Marathon(US:MPC)2024-08-06 10:42Financial Performance - Second-quarter net income attributable to Marathon Petroleum Corp. (MPC) was $1.5 billion, or $4.33 per diluted share, down from $2.2 billion, or $5.32 per diluted share, in the same quarter of 2023[1]. - Adjusted EBITDA for the second quarter of 2024 was $3.4 billion, compared to $4.5 billion in the second quarter of 2023, reflecting a decrease of approximately 24.4%[2]. - Net income attributable to the company for Q2 2024 was $1,515 million, down 32% from $2,226 million in Q2 2023[20]. - Adjusted net income attributable to MPC for the same period was $1,442 million, compared to $2,226 million in 2023, indicating a 35% decrease[35]. - Adjusted EBITDA for the three months ended June 30, 2024, was $3,392 million, down from $4,531 million in 2023, reflecting a 25% decline[38]. Segment Performance - The Refining & Marketing segment adjusted EBITDA was $2.0 billion in Q2 2024, down from $3.2 billion in Q2 2023, with a margin of $7.07 per barrel compared to $11.88 per barrel in the prior year[4]. - Refining & Marketing segment adjusted EBITDA for Q2 2024 was $1,972 million, down from $3,163 million in Q2 2023, representing a decrease of 37.5%[39]. - Refining & Marketing gross margin for Q2 2024 was $1,921 million, compared to $2,625 million in Q2 2023, reflecting a decline of 26.8%[39]. - Total Refining & Marketing margin for Q2 2024 was $4,845 million, down 17.6% from $5,883 million in Q2 2023[39]. - Midstream segment adjusted EBITDA increased to $1.6 billion in Q2 2024, up from $1.5 billion in Q2 2023, driven by higher rates and volumes[5]. Revenue and Costs - Total revenues and other income for Q2 2024 reached $38,362 million, a 4.2% increase from $36,824 million in Q2 2023[20]. - The total cost of revenues for Q2 2024 was $33,945 million, an increase of 6.9% from $31,762 million in Q2 2023[20]. - Operating expenses (excluding depreciation and amortization) for Q2 2024 were $2,633 million, a decrease from $2,748 million in Q2 2023[39]. - Refining operating costs per barrel decreased to $4.97 in Q2 2024 from $5.15 in Q2 2023, indicating improved cost efficiency[4]. - Corporate expenses increased to $223 million in Q2 2024 from $183 million in Q2 2023, primarily due to decommissioning costs[6]. Shareholder Returns - The company returned $3.2 billion to shareholders in Q2 2024 through $2.9 billion in share repurchases and $290 million in dividends[8]. Capital Expenditures and Investments - Capital expenditures for Q2 2024 totaled $569 million, slightly up from $562 million in Q2 2023[22]. - The company’s capital spending plan for 2024 includes high-return investments at its Los Angeles and Galveston Bay refineries, along with shorter-term projects to enhance refinery yields and improve energy efficiency[9]. Cash and Debt Position - As of June 30, 2024, MPC had $8.5 billion in cash and cash equivalents, with an additional $5 billion available on its bank revolving credit facility[7]. - The company reported a total debt of $28,937 million as of June 30, 2024, compared to $27,289 million at the end of March 2024, indicating an increase of 6%[31]. Operational Metrics - Crude oil refining capacity utilization was 97% in Q2 2024, compared to 93% in Q2 2023[24]. - Total pipeline throughputs for the three months ended June 30, 2024, were 6,129 mbpd, an increase from 6,032 mbpd in the same period of 2023, representing a growth of 1.6%[30]. - Gasoline yield for the three months ended June 30, 2024, was 280 mbpd, compared to 251 mbpd in the same period of 2023, an increase of 11.5%[29]. - The company processed 9,568 million cubic feet per day of natural gas in Q2 2024, an increase from 8,934 million cubic feet per day in Q2 2023, representing a growth of 7.1%[30]. Margins by Region - Gulf Coast Refining & Marketing margin decreased to $1,882 million in Q2 2024 from $2,259 million in Q2 2023, a drop of 16.6%[39]. - Mid-Continent Refining & Marketing margin fell to $1,961 million in Q2 2024, down 22.6% from $2,535 million in Q2 2023[39]. - West Coast Refining & Marketing margin decreased to $1,002 million in Q2 2024, down 8.0% from $1,089 million in Q2 2023[39].