Marathon(MPC) - 2025 Q3 - Quarterly Report

Financial Performance - Refining & Marketing segment adjusted EBITDA for Q3 2025 was $1,762 million, up 55.2% from $1,136 million in Q3 2024[153] - Midstream segment adjusted EBITDA for Q3 2025 was $1,709 million, an increase of 4.9% compared to $1,628 million in Q3 2024[153] - Total reportable segments adjusted EBITDA for the first nine months of 2025 was $9,094 million, a decrease of 7.2% from $9,803 million in the same period of 2024[153] - Net income attributable to MPC for Q3 2025 was $1.37 billion, or $4.51 per diluted share, compared to $622 million, or $1.87 per diluted share in Q3 2024[153] - For the nine months ended September 30, 2025, net income attributable to MPC decreased by $562 million to $2.51 billion compared to the same period in 2024[175] - Revenues and other income for the third quarter of 2025 were $35.85 billion, an increase of $476 million from $35.37 billion in the third quarter of 2024[170] - Total revenues and other income for the nine months ended September 30, 2025, were $101.8 billion, down from $106.946 billion in 2024[170] Acquisitions and Divestitures - The Northwind Midstream Acquisition was completed for $2.4 billion, enhancing MPLX's natural gas and NGL value chain[141] - MPLX announced the divestiture of its Rockies operations for $1.0 billion, expected to close in Q4 2025, with an estimated gain of over $150 million[143][144] - The BANGL Acquisition was completed for approximately $703 million, with an additional earnout provision of up to $275 million based on EBITDA growth[146] - The sale of MPC's 49.9% interest in The Andersons Marathon Holdings LLC generated cash proceeds of $427 million and a gain of $254 million[150] Operational Efficiency - U.S. refining margins improved due to stable demand and gasoline and distillate inventory levels at or below five-year averages[138] - The company anticipates that global demand growth will outpace refining capacity additions through the end of the decade, supporting a positive outlook for U.S. refiners[138] - The company achieved a crude oil capacity utilization rate of 95% in Q3 2025, compared to 94% in Q3 2024, indicating improved operational efficiency[200] - Total refined product yields in Q3 2025 were 3,036 mbpd, compared to 3,021 mbpd in Q3 2024, indicating a slight increase in production efficiency[224] Costs and Expenses - Refining operating costs, excluding depreciation and amortization, increased by $241 million, or $0.18 per barrel, largely due to higher energy and repair costs[198] - Distribution costs, excluding depreciation and amortization, increased by $205 million for the first nine months of 2025, or $0.14 per barrel, with fees paid to MPLX totaling $3.01 billion[199] - The company reported a decrease in sales and other operating revenues of $298 million due to a decrease in average refined product sales prices[172] - The company recorded combined income tax provisions of $765 million for the nine months ended September 30, 2025, compared to $779 million in 2024[176] Cash Flow and Liquidity - The company's cash and cash equivalents balance was approximately $2.65 billion as of September 30, 2025, down from $3.21 billion at the end of 2024[227] - Net cash provided by operating activities decreased by $1.27 billion to $5.18 billion in the first nine months of 2025 compared to $6.46 billion in 2024, primarily due to a decrease in operating results and an unfavorable change in working capital of $791 million[229] - Investing activities resulted in a net cash outflow of $5.65 billion in the first nine months of 2025, contrasting with a net cash inflow of $1.23 billion in the same period of 2024[232] - Financing activities showed a net cash outflow of $88 million in the first nine months of 2025, significantly reduced from a net outflow of $9.13 billion in 2024[235] - Total liquidity for MPC, excluding MPLX, was $5.99 billion as of September 30, 2025, consisting of $5 billion in bank revolving credit capacity and $889 million in cash and cash equivalents[240] Shareholder Returns - The board of directors declared a dividend of $1.00 per share on common stock, payable on December 10, 2025[275] - MPLX declared a quarterly cash distribution of $1.0765 per common unit, amounting to approximately $697 million for MPC, payable on November 14, 2025[155] - Cash used in common stock repurchases decreased to $2.49 billion in the first nine months of 2025 from $7.82 billion in 2024, reflecting a reduction in shares outstanding[237] - Total share repurchases for the nine months ended September 30, 2025, amounted to $2,399 million, compared to $7,815 million in 2024[267] Segment Performance - Refining & Marketing segment adjusted EBITDA decreased by $1.0 billion for the first nine months of 2025, with adjusted EBITDA per barrel dropping to $5.10 from $6.49 in 2024[195] - Refining & Marketing margin was $16.26 per barrel for the first nine months of 2025, down from $17.08 per barrel in 2024, reflecting a net negative impact of approximately $1 billion due to narrower crude oil differentials[196] - Renewable Diesel segment revenues increased by $235 million in Q3 2025, driven by a sales volume increase of 74 thousand gallons per day[213] - Renewable Diesel segment adjusted EBITDA increased by $61 million in the first nine months of 2025, attributed to higher Renewable Diesel margins rising from $49 million to $83 million[215]