Marathon Petroleum Corp.
(MPC) reports its financial results for the second quarter of 2024, revealing attributable net income of USD 1.5 billion, or USD 4.33 per diluted share.
This figure is lower than the USD 2.2 billion, or USD 5.32 per diluted share, recorded in the second quarter of 2023.
Meanwhile, adjusted net income was USD 1.4 billion, or USD 4.12 per diluted share.
Operational and Financial Performance
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter came to USD 3.4 billion, compared with USD 4.5 billion for the same period last year.
This decline was mainly due to lower market margins.
Maryann Mannen, President and CEO of MPC, says: “Our second-quarter results reflect our commitment to top-notch operational and commercial performance.” The company generated USD 3.2 billion in net cash from operating activities and returned USD 3.2 billion to shareholders through share buybacks and dividends.
Segment analysis
The Refining & Marketing segment posted adjusted EBITDA of USD 2.0 billion, compared with USD 3.2 billion in the second quarter of 2023.
The segment’s margin was USD 17.37 per barrel, down from USD 22.10 per barrel the previous year.
Crude processing capacity is approximately 97% utilized, with a total throughput of 3.1 million barrels per day. The Midstream segment, on the other hand, showed a solid performance with adjusted EBITDA of USD 1.6 billion, up from USD 1.5 billion in 2023.
This growth is attributed to higher rates, increased volumes and contributions from recently acquired assets.
Financial position and return of capital
At June 30, 2024, MPC had USD 8.5 billion in cash and cash equivalents, plus USD 5 billion available on its bank credit line.
In the second quarter, the company returned around USD 3.2 billion to shareholders, comprising USD 2.9 billion in share buybacks and USD 290 million in dividends.
At the end of July, MPC bought back a further 0.9 billion USD worth of its own shares.
Strategic Projects and Outlook
MPC continues its investment plan for 2024 with high-yield projects at its Los Angeles and Galveston Bay refineries.
At the same time, short-term projects to improve refinery yields, energy efficiency and cost reduction are underway.
MPLX, an MPC subsidiary, is developing growth projects in the Permian and Marcellus basins.
The start of operations at the Preakness II processing plant and the acquisition of an additional interest in the BANGL pipeline strengthen MPLX’s positions in these strategic regions.
MPLX and its partners announce the final investment decision (FID) for the Blackcomb natural gas pipeline, linking the Permian to domestic and export markets along the Gulf Coast.
These initiatives should support Marathon Petroleum’s future growth while offering attractive returns for shareholders.
Marathon Petroleum’s ability to effectively manage strategic investments and continued growth in key segments reinforces its position as a major player in the energy sector.
