On October 31, 2023, Marathon Petroleum Corp (MPC, Financial) released its third-quarter earnings report. The company reported a net income attributable to MPC of $3.3 billion, or $8.28 per diluted share, a decrease from the $4.5 billion, or $9.06 per diluted share, reported for the same period in 2022. Adjusted net income stood at $3.2 billion, or $8.14 per adjusted diluted share.
Financial Performance and Highlights
The company's adjusted EBITDA for Q3 2023 was $5.7 billion, down from $6.8 billion in Q3 2022. Despite the decrease, the company demonstrated strong cash generation with net cash provided by operating activities amounting to $5.0 billion.
MPC's Refining & Marketing segment reported an adjusted EBITDA of $4.4 billion in Q3 2023, down from $5.5 billion in Q3 2022. The decrease was primarily driven by lower market crack spreads. The Midstream segment reported an adjusted EBITDA of $1.5 billion, consistent with the same period in 2022.
Capital Return and Dividends
MPC returned approximately $3.1 billion of capital to shareholders through $2.8 billion of share repurchases and $297 million of dividends in Q3 2023. The company also announced a 10% increase in its quarterly dividend to $0.825 per share and an additional $5 billion share repurchase authorization.
Outlook and Strategic Updates
At the Martinez Renewables LLC fuels facility, construction activities are progressing with the facility expected to produce 730 million gallons per year by the end of 2023. MPC's Midstream segment remains focused on executing strategic priorities of strict capital discipline, fostering a low-cost culture, and optimizing the portfolio.
As of September 30, 2023, MPC had $13.1 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility. With the addition of the new share repurchase authorization, the company has a total of $8.3 billion available under its share repurchase authorizations as of October 27, 2023.
Explore the complete 8-K earnings release (here) from Marathon Petroleum Corp for further details.
