Marathon Petroleum Reports Significant Decline in Revenue and Profitability in Q3 2024

Marathon Petroleum Corporation (MPC) reported significant declines in revenue and profitability for the third quarter of 2024 compared to the same period in 2023. Sales and other operating revenues fell to $35,107 million from $40,917 million, while total revenues and other income decreased from $41,583 million to $35,373 million. The company's net income attributable to MPC also saw a sharp decline, dropping to $622 million, or $1.88 per share, down from $3,280 million, or $8.31 per share, in Q3 2023.

For the nine months ended September 30, 2024, net income attributable to MPC was $3,074 million, compared to $8,230 million in the same period of 2023. The decline in profitability was primarily attributed to lower refining and marketing margins, which were impacted by decreased average refined product sales prices and increased operating costs. The refining and marketing segment's adjusted EBITDA for Q3 2024 was $1,053 million, a significant drop from $4,373 million in Q3 2023.

Total costs and expenses for Q3 2024 decreased to $34,024 million from $36,830 million, largely due to lower crude oil costs and reduced finished product purchases. However, net interest and other financial costs increased by $103 million, reflecting higher MPLX borrowings and decreased interest income.

In terms of strategic developments, MPLX, a subsidiary of MPC, acquired an additional 20% ownership interest in BANGL, LLC for $210 million, increasing its total ownership to 45%. Additionally, MPLX contributed its membership interest in Whistler Pipeline, LLC to a new joint venture, resulting in a gain of $151 million at closing.

MPC's cash and cash equivalents as of September 30, 2024, were $4,002 million, down from $5,443 million at the end of 2023. The company reported a net cash provided by operating activities of $6,458 million for the nine months ended September 30, 2024, a decrease from $12,994 million in the same period of 2023. Capital expenditures for the nine months totaled $1,705 million, an increase from $1,412 million in 2023.

MPC's board approved an additional $5.0 billion share repurchase authorization on November 5, 2024, complementing a previous authorization from April 2024. As of September 30, 2024, approximately $4.04 billion remained available under the share repurchase authorizations. The company continues to evaluate the impact of new California regulations on its operations, particularly concerning gasoline refining margins.