Marathon Petroleum (MPC) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw record global refined product supply and high utilization rates, but lower market crack spreads led to reduced refining margins and net income compared to Q2 2023.

• Adjusted EBITDA for Q2 2024 was $3.39 billion, with $2.0 billion from Refining & Marketing and $1.62 billion from Midstream, which grew 6% year-over-year.

• $3.2 billion was returned to shareholders in Q2 through $2.9 billion in share repurchases and $290 million in dividends; $5.8 billion remains under repurchase authorizations.

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

• Operational excellence and disciplined capital allocation remain central, with a focus on maximizing EBITDA per barrel and peer-leading capital returns.

Financial highlights

• Q2 2024 adjusted earnings per share was $4.12 (adjusted), with net income of $1.52 billion and adjusted EBITDA of $3.39 billion.

• Revenues for Q2 2024 were $38.4 billion, up from $36.8 billion in Q2 2023, mainly due to higher refined product sales volumes.

• Cash from operations (excluding working capital) reached $2.7 billion; net cash provided by operating activities was $3.2 billion.

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

• Share repurchases totaled $2.9 billion and dividends paid were $290 million in Q2 2024.

Outlook and guidance

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

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

• Continued focus on high-return investments at key refineries and midstream growth in the Permian and Marcellus.