On August 6, 2024, Marathon Petroleum Corp (MPC, Financial) released its 8-K filing for the second quarter of 2024. Marathon Petroleum is an independent refiner with 13 refineries in the midcontinent, West Coast, and Gulf Coast of the United States with a total throughput capacity of 3.0 million barrels per day. Its Dickinson, North Dakota, facility produces 184 million gallons a year of renewable diesel, and its Martinez, California, facility will have the ability to produce 730 million gallons a year of renewable diesel once converted. The firm also owns and operates midstream assets primarily through its listed master limited partnership, MPLX.
Performance Overview
Marathon Petroleum Corp (MPC, Financial) reported a net income attributable to MPC of $1.5 billion, or $4.33 per diluted share, for the second quarter of 2024. This compares to a net income of $2.2 billion, or $5.32 per diluted share, for the same period in 2023. Adjusted net income was $1.4 billion, or $4.12 per diluted share, for the second quarter of 2024.
The company achieved an adjusted EBITDA of $3.4 billion, down from $4.5 billion in the second quarter of 2023. Net cash provided by operating activities was $3.2 billion, reflecting strong operational and commercial performance.
Segment Performance
In the Refining & Marketing segment, adjusted EBITDA was $2.0 billion, compared to $3.2 billion in the second quarter of 2023. The decrease was primarily driven by lower market crack spreads. The segment's margin was $17.37 per barrel, down from $22.10 per barrel in the previous year. Crude capacity utilization was approximately 97%, resulting in a total throughput of 3.1 million barrels per day.
The Midstream segment reported an adjusted EBITDA of $1.6 billion, up from $1.5 billion in the second quarter of 2023. This increase was driven by higher rates, higher volumes, and contributions from recently acquired assets.
Financial Achievements
Marathon Petroleum Corp (MPC, Financial) returned $3.2 billion of capital to shareholders through $2.9 billion of share repurchases and $290 million of dividends during the quarter. The company also received a $550 million quarterly distribution from MPLX, demonstrating the value of their strategic relationship.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income Attributable to MPC | $1.5 billion | $2.2 billion |
| Adjusted Net Income | $1.4 billion | Not Available |
| Adjusted EBITDA | $3.4 billion | $4.5 billion |
| Net Cash Provided by Operating Activities | $3.2 billion | Not Available |
Strategic and Operational Updates
MPC's 2024 capital spending plan includes high-return investments at its Los Angeles and Galveston Bay refineries. Additionally, MPLX is advancing growth projects in the Permian and Marcellus basins. The company is also executing shorter-term projects aimed at enhancing refinery yields, improving energy efficiency, and lowering costs.
Analysis
Marathon Petroleum Corp (MPC, Financial) has demonstrated strong operational performance despite a decline in net income and adjusted EBITDA compared to the previous year. The company's strategic investments and capital returns highlight its commitment to delivering value to shareholders. However, the decrease in market crack spreads and lower segment margins pose challenges that the company will need to navigate in the coming quarters.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Marathon Petroleum Corp for further details.
