Marathon Petroleum Files Q3 2024 10-Q

Ticker: MPC · Form: 10-Q · Filed: Nov 5, 2024 · CIK: 1510295

Marathon Petroleum CORP 10-Q Filing Summary
FieldDetail
CompanyMarathon Petroleum CORP (MPC)
Form Type10-Q
Filed DateNov 5, 2024
Risk Levellow
Pages17
Reading Time20 min
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, petroleum-refining

TL;DR

MPC's Q3 2024 10-Q is in. Check financials for energy sector insights.

AI Summary

Marathon Petroleum Corp. (MPC) filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter and the first nine months of the year. Key financial figures and segment performance are presented, reflecting the company's activities in the energy and transportation sectors.

Why It Matters

This filing provides investors and analysts with the latest financial results and operational details for Marathon Petroleum, crucial for understanding the company's performance in the current energy market.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks highlighted.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is September 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on November 5, 2024.

What is Marathon Petroleum Corp.'s primary industry classification?

Marathon Petroleum Corp.'s Standard Industrial Classification is PETROLEUM REFINING [2911].

What is the company's fiscal year end?

The company's fiscal year ends on December 31.

What is the company's SEC file number?

The SEC file number for Marathon Petroleum Corp. is 001-35054.

Filing Stats: 5,015 words · 20 min read · ~17 pages · Grade level 16.1 · Accepted 2024-11-05 13:31:29

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Consolidated Statements of Income (Unaudited) 3 Consolidated Statements of Comprehensive Income (Unaudited) 4 Consolidated Balance Sheets (Unaudited) 5 Consolidated Statements of Cash Flows (Unaudited) 6 Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9 1. Description of the Business and Basis of Presentation 9 2. Accounting Standards and Disclosure Rules 9 3. Short-Term Investments 10 4. Master Limited Partnership 11 5. Variable Interest Entities 11 6. Related Party Transactions 12 7. Earnings Per Share 13 8. Equity 13 9. Segment Information 14 10. Net Interest and Other Financial Costs 16 11. Income Taxes 16 12. Inventories 16 13. Equity Method Investments 16 14. Property, Plant and Equipment (PP&E) 17 15. Fair Value Measurements 18 16. Derivatives 19 17. Debt 20 18. Revenue 21 19. Supplemental Cash Flow Information 21 20. Other Current Liabilities 22 21. Accumulated Other Comprehensive Income (Loss) 22 22. Pension and Other Postretirement Benefits 23 23. Commitments and Contingencies 23 24. Subsequent Events 25

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 47

Controls and Procedures

Item 4. Controls and Procedures 48

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 51

Signatures

Signatures 52 Unless otherwise stated or the context otherwise indicates, all references in this Form 10-Q to "MPC," "us," "our," "we" or "the Company" mean Marathon Petroleum Corporation and its consolidated subsidiaries. 1 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 ASU Accounting Standards Update 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 CEC California Energy Commission EBITDA Earnings Before Interest, Tax, Depreciation and Amortization (a non-GAAP financial measure) EPA U.S. Environmental Protection Agency FASB Financial Accounting Standards Board GAAP Accounting principles generally accepted in the United States LIFO Last in, first out, an inventory costing method mbpd Thousand barrels per day MEH Magellan East Houston crude oil, an oil index benchmark price MMBtu One million British thermal units NGL Natural gas liquids, such as ethane, propane, butanes and natural gasoline NYMEX New York Mercantile Exchange 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 ULSD Ultra-low sulfur diesel USGC U.S. Gulf Coast VIE Variable interest entity WTI West Texas Intermediate crude oil, an oil index benchmark price 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Marathon Petroleum Corporation Consolidated Statements of Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2024 2023 2024 2023 Revenues and other income: Sales and other operating revenues $ 35,107 $ 40,917 $ 105,727 $ 112,124 Income from equity method investments 219 215 796 547 Net gain (loss) on disposal of assets ( 2 ) 110 17 126 Other income 49 341 406 687 Total revenues and other income 35,373 41,583 106,946 113,484 Costs and expenses: Cost of revenues (excludes items below) 32,144 34,928 95,682 95,984 Depreciation and amortization 846 845 2,511 2,479 Selling, general and administrative expenses 815 824 2,417 2,219 Other taxes 219 233 681 683 Total costs and expenses 34,024 36,830 101,291 101,365 Income from operations 1,349 4,753 5,655 12,119 Net interest and other financial costs 221 118 594 414 Income before income taxes 1,128 4,635 5,061 11,705 Provision for income taxes 113 1,004 779 2,410 Net income 1,015 3,631 4,282 9,295 Less net income attributable to: Redeemable noncontrolling interest 6 25 21 71 Noncontrolling interests 387 326 1,187 994 Net income attributable to MPC $ 622 $ 3,280 $ 3,074 $ 8,230 Per share data (See Note 7) Basic: Net income attributable to MPC per share $ 1.88 $ 8.31 $ 8.85 $ 19.66 Weighted average shares outstanding 331 394 347 418 Diluted: Net income attributable to MPC per share $ 1.87 $ 8.28 $ 8.83 $ 19.57 Weighted average shares outstanding 332 396 348 420 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents Marathon Petroleum Corporation Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2024 2023 2024 2023 Net income $ 1,015 $ 3,631 $ 4,282 $ 9,295 Defined benefit plans: Actuarial changes, net of tax of $ 1 , $( 2 ), $ 2

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 1 . Description of the Business and Basis of Presentation Description of the Business We are a leading, integrated, downstream energy company headquartered in Findlay, Ohio. We operate the nation's largest refining system. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market and to independent entrepreneurs who operate branded outlets. We also sell transportation fuel to consumers through direct dealer locations under long-term supply contracts. MPC's midstream operations are primarily conducted through MPLX LP ("MPLX"), which owns and operates crude oil and light product transportation and logistics infrastructure as well as gathering, processing and fractionation assets. We own the general partner and a majority limited partner interest in MPLX. See Note 4. Basis of Presentation These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements. Certain information and disclosures derived from our audited annual financial statements, prepared in accordance with GAAP, have been condensed or omitted from these interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations for the three and nine months ended S

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