Marathon Petroleum Corp
For the period ended Dec 31, 2024. Filed Feb 27, 2025.
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FY2024 · Filed Feb 27, 2025
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18. Derivatives
- Derivatives
For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 17. See Note 2 for a discussion of the types of derivatives we use and the reasons for them. We do not designate any of our commodity derivative instruments as hedges for accounting purposes.
The following table presents the fair value of derivative instruments as of December 31, 2024 and 2023 and the line items in the consolidated balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets.
| (Millions of dollars) | December 31, 2024 | December 31, 2023 | ||
|---|---|---|---|---|
| Balance Sheet Location | Asset | Liability | Asset | Liability |
| Commodity derivatives | ||||
| Other current assets | $139 | $144 | $244 | $249 |
| Other current liabilities(a) | — | 10 | — | 11 |
| Deferred credits and other liabilities(a) | — | 48 | — | 50 |
(a)Includes embedded derivatives.
The table below summarizes open commodity derivative contracts for crude oil, refined products, blending products and soybean oil as of December 31, 2024.
| Percentage of contracts that expire next quarter · Position | |||
|---|---|---|---|
| (Units in thousands of barrels) · Long · Short | |||
| Exchange-traded(a) | |||
| Crude oil | 54.5% | 47,351 | 43,785 |
| Refined products | 82.3% | 18,086 | 21,973 |
| Blending products | 93.5% | 6,061 | 6,121 |
| Soybean oil | 97.9% | 2,295 | 2,888 |
(a)Included in exchange-traded are spread contracts in thousands of barrels: Crude oil -15,975 long and 15,455 short; Refined products -545 long and 325 short and Blending products - 158 long. There are no spread contracts for soybean oil.
The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income:
| (Millions of dollars) | Gain (Loss) | ||
|---|---|---|---|
| Income Statement Location | 2024 | 2023 | 2022 |
| Sales and other operating revenues | $1 | $7 | $— |
| Cost of revenues | (94) | (15) | (58) |
| Other income | 2 | 2 | — |
| Total | $(91) | $(6) | $(58) |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.