Marathon Petroleum (MPC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income attributable to MPC was $1.52 billion ($4.33 per diluted share), down from $2.23 billion ($5.32 per share) in Q2 2023, with adjusted net income of $1.44 billion ($4.12 per share).

• Adjusted EBITDA for Q2 2024 was $3.39 billion, reflecting lower market crack spreads and refining margins, but strong midstream growth.

• $3.2 billion was returned to shareholders via $2.9 billion in share repurchases and $290 million in dividends; $5.8 billion remains under repurchase authorizations.

• Strategic investments in large refining assets, midstream growth projects, and renewables, including Whistler and Blackcomb pipelines and Martinez facility, position the company for future competitiveness.

• Operational excellence, commercial execution, and disciplined capital allocation remain core priorities, with a focus on peer-leading capital returns and through-cycle cash generation.

Financial highlights

• Adjusted earnings per share for Q2 2024 was $4.12; adjusted EBITDA reached $3.39 billion; cash from operations (excluding working capital) was $2.7 billion.

• Q2 2024 revenues were $38.36 billion, up from $36.8 billion in Q2 2023, mainly due to higher refined product sales volumes.

• Net cash provided by operating activities was $3.2 billion in Q2 2024.

• Operating costs in refining were $4.97 per barrel, with Gulf Coast costs at $3.73 per barrel.

• Adjusted R&M EBITDA per barrel was $7.07; refining margin was $17.37 per barrel, down from $22.10 per barrel year-over-year.

Outlook and guidance

• Q3 2024 crude throughput projected at 2,645 mbpd (90% utilization), with $330 million in planned turnaround expense and operating costs of $5.35 per barrel.

• Full-year turnaround expense anticipated at $1.4 billion.

• Continued focus on high-return investments at Los Angeles, Galveston Bay, and midstream growth in the Permian and Marcellus.

• $5.8 billion remains under current share repurchase authorizations.

• Monitoring regulatory changes in California (SB X1-2) and their potential impact.