News Release

Marathon Petroleum Corp. Reports Third-Quarter 2022 Results

11/01/2022

FINDLAY, Ohio, Nov. 1, 2022 /PRNewswire/ --

  • Net income attributable to MPC of $4.5 billion, or $9.06 per diluted share; reported adjusted net income of $3.9 billion, or $7.81 per diluted share
  • Adjusted EBITDA of $6.8 billion; improving operational and commercial execution as the refining system ran at near full utilization to meet demand
  • MPLX increases distribution 10%; MPC expects to receive a total of $2 billion on an annual basis
  • Completed $15 billion return of capital commitment utilizing the proceeds from the Speedway divestiture; repurchased approximately 30% of outstanding shares
  • Announced dividend increase of approximately 30% to $0.75 per share

Marathon Petroleum Corp. (NYSE: MPC) today reported net income attributable to MPC of $4.5 billion, or $9.06 per diluted share, for the third quarter of 2022, compared with net income attributable to MPC of $694 million, or $1.09 per diluted share, for the third quarter of 2021.

Adjusted net income was $3.9 billion, or $7.81 per diluted share, for the third quarter of 2022. This compares to adjusted net income of $464 million, or $0.73 per diluted share, for the third quarter of 2021. Adjusted results for third-quarter 2022 exclude net pre-tax benefits of approximately $1 billion and for third-quarter 2021 exclude pre-tax charges of $48 million. Adjustments are shown in the accompanying release tables.

Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $6.8 billion for the third quarter of 2022, compared with $2.4 billion for the third quarter of 2021.

"Market demand for our products remains strong, and our third-quarter results reflect our improving operational and commercial execution," said President and Chief Executive Officer Michael J. Hennigan.  "We completed our $15 billion share repurchase commitment and announced an increase to our quarterly dividend of approximately 30%."

Results from Operations

Adjusted EBITDA from Continuing and Discontinued Operations (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Refining & Marketing Segment












Segment income from operations

$

4,625


$

509


$

12,527


$

135

Add: Depreciation and amortization


459



462



1,395



1,406

Refining planned turnaround costs


384



205



680



378

Storm impacts




19





50

LIFO inventory charge


28





28



Refining & Marketing segment adjusted EBITDA


5,496



1,195



14,630



1,969













Midstream Segment












Segment income from operations


1,176



1,042



3,374



2,991

Add: Depreciation and amortization


322



329



983



994

Storm impacts




4





20

Midstream segment adjusted EBITDA


1,498



1,375



4,357



4,005













Subtotal


6,994



2,570



18,987



5,974

Corporate


(173)



(186)



(494)



(523)

Add: Depreciation and amortization


13



32



40



95

Adjusted EBITDA from continuing operations

$

6,834


$

2,416


$

18,533


$

5,546













Speedway












Speedway

$


$


$


$

613

Add: Depreciation and amortization








3

Adjusted EBITDA from discontinued operations

$


$


$


$

616













Adjusted EBITDA from continuing and discontinued operations

$

6,834


$

2,416


$

18,533


$

6,162













Refining & Marketing (R&M)

Segment adjusted EBITDA was $5.5 billion in the third quarter of 2022, versus $1.2 billion for the third quarter of 2021. Segment adjusted EBITDA excludes refining planned turnaround costs, which totaled $384 million in the third quarter of 2022 and $205 million in the third quarter of 2021. The increase in segment adjusted EBITDA was driven by higher margins and volumes.

R&M margin was $30.21 per barrel for the third quarter of 2022, versus $14.51 per barrel for the third quarter of 2021. Crude capacity utilization was approximately 98%, resulting in total throughput of 3.0 million barrels per day for the third quarter of 2022. This compares to crude capacity utilization of approximately 93% for the third quarter of 2021, which resulted in total throughput of 2.8 million barrels per day.

Refining operating costs per barrel were $5.63 for the third quarter of 2022, versus $4.97 for the third quarter of 2021. The majority of this increase was driven by higher energy costs, as well as $0.13 per barrel of non-recurring costs recorded in the quarter associated with a multi-year property tax assessment. 

Midstream

Segment adjusted EBITDA was $1.5 billion in the third quarter of 2022, versus $1.4 billion for the third quarter of 2021, up roughly 9% year over year.  

Corporate and Items Not Allocated

Corporate expenses totaled $173 million in the third quarter of 2022, compared with $186 million in the third quarter of 2021. 

In the third quarter of 2022, items not allocated to segments include a $549 million non-cash gain for the contribution of the Martinez assets to the Martinez Renewables joint venture and a $509 million non-cash gain related to an MPLX LP (NYSE:MPLX) third-party contract reclassification(a). These have been excluded from the company's adjusted results.

(a) Gain triggered from the accounting for the reclassification from an operating to a sales-type lease.

Speedway

This business was sold on May 14, 2021. Historic results are reported as discontinued operations.

Financial Position, Liquidity, and Return of Capital

As of September 30, 2022, MPC had $11.1 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility. MPC debt at the end of the third quarter of 2022 totaled $6.9 billion, excluding MPLX debt. MPC's gross debt-to-capital ratio, excluding MPLX debt, was 21% at the end of the third quarter of 2022.

In October, MPC completed its $15 billion return of capital commitment, having repurchased approximately 30% of outstanding shares as of the program commencement. The company has approximately $5 billion remaining available under its current share repurchase authorizations.

Today, MPC announced that the Board of Directors approved an increase to the quarterly dividend to $0.75 per share. The dividend is payable December 12, 2022 to shareholders of record on November 16, 2022.  

Strategic and Operations Update

The Martinez Renewables joint venture with Neste closed on September 21, 2022. All required closing conditions were met, including the receipt of the necessary permits and regulatory approvals. The first phase of the Martinez renewables project facility is expected to be mechanically complete by year-end 2022. Initial production capacity is expected to be 260 million gallons per year of renewable fuels. Pretreatment capabilities are expected to come online in the second half of 2023 and the facility is expected to be capable of producing 730 million gallons per year by the end of 2023.

The Midstream segment remains focused on executing the strategic priorities of strict capital discipline, embedding a low-cost culture, and optimizing the portfolio. MPLX continues to evaluate opportunities to meet the needs of today and participate in an energy-diverse future.

Fourth Quarter 2022 Outlook

Refining & Marketing Segment:



Refining operating costs per barrel(a)

$

5.30

Distribution costs (in millions)

$

1,350

Refining planned turnaround costs (in millions)

$

430

Depreciation and amortization (in millions)

$

460




Refinery throughputs (mbpd):



    Crude oil refined


2,690

    Other charge and blendstocks


215

        Total


2,905




Corporate (in millions)

$

170




(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 www.marathonpetroleum.com. 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 www.marathonpetroleum.com.

About Marathon Petroleum Corporation

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.

Investor Relations Contacts: (419) 421-2071
Kristina Kazarian, Vice President
Brian Worthington, Manager
Kenan Kinsey, Analyst

Media Contact: (419) 421-3312
Jamal Kheiry, Communications Manager

References to Earnings and Defined Terms

References to earnings mean net income attributable to MPC from the statements of income. Unless otherwise indicated, references to earnings and earnings per share are MPC's share after excluding amounts attributable to noncontrolling interests.

Forward-Looking Statements

This press release contains forward-looking statements regarding MPC. These forward-looking statements may relate to, among other things, MPC's expectations, estimates and projections concerning its business and operations, financial priorities, strategic plans and initiatives, capital return plans, operating cost reduction objectives, and environmental, social and governance  ("ESG") plans and goals, including those related to greenhouse gas emissions, diversity and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors. In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as "anticipate," "believe," "commitment," "could," "design," "estimate," "expect," "forecast," "goal," "guidance,"  "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project,"  "prospective," "pursue," "seek," "should," "strategy," "target," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPC cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPC, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPC's actual results to differ materially from those implied in the forward-looking statements include but are not limited to: the continuance or escalation of the military conflict between Russia and Ukraine and related sanctions and market disruptions; general economic, political or regulatory developments, including inflation, rising interest rates and changes in governmental policies relating to refined petroleum products, crude oil, natural gas or NGLs, or taxation; continued or further volatility in and degradation of general economic, market, industry or business conditions; the magnitude, duration and extent of future resurgences of the COVID-19 pandemic and its effects; the regional, national and worldwide demand for refined products and related margins; the regional, national or worldwide availability and pricing of crude oil, natural gas, NGLs and other feedstocks and related pricing differentials; the success or timing of completion of ongoing or anticipated projects or transactions, including the conversion of the Martinez Refinery to a renewable fuels facility, and the timing and ability to obtain necessary regulatory approvals and permits and to satisfy other conditions necessary to complete such projects or consummate such transactions within the expected timeframe if at all; the availability of desirable strategic alternatives to optimize portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; our ability to successfully implement our sustainable energy strategy and principles, achieve our ESG plans and goals and realize the expected benefits thereof; accidents or other unscheduled shutdowns affecting our refineries, machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the impact of adverse market conditions or other similar risks to those identified herein affecting MPLX; and the factors set forth under the heading "Risk Factors" in MPC's and MPLX's Annual Reports on Form 10-K for the year ended Dec. 31, 2021, and in other filings with the SEC. Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.

Copies of MPC's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office. Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.

Consolidated Statements of Income (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions, except per-share data)


2022



2021



2022



2021

Revenues and other income:












   Sales and other operating revenues

$

45,787


$

32,321


$

137,640


$

84,647

 Income from equity method investments


180



122



469



306

 Net gain on disposal of assets


1,051





1,072



3

   Other income


219



170



678



366

       Total revenues and other income


47,237



32,613



139,859



85,322

Costs and expenses:












   Cost of revenues (excludes items below)


38,821



29,563



118,096



77,824

   Depreciation and amortization


794



836



2,418



2,551

   Selling, general and administrative expenses


712



681



2,009



1,881

   Other taxes


224



193



606



544

       Total costs and expenses


40,551



31,273



123,129



82,800

Income from continuing operations


6,686



1,340



16,730



2,522

Net interest and other financial costs


240



328



814



1,053

Income from continuing operations before income taxes


6,446



1,012



15,916



1,469

Provision (benefit) for income taxes on continuing operations


1,426



(18)



3,507



21

Income from continuing operations, net of tax


5,020



1,030



12,409



1,448

Income from discontinued operations, net of tax








8,448

Net income


5,020



1,030



12,409



9,896

Less net income attributable to:












Redeemable noncontrolling interest


23



38



65



79

Noncontrolling interests


520



298



1,149



853

Net income attributable to MPC

$

4,477


$

694


$

11,195


$

8,964













Per share data












Basic:












Continuing operations

$

9.12


$

1.10


$

21.18


$

0.80

Discontinued operations








13.10

Net income per share

$

9.12


$

1.10


$

21.18


$

13.90













  Weighted average shares outstanding (in millions)


491



633



528



645

Diluted:












Continuing operations

$

9.06


$

1.09


$

21.04


$

0.79

Discontinued operations








13.02

Net income per share

$

9.06


$

1.09


$

21.04


$

13.81













Weighted average shares outstanding (in millions)


494



637



532



649













 

Income Summary for Continuing Operations (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Refining & Marketing

$

4,625


$

509


$

12,527


$

135

Midstream


1,176



1,042



3,374



2,991

Corporate


(173)



(186)



(494)



(523)

Income from continuing operations before items not allocated to segments


5,628



1,365



15,407



2,603

Items not allocated to segments:












      Gain on sale of assets


1,058





1,058



      Renewable volume obligation requirements






238



      Litigation






27



      Impairment and idling expenses




(25)





(81)

Income from continuing operations

$

6,686


$

1,340


$

16,730


$

2,522













 

Income Summary for Discontinued Operations (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Speedway

$


$


$


$

613

Gain on sale of assets








11,682

Transaction-related costs








(46)

Income from discontinued operations

$


$


$


$

12,249













 

Capital Expenditures and Investments (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Refining & Marketing

$

445


$

228


$

1,004


$

538

Midstream


267



190



772



506

Corporate(a)


77



46



163



120

Speedway








177

Total

$

789


$

464


$

1,939


$

1,341













(a)   

Includes capitalized interest of $28 million, $18 million, $76 million and $48 million for the third quarter 2022, the third quarter 2021, the first nine months of 2022 and the first nine months of 2021, respectively.

 

Refining & Marketing Operating Statistics (unaudited)

Dollar per Barrel of Net Refinery Throughput


Three Months Ended 

September 30,



Nine Months Ended 

September 30,



2022



2021



2022



2021

Refining & Marketing margin, excluding LIFO inventory charge(a)

$

30.31


$

14.51


$

28.08


$

12.46

LIFO inventory charge


(0.10)





(0.03)



Refining & Marketing margin(a)


30.21



14.51



28.05



12.46

Less:












Refining operating costs, excluding storm impacts(b)


5.63



4.97



5.35



4.89

Distribution costs(c)


4.90



5.02



4.82



5.08

Other income(d)


(0.09)



(0.05)



(0.13)



(0.13)

LIFO inventory charge


(0.10)





(0.03)



Refining & Marketing adjusted EBITDA


19.87



4.57



18.04



2.62

Less:












Storm impacts on refining operating cost(e)




0.07





0.07

Refining planned turnaround costs


1.39



0.78



0.84



0.50

Depreciation and amortization


1.66



1.77



1.72



1.87

LIFO inventory charge


0.10





0.03



Refining & Marketing  income from operations

$

16.72


$

1.95


$

15.45


$

0.18













Fees paid to MPLX included in distribution costs above

$

3.34


$

3.23


$

3.36


$

3.40













(a) 

Sales revenue less cost of refinery inputs and purchased products, divided by net refinery throughput.



(b) 

Excludes refining planned turnaround and depreciation and amortization expense.



(c) 

Excludes depreciation and amortization expense.



(d) 

Includes income (loss) from equity method investments, net gain (loss) on disposal of assets and other income.



(e) 

Storms in the first and third quarters of 2021 resulted in higher costs, including maintenance and repairs.







Refining & Marketing - Supplemental Operating Data


Three Months Ended 

September 30,



Nine Months Ended 

September 30,



2022



2021



2022



2021

Refining & Marketing refined product sales volume (mbpd)(a)


3,587



3,539



3,500



3,366

Crude oil refining capacity (mbpcd)(b)


2,887



2,874



2,887



2,874

Crude oil capacity utilization (percent)(b)


98



93



96



90













Refinery throughputs (mbpd):












    Crude oil refined


2,823



2,684



2,781



2,594

    Other charge and blendstocks


184



152



189



159

Net refinery throughput


3,007



2,836



2,970



2,753













Sour crude oil throughput (percent)


48



45



48



47

Sweet crude oil throughput (percent)


52



55



52



53













Refined product yields (mbpd):












    Gasoline


1,501



1,451



1,507



1,404

    Distillates


1,134



968



1,079



944

    Propane


73



53



72



51

    NGLs and petrochemicals


199



272



194



265

    Heavy fuel oil


43



32



61



32

    Asphalt


91



93



90



94

        Total


3,041



2,869



3,003



2,790

Inter-region refinery transfers excluded from throughput and yields above (mbpd)


97



61



77



55













(a) 

Includes intersegment sales.



(b) 

Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. Excludes idled Martinez and Gallup facilities and our Dickinson plant in renewable diesel service.

 

Refining & Marketing - Supplemental Operating Data by Region (unaudited)

The per barrel for Refining & Marketing margin is calculated based on net refinery throughput (excludes inter-refinery transfer volumes). The per barrel for the refining operating costs, refining planned turnaround costs and refining depreciation and amortization for the regions, as shown in the tables below, is calculated based on the gross refinery throughput (includes inter-refinery transfer volumes).

Refining operating costs exclude refining planned turnaround costs, refining depreciation and amortization expense and the estimated 2021 storm impacts.

Gulf Coast Region


Three Months Ended 

September 30,



Nine Months Ended 

September 30,



2022



2021



2022



2021

Dollar per barrel of refinery throughput:












Refining & Marketing margin

$

27.39


$

13.03


$

26.89


$

10.65

Refining operating costs


4.14



4.06



4.17



3.97

Refining planned turnaround costs


1.31



0.13



0.91



0.47

Refining depreciation and amortization


1.16



1.42



1.28



1.47













Refinery throughputs (mbpd):












    Crude oil refined


1,190



1,034



1,139



1,011

    Other charge and blendstocks


171



110



156



108

Gross refinery throughput


1,361



1,144



1,295



1,119













Sour crude oil throughput (percent)


59



58



58



60

Sweet crude oil throughput (percent)


41



42



42



40













Refined product yields (mbpd):












    Gasoline


655



544



635



520

    Distillates


508



380



463



376

    Propane


43



27



41



25

    NGLs and petrochemicals


116



195



115



201

    Heavy fuel oil


44



7



45



6

    Asphalt


21



16



20



19

        Total


1,387



1,169



1,319



1,147

Inter-region refinery transfers included in throughput and yields above (mbpd)


66



26



47



26



















Mid-Continent Region


Three Months Ended 

September 30,



Nine Months Ended 

September 30,



2022



2021



2022



2021

Dollar per barrel of refinery throughput:












Refining & Marketing margin

$

31.04


$

15.44


$

27.14


$

13.46

Refining operating costs


5.36



4.27



4.99



4.30

Refining planned turnaround costs


1.47



1.66



0.74



0.69

Refining depreciation and amortization


1.53



1.50



1.54



1.59













Refinery throughputs (mbpd):












    Crude oil refined


1,122



1,146



1,130



1,103

    Other charge and blendstocks


66



61



65



55

Gross refinery throughput


1,188



1,207



1,195



1,158













Sour crude oil throughput (percent)


26



26



26



26

Sweet crude oil throughput (percent)


74



74



74



74













Refined product yields (mbpd):












    Gasoline


601



613



615



602

    Distillates


439



412



428



395

    Propane


19



19



21



19

    NGLs and petrochemicals


55



77



52



62

    Heavy fuel oil


8



12



14



12

    Asphalt


69



76



69



74

        Total


1,191



1,209



1,199



1,164

Inter-region refinery transfers included in throughput and yields above (mbpd)


7



13



7



9

























West Coast Region


Three Months Ended 

September 30,



Nine Months Ended 

September 30,



2022



2021



2022



2021

Dollar per barrel of refinery throughput:












Refining & Marketing margin

$

35.83


$

15.56


$

32.97


$

14.08

Refining operating costs


8.88



7.87



8.11



7.63

Refining planned turnaround costs


1.17



0.12



0.78



0.12

Refining depreciation and amortization


1.30



1.36



1.35



1.50













Refinery throughputs (mbpd):












    Crude oil refined


511



504



512



480

    Other charge and blendstocks


44



42



45



51

Gross refinery throughput


555



546



557



531













Sour crude oil throughput (percent)


72



63



71



67

Sweet crude oil throughput (percent)


28



37



29



33













Refined product yields (mbpd):












    Gasoline


280



294



287



282

    Distillates


198



176



195



173

    Propane


11



7



10



7

    NGLs and petrochemicals


34



48



34



46

    Heavy fuel oil


36



26



35



25

    Asphalt


1



1



1



1

        Total


560



552



562



534

Inter-region refinery transfers included in throughput and yields above (mbpd)


24



22



23



20













 

Midstream Operating Statistics (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,



2022



2021



2022



2021

Pipeline throughputs (mbpd)(a)


5,845



5,600



5,761



5,499

Terminal throughput (mbpd)


3,026



3,046



3,023



2,884

Gathering system throughput (million cubic feet per day)(b)


6,083



5,419



5,664



5,195

Natural gas processed (million cubic feet per day)(b)


8,516



8,383



8,401



8,375

C2 (ethane) + NGLs fractionated (mbpd)(b)


562



553



541



552













(a) 

Includes common-carrier pipelines and private pipelines contributed to MPLX. Excludes equity method affiliate pipeline volumes.



(b) 

Includes amounts related to unconsolidated equity method investments on a 100% basis.

 

Select Financial Data (unaudited)



September 30, 
2022



June 30, 
2022

(In millions)






Cash and cash equivalents

$

7,376


$

9,078

Short-term investments


3,759



4,241

MPC debt


6,923



6,999

MPLX debt


19,779



19,775

Total consolidated debt(a)


26,702



26,774

Redeemable noncontrolling interest


967



965

Equity


32,808



32,704

Shares outstanding


469



513







(a) 

Net of unamortized debt issuance costs and unamortized premium/discount, net.

 

Non-GAAP Financial Measures

Management uses certain financial measures to evaluate our operating performance that are calculated and presented on the basis of methodologies other than in accordance with GAAP. We believe these non-GAAP financial measures are useful to investors and analysts to assess our ongoing financial performance because, when reconciled to their most comparable GAAP financial measures, they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. The non-GAAP financial measures we use are as follows:

Adjusted Net Income Attributable to MPC

Adjusted net income attributable to MPC is defined as net income attributable to MPC excluding the items in the table below, along with their related income tax effect. We have excluded these items because we believe that they are not indicative of our core operating performance and that their exclusion results in an important measure of our ongoing financial performance to better assess our underlying business results and trends.

Adjusted Diluted Earnings Per Share

Adjusted diluted earnings per share is defined as adjusted net income attributable to MPC divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.

Reconciliation of Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Net income attributable to MPC

$

4,477


$

694


$

11,195


$

8,964

Pre-tax adjustments:












Gain on Speedway sale








(11,682)

Gain on sale of assets


(1,058)





(1,058)



LIFO inventory charge


28





28



Renewable volume obligation requirements






(238)



Litigation








Impairments




25





81

Storm impacts




23





70

Pension settlement








49

Transaction-related costs








46

Tax impact of adjustments(a)


227



(272)



279



3,271

Non-controlling interest impact of adjustments


183



(6)



183



(30)

Adjusted net income attributable to MPC

$

3,857


$

464


$

10,389


$

769













Diluted income per share

$

9.06


$

1.09


$

21.04


$

13.81

Adjusted diluted income per share(b)

$

7.81


$

0.73


$

19.53


$

1.18













(a) 

Income taxes for the three and nine months ended September 30, 2022 were calculated by applying a combined federal and state tax rate of 22% to the pre-tax adjustments. Income taxes for adjusted earnings for the three and nine months ended September 30, 2021 were calculated by applying a combined federal and state statutory tax rate of 24% to the adjusted pre-tax income. The corresponding adjustments to reported income taxes are shown in the table above.



(b) 

Weighted average diluted shares used for the adjusted net loss per share calculations do not assume the conversion of share-based awards, as the effect would be anti-dilutive.

 

Adjusted EBITDA

Amounts included in net income (loss) attributable to MPC and excluded from adjusted EBITDA include (i) net interest and other financial costs; (ii) provision/benefit for income taxes; (iii) noncontrolling interests; (iv) depreciation and amortization; (v) refining planned turnaround costs and (vi) other adjustments as deemed necessary, as shown in the table below. We believe excluding turnaround costs from this metric is useful for comparability to other companies as certain of our competitors defer these costs and amortize them between turnarounds.

Adjusted EBITDA should not be considered as a substitute for, or superior to income (loss) from operations, net income attributable to MPC, income before income taxes, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Reconciliation of Net Income Attributable to MPC to Adjusted EBITDA from Continuing Operations (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Net income attributable to MPC

$

4,477


$

694


$

11,195


$

8,964

Net income attributable to noncontrolling interests


543



336



1,214



932

Income from discontinued operations, net of tax








(8,448)

Provision (benefit) for income taxes on continuing operations


1,426



(18)



3,507



21

Net interest and other financial costs


240



328



814



1,053

Depreciation and amortization


794



836



2,418



2,551

Refining planned turnaround costs


384



205



680



378

Storm impacts




23





70

LIFO inventory charge


28





28



Gain on sale of assets


(1,058)





(1,058)



Renewable volume obligation requirements






(238)



Litigation






(27)



Impairments




12





25

Adjusted EBITDA from continuing operations

$

6,834


$

2,416


$

18,533


$

5,546













 

Reconciliation of Income from Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Income from discontinued operations, net of tax

$


$


$


$

8,448

Provision for income taxes








3,795

Net interest and other financial costs








6

Depreciation and amortization








3

Gain on sale of assets








(11,682)

Transaction-related costs








46

Adjusted EBITDA from discontinued operations

$


$


$


$

616













 

Refining & Marketing Margin

Refining margin is defined as sales revenue less the cost of refinery inputs and purchased products.

Reconciliation of Refining & Marketing Income from Operations to Refining & Marketing Gross Margin and Refining & Marketing Margin (unaudited)



Three Months Ended 

September 30,



Nine Months Ended 

September 30,

(In millions)


2022



2021



2022



2021

Refining & Marketing income from operations

$

4,625


$

509


$

12,527


$

135

Plus (Less):












Selling, general and administrative expenses


614



540



1,696



1,495

Income from equity method investments


(21)



(8)



(39)



(27)

Net gain on disposal of assets




(3)



(37)



(6)

Other income


(191)



(146)



(606)



(289)

Refining & Marketing gross margin


5,027



892



13,541



1,308

Plus (Less):












Operating expenses (excluding depreciation and amortization)


2,861



2,527



7,804



7,107

Depreciation and amortization


459



462



1,395



1,406

Gross margin excluded from and other income included in Refining & Marketing margin(a)


51



(58)



136



(353)

Other taxes included in Refining & Marketing margin


(40)



(38)



(132)



(104)

Refining & Marketing margin


8,358



3,785



22,744



9,364

LIFO inventory charge


28





28



Refining & Marketing margin, excluding LIFO inventory charge

$

8,386


$

3,785


$

22,772


$

9,364













Refining & Marketing margin by region:












Gulf Coast

$

3,264


$

1,339


$

9,161


$

3,176

Mid-Continent


3,373



1,695



8,801



4,223

West Coast


1,749



751



4,810



1,965

Refining & Marketing margin, excluding LIFO inventory charge

$

8,386


$

3,785


$

22,772


$

9,364













(a)   

Reflects the gross margin, excluding depreciation and amortization, of other related operations included in the Refining & Marketing segment and processing of credit card transactions on behalf of certain of our marketing customers, net of other income.

 

Cision View original content:https://www.prnewswire.com/news-releases/marathon-petroleum-corp-reports-third-quarter-2022-results-301664303.html

SOURCE Marathon Petroleum Corporation

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