FINDLAY,
Ohio, Nov. 1, 2022 /PRNewswire/ --
- Net income attributable to MPC of $4.5 billion, or $9.06 per diluted share; reported adjusted net
income of $3.9 billion, or
$7.81 per diluted share
- Adjusted EBITDA of $6.8
billion; improving operational and commercial execution as
the refining system ran at near full utilization to meet
demand
- MPLX increases distribution 10%; MPC expects to receive a
total of $2 billion on an annual
basis
- Completed $15 billion return
of capital commitment utilizing the proceeds from the Speedway
divestiture; repurchased approximately 30% of outstanding
shares
- Announced dividend increase of approximately 30% to
$0.75 per share
Marathon Petroleum Corp. (NYSE: MPC) today reported net income
attributable to MPC of $4.5 billion,
or $9.06 per diluted share, for the
third quarter of 2022, compared with net income attributable to MPC
of $694 million, or $1.09 per diluted share, for the third quarter of
2021.
Adjusted net income was $3.9
billion, or $7.81 per diluted
share, for the third quarter of 2022. This compares to adjusted net
income of $464 million, or
$0.73 per diluted share, for the
third quarter of 2021. Adjusted results for third-quarter 2022
exclude net pre-tax benefits of approximately $1 billion and for third-quarter 2021 exclude
pre-tax charges of $48 million.
Adjustments are shown in the accompanying release tables.
Adjusted earnings before interest, taxes, depreciation, and
amortization (adjusted EBITDA) was $6.8
billion for the third quarter of 2022, compared with
$2.4 billion for the third quarter of
2021.
"Market demand for our products remains strong, and our
third-quarter results reflect our improving operational and
commercial execution," said President and Chief Executive Officer
Michael J. Hennigan. "We
completed our $15 billion share
repurchase commitment and announced an increase to our quarterly
dividend of approximately 30%."
Results from Operations
Adjusted EBITDA from Continuing and Discontinued Operations
(unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income from
operations
|
$
|
4,625
|
|
$
|
509
|
|
$
|
12,527
|
|
$
|
135
|
Add: Depreciation and
amortization
|
|
459
|
|
|
462
|
|
|
1,395
|
|
|
1,406
|
Refining planned
turnaround costs
|
|
384
|
|
|
205
|
|
|
680
|
|
|
378
|
Storm
impacts
|
|
—
|
|
|
19
|
|
|
—
|
|
|
50
|
LIFO inventory
charge
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
Refining &
Marketing segment adjusted EBITDA
|
|
5,496
|
|
|
1,195
|
|
|
14,630
|
|
|
1,969
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment income from
operations
|
|
1,176
|
|
|
1,042
|
|
|
3,374
|
|
|
2,991
|
Add: Depreciation and
amortization
|
|
322
|
|
|
329
|
|
|
983
|
|
|
994
|
Storm
impacts
|
|
—
|
|
|
4
|
|
|
—
|
|
|
20
|
Midstream segment
adjusted EBITDA
|
|
1,498
|
|
|
1,375
|
|
|
4,357
|
|
|
4,005
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
6,994
|
|
|
2,570
|
|
|
18,987
|
|
|
5,974
|
Corporate
|
|
(173)
|
|
|
(186)
|
|
|
(494)
|
|
|
(523)
|
Add: Depreciation and
amortization
|
|
13
|
|
|
32
|
|
|
40
|
|
|
95
|
Adjusted EBITDA from
continuing operations
|
$
|
6,834
|
|
$
|
2,416
|
|
$
|
18,533
|
|
$
|
5,546
|
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
|
|
|
|
|
|
|
|
|
|
|
Speedway
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
613
|
Add: Depreciation and
amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
Adjusted EBITDA from
discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from
continuing and discontinued operations
|
$
|
6,834
|
|
$
|
2,416
|
|
$
|
18,533
|
|
$
|
6,162
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining & Marketing (R&M)
Segment adjusted EBITDA was $5.5
billion in the third quarter of 2022, versus $1.2 billion for the third quarter of 2021.
Segment adjusted EBITDA excludes refining planned turnaround costs,
which totaled $384 million in the
third quarter of 2022 and $205
million in the third quarter of 2021. The increase in
segment adjusted EBITDA was driven by higher margins and
volumes.
R&M margin was $30.21 per
barrel for the third quarter of 2022, versus $14.51 per barrel for the third quarter of 2021.
Crude capacity utilization was approximately 98%, resulting in
total throughput of 3.0 million barrels per day for the third
quarter of 2022. This compares to crude capacity utilization of
approximately 93% for the third quarter of 2021, which resulted in
total throughput of 2.8 million barrels per day.
Refining operating costs per barrel were $5.63 for the third quarter of 2022, versus
$4.97 for the third quarter of 2021.
The majority of this increase was driven by higher energy costs, as
well as $0.13 per barrel of
non-recurring costs recorded in the quarter associated with a
multi-year property tax assessment.
Midstream
Segment adjusted EBITDA was $1.5
billion in the third quarter of 2022, versus $1.4 billion for the third quarter of 2021, up
roughly 9% year over year.
Corporate and Items Not Allocated
Corporate expenses totaled $173
million in the third quarter of 2022, compared with
$186 million in the third quarter of
2021.
In the third quarter of 2022, items not allocated to segments
include a $549 million non-cash gain
for the contribution of the Martinez assets to the Martinez
Renewables joint venture and a $509
million non-cash gain related to an MPLX LP (NYSE:MPLX)
third-party contract reclassification(a). These have
been excluded from the company's adjusted results.
(a) Gain triggered from the
accounting for the reclassification from an operating to a
sales-type lease.
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 September 30, 2022, MPC had
$11.1 billion of cash, cash
equivalents, and short-term investments and $5 billion available on its bank revolving credit
facility. MPC debt at the end of the third quarter of 2022 totaled
$6.9 billion, excluding MPLX debt.
MPC's gross debt-to-capital ratio, excluding MPLX debt, was 21% at
the end of the third quarter of 2022.
In October, MPC completed its $15
billion return of capital commitment, having repurchased
approximately 30% of outstanding shares as of the program
commencement. The company has approximately $5 billion remaining available under its current
share repurchase authorizations.
Today, MPC announced that the Board of Directors approved an
increase to the quarterly dividend to $0.75 per share. The dividend is payable
December 12, 2022 to shareholders of
record on November 16,
2022.
Strategic and Operations Update
The Martinez Renewables joint venture with Neste closed on
September 21, 2022. All required
closing conditions were met, including the receipt of the necessary
permits and regulatory approvals. The first phase of the Martinez
renewables project facility is expected 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 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 meet the needs of today and participate in an
energy-diverse future.
Fourth Quarter 2022 Outlook
Refining &
Marketing Segment:
|
|
|
Refining operating
costs per barrel(a)
|
$
|
5.30
|
Distribution costs (in
millions)
|
$
|
1,350
|
Refining planned
turnaround costs (in millions)
|
$
|
430
|
Depreciation and
amortization (in millions)
|
$
|
460
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
Crude oil refined
|
|
2,690
|
Other charge and blendstocks
|
|
215
|
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") plans and goals, including those related
to greenhouse gas emissions, diversity and inclusion and ESG
reporting. Forward-looking and other statements regarding our ESG
plans and goals are not an indication that these statements are
material to investors. In addition, historical, current, and
forward-looking ESG-related statements may be based on standards
for measuring progress that are still developing, internal controls
and processes that continue to evolve, and assumptions that are
subject to change in the future. 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, rising interest rates and
changes in governmental policies relating to refined petroleum
products, crude oil, natural gas or NGLs, or taxation; continued or
further volatility in and degradation of general economic, market,
industry or business conditions; 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 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 plans and goals 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
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In millions, except
per-share data)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
other operating revenues
|
$
|
45,787
|
|
$
|
32,321
|
|
$
|
137,640
|
|
$
|
84,647
|
Income from
equity method investments
|
|
180
|
|
|
122
|
|
|
469
|
|
|
306
|
Net gain on
disposal of assets
|
|
1,051
|
|
|
—
|
|
|
1,072
|
|
|
3
|
Other
income
|
|
219
|
|
|
170
|
|
|
678
|
|
|
366
|
Total revenues
and other income
|
|
47,237
|
|
|
32,613
|
|
|
139,859
|
|
|
85,322
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues (excludes items below)
|
|
38,821
|
|
|
29,563
|
|
|
118,096
|
|
|
77,824
|
Depreciation and amortization
|
|
794
|
|
|
836
|
|
|
2,418
|
|
|
2,551
|
Selling,
general and administrative expenses
|
|
712
|
|
|
681
|
|
|
2,009
|
|
|
1,881
|
Other
taxes
|
|
224
|
|
|
193
|
|
|
606
|
|
|
544
|
Total costs and
expenses
|
|
40,551
|
|
|
31,273
|
|
|
123,129
|
|
|
82,800
|
Income from continuing
operations
|
|
6,686
|
|
|
1,340
|
|
|
16,730
|
|
|
2,522
|
Net interest and other
financial costs
|
|
240
|
|
|
328
|
|
|
814
|
|
|
1,053
|
Income from continuing
operations before income taxes
|
|
6,446
|
|
|
1,012
|
|
|
15,916
|
|
|
1,469
|
Provision (benefit) for
income taxes on continuing operations
|
|
1,426
|
|
|
(18)
|
|
|
3,507
|
|
|
21
|
Income from continuing
operations, net of tax
|
|
5,020
|
|
|
1,030
|
|
|
12,409
|
|
|
1,448
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,448
|
Net
income
|
|
5,020
|
|
|
1,030
|
|
|
12,409
|
|
|
9,896
|
Less net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
23
|
|
|
38
|
|
|
65
|
|
|
79
|
Noncontrolling
interests
|
|
520
|
|
|
298
|
|
|
1,149
|
|
|
853
|
Net income
attributable to MPC
|
$
|
4,477
|
|
$
|
694
|
|
$
|
11,195
|
|
$
|
8,964
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
9.12
|
|
$
|
1.10
|
|
$
|
21.18
|
|
$
|
0.80
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.10
|
Net income per
share
|
$
|
9.12
|
|
$
|
1.10
|
|
$
|
21.18
|
|
$
|
13.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in millions)
|
|
491
|
|
|
633
|
|
|
528
|
|
|
645
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
9.06
|
|
$
|
1.09
|
|
$
|
21.04
|
|
$
|
0.79
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.02
|
Net income per
share
|
$
|
9.06
|
|
$
|
1.09
|
|
$
|
21.04
|
|
$
|
13.81
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in millions)
|
|
494
|
|
|
637
|
|
|
532
|
|
|
649
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Summary for Continuing Operations (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing
|
$
|
4,625
|
|
$
|
509
|
|
$
|
12,527
|
|
$
|
135
|
Midstream
|
|
1,176
|
|
|
1,042
|
|
|
3,374
|
|
|
2,991
|
Corporate
|
|
(173)
|
|
|
(186)
|
|
|
(494)
|
|
|
(523)
|
Income from continuing
operations before items not allocated to segments
|
|
5,628
|
|
|
1,365
|
|
|
15,407
|
|
|
2,603
|
Items not allocated to
segments:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
1,058
|
|
|
—
|
|
|
1,058
|
|
|
—
|
Renewable volume
obligation requirements
|
|
—
|
|
|
—
|
|
|
238
|
|
|
—
|
Litigation
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
Impairment and idling
expenses
|
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(81)
|
Income from continuing
operations
|
$
|
6,686
|
|
$
|
1,340
|
|
$
|
16,730
|
|
$
|
2,522
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Summary for Discontinued Operations
(unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Speedway
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
613
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,682
|
Transaction-related
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46)
|
Income from
discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
12,249
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures and Investments (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing
|
$
|
445
|
|
$
|
228
|
|
$
|
1,004
|
|
$
|
538
|
Midstream
|
|
267
|
|
|
190
|
|
|
772
|
|
|
506
|
Corporate(a)
|
|
77
|
|
|
46
|
|
|
163
|
|
|
120
|
Speedway
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177
|
Total
|
$
|
789
|
|
$
|
464
|
|
$
|
1,939
|
|
$
|
1,341
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes capitalized
interest of $28 million, $18 million, $76 million and $48 million
for the third quarter 2022, the third quarter 2021, the first nine
months of 2022 and the first nine months of 2021,
respectively.
|
Refining & Marketing Operating Statistics
(unaudited)
Dollar per Barrel
of Net Refinery Throughput
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing margin, excluding LIFO inventory
charge(a)
|
$
|
30.31
|
|
$
|
14.51
|
|
$
|
28.08
|
|
$
|
12.46
|
LIFO inventory
charge
|
|
(0.10)
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
Refining &
Marketing margin(a)
|
|
30.21
|
|
|
14.51
|
|
|
28.05
|
|
|
12.46
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Refining operating
costs, excluding storm impacts(b)
|
|
5.63
|
|
|
4.97
|
|
|
5.35
|
|
|
4.89
|
Distribution
costs(c)
|
|
4.90
|
|
|
5.02
|
|
|
4.82
|
|
|
5.08
|
Other
income(d)
|
|
(0.09)
|
|
|
(0.05)
|
|
|
(0.13)
|
|
|
(0.13)
|
LIFO inventory
charge
|
|
(0.10)
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
Refining &
Marketing adjusted EBITDA
|
|
19.87
|
|
|
4.57
|
|
|
18.04
|
|
|
2.62
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Storm impacts on
refining operating cost(e)
|
|
—
|
|
|
0.07
|
|
|
—
|
|
|
0.07
|
Refining planned
turnaround costs
|
|
1.39
|
|
|
0.78
|
|
|
0.84
|
|
|
0.50
|
Depreciation and
amortization
|
|
1.66
|
|
|
1.77
|
|
|
1.72
|
|
|
1.87
|
LIFO inventory
charge
|
|
0.10
|
|
|
—
|
|
|
0.03
|
|
|
—
|
Refining &
Marketing income from operations
|
$
|
16.72
|
|
$
|
1.95
|
|
$
|
15.45
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees paid to MPLX
included in distribution costs above
|
$
|
3.34
|
|
$
|
3.23
|
|
$
|
3.36
|
|
$
|
3.40
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Storms in the first and
third quarters of 2021 resulted in higher costs, including
maintenance and repairs.
|
|
|
|
|
|
|
Refining &
Marketing - Supplemental Operating Data
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing refined product sales volume
(mbpd)(a)
|
|
3,587
|
|
|
3,539
|
|
|
3,500
|
|
|
3,366
|
Crude oil refining
capacity (mbpcd)(b)
|
|
2,887
|
|
|
2,874
|
|
|
2,887
|
|
|
2,874
|
Crude oil capacity
utilization (percent)(b)
|
|
98
|
|
|
93
|
|
|
96
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
2,823
|
|
|
2,684
|
|
|
2,781
|
|
|
2,594
|
Other charge and blendstocks
|
|
184
|
|
|
152
|
|
|
189
|
|
|
159
|
Net refinery
throughput
|
|
3,007
|
|
|
2,836
|
|
|
2,970
|
|
|
2,753
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
48
|
|
|
45
|
|
|
48
|
|
|
47
|
Sweet crude oil
throughput (percent)
|
|
52
|
|
|
55
|
|
|
52
|
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
1,501
|
|
|
1,451
|
|
|
1,507
|
|
|
1,404
|
Distillates
|
|
1,134
|
|
|
968
|
|
|
1,079
|
|
|
944
|
Propane
|
|
73
|
|
|
53
|
|
|
72
|
|
|
51
|
NGLs
and petrochemicals
|
|
199
|
|
|
272
|
|
|
194
|
|
|
265
|
Heavy fuel oil
|
|
43
|
|
|
32
|
|
|
61
|
|
|
32
|
Asphalt
|
|
91
|
|
|
93
|
|
|
90
|
|
|
94
|
Total
|
|
3,041
|
|
|
2,869
|
|
|
3,003
|
|
|
2,790
|
Inter-region refinery
transfers excluded from throughput and yields above
(mbpd)
|
|
97
|
|
|
61
|
|
|
77
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
27.39
|
|
$
|
13.03
|
|
$
|
26.89
|
|
$
|
10.65
|
Refining operating
costs
|
|
4.14
|
|
|
4.06
|
|
|
4.17
|
|
|
3.97
|
Refining planned
turnaround costs
|
|
1.31
|
|
|
0.13
|
|
|
0.91
|
|
|
0.47
|
Refining depreciation
and amortization
|
|
1.16
|
|
|
1.42
|
|
|
1.28
|
|
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,190
|
|
|
1,034
|
|
|
1,139
|
|
|
1,011
|
Other charge and blendstocks
|
|
171
|
|
|
110
|
|
|
156
|
|
|
108
|
Gross refinery
throughput
|
|
1,361
|
|
|
1,144
|
|
|
1,295
|
|
|
1,119
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
59
|
|
|
58
|
|
|
58
|
|
|
60
|
Sweet crude oil
throughput (percent)
|
|
41
|
|
|
42
|
|
|
42
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
655
|
|
|
544
|
|
|
635
|
|
|
520
|
Distillates
|
|
508
|
|
|
380
|
|
|
463
|
|
|
376
|
Propane
|
|
43
|
|
|
27
|
|
|
41
|
|
|
25
|
NGLs
and petrochemicals
|
|
116
|
|
|
195
|
|
|
115
|
|
|
201
|
Heavy fuel oil
|
|
44
|
|
|
7
|
|
|
45
|
|
|
6
|
Asphalt
|
|
21
|
|
|
16
|
|
|
20
|
|
|
19
|
Total
|
|
1,387
|
|
|
1,169
|
|
|
1,319
|
|
|
1,147
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
66
|
|
|
26
|
|
|
47
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Continent
Region
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
31.04
|
|
$
|
15.44
|
|
$
|
27.14
|
|
$
|
13.46
|
Refining operating
costs
|
|
5.36
|
|
|
4.27
|
|
|
4.99
|
|
|
4.30
|
Refining planned
turnaround costs
|
|
1.47
|
|
|
1.66
|
|
|
0.74
|
|
|
0.69
|
Refining depreciation
and amortization
|
|
1.53
|
|
|
1.50
|
|
|
1.54
|
|
|
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
1,122
|
|
|
1,146
|
|
|
1,130
|
|
|
1,103
|
Other charge and blendstocks
|
|
66
|
|
|
61
|
|
|
65
|
|
|
55
|
Gross refinery
throughput
|
|
1,188
|
|
|
1,207
|
|
|
1,195
|
|
|
1,158
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
26
|
|
|
26
|
|
|
26
|
|
|
26
|
Sweet crude oil
throughput (percent)
|
|
74
|
|
|
74
|
|
|
74
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
601
|
|
|
613
|
|
|
615
|
|
|
602
|
Distillates
|
|
439
|
|
|
412
|
|
|
428
|
|
|
395
|
Propane
|
|
19
|
|
|
19
|
|
|
21
|
|
|
19
|
NGLs
and petrochemicals
|
|
55
|
|
|
77
|
|
|
52
|
|
|
62
|
Heavy fuel oil
|
|
8
|
|
|
12
|
|
|
14
|
|
|
12
|
Asphalt
|
|
69
|
|
|
76
|
|
|
69
|
|
|
74
|
Total
|
|
1,191
|
|
|
1,209
|
|
|
1,199
|
|
|
1,164
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
7
|
|
|
13
|
|
|
7
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Coast
Region
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Dollar per barrel of
refinery throughput:
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin
|
$
|
35.83
|
|
$
|
15.56
|
|
$
|
32.97
|
|
$
|
14.08
|
Refining operating
costs
|
|
8.88
|
|
|
7.87
|
|
|
8.11
|
|
|
7.63
|
Refining planned
turnaround costs
|
|
1.17
|
|
|
0.12
|
|
|
0.78
|
|
|
0.12
|
Refining depreciation
and amortization
|
|
1.30
|
|
|
1.36
|
|
|
1.35
|
|
|
1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughputs
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil refined
|
|
511
|
|
|
504
|
|
|
512
|
|
|
480
|
Other charge and blendstocks
|
|
44
|
|
|
42
|
|
|
45
|
|
|
51
|
Gross refinery
throughput
|
|
555
|
|
|
546
|
|
|
557
|
|
|
531
|
|
|
|
|
|
|
|
|
|
|
|
|
Sour crude oil
throughput (percent)
|
|
72
|
|
|
63
|
|
|
71
|
|
|
67
|
Sweet crude oil
throughput (percent)
|
|
28
|
|
|
37
|
|
|
29
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined product yields
(mbpd):
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
280
|
|
|
294
|
|
|
287
|
|
|
282
|
Distillates
|
|
198
|
|
|
176
|
|
|
195
|
|
|
173
|
Propane
|
|
11
|
|
|
7
|
|
|
10
|
|
|
7
|
NGLs
and petrochemicals
|
|
34
|
|
|
48
|
|
|
34
|
|
|
46
|
Heavy fuel oil
|
|
36
|
|
|
26
|
|
|
35
|
|
|
25
|
Asphalt
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
Total
|
|
560
|
|
|
552
|
|
|
562
|
|
|
534
|
Inter-region refinery
transfers included in throughput and yields above (mbpd)
|
|
24
|
|
|
22
|
|
|
23
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream Operating Statistics (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Pipeline throughputs
(mbpd)(a)
|
|
5,845
|
|
|
5,600
|
|
|
5,761
|
|
|
5,499
|
Terminal throughput
(mbpd)
|
|
3,026
|
|
|
3,046
|
|
|
3,023
|
|
|
2,884
|
Gathering system
throughput (million cubic feet per day)(b)
|
|
6,083
|
|
|
5,419
|
|
|
5,664
|
|
|
5,195
|
Natural gas processed
(million cubic feet per day)(b)
|
|
8,516
|
|
|
8,383
|
|
|
8,401
|
|
|
8,375
|
C2 (ethane) + NGLs
fractionated (mbpd)(b)
|
|
562
|
|
|
553
|
|
|
541
|
|
|
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)
|
|
September
30,
2022
|
|
|
June
30,
2022
|
(In
millions)
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
7,376
|
|
$
|
9,078
|
Short-term
investments
|
|
3,759
|
|
|
4,241
|
MPC debt
|
|
6,923
|
|
|
6,999
|
MPLX debt
|
|
19,779
|
|
|
19,775
|
Total consolidated
debt(a)
|
|
26,702
|
|
|
26,774
|
Redeemable
noncontrolling interest
|
|
967
|
|
|
965
|
Equity
|
|
32,808
|
|
|
32,704
|
Shares
outstanding
|
|
469
|
|
|
513
|
|
|
|
|
|
|
(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
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Net income
attributable to MPC
|
$
|
4,477
|
|
$
|
694
|
|
$
|
11,195
|
|
$
|
8,964
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Speedway
sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,682)
|
Gain on sale of
assets
|
|
(1,058)
|
|
|
—
|
|
|
(1,058)
|
|
|
—
|
LIFO inventory
charge
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
Renewable volume
obligation requirements
|
|
—
|
|
|
—
|
|
|
(238)
|
|
|
—
|
Litigation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Impairments
|
|
—
|
|
|
25
|
|
|
—
|
|
|
81
|
Storm
impacts
|
|
—
|
|
|
23
|
|
|
—
|
|
|
70
|
Pension
settlement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
Transaction-related
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
Tax impact of
adjustments(a)
|
|
227
|
|
|
(272)
|
|
|
279
|
|
|
3,271
|
Non-controlling
interest impact of adjustments
|
|
183
|
|
|
(6)
|
|
|
183
|
|
|
(30)
|
Adjusted net income
attributable to MPC
|
$
|
3,857
|
|
$
|
464
|
|
$
|
10,389
|
|
$
|
769
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
$
|
9.06
|
|
$
|
1.09
|
|
$
|
21.04
|
|
$
|
13.81
|
Adjusted diluted
income per share(b)
|
$
|
7.81
|
|
$
|
0.73
|
|
$
|
19.53
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Income taxes for the
three and nine months ended September 30, 2022 were 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 nine months ended September 30, 2021 were calculated
by applying a combined federal and state statutory tax rate of 24%
to the adjusted pre-tax income. 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
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Net income
attributable to MPC
|
$
|
4,477
|
|
$
|
694
|
|
$
|
11,195
|
|
$
|
8,964
|
Net income
attributable to noncontrolling interests
|
|
543
|
|
|
336
|
|
|
1,214
|
|
|
932
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,448)
|
Provision (benefit) for
income taxes on continuing operations
|
|
1,426
|
|
|
(18)
|
|
|
3,507
|
|
|
21
|
Net interest and other
financial costs
|
|
240
|
|
|
328
|
|
|
814
|
|
|
1,053
|
Depreciation and
amortization
|
|
794
|
|
|
836
|
|
|
2,418
|
|
|
2,551
|
Refining planned
turnaround costs
|
|
384
|
|
|
205
|
|
|
680
|
|
|
378
|
Storm
impacts
|
|
—
|
|
|
23
|
|
|
—
|
|
|
70
|
LIFO inventory
charge
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
Gain on sale of
assets
|
|
(1,058)
|
|
|
—
|
|
|
(1,058)
|
|
|
—
|
Renewable volume
obligation requirements
|
|
—
|
|
|
—
|
|
|
(238)
|
|
|
—
|
Litigation
|
|
—
|
|
|
—
|
|
|
(27)
|
|
|
—
|
Impairments
|
|
—
|
|
|
12
|
|
|
—
|
|
|
25
|
Adjusted EBITDA from
continuing operations
|
$
|
6,834
|
|
$
|
2,416
|
|
$
|
18,533
|
|
$
|
5,546
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income from Discontinued Operations, Net of
Tax to Adjusted EBITDA from Discontinued Operations
(unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Income from
discontinued operations, net of tax
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
8,448
|
Provision for income
taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,795
|
Net interest and other
financial costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
Depreciation and
amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,682)
|
Transaction-related
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
Adjusted EBITDA from
discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
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 from
Operations to Refining & Marketing Gross Margin and Refining
& Marketing Margin (unaudited)
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Refining &
Marketing income from operations
|
$
|
4,625
|
|
$
|
509
|
|
$
|
12,527
|
|
$
|
135
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
614
|
|
|
540
|
|
|
1,696
|
|
|
1,495
|
Income from equity
method investments
|
|
(21)
|
|
|
(8)
|
|
|
(39)
|
|
|
(27)
|
Net gain on disposal
of assets
|
|
—
|
|
|
(3)
|
|
|
(37)
|
|
|
(6)
|
Other
income
|
|
(191)
|
|
|
(146)
|
|
|
(606)
|
|
|
(289)
|
Refining &
Marketing gross margin
|
|
5,027
|
|
|
892
|
|
|
13,541
|
|
|
1,308
|
Plus
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
|
2,861
|
|
|
2,527
|
|
|
7,804
|
|
|
7,107
|
Depreciation and
amortization
|
|
459
|
|
|
462
|
|
|
1,395
|
|
|
1,406
|
Gross margin excluded
from and other income included in Refining & Marketing
margin(a)
|
|
51
|
|
|
(58)
|
|
|
136
|
|
|
(353)
|
Other taxes included
in Refining & Marketing margin
|
|
(40)
|
|
|
(38)
|
|
|
(132)
|
|
|
(104)
|
Refining &
Marketing margin
|
|
8,358
|
|
|
3,785
|
|
|
22,744
|
|
|
9,364
|
LIFO inventory
charge
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
Refining &
Marketing margin, excluding LIFO inventory charge
|
$
|
8,386
|
|
$
|
3,785
|
|
$
|
22,772
|
|
$
|
9,364
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining &
Marketing margin by region:
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Coast
|
$
|
3,264
|
|
$
|
1,339
|
|
$
|
9,161
|
|
$
|
3,176
|
Mid-Continent
|
|
3,373
|
|
|
1,695
|
|
|
8,801
|
|
|
4,223
|
West Coast
|
|
1,749
|
|
|
751
|
|
|
4,810
|
|
|
1,965
|
Refining &
Marketing margin, excluding LIFO inventory charge
|
$
|
8,386
|
|
$
|
3,785
|
|
$
|
22,772
|
|
$
|
9,364
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
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SOURCE Marathon Petroleum Corporation