchased
approximately $4.1 billion of company
shares, and as of July 31, 2022, has
completed approximately $12.1 billion
of its previously committed $15
billion capital return program.
As MPC approaches completing its $15
billion capital return program with the proceeds of the
Speedway sale, its Board of Directors has approved a separate and
incremental $5 billion share
repurchase authorization. This authorization has no expiration
date. The timing and amount of repurchases, if any, will depend
upon several factors, including market and business conditions, and
repurchases may be initiated, suspended or discontinued at any
time. 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.
Strategic and Operations Update
On the Martinez Renewable Fuels Project, the Final Environmental
Impact Report was certified on May 3,
2022. On July 22, 2022, the
Bay Area Air Quality Management District air quality permit for
Martinez was posted, commencing a 30-day public comment period. The
first phase of the facility is currently targeted to be
mechanically complete by year-end 2022. Initial production capacity
is expected to be 260 million gallons per year of renewable fuels.
Pretreatment capabilities are expected to come online in the second
half of 2023 and 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 these production
capacities are dependent upon the timing of obtaining the air
quality permit for the facility.
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.
During the quarter, the company published both its annual
Sustainability and Climate-Related Scenarios reports. The reports
are available on the company's website at
www.marathonpetroleum.com.
Third 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)
|
$
|
400
|
Depreciation and
amortization (in millions)
|
$
|
460
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
Crude oil refined
|
|
2,705
|
Other charge and blendstocks
|
|
200
|
Total
|
|
2,905
|
|
|
|
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, operating
cost reduction objectives, and environmental, social and
governance ("ESG") goals and targets, including those related
to greenhouse gas emissions, diversity and inclusion and ESG
reporting. You can identify forward-looking statements by words
such as "anticipate," "believe," "commitment," "could," "design,"
"estimate," "expect," "forecast," "goal," "guidance,"
"intend," "may," "objective," "opportunity," "outlook," "plan,"
"policy," "position," "potential," "predict," "priority,"
"project," "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 and market
disruptions; 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, natural gas, NGLs 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, and the timing and
ability to obtain necessary regulatory approvals and permits and to
satisfy other conditions necessary to complete such projects or
consummate such transactions 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, achieve
our ESG goals and 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
June 30,
|
|
Six Months
Ended
June 30,
|
(In millions, except
per-share data)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
other operating revenues
|
$
|
53,795
|
|
$
|
29,615
|
|
$
|
91,853
|
|
$
|
52,326
|
Income from
equity method investments
|
|
147
|
|
|
93
|
|
|
289
|
|
|
184
|
Net gain on
disposal of assets
|
|
39
|
|
|
—
|
|
|
21
|
|
|
3
|
Other
income
|
|
257
|
|
|
119
|
|
|
459
|
|
|
196
|
Total revenues
and other income
|
|
54,238
|
|
|
29,827
|
|
|
92,622
|
|
|
52,709
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues (excludes items below)
|
|
44,207
|
|
|
27,177
|
|
|
79,275
|
|
|
48,261
|
Depreciation and amortization
|
|
819
|
|
|
871
|
|
|
1,624
|
|
|
1,715
|
Selling,
general and administrative expenses
|
|
694
|
|
|
625
|
|
|
1,297
|
|
|
1,200
|
Other
taxes
|
|
190
|
|
|
189
|
|
|
382
|
|
|
351
|
Total costs and
expenses
|
|
45,910
|
|
|
28,862
|
|
|
82,578
|
|
|
51,527
|
Income from continuing
operations
|
|
8,328
|
|
|
965
|
|
|
10,044
|
|
|
1,182
|
Net interest and other
financial costs
|
|
312
|
|
|
372
|
|
|
574
|
|
|
725
|
Income from continuing
operations before income taxes
|
|
8,016
|
|
|
593
|
|
|
9,470
|
|
|
457
|
Provision for income
taxes on continuing operations
|
|
1,799
|
|
|
5
|
|
|
2,081
|
|
|
39
|
Income from continuing
operations, net of tax
|
|
6,217
|
|
|
588
|
|
|
7,389
|
|
|
418
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
8,214
|
|
|
—
|
|
|
8,448
|
Net
income
|
|
6,217
|
|
|
8,802
|
|
|
7,389
|
|
|
8,866
|
Less net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
21
|
|
|
21
|
|
|
42
|
|
|
41
|
Noncontrolling
interests
|
|
323
|
|
|
269
|
|
|
629
|
|
|
555
|
Net income
attributable to MPC
|
$
|
5,873
|
|
$
|
8,512
|
|
$
|
6,718
|
|
$
|
8,270
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
11.03
|
|
$
|
0.46
|
|
$
|
12.24
|
|
$
|
(0.27)
|
Discontinued
operations
|
|
—
|
|
|
12.63
|
|
|
—
|
|
|
12.98
|
Net income per
share
|
$
|
11.03
|
|
$
|
13.09
|
|
$
|
12.24
|
|
$
|
12.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in millions)
|
|
532
|
|
|
650
|
|
|
549
|
|
|
651
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
10.95
|
|
$
|
0.45
|
|
$
|
12.15
|
|
$
|
(0.27)
|
Discontinued
operations
|
|
—
|
|
|
12.55
|
|
|
—
|
|
|
12.98
|
Net income per
share
|
$
|
10.95
|
|
$
|
13.00
|
|
$
|
12.15
|
|
$
|
12.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in millions)
|
|
536
|
|
|
654
|
|
|
553
|
|
|
651
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Summary for
Continuing Operations (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing
|
$
|
7,134
|
|
$
|
224
|
|
$
|
7,902
|
|
$
|
(374)
|
Midstream
|
|
1,126
|
|
|
977
|
|
|
2,198
|
|
|
1,949
|
Corporate
|
|
(170)
|
|
|
(180)
|
|
|
(321)
|
|
|
(337)
|
Income from continuing
operations before items not allocated to segments
|
|
8,090
|
|
|
1,021
|
|
|
9,779
|
|
|
1,238
|
Items not allocated to
segments:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and idling
expenses
|
|
—
|
|
|
(56)
|
|
|
—
|
|
|
(56)
|
Renewable volume
obligation requirements
|
|
238
|
|
|
—
|
|
|
238
|
|
|
—
|
Litigation
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
Income from continuing
operations
|
$
|
8,328
|
|
$
|
965
|
|
$
|
10,044
|
|
$
|
1,182
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Summary for
Discontinued Operations (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Speedway
|
$
|
—
|
|
$
|
283
|
|
$
|
—
|
|
$
|
613
|
Gain on sale of
assets
|
|
—
|
|
|
11,682
|
|
|
—
|
|
|
11,682
|
Transaction-related
costs
|
|
—
|
|
|
(23)
|
|
|
—
|
|
|
(46)
|
Income from
discontinued operations
|
$
|
—
|
|
$
|
11,942
|
|
$
|
—
|
|
$
|
12,249
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
and Investments (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing
|
$
|
315
|
|
$
|
176
|
|
$
|
559
|
|
$
|
310
|
Midstream
|
|
222
|
|
|
178
|
|
|
505
|
|
|
316
|
Corporate(a)
|
|
40
|
|
|
39
|
|
|
86
|
|
|
74
|
Speedway
|
|
—
|
|
|
74
|
|
|
—
|
|
|
177
|
Total
|
$
|
577
|
|
$
|
467
|
|
$
|
1,150
|
|
$
|
877
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes capitalized
interest of $25 million, $16 million, $48 million and $30 million
for the second quarter 2022, the second quarter 2021, the first six
months of 2022 and the first six months of 2021,
respectively.
|
Refining &
Marketing Operating Statistics (unaudited)
|
|
Dollar per Barrel
of Net Refinery Throughput
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing margin(a)
|
$
|
37.54
|
|
$
|
12.45
|
|
$
|
26.93
|
|
$
|
11.37
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Refining operating
costs, excluding storm impacts(b)
|
|
5.19
|
|
|
4.59
|
|
|
5.20
|
|
|
4.86
|
Distribution
costs(c)
|
|
4.76
|
|
|
5.04
|
|
|
4.77
|
|
|
5.11
|
Other (income)
loss(d)
|
|
(0.20)
|
|
|
(0.08)
|
|
|
(0.14)
|
|
|
(0.18)
|
Refining &
Marketing adjusted EBITDA
|
|
27.79
|
|
|
2.90
|
|
|
17.10
|
|
|
1.58
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Storm impacts on
refining operating cost(e)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
Refining planned
turnaround costs
|
|
0.54
|
|
|
0.24
|
|
|
0.56
|
|
|
0.35
|
Depreciation and
amortization
|
|
1.70
|
|
|
1.80
|
|
|
1.75
|
|
|
1.93
|
Refining &
Marketing income (loss) from operations
|
$
|
25.55
|
|
$
|
0.86
|
|
$
|
14.79
|
|
$
|
(0.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees paid to MPLX
included in distribution costs above
|
$
|
3.30
|
|
$
|
3.33
|
|
$
|
3.38
|
|
$
|
3.49
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing refined product sales volume
(mbpd)(a)
|
|
3,615
|
|
|
3,489
|
|
|
3,455
|
|
|
3,279
|
Crude oil refining
capacity (mbpcd)(b)
|
|
2,887
|
|
|
2,874
|
|
|
2,887
|
|
|
2,874
|
Crude oil capacity
utilization (percent)(b)
|
|
100
|
|
|
94
|
|
|
96
|
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
2,896
|
|
|
2,713
|
|
|
2,761
|
|
|
2,548
|
Other charge and blendstocks
|
|
173
|
|
|
141
|
|
|
191
|
|
|
162
|
Net refinery
throughput
|
|
3,069
|
|
|
2,854
|
|
|
2,952
|
|
|
2,710
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
48
|
|
|
48
|
|
|
47
|
|
|
48
|
Sweet crude oil
throughput (percent)
|
|
52
|
|
|
52
|
|
|
53
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
1,536
|
|
|
1,436
|
|
|
1,510
|
|
|
1,380
|
Distillates
|
|
1,123
|
|
|
984
|
|
|
1,051
|
|
|
933
|
Propane
|
|
74
|
|
|
54
|
|
|
71
|
|
|
50
|
NGLs
and petrochemicals
|
|
224
|
|
|
301
|
|
|
193
|
|
|
262
|
Heavy fuel oil
|
|
54
|
|
|
27
|
|
|
70
|
|
|
31
|
Asphalt
|
|
91
|
|
|
91
|
|
|
89
|
|
|
94
|
Total
|
|
3,102
|
|
|
2,893
|
|
|
2,984
|
|
|
2,750
|
Inter-region refinery
transfers excluded from throughput and yields above
(mbpd)
|
|
76
|
|
|
69
|
|
|
68
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
35.60
|
|
$
|
9.63
|
|
$
|
26.61
|
|
$
|
9.40
|
Refining operating
costs
|
|
3.90
|
|
|
3.65
|
|
|
4.18
|
|
|
3.92
|
Refining planned
turnaround costs
|
|
0.60
|
|
|
0.32
|
|
|
0.69
|
|
|
0.64
|
Refining depreciation
and amortization
|
|
1.30
|
|
|
1.40
|
|
|
1.35
|
|
|
1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,209
|
|
|
1,074
|
|
|
1,114
|
|
|
1,000
|
Other charge and blendstocks
|
|
148
|
|
|
108
|
|
|
148
|
|
|
106
|
Gross refinery
throughput
|
|
1,357
|
|
|
1,182
|
|
|
1,262
|
|
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
58
|
|
|
63
|
|
|
57
|
|
|
62
|
Sweet crude oil
throughput (percent)
|
|
42
|
|
|
37
|
|
|
43
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
653
|
|
|
523
|
|
|
624
|
|
|
507
|
Distillates
|
|
504
|
|
|
401
|
|
|
440
|
|
|
375
|
Propane
|
|
42
|
|
|
26
|
|
|
41
|
|
|
24
|
NGLs
and petrochemicals
|
|
129
|
|
|
237
|
|
|
115
|
|
|
203
|
Heavy fuel oil
|
|
34
|
|
|
7
|
|
|
45
|
|
|
5
|
Asphalt
|
|
19
|
|
|
16
|
|
|
20
|
|
|
21
|
Total
|
|
1,381
|
|
|
1,210
|
|
|
1,285
|
|
|
1,135
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
46
|
|
|
37
|
|
|
37
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Continent
Region
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
37.30
|
|
$
|
14.30
|
|
$
|
25.18
|
|
$
|
12.40
|
Refining operating
costs
|
|
4.96
|
|
|
4.00
|
|
|
4.80
|
|
|
4.32
|
Refining planned
turnaround costs
|
|
0.46
|
|
|
0.20
|
|
|
0.37
|
|
|
0.17
|
Refining depreciation
and amortization
|
|
1.50
|
|
|
1.53
|
|
|
1.55
|
|
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,164
|
|
|
1,150
|
|
|
1,135
|
|
|
1,081
|
Other charge and blendstocks
|
|
62
|
|
|
49
|
|
|
65
|
|
|
53
|
Gross refinery
throughput
|
|
1,226
|
|
|
1,199
|
|
|
1,200
|
|
|
1,134
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
26
|
|
|
27
|
|
|
27
|
|
|
27
|
Sweet crude oil
throughput (percent)
|
|
74
|
|
|
73
|
|
|
73
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
619
|
|
|
624
|
|
|
622
|
|
|
596
|
Distillates
|
|
433
|
|
|
406
|
|
|
424
|
|
|
386
|
Propane
|
|
21
|
|
|
21
|
|
|
21
|
|
|
19
|
NGLs
and petrochemicals
|
|
63
|
|
|
69
|
|
|
51
|
|
|
55
|
Heavy fuel oil
|
|
20
|
|
|
13
|
|
|
16
|
|
|
12
|
Asphalt
|
|
71
|
|
|
74
|
|
|
69
|
|
|
73
|
Total
|
|
1,227
|
|
|
1,207
|
|
|
1,203
|
|
|
1,141
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
8
|
|
|
8
|
|
|
9
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
West Coast
Region
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
42.78
|
|
$
|
14.43
|
|
$
|
31.53
|
|
$
|
13.30
|
Refining operating
costs
|
|
8.08
|
|
|
7.36
|
|
|
7.73
|
|
|
7.51
|
Refining planned
turnaround costs
|
|
0.53
|
|
|
0.11
|
|
|
0.58
|
|
|
0.11
|
Refining depreciation
and amortization
|
|
1.41
|
|
|
1.36
|
|
|
1.38
|
|
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
523
|
|
|
489
|
|
|
512
|
|
|
467
|
Other charge and blendstocks
|
|
39
|
|
|
53
|
|
|
46
|
|
|
55
|
Gross refinery
throughput
|
|
562
|
|
|
542
|
|
|
558
|
|
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
72
|
|
|
66
|
|
|
71
|
|
|
69
|
Sweet crude oil
throughput (percent)
|
|
28
|
|
|
34
|
|
|
29
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
289
|
|
|
289
|
|
|
291
|
|
|
277
|
Distillates
|
|
197
|
|
|
177
|
|
|
193
|
|
|
172
|
Propane
|
|
11
|
|
|
7
|
|
|
9
|
|
|
7
|
NGLs
and petrochemicals
|
|
39
|
|
|
51
|
|
|
35
|
|
|
46
|
Heavy fuel oil
|
|
33
|
|
|
20
|
|
|
36
|
|
|
24
|
Asphalt
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
Total
|
|
570
|
|
|
545
|
|
|
564
|
|
|
526
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
22
|
|
|
24
|
|
|
22
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream Operating
Statistics (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Pipeline throughputs
(mbpd)(a)
|
|
6,012
|
|
|
5,674
|
|
|
5,719
|
|
|
5,448
|
Terminal throughput
(mbpd)
|
|
3,101
|
|
|
2,986
|
|
|
3,021
|
|
|
2,801
|
Gathering system
throughput (million cubic feet per day)(b)
|
|
5,626
|
|
|
5,077
|
|
|
5,452
|
|
|
5,081
|
Natural gas processed
(million cubic feet per day)(b)
|
|
8,476
|
|
|
8,372
|
|
|
8,372
|
|
|
8,371
|
C2 (ethane) + NGLs
fractionated (mbpd)(b)
|
|
536
|
|
|
545
|
|
|
531
|
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
June
30,
2022
|
|
March
31,
2022
|
(In
millions)
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
9,078
|
|
$
|
7,148
|
Short-term
investments
|
|
4,241
|
|
|
3,449
|
MPC debt
|
|
6,999
|
|
|
6,953
|
MPLX debt
|
|
19,775
|
|
|
19,756
|
Total consolidated
debt(a)
|
|
26,774
|
|
|
26,709
|
Redeemable
noncontrolling interest
|
|
965
|
|
|
965
|
Equity
|
|
32,704
|
|
|
30,334
|
Shares
outstanding
|
|
513
|
|
|
545
|
|
|
|
|
|
|
(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. 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 Attributable to MPC to Adjusted Net Income Attributable
to MPC (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Net income
attributable to MPC
|
$
|
5,873
|
|
$
|
8,512
|
|
$
|
6,718
|
|
$
|
8,270
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Speedway
sale
|
|
—
|
|
|
(11,682)
|
|
|
—
|
|
|
(11,682)
|
Renewable volume
obligation requirements
|
|
(238)
|
|
|
—
|
|
|
(238)
|
|
|
—
|
Impairments
|
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
Pension
settlement
|
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
Transaction-related
costs
|
|
—
|
|
|
23
|
|
|
—
|
|
|
46
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
Tax impact of
adjustments(a)
|
|
52
|
|
|
3,497
|
|
|
52
|
|
|
3,543
|
Non-controlling
interest impact of adjustments
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
(24)
|
Adjusted net income
attributable to MPC
|
$
|
5,687
|
|
$
|
437
|
|
$
|
6,532
|
|
$
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
$
|
10.95
|
|
$
|
13.00
|
|
$
|
12.15
|
|
$
|
12.71
|
Adjusted diluted
income per share(b)
|
$
|
10.61
|
|
$
|
0.67
|
|
$
|
11.81
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Income taxes for the
three and six months ended June 30, 2022 was calculated by applying
a combined federal and state tax rate of 22% to the pre-tax
adjustments. Income taxes for adjusted earnings for the three and
six months ended June 30, 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 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 Attributable to MPC to Adjusted EBITDA from Continuing
Operations (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Net income
attributable to MPC
|
$
|
5,873
|
|
$
|
8,512
|
|
$
|
6,718
|
|
$
|
8,270
|
Net income
attributable to noncontrolling interests
|
|
344
|
|
|
290
|
|
|
671
|
|
|
596
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
(8,214)
|
|
|
—
|
|
|
(8,448)
|
Provision for income
taxes on continuing operations
|
|
1,799
|
|
|
5
|
|
|
2,081
|
|
|
39
|
Net interest and other
financial costs
|
|
312
|
|
|
372
|
|
|
574
|
|
|
725
|
Depreciation and
amortization
|
|
819
|
|
|
871
|
|
|
1,624
|
|
|
1,715
|
Refining planned
turnaround costs
|
|
151
|
|
|
61
|
|
|
296
|
|
|
173
|
Storm
impacts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
Renewable volume
obligation requirements
|
|
(238)
|
|
|
—
|
|
|
(238)
|
|
|
—
|
Litigation
|
|
—
|
|
|
—
|
|
|
(27)
|
|
|
—
|
Impairments
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
Adjusted EBITDA from
continuing operations
|
$
|
9,060
|
|
$
|
1,910
|
|
$
|
11,699
|
|
$
|
3,130
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income from Discontinued Operations, Net of Tax to Adjusted EBITDA
from Discontinued Operations (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Income from
discontinued operations, net of tax
|
$
|
—
|
|
$
|
8,214
|
|
$
|
—
|
|
$
|
8,448
|
Provision for income
taxes
|
|
—
|
|
|
3,726
|
|
|
—
|
|
|
3,795
|
Net interest and other
financial costs
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
Depreciation and
amortization
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
Gain on sale of
assets
|
|
—
|
|
|
(11,682)
|
|
|
—
|
|
|
(11,682)
|
Transaction-related
costs
|
|
—
|
|
|
23
|
|
|
—
|
|
|
46
|
Adjusted EBITDA from
discontinued operations
|
$
|
—
|
|
$
|
284
|
|
$
|
—
|
|
$
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
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
June 30,
|
|
Six Months
Ended
June 30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing income (loss) from operations
|
$
|
7,134
|
|
$
|
224
|
|
$
|
7,902
|
|
$
|
(374)
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
574
|
|
|
499
|
|
|
1,082
|
|
|
955
|
Income from equity
method investments
|
|
(6)
|
|
|
(14)
|
|
|
(18)
|
|
|
(19)
|
Net gain on disposal
of assets
|
|
(37)
|
|
|
—
|
|
|
(37)
|
|
|
(3)
|
Other
income
|
|
(234)
|
|
|
(89)
|
|
|
(415)
|
|
|
(143)
|
Refining &
Marketing gross margin
|
|
7,431
|
|
|
620
|
|
|
8,514
|
|
|
416
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
|
2,554
|
|
|
2,305
|
|
|
4,943
|
|
|
4,580
|
Depreciation and
amortization
|
|
475
|
|
|
466
|
|
|
936
|
|
|
944
|
Gross margin excluded
from and other income included in Refining & Marketing
margin(a)
|
|
71
|
|
|
(116)
|
|
|
85
|
|
|
(295)
|
Other taxes included
in Refining & Marketing margin
|
|
(49)
|
|
|
(42)
|
|
|
(92)
|
|
|
(66)
|
Refining &
Marketing margin
|
$
|
10,482
|
|
$
|
3,233
|
|
$
|
14,386
|
|
$
|
5,579
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin by region:
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Coast
|
$
|
4,244
|
|
$
|
1,003
|
|
$
|
5,897
|
|
$
|
1,837
|
Mid-Continent
|
|
4,135
|
|
|
1,550
|
|
|
5,428
|
|
|
2,528
|
West Coast
|
|
2,103
|
|
|
680
|
|
|
3,061
|
|
|
1,214
|
Refining &
Marketing margin
|
$
|
10,482
|
|
$
|
3,233
|
|
$
|
14,386
|
|
$
|
5,579
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
View original
content:https://www.prnewswire.com/news-releases/marathon-petroleum-corp-reports-second-quarter-2022-results-301597761.html
SOURCE Marathon Petroleum Corporation