Marathon Petroleum Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Marathon Petroleum Corp. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Marathon Petroleum Corp (MPC) filed a Annual Report (10-K) with the SEC on February 28, 2024. Marathon Petroleum Corp. filed its 2023 Form 10-K on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is petroleum refining. Marathon Petroleum Corp. is incorporated in Delaware. The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking Marathon Petroleum Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Marathon Petroleum's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's standing. The detailed financial statements and risk factors within the report offer insights into the company's revenue streams, profitability, debt levels, and potential challenges in the petroleum refining industry.

Risk Assessment

Risk Level: medium — Marathon Petroleum Corp shows moderate risk based on this filing. The company operates in the volatile petroleum refining industry, which is subject to significant price fluctuations and regulatory changes, posing a medium risk to its financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Marathon Petroleum's performance and outlook in the energy sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Primary year covered)
• 2022 — Fiscal Year (Comparative year)
• 2021 — Fiscal Year (Comparative year)

Key Players & Entities

• Marathon Petroleum Corp. (company) — Filer name
• MPC (company) — Ticker symbol
• 2024-02-28 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 2023 (date) — Fiscal year
• 2022 (date) — Fiscal year
• 2021 (date) — Fiscal year
• DE (jurisdiction) — State of incorporation

FAQ

Risk Factors

• Market Price Fluctuations [high — market]: The company's financial results are significantly impacted by the volatility of commodity prices, including crude oil and refined product prices.
• Environmental Regulations [medium — regulatory]: Compliance with stringent environmental laws and regulations related to emissions, discharges, and waste management requires significant capital expenditures and operational adjustments.
• Refinery Operations and Safety [medium — operational]: The operation of complex refining facilities involves inherent risks, including potential accidents, equipment failures, and unplanned outages that can disrupt production and impact financial performance.

Key Dates

• 2024-02-28: 10-K Filing — Annual report submission for fiscal year 2023
• 2023-12-31: Fiscal Year End — End of the reporting period

Key Financial Figures

• $19.8 billion — on shares of MPC common stock valued at $19.8 billion and $3.5 billion in cash. Andeavor was
• $3.5 billion — ommon stock valued at $19.8 billion and $3.5 billion in cash. Andeavor was a highly integrat
• $21.38 billion — Inc. ("7-Eleven") for cash proceeds of $21.38 billion ($17.22 billion after cash-tax payments
• $17.22 billion — ") for cash proceeds of $21.38 billion ($17.22 billion after cash-tax payments). This transact
• $11.68 billion — ransaction resulted in a pretax gain of $11.68 billion ($8.02 billion after income taxes), aft
• $8.02 billion — ted in a pretax gain of $11.68 billion ($8.02 billion after income taxes), after deducting th

Filing Documents

• mpc-20231231.htm (10-K) — 3692KB
• mpc-20231231xex1036.htm (EX-10.36) — 6KB
• mpc-20231231xex1037.htm (EX-10.37) — 10KB
• mpc-20231231xex1041.htm (EX-10.41) — 56KB
• mpc-20231231xex1042.htm (EX-10.42) — 39KB
• mpc-20231231xex1043.htm (EX-10.43) — 96KB
• mpc-20231231xex1044.htm (EX-10.44) — 160KB
• mpc-20231231xex1045.htm (EX-10.45) — 130KB
• mpc-20231231xex211.htm (EX-21.1) — 91KB
• mpc-20231231xex231.htm (EX-23.1) — 3KB
• mpc-20231231xex241.htm (EX-24.1) — 15KB
• mpc-20231231xex311.htm (EX-31.1) — 10KB
• mpc-20231231xex312.htm (EX-31.2) — 10KB
• mpc-20231231xex321.htm (EX-32.1) — 5KB
• mpc-20231231xex322.htm (EX-32.2) — 5KB
• mpc-20231231xex971.htm (EX-97.1) — 47KB
• image2a.jpg (GRAPHIC) — 8KB
• imagea.jpg (GRAPHIC) — 17KB
• mpc-20231231_g1.jpg (GRAPHIC) — 20KB
• mpc-20231231_g10.jpg (GRAPHIC) — 24KB
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• mpc-20231231_g4.jpg (GRAPHIC) — 39KB
• mpc-20231231_g5.jpg (GRAPHIC) — 35KB
• mpc-20231231_g6.jpg (GRAPHIC) — 33KB
• mpc-20231231_g7.jpg (GRAPHIC) — 34KB
• mpc-20231231_g8.jpg (GRAPHIC) — 63KB
• mpc-20231231_g9.jpg (GRAPHIC) — 33KB
• 0001510295-24-000015.txt (&nbsp;) — 21443KB
• mpc-20231231.xsd (EX-101.SCH) — 120KB
• mpc-20231231_cal.xml (EX-101.CAL) — 154KB
• mpc-20231231_def.xml (EX-101.DEF) — 736KB
• mpc-20231231_lab.xml (EX-101.LAB) — 1471KB
• mpc-20231231_pre.xml (EX-101.PRE) — 1166KB
• mpc-20231231_htm.xml (XML) — 3419KB

Risk Factors

Item 1A. Risk Factors 17

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 31

Legal Proceedings

Item 3. Legal Proceedings 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 41

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 66

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 69

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 121

Controls and Procedures

Item 9A. Controls and Procedures 121

Other Information

Item 9B. Other Information 121

Disclosures Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosures Regarding Foreign Jurisdictions that Prevent Inspections 121 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 122

Executive Compensation

Item 11. Executive Compensation 122

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 123

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 123 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 124

Signatures

Signatures 128 Unless otherwise stated or the context otherwise indicates, all references in this Annual Report on Form 10-K to "MPC," "us," "our," "we" or the "Company" mean Marathon Petroleum Corporation and its consolidated subsidiaries. Table of Contents Glossary of Terms Throughout this report, the following company or industry specific terms and abbreviations are used: ANS Alaska North Slope crude oil, an oil index benchmark price ASC Accounting Standards Codification ASU Accounting Standards Update ATB Articulated tug barges barrel One stock tank barrel, or 42 U.S. gallons liquid volume, used in reference to crude oil or other liquid hydrocarbons. CARB California Air Resources Board CARBOB California Reformulated Gasoline Blendstock for Oxygenate Blending CBOB Conventional Gasoline Blendstock for Oxygenate Blending EBITDA Earnings Before Interest, Tax, Depreciation and Amortization (a non-GAAP financial measure) EPA U.S. Environmental Protection Agency ESG Environmental, social and governance FASB Financial Accounting Standards Board GAAP Accounting principles generally accepted in the United States GHG Greenhouse gas LCFS Low Carbon Fuel Standard LIFO Last in, first out mbbls Thousands of barrels mbpd Thousand barrels per day mbpcd Thousand barrels per calendar day MEH Magellan East Houston crude oil, an oil index benchmark price MMcf/d One million cubic feet of natural gas per day MMBtu One million British thermal units NGL Natural gas liquids, such as ethane, propane, butanes and natural gasoline NYMEX New York Mercantile Exchange NYSE New York Stock Exchange OSHA U.S. Occupational Safety and Health Administration OTC Over-the-Counter RFS2 Revised Renewable Fuel Standard program, as required by the Energy Independence and Security Act of 2007 RIN Renewable Identification Number SEC U.S. Securities and Exchange Commission SOFR Secured overnight financing rate STAR South Texas Asset Repositioning ULSD Ultra-low sulf

Forward-looking statements include, among other things, statements regarding

Forward-looking statements include, among other things, statements regarding: future financial and operating results; environmental, social and governance, which we refer to as "ESG", plans and goals, including those related to greenhouse gas emissions and intensity, freshwater withdraw intensity, diversity and inclusion and ESG reporting; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; the success or timing of completion of ongoing or anticipated capital or maintenance projects; business strategies, growth opportunities and expected investments, including plans to improve commercial performance, lower costs and optimize our asset portfolio; consumer demand for refined products, natural gas, renewables and natural gas liquids, such as ethane, propane, butanes and natural gasoline, which we refer to as "NGLs"; the timing, amount and form of any future capital return transactions, including dividends and share repurchases by MPC or distributions and unit repurchases by MPLX LP ("MPLX"); and the anticipated effects of actions of third parties such as competitors, activist investors, federal, foreign, state or local regulatory authorities, or plaintiffs in litigation. Our forward-looking statements are not guarantees of future performance, and you should not rely unduly on them, as they involve risks, uncertainties and assumptions that we cannot predict. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors or required to be disclosed in our filings with the SEC. 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. Material differences between actual results and any future performance suggested in

Business

Item 1. Business OVERVIEW MPC has more than 135 years of history in the energy business, and is a leading, integrated, downstream energy company. We operate one of the nation's largest refining systems with approximately 3.0 million barrels per day of crude oil refining capacity and believe we are one of the largest wholesale suppliers of gasoline and distillates to resellers in the United States. We distribute our refined products through one of the largest terminal operations in the United States and one of the largest private domestic fleets of inland petroleum product barges. In addition, our integrated midstream energy asset network links producers of natural gas and NGLs from some of the largest supply basins in the United States to domestic and international markets. Our operations consist of two reportable operating segments: Refining & Marketing and Midstream. Each of these segments is organized and managed based upon the nature of the products and services it offers. Refining & Marketing – refines crude oil and other feedstocks, including renewable feedstocks, at our refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States, purchases refined products and ethanol for resale and distributes refined products, including renewable diesel, through transportation, storage, distribution and marketing services provided largely by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to independent entrepreneurs who operate primarily Marathon branded outlets and through long-term supply contracts with direct dealers who operate locations mainly under the ARCO brand. Midstream – gathers, transports, stores and distributes crude oil, refined products, including renewable diesel, and other hydrocarbon-based products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges; gather

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View this 10-K filing on SEC EDGAR