Marathon Petroleum Corp
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
MPC$372.74-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-30.
0001510295-24-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001510295-24-000068
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 228 previous paragraphs and 260 current paragraphs.
154 unchanged; 64 reworded; 35 added; 10 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
•the inability or failure of our joint venture partners to fund their share of operations and development activities;
Current report
•the financing and distribution decisions of joint ventures we do not control;
Current report
Our second quarter results reflect a lower margin environment versus the second quarter of 2023 as global refined product supply was at record seasonal levels driven by high utilization and new refining capacity additions. Longer-term, demand growth is expected to outpace the limited refining capacity additions anticipated through the end of the decade. We anticipate these fundamentals, as well as the U.S. refining industry’s current structural advantages over the rest of the world, will support a constructive environment for U.S. refiners.
Current report
On May 29, 2024, MPLX and its joint venture partner contributed their respective membership interest in Whistler Pipeline, LLC to a newly formed joint venture, WPC Parent, LLC and issued a 19 percent voting interest in WPC Parent, LLC to an affiliate of Enbridge Inc. in exchange for the contribution of cash and the Rio Bravo Pipeline project (collectively, the “Whistler Joint Venture
Current report
Transaction”). The combined platform connects Permian supply to incremental LNG export markets and supports the development of additional pipeline projects. As a result of the transaction, MPLX’s voting interest in the joint venture was reduced from 37.5 percent to 30.4 percent. MPLX recognized a gain of $151 million and received a cash distribution of $134 million, recorded as a return of capital, related to the dilution of the ownership interest.
Current report
See Note 13 to the unaudited consolidated financial statements for additional information on these transactions.
Current report
On July 31, 2024, MPLX purchased an additional 20 percent ownership interest in BANGL, LLC, increasing total ownership interest to 45 percent. BANGL, LLC is a natural gas liquids pipeline system connecting the Delaware and Midland basin to the fractionation market in Sweeny, Texas.
Current report
(a)Gain from the Whistler Joint Venture Transaction. See Note 13 to the unaudited consolidated financial statements for additional information.
Current report
Net income attributable to MPC decreased $711 million in the second quarter of 2024 compared to the second quarter of 2023 primarily due to lower Refining & Marketing margins, partially offset by a decreased provision for income taxes.
Current report
Revenues and other income increased $1.54 billion primarily due to:
Current report
•increased income from equity method investments of $174 million primarily due to the gain on sale of assets resulting from the Whistler Joint Venture Transaction; and
Current report
•decreased other income of $193 million mainly due to lower income on RIN sales.
Current report
•increased cost of revenues of $2.18 billion primarily due to higher crude oil costs, partially offset by a decrease in finished product purchases; and
Current report
Net interest and other financial costs increased $52 million largely due to decreased interest income, primarily on lower short-term investments, and increases in non-service pension costs, currency exchange losses and interest expense due to higher MPLX borrowings.
Current report
Net income attributable to noncontrolling interests increased $104 million primarily due to an increase in MPLX’s net income in the second quarter of 2024. See further discussion in the Midstream Segment Results section.
Current report
Net income attributable to MPC decreased $2.50 billion in the first six months of 2024 compared to the first six months of 2023 primarily due to lower Refining & Marketing margins, partially offset by a decreased provision for income taxes.
Current report
•increased selling, general and administrative expenses of $207 million largely due to increases in equity compensation of $77 million, contract services costs of $45 million, salaries and employee related costs of $38 million and $30 million of expense related to decommissioning of non-operating assets.
Current report
Net interest and other financial costs increased $77 million largely due to decreased interest income, primarily on lower short-term investments, and increases in non-service pension costs, interest expense, due to higher MPLX borrowings, and currency exchange losses.
Current report
Net income attributable to noncontrolling interests increased $132 million primarily due to an increase in MPLX’s net income in the first six months of 2024. See further discussion in the Midstream Segment Results section.
Current report
Refining & Marketing segment revenues increased $1.50 billion primarily due to increased refined product sales volumes of 161 mbpd, partially offset by decreased average refined product sales prices of $0.02 per gallon.
Current report
For the three months ended June 30, 2024, refining operating costs, excluding depreciation and amortization, increased $14 million. Per barrel costs decreased $0.18 due to higher throughput.
Current report
Depreciation and amortization decreased $14 million, or $0.14 per barrel.
Current report
Net refinery throughput decreased 17 mbpd in the first six months of 2024.
Current report
Refining & Marketing segment adjusted EBITDA decreased $3.17 billion primarily driven by decreases in per barrel margins and increased distribution costs and refining operating costs, both excluding depreciation and amortization. Refining & Marketing segment adjusted EBITDA was $7.37 per barrel for the first six months of 2024, versus $13.45 per barrel for the first six months of 2023.
Current report
Distribution costs, excluding depreciation and amortization, increased $239 million for the first six months of 2024, or $0.45 per barrel, and include fees paid to MPLX of $1.96 billion and $1.88 billion for the first six months of 2024 and 2023, respectively. The increase was primarily due to higher pipeline tariff rates and logistics fee escalations.
Current report
Other income increased $234 million, or $0.43 per barrel, largely due to insurance proceeds and increased income from our Martinez Renewables joint venture.
Current report
Depreciation and amortization decreased $18 million, or $0.04 per barrel.
Current report
(b)Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.
Current report
In the second quarter of 2024, Midstream segment adjusted EBITDA increased $88 million. Sales and operating revenues increased $185 million mainly due to higher rates, higher pipeline volumes, higher natural gas gathering and processing volumes and contributions from recently acquired assets. Income from equity method investments increased approximately $21 million.
Current report
Midstream segment adjusted EBITDA increased $147 million in the first six months of 2024. Sales and operating revenues increased $246 million mainly due to rate escalations, higher natural gas gathering and processing volumes and contributions from recently acquired assets. Income from equity method investments increased approximately $33 million.
Current report
In the second quarter of 2024, corporate expenses increased $40 million primarily due to approximately $30 million of expense related to decommissioning of non-operating assets.
Current report
Corporate expenses increased $84 million in the first six months of 2024 largely due to an increase of approximately $47 million of performance-based stock compensation expense and $30 million of expense related to decommissioning of non-operating assets.
Current report
Items not Allocated to Segments
Current report
•Cash provided by all other, net, decreased $282 million primarily due to lower income on RINs sales.
Current report
On May 20, 2024, MPLX issued $1.65 billion aggregate principal amount of 2034 Senior Notes in an underwritten public offering. MPLX intends to use the net proceeds from the issuance of the 2034 Senior Notes to repay, redeem or otherwise retire some or all of (i) MPLX's outstanding $1,149 million aggregate principal amount of 4.875 percent senior notes due December 2024, (ii) MarkWest's outstanding $1 million aggregate principal amount of 4.875 percent senior notes due December 2024 and (iii) MPLX's outstanding $500 million aggregate principal amount of 4.000 percent senior notes due February 2025, and in the interim may use such net proceeds for general partnership purposes.
Removed paragraphs (10)
Previous report
Globally, oil demand is at a record high, as the need for affordable and reliable energy increases throughout the world. In the first quarter, global refined product inventories supported a constructive refining environment. In addition, global energy markets continue to experience disruptions resulting from regional conflicts, such as in the Middle East, Russia and Ukraine. We are unable to predict the potential effects that the continuance or escalation of the military conflicts, and related sanctions or market disruptions on shipping and energy costs, may have on our financial position and results.
Previous report
Additionally, on March 26 2024, MPLX entered into a definitive agreement to strategically combine the Whistler Pipeline and Rio Bravo Pipeline project in a newly formed joint venture. This will expand MPLX’s Permian natural gas value chain, increasing its footprint in the region for future growth. The transaction is expected to close in the second quarter of 2024, subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions.
Previous report
Other
Previous report
Succession Planning
Previous report
As previously disclosed, MPC maintains a mandatory retirement policy that, absent a waiver or extension, requires an executive officer to retire from service to the company coincident with, or immediately following, the first of the month after such executive officer reaches age 65 (the "Policy"). Michael J. Hennigan, our Chief Executive Officer, will reach mandatory retirement on August 1, 2024. Accordingly, the MPC Board of Directors, with a focus on the long-term strategic direction of the company, is engaged in appropriate succession planning activities, including, among other customary steps, the review of succession candidates, as well as consideration of any waiver or extension of the Policy respecting Mr. Hennigan.
Previous report
Net income attributable to MPC decreased $1.79 billion in the first quarter of 2024 compared to the first quarter of 2023 primarily due to lower Refining & Marketing margins and higher turnaround costs, partially offset by a decreased provision for income taxes.
Previous report
Depreciation and amortization increased $0.08 per barrel due to lower throughput.
Previous report
(b)Includes amounts related to MPLX operated unconsolidated equity method investments on a 100 percent basis.
Previous report
In the first quarter of 2024, Midstream segment adjusted EBITDA increased $59 million. Sales and operating revenues increased $61 million mainly due to higher rates and higher processing volumes, partially offset by lower throughputs due to refining turnaround activity and lower NGL prices. Purchased product costs decreased $37 million, primarily due to lower NGL volumes of $23 million and lower NGL prices of $18 million, and income from equity method investments increased approximately $12 million.
Previous report
In the first quarter of 2024, corporate expenses increased $44 million primarily due to increased equity compensation of $33 million which includes a $26 million increase in stock compensation expense driven by the fair value remeasurement of outstanding performance-based stock units.
Reworded paragraphs (64)
Previous wording
•environmental, social and governance, which we refer to as “ESG”, plans and goals, including those related to greenhouse gas emissions and intensity, freshwater withdraw intensity, diversity and inclusion and ESG reporting;
Current wording
•environmental, social and governance (“ESG”) plans and goals, including those related to greenhouse gas emissions and intensity, freshwater withdraw intensity, diversity and inclusion and ESG reporting;
Previous wording
•consumer demand for refined products, natural gas, renewables and natural gas liquids, such as ethane, propane, butanes and natural gasoline, which we refer to as “NGLs”;
Current wording
•consumer demand for refined products, natural gas, renewables and natural gas liquids, such as ethane, propane, butanes and natural gasoline;
Previous wording
In June 2023, the California legislature adopted and implemented certain provisions of Senate Bill No.2 (such statute, together with any regulations contemplated or issued thereunder, “SB X1-2”), which authorizes the CEC to establish a “maximum gross gasoline refining margin” with respect to refining activities in California, as well as establish penalties for refiners for exceeding the yet to be issued margin cap. The law further expands on existing reporting requirements for refiners to the CEC. As of the first quarter of 2024, the CEC is proceeding with rulemaking activity (i) on a maximum gross gasoline refining margin and penalty structure, and (ii) that is focused on refinery maintenance and turnarounds. We will evaluate the impact that SB X1-2 and any associated forthcoming CEC regulations may have on our current or anticipated future operations in California and results of operations when SB X1-2 is fully implemented.
Current wording
In June 2023, the California legislature adopted and implemented certain provisions of Senate Bill No.2 (such statute, together with any regulations contemplated or issued thereunder, “SB X1-2”), which authorizes the CEC to establish a “maximum gross gasoline refining margin” with respect to refining activities in California, as well as establish penalties for refiners for exceeding the yet to be issued margin cap. The law further expands on existing reporting requirements for refiners to the CEC. We will evaluate the impact that SB X1-2 and any associated forthcoming CEC regulations may have on our current or anticipated future operations in California and results of operations when SB X1-2 is fully implemented.
Previous wording
On March 22, 2024, MPLX used $625 million of cash on hand to purchase additional ownership interest in existing joint ventures and gathering assets which will enhance our position in the Utica basin. Prior to the acquisition, MPLX owned an indirect interest in OGC and a direct interest in OCC and now owns a combined 73 percent interest in OGC and a 100 percent interest in OCC, and a dry gas gathering system in the Utica basin.
Current wording
On March 22, 2024, MPLX used $625 million of cash on hand to purchase additional ownership interest in existing joint ventures and gathering assets, which will enhance MPLX’s position in the Utica basin. Prior to the acquisition, MPLX owned an indirect interest in OGC and a direct interest in OCC and now owns a combined 73 percent interest in OGC and a 100 percent interest in OCC, and a dry gas gathering system in the Utica basin.
Previous wording
On April 30, 2024, we announced that our board of directors approved an additional $5.0 billion share repurchase authorization. The share repurchase authorization has no expiration date. Future repurchases under the authorization will depend on the macro environment, cash available after opportunities for capital investment and growth of the business and market conditions. As of March 31, 2024, MPC had $4.63 billion remaining under its share repurchase authorizations.
Current wording
On April 30, 2024, we announced that our board of directors approved an additional $5.0 billion share repurchase authorization. The share repurchase authorization has no expiration date. Future repurchases under the authorization will depend on the macro environment, cash available after opportunities for capital investment and growth of the business and market conditions. As of June 30, 2024, MPC had $6.74 billion remaining under its share repurchase authorizations.
Previous wording
See Note 8 and Note 24 to the unaudited consolidated financial statements for further discussion of our share repurchase authorizations.
Current wording
See Note 8 to the unaudited consolidated financial statements for further discussion of our share repurchase authorizations.
Previous wording
Net income attributable to MPC was $937 million, or $2.58 per diluted share, in the first quarter of 2024 compared to $2.72 billion, or $6.09 per diluted share, for the first quarter of 2023. The decrease in net income attributable to MPC was largely due to lower Refining & Marketing margins and higher turnaround costs, partially offset by a decreased provision for income taxes.
Current wording
Net income attributable to MPC was $1.52 billion, or $4.33 per diluted share, in the second quarter of 2024 compared to $2.23 billion, or $5.32 per diluted share, for the second quarter of 2023 and $2.45 billion, or $6.88 per diluted share, in the first six months of 2024 compared to $4.95 billion, or $11.44 per diluted share, in the first six months of 2023. The decreases in net income attributable to MPC were largely due to lower Refining & Marketing margins, partially offset by a decreased provision for income taxes.
Previous wording
Refer to the Results of Operations section for a discussion of consolidated financial results and Segment Results for the first quarter of 2024 as compared to the first quarter of 2023.
Current wording
Refer to the Results of Operations section for a discussion of consolidated financial results and Segment Results for the second quarter of 2024 as compared to the second quarter of 2023 and the first six months of 2024 compared to the first six months of 2023.
Previous wording
We owned approximately 647 million MPLX common units as of March 31, 2024, with a market value of $26.91 billion based on the March 28, 2024 closing price of $41.56 per common unit. On April 23, 2024, MPLX declared a quarterly cash distribution of $0.8500 per common unit payable on May 13, 2024, to unitholders of record on May 3, 2024. As a result, MPC’s portion of this distribution is approximately $550 million.
Current wording
We owned approximately 647 million MPLX common units as of June 30, 2024, with a market value of $27.57 billion based on the June 28, 2024 closing price of $42.59 per common unit. On July 30, 2024, MPLX declared a quarterly cash distribution of $0.8500 per common unit payable on August 16, 2024, to unitholders of record on August 9, 2024. MPC’s portion of this distribution is approximately $551 million.
Previous wording
We received limited partner distributions of $550 million from MPLX in the three months ended March 31, 2024 and $502 million in the three months ended March 31, 2023.
Current wording
We received limited partner distributions of $1.10 billion from MPLX in the six months ended June 30, 2024 and $1.0 billion in the six months ended June 30, 2023.
Previous wording
During the three months ended March 31, 2024, MPLX repurchased approximately 2 million MPLX common units at an average cost per unit of $40.04 and paid $75 million of cash. As of March 31, 2024, approximately $771 million remained available under the authorization for future unit repurchases.
Current wording
During the six months ended June 30, 2024, MPLX repurchased approximately 4 million MPLX common units at an average cost per unit of $40.56 and paid $150 million of cash. As of June 30, 2024, approximately $696 million remained available under the authorization for future unit repurchases.
Previous wording
(a)Crack spread based on 40 percent MEH, 40 percent WTI and 20 percent ANS with Gulf Coast, Mid-Continent and West Coast product pricing, respectively, and assumes all other differentials and pricing relationships remain unchanged.
Current wording
(a)Crack spread based on 42 percent MEH, 40 percent WTI and 18 percent ANS with Gulf Coast, Mid-Continent and West Coast product pricing, respectively, and assumes all other differentials and pricing relationships remain unchanged.
Previous wording
•decreased sales and other operating revenues of $2.16 billion primarily due to decreased Refining & Marketing segment average refined product sales prices of $0.18 per gallon and decreased refined product sales volumes of 75 mbpd, largely due to lower throughputs as a result of higher turnaround activity;
Current wording
•increased sales and other operating revenues of $1.57 billion primarily due to increased refined product sales volumes of 161 mbpd, partially offset by decreased Refining & Marketing segment average refined product sales prices of $0.02 per gallon;
Previous wording
Costs and expenses increased $411 million primarily due to:
Current wording
Costs and expenses increased $2.32 billion primarily due to:
Previous wording
•increased selling, general and administrative expenses of $88 million primarily due to increased equity compensation.
Current wording
•increased selling, general and administrative expenses of $119 million primarily due to $30 million of expense related to decommissioning of non-operating assets and increases in equity compensation of $24 million, contract services of $24 million and salaries and employee related costs of $19 million.
Previous wording
We recorded a combined federal, state and foreign income tax provision of $293 million for the three months ended March 31, 2024, which was lower than the U.S. statutory rate primarily due to permanent tax benefits related to net income attributable to noncontrolling interests offset by state taxes. We recorded a combined federal, state and foreign income tax provision of $823 million for the three months ended March 31, 2023, which was higher than the U.S. statutory rate primarily due to state taxes offset by permanent tax benefits related to net income attributable to noncontrolling interests.
Current wording
We recorded a combined federal, state and foreign income tax provision of $373 million for the three months ended June 30, 2024, which was lower than the U.S. statutory rate primarily due to permanent tax benefits related to net income attributable to noncontrolling interests offset by state taxes. We recorded a combined federal, state and foreign income tax provision of $583 million for the three months ended June 30, 2023, which was lower than the U.S. statutory rate primarily due to permanent tax benefits related to net income attributable to noncontrolling interests, a benefit related to foreign derived intangible income, offset by state taxes.
Previous wording
Revenues and other income decreased $1.87 billion primarily due to:
Current wording
Revenues and other income decreased $328 million primarily due to:
Previous wording
•increased income from equity method investments of $71 million primarily due to increased income from our Martinez Renewables joint venture; and
Current wording
•increased income from equity method investments of $245 million primarily due to the gain on sale of assets resulting from the Whistler Joint Venture Transaction and increased income from our Martinez Renewables joint venture; and
Previous wording
•increased other income of $204 million largely due to insurance proceeds and higher income on RIN sales.
Current wording
•increased other income of $11 million mainly due to insurance proceeds offset by lower income on RINs sales.
Previous wording
•increased cost of revenues of $299 million mainly due to higher contract services and material and supply expenses related to increased turnaround activity; and
Current wording
•increased cost of revenues of $2.48 billion primarily due to higher crude oil costs and higher contract services and material and supply expenses related to increased turnaround activity, partially offset by a decrease in finished product purchases; and
Previous wording
The following shows the percentage of segment adjusted EBITDA by segment for the three months ended March 31, 2024 and 2023.
Current wording
The following shows the percentage of segment adjusted EBITDA by segment for the six months ended June 30, 2024 and 2023.
Previous wording
The following includes key financial and operating data for the first quarter of 2024 compared to the first quarter of 2023.
Current wording
The following includes key financial and operating data for the second quarter of 2024 compared to the second quarter of 2023 and the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Previous wording
(b)See “Non-GAAP Measures” section for reconciliation and further information regarding this non-GAAP measure.
Current wording
(b)See “Non-GAAP Financial Measure” section for reconciliation and further information regarding this non-GAAP financial measure.
Previous wording
(a) Blended 3-2-1 Mid-Continent/USGC/West Coast crack spread is 40/40/20 percent in 2024 and 2023.
Current wording
(a) Blended 3-2-1 Mid-Continent/USGC/West Coast crack spread is 40/42/18 percent effective April 1, 2024 and 40/40/20 percent for prior periods.
Previous wording
Net refinery throughput decreased 173 mbpd during the first quarter of 2024 largely due to increased turnaround activity during the quarter.
Current wording
Net refinery throughput increased 140 mbpd during the second quarter of 2024 largely due to decreased turnaround activity during the quarter.
Previous wording
Refining & Marketing segment adjusted EBITDA decreased $1.98 billion primarily due to decreases in per barrel margins and throughput. Refining & Marketing segment adjusted EBITDA was $7.73 per barrel for the first quarter of 2024, versus $15.09 per barrel for the first quarter of 2023.
Current wording
Refining & Marketing segment adjusted EBITDA decreased $1.19 billion primarily due to decreases in per barrel margins in addition to increased distribution costs, excluding depreciation and amortization. Refining & Marketing segment adjusted EBITDA was $7.07 per barrel for the second quarter of 2024, versus $11.88 per barrel for the second quarter of 2023.
Previous wording
Refining & Marketing margin was $18.99 per barrel for the first quarter of 2024 compared to $26.15 per barrel for the first quarter of 2023. Refining & Marketing margin is affected by our performance against the market indicators shown earlier, which use spot market values and an estimated mix of crude purchases and product sales. Based on the market indicators and our crude oil throughput, we estimate a net negative impact of approximately $2 billion on Refining & Marketing margin for the first quarter of 2024 compared to the first quarter of 2023, primarily due to narrower crack spreads. Our reported Refining & Marketing margin differs from market indicators due to the mix of crudes purchased and their costs, the effect of market structure on our crude oil acquisition prices, the effect of RIN prices on the crack spread, and other items like refinery yields, other feedstock variances and fuel margin from sales to direct dealers. These factors had an estimated net negative effect of approximately $300 million on Refining & Marketing segment adjusted EBITDA in the first quarter of 2024 compared to the first quarter of 2023.
Current wording
Refining & Marketing margin was $17.37 per barrel for the second quarter of 2024 compared to $22.10 per barrel for the second quarter of 2023. Refining & Marketing margin is affected by our performance against the market indicators shown earlier, which use spot market values and an estimated mix of crude purchases and product sales. Based on the market indicators and our crude oil throughput, we estimate a net negative impact of approximately $1 billion on Refining & Marketing margin for the second quarter of 2024 compared to the second quarter of 2023, primarily due to narrower crack spreads. Our reported Refining & Marketing margin differs from market indicators due to the mix of crudes purchased and their costs, the effect of market structure on our crude oil acquisition prices, the effect of RIN prices on the crack spread, and other items like refinery yields, other feedstock variances and fuel margin from sales to direct dealers. These factors had an estimated net negative effect of approximately $100 million on Refining & Marketing segment adjusted EBITDA in the second quarter of 2024 compared to the second quarter of 2023.
Previous wording
Distribution costs, excluding depreciation and amortization, increased $0.69 per barrel, or $98 million, and include fees paid to MPLX of $967 million and $935 million for the first quarter of 2024 and 2023, respectively. The per barrel increase was primarily due to higher pipeline tariff rates and logistics fee escalations and lower throughput.
Current wording
Distribution costs, excluding depreciation and amortization, increased $0.27 per barrel, or $141 million, and include fees paid to MPLX of $990 million and $946 million for the second quarter of 2024 and 2023, respectively. The per barrel increase was primarily due to higher pipeline tariff rates and logistics fee escalations.
Previous wording
Refining & Marketing segment revenues decreased $2.17 billion primarily due to decreased average refined product sales prices of $0.18 per gallon and decreased refined product sales volumes of 75 mbpd.
Current wording
Refining & Marketing segment revenues decreased $668 million primarily due to decreased average refined product sales prices of $0.09 per gallon, partially offset by increased refined product sales volumes of 43 mbpd.
Previous wording
For the three months ended March 31, 2024, refining operating costs, excluding depreciation and amortization, increased $0.46 per barrel, or $40 million, primarily driven by lower throughput and higher expenses for projects conducted during turnaround activity.
Current wording
For the six months ended June 30, 2024, refining operating costs, excluding depreciation and amortization, increased $54 million, or $0.10 per barrel, primarily driven by higher expenses for projects conducted during turnaround activity and lower throughput.
Previous wording
Refining planned turnaround costs increased $1.27 per barrel, or $291 million, due to the scope and timing of turnaround activity and lower throughput.
Current wording
Refining planned turnaround costs increased $82 million, or $0.16 per barrel, due to the scope and timing of turnaround activity.
Previous wording
We purchase RINs to satisfy a portion of our RFS2 compliance. Our expenses associated with purchased RINs were $301 million and $467 million in the first quarter of 2024 and 2023, respectively. The RINs expense is included in Refining & Marketing margin. The decrease in the first quarter of 2024 was primarily due to increased RINs generated and acquired from our Martinez Renewables joint venture and lower obligated volume.
Current wording
We purchase RINs to satisfy a portion of our RFS2 compliance. Our expenses associated with purchased RINs were $594 million and $1.16 billion in the first six months of 2024 and 2023, respectively. The RINs expense is included in Refining & Marketing margin. The decrease in the first six months of 2024 was primarily due to decreased average RINs prices and increased RINs generated and acquired from our Martinez Renewables joint venture.
Previous wording
The following includes key financial and operating data for the first quarter of 2024 compared to the first quarter of 2023.
Current wording
The following includes key financial and operating data for the second quarter of 2024 compared to the second quarter of 2023 and the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Previous wording
(a)Corporate costs consist primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate costs include depreciation and amortization of $24 million and $19 million for the first quarter of 2024 and 2023, respectively.
Current wording
(a)Corporate costs consist primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate costs include depreciation and amortization of $23 million and $19 million for the second quarter of 2024 and 2023, respectively, and $47 million and $38 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
See Note 13 to the unaudited consolidated financial statements for additional information on this acquisition.
Current wording
Gain on sale of assets in the second quarter of 2024 includes $151 million resulting from the Whistler Joint Venture Transaction. See Note 13 to the unaudited consolidated financial statements for additional information on this transaction.
Previous wording
Our consolidated cash and cash equivalents balance was approximately $3.18 billion at March 31, 2024 compared to $5.44 billion at December 31, 2023. Net cash provided by (used in) operating activities, investing activities and financing activities are presented in the following table.
Current wording
Our consolidated cash and cash equivalents balance was approximately $4.44 billion at June 30, 2024 compared to $5.44 billion at December 31, 2023. Net cash provided by (used in) operating activities, investing activities and financing activities are presented in the following table.
Previous wording
Net cash provided by operating activities decreased $2.53 billion in the first three months of 2024 compared to the first three months of 2023. The change in net cash provided by operating activities was primarily due to a decrease in operating results and an unfavorable change in working capital of $764 million, when comparing the change in working capital in both periods.
Current wording
Net cash provided by operating activities decreased $3.27 billion in the first six months of 2024 compared to the first six months of 2023. The change in net cash provided by operating activities was primarily due to a decrease in operating results and an unfavorable change in working capital of $730 million, when comparing the change in working capital in both periods.
Previous wording
For the first three months of 2024, changes in working capital, excluding changes in short-term debt, were a net $389 million use of cash primarily due to the effects of increasing energy commodity prices and volumes at the end of the period on working capital. Accounts payable increased primarily due to increases in crude oil prices and volumes. Current receivables increased primarily due to increases in crude oil volumes and prices and refined product prices, partially offset by a decrease in refined product volumes. Inventories increased primarily due to increases in refined product and crude oil inventory volumes. Additionally, working capital was unfavorably impacted by changes in prepaid assets and current liabilities.
Current wording
For the first six months of 2024, changes in working capital, excluding changes in short-term debt, were a net $152 million source of cash primarily due to the effects of increasing energy commodity prices, partially offset by decreasing volumes at the end of the period on working capital. Accounts payable increased primarily due to increases in crude oil prices. Current receivables increased primarily due to increases in crude oil and refined product prices, partially offset by a decrease in volumes.
Previous wording
For the first three months of 2023, changes in working capital, excluding changes in short-term debt, were a net $375 million source of cash primarily due to the effects of decreasing energy commodity volumes and prices at the end of the period on working capital. Accounts payable decreased primarily due to decreases in crude oil volumes and prices. Inventories increased primarily due to increases in crude oil and refined product inventories. Current receivables decreased primarily due to decreases in crude oil volumes and prices. Additionally, working capital was favorably impacted by changes in income tax receivable.
Current wording
For the first six months of 2023, changes in working capital, excluding changes in short-term debt, were a net $882 million source of cash primarily due to the effects of decreasing energy commodity prices and volumes at the end of the period on working capital. Current receivables decreased primarily due to decreases in crude oil volumes and prices. Additionally, working capital was favorably impacted by changes in income tax receivable. Accounts payable decreased primarily due to decreases in crude oil prices and volumes. Inventories increased primarily due to increases in refined product and crude oil inventories volumes.
Previous wording
Net cash used in investing activities was $824 million in the first three months of 2024 compared to $816 million in the first three months of 2023.
Current wording
Net cash used in investing activities was $807 million in the first six months of 2024 compared to $1.70 billion in the first six months of 2023.
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Current report — wording carried from elsewhere
•decreased sales and other operating revenues of $587 million primarily due to decreased Refining & Marketing segment average refined product sales prices of $0.09 per gallon, partially offset by increased refined product sales volumes of 43 mbpd;
Current report — wording carried from elsewhere
Costs and expenses increased $2.73 billion primarily due to:
Current report — wording carried from elsewhere
We recorded a combined federal, state and foreign income tax provision of $666 million for the six months ended 2024, which was lower than the U.S. statutory rate primarily due to permanent tax benefits related to net income attributable to noncontrolling interests offset by state taxes. We recorded a combined federal, state and foreign income tax provision of $1.41 billion for the six months ended 2023, which was lower than the U.S. statutory rate primarily due to permanent tax benefits related to net income attributable to noncontrolling interests, a benefit related to foreign derived intangible income, offset by state taxes.
Current report — wording carried from elsewhere
Refining planned turnaround costs decreased $0.81 per barrel, or $209 million, due to the scope and timing of turnaround activity and higher throughput.
Current report — wording carried from elsewhere
We purchase RINs to satisfy a portion of our RFS2 compliance. Our expenses associated with purchased RINs were $293 million and $694 million in the second quarter of 2024 and 2023, respectively. The RINs expense is included in Refining & Marketing margin. The decrease in the second quarter of 2024 was primarily due to decreased average RINs prices in addition to increased RINs generated and acquired from our Dickinson renewable fuels facility and Martinez Renewables joint venture.
Current report — wording carried from elsewhere
Refining & Marketing margin was $18.12 per barrel for the first six months of 2024 compared to $24.08 per barrel for the first six months of 2023. Refining & Marketing margin is affected by the market indicators shown earlier, which use spot market values and an estimated mix of crude purchases and product sales. Based on the market indicators and our crude oil throughput, we estimate a net negative impact of approximately $3 billion on Refining & Marketing margin for the first six months of 2024 compared to the first six months of 2023, primarily due to narrower crack spreads. Our reported Refining & Marketing margin differs from market indicators due to the mix of crudes purchased and their costs, market structure on our crude oil acquisition prices, RIN prices on the crack spread, and other items like refinery yields, other feedstock variances and fuel margin from sales to direct dealers. These factors had an estimated net negative effect of approximately $300 million on Refining & Marketing segment income in the first six months of 2024 compared to the first six months of 2023.
Current report — wording carried from elsewhere
Inventories increased primarily due to increases in crude oil and refined product inventory volumes. Additionally, working capital was favorably impacted by changes in income tax receivable and unfavorably impacted by changes in prepaid assets and current liabilities.