Marathon Petroleum Corp. (MPC) has announced its financial results from Q1 2024.
For the quarter, Marathon achieved a net income of $937 million, compared to $2.7 billion in Q1 2023, due to the company completing its largest planned maintenance quarter in MPC history, including at four of its largest refineries.
MPC also reported an adjusted EBITDA of $3.3 billion for the quarter, compared to $5.2 billion in Q1 2023.
For its shareholders, MPC returned $2.5 billion of capital through $2.2 billion of share repurchases and $299 million of dividends, and also announced a new $5 billion share repurchase authorization. Since May 2021, MPC has returned $35 billion of total capital.
“In the first quarter, our team safely and successfully completed the largest planned maintenance quarter in MPC history, including at four of our largest refineries,” said CEO Michael J. Hennigan. “This positions us to meet the high demand of summer travel season. Additionally, we are advancing our midstream growth strategy through disciplined organic investments and targeted bolt-on acquisitions. This quarter we returned $2.5 billion through share repurchases and dividends, bringing MPC’s total capital returned to $35 billion since May 2021. Today, we announced a $5 billion increase to our share repurchase authorization, further demonstrating our commitment to return capital.”
Plans For The Future
MPC reported that its 2024 capital spending plan includes executing on a multi-year infrastructure investment at its Los Angeles refinery and the construction of a 90,000 barrel per day (bpd) distillate hydrotreater at its Galveston Bay refinery.
In addition to these large projects, the company is executing on smaller projects that offer high returns targeted at enhancing refinery yields, improving energy efficiency and lowering costs.
MPC partner MPLX is advancing growth projects anchored in the Marcellus and Permian basins.
“MPLX’s integrated footprints in these basins have positioned the partnership with a steady source of opportunities to expand its value chains,” the company noted in a statement.
Additionally, MPLX enhanced its Utica, N.Y., footprint through the acquisition of additional ownership interest in existing joint ventures and a dry gas gathering system for $625 million. The transaction closed in March 2024.
MPLX also announced the expansion of its Permian natural gas value chain, increasing its footprint in the region for future growth. Moreover, the company entered into a definitive agreement to strategically combine the Whistler Pipeline and Rio Bravo Pipeline project in a newly formed joint venture. The transaction is expected to close in the second quarter of 2024.
MPC is an integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system. MPC’s marketing system includes branded locations across the U.S., including Marathon brand retail outlets.
MPC also owns the general partner and majority limited partner interest in MPLX, a midstream company that owns and operates gathering, processing and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure.
