Marathon Petroleum Corp. Reports First-Quarter 2025 Results

Core Insights - Marathon Petroleum Corp. reported a net loss of $74 million, or $0.24 per diluted share, for Q1 2025, a significant decline from a net income of $937 million, or $2.58 per diluted share, in Q1 2024 [1][9][28] - Adjusted EBITDA for Q1 2025 was $2.0 billion, down from $3.3 billion in Q1 2024, reflecting the impact of planned maintenance and market conditions [2][3][50] Financial Performance - The refining and marketing segment adjusted EBITDA was $489 million in Q1 2025, compared to $1.986 billion in Q1 2024, with a margin of $1.91 per barrel versus $8.22 per barrel in the prior year [5][6][31] - Midstream segment adjusted EBITDA increased to $1.720 billion in Q1 2025 from $1.589 billion in Q1 2024, driven by higher throughput and growth from equity affiliates [10][3] - Renewable diesel segment adjusted EBITDA improved to $(42) million in Q1 2025 from $(90) million in Q1 2024, attributed to increased utilization and higher margins [11][44] Operational Highlights - The company executed its second-largest planned maintenance quarter in history, which contributed to the net loss [9][3] - Refining capacity utilization was 89%, with total throughput of 2.8 million barrels per day in Q1 2025 [7][33] - The company returned approximately $1.3 billion to shareholders, including $1.1 billion in share repurchases [9][14] Strategic Developments - The company is focusing on high-return investments in its refining operations, including projects at its Los Angeles, Galveston Bay, and Robinson refineries [15][17] - MPLX, a subsidiary, announced the acquisition of the remaining 55% of BANGL, LLC for $715 million, enhancing its natural gas liquids transportation capabilities [16][18] - The Traverse Pipeline project, designed to transport 1.75 billion cubic feet per day of natural gas, has reached a final investment decision and is expected to be operational by 2027 [16][18] Financial Position - As of March 31, 2025, the company had $3.8 billion in cash and cash equivalents, with $5 billion available on its bank revolving credit facility [13][14] - The company issued $2.0 billion in unsecured senior notes to refinance maturing debt [14][46] Market Outlook - The refining and marketing segment is expected to see improved margins due to seasonal demand trends [3][20] - The company remains optimistic about its long-term outlook, aiming to deliver peer-leading capital returns [3][9]