Marathon(US:MPC)2025-05-06 17:07Financial Performance - Total reportable segments' adjusted EBITDA was $2,167 million in Q1 2025, down from $3,485 million in Q1 2024 [118]. - Net loss attributable to the company was $74 million, or $(0.24) per diluted share, for Q1 2025, compared to net income of $937 million, or $2.58 per diluted share, in Q1 2024 [119]. - Total revenues and other income decreased by $1.36 billion to $31.85 billion in Q1 2025 compared to Q1 2024 [136]. - Net income attributable to MPC decreased by $1.01 billion to a loss of $74 million in Q1 2025, primarily due to lower Refining & Marketing margins [137]. - Refining & Marketing segment revenues decreased by $1.52 billion, driven by a $0.22 per gallon decrease in average refined product sales prices, despite a 204 mbpd increase in sales volumes [149]. - Refining & Marketing segment adjusted EBITDA decreased by $1.50 billion to $1.91 per barrel in Q1 2025, down from $8.22 per barrel in Q1 2024 [150]. - Net cash provided by operating activities decreased by $1.60 billion in Q1 2025 compared to Q1 2024, primarily due to a decrease in operating results and an unfavorable change in working capital of $685 million [177]. Refining & Marketing Segment - Segment adjusted EBITDA for Refining & Marketing decreased to $489 million in Q1 2025 from $1,986 million in Q1 2024, reflecting a lower refining margin environment [118]. - Refining & Marketing margin per barrel decreased to $13.38 in Q1 2025 from $19.35 in Q1 2024 [147]. - Refining & Marketing margin decreased to $13.38 per barrel in Q1 2025 from $19.35 per barrel in Q1 2024, with an estimated net negative impact of approximately $1.7 billion due to lower crack spreads [151]. - Refining operating costs, excluding depreciation and amortization, increased by $7 million primarily due to higher energy costs, while costs decreased by $0.32 per barrel due to higher throughput [152]. - Refining planned turnaround costs decreased by $193 million, or $0.91 per barrel, due to the scope and timing of turnaround activity [154]. Capital Expenditures and Investments - Total capital expenditures in Q1 2025 were $644 million, up from $511 million in Q1 2024, with additions to property, plant, and equipment at $663 million [182]. - MPC's capital investment outlook for 2025 is approximately $1.25 billion, excluding capitalized interest and potential acquisitions [204]. - Capital expenditures for MPC, excluding MPLX, were $377 million in Q1 2025, compared to $299 million in Q1 2024, indicating a 26% increase [206]. - Cash used for common stock repurchases was $1.06 billion in Q1 2025, down from $2.22 billion in Q1 2024, reflecting a decrease in repurchase activity [185]. - Cash used in acquisitions amounted to $237 million in Q1 2025, related to the Midstream segment [184]. MPLX and Midstream Operations - The company owned approximately 647 million MPLX common units valued at $34.65 billion as of March 31, 2025 [121]. - MPLX declared a quarterly cash distribution of $0.9565 per common unit, with the company's portion amounting to approximately $619 million [121]. - MPLX acquired gathering businesses from Whiptail Midstream for $237 million, enhancing its strategic relationship with MPC [114]. - MPLX entered into an agreement to acquire the remaining 55% interest in BANGL, LLC for $715 million, with an additional earnout provision of up to $275 million based on EBITDA growth [113]. - Midstream segment adjusted EBITDA increased by $131 million, mainly due to increased sales and operating revenues of $286 million from fee escalations and higher throughputs [162]. Liquidity and Financial Position - The consolidated cash and cash equivalents balance increased to approximately $3.81 billion at March 31, 2025, compared to $3.21 billion at December 31, 2024 [175]. - Total liquidity for MPC, excluding MPLX, was $6.38 billion as of March 31, 2025, consisting of $4.999 billion available under the bank revolving credit facility and $1.278 billion in cash and cash equivalents [188]. - MPLX's liquidity totaled $6.03 billion at March 31, 2025, including $2.534 billion in cash and cash equivalents [197]. - Long-term debt borrowings and repayments provided a net cash source of $3.41 billion in Q1 2025, compared to a net cash use of $17 million in Q1 2024 [185]. Regulatory and Market Outlook - The company expects to evaluate the impact of California's SB X1-2 and AB X2-1 regulations on its future operations and results [112]. - The refining margin environment is expected to remain lower in the near term, but long-term global demand growth is anticipated to outpace capacity additions through the end of the decade [109].