Marathon Petroleum Corp. Reports Second-Quarter 2024 Results

FINDLAY, Ohio , Aug. 6, 2024 /PRNewswire/ --

  • Second -quarter net income attributable to MPC of $1.5 billion, or $4.33 per diluted share; adjusted net income of $1.4 billion, or $4.12 per diluted share
  • Adjusted EBITDA of $3.4 billion and net cash provided by operating activities of $3.2 billion, reflecting strong operational and commercial performance
  • Advanced Midstream growth; $1.6 billion segment adjusted EBITDA in the second quarter, up 6% year-over-year, focused in the Permian and Marcellus
  • MPC received $550 million quarterly distribution from MPLX, demonstrating the value of the strategic relationship
  • Returned $3.2 billion of capital through $2.9 billion of share repurchases and $290 million of dividends

Marathon Petroleum Corp. (NYSE: MPC) today reported net income attributable to MPC of $1.5 billion, or $4.33 per diluted share, for the second quarter of 2024, compared with net income attributable to MPC of $2.2 billion, or $5.32 per diluted share, for the second quarter of 2023. 

Adjusted net income was $1.4 billion, or $4.12 per diluted share, for the second quarter of 2024. Adjustments are shown in the accompanying release tables.

The second quarter of 2024 adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $3.4 billion, compared with $4.5 billion for the second quarter of 2023. Adjustments are shown in the accompanying release tables.

"Our second quarter results reflect our commitment to peer-leading operational and commercial performance," said President and Chief Executive Officer Maryann Mannen. "Overall, the business generated $3.2 billion of net cash provided by operating activities and we returned $3.2 billion through share repurchases and dividends during the quarter. We continue to execute disciplined, high-return refining investments and advance attractive midstream growth opportunities."

Results from Operations

Adjusted EBITDA (unaudited)



Three Months Ended 

June 30,



Six Months Ended 

June 30,

(In millions)


2024



2023



2024



2023

Refining & Marketing Segment












Segment income from operations

$

1,319


$

2,287


$

2,085


$

5,319

Add: Depreciation and amortization


470



484



930



948

 Refining planned turnaround costs


183



392



831



749

Refining & Marketing segment adjusted EBITDA


1,972



3,163



3,846



7,016













Midstream Segment












Segment income from operations


1,275



1,201



2,521



2,414

Add: Depreciation and amortization


345



331



688



648

Midstream segment adjusted EBITDA


1,620



1,532



3,209



3,062













Subtotal


3,592



4,695



7,055



10,078

Corporate


(223)



(183)



(451)



(367)

Add: Depreciation and amortization


23



19



47



38

Adjusted EBITDA

$

3,392


$

4,531


$

6,651


$

9,749













Refining & Marketing (R&M)

Segment adjusted EBITDA was $2.0 billion in the second quarter of 2024, versus $3.2 billion for the second quarter of 2023. R&M segment adjusted EBITDA was $7.07 per barrel for the second quarter of 2024, versus $11.88 per barrel for the second quarter of 2023. Segment adjusted EBITDA excludes refining planned turnaround costs, which totaled $183 million in the second quarter of 2024 and $392 million in the second quarter of 2023. The decrease in segment adjusted EBITDA was driven primarily by lower market crack spreads.

R&M margin was $17.37 per barrel for the second quarter of 2024, versus $22.10 per barrel for the second quarter of 2023. Crude capacity utilization was approximately 97%, resulting in total throughput of 3.1 million barrels per day for the second quarter of 2024.

Refining operating costs per barrel were $4.97 for the second quarter of 2024, versus $5.15 for the second quarter of 2023.

Midstream

Segment adjusted EBITDA was $1.6 billion in the second quarter of 2024, versus $1.5 billion for the second quarter of 2023. The results were primarily driven by higher rates, higher volumes, and contributions from recently acquired assets.

Corporate and Items Not Allocated

Corporate expenses totaled $223 million in the second quarter of 2024, compared with $183 million in the second quarter of 2023. The variance was primarily driven by $30 million of expense related to the decommissioning of non-operating assets.

Financial Position, Liquidity, and Return of Capital

As of June 30, 2024, MPC had $8.5 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility.

In the second quarter, the company returned approximately $3.2 billion of capital to shareholders through $2.9 billion of share repurchases and $290 million of dividends. Through July 31, the company repurchased an additional $0.9 billion of company shares. The company currently has $5.8 billion available under its share repurchase authorizations.

Strategic and Operations Update

MPC's 2024 capital spending plan includes high return investments at its Los Angeles and Galveston Bay refineries. In addition to these multi-year investments, the company is executing on shorter-term projects that offer high returns targeted at enhancing refinery yields, improving energy efficiency, and lowering costs.

MPLX is advancing growth projects anchored in the Permian and Marcellus basins. MPLX's integrated footprints in these basins have positioned the partnership with a steady source of opportunities to expand its value chains. In the Utica, gathering and processing volumes continue to grow, inclusive of the assets acquired in March 2024.

In the third quarter, Preakness ll, a 200 million cubic feet per day (mmcf/d) processing plant located in the Permian, began operations. MPLX also acquired an additional 20% interest in the BANGL natural gas liquids pipeline. MPLX and its partners in the Whistler Pipeline joint venture announced the FID on the Blackcomb natural gas pipeline, connecting the Permian to domestic and export markets along the Gulf Coast.

Third -Quarter 2024 Outlook

Refining & Marketing Segment:



Refining operating costs per barrel(a)

$

5.35

Distribution costs (in millions)

$

1,550

Refining planned turnaround costs (in millions)

$

330

Depreciation and amortization (in millions)

$

485




Refinery throughputs (mbpd):



    Crude oil refined


2,645

    Other charge and blendstocks


200

        Total


2,845




Corporate (includes $20 million of D&A)

$

200


(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 Finance and Investor Relations
Brian Worthington, Director, Investor Relations
Kenan Kinsey, Supervisor, Investor Relations

Media Contact: (419) 421-3577
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, capital expenditure plans, operating cost reduction objectives, and environmental, social and governance ("ESG") plans and goals, including those related to greenhouse gas emissions and intensity reduction targets, freshwater withdrawal intensity reduction targets, diversity, equity 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 or are required to be disclosed in our filings with the Securities Exchange Commission (SEC). 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," "endeavor", "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "progress", "project," "prospective," "pursue," "seek," "should," "strategy," "strive", "target," "trends", "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: political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas, natural gas liquids ("NGLs"), or renewables, or taxation; volatility in and degradation of general economic, market, industry or business conditions, including as a result of pandemics, other infectious disease outbreaks, natural hazards, extreme weather events, regional conflicts such as hostilities in the Middle East and in Ukraine, inflation or rising interest rates; the regional, national and worldwide demand for refined products and renewables 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 adequacy of capital resources and liquidity and timing and amounts of free cash flow necessary to execute our business plans, effect future share repurchases and to maintain or grow our dividend; the success or timing of completion of ongoing or anticipated projects; the timing and ability to obtain necessary regulatory approvals and permits and to satisfy other conditions necessary to complete planned projects or to consummate planned transactions within the expected timeframes 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; the inability or failure of our joint venture partners to fund their share of operations and development activities; the financing and distribution decisions of joint ventures we do not control; our ability to successfully implement our sustainable energy strategy and principles and to achieve our ESG plans and goals within the expected timeframes if at all; changes in government incentives for emission-reduction products and technologies; the outcome of research and development efforts to create future technologies necessary to achieve our ESG plans and goals; our ability to scale projects and technologies on a commercially competitive basis; changes in regional and global economic growth rates and consumer preferences, including consumer support for emission-reduction products and technology; industrial incidents 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 imposition of windfall profit taxes or maximum refining margin penalties on companies operating within the energy industry in California or other jurisdictions; 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" and "Disclosures Regarding Forward-Looking Statements" in MPC's and MPLX's Annual Reports on Form 10-K for the year ended Dec. 31, 2023, 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)


2024



2023



2024



2023

Revenues and other income:












   Sales and other operating revenues

$

37,914


$

36,343


$

70,620


$

71,207

 Income from equity method investments


373



199



577



332

 Net gain (loss) on disposal of assets


(1)



13



19



16

   Other income


76



269



357



346

       Total revenues and other income


38,362



36,824



71,573



71,901

Costs and expenses:












   Cost of revenues (excludes items below)


33,945



31,762



63,538



61,056

   Depreciation and amortization


838



834



1,665



1,634

   Selling, general and administrative expenses


823



704



1,602



1,395

   Other taxes


234



219



462



450

       Total costs and expenses


35,840



33,519



67,267



64,535

Income from operations


2,522



3,305



4,306



7,366

Net interest and other financial costs


194



142



373



296

Income before income taxes


2,328



3,163



3,933



7,070

Provision for income taxes


373



583



666



1,406

Net income


1,955



2,580



3,267



5,664

Less net income attributable to:












Redeemable noncontrolling interest


5



23



15



46

Noncontrolling interests


435



331



800



668

Net income attributable to MPC

$

1,515


$

2,226


$

2,452


$

4,950













Per share data












Basic:












Net income attributable to MPC per share

$

4.34


$

5.34


$

6.90


$

11.49

  Weighted average shares outstanding (in millions)


349



417



355



430













Diluted:












Net income attributable to MPC per share

$

4.33


$

5.32


$

6.88


$

11.44

Weighted average shares outstanding (in millions)


350



419



356



432













Income Summary (unaudited)



Three Months Ended 

June 30,



Six Months Ended 

June 30,

(In millions)


2024



2023



2024



2023

Refining & Marketing

$

1,319


$

2,287


$

2,085


$

5,319

Midstream


1,275



1,201



2,521



2,414

Corporate


(223)



(183)



(451)



(367)

Income from operations before items not allocated to segments


2,371



3,305



4,155



7,366

Items not allocated to segments:












Gain on sale of assets


151





151



Income from operations

$

2,522


$

3,305


$

4,306


$

7,366













Capital Expenditures and Investments (unaudited)



Three Months Ended 

June 30,



Six Months Ended 

June 30,

(In millions)


2024



2023



2024



2023

Refining & Marketing

$

304


$

243


$

595


$

664

Midstream


241



273



568



514

Corporate(a)


24



46



42



74

Total

$

569


$

562


$

1,205


$

1,252



(a)

Includes capitalized interest of $12 million, $13 million, $24 million and $34 million for the second quarter 2024, the second quarter 2023, the first six months of 2024 and the first six months of 2023, respectively.

Refining & Marketing Operating Statistics (unaudited)

Dollar per Barrel of Net Refinery Throughput


Three Months Ended 

June 30,



Six Months Ended 

June 30,



2024



2023



2024



2023

Refining & Marketing margin(a)

$

17.37


$

22.10


$

18.12


$

24.08

Less:












Refining operating costs(b)


4.97



5.15



5.51



5.41

Distribution costs(c)


5.42



5.15



5.66



5.21

Other (income) loss(d)


(0.09)



(0.08)



(0.42)



0.01

Refining & Marketing segment adjusted EBITDA


7.07



11.88



7.37



13.45

Less:












Refining planned turnaround costs


0.66



1.47



1.59



1.43

Depreciation and amortization


1.68



1.82



1.78



1.82

Refining & Marketing income from operations

$

4.73


$

8.59


$

4.00


$

10.20













Fees paid to MPLX included in distribution costs above

$

3.55


$

3.55


$

3.75


$

3.61



(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 or loss from equity method investments, net gain or loss on disposal of assets and other income or loss.

 

Refining & Marketing - Supplemental Operating Data


Three Months Ended 

June 30,



Six Months Ended 

June 30,



2024



2023



2024



2023

Refining & Marketing refined product sales volume (mbpd)(a)


3,742



3,581



3,510



3,467

Crude oil refining capacity (mbpcd)(b)


2,950



2,898



2,950



2,898

Crude oil capacity utilization (percent)(b)


97



93



90



91













Refinery throughputs (mbpd):












    Crude oil refined


2,867



2,698



2,647



2,632

    Other charge and blendstocks


198



227



217



249

Net refinery throughputs


3,065



2,925



2,864



2,881













Sour crude oil throughput (percent)


45



46



45



44

Sweet crude oil throughput (percent)


55



54



55



56













Refined product yields (mbpd):












    Gasoline


1,527



1,497



1,448



1,503

    Distillates


1,144



1,033



1,043



1,029

    Propane


68



67



66



67

    NGLs and petrochemicals


237



227



202



192

    Heavy fuel oil


46



61



58



46

    Asphalt


80



83



81



83

        Total


3,102



2,968



2,898



2,920

Inter-region refinery transfers excluded from throughput and yields above (mbpd)


90



43



82



44



(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.

 

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 and refining depreciation and amortization expense.

Gulf Coast Region


Three Months Ended 

June 30,



Six Months Ended 

June 30,



2024



2023



2024



2023

Dollar per barrel of refinery throughput:












Refining & Marketing margin

$

15.86


$

19.24


$

17.22


$

22.36

Refining operating costs


3.73



3.52



4.29



3.99

Refining planned turnaround costs


0.28



0.32



1.80



1.37

Refining depreciation and amortization


1.36



1.42



1.45



1.43













Refinery throughputs (mbpd):












    Crude oil refined


1,192



1,131



1,087



1,044

    Other charge and blendstocks


162



186



172



191

Gross refinery throughputs


1,354



1,317



1,259



1,235













Sour crude oil throughput (percent)


55



54



56



48

Sweet crude oil throughput (percent)


45



46



44



52













Refined product yields (mbpd):












    Gasoline


639



661



604



642

    Distillates


512



468



456



435

    Propane


39



39



37



38

    NGLs and petrochemicals


139



131



125



113

    Heavy fuel oil


40



33



48



18

    Asphalt


15



19



15



19

        Total


1,384



1,351



1,285



1,265

Inter-region refinery transfers included in throughput and
yields above (mbpd)


51



27



46



22













Mid-Continent Region


Three Months Ended 

June 30,



Six Months Ended 

June 30,



2024



2023



2024



2023

Dollar per barrel of refinery throughput:












Refining & Marketing margin

$

17.58


$

23.94


$

18.14


$

25.36

Refining operating costs


4.86



5.19



5.15



5.23

Refining planned turnaround costs


1.19



1.75



1.16



1.11

Refining depreciation and amortization


1.46



1.56



1.55



1.56













Refinery throughputs (mbpd):












    Crude oil refined


1,157



1,111



1,094



1,111

    Other charge and blendstocks


81



61



79



68

Gross refinery throughputs


1,238



1,172



1,173



1,179













Sour crude oil throughput (percent)


26



27



27



27

Sweet crude oil throughput (percent)


74



73



73



73













Refined product yields (mbpd):












    Gasoline


638



607



613



614

    Distillates


440



410



414



423

    Propane


21



20



20



20

    NGLs and petrochemicals


63



60



49



49

    Heavy fuel oil


14



16



15



13

    Asphalt


64



63



65



64

        Total


1,240



1,176



1,176



1,183

Inter-region refinery transfers included in throughput and
yields above (mbpd)


12



8



13



7













West Coast Region


Three Months Ended 

June 30,



Six Months Ended 

June 30,



2024



2023



2024



2023

Dollar per barrel of refinery throughput:












Refining & Marketing margin

$

20.54


$

25.42


$

20.31


$

25.28

Refining operating costs


7.40



9.10



8.46



8.78

Refining planned turnaround costs


0.26



3.80



1.84



2.21

Refining depreciation and amortization


1.30



1.48



1.41



1.42













Refinery throughputs (mbpd):












    Crude oil refined


518



456



466



477

    Other charge and blendstocks


45



23



48



34

Gross refinery throughputs


563



479



514



511













Sour crude oil throughput (percent)


63



72



64



72

Sweet crude oil throughput (percent)


37



28



36



28













Refined product yields (mbpd):












    Gasoline


280



251



262



265

    Distillates


207



163



185



177

    Propane


8



8



9



9

    NGLs and petrochemicals


38



41



33



38

    Heavy fuel oil


34



20



29



27

    Asphalt


1



1



1



        Total


568



484



519



516

Inter-region refinery transfers included in throughput and
yields above (mbpd)


27



8



23



15













Midstream Operating Statistics (unaudited)



Three Months Ended 

June 30,



Six Months Ended 

June 30,



2024



2023



2024



2023

Pipeline throughputs (mbpd)(a)


6,129



6,032



5,759



5,865

Terminal throughputs (mbpd)


3,197



3,180



3,063



3,136

Gathering system throughputs (million cubic feet per day)(b)


6,614



6,159



6,420



6,259

Natural gas processed (million cubic feet per day)(b)


9,568



8,934



9,470



8,771

C2 (ethane) + NGLs fractionated (mbpd)(b)


665



583



649



588



(a)

Includes common-carrier pipelines and private pipelines contributed to MPLX. Excludes equity method affiliate pipeline volumes.

(b)

Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.

 

Select Financial Data (unaudited)



June 30
2024



March 31
2024

(In millions)






Cash and cash equivalents

$

4,441


$

3,175

Short-term investments


4,058



4,399

Total consolidated debt(a)


28,937



27,289

MPC debt


6,865



6,845

MPLX debt


22,072



20,444

Redeemable noncontrolling interest


202



561

Equity


27,886



29,210

Shares outstanding


341



355



(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. The non-GAAP financial measures we use are as follows:

Adjusted Net Income Attributable to MPC and Adjusted Diluted Income Per Share

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. Adjusted diluted income 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.

We believe the use of adjusted net income attributable to MPC and adjusted diluted income per share provides us and our investors with important measures of our ongoing financial performance to better assess our underlying business results and trends. Adjusted net income attributable to MPC or adjusted diluted income per share should not be considered as a substitute for, or superior to net income attributable to MPC, diluted net income per share or any other measure of financial performance presented in accordance with GAAP. Adjusted net income attributable to MPC and adjusted diluted income per share may not be comparable to similarly titled measures reported by other companies.

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)


2024



2023



2024



2023

Net income attributable to MPC

$

1,515


$

2,226


$

2,452


$

4,950

Pre-tax adjustments:












Gain on sale of assets


(151)





(151)



Tax impact of adjustments(a)


23





23



Non-controlling interest impact of adjustments


55





55



Adjusted net income attributable to MPC

$

1,442


$

2,226


$

2,379


$

4,950













Diluted income per share

$

4.33


$

5.32


$

6.88


$

11.44

Adjusted diluted income per share

$

4.12


$

5.32


$

6.67


$

11.44



(a)

Income taxes for the three and six months ended June 30, 2024 were calculated by applying a federal statutory rate and a blended state tax rate to the pre-tax adjustments after non-controlling interest. The corresponding adjustments to reported income taxes are shown in the table above.

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 is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. 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 (unaudited)



Three Months Ended 

June 30,



Six Months Ended 

June 30,

(In millions)


2024



2023



2024



2023

Net income attributable to MPC

$

1,515


$

2,226


$

2,452


$

4,950

Net income attributable to noncontrolling interests


440



354



815



714

Provision for income taxes


373



583



666



1,406

Net interest and other financial costs


194



142



373



296

Depreciation and amortization


838



834



1,665



1,634

Refining planned turnaround costs


183



392



831



749

Gain on sale of assets


(151)





(151)



Adjusted EBITDA

$

3,392


$

4,531


$

6,651


$

9,749













Refining & Marketing Margin

Refining & Marketing margin is defined as sales revenue less cost of refinery inputs and purchased products. We use and believe our investors use this non-GAAP financial measure to evaluate our Refining & Marketing segment's operating and financial performance as it is the most comparable measure to the industry's market reference product margins. This measure should not be considered a substitute for, or superior to, Refining & Marketing gross margin or other measures of financial performance prepared in accordance with GAAP, and our calculation thereof may not be comparable to similarly titled measures reported by other companies.

Reconciliation of Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Gross Margin and Refining & Marketing Margin (unaudited)



Three Months Ended 

June 30,



Six Months Ended 

June 30,

(In millions)


2024



2023



2024



2023

Refining & Marketing segment adjusted EBITDA

$

1,972


$

3,163


$

3,846


$

7,016

Plus (Less):












Depreciation and amortization


(470)



(484)



(930)



(948)

Refining planned turnaround costs


(183)



(392)



(831)



(749)

Selling, general and administrative expenses


670



596



1,299



1,188

(Income) loss from equity method investments


(19)



(17)



(42)



19

 Net gain on disposal of assets








(3)

Other income


(49)



(241)



(293)



(292)

Refining & Marketing gross margin


1,921



2,625



3,049



6,231

Plus (Less):












Operating expenses (excluding depreciation and amortization)


2,633



2,748



5,781



5,493

Depreciation and amortization


470



484



930



948

Gross margin excluded from and other income included in Refining & Marketing margin(a)


(106)



95



(179)



28

Other taxes included in Refining & Marketing margin


(73)



(69)



(132)



(140)

Refining & Marketing margin

$

4,845


$

5,883


$

9,449


$

12,560













Refining & Marketing margin by region:












Gulf Coast

$

1,882


$

2,259


$

3,802


$

4,910

Mid-Continent


1,961



2,535



3,831



5,379

West Coast


1,002



1,089



1,816



2,271

Refining & Marketing margin

$

4,845


$

5,883


$

9,449


$

12,560



(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.

 

Cision View original content:https://www.prnewswire.com/news-releases/marathon-petroleum-corp-reports-second-quarter-2024-results-302215354.html

SOURCE Marathon Petroleum Corporation