Marathon Petroleum Corp. Reports Fourth-Quarter 2023 Results
PR Newswire
FINDLAY, Ohio, Jan. 30, 2024
FINDLAY, Ohio, Jan. 30, 2024 /PRNewswire/ —
-- Fourth-quarter net income attributable to MPC of $1.5 billion, or $3.84
per diluted share; adjusted net income of $1.5 billion, or $3.98 per
adjusted diluted share
-- Full-year 2023 net income attributable to MPC of $9.7 billion, or $23.63
per diluted share; adjusted net income of $9.7 billion, or $23.63 per
adjusted diluted share
-- Full-year net cash provided by operating activities of $14.1 billion,
supporting the return of $12.8 billion of capital to shareholders in 2023
-- 2024 MPC standalone (excluding MPLX) capital spending outlook of $1.25
billion
Marathon Petroleum Corp. (NYSE: MPC) today reported net income attributable to MPC of $1.5 billion, or $3.84 per diluted share, for the fourth quarter of 2023. This compares to net income attributable to MPC of $3.3 billion, or $7.09 per diluted share, for the fourth quarter of 2022.
Adjusted net income was $1.5 billion, or $3.98 per diluted share, for the fourth quarter of 2023. This compares to adjusted net income of $3.1 billion, or $6.65 per diluted share, for the fourth quarter of 2022. Adjustments are shown in the accompanying release tables.
The fourth quarter of 2023 adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $3.5 billion, compared with $5.8 billion for the fourth quarter of 2022. Adjustments are shown in the accompanying release tables.
For the full year 2023, net income attributable to MPC was $9.7 billion, or $23.63 per diluted share, compared with net income attributable to MPC of $14.5 billion, or $28.12 per diluted share for the full year 2022. Adjusted net income was $9.7 billion, or $23.63 per diluted share for the full year 2023. This compares to adjusted net income of $13.5 billion, or $26.16 per diluted share for the full year 2022. Adjustments are shown in the accompanying release tables.
“In 2023, the business generated $14.1 billion of net cash from operations, driven by strong operational performance and commercial execution,” said Chief Executive Officer Michael J. Hennigan. “This enabled the return of $12.8 billion of capital to shareholders. We believe MPC is positioned to generate strong through-cycle cash flow with the ability to deliver superior returns to our shareholders.”
Results from Operations
Adjusted EBITDA (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions) 2023 2022 2023 2022
--------------- --------- -------- ---------- ---------
Refining &
Marketing
Segment
Segment income
from
operations $ 1,242 $ 3,910 $ 10,318 $ 16,437
Add:
Depreciation
and
amortization 476 455 1,887 1,850
Refining
planned
turnaround
costs 299 442 1,201 1,122
LIFO inventory
charge
(credit) 145 (176) 145 (148)
--------- -------- ---------- ---------
Refining &
Marketing
segment
adjusted
EBITDA 2,162 4,631 13,551 19,261
--------- -------- ---------- ---------
Midstream
Segment
Segment income
from
operations 1,285 1,088 4,835 4,462
Add:
Depreciation
and
amortization 332 327 1,320 1,310
Garyville
incident
response
(recoveries)
costs (47) -- 16 --
--------- -------- ---------- ---------
Midstream
segment
adjusted
EBITDA 1,570 1,415 6,171 5,772
--------- -------- ---------- ---------
Subtotal 3,732 6,046 19,722 25,033
Corporate (224) (259) (837) (753)
Add:
Depreciation
and
amortization 20 15 100 55
--------- -------- ---------- ---------
Adjusted EBITDA $ 3,528 $ 5,802 $ 18,985 $ 24,335
========= ======== ========== =========
Refining & Marketing (R&M)
Segment adjusted EBITDA was $2.2 billion in the fourth quarter of 2023, versus $4.6 billion for the fourth quarter of 2022. R&M segment adjusted EBITDA was $8.02 per barrel for the fourth quarter of 2023, versus $17.39 per barrel for the fourth quarter of 2022. Segment adjusted EBITDA excludes refining planned turnaround costs, which totaled $299 million in the fourth quarter of 2023 and $442 million in the fourth quarter of 2022. The decrease in segment adjusted EBITDA was driven by lower market crack spreads.
R&M margin was $17.79 per barrel for the fourth quarter of 2023, versus $28.82 per barrel for the fourth quarter of 2022. Crude capacity utilization was approximately 91%, resulting in total throughput of 2.9 million barrels per day for the fourth quarter of 2023.
Refining operating costs per barrel were $5.67 for the fourth quarter of 2023, versus $5.62 for the fourth quarter of 2022.
Midstream
Segment adjusted EBITDA was $1.6 billion in the fourth quarter of 2023, versus $1.4 billion for the fourth quarter of 2022. The results were primarily driven by higher total throughputs and higher rates.
Corporate and Items Not Allocated
Corporate expenses totaled $224 million in the fourth quarter of 2023, compared with $259 million in the fourth quarter of 2022.
Financial Position, Liquidity, and Return of Capital
As of December 31, 2023, MPC had $10.2 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility.
In the fourth quarter, the company returned approximately $2.8 billion of capital to shareholders through $2.5 billion of share repurchases and $311 million of dividends. Through January 26, the company repurchased an additional $0.9 billion of company shares. The company currently has approximately $5.9 billion available under its share repurchase authorizations.
Strategic and Operations Update
MPC’s standalone (excluding MPLX) capital spending outlook for 2024 is $1.25 billion. Approximately 65% of overall spending is focused on growth capital and 35% on sustaining capital. MPC’s $825 million of growth capital is focused on opportunities that enhance margins and reduce cost.
At its Los Angeles refinery, the company is advancing improvements to enhance the competitiveness of the refinery by improving reliability and lowering costs. The improvements focus on integrating and modernizing utility systems and increasing energy efficiency, with the added benefit of addressing new regulation mandating further reductions in emissions. The improvements are expected to be completed by the end of 2025.
At its Galveston Bay refinery, the company is investing to construct a 90,000 barrel per day high-pressure distillate hydrotreater. This project is anticipated to strengthen the competitiveness of the refinery by improving the ability to produce higher value finished products. This project is expected to be completed by the end of 2027.
MPLX announced a capital outlook of $1.1 billion. The capital spending plan focuses on advancing growth projects anchored in the Marcellus and Permian basins. MPLX’s integrated footprints in these basins have positioned the partnership with a steady source of opportunities to expand its value chains, particularly around its natural gas and NGL assets.
2024 Capital Plan ($ millions)
MPC Standalone (excluding MPLX)
Refining & Marketing Segment:
Growth - Traditional $ 475
Growth - Low Carbon 350
Maintenance 375
-----
Refining & Marketing Segment 1,200
Midstream Segment (excluding MPLX) --
Corporate and Other(a) 50
-----
Total MPC Standalone (excluding MPLX) $1,250
-----
MPLX Total(b) $1,100
-----
(a) Does not include capitalized interest
(b) Excludes $285 million of reimbursable capital and approximately $100
million for repayment of MPLX's share of the Bakken Pipeline joint
venture's debt due in 2024.
First Quarter 2024 Outlook
Refining & Marketing Segment:
Refining operating costs per barrel(a) $ 5.85
Distribution costs (in millions) $1,450
Refining planned turnaround costs (in millions) $ 600
Depreciation and amortization (in millions) $ 480
Refinery throughputs (mbpd):
Crude oil refined 2,445
Other charge and blendstocks 240
-----
Total 2,685
Corporate (in millions) $ 185
(a) Excludes refining planned turnaround and depreciation and amortization
expense
Conference Call
At 11:00 a.m. ET today, MPC will hold a conference call and webcast to discuss the reported results and provide an update on company operations. Interested parties may listen by visiting MPC’s website at . A replay of the webcast will be available on the company’s website for two weeks. Financial information, including the earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at .
About Marathon Petroleum Corporation