On November 5, 2024, Marathon Petroleum Corp (MPC, Financial) released its 8-K filing, detailing its financial performance for the third quarter of 2024. Marathon Petroleum, an independent refiner with 13 refineries across the United States, reported a significant decline in net income compared to the previous year. The company, which also operates midstream assets through MPLX, is navigating a challenging market environment.
Performance Overview and Challenges
Marathon Petroleum Corp (MPC, Financial) reported a net income of $622 million, or $1.87 per diluted share, for the third quarter of 2024. This marks a substantial decrease from the $3.3 billion, or $8.28 per diluted share, reported in the same quarter of 2023. The adjusted EBITDA for the quarter was $2.5 billion, down from $5.7 billion in the previous year. The decline in earnings is primarily attributed to lower market crack spreads, which significantly impacted the Refining & Marketing segment.
Financial Achievements and Strategic Initiatives
Despite the challenges, Marathon Petroleum Corp (MPC, Financial) achieved several financial milestones. The company returned $3.0 billion to shareholders through share repurchases and dividends, demonstrating a strong commitment to capital return. Additionally, MPC announced a $5 billion share repurchase authorization and a 10% increase in its quarterly dividend, reflecting confidence in its financial stability and future prospects.
Income Statement and Key Metrics
The company's total revenues and other income for the third quarter of 2024 were $35.4 billion, compared to $41.6 billion in the same period last year. The cost of revenues decreased slightly to $32.1 billion from $34.9 billion. The Refining & Marketing segment's adjusted EBITDA was $1.1 billion, a sharp decline from $4.4 billion in the previous year, primarily due to reduced market crack spreads.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income Attributable to MPC | $622 million | $3.3 billion |
| Adjusted EBITDA | $2.5 billion | $5.7 billion |
| Total Revenues and Other Income | $35.4 billion | $41.6 billion |
Analysis of Financial Position and Liquidity
As of September 30, 2024, Marathon Petroleum Corp (MPC, Financial) held $5.1 billion in cash, cash equivalents, and short-term investments. The company also repaid $750 million of senior notes that matured in September 2024. The robust liquidity position supports MPC's strategic initiatives, including high-return investments at its Los Angeles and Galveston Bay refineries.
Strategic and Operational Updates
MPC is advancing growth projects in the Permian and Marcellus basins through MPLX, its midstream partnership. These projects are expected to enhance gas processing capacity and provide steady growth opportunities. The company's strategic focus on high-return investments and operational efficiency is aimed at strengthening its market position.
“We remain committed to peer-leading operational excellence, commercial performance, and profitability per barrel in each of the regions in which we operate,” said President and Chief Executive Officer Maryann Mannen.
Marathon Petroleum Corp (MPC, Financial) continues to navigate a challenging market environment with strategic investments and a focus on shareholder returns. The company's financial performance, while impacted by market conditions, reflects its resilience and commitment to long-term growth.
Explore the complete 8-K earnings release (here) from Marathon Petroleum Corp for further details.
