Investment Recommendations - The industry suggests taking a breather on ETH Grayscale mini trust, despite feeling early on it [1] - The industry suggests selling upside calls [2] Market Observations - United Randall hit an all-time high then closed lower, which is considered a negative sign [1] - The industry is a seller of Google [2] Final Trades - Marathon Petroleum is mentioned as a final trade [2]

Group 1 - The core viewpoint of the articles indicates that the U.S. oil and gas industry is entering a merger and acquisition (M&A) boom in 2024, with a projected total M&A value of $206.6 billion, representing a 331% year-on-year increase [1] - The number of leading publicly listed exploration and production (E&P) companies in the U.S. has decreased from 50 to 40, yet these 40 companies contribute approximately 41% of the nation's oil and gas production, highlighting a trend of "the strong getting stronger" [1] - In 2024, 42% of the M&A budget will be allocated to undeveloped reserves, a significant increase from 18% in 2023, indicating a strategic shift towards securing high-quality drilling locations for long-term production potential [1] Group 2 - The exploration and development costs have decreased by 7% year-on-year, despite the ongoing M&A activity, and the industry's reserve replacement rate remains above 100%, demonstrating the effectiveness of the new model of achieving reserve growth through M&A while reducing traditional exploration investments [2] - Following the M&A boom, U.S. oil and gas companies are focusing on addressing various uncertainties in the macro environment, with operational efficiency and capital discipline becoming critical for success [2] - The M&A activity is expected to slow significantly by the second quarter of 2025 due to the scarcity of quality targets, forcing buyers to diversify into non-core areas [2]

Core Viewpoint - The Zacks Oil and Gas - Refining & Marketing industry is evolving to balance reliable fossil fuel output with investments in cleaner, lower-carbon solutions, driven by government incentives and corporate demand, while U.S. refiners are increasing exports to capture margins and diversify revenue streams [1][3][4]. Industry Overview - The industry includes companies that sell refined petroleum products and non-energy materials, operating terminals, storage facilities, and transportation services. Refining margins are volatile and influenced by various factors including inventory levels, demand, and capacity utilization [2]. Trends Defining the Future - **Growing Role of Low-Carbon Solutions**: Refiners are investing in renewable diesel and sustainable aviation fuel, supported by government incentives and corporate demand, which positions them for long-term relevance in a decarbonizing economy [3]. - **Advantaged Export Opportunities**: U.S. refiners are leveraging strong international demand, particularly from Latin America and Europe, to export refined products, enhancing profitability and providing a hedge against domestic market fluctuations [4]. - **Margin Pressure from Volatile Prices**: The industry faces risks from fluctuating crude oil prices and inflationary cost pressures, which could impact earnings stability and shareholder returns [5]. Industry Outlook - The Zacks Oil and Gas - Refining & Marketing industry holds a Zacks Industry Rank of 56, placing it in the top 23% of 246 Zacks industries, indicating strong near-term prospects [6][7]. Performance Comparison - Over the past year, the industry has underperformed compared to the broader Zacks Oil - Energy Sector and the S&P 500, with a decline of 10.1% versus a decrease of 0.6% for the sector and a gain of 15.9% for the S&P 500 [9]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 4.24X, significantly lower than the S&P 500's 17.60X and the sector's 4.92X, indicating a potential undervaluation [12]. Stocks in Focus - **Par Pacific Holdings**: Operates an integrated energy platform with a refining capacity of 219,000 barrels per day and a market cap of $1.5 billion, showing a projected earnings growth of 394.6% for 2025 [15][16]. - **Galp Energia**: A Portuguese company with a market cap of $13.1 billion, producing over 100,000 barrels of oil equivalent per day, and a four-quarter average earnings surprise of 47.2% [18][19]. - **Marathon Petroleum**: A leading independent refiner with a market cap of $50 billion, known for strong cash flow generation and shareholder returns, with a recent earnings estimate increase of 8.5% for 2025 [21][22]. - **Phillips 66**: One of the largest independent refiners with nearly 2 million barrels per day of refining capacity, expected EPS growth rate of 15.5% over three to five years [24][25].

Core Viewpoint - Madison Pacific Properties Inc. reported strong financial results for the first half of 2025, showing significant growth in net income and operational performance compared to the previous year [3]. Financial Performance - The company reported a net income of $22.4 million for the six months ended June 30, 2025, compared to $13.6 million for the same period in 2024, reflecting a year-over-year increase of 64.7% [3]. - Cash flows from operating activities before changes in non-cash operating balances were $6.0 million, slightly down from $6.3 million in the previous year [3]. - Earnings per share increased to $0.30 from $0.23 year-over-year [3]. - The net gain on fair value adjustments for investment properties was approximately $21.9 million, up from $9.7 million in the prior year [3]. Investment Properties - As of June 30, 2025, the company owns approximately $741 million in investment properties, an increase from $724 million as of December 31, 2024 [4]. - The investment portfolio consists of 54 properties with around 2.0 million rentable square feet of industrial and commercial space, and a 50% interest in eight multi-family rental properties totaling 239 units [5]. - The occupancy rates are high, with 97.95% of industrial and commercial space leased and 99.16% of multi-family residential properties leased [5]. Leadership Changes - Dino Di Marco will be appointed as President & CEO effective September 1, 2025, bringing extensive experience from his previous role as Chief Financial Officer [7]. - John DeLucchi will continue as Chairman of the Board, and Robert Pringle has been appointed as a new director, contributing his extensive background in banking and leadership [9]. Dividend Announcement - The company announced a dividend of $0.0525 per share on Class B voting common shares and Class C non-voting shares, payable on September 3, 2025, to shareholders of record on August 25, 2025 [10].

Core Insights - Marathon Petroleum Corporation (MPC) reported second-quarter adjusted earnings per share of $3.96, exceeding the Zacks Consensus Estimate of $3.22, primarily due to an 11% year-over-year decline in costs and expenses [1] - However, the adjusted profit decreased from $4.12 in the previous year, mainly due to lower-than-expected contributions from the Midstream segment, which missed the consensus estimate by 1.8% [1] Financial Performance - MPC's revenues for the second quarter were $34.1 billion, surpassing the Zacks Consensus Estimate of $31 billion but reflecting an 11.1% year-over-year decline due to decreased sales and lower income from equity method investments [2] - The company declared a cash dividend of 91 cents per share, to be distributed on September 10, 2025, to shareholders on record as of August 20, 2025 [2] - In Q2, MPC distributed approximately $1 billion to shareholders and had $6 billion remaining under its authorized share repurchase programs as of June 30, 2025 [3] Segment Analysis - The Refining & Marketing segment reported adjusted EBITDA of $1.9 billion, down about 7% from $2 billion a year ago, attributed to higher planned turnaround costs and increased refining operating costs per barrel [4] - The refining margin increased to $17.58 per barrel, slightly up from $17.53 a year ago, and exceeded the consensus estimate by 13.9% [4] - Midstream segment adjusted EBITDA was $1.6 billion, up 1.3% from the previous year, driven by higher rates and throughputs from recent acquisitions, though partially offset by increased operating expenses [5] Expense and Capital Expenditure - Total expenses for the second quarter were $31.9 billion, down from $35.8 billion in the same quarter last year [6] - Capital expenditures amounted to $1.1 billion, with 32.6% allocated to Refining & Marketing and 64.9% to the Midstream segment, compared to $569 million in the prior year [6] Debt and Cash Position - As of June 30, 2025, MPC had cash and cash equivalents of $1.7 billion and total debt of $28.7 billion, resulting in a debt-to-capitalization ratio of 53.6% [7][9] Q3 Guidance - For Q3 2025, MPC anticipates refining operating costs of $5.70 per barrel and total refinery throughputs of 2,940 thousand barrels per day, with a utilization rate of 92% [10]

Group 1 - Marathon Petroleum (NYSE: MPC) has experienced a volatile year with shares trading in a $60 range, yet the stock price remains similar to a year ago [1] - The company has faced a challenging refining macro environment, which has shown signs of recovery [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories for achieving outsized returns with a favorable risk/reward profile [1]

[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) Marathon Petroleum Corporation filed its Q2 2025 Form 10-Q, identifying as a large accelerated filer with 304 million common shares outstanding - MPC filed Quarterly Report on Form 10-Q for period ended June 30, 2025, as a large accelerated filer, not a shell company[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) Common Stock Registration | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value $.01 | MPC | New York Stock Exchange | - As of July 31, 2025, **304,020,309 shares** of common stock were outstanding[4](index=4&type=chunk) [Table of Contents](index=2&type=section&id=Table%20of%20Contents) This section provides an organized listing of all major sections and subsections within the report for easy navigation [Glossary of Terms](index=3&type=section&id=Glossary%20of%20Terms) The report includes a glossary defining company and industry-specific terms and abbreviations for clarity - Glossary defines terms and abbreviations such as ANS, ASU, barrel, CARB, CARBOB, CBOB, EBITDA, EPA, FASB, GAAP, JV, LIFO, mbpd, MEH, MMBtu, MPLX, NGL, NYMEX, RFS2, RIN, SEC, ULSD, USGC, VIE, and WTI[8](index=8&type=chunk)[9](index=9&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Marathon Petroleum Corporation, including statements of income, comprehensive income, balance sheets, cash flows, and equity, along with detailed notes explaining the company's business, accounting policies, segment information, and recent transactions [Consolidated Statements of Income (Unaudited)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) This table presents the unaudited consolidated statements of income, detailing revenues, costs, income from operations, net income, and earnings per share for the three and six months ended June 30, 2025 and 2024 | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales and other operating revenues | $33,799 | $37,914 | $65,316 | $70,620 | | Total revenues and other income | $34,101 | $38,362 | $65,951 | $71,573 | | Total costs and expenses | $31,904 | $35,840 | $63,067 | $67,267 | | Income from operations | $2,197 | $2,522 | $2,884 | $4,306 | | Net income attributable to MPC | $1,216 | $1,515 | $1,142 | $2,452 | | Basic EPS | $3.96 | $4.34 | $3.69 | $6.90 | | Diluted EPS | $3.96 | $4.33 | $3.68 | $6.88 | [Consolidated Statements of Comprehensive Income (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This table presents the unaudited consolidated statements of comprehensive income, showing net income, other comprehensive income (loss), and comprehensive income attributable to MPC | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $1,610 | $1,955 | $1,956 | $3,267 | | Other comprehensive income (loss) | $1 | $(9) | $6 | $(21) | | Comprehensive income attributable to MPC | $1,217 | $1,506 | $1,148 | $2,431 | [Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) This table presents the unaudited consolidated balance sheets, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total current assets | $23,728 | $24,447 | | Total assets | $78,484 | $78,858 | | Total current liabilities | $19,255 | $20,827 | | Total liabilities | $55,220 | $54,352 | | Total MPC stockholders' equity | $16,624 | $17,745 | | Total equity | $23,264 | $24,303 | | Total liabilities, redeemable noncontrolling interest and equity | $78,484 | $78,858 | [Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This table presents the unaudited consolidated statements of cash flows, detailing net cash from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | (Millions of dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $2,575 | $4,774 | | Net cash used in investing activities | $(1,897) | $(807) | | Net cash used in financing activities | $(2,215) | $(4,970) | | Net change in cash, cash equivalents and restricted cash | $(1,537) | $(1,003) | | Cash, cash equivalents and restricted cash at end of period | $1,674 | $4,443 | [Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Equity%20and%20Redeemable%20Noncontrolling%20Interest%20(Unaudited)) This section details changes in common stock, treasury stock, additional paid-in capital, retained earnings, accumulated other comprehensive income (loss), noncontrolling interests, and redeemable noncontrolling interest for the six months ended June 30, 2025 and 2024 - The statement details changes in common stock, treasury stock, additional paid-in capital, retained earnings, accumulated other comprehensive income (loss), noncontrolling interests, and redeemable noncontrolling interest for the six months ended June 30, 2025 and 2024[22](index=22&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [1. Description of Business and Basis of Presentation](index=10&type=section&id=1.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) Marathon Petroleum Corporation is an integrated downstream and midstream energy company with refining, marketing, and renewable diesel operations, primarily conducting midstream activities through MPLX. The interim financial statements are unaudited and prepared in accordance with SEC rules, consolidating majority-owned subsidiaries including MPLX - MPC operates one of the nation's largest refining systems, selling refined products domestically and internationally, with midstream operations primarily through MPLX[23](index=23&type=chunk) - The company produces and markets renewable diesel in the United States, establishing a dedicated Renewable Diesel segment in Q4 2024[23](index=23&type=chunk)[28](index=28&type=chunk) - Interim consolidated financial statements are unaudited and prepared in accordance with SEC rules, consolidating majority-owned, controlled subsidiaries, including MPLX, with noncontrolling interest recorded for public ownership[25](index=25&type=chunk)[27](index=27&type=chunk) [2. Accounting Standards and Disclosure Rules](index=10&type=section&id=2.%20Accounting%20Standards%20and%20Disclosure%20Rules) The company is evaluating the impact of new accounting standards, ASU 2024-03 on expense disaggregation and ASU 2023-09 on income tax disclosures, both effective in future fiscal years - ASU 2024-03, effective for fiscal years beginning after December 15, 2026, requires more detailed disaggregation of income statement expenses, with the company evaluating its impact[29](index=29&type=chunk) - ASU 2023-09, effective for fiscal years beginning after December 15, 2024, updates income tax disclosure requirements for consistent categories and greater disaggregation, resulting in additional disclosure[30](index=30&type=chunk) [3. Master Limited Partnership](index=11&type=section&id=3.%20Master%20Limited%20Partnership) MPC controls MPLX, owning approximately **64%** of its common units as of June 30, 2025; MPLX repurchased **4 million** common units for **$200 million** in H1 2025, with **$320 million** remaining under authorization, and all Series A preferred units converted to common units in February 2025 - MPC owns the general partner and approximately **64%** of the outstanding MPLX common units as of June 30, 2025, maintaining control[31](index=31&type=chunk) MPLX Unit Repurchase Program | (In millions, except per unit data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Number of common units repurchased | 2 | 2 | 4 | 4 | | Cash paid for common units repurchased | $100 | $75 | $200 | $150 | | Average cost per unit | $50.31 | $41.10 | $51.38 | $40.56 | - As of June 30, 2025, MPLX had approximately **$320 million** remaining under its unit repurchase authorization - MPLX exercised its right to convert all remaining outstanding Series A preferred units into common units on February 11, 2025[35](index=35&type=chunk) [4. Acquisitions and Other Transactions](index=12&type=section&id=4.%20Acquisitions%20and%20Other%20Transactions) MPLX completed the Whiptail Midstream acquisition for **$237 million** in March 2025, expanded its San Juan basin assets, and acquired additional Utica basin JV interests for **$625 million** in March 2024, while its Whistler Pipeline JV voting interest was diluted in May 2024, resulting in a **$151 million** gain - On March 11, 2025, MPLX acquired gathering businesses from Whiptail Midstream, LLC for **$237 million** in cash, adding crude and natural gas gathering systems in the San Juan basin[39](index=39&type=chunk) - On May 29, 2024, MPLX's voting interest in the Whistler Pipeline JV was reduced from **37.5% to 30.4%** due to a transaction, resulting in a **$151 million** gain and a **$134 million** cash distribution[40](index=40&type=chunk) - On March 22, 2024, MPLX purchased additional ownership interest in existing joint ventures and gathering assets in the Utica basin for **$625 million**, increasing its interest in OGC to **73%** and **100%** in OCC, which is now consolidated[41](index=41&type=chunk)[42](index=42&type=chunk) [5. Variable Interest Entities](index=12&type=section&id=5.%20Variable%20Interest%20Entities) MPLX is consolidated as a Variable Interest Entity (VIE) due to MPC's control, with MPLX's creditors generally having no recourse to MPC's general credit, except for certain guarantees related to LOOP and LOCAP indebtedness - MPLX is a VIE controlled by MPC through its general partner interest, leading to consolidation and recording of noncontrolling interest for public ownership[43](index=43&type=chunk) - Creditors of MPLX generally do not have recourse to MPC's general credit, except for MPC's effective guarantees of certain indebtedness of LOOP LLC and LOCAP LLC[44](index=44&type=chunk) MPLX Balance Sheet Information (Consolidated) | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $1,386 | $1,519 | | Total Assets (selected) | $35,982 | $35,018 | | Total Liabilities (selected) | $22,604 | $22,531 | [6. Related Party Transactions](index=13&type=section&id=6.%20Related%20Party%20Transactions) The company engages in related party transactions, primarily sales of refined products and renewable feedstocks to equity affiliates, and purchases of utilities, transportation services, ethanol, and renewable diesel from them Related Party Transactions | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales to related parties | $326 | $227 | $646 | $498 | | Purchases from related parties | $707 | $574 | $1,412 | $1,154 | - Sales to related parties primarily consist of refined product and renewable feedstock sales to equity affiliates, while purchases include utilities, transportation services, ethanol, and renewable diesel from equity affiliates[47](index=47&type=chunk)[48](index=48&type=chunk) [7. Earnings Per Share](index=13&type=section&id=7.%20Earnings%20Per%20Share) Basic and diluted earnings per share are calculated using the two-class method due to participating securities; for Q2 2025, basic and diluted EPS were **$3.96**, down from **$4.34** and **$4.33** respectively in Q2 2024 - Basic earnings per share are computed by dividing net income attributable to MPC (less income allocated to participating securities) by the weighted average common shares outstanding, using the two-class method[49](index=49&type=chunk) Earnings Per Share (Attributable to MPC) | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic earnings per share | $3.96 | $4.34 | $3.69 | $6.90 | | Diluted earnings per share | $3.96 | $4.33 | $3.68 | $6.88 | | Weighted average common shares outstanding (basic) | 307 | 349 | 309 | 355 | | Weighted average common shares outstanding (diluted) | 307 | 350 | 310 | 356 | [8. Equity](index=14&type=section&id=8.%20Equity) MPC has **$6.03 billion** remaining under its share repurchase authorizations as of June 30, 2025, having repurchased **5 million** shares for **$692 million** in Q2 2025 and **12 million** shares for **$1.749 billion** in H1 2025 - As of June 30, 2025, **$6.03 billion** remained available for repurchase under MPC's share repurchase authorizations, which have no expiration date[51](index=51&type=chunk) MPC Share Repurchases | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Number of shares repurchased | 5 | 15 | 12 | 28 | | Cash paid for shares repurchased | $692 | $2,896 | $1,749 | $5,114 | | Average cost per share | $146.43 | $185.34 | $147.29 | $177.54 | [9. Segment Information](index=15&type=section&id=9.%20Segment%20Information) MPC operates in three reportable segments: Refining & Marketing, Midstream, and Renewable Diesel, with performance evaluated using adjusted EBITDA; total segment adjusted EBITDA decreased to **$3.512 billion** in Q2 2025 from **$3.615 billion** in Q2 2024 - MPC's three reportable segments are Refining & Marketing, Midstream, and Renewable Diesel, with performance evaluated by the CODM using segment adjusted EBITDA[54](index=54&type=chunk)[55](index=55&type=chunk) Segment Adjusted EBITDA for Reportable Segments | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Refining & Marketing | $1,890 | $2,022 | $2,379 | $4,008 | | Midstream | $1,641 | $1,620 | $3,361 | $3,209 | | Renewable Diesel | $(19) | $(27) | $(61) | $(117) | | Total reportable segments | $3,512 | $3,615 | $5,679 | $7,100 | Consolidated Sales and Other Operating Revenues by Segment | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Refining & Marketing | $31,828 | $36,163 | $61,285 | $67,137 | | Midstream | $1,340 | $1,260 | $2,781 | $2,481 | | Renewable Diesel | $631 | $491 | $1,250 | $1,002 | | Consolidated sales and other operating revenues | $33,799 | $37,914 | $65,316 | $70,620 | [10. Net Interest and Other Financial Costs](index=18&type=section&id=10.%20Net%20Interest%20and%20Other%20Financial%20Costs) Net interest and other financial costs increased to **$319 million** in Q2 2025 from **$194 million** in Q2 2024, primarily due to decreased interest income and discount amortization, and higher interest expense and non-service pension costs Net Interest and Other Financial Costs | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $(31) | $(105) | $(77) | $(206) | | Interest expense | $359 | $341 | $711 | $682 | | Net interest and other financial costs | $319 | $194 | $623 | $373 | - The increase in net interest and other financial costs was largely due to decreased interest income and discount amortization, primarily from the absence of short-term investments, and increases in interest expense and non-service pension costs[64](index=64&type=chunk) [11. Income Taxes](index=18&type=section&id=11.%20Income%20Taxes) The company recorded lower income tax provisions in Q2 2025 (**$268 million**) and H1 2025 (**$305 million**) compared to the prior year, primarily due to permanent tax benefits from noncontrolling interests, partially offset by state taxes, and is assessing the impact of the 'One Big Beautiful Bill Act' - Combined federal, state, and foreign income tax provision was **$268 million** for Q2 2025 (vs. **$373 million** in Q2 2024) and **$305 million** for H1 2025 (vs. **$666 million** in H1 2024), primarily lower due to permanent tax benefits related to noncontrolling interests[65](index=65&type=chunk)[66](index=66&type=chunk) - The 'One Big Beautiful Bill Act,' enacted July 4, 2025, includes provisions like permanent extension of certain Tax Cuts and Jobs Act provisions and **100%** bonus depreciation, which the company is currently assessing for its impact[67](index=67&type=chunk) [12. Inventories](index=19&type=section&id=12.%20Inventories) Total inventories increased to **$10.106 billion** at June 30, 2025, from **$9.568 billion** at December 31, 2024, with crude oil and other feedstocks and refined products being the largest components Inventories | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Crude oil and other feedstocks | $3,548 | $3,185 | | Refined products | $5,276 | $5,137 | | Materials and supplies | $1,282 | $1,246 | | Total | $10,106 | $9,568 | - Inventories are carried at the lower of cost or market value, with costs of crude oil, other feedstocks, and refined products aggregated for LIFO assessment[68](index=68&type=chunk) [13. Property, Plant and Equipment (PP&E)](index=19&type=section&id=13.%20Property%2C%20Plant%20and%20Equipment%20(PP%26E)) Net Property, Plant and Equipment (PP&E) decreased slightly to **$34.805 billion** at June 30, 2025, from **$35.028 billion** at December 31, 2024, with Midstream and Refining & Marketing segments holding the largest portions Property, Plant and Equipment (PP&E), Net | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Refining & Marketing | $13,794 | $13,950 | | Midstream | $19,883 | $19,899 | | Renewable Diesel | $605 | $638 | | Corporate | $523 | $541 | | Total Net PP&E | $34,805 | $35,028 | [14. Fair Value Measurements](index=19&type=section&id=14.%20Fair%20Value%20Measurements) The company measures certain assets and liabilities at fair value on a recurring basis, primarily commodity contracts and embedded derivatives, with Level 3 instruments valued using unobservable inputs like NGL prices and renewal probabilities - Fair value measurements are applied to recurring items like commodity contracts, with netting applied for derivative contracts with the same counterparty[70](index=70&type=chunk) Fair Value of Commodity Contracts (Net Carrying Value) | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Assets: Commodity contracts | $52 | $7 | | Liabilities: Commodity contracts | $0 | $0 | | Liabilities: Embedded derivatives in commodity contracts | $55 | $58 | - Level 3 instruments, specifically an embedded derivative liability for a natural gas purchase commitment, use significant unobservable inputs including interpolated/extrapolated NGL prices and a **100%** probability of renewal for the five-year term[73](index=73&type=chunk) [15. Derivatives](index=20&type=section&id=15.%20Derivatives) The company uses commodity derivatives to hedge price risk on inventories, refined product sales, crude oil acquisition, and other inputs, but does not designate them as accounting hedges; for H1 2025, the net loss from commodity derivative instruments was **$33 million**, an improvement from a **$123 million** loss in the prior year - MPC does not designate any commodity derivative instruments as hedges for accounting purposes, using them to hedge price risk on various items including inventories, refined product sales, and crude oil acquisition[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) Fair Value of Derivative Instruments (Gross Basis) | (Millions of dollars) | June 30, 2025 Assets | June 30, 2025 Liabilities | December 31, 2024 Assets | December 31, 2024 Liabilities | | :-------------------- | :------------------- | :------------------------ | :----------------------- | :-------------------------- | | Commodity derivatives (Other current assets/liabilities) | $389 | $379 | $139 | $144 | | Embedded derivatives (Other current liabilities/Deferred credits) | $0 | $55 | $0 | $58 | Effect of Commodity Derivative Instruments on Income Statement | (Millions of dollars) | Three Months Ended June 30, 2025 (Gain (Loss)) | Three Months Ended June 30, 2024 (Gain (Loss)) | Six Months Ended June 30, 2025 (Gain (Loss)) | Six Months Ended June 30, 2024 (Gain (Loss)) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Sales and other operating revenues | $0 | $(2) | $0 | $(2) | | Cost of revenues | $31 | $(46) | $(36) | $(120) | | Other income | $1 | $(1) | $3 | $(1) | | Total | $32 | $(49) | $(33) | $(123) | [16. Debt](index=22&type=section&id=16.%20Debt) Total debt increased to **$29.014 billion** at June 30, 2025, from **$27.797 billion** at December 31, 2024; MPC issued **$2.0 billion** in senior notes in February 2025 to replace maturing debt, while MPLX issued **$2.0 billion** in senior notes in March 2025 and repaid **$1.7 billion** in maturing notes Outstanding Borrowings | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | MPC Total Debt | $7,507 | $6,591 | | MPLX Total Debt | $21,507 | $21,206 | | Total Debt | $29,014 | $27,797 | | Total long-term debt due after one year | $26,835 | $24,432 | - MPC issued **$2.0 billion** in senior notes in February 2025 (due March 2030 and March 2035) to replace **$750 million** maturing notes and repay **$1.250 billion** maturing notes[85](index=85&type=chunk) - MPLX issued **$2.0 billion** in senior notes in March 2025 (due April 2035 and April 2055) and used proceeds to redeem **$1.7 billion** in senior notes due June 2025[86](index=86&type=chunk)[87](index=87&type=chunk) [17. Revenue](index=24&type=section&id=17.%20Revenue) Consolidated sales and other operating revenues decreased to **$33.799 billion** in Q2 2025 from **$37.914 billion** in Q2 2024, with the Refining & Marketing segment accounting for the largest portion of external revenues Revenues from External Customers by Segment and Product Line | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Refining & Marketing (Refined products) | $29,945 | $33,605 | $57,372 | $62,342 | | Refining & Marketing (Crude oil) | $1,419 | $2,099 | $2,984 | $3,887 | | Midstream (Refined products) | $472 | $393 | $1,002 | $766 | | Midstream (Services and other) | $868 | $867 | $1,779 | $1,715 | | Renewable Diesel (Refined products) | $629 | $489 | $1,244 | $999 | | Consolidated sales and other operating revenues | $33,799 | $37,914 | $65,316 | $70,620 | - The company does not disclose future performance obligations for contracts with an expected duration of one year or less, and as of June 30, 2025, no material future performance obligations exist[90](index=90&type=chunk) [18. Supplemental Cash Flow Information](index=24&type=section&id=18.%20Supplemental%20Cash%20Flow%20Information) Supplemental cash flow information includes interest paid, net income taxes paid, and non-cash investing activities such as asset contributions; total capital expenditures for H1 2025 were **$1.353 billion** Net Cash Provided by Operating Activities (Selected Items) | (Millions of dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Interest paid (net of amounts capitalized) | $590 | $602 | | Net income taxes paid | $119 | $191 | Reconciliation of Additions to PP&E to Total Capital Expenditures | (Millions of dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Additions to property, plant and equipment per cash flows | $1,358 | $1,072 | | Decrease in capital accruals | $(5) | $(46) | | Total capital expenditures | $1,353 | $1,026 | - Non-cash investing and financing activities for the six months ended June 30, 2025, included a **$115 million** contribution of assets by MPLX to a joint venture[92](index=92&type=chunk) [19. Other Current Liabilities](index=25&type=section&id=19.%20Other%20Current%20Liabilities) Other current liabilities increased to **$1.475 billion** at June 30, 2025, from **$1.155 billion** at December 31, 2024, primarily driven by a significant increase in environmental credits liability Components of Other Current Liabilities | (Millions of dollars) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Environmental credits liability | $694 | $422 | | Accrued interest payable | $369 | $314 | | Other current liabilities | $412 | $419 | | Total other current liabilities | $1,475 | $1,155 | [20. Accumulated Other Comprehensive Income (Loss)](index=25&type=section&id=20.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive loss improved to **$(108) million** at June 30, 2025, from **$(114) million** at December 31, 2024, primarily due to other comprehensive income before reclassifications and changes in pension and other benefits Changes in Accumulated Other Comprehensive Income (Loss) | (Millions of dollars) | Balance as of Dec 31, 2024 | Other comprehensive income (loss) | Balance as of June 30, 2025 | | :-------------------- | :------------------------- | :-------------------------------- | :-------------------------- | | Pension Benefits | $(235) | $11 | $(224) | | Other Benefits | $122 | $(6) | $116 | | Other | $(1) | $1 | $0 | | Total | $(114) | $6 | $(108) | - The improvement in accumulated other comprehensive income (loss) was driven by other comprehensive income before reclassifications, net of tax, and reclassifications related to amortization of prior service credit and actuarial loss[96](index=96&type=chunk) [21. Pension and Other Postretirement Benefits](index=26&type=section&id=21.%20Pension%20and%20Other%20Postretirement%20Benefits) Net periodic pension benefit cost increased to **$60 million** in Q2 2025 from **$40 million** in Q2 2024, and net periodic other benefit cost increased to **$8 million** from **$7 million**; the company made **$36 million** in contributions to funded pension plans in H1 2025 Net Periodic Benefit Costs | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net periodic pension benefit cost | $60 | $40 | $117 | $80 | | Net periodic other benefit cost | $8 | $7 | $16 | $15 | - During the first six months of 2025, the company contributed **$36 million** to its funded pension plans and made benefit payments of **$4 million** for unfunded pension plans and **$26 million** for other postretirement benefit plans[98](index=98&type=chunk) [22. Commitments and Contingencies](index=26&type=section&id=22.%20Commitments%20and%20Contingencies) The company is involved in various legal actions and environmental matters, including climate-related lawsuits and a pipeline trespass dispute, with accrued environmental remediation liabilities totaling **$347 million** and guarantees for equity method investees like LOOP, LOCAP, and Dakota Access Pipeline - Accrued liabilities for environmental remediation totaled **$347 million** at June 30, 2025, down from **$364 million** at December 31, 2024[101](index=101&type=chunk) - MPC is subject to climate-related lawsuits in several states alleging misrepresentations about petroleum product impacts, with ultimate outcomes and liabilities currently uncertain[102](index=102&type=chunk) - MPC has guarantees for indebtedness of LOOP and LOCAP, with maximum potential undiscounted payments of **$214 million**, and for the Dakota Access Pipeline, with maximum potential undiscounted payments of approximately **$78 million**[107](index=107&type=chunk)[110](index=110&type=chunk) [23. Subsequent Events](index=28&type=section&id=23.%20Subsequent%20Events) Subsequent events include MPLX's acquisition of the remaining **55%** interest in BANGL, LLC for **$700 million** plus an earnout, expected to result in a gain exceeding **$400 million** in Q3 2025; MPC also sold its **49.9%** interest in TAMH for **$425 million**, anticipating a **$245 million** gain in Q3 2025, and MPLX approved an incremental **$1.0 billion** unit repurchase authorization - On July 1, 2025, MPLX acquired the remaining **55%** interest in BANGL, LLC for approximately **$700 million** plus an earnout of up to **$275 million**, expecting an estimated gain in excess of **$400 million** in Q3 2025[113](index=113&type=chunk) - On July 31, 2025, MPC sold its **49.9%** interest in The Andersons Marathon Holdings LLC (TAMH) for **$425 million** in cash, resulting in an estimated gain on sale of **$245 million** to be recognized in Q3 2025[115](index=115&type=chunk) - On August 5, 2025, MPLX's board approved an incremental **$1.0 billion** common unit repurchase authorization, adding to the existing program[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting business updates, strategic initiatives, segment performance, liquidity, and capital resources for the periods presented [DISCLOSURES REGARDING FORWARD-LOOKING STATEMENTS](index=29&type=section&id=DISCLOSURES%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements about future performance, ESG goals, capital expenditures, business strategies, and market conditions, which are subject to various risks and uncertainties and are not guarantees of future performance - Forward-looking statements cover future financial and operating results, ESG plans, capital expenditures, business strategies, consumer demand, capital return, and anticipated effects of third-party actions[119](index=119&type=chunk)[120](index=120&type=chunk) - Key risk factors include general economic, political, or regulatory developments, commodity price volatility, disruptions in credit markets, and the potential effects of judicial proceedings[120](index=120&type=chunk) - The company undertakes no obligation to update forward-looking statements except as required by law, emphasizing that they are not guarantees of future performance[119](index=119&type=chunk)[121](index=121&type=chunk) [EXECUTIVE SUMMARY](index=30&type=section&id=EXECUTIVE%20SUMMARY) The executive summary highlights stable refining demand and comparable margins despite a weaker market, strong Midstream growth, and strategic acquisitions; MPC's net income attributable to MPC decreased in Q2 2025 and H1 2025 compared to the prior year, while MPLX continued unit repurchases and distributions [Business Update](index=30&type=section&id=Business%20Update) Refining results for Q2 2025 showed stable demand and comparable margins despite a weaker market, with expectations for a constructive environment due to global demand growth and U.S. refining advantages; the Midstream segment delivered strong results, positioned for growth with increasing natural gas and LNG export demand - Refining results for Q2 2025 reflect stable demand and comparable realized refining margins despite a weaker year-over-year margin environment[122](index=122&type=chunk) - Global demand growth is expected to outpace refining capacity changes through the end of the decade, supporting a constructive environment for U.S. refiners[122](index=122&type=chunk) - The Midstream segment contributed strong results and continued growth in Q2 2025, well-positioned to support producer development plans amid increasing demand for natural gas-powered electricity and LNG exports[123](index=123&type=chunk) [Strategic Updates](index=31&type=section&id=Strategic%20Updates) MPLX is expanding its midstream assets with the pending **$2.375 billion** acquisition of Northwind Midstream and the recently completed **$700 million** acquisition of the remaining **55%** interest in BANGL, LLC; MPC also sold its **49.9%** interest in an ethanol joint venture for **$425 million** - MPLX entered a definitive agreement in July 2025 to acquire Northwind Midstream for **$2.375 billion** in cash, expanding sour gas gathering, treating, and processing services in New Mexico[125](index=125&type=chunk) - On July 1, 2025, MPLX purchased the remaining **55%** interest in BANGL, LLC for approximately **$700 million** plus an earnout, resulting in **100%** ownership and an estimated gain exceeding **$400 million** in Q3 2025[126](index=126&type=chunk) - On July 31, 2025, MPC sold its **49.9%** interest in The Andersons Marathon Holdings LLC (TAMH) for **$425 million** in cash, expecting an estimated gain of **$245 million** in Q3 2025[130](index=130&type=chunk) [Results](index=32&type=section&id=Results) Net income attributable to MPC decreased to **$1.22 billion** (**$3.96** per diluted share) in Q2 2025 from **$1.52 billion** (**$4.33** per diluted share) in Q2 2024; for H1 2025, net income attributable to MPC was **$1.14 billion** (**$3.68** per diluted share), down from **$2.45 billion** (**$6.88** per diluted share) in the prior year Net Income Attributable to MPC and Diluted EPS | (Millions of dollars, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to MPC | $1,216 | $1,515 | $1,142 | $2,452 | | Net income attributable to MPC per diluted share | $3.96 | $4.33 | $3.68 | $6.88 | Segment Adjusted EBITDA for Reportable Segments | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Refining & Marketing | $1,890 | $2,022 | $2,379 | $4,008 | | Midstream | $1,641 | $1,620 | $3,361 | $3,209 | | Renewable Diesel | $(19) | $(27) | $(61) | $(117) | | Total reportable segments | $3,512 | $3,615 | $5,679 | $7,100 | [MPLX](index=32&type=section&id=MPLX) MPC owned approximately **647 million** MPLX common units with a market value of **$33.35 billion** as of June 30, 2025; MPLX declared a quarterly cash distribution of **$0.9565** per common unit and repurchased **4 million** common units for **$200 million** in H1 2025 - MPC owned approximately **647 million** MPLX common units as of June 30, 2025, with a market value of **$33.35 billion**[136](index=136&type=chunk) - MPLX declared a quarterly cash distribution of **$0.9565** per common unit payable on August 15, 2025, with MPC's portion being approximately **$620 million**[136](index=136&type=chunk) - During the first six months of 2025, MPLX repurchased approximately **4 million** common units at an average cost of **$51.38** per unit, totaling **$200 million**, with **$320 million** remaining under authorization[137](index=137&type=chunk) [OVERVIEW OF SEGMENTS](index=33&type=section&id=OVERVIEW%20OF%20SEGMENTS) This section outlines the key drivers of profitability for MPC's three reportable segments: Refining & Marketing, Midstream, and Renewable Diesel, detailing how margins, operating costs, throughputs, and regulatory credits impact each segment's adjusted EBITDA [Refining & Marketing](index=33&type=section&id=Refining%20%26%20Marketing) Refining & Marketing segment adjusted EBITDA is primarily influenced by refinery throughputs, refining margin (crack spreads, crude differentials), operating costs, and distribution costs; the segment benefits from processing various crude oils and is impacted by RIN prices for RFS2 compliance - Refining & Marketing segment adjusted EBITDA depends on refinery throughputs, Refining & Marketing margin (difference between refined product prices and crude oil costs), refining operating costs, and distribution costs[139](index=139&type=chunk) Estimated Annual Refining & Marketing Segment Adjusted EBITDA Sensitivity | (Millions of dollars) | Change in Annual Adjusted EBITDA | | :-------------------- | :------------------------------- | | Blended crack spread sensitivity (per $1.00/barrel change) | $1,100 | | Sour differential sensitivity (per $1.00/barrel change) | $515 | | Sweet differential sensitivity (per $1.00/barrel change) | $515 | | Natural gas price sensitivity (per $1.00/MMBtu) | $350 | - The segment's margin is also affected by selling prices, crude oil types processed, refinery yields, purchased product costs, commodity derivatives, LIFO adjustments, and the cost of purchasing RINs for RFS2 compliance[145](index=145&type=chunk) [Midstream](index=35&type=section&id=Midstream) The Midstream segment's profitability is driven by tariff rates and volumes for transportation, storage, and distribution of crude oil, refined products, and natural gas; it also processes and markets NGLs, with profitability influenced by commodity prices and producer drilling activity - Midstream segment profitability depends on tariff rates and volumes shipped through pipelines, quantity and availability of marine vessels/barges, throughput at light product terminals, and sales volumes of refined products[147](index=147&type=chunk) - A majority of crude oil and refined product movements serve the Refining & Marketing segment, with long-term, fee-based commercial agreements including minimum throughput, storage, and distribution volume commitments[147](index=147&type=chunk) - The segment's profitability is also affected by volatile NGL and natural gas prices, which influence processing/conditioning, purchasing/selling at index-related prices, and producer drilling levels[148](index=148&type=chunk) [Renewable Diesel](index=35&type=section&id=Renewable%20Diesel) The Renewable Diesel segment's adjusted EBITDA is influenced by operating costs, distribution costs, throughput, and regulatory credits; it processes renewable feedstocks into renewable diesel and includes joint ventures for soybean oil and renewable diesel production - The Renewable Diesel segment processes renewable feedstocks into renewable diesel, markets and distributes it, and includes joint ventures producing soybean oil and renewable diesel[149](index=149&type=chunk) - Segment adjusted EBITDA is affected by changes in operating costs, distribution costs, throughput, and certain regulatory credits[149](index=149&type=chunk) [RESULTS OF OPERATIONS](index=36&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated net income attributable to MPC decreased significantly in Q2 2025 and H1 2025 compared to the prior year, driven by lower revenues and higher net interest costs; segment-specific results show a decline in Refining & Marketing adjusted EBITDA, an increase in Midstream adjusted EBITDA, and an improvement in Renewable Diesel adjusted EBITDA [Consolidated Results of Operations](index=36&type=section&id=Consolidated%20Results%20of%20Operations) Net income attributable to MPC decreased by **$299 million** in Q2 2025 and **$1.31 billion** in H1 2025 year-over-year, primarily due to decreased sales and other operating revenues, lower income from equity method investments, and increased net interest and other financial costs, partially offset by decreased cost of revenues Consolidated Results of Operations (Net Income Attributable to MPC) | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to MPC | $1,216 | $1,515 | $1,142 | $2,452 | | Variance (YoY) | $(299) | - | $(1,310) | - | - Revenues and other income decreased by **$4.26 billion** in Q2 2025 and **$5.62 billion** in H1 2025, mainly due to lower Refining & Marketing segment average refined product sales prices and decreased income from equity method investments[152](index=152&type=chunk)[156](index=156&type=chunk) - Costs and expenses decreased by **$3.94 billion** in Q2 2025 and **$4.20 billion** in H1 2025, primarily driven by lower crude oil costs and decreased depreciation and amortization[152](index=152&type=chunk)[156](index=156&type=chunk) - Net interest and other financial costs increased by **$125 million** in Q2 2025 and **$250 million** in H1 2025, largely due to decreased interest income and discount amortization from the absence of short-term investments, and higher interest expense[153](index=153&type=chunk)[156](index=156&type=chunk) [Segment Results](index=37&type=section&id=Segment%20Results) Segment adjusted EBITDA for reportable segments was **$3.512 billion** in Q2 2025 (down from **$3.615 billion** in Q2 2024) and **$5.679 billion** in H1 2025 (down from **$7.100 billion** in H1 2024); Refining & Marketing saw a decrease, Midstream an increase, and Renewable Diesel an improvement in adjusted EBITDA [Refining & Marketing](index=38&type=section&id=Refining%20%26%20Marketing) Refining & Marketing segment adjusted EBITDA decreased by **$132 million** in Q2 2025 and **$1.63 billion** in H1 2025, primarily due to increased operating and distribution costs and narrower crude oil differentials, despite increased refined product sales volumes and comparable per barrel margins in Q2 Refining & Marketing Segment Adjusted EBITDA | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Segment adjusted EBITDA | $1,890 | $2,022 | $2,379 | $4,008 | | Segment adjusted EBITDA per barrel | $6.79 | $7.28 | $4.45 | $7.72 | - Refining & Marketing segment revenues decreased by **$4.37 billion** in Q2 2025 and **$5.89 billion** in H1 2025, mainly due to a decrease in average refined product sales prices, partially offset by increased sales volumes[168](index=168&type=chunk)[174](index=174&type=chunk) - Refining & Marketing margin was **$17.58** per barrel in Q2 2025 (vs. **$17.53** in Q2 2024) and **$15.57** per barrel in H1 2025 (vs. **$18.38** in H1 2024); narrower crude oil differentials and lower crack spreads negatively impacted margins[170](index=170&type=chunk)[176](index=176&type=chunk) - RINs expenses increased to **$314 million** in Q2 2025 (vs. **$293 million** in Q2 2024) and **$668 million** in H1 2025 (vs. **$594 million** in H1 2024) due to increased obligated volumes and higher average RIN prices[173](index=173&type=chunk)[180](index=180&type=chunk) [Midstream](index=42&type=section&id=Midstream) Midstream segment adjusted EBITDA increased by **$21 million** in Q2 2025 and **$152 million** in H1 2025, driven by higher sales and operating revenues from increased rates, throughputs, and contributions from recent acquisitions, partially offset by higher operating expenses Midstream Segment Adjusted EBITDA | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Segment adjusted EBITDA | $1,641 | $1,620 | $3,361 | $3,209 | - In Q2 2025, Midstream adjusted EBITDA increased by **$21 million** due to increased sales and operating revenues (**$103 million**) from higher rates and throughputs, offset by higher operating expenses[188](index=188&type=chunk) - In H1 2025, Midstream adjusted EBITDA increased by **$152 million**, primarily from increased sales and operating revenues (**$389 million**) due to fee increases, higher throughputs, recent acquisitions, and a **$37 million** non-recurring benefit[189](index=189&type=chunk) [Renewable Diesel](index=44&type=section&id=Renewable%20Diesel) Renewable Diesel segment adjusted EBITDA improved, increasing by **$8 million** in Q2 2025 and **$56 million** in H1 2025, primarily due to higher environmental credits associated with increased production volume, despite lower product margins and reduced production capacity in the prior year due to an event at the Martinez Renewables facility Renewable Diesel Segment Adjusted EBITDA | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Segment adjusted EBITDA | $(19) | $(27) | $(61) | $(117) | | Renewable Diesel margin | $49 | $37 | $75 | $32 | - Renewable Diesel segment revenues increased by **$134 million** in Q2 2025 and **$243 million** in H1 2025, mainly due to increased sales volume (**205 thousand gallons/day** in Q2, **295 thousand gallons/day** in H1)[193](index=193&type=chunk)[195](index=195&type=chunk) - The margin increase was due to higher environmental credits associated with increased production volume, partially offset by lower product margins; prior year production capacity was reduced due to an event at the Martinez Renewables facility[193](index=193&type=chunk)[195](index=195&type=chunk) [Corporate](index=46&type=section&id=Corporate) Corporate expenses increased by **$20 million** in Q2 2025, primarily due to higher contract services costs, consisting mainly of MPC's corporate administrative expenses and non-operating asset costs, excluding MPLX's corporate overhead Corporate Costs | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Corporate | $(243) | $(223) | $(453) | $(451) | - Corporate expenses increased by **$20 million** in Q2 2025, primarily driven by an increase of approximately **$26 million** in contract services[198](index=198&type=chunk) [Items not Allocated to Segments](index=46&type=section&id=Items%20not%20Allocated%20to%20Segments) The gain on sale of assets, which includes **$151 million** from the Whistler Joint Venture Transaction in Q2 2024, was not allocated to segments Items Not Allocated to Segments | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gain on sale of assets | $0 | $151 | $0 | $151 | - The **$151 million** gain on sale of assets in Q2 2024 resulted from the Whistler Joint Venture Transaction[200](index=200&type=chunk) [Non-GAAP Financial Measures](index=47&type=section&id=Non-GAAP%20Financial%20Measures) Management uses non-GAAP financial measures, specifically Refining & Marketing Margin and Renewable Diesel Margin, to evaluate segment operating and financial performance, which are reconciled to GAAP gross margin and adjusted EBITDA, respectively [Refining & Marketing Margin](index=47&type=section&id=Refining%20%26%20Marketing%20Margin) Refining & Marketing margin, a non-GAAP measure, is defined as sales revenue less the cost of refinery inputs and purchased products, used to evaluate segment performance and reconciled to Refining & Marketing gross margin - Refining & Marketing margin is a non-GAAP financial measure defined as sales revenue less cost of refinery inputs and purchased products, used to evaluate segment operating and financial performance[201](index=201&type=chunk) Refining & Marketing Margin Reconciliation | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Refining & Marketing segment adjusted EBITDA | $1,890 | $2,022 | $2,379 | $4,008 | | Refining & Marketing gross margin | $1,848 | $1,987 | $2,028 | $3,243 | | Refining & Marketing margin | $4,895 | $4,867 | $8,325 | $9,544 | [Renewable Diesel Margin](index=48&type=section&id=Renewable%20Diesel%20Margin) Renewable Diesel margin, a non-GAAP measure, is defined as sales revenue plus the value of qualifying regulatory credits less the cost of renewable inputs and purchased products, used to assess the segment's operating and financial performance - Renewable Diesel margin is a non-GAAP financial measure defined as sales revenue plus value attributable to qualifying regulatory credits earned, less cost of renewable inputs and purchased product costs[203](index=203&type=chunk) Renewable Diesel Margin Reconciliation | (Millions of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Renewable Diesel segment adjusted EBITDA | $(19) | $(27) | $(61) | $(117) | | Renewable Diesel gross margin | $(104) | $(66) | $(215) | $(194) | | Renewable Diesel margin | $49 | $37 | $75 | $32 | [LIQUIDITY AND CAPITAL RESOURCES](index=48&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's cash and cash equivalents decreased to **$1.67 billion** at June 30, 2025; net cash provided by operating activities decreased, while net cash used in investing and financing activities increased; MPC and MPLX maintain adequate liquidity and investment-grade credit profiles, with ongoing capital investment plans and share/unit repurchase programs [Cash Flows](index=48&type=section&id=Cash%20Flows) Net cash provided by operating activities decreased by **$2.20 billion** in H1 2025 due to lower operating results and an unfavorable change in working capital; net cash used in investing activities increased to **$1.90 billion**, and net cash used in financing activities decreased to **$2.22 billion** Net Cash Provided by (Used in) Activities | (Millions of dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Operating activities | $2,575 | $4,774 | | Investing activities | $(1,897) | $(807) | | Financing activities | $(2,215) | $(4,970) | | Total decrease in cash | $(1,537) | $(1,003) | - Net cash provided by operating activities decreased by **$2.20 billion** in H1 2025, primarily due to lower operating results and a **$1.19 billion** unfavorable change in working capital[207](index=207&type=chunk) - Investing activities were a net **$1.90 billion** use of cash in H1 2025, including increased additions to PP&E (**$286 million** increase) and cash used for acquisitions (**$237 million**)[210](index=210&type=chunk)[214](index=214&type=chunk) - Financing activities were a net **$2.22 billion** use of cash in H1 2025, including **$919 million** net source from long-term debt, **$210 million** net borrowings from commercial paper, and **$1.84 billion** used for common stock repurchases[213](index=213&type=chunk)[215](index=215&type=chunk) [Capital Resources](index=50&type=section&id=Capital%20Resources) MPC, excluding MPLX, had **$5.18 billion** in liquidity at June 30, 2025, and maintains an investment-grade credit profile; MPLX had **$4.89 billion** in liquidity and also maintains an investment-grade credit profile, with recent debt issuances and repayments to manage its capital structure [MPC, Excluding MPLX](index=50&type=section&id=MPC%2C%20Excluding%20MPLX) MPC, excluding MPLX, had **$5.18 billion** in total liquidity at June 30, 2025, comprising available capacity under credit facilities and cash; the company maintains an investment-grade credit profile and issued **$2.0 billion** in senior notes in February 2025 to manage debt maturities MPC Liquidity (Excluding MPLX) as of June 30, 2025 | (Millions of dollars) | Total Capacity | Outstanding Borrowings | Outstanding Letters of Credit | Available Capacity | | :-------------------- | :------------- | :--------------------- | :---------------------------- | :----------------- | | Bank revolving credit facility | $5,000 | $0 | $1 | $4,999 | | Trade receivables facility | $100 | $0 | $0 | $100 | | Total | $5,100 | $0 | $1 | $5,099 | | Commercial paper borrowings | - | - | - | $(210) | | Cash and cash equivalents and short-term investments | - | - | - | $287 | | Total liquidity | - | - | - | $5,176 | - MPC issued **$2.0 billion** in senior notes in February 2025 to replace **$750 million** maturing notes and repay **$1.250 billion** maturing notes[220](index=220&type=chunk) - MPC maintains an investment-grade credit profile (Moody's Baa2, S&P BBB, Fitch BBB, all stable outlook) and was in compliance with all debt covenants as of June 30, 2025[221](index=221&type=chunk)[224](index=224&type=chunk) [MPLX](index=51&type=section&id=MPLX) MPLX had **$4.89 billion** in liquidity at June 30, 2025, including available capacity under credit facilities and cash; MPLX issued **$2.0 billion** in senior notes in March 2025 and repaid **$1.7 billion** in maturing debt, intending to use debt financing to restore liquidity after recent acquisitions and debt repayments MPLX Liquidity as of June 30, 2025 | (Millions of dollars) | Total Capacity | Outstanding Borrowings | Outstanding Letters of Credit | Available Capacity | | :-------------------- | :------------- | :--------------------- | :---------------------------- | :----------------- | | MPLX LP - bank revolving credit facility | $2,000 | $0 | $0 | $2,000 | | MPC intercompany loan agreement | $1,500 | $0 | $0 | $1,500 | | Total | $3,500 | $0 | $0 | $3,500 | | Cash and cash equivalents | - | - | - | $1,386 | | Total liquidity | - | - | - | $4,886 | - MPLX issued **$2.0 billion** in senior notes in March 2025 and repaid **$1.7 billion** in maturing senior notes in February and April 2025[229](index=229&type=chunk) - MPLX intends to use debt financing to restore liquidity after the BANGL Acquisition and related debt repayments, and to fund the Northwind Midstream acquisition[231](index=231&type=chunk) - MPLX maintains an investment-grade credit profile (Moody's Baa2, S&P BBB, Fitch BBB, all stable outlook) and was in compliance with its bank revolving credit facility covenants as of June 30, 2025[232](index=232&type=chunk)[234](index=234&type=chunk) [Capital Requirements](index=52&type=section&id=Capital%20Requirements) MPC's capital investment outlook for 2025 is **$1.25 billion** (excluding MPLX), while MPLX's plan is **$2.0 billion**; the company continues share repurchases, with **$6.03 billion** remaining under authorization, and MPLX approved an additional **$1.0 billion** unit repurchase authorization [Capital Investment Plan](index=52&type=section&id=Capital%20Investment%20Plan) MPC's 2025 capital investment outlook is approximately **$1.25 billion** (excluding MPLX), focusing on refining improvements, energy efficiency, and emissions reductions; MPLX's capital plan is **$2.0 billion**, primarily for expanding natural gas and NGL value chains in key basins - MPC's capital investment outlook for 2025 is approximately **$1.25 billion** (excluding MPLX), covering Refining & Marketing, Renewable Diesel, and Corporate segments[238](index=238&type=chunk) - MPLX's capital investment plan for 2025 totals **$2.0 billion**, excluding acquisitions, focusing on expanding Permian to Gulf Coast natural gas and NGL value chains, and gas gathering/processing projects in Marcellus, Utica, and Permian basins[238](index=238&type=chunk)[241](index=241&type=chunk) Capital Expenditures and Investments | (Millions of dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | MPC, excluding MPLX | $738 | $616 | | Midstream - MPLX | $1,065 | $565 | | Total capital expenditures and investments | $1,803 | $1,181 | [Share Repurchases](index=53&type=section&id=Share%20Repurchases) MPC repurchased **5 million** shares for **$692 million** in Q2 2025 and **12 million** shares for **$1.749 billion** in H1 2025; as of June 30, 2025, **$6.03 billion** remained available under its share repurchase authorizations MPC Share Repurchases | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Number of shares repurchased | 5 | 15 | 12 | 28 | | Cash paid for shares repurchased | $692 | $2,896 | $1,749 | $5,114 | | Average cost per share | $146.43 | $185.34 | $147.29 | $177.54 | - As of June 30, 2025, **$6.03 billion** remained available for repurchase under MPC's share repurchase authorizations, which have no expiration date[242](index=242&type=chunk) [MPLX Unit Repurchases](index=53&type=section&id=MPLX%20Unit%20Repurchases) MPLX repurchased **2 million** common units for **$100 million** in Q2 2025 and **4 million** units for **$200 million** in H1 2025; an additional **$1.0 billion** unit repurchase authorization was approved on August 5, 2025, bringing the total remaining authorization to **$1.32 billion** MPLX Unit Repurchases | (In millions, except per unit data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Number of common units repurchased | 2 | 2 | 4 | 4 | | Cash paid for common units repurchased | $100 | $75 | $200 | $150 | | Average cost per unit | $50.31 | $41.10 | $51.38 | $40.56 | - As of June 30, 2025, MPLX had approximately **$320 million** remaining under its unit repurchase authorization; on August 5, 2025, an incremental **$1.0 billion** authorization was approved[245](index=245&type=chunk)[246](index=246&type=chunk) [Cash Commitments](index=53&type=section&id=Cash%20Commitments) The company's contractual obligations primarily include crude oil purchase and transport commitments, long-term debt, and pension/post-retirement obligations; MPC declared a dividend of **$0.91** per share payable in September 2025 and plans an additional **$135 million** pension contribution in Q3 2025 [Contractual Obligations](index=53&type=section&id=Contractual%20Obligations) Contractual obligations primarily consist of crude oil purchase and transport commitments; no other material changes occurred in H1 2025 outside the ordinary course of business, with additional information on long-term debt and pension obligations provided in other notes - Purchase commitments primarily consist of obligations to purchase and transport crude oil for refining operations[248](index=248&type=chunk) - Other contractual obligations include long-term debt and pension/post-retirement obligations, and financing/operating leases[249](index=249&type=chunk) - No other material changes to contractual obligations occurred during the first six months of 2025 outside the ordinary course of business[248](index=248&type=chunk) [Other Cash Commitments](index=55&type=section&id=Other%20Cash%20Commitments) MPC declared a dividend of **$0.91** per share payable in September 2025; the company plans an additional **$135 million** required contribution to funded pension plans in Q3 2025, with potential for voluntary contributions - On July 30, 2025, MPC's board declared a dividend of **$0.91** per share on common stock, payable September 10, 2025[250](index=250&type=chunk) - The company plans to make an additional required contribution of approximately **$135 million** to its funded pension plans in Q3 2025, following **$36 million** contributed in H1 2025[251](index=251&type=chunk) - MPC may repurchase its senior notes in the open market or through other transactions as deemed appropriate[252](index=252&type=chunk) [ENVIRONMENTAL MATTERS AND COMPLIANCE COSTS](index=55&type=section&id=ENVIRONMENTAL%

Financial Data and Key Metrics Changes - The company reported a second quarter net income of $3.96 per share and returned approximately $1 billion to shareholders through dividends and repurchases [14] - Adjusted EBITDA for the quarter was approximately $3.3 billion, an increase of $1.3 billion sequentially, primarily due to increased results in the Refining and Marketing segment [14][17] - Operating cash flow excluding changes in working capital was $2.6 billion for the quarter, with capital expenditures just over $1 billion [19] Business Line Data and Key Metrics Changes - The Refining and Marketing segment achieved 97% utilization, processing 2.9 million barrels of crude per day, with adjusted EBITDA of $6.79 per barrel [15][17] - The Midstream segment delivered a year-to-date adjusted EBITDA growth of 5% over the previous year, with distributions from MPLX increasing by 12.5% year-over-year [17][18] - The Renewable Diesel segment operated at 76% capacity, with improved margins due to incremental production tax credits [18] Market Data and Key Metrics Changes - U.S. gasoline inventories are in line with five-year averages, while diesel inventories are at historically low levels, supporting strong margins [6][8] - The company expects crude differentials to widen later in the year due to higher OPEC plus production and increased Canadian supply [7][32] Company Strategy and Development Direction - The company is committed to optimizing its portfolio through strategic investments and divestitures, including the $425 million divestiture of its partial interest in ethanol production facilities [10][22] - MPLX's strategic acquisition of Northwind Midstream for under $2.4 billion is expected to enhance its growth platform in the natural gas and NGL value chain [11][12] - The company aims to maintain industry-leading capital returns through its integrated value chain and diversified assets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the refining industry, expecting demand growth to exceed the impact of capacity additions through the end of the decade [7][21] - The company anticipates continued strong diesel demand and tight inventory levels to support margins [6][100] - Management highlighted the importance of operational excellence and commercial performance in delivering peer-leading profitability [21][68] Other Important Information - The company plans to execute a $1.25 billion standalone capital plan for 2025, with 70% targeted at high-return projects [22] - The company has a strong balance sheet with cash of nearly $300 million and MPLX cash of approximately $1.4 billion [20] Q&A Session Summary Question: Can you discuss the 105% capture achieved in the second quarter? - Management emphasized the focus on commercial performance and structural improvements that support sustainable results [26][28] Question: What is the outlook for quality discounts as OPEC increases production? - Management expects differentials to widen in the second half of the year due to increased OPEC production and bullish Canadian production [32][35] Question: How will the California refinery closures impact the company? - Management sees opportunities in accessing local California crudes and believes their integrated system provides a competitive advantage [42][46] Question: What is the expected turnaround expense for the coming years? - Management indicated that the current turnaround expenses may be at a peak, with expectations for a decrease in future years [50][51] Question: How does the company view return of capital and share buybacks? - Management reiterated their commitment to returning all free cash flow in the form of share buybacks, supported by MPLX's growing distribution [58][60] Question: What are the factors behind the recent strength in diesel cracks? - Management cited low U.S. inventories and strong demand as key drivers for the sustainability of diesel cracks [99][101] Question: Can you elaborate on the decision to divest the ethanol stake? - Management stated that the divestiture was based on a compelling offer and the opportunity to optimize the portfolio for future growth [102][105] Question: What opportunities exist in the midstream build-out? - Management highlighted ongoing optimization strategies in both NGL and natural gas sectors, with a focus on integration and growth in the Permian [110][113]

Financial Data and Key Metrics Changes - The company reported a second quarter net income of $3.96 per share and returned approximately $1 billion to shareholders through dividends and repurchases [12] - Adjusted EBITDA for the quarter was approximately $3.3 billion, an increase of $1.3 billion sequentially, primarily due to increased results in the Refining and Marketing segment [12][14] - Operating cash flow excluding changes in working capital was $2.6 billion for the quarter, with capital expenditures just over $1 billion [16][17] Business Line Data and Key Metrics Changes - The Refining and Marketing segment achieved 97% utilization, processing 2.9 million barrels of crude per day, with segment adjusted EBITDA at $6.79 per barrel [13][14] - The Midstream segment delivered a year-to-date adjusted EBITDA growth of 5% compared to the previous year, with distributions from MPLX increasing by 12.5% year-over-year [14][15] - The Renewable Diesel segment operated at 76% capacity, with margins improving due to incremental production tax credits [15] Market Data and Key Metrics Changes - U.S. gasoline inventories are in line with five-year averages, while diesel inventories are at historically low levels, supporting strong margins [4][5] - The company expects demand growth to exceed the net impact of capacity additions and rationalizations through the end of the decade, maintaining a structurally advantaged position in the U.S. refining industry [5][6] Company Strategy and Development Direction - The company is committed to optimizing its portfolio through strategic investments and divestitures, including the $425 million divestiture of its partial interest in ethanol production facilities [8][20] - MPLX's strategic acquisition of Northwind Midstream for under $2.4 billion is expected to enhance its growth platform and support the development plans of its producer customers [9][10] - The company plans to execute a $1.25 billion standalone capital plan for 2025, with 70% targeted on high-return projects [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the refining industry, anticipating that demand growth will outpace supply additions [5][19] - The company highlighted the importance of operational excellence and commercial execution to deliver peer-leading profitability [19] - Management expects crude differentials to widen in the second half of the year due to increased OPEC production and Canadian supply [30] Other Important Information - The company repaid $1.25 billion in senior notes that matured in May and MPLX redeemed $1.2 billion of senior notes scheduled to mature in June [17][18] - The company maintains a strong balance sheet with nearly $300 million in cash at the end of the quarter, supported by a $2.5 billion annual distribution from MPLX [18] Q&A Session Summary Question: Can you discuss the 105% capture achieved in the second quarter? - Management emphasized the focus on commercial performance and sustainable changes that have led to improved results, expecting to maintain this performance in the future [23][24] Question: What is the outlook for quality discounts as OPEC increases production? - Management anticipates that differentials will widen in the second half of the year due to increased OPEC barrels and bullish Canadian production [30][31] Question: How will the California refinery closures impact the company? - Management believes the closures present opportunities, allowing access to local California crudes and enhancing competitive advantages [40][43] Question: What is the expected turnaround expense for the coming years? - Management indicated that the current turnaround expenses may be at a peak, with expectations for a decrease in future years as the backlog from COVID is addressed [48][49] Question: How does the company view return of capital and share buybacks? - Management reiterated the commitment to return all free cash flow in the form of share buybacks, supported by the growing distribution from MPLX [56][57] Question: What factors are driving the recent strength in diesel cracks? - Management cited low U.S. inventories and strong demand as key factors, with expectations for sustained premium levels through the rest of the year [96][99] Question: What led to the decision to divest the ethanol stake? - Management noted that the decision was based on a compelling offer and differing strategic goals with partners, optimizing the portfolio for future growth [100][102]

Financial Performance - Adjusted EBITDA was $3286 million[16], with Refining & Marketing contributing $1890 million[21], and Midstream contributing $1641 million[67] - Cash Flow from Operations, excluding changes in working capital, reached $2605 million[10, 16] - Share repurchases amounted to $692 million[8, 16] - Dividends paid out totaled $279 million[16] Strategic Initiatives - Announced the Northwind Midstream acquisition for $2375 million[7, 11], expecting a mid-teen return on investment[13] - The Northwind Midstream acquisition supports MPLX's Permian wellhead-to-water strategy, covering over 200,000 dedicated acres and 200+ miles of gathering pipelines[11] Segment Performance - Refining & Marketing segment Adjusted EBITDA per Barrel was $6.79[16] - Refining & Marketing margin reached $4895 million[24] - Year-to-date Midstream Segment Adjusted EBITDA increased by 5% year-over-year to $3361 million[27, 28] Sustainability - The company is targeting a 30% reduction in Scope 1 & 2 GHG Emissions Intensity by 2030 and a 38% reduction by 2035 from 2014 levels[38] - The company is targeting a 20% reduction in Freshwater Withdrawal Intensity by 2030 from 2016 levels[39]