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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Marathon Petroleum Corporation | NYSE:MPC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.48 | 0.26% | 183.03 | 184.77 | 182.41 | 184.05 | 889,230 | 20:27:28 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
27-1284632
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
Securities registered pursuant to Section 12(b) of the Act
|
||
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $.01
|
MPC
|
New York Stock Exchange
|
|
|
Page
|
|
|
|
|
|
|
|
|
ANS
|
Alaskan North Slope crude oil, an oil index benchmark price
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
barrel
|
One stock tank barrel, or 42 United States 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 Blending for Oxygenate Blending
|
EBITDA (a non-GAAP financial measure)
|
Earnings Before Interest, Tax, Depreciation and Amortization
|
EPA
|
United States Environmental Protection Agency
|
FASB
|
Financial Accounting Standards Board
|
GAAP
|
Accounting principles generally accepted in the United States
|
LCM
|
Lower of cost or market
|
LIFO
|
Last in, first out, an inventory costing method
|
LIBOR
|
London Interbank Offered Rate
|
LLS
|
Louisiana Light Sweet crude oil, an oil index benchmark price
|
mbpd
|
Thousand barrels per day
|
MMBtu
|
One million British thermal units, an energy measurement
|
MMcf/d
|
One million cubic feet of natural gas per day
|
NGL
|
Natural gas liquids, such as ethane, propane, butanes and natural gasoline
|
NYMEX
|
New York Mercantile Exchange
|
OTC
|
Over-the-Counter
|
RIN
|
Renewable Identification Number
|
SEC
|
United States 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
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions, except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
||||||||
Sales and other operating revenues
|
$
|
15,024
|
|
|
$
|
33,529
|
|
|
$
|
40,239
|
|
|
$
|
61,782
|
|
Income (loss) from equity method investments(a)
|
105
|
|
|
107
|
|
|
(1,105
|
)
|
|
206
|
|
||||
Net gain on disposal of assets
|
2
|
|
|
4
|
|
|
6
|
|
|
218
|
|
||||
Other income
|
67
|
|
|
30
|
|
|
138
|
|
|
65
|
|
||||
Total revenues and other income
|
15,198
|
|
|
33,670
|
|
|
39,278
|
|
|
62,271
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (excludes items below)
|
13,777
|
|
|
29,682
|
|
|
36,598
|
|
|
55,642
|
|
||||
LCM inventory valuation adjustment
|
(1,480
|
)
|
|
—
|
|
|
1,740
|
|
|
—
|
|
||||
Impairment expense
|
25
|
|
|
—
|
|
|
7,847
|
|
|
—
|
|
||||
Depreciation and amortization
|
935
|
|
|
886
|
|
|
1,897
|
|
|
1,805
|
|
||||
Selling, general and administrative expenses
|
746
|
|
|
886
|
|
|
1,567
|
|
|
1,753
|
|
||||
Other taxes
|
214
|
|
|
174
|
|
|
465
|
|
|
360
|
|
||||
Total costs and expenses
|
14,217
|
|
|
31,628
|
|
|
50,114
|
|
|
59,560
|
|
||||
Income (loss) from operations
|
981
|
|
|
2,042
|
|
|
(10,836
|
)
|
|
2,711
|
|
||||
Net interest and other financial costs
|
345
|
|
|
322
|
|
|
683
|
|
|
628
|
|
||||
Income (loss) before income taxes
|
636
|
|
|
1,720
|
|
|
(11,519
|
)
|
|
2,083
|
|
||||
Provision (benefit) for income taxes
|
360
|
|
|
353
|
|
|
(1,577
|
)
|
|
457
|
|
||||
Net income (loss)
|
276
|
|
|
1,367
|
|
|
(9,942
|
)
|
|
1,626
|
|
||||
Less net income (loss) attributable to:
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interest
|
21
|
|
|
21
|
|
|
41
|
|
|
41
|
|
||||
Noncontrolling interests
|
246
|
|
|
240
|
|
|
(758
|
)
|
|
486
|
|
||||
Net income (loss) attributable to MPC
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(9,225
|
)
|
|
$
|
1,099
|
|
Per Share Data (See Note 7)
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to MPC per share
|
$
|
0.01
|
|
|
$
|
1.67
|
|
|
$
|
(14.21
|
)
|
|
$
|
1.65
|
|
Weighted average shares outstanding
|
650
|
|
|
662
|
|
|
649
|
|
|
667
|
|
||||
Diluted:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to MPC per share
|
$
|
0.01
|
|
|
$
|
1.66
|
|
|
$
|
(14.21
|
)
|
|
$
|
1.63
|
|
Weighted average shares outstanding
|
653
|
|
|
666
|
|
|
649
|
|
|
672
|
|
(a)
|
The six months ended June 30, 2020 includes $1,315 million of impairment expense. See Note 4 for further information.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Millions of dollars)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income (loss)
|
$
|
276
|
|
|
$
|
1,367
|
|
|
$
|
(9,942
|
)
|
|
$
|
1,626
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
||||||||
Actuarial changes, net of tax of $0, $0, $1 and $6, respectively
|
(1
|
)
|
|
(1
|
)
|
|
3
|
|
|
(4
|
)
|
||||
Prior service, net of tax of ($3), ($3), ($6) and ($11), respectively
|
(8
|
)
|
|
(8
|
)
|
|
(17
|
)
|
|
(11
|
)
|
||||
Other, net of tax of ($1), ($1), ($1) and ($1), respectively
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Other comprehensive loss
|
(10
|
)
|
|
(10
|
)
|
|
(16
|
)
|
|
(17
|
)
|
||||
Comprehensive income (loss)
|
266
|
|
|
1,357
|
|
|
(9,958
|
)
|
|
1,609
|
|
||||
Less comprehensive income (loss) attributable to:
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interest
|
21
|
|
|
21
|
|
|
41
|
|
|
41
|
|
||||
Noncontrolling interests
|
246
|
|
|
240
|
|
|
(758
|
)
|
|
486
|
|
||||
Comprehensive income (loss) attributable to MPC
|
$
|
(1
|
)
|
|
$
|
1,096
|
|
|
$
|
(9,241
|
)
|
|
$
|
1,082
|
|
(Millions of dollars, except share data)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,091
|
|
|
$
|
1,527
|
|
Receivables, less allowance for doubtful accounts of $18 and $17, respectively
|
4,361
|
|
|
7,479
|
|
||
Inventories
|
8,086
|
|
|
10,243
|
|
||
Other current assets
|
1,105
|
|
|
921
|
|
||
Total current assets
|
14,643
|
|
|
20,170
|
|
||
Equity method investments
|
5,740
|
|
|
6,898
|
|
||
Property, plant and equipment, net
|
45,025
|
|
|
45,615
|
|
||
Goodwill
|
12,710
|
|
|
20,040
|
|
||
Right of use assets
|
2,454
|
|
|
2,459
|
|
||
Other noncurrent assets
|
4,021
|
|
|
3,374
|
|
||
Total assets
|
$
|
84,593
|
|
|
$
|
98,556
|
|
Liabilities
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
6,110
|
|
|
$
|
11,623
|
|
Payroll and benefits payable
|
815
|
|
|
1,126
|
|
||
Accrued taxes
|
1,272
|
|
|
1,186
|
|
||
Debt due within one year
|
1,715
|
|
|
711
|
|
||
Operating lease liabilities
|
625
|
|
|
604
|
|
||
Other current liabilities
|
967
|
|
|
897
|
|
||
Total current liabilities
|
11,504
|
|
|
16,147
|
|
||
Long-term debt
|
30,451
|
|
|
28,127
|
|
||
Deferred income taxes
|
5,914
|
|
|
6,392
|
|
||
Defined benefit postretirement plan obligations
|
1,772
|
|
|
1,643
|
|
||
Long-term operating lease liabilities
|
1,850
|
|
|
1,875
|
|
||
Deferred credits and other liabilities
|
1,285
|
|
|
1,265
|
|
||
Total liabilities
|
52,776
|
|
|
55,449
|
|
||
Commitments and contingencies (see Note 22)
|
|
|
|
||||
Redeemable noncontrolling interest
|
968
|
|
|
968
|
|
||
Equity
|
|
|
|
||||
MPC stockholders’ equity:
|
|
|
|
||||
Preferred stock, no shares issued and outstanding (par value $0.01 per share, 30 million shares authorized)
|
—
|
|
|
—
|
|
||
Common stock:
|
|
|
|
||||
Issued – 979 million and 978 million shares (par value $0.01 per share, 2 billion shares authorized)
|
10
|
|
|
10
|
|
||
Held in treasury, at cost – 329 million and 329 million shares
|
(15,149
|
)
|
|
(15,143
|
)
|
||
Additional paid-in capital
|
33,208
|
|
|
33,157
|
|
||
Retained earnings
|
6,008
|
|
|
15,990
|
|
||
Accumulated other comprehensive loss
|
(336
|
)
|
|
(320
|
)
|
||
Total MPC stockholders’ equity
|
23,741
|
|
|
33,694
|
|
||
Noncontrolling interests
|
7,108
|
|
|
8,445
|
|
||
Total equity
|
30,849
|
|
|
42,139
|
|
||
Total liabilities, redeemable noncontrolling interest and equity
|
$
|
84,593
|
|
|
$
|
98,556
|
|
|
Six Months Ended
June 30, |
||||||
(Millions of dollars)
|
2020
|
|
2019
|
||||
Operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
(9,942
|
)
|
|
$
|
1,626
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Amortization of deferred financing costs and debt discount
|
30
|
|
|
9
|
|
||
Impairment expense
|
7,847
|
|
|
—
|
|
||
Depreciation and amortization
|
1,897
|
|
|
1,805
|
|
||
LCM inventory valuation adjustment
|
1,740
|
|
|
—
|
|
||
Pension and other postretirement benefits, net
|
103
|
|
|
86
|
|
||
Deferred income taxes
|
(465
|
)
|
|
360
|
|
||
Net gain on disposal of assets
|
(6
|
)
|
|
(218
|
)
|
||
(Income) loss from equity method investments(a)
|
1,105
|
|
|
(206
|
)
|
||
Distributions from equity method investments
|
330
|
|
|
310
|
|
||
Changes in income tax receivable
|
(1,150
|
)
|
|
(106
|
)
|
||
Changes in the fair value of derivative instruments
|
23
|
|
|
(27
|
)
|
||
Changes in operating assets and liabilities, net of effects of businesses acquired:
|
|
|
|
||||
Current receivables
|
3,117
|
|
|
(1,697
|
)
|
||
Inventories
|
417
|
|
|
740
|
|
||
Current accounts payable and accrued liabilities
|
(5,220
|
)
|
|
1,297
|
|
||
Right of use assets and operating lease liabilities, net
|
2
|
|
|
9
|
|
||
All other, net
|
(58
|
)
|
|
257
|
|
||
Net cash provided by (used in) operating activities
|
(230
|
)
|
|
4,245
|
|
||
Investing activities:
|
|
|
|
||||
Additions to property, plant and equipment
|
(1,910
|
)
|
|
(2,419
|
)
|
||
Disposal of assets
|
79
|
|
|
33
|
|
||
Investments – acquisitions, loans and contributions
|
(383
|
)
|
|
(595
|
)
|
||
– redemptions, repayments and return of capital
|
118
|
|
|
58
|
|
||
All other, net
|
19
|
|
|
43
|
|
||
Net cash used in investing activities
|
(2,077
|
)
|
|
(2,880
|
)
|
||
Financing activities:
|
|
|
|
||||
Long-term debt – borrowings
|
9,672
|
|
|
7,964
|
|
||
– repayments
|
(6,388
|
)
|
|
(7,116
|
)
|
||
Debt issuance costs
|
(24
|
)
|
|
—
|
|
||
Issuance of common stock
|
6
|
|
|
3
|
|
||
Common stock repurchased
|
—
|
|
|
(1,385
|
)
|
||
Dividends paid
|
(755
|
)
|
|
(706
|
)
|
||
Distributions to noncontrolling interests
|
(620
|
)
|
|
(640
|
)
|
||
Contributions from noncontrolling interests
|
—
|
|
|
95
|
|
||
All other, net
|
(20
|
)
|
|
(56
|
)
|
||
Net cash provided by (used in) financing activities
|
1,871
|
|
|
(1,841
|
)
|
||
Net change in cash, cash equivalents and restricted cash
|
(436
|
)
|
|
(476
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
1,529
|
|
|
1,725
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
1,093
|
|
|
$
|
1,249
|
|
(a)
|
The six months ended June 30, 2020 includes $1,315 million of impairment expense. See Note 4 for further information.
|
|
MPC Stockholders’ Equity
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Non-controlling Interests
|
|
Total Equity
|
|
Redeemable Non-controlling Interest
|
||||||||||||||||||||||
(Shares in millions;
amounts in millions of dollars)
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of December 31, 2019
|
978
|
|
|
$
|
10
|
|
|
(329
|
)
|
|
$
|
(15,143
|
)
|
|
$
|
33,157
|
|
|
$
|
15,990
|
|
|
$
|
(320
|
)
|
|
$
|
8,445
|
|
|
$
|
42,139
|
|
|
$
|
968
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,234
|
)
|
|
—
|
|
|
(1,004
|
)
|
|
(10,238
|
)
|
|
20
|
|
||||||||
Dividends declared on common stock ($0.58 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(377
|
)
|
|
—
|
|
|
—
|
|
|
(377
|
)
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(300
|
)
|
|
(300
|
)
|
|
(20
|
)
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||||||
Stock based compensation
|
1
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
17
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
16
|
|
|
—
|
|
||||||||
Equity transactions of MPLX
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(7
|
)
|
|
—
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||||
Balance as of March 31, 2020
|
979
|
|
|
$
|
10
|
|
|
(329
|
)
|
|
$
|
(15,145
|
)
|
|
$
|
33,169
|
|
|
$
|
6,380
|
|
|
$
|
(326
|
)
|
|
$
|
7,140
|
|
|
$
|
31,228
|
|
|
$
|
968
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
246
|
|
|
255
|
|
|
21
|
|
||||||||
Dividends declared on common stock ($0.58 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(380
|
)
|
|
—
|
|
|
—
|
|
|
(380
|
)
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(279
|
)
|
|
(279
|
)
|
|
(21
|
)
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
31
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
30
|
|
|
—
|
|
||||||||
Equity transactions of MPLX
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
6
|
|
|
—
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||||||
Balance as of June 30, 2020
|
979
|
|
|
$
|
10
|
|
|
(329
|
)
|
|
$
|
(15,149
|
)
|
|
$
|
33,208
|
|
|
$
|
6,008
|
|
|
$
|
(336
|
)
|
|
$
|
7,108
|
|
|
$
|
30,849
|
|
|
$
|
968
|
|
|
MPC Stockholders’ Equity
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Non-controlling Interests
|
|
Total Equity
|
|
Redeemable Non-controlling Interest
|
||||||||||||||||||||||
(Shares in millions;
amounts in millions of dollars) |
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of December 31, 2018
|
975
|
|
|
$
|
10
|
|
|
(295
|
)
|
|
$
|
(13,175
|
)
|
|
$
|
33,729
|
|
|
$
|
14,755
|
|
|
$
|
(144
|
)
|
|
$
|
8,874
|
|
|
$
|
44,049
|
|
|
$
|
1,004
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
246
|
|
|
239
|
|
|
20
|
|
||||||||
Dividends declared on common stock ($0.53 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(357
|
)
|
|
—
|
|
|
—
|
|
|
(357
|
)
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(305
|
)
|
|
(305
|
)
|
|
(20
|
)
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|
95
|
|
|
—
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(885
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(885
|
)
|
|
—
|
|
||||||||
Stock based compensation
|
1
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
32
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
28
|
|
|
—
|
|
||||||||
Equity transactions of MPLX & ANDX
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
||||||||
Balance as of March 31, 2019
|
976
|
|
|
$
|
10
|
|
|
(309
|
)
|
|
$
|
(14,063
|
)
|
|
$
|
33,764
|
|
|
$
|
14,391
|
|
|
$
|
(151
|
)
|
|
$
|
8,907
|
|
|
$
|
42,858
|
|
|
$
|
1,004
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,106
|
|
|
—
|
|
|
240
|
|
|
1,346
|
|
|
21
|
|
||||||||
Dividends declared on common stock ($0.53 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(351
|
)
|
|
—
|
|
|
—
|
|
|
(351
|
)
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
|
(295
|
)
|
|
(20
|
)
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(500
|
)
|
|
—
|
|
||||||||
Stock based compensation
|
2
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
19
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
11
|
|
|
—
|
|
||||||||
Equity transactions of MPLX & ANDX
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||||
Balance as of June 30, 2019
|
978
|
|
|
$
|
10
|
|
|
(318
|
)
|
|
$
|
(14,573
|
)
|
|
$
|
33,785
|
|
|
$
|
15,146
|
|
|
$
|
(161
|
)
|
|
$
|
8,854
|
|
|
$
|
43,061
|
|
|
$
|
1,005
|
|
ASU
|
|
|
Effective Date
|
2018-13
|
Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
|
|
January 1, 2020
|
2020-04
|
Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
|
|
April 1, 2020
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
2020
|
|
2019
|
||||
Increase due to the issuance of MPLX & ANDX common units
|
$
|
4
|
|
|
$
|
7
|
|
Tax impact
|
(1
|
)
|
|
(2
|
)
|
||
Increase in MPC's additional paid-in capital, net of tax
|
$
|
3
|
|
|
$
|
5
|
|
(a)
|
Impairment expense in the three months ended June 30, 2020 is related to a Midstream terminal asset with remaining net book value of $10 million.
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Balance at January 1, 2020
|
$
|
5,572
|
|
|
$
|
4,951
|
|
|
$
|
9,517
|
|
|
$
|
20,040
|
|
Impairments
|
(5,516
|
)
|
|
—
|
|
|
(1,814
|
)
|
|
(7,330
|
)
|
||||
Transfers
|
(56
|
)
|
|
—
|
|
|
56
|
|
|
—
|
|
||||
Balance at June 30, 2020
|
$
|
—
|
|
|
$
|
4,951
|
|
|
$
|
7,759
|
|
|
$
|
12,710
|
|
(In millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
67
|
|
|
$
|
15
|
|
Receivables, less allowance for doubtful accounts
|
567
|
|
|
615
|
|
||
Inventories
|
115
|
|
|
110
|
|
||
Other current assets
|
49
|
|
|
110
|
|
||
Equity method investments
|
4,065
|
|
|
5,275
|
|
||
Property, plant and equipment, net
|
21,958
|
|
|
22,174
|
|
||
Goodwill
|
7,722
|
|
|
9,536
|
|
||
Right of use assets
|
341
|
|
|
365
|
|
||
Other noncurrent assets
|
1,074
|
|
|
1,323
|
|
||
Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
471
|
|
|
$
|
744
|
|
Payroll and benefits payable
|
2
|
|
|
5
|
|
||
Accrued taxes
|
83
|
|
|
80
|
|
||
Debt due within one year
|
3
|
|
|
9
|
|
||
Operating lease liabilities
|
69
|
|
|
66
|
|
||
Other current liabilities
|
265
|
|
|
259
|
|
||
Long-term debt
|
20,556
|
|
|
19,704
|
|
||
Deferred income taxes
|
11
|
|
|
12
|
|
||
Long-term operating lease liabilities
|
274
|
|
|
302
|
|
||
Deferred credits and other liabilities
|
442
|
|
|
409
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Sales to related parties
|
$
|
106
|
|
|
$
|
186
|
|
|
$
|
271
|
|
|
$
|
372
|
|
Purchases from related parties
|
158
|
|
|
183
|
|
|
353
|
|
|
387
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions, except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Basic
|
|
|
|
|
|
|
|
||||||||
Allocation of earnings:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to MPC
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(9,225
|
)
|
|
$
|
1,099
|
|
Income allocated to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Income (loss) available to common stockholders – basic
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(9,225
|
)
|
|
$
|
1,098
|
|
Weighted average common shares outstanding
|
650
|
|
|
662
|
|
|
649
|
|
|
667
|
|
||||
Basic earnings (loss) per share
|
$
|
0.01
|
|
|
$
|
1.67
|
|
|
$
|
(14.21
|
)
|
|
$
|
1.65
|
|
Diluted
|
|
|
|
|
|
|
|
||||||||
Allocation of earnings:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to MPC
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(9,225
|
)
|
|
$
|
1,099
|
|
Income allocated to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Income (loss) available to common stockholders – diluted
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(9,225
|
)
|
|
$
|
1,098
|
|
Weighted average common shares outstanding
|
650
|
|
|
662
|
|
|
649
|
|
|
667
|
|
||||
Effect of dilutive securities
|
3
|
|
|
4
|
|
|
—
|
|
|
5
|
|
||||
Weighted average common shares, including dilutive effect
|
653
|
|
|
666
|
|
|
649
|
|
|
672
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.01
|
|
|
$
|
1.66
|
|
|
$
|
(14.21
|
)
|
|
$
|
1.63
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Shares issuable under stock-based compensation plans
|
9
|
|
|
4
|
|
|
11
|
|
|
3
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions, except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Number of shares repurchased
|
—
|
|
|
9
|
|
|
—
|
|
|
23
|
|
||||
Cash paid for shares repurchased
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
1,385
|
|
Average cost per share
|
$
|
—
|
|
|
$
|
57.18
|
|
|
$
|
—
|
|
|
$
|
60.75
|
|
•
|
Refining & Marketing – refines crude oil and other feedstocks at our refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States, purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution and marketing services provided largely by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to our Retail business segment and to independent entrepreneurs who operate primarily Marathon® branded outlets.
|
•
|
Retail – sells transportation fuels and convenience products in the retail market across the United States through company-owned and operated convenience stores, primarily under the Speedway® brand, and long-term fuel supply contracts with direct dealers who operate locations mainly under the ARCO® brand.
|
•
|
Midstream – transports, stores, distributes and markets crude oil and refined products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges; gathers, processes and transports natural gas; and gathers, transports, fractionates, stores and markets NGLs. The Midstream segment primarily reflects the results of MPLX.
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Three Months Ended June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Third party(a)
|
$
|
9,441
|
|
|
$
|
4,778
|
|
|
$
|
805
|
|
|
$
|
15,024
|
|
Intersegment
|
1,834
|
|
|
1
|
|
|
1,169
|
|
|
3,004
|
|
||||
Segment revenues
|
$
|
11,275
|
|
|
$
|
4,779
|
|
|
$
|
1,974
|
|
|
$
|
18,028
|
|
Segment income (loss) from operations
|
$
|
(1,619
|
)
|
|
$
|
494
|
|
|
$
|
869
|
|
|
$
|
(256
|
)
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Data
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization(b)
|
$
|
433
|
|
|
$
|
132
|
|
|
$
|
330
|
|
|
$
|
895
|
|
Capital expenditures and investments(c)
|
263
|
|
|
74
|
|
|
425
|
|
|
762
|
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Third party(a)
|
$
|
23,654
|
|
|
$
|
8,944
|
|
|
$
|
931
|
|
|
$
|
33,529
|
|
Intersegment
|
5,466
|
|
|
2
|
|
|
1,218
|
|
|
6,686
|
|
||||
Segment revenues
|
$
|
29,120
|
|
|
$
|
8,946
|
|
|
$
|
2,149
|
|
|
$
|
40,215
|
|
Segment income from operations
|
$
|
906
|
|
|
$
|
493
|
|
|
$
|
878
|
|
|
$
|
2,277
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Data
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization(b)
|
$
|
411
|
|
|
$
|
130
|
|
|
$
|
318
|
|
|
$
|
859
|
|
Capital expenditures and investments(c)
|
430
|
|
|
120
|
|
|
814
|
|
|
1,364
|
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Third party(a)
|
$
|
26,969
|
|
|
$
|
11,547
|
|
|
$
|
1,723
|
|
|
$
|
40,239
|
|
Intersegment
|
5,451
|
|
|
3
|
|
|
2,411
|
|
|
7,865
|
|
||||
Segment revenues
|
$
|
32,420
|
|
|
$
|
11,550
|
|
|
$
|
4,134
|
|
|
$
|
48,104
|
|
Segment income (loss) from operations
|
$
|
(2,241
|
)
|
|
$
|
1,013
|
|
|
$
|
1,774
|
|
|
$
|
546
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Data
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization(b)
|
$
|
880
|
|
|
$
|
257
|
|
|
$
|
675
|
|
|
$
|
1,812
|
|
Capital expenditures and investments(c)
|
722
|
|
|
150
|
|
|
899
|
|
|
1,771
|
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Third party(a)
|
$
|
43,574
|
|
|
$
|
16,320
|
|
|
$
|
1,888
|
|
|
$
|
61,782
|
|
Intersegment
|
9,882
|
|
|
4
|
|
|
2,450
|
|
|
12,336
|
|
||||
Segment revenues
|
$
|
53,456
|
|
|
$
|
16,324
|
|
|
$
|
4,338
|
|
|
$
|
74,118
|
|
Segment income from operations
|
$
|
572
|
|
|
$
|
663
|
|
|
$
|
1,786
|
|
|
$
|
3,021
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Data
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization(b)
|
$
|
838
|
|
|
$
|
256
|
|
|
$
|
625
|
|
|
$
|
1,719
|
|
Capital expenditures and investments(c)
|
824
|
|
|
193
|
|
|
1,637
|
|
|
2,654
|
|
(a)
|
Includes related party sales. See Note 6 for additional information.
|
(b)
|
Differences between segment totals and MPC consolidated totals represent amounts related to corporate and other items not allocated to segments.
|
(c)
|
Includes changes in capital expenditure accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Segment income (loss) from operations
|
$
|
(256
|
)
|
|
$
|
2,277
|
|
|
$
|
546
|
|
|
$
|
3,021
|
|
Corporate(a)
|
(188
|
)
|
|
(179
|
)
|
|
(415
|
)
|
|
(370
|
)
|
||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
||||||||
Equity method investment restructuring gain(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
||||
Transaction-related costs(c)
|
(30
|
)
|
|
(34
|
)
|
|
(65
|
)
|
|
(125
|
)
|
||||
Litigation
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
||||
Impairments(d)
|
(25
|
)
|
|
—
|
|
|
(9,162
|
)
|
|
—
|
|
||||
LCM inventory valuation adjustment(e)
|
1,480
|
|
|
—
|
|
|
(1,740
|
)
|
|
—
|
|
||||
Income (loss) from operations
|
981
|
|
|
2,042
|
|
|
(10,836
|
)
|
|
2,711
|
|
||||
Net interest and other financial costs
|
345
|
|
|
322
|
|
|
683
|
|
|
628
|
|
||||
Income (loss) before income taxes
|
$
|
636
|
|
|
$
|
1,720
|
|
|
$
|
(11,519
|
)
|
|
$
|
2,083
|
|
(a)
|
Corporate consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment.
|
(b)
|
Includes gain related to Capline Pipeline Company LLC (“Capline LLC”). See Note 13.
|
(c)
|
2020 includes costs incurred in connection with the Speedway separation and Midstream strategic review. 2019 includes employee severance, retention and other costs related to the acquisition of Andeavor.
|
(d)
|
Includes goodwill impairment, impairment of equity method investments and impairment of long lived assets. See Note 4 for additional information.
|
(e)
|
See Note 12.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Segment capital expenditures and investments
|
$
|
762
|
|
|
$
|
1,364
|
|
|
$
|
1,771
|
|
|
$
|
2,654
|
|
Less investments in equity method investees
|
214
|
|
|
270
|
|
|
383
|
|
|
595
|
|
||||
Plus items not allocated to segments:
|
|
|
|
|
|
|
|
||||||||
Corporate
|
18
|
|
|
4
|
|
|
45
|
|
|
14
|
|
||||
Capitalized interest
|
27
|
|
|
34
|
|
|
56
|
|
|
65
|
|
||||
Total capital expenditures(a)
|
$
|
593
|
|
|
$
|
1,132
|
|
|
$
|
1,489
|
|
|
$
|
2,138
|
|
(a)
|
Includes changes in capital expenditure accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the six months ended June 30, 2020 and 2019 as reported in the consolidated statements of cash flows.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest income
|
$
|
(2
|
)
|
|
$
|
(9
|
)
|
|
$
|
(8
|
)
|
|
$
|
(18
|
)
|
Interest expense
|
373
|
|
|
350
|
|
|
730
|
|
|
690
|
|
||||
Interest capitalized
|
(35
|
)
|
|
(35
|
)
|
|
(71
|
)
|
|
(67
|
)
|
||||
Pension and other postretirement non-service costs(a)
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
||||
Other financial costs
|
9
|
|
|
13
|
|
|
35
|
|
|
23
|
|
||||
Net interest and other financial costs
|
$
|
345
|
|
|
$
|
322
|
|
|
$
|
683
|
|
|
$
|
628
|
|
(a)
|
See Note 21.
|
•
|
Revising the limitations on the deductibility of interest from 30 percent of adjusted taxable income to 50 percent.
|
•
|
Ability to carry back tax net operating losses ("NOL") five years for NOLs arising in taxable years 2018 through 2020. This provision allows the taxpayer to recover taxes previously paid at a 35 percent federal income tax rate during years prior to 2018. The limitation on the percentage of taxable income that may be offset by the NOL, formerly 80 percent of income, was eliminated for years beginning before 2021.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Tax computed at statutory rate
|
$
|
133
|
|
|
$
|
361
|
|
|
$
|
(2,419
|
)
|
|
$
|
437
|
|
State and local income taxes, net of federal income tax effects
|
33
|
|
|
45
|
|
|
(167
|
)
|
|
88
|
|
||||
Goodwill impairment
|
—
|
|
|
—
|
|
|
1,156
|
|
|
—
|
|
||||
Noncontrolling interests
|
81
|
|
|
(68
|
)
|
|
150
|
|
|
(83
|
)
|
||||
CARES Act legislation
|
102
|
|
|
—
|
|
|
(309
|
)
|
|
—
|
|
||||
Other
|
11
|
|
|
15
|
|
|
12
|
|
|
15
|
|
||||
Total provision (benefit) for income tax
|
$
|
360
|
|
|
$
|
353
|
|
|
$
|
(1,577
|
)
|
|
$
|
457
|
|
(In millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Crude oil
|
$
|
3,163
|
|
|
$
|
3,472
|
|
Refined products
|
5,397
|
|
|
5,548
|
|
||
Materials and supplies
|
1,028
|
|
|
996
|
|
||
Merchandise
|
238
|
|
|
227
|
|
||
Inventories before LCM inventory valuation reserve
|
9,826
|
|
|
10,243
|
|
||
LCM inventory valuation reserve
|
(1,740
|
)
|
|
—
|
|
||
Total
|
$
|
8,086
|
|
|
$
|
10,243
|
|
(In millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Refining & Marketing
|
$
|
29,781
|
|
|
$
|
29,037
|
|
Retail
|
7,199
|
|
|
7,104
|
|
||
Midstream
|
27,696
|
|
|
27,193
|
|
||
Corporate
|
1,328
|
|
|
1,289
|
|
||
Total
|
66,004
|
|
|
64,623
|
|
||
Less accumulated depreciation(a)
|
20,979
|
|
|
19,008
|
|
||
Property, plant and equipment, net
|
$
|
45,025
|
|
|
$
|
45,615
|
|
(a)
|
The June 30, 2020 balance includes property, plant and equipment impairment charges recorded during 2020. See Note 4 for additional information.
|
|
June 30, 2020
|
||||||||||||||||||||||
|
Fair Value Hierarchy
|
|
|
|
|
|
|
||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting and Collateral(a)
|
|
Net Carrying Value on Balance Sheet(b)
|
|
Collateral Pledged Not Offset
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity contracts
|
$
|
255
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(260
|
)
|
|
$
|
3
|
|
|
$
|
46
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity contracts
|
$
|
350
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(358
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Embedded derivatives in commodity contracts
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
December 31, 2019
|
||||||||||||||||||||||
|
Fair Value Hierarchy
|
|
|
|
|
|
|
||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting and Collateral(a)
|
|
Net Carrying Value on Balance Sheet(b)
|
|
Collateral Pledged Not Offset
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity contracts
|
$
|
57
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
(55
|
)
|
|
$
|
8
|
|
|
$
|
73
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity contracts
|
$
|
95
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
(106
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Embedded derivatives in commodity contracts
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|
—
|
|
(a)
|
Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of June 30, 2020, cash collateral of $98 million was netted with the mark-to-market derivative liabilities. As of December 31, 2019, cash collateral of $51 million was netted with mark-to-market derivative liabilities.
|
(b)
|
We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Beginning balance
|
$
|
45
|
|
|
$
|
65
|
|
|
$
|
60
|
|
|
$
|
61
|
|
Unrealized and realized losses included in net income
|
7
|
|
|
1
|
|
|
(7
|
)
|
|
7
|
|
||||
Settlements of derivative instruments
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
||||
Ending balance
|
$
|
51
|
|
|
$
|
65
|
|
|
$
|
51
|
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
||||||||
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period:
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
(7
|
)
|
|
$
|
5
|
|
(In millions)
|
June 30, 2020
|
||||||
Balance Sheet Location
|
Asset
|
|
Liability
|
||||
Commodity derivatives
|
|
|
|
||||
Other current assets
|
$
|
263
|
|
|
$
|
358
|
|
Other current liabilities(a)
|
—
|
|
|
3
|
|
||
Deferred credits and other liabilities(a)
|
—
|
|
|
48
|
|
(In millions)
|
December 31, 2019
|
||||||
Balance Sheet Location
|
Asset
|
|
Liability
|
||||
Commodity derivatives
|
|
|
|
||||
Other current assets
|
$
|
63
|
|
|
$
|
106
|
|
Other current liabilities(a)
|
—
|
|
|
5
|
|
||
Deferred credits and other liabilities(a)
|
—
|
|
|
55
|
|
(a)
|
Includes embedded derivatives.
|
|
Percentage of contracts that expire next quarter
|
|
Position
|
||||
(Units in thousands of barrels)
|
|
Long
|
|
Short
|
|||
Exchange-traded(a)
|
|
|
|
|
|
||
Crude oil
|
94.3%
|
|
46,032
|
|
|
43,019
|
|
Refined products
|
85.3%
|
|
24,489
|
|
|
18,100
|
|
Blending products
|
86.0%
|
|
1,067
|
|
|
2,842
|
|
(a)
|
Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 6,425 long and 2,875 short; Refined products - 1,525 long and 225 short
|
|
Gain (Loss)
|
||||||||||||||
(In millions)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
Income Statement Location
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Sales and other operating revenues
|
$
|
(7
|
)
|
|
$
|
3
|
|
|
$
|
77
|
|
|
$
|
(17
|
)
|
Cost of revenues
|
(105
|
)
|
|
15
|
|
|
26
|
|
|
(65
|
)
|
||||
Total
|
$
|
(112
|
)
|
|
$
|
18
|
|
|
$
|
103
|
|
|
$
|
(82
|
)
|
(In millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Marathon Petroleum Corporation:
|
|
|
|
||||
Senior notes
|
$
|
10,974
|
|
|
$
|
8,474
|
|
Notes payable
|
10
|
|
|
10
|
|
||
Finance lease obligations
|
683
|
|
|
679
|
|
||
MPLX LP:
|
|
|
|
||||
Bank revolving credit facility
|
825
|
|
|
—
|
|
||
Term loan facility
|
1,000
|
|
|
1,000
|
|
||
Senior notes
|
19,100
|
|
|
19,100
|
|
||
Finance lease obligations
|
13
|
|
|
19
|
|
||
Total debt
|
$
|
32,605
|
|
|
$
|
29,282
|
|
Unamortized debt issuance costs
|
(143
|
)
|
|
(134
|
)
|
||
Unamortized (discount) premium, net
|
(296
|
)
|
|
(310
|
)
|
||
Amounts due within one year
|
(1,715
|
)
|
|
(711
|
)
|
||
Total long-term debt due after one year
|
$
|
30,451
|
|
|
$
|
28,127
|
|
(Dollars in millions)
|
|
Total
Capacity
|
|
Outstanding
Borrowings
|
|
Outstanding
Letters
of Credit
|
|
Available
Capacity
|
|
Weighted
Average
Interest
Rate
|
|
Expiration
|
|||||||||
MPC, excluding MPLX
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MPC 364-day bank revolving credit facility
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
—
|
|
|
September 2020
|
MPC 364-day bank revolving credit facility
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
April 2021
|
||||
MPC bank revolving credit facility(a)
|
|
5,000
|
|
|
—
|
|
|
1
|
|
|
4,999
|
|
|
—
|
|
|
October 2023
|
||||
MPC trade receivables securitization facility(b)
|
|
705
|
|
|
—
|
|
|
—
|
|
|
705
|
|
|
—
|
|
|
July 2021
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MPLX
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MPLX bank revolving credit facility(c)
|
|
3,500
|
|
|
825
|
|
|
—
|
|
|
2,675
|
|
|
1.36
|
%
|
|
July 2024
|
(a)
|
Borrowed $3.5 billion and repaid $3.5 billion during the six months ended June 30, 2020.
|
(b)
|
Borrowed $1.175 billion and repaid $1.175 billion during the six months ended June 30, 2020. Availability under our $750 million trade receivables facility is a function of eligible trade receivables, which will be lower in a sustained lower price environment for refined products.
|
(c)
|
Borrowed $2.5 billion at an average interest rate of 1.53 percent and repaid $1.675 billion during the six months ended June 30, 2020.
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Three Months Ended June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Refined products
|
$
|
8,341
|
|
|
$
|
3,160
|
|
|
$
|
120
|
|
|
$
|
11,621
|
|
Merchandise
|
—
|
|
|
1,599
|
|
|
—
|
|
|
1,599
|
|
||||
Crude oil
|
1,003
|
|
|
—
|
|
|
—
|
|
|
1,003
|
|
||||
Midstream services and other
|
97
|
|
|
19
|
|
|
685
|
|
|
801
|
|
||||
Sales and other operating revenues
|
$
|
9,441
|
|
|
$
|
4,778
|
|
|
$
|
805
|
|
|
$
|
15,024
|
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Refined products
|
$
|
22,221
|
|
|
$
|
7,303
|
|
|
$
|
190
|
|
|
$
|
29,714
|
|
Merchandise
|
1
|
|
|
1,613
|
|
|
—
|
|
|
1,614
|
|
||||
Crude oil
|
1,310
|
|
|
—
|
|
|
—
|
|
|
1,310
|
|
||||
Midstream services and other
|
122
|
|
|
28
|
|
|
741
|
|
|
891
|
|
||||
Sales and other operating revenues
|
$
|
23,654
|
|
|
$
|
8,944
|
|
|
$
|
931
|
|
|
$
|
33,529
|
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Refined products
|
$
|
24,880
|
|
|
$
|
8,449
|
|
|
$
|
289
|
|
|
$
|
33,618
|
|
Merchandise
|
1
|
|
|
3,055
|
|
|
—
|
|
|
3,056
|
|
||||
Crude oil
|
1,878
|
|
|
—
|
|
|
—
|
|
|
1,878
|
|
||||
Midstream services and other
|
210
|
|
|
43
|
|
|
1,434
|
|
|
1,687
|
|
||||
Sales and other operating revenues
|
$
|
26,969
|
|
|
$
|
11,547
|
|
|
$
|
1,723
|
|
|
$
|
40,239
|
|
(In millions)
|
Refining & Marketing
|
|
Retail
|
|
Midstream
|
|
Total
|
||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Refined products
|
$
|
40,971
|
|
|
$
|
13,250
|
|
|
$
|
406
|
|
|
$
|
54,627
|
|
Merchandise
|
2
|
|
|
3,022
|
|
|
—
|
|
|
3,024
|
|
||||
Crude oil
|
2,381
|
|
|
—
|
|
|
—
|
|
|
2,381
|
|
||||
Midstream services and other
|
220
|
|
|
48
|
|
|
1,482
|
|
|
1,750
|
|
||||
Sales and other operating revenues
|
$
|
43,574
|
|
|
$
|
16,320
|
|
|
$
|
1,888
|
|
|
$
|
61,782
|
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
2020
|
|
2019
|
||||
Net cash provided by operating activities included:
|
|
|
|
||||
Interest paid (net of amounts capitalized)
|
$
|
601
|
|
|
$
|
579
|
|
Net income taxes paid to taxing authorities
|
6
|
|
|
362
|
|
||
Non-cash investing and financing activities:
|
|
|
|
||||
Contribution of assets(a)
|
—
|
|
|
143
|
|
||
Fair value of assets acquired(b)
|
—
|
|
|
350
|
|
(a)
|
2019 includes the contribution of net assets to Capline LLC. See Note 13.
|
(b)
|
2019 includes the recognition of the Capline LLC equity method investment. See Note 13.
|
(In millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Cash and cash equivalents
|
$
|
1,091
|
|
|
$
|
1,527
|
|
Restricted cash(a)
|
2
|
|
|
2
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
1,093
|
|
|
$
|
1,529
|
|
(a)
|
The restricted cash balance is included within other current assets on the consolidated balance sheets.
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
2020
|
|
2019
|
||||
Additions to property, plant and equipment per the consolidated statements of cash flows
|
$
|
1,910
|
|
|
$
|
2,419
|
|
Decrease in capital accruals
|
(421
|
)
|
|
(281
|
)
|
||
Total capital expenditures
|
$
|
1,489
|
|
|
$
|
2,138
|
|
(In millions)
|
Pension Benefits
|
|
Other Benefits
|
|
Gain on Cash Flow Hedge
|
|
Workers Compensation
|
|
Total
|
||||||||||
Balance as of December 31, 2018
|
$
|
(132
|
)
|
|
$
|
(23
|
)
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
(144
|
)
|
Other comprehensive income (loss) before reclassifications, net of tax of ($3)
|
(7
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization – prior service credit(a)
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||||
– actuarial loss(a)
|
11
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
– settlement loss(a)
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||
Tax effect
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|||||
Other comprehensive loss
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(17
|
)
|
|||||
Balance as of June 30, 2019
|
$
|
(147
|
)
|
|
$
|
(23
|
)
|
|
$
|
2
|
|
|
$
|
7
|
|
|
$
|
(161
|
)
|
(In millions)
|
Pension Benefits
|
|
Other Benefits
|
|
Gain on Cash Flow Hedge
|
|
Workers Compensation
|
|
Total
|
||||||||||
Balance as of December 31, 2019
|
$
|
(212
|
)
|
|
$
|
(116
|
)
|
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
(320
|
)
|
Other comprehensive loss before reclassifications, net of tax of ($4)
|
(10
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization – prior service credit(a)
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||||
– actuarial loss(a)
|
18
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
– settlement loss(a)
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||
Tax effect
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||
Other comprehensive loss
|
(13
|
)
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(16
|
)
|
|||||
Balance as of June 30, 2020
|
$
|
(225
|
)
|
|
$
|
(117
|
)
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(336
|
)
|
(a)
|
These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 21.
|
|
Three Months Ended June 30,
|
||||||||||
|
Pension Benefits
|
|
Other Benefits
|
||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
||||
Service cost
|
83
|
|
|
60
|
|
|
9
|
|
|
8
|
|
Interest cost
|
24
|
|
|
27
|
|
|
9
|
|
|
10
|
|
Expected return on plan assets
|
(32
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
Amortization – prior service credit
|
(12
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
– actuarial loss
|
10
|
|
|
7
|
|
|
—
|
|
|
(1
|
)
|
– settlement loss
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Net periodic benefit cost
|
74
|
|
|
53
|
|
|
18
|
|
|
17
|
|
|
Six Months Ended June 30,
|
||||||||||||||
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
152
|
|
|
$
|
118
|
|
|
$
|
18
|
|
|
$
|
16
|
|
Interest cost
|
49
|
|
|
55
|
|
|
17
|
|
|
19
|
|
||||
Expected return on plan assets
|
(66
|
)
|
|
(63
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization – prior service credit
|
(23
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
||||
– actuarial loss
|
18
|
|
|
11
|
|
|
1
|
|
|
(1
|
)
|
||||
– settlement loss
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
$
|
131
|
|
|
$
|
100
|
|
|
$
|
36
|
|
|
$
|
34
|
|
•
|
future levels of revenues, refining and marketing margins, operating costs, retail gasoline and distillate margins, merchandise margins, income from operations, net income or earnings per share;
|
•
|
future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses;
|
•
|
the success or timing of completion of ongoing or anticipated capital or maintenance projects;
|
•
|
business strategies, growth opportunities and expected investment;
|
•
|
consumer demand for refined products, natural gas and NGLs;
|
•
|
the timing and amount of any future common stock repurchases; and
|
•
|
the anticipated effects of actions of third parties such as competitors, activist investors or federal, foreign, state or local regulatory authorities or plaintiffs in litigation.
|
•
|
the effects of the outbreak of COVID-19 and the adverse impact thereof on our business, financial condition, results of operations and cash flows, including our growth, operating costs, labor availability, logistical capabilities, customer demand for our products and industry demand generally, margins, inventory value, cash position, taxes, the price of our securities and trading markets with respect thereto, our ability to access capital markets, and the global economy and financial markets generally;
|
•
|
the effects of the outbreak of COVID-19, and the current economic environment generally, on our working capital, cash flows and liquidity, which can be significantly affected by decreases in commodity prices;
|
•
|
our ability to successfully complete the planned Speedway sale and realize the expected benefits within the expected timeframe or at all;
|
•
|
the risk that the cost savings and any other synergies from the Andeavor transaction may not be fully realized or may take longer to realize than expected;
|
•
|
risks relating to any unforeseen liabilities of Andeavor;
|
•
|
further impairments;
|
•
|
risks related to the acquisition of Andeavor Logistics LP (“ANDX”) by MPLX LP (“MPLX”);
|
•
|
our ability to complete any divestitures on commercially reasonable terms and within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows;
|
•
|
the effect of restructuring or reorganization of business components;
|
•
|
the regional, national and worldwide availability and pricing of refined products, crude oil, natural gas, NGLs and other feedstocks;
|
•
|
our ability to manage disruptions in credit markets or changes to credit ratings;
|
•
|
the reliability of processing units and other equipment;
|
•
|
the adequacy of capital resources and liquidity, including availability, timing and amounts of free cash flow necessary to execute business plans and to effect any share repurchases or to maintain or increase the dividend;
|
•
|
the potential effects of judicial or other proceedings on the business, financial condition, results of operations and cash flows;
|
•
|
continued or further volatility in and degradation of general economic, market, industry or business conditions as a result of the COVID-19 pandemic, other infectious disease outbreaks or otherwise;
|
•
|
compliance with federal and state environmental, economic, health and safety, energy and other policies and regulations, including the cost of compliance with the Renewable Fuel Standard, and enforcement actions initiated thereunder;
|
•
|
adverse market conditions or other similar risks affecting MPLX;
|
•
|
refining industry overcapacity or under capacity;
|
•
|
changes in producer customers’ drilling plans or in volumes of throughput of crude oil, natural gas, NGLs, refined products or other hydrocarbon-based products;
|
•
|
non-payment or non-performance by our producer and other customers;
|
•
|
changes in the cost or availability of third-party vessels, pipelines, railcars and other means of transportation for crude oil, natural gas, NGLs, feedstocks and refined products;
|
•
|
the price, availability and acceptance of alternative fuels and alternative-fuel vehicles and laws mandating such fuels or vehicles;
|
•
|
political and economic conditions in nations that consume refined products, natural gas and NGLs, including the United States and Mexico, and in crude oil producing regions, including the Middle East, Africa, Canada and South America;
|
•
|
actions taken by our competitors, including pricing adjustments, expansion of retail activities, the expansion and retirement of refining capacity and the expansion and retirement of pipeline capacity, processing, fractionation and treating facilities in response to market conditions;
|
•
|
completion of pipeline projects within the United States;
|
•
|
changes in fuel and utility costs for our facilities;
|
•
|
accidents or other unscheduled shutdowns affecting our refineries, machinery, pipelines, processing, fractionation and treating facilities or equipment, or those of our suppliers or customers;
|
•
|
acts of war, terrorism or civil unrest that could impair our ability to produce refined products, receive feedstocks or to gather, process, fractionate or transport crude oil, natural gas, NGLs or refined products;
|
•
|
adverse changes in laws including with respect to tax and regulatory matters;
|
•
|
political pressure and influence of environmental groups and other stakeholders upon policies and decisions related to the production, gathering, refining, processing, fractionation, transportation and marketing of crude oil or other feedstocks, refined products, natural gas, NGLs or other hydrocarbon-based products;
|
•
|
labor and material shortages; and
|
•
|
the costs, disruption and diversion of management’s attention associated with campaigns commenced by activist investors.
|
•
|
Refining & Marketing – refines crude oil and other feedstocks at our refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States, purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution and marketing services provided largely by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to our Retail business segment and to independent entrepreneurs who operate primarily Marathon® branded outlets.
|
•
|
Retail – sells transportation fuels and convenience products in the retail market across the United States through company-owned and operated convenience stores, primarily under the Speedway® brand, and long-term fuel supply contracts with direct dealers who operate locations mainly under the ARCO® brand.
|
•
|
Midstream – transports, stores, distributes and markets crude oil and refined products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges; gathers, processes and transports natural gas; and gathers, transports, fractionates, stores and markets NGLs. The Midstream segment primarily reflects the results of MPLX.
|
•
|
We expect to defer or delay certain capital expenditures of approximately $1.35 billion, resulting in planned 2020 capital spending of $3.0 billion, a reduction of approximately 30 percent from our initial plan for the year. The reductions are planned across all segments of the business, including: $250 million in Refining & Marketing; $770 million in Midstream, which includes MPLX; $250 million in Retail; and $80 million in Corporate. Remaining capital spend primarily relates to growth projects that are already in progress or spending that supports the safe and reliable operation of our facilities.
|
•
|
We have taken and continue to take actions to reduce 2020 forecasted operating expenses by approximately $950 million, primarily through reductions of fixed costs and deferral of certain expense projects, which includes $200 million of operating expense reductions at MPLX.
|
•
|
Share repurchases have temporarily been suspended. The company will evaluate the timing of future repurchases as market conditions evolve.
|
•
|
On April 27, 2020, we entered into an additional $1 billion 364-day revolving credit facility, which expires in 2021, to provide incremental liquidity and financial flexibility during the commodity price and demand downturn.
|
•
|
On April 27, 2020, we closed on the issuance of $2.5 billion of senior notes. Proceeds from the senior notes were used to pay down certain amounts outstanding on the five-year revolving credit facility.
|
•
|
During June 2020, we repaid the remaining amounts outstanding on the five-year revolving credit facility. At June 30, 2020, we had $7.7 billion available on our variable credit facilities.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions, except per share data)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Income (loss) from operations by segment
|
|
|
|
|
|
|
|
|||||||||
Refining & Marketing
|
$
|
(1,619
|
)
|
|
$
|
906
|
|
|
$
|
(2,241
|
)
|
|
$
|
572
|
|
|
Retail
|
494
|
|
|
493
|
|
|
1,013
|
|
|
663
|
|
|||||
Midstream
|
869
|
|
|
878
|
|
|
1,774
|
|
|
1,786
|
|
|||||
Corporate
|
(188
|
)
|
|
(179
|
)
|
|
(415
|
)
|
|
(370
|
)
|
|||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|||||||||
Equity method investment restructuring gain
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|||||
Transaction-related costs
|
(30
|
)
|
|
(34
|
)
|
|
(65
|
)
|
|
(125
|
)
|
|||||
Litigation
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Impairments
|
(25
|
)
|
|
—
|
|
|
(9,162
|
)
|
|
—
|
|
|||||
LCM inventory valuation adjustment
|
1,480
|
|
|
—
|
|
|
(1,740
|
)
|
|
—
|
|
|||||
Income from operations
|
$
|
981
|
|
|
$
|
2,042
|
|
|
$
|
(10,836
|
)
|
|
$
|
2,711
|
|
|
Net income (loss) attributable to MPC
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(9,225
|
)
|
|
$
|
1,099
|
|
|
Net income attributable to MPC per diluted share
|
$
|
0.01
|
|
|
$
|
1.66
|
|
|
$
|
(14.21
|
)
|
|
$
|
1.63
|
|
•
|
The Gulf Coast crack spread uses three barrels of LLS crude producing two barrels of USGC CBOB gasoline and one barrel of USGC ULSD;
|
•
|
The Mid-Continent crack spread uses three barrels of WTI crude producing two barrels of Chicago CBOB gasoline and one barrel of Chicago ULSD; and
|
•
|
The West Coast crack spread uses three barrels of ANS crude producing two barrels of LA CARBOB and one barrel of LA CARB Diesel.
|
(a)
|
Crack spread based on 38 percent LLS, 38 percent WTI and 24 percent ANS with Gulf Coast, Mid-Continent and West Coast product pricing, respectively, and assumes all other differentials and pricing relationships remain unchanged.
|
(b)
|
Sour crude oil basket consists of the following crudes: ANS, Argus Sour Crude Index, Maya and Western Canadian Select. We expect approximately 50 percent of the crude processed at our refineries in 2020 will be sour crude.
|
(c)
|
Sweet crude oil basket consists of the following crudes: Bakken, Brent, LLS, WTI-Cushing and WTI-Midland. We expect approximately 50 percent of the crude processed at our refineries in 2020 will be sweet crude.
|
(d)
|
This is consumption-based exposure for our Refining & Marketing segment and does not include the sales exposure for our Midstream segment.
|
•
|
the selling prices realized for refined products;
|
•
|
the types of crude oil and other charge and blendstocks processed;
|
•
|
our refinery yields;
|
•
|
the cost of products purchased for resale; and
|
•
|
the impact of commodity derivative instruments used to hedge price risk.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||
(In millions)
|
|
2020
|
|
2019
|
|
Variance
|
|
2020
|
|
2019
|
|
Variance
|
||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sales and other operating revenues
|
$
|
15,024
|
|
|
$
|
33,529
|
|
|
$
|
(18,505
|
)
|
|
$
|
40,239
|
|
|
$
|
61,782
|
|
|
$
|
(21,543
|
)
|
|
Income (loss) from equity method investments(a)
|
105
|
|
|
107
|
|
|
(2
|
)
|
|
(1,105
|
)
|
|
206
|
|
|
(1,311
|
)
|
|||||||
Net gain on disposal of assets
|
2
|
|
|
4
|
|
|
(2
|
)
|
|
6
|
|
|
218
|
|
|
(212
|
)
|
|||||||
Other income
|
67
|
|
|
30
|
|
|
37
|
|
|
138
|
|
|
65
|
|
|
73
|
|
|||||||
Total revenues and other income
|
15,198
|
|
|
33,670
|
|
|
(18,472
|
)
|
|
39,278
|
|
|
62,271
|
|
|
(22,993
|
)
|
|||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of revenues (excludes items below)
|
13,777
|
|
|
29,682
|
|
|
(15,905
|
)
|
|
36,598
|
|
|
55,642
|
|
|
(19,044
|
)
|
|||||||
LCM inventory valuation adjustment
|
(1,480
|
)
|
|
—
|
|
|
(1,480
|
)
|
|
1,740
|
|
|
—
|
|
|
1,740
|
|
|||||||
Impairment expense
|
25
|
|
|
—
|
|
|
25
|
|
|
7,847
|
|
|
—
|
|
|
7,847
|
|
|||||||
Depreciation and amortization
|
935
|
|
|
886
|
|
|
49
|
|
|
1,897
|
|
|
1,805
|
|
|
92
|
|
|||||||
Selling, general and administrative expenses
|
746
|
|
|
886
|
|
|
(140
|
)
|
|
1,567
|
|
|
1,753
|
|
|
(186
|
)
|
|||||||
Other taxes
|
214
|
|
|
174
|
|
|
40
|
|
|
465
|
|
|
360
|
|
|
105
|
|
|||||||
Total costs and expenses
|
14,217
|
|
|
31,628
|
|
|
(17,411
|
)
|
|
50,114
|
|
|
59,560
|
|
|
(9,446
|
)
|
|||||||
Income (loss) from operations
|
981
|
|
|
2,042
|
|
|
(1,061
|
)
|
|
(10,836
|
)
|
|
2,711
|
|
|
(13,547
|
)
|
|||||||
Net interest and other financial costs
|
345
|
|
|
322
|
|
|
23
|
|
|
683
|
|
|
628
|
|
|
55
|
|
|||||||
Income (loss) before income taxes
|
636
|
|
|
1,720
|
|
|
(1,084
|
)
|
|
(11,519
|
)
|
|
2,083
|
|
|
(13,602
|
)
|
|||||||
Provision (benefit) for income taxes
|
360
|
|
|
353
|
|
|
7
|
|
|
(1,577
|
)
|
|
457
|
|
|
(2,034
|
)
|
|||||||
Net income (loss)
|
276
|
|
|
1,367
|
|
|
(1,091
|
)
|
|
(9,942
|
)
|
|
1,626
|
|
|
(11,568
|
)
|
|||||||
Less net income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Redeemable noncontrolling interest
|
21
|
|
|
21
|
|
|
—
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|||||||
Noncontrolling interests
|
246
|
|
|
240
|
|
|
6
|
|
|
(758
|
)
|
|
486
|
|
|
(1,244
|
)
|
|||||||
Net income (loss) attributable to MPC
|
$
|
9
|
|
|
$
|
1,106
|
|
|
$
|
(1,097
|
)
|
|
$
|
(9,225
|
)
|
|
$
|
1,099
|
|
|
$
|
(10,324
|
)
|
(a)
|
The first six months of 2020 includes $1.32 billion of impairment expense. See Note 4 to the unaudited consolidated financial statements for further information.
|
•
|
decreased sales and other operating revenues of $18.51 billion primarily due to decreased Refining & Marketing segment refined product sales volumes, which decreased 936 mbpd, and decreased average refined product sales prices of $0.98 per gallon largely due to reduced travel and business operations associated with the COVID-19 pandemic; and
|
•
|
increased other income of $37 million mainly due to an agreement between Speedway and Pilot Travel Centers LLC (“PTC”), effective October 1, 2019, in which PTC supplies, prices and sells diesel fuel at certain Speedway and PTC locations with both companies sharing in the diesel fuel margins. Speedway recognizes its share of the diesel fuel margins as Other Income and no longer reports the revenue or costs and expenses related to sales at its locations since these are now conducted by PTC.
|
•
|
decreased cost of revenues of $15.91 billion mainly due to lower refined product sales volumes, which decreased 936 mbpd primarily due to reduced travel and business operations associated with the COVID-19 pandemic;
|
•
|
an LCM benefit of $1.48 billion resulting from a lower LCM reserve as of June 30, 2020 as compared to March 31, 2020;
|
•
|
decreased selling, general and administrative expenses of $140 million mainly due to decreases in salaries and employee-related expenses, credit card processing fees and litigation expense; and
|
•
|
increased other taxes of $40 million primarily due to increased property and environmental taxes of approximately $22 million and $18 million, respectively. Property taxes increased in the current period mainly due to the absence of property tax refunds and tax exemptions received in the second quarter of 2019 and environmental taxes increased largely due to the reinstatement of the Oil Spill Tax in 2020, which was not in effect for all of 2019.
|
•
|
decreased sales and other operating revenues of $21.54 billion primarily due to decreased Refining & Marketing segment refined product sales volumes, which decreased 509 mbpd, and decreased average refined product sales prices of $0.57 per gallon reduced largely due to reduced travel and business operations associated with the COVID-19 pandemic;
|
•
|
decreased income from equity method investments of $1.31 billion largely due to impairments of equity method investments of $1.32 billion primarily driven by the effects of COVID-19 and the decline in commodity prices;
|
•
|
decreased net gain on disposal of assets of $212 million mainly due to the absence of a $207 million gain recognized in 2019 in connection with MPC’s exchange of its undivided interest in the Capline pipeline system for an equity ownership in Capline LLC; and
|
•
|
increased other income of $73 million mainly due to an agreement between Speedway and PTC, effective October 1, 2019, in which PTC supplies, prices and sells diesel fuel at certain Speedway and PTC locations with both companies sharing in the diesel fuel margins. Speedway recognizes its share of the diesel fuel margins as Other Income and no longer reports the revenue or costs and expenses related to sales at its locations since these are now conducted by PTC.
|
•
|
decreased cost of revenues of $19.04 billion primarily due to reduced travel and business operations associated with the COVID-19 pandemic;
|
•
|
an LCM charge of $1.74 billion primarily driven by the effects of COVID-19 and the decline in commodity prices;
|
•
|
impairment expense of $7.85 billion recorded for goodwill and long-lived assets of $7.33 billion and $517 million, respectively, primarily driven by the effects of COVID-19 and the decline in commodity prices;
|
•
|
decreased selling, general and administrative expenses of $186 million mainly due to decreases in transaction-related expenses, salaries and employee-related expenses and credit card processing fees; and
|
•
|
increased other taxes of $105 million primarily due to increased property and environmental taxes of approximately $56 million and $39 million, respectively. Property taxes increased in the current period mainly due to the absence of property tax refunds received in the first six months of 2019 and environmental taxes increased largely due to the reinstatement of the Oil Spill Tax in 2020, which was not in effect for all of 2019.
|
(a)
|
Includes intersegment sales and sales destined for export.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Refining & Marketing Operating Statistics
|
|
|
|
|
|
|
|
|
||||||||
Net refinery throughput (mbpd)
|
|
2,276
|
|
|
3,135
|
|
|
2,635
|
|
|
3,109
|
|
||||
Refining & Marketing margin per barrel(a)(b)
|
|
$
|
7.13
|
|
|
$
|
15.24
|
|
|
$
|
9.50
|
|
|
$
|
13.23
|
|
Less:
|
|
|
|
|
|
|
|
|
||||||||
Refining operating costs per barrel(c)
|
|
6.13
|
|
|
5.35
|
|
|
6.06
|
|
|
5.47
|
|
||||
Distribution costs per barrel(d)
|
|
5.86
|
|
|
4.48
|
|
|
5.22
|
|
|
4.56
|
|
||||
Refining planned turnaround costs per barrel
|
|
0.78
|
|
|
0.83
|
|
|
1.02
|
|
|
0.75
|
|
||||
Depreciation and amortization per barrel
|
|
2.09
|
|
|
1.44
|
|
|
1.83
|
|
|
1.49
|
|
||||
Plus (Less):
|
|
|
|
|
|
|
|
|
||||||||
Other per barrel(e)
|
|
(0.09
|
)
|
|
0.04
|
|
|
(0.04
|
)
|
|
0.06
|
|
||||
Refining & Marketing segment income (loss) per barrel
|
|
$
|
(7.82
|
)
|
|
$
|
3.18
|
|
|
$
|
(4.67
|
)
|
|
$
|
1.02
|
|
(a)
|
Sales revenue less cost of refinery inputs and purchased products, divided by net refinery throughput.
|
(b)
|
See “Non-GAAP Measures” section for reconciliation and further information regarding this non-GAAP measure.
|
(c)
|
Includes refining operating costs and major maintenance costs. Excludes planned turnaround and depreciation and amortization expense.
|
(d)
|
Includes fees paid to MPLX. On a per barrel throughput basis, these fees were $4.06 and $2.80 for the three months ended June 30, 2020 and 2019, respectively, and $3.54 and $2.81 for the six months ended June 30, 2020 and 2019, respectively. Excludes depreciation and amortization expense.
|
(e)
|
Includes income (loss) from equity method investments, net gain (loss) on disposal of assets and other income.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
Benchmark Spot Prices (dollars per gallon)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Chicago CBOB unleaded regular gasoline
|
$
|
0.78
|
|
|
$
|
1.94
|
|
|
$
|
0.99
|
|
|
$
|
1.73
|
|
|
Chicago ULSD
|
0.88
|
|
|
1.94
|
|
|
1.15
|
|
|
1.89
|
|
|||||
USGC CBOB unleaded regular gasoline
|
0.81
|
|
|
1.79
|
|
|
1.03
|
|
|
1.66
|
|
|||||
USGC ULSD
|
0.91
|
|
|
1.94
|
|
|
1.19
|
|
|
1.91
|
|
|||||
LA CARBOB
|
|
0.95
|
|
|
2.18
|
|
|
1.24
|
|
|
2.00
|
|
||||
LA CARB diesel
|
|
0.97
|
|
|
2.13
|
|
|
1.30
|
|
|
2.02
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Market Indicators (dollars per barrel)
|
|
|
|
|
|
|
|
|
||||||||
LLS
|
|
$
|
30.39
|
|
|
$
|
67.15
|
|
|
$
|
38.95
|
|
|
$
|
64.79
|
|
WTI
|
|
28.00
|
|
|
59.91
|
|
|
36.82
|
|
|
57.45
|
|
||||
ANS
|
|
30.57
|
|
|
68.28
|
|
|
40.72
|
|
|
66.41
|
|
||||
Crack Spreads:
|
|
|
|
|
|
|
|
|
||||||||
Mid-Continent WTI 3-2-1
|
$
|
4.72
|
|
|
$
|
20.43
|
|
|
$
|
6.05
|
|
|
16.15
|
|
||
USGC LLS 3-2-1
|
2.75
|
|
|
8.98
|
|
|
4.60
|
|
|
7.14
|
|
|||||
West Coast ANS 3-2-1
|
7.44
|
|
|
21.78
|
|
|
10.04
|
|
|
16.93
|
|
|||||
Blended 3-2-1(a)
|
4.62
|
|
|
16.41
|
|
|
6.45
|
|
|
12.91
|
|
|||||
Crude Oil Differentials:
|
|
|
|
|
|
|
|
|||||||||
Sweet
|
$
|
(1.70
|
)
|
|
$
|
(2.62
|
)
|
|
$
|
(1.20
|
)
|
|
$
|
(2.95
|
)
|
|
Sour
|
(3.78
|
)
|
|
(2.04
|
)
|
|
(4.34
|
)
|
|
(2.58
|
)
|
(a)
|
Blended 3-2-1 Mid-Continent/USGC/West Coast crack spread is 38/38/24 percent in 2020 and 2019. These blends are based on our refining capacity by region in each period.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Refining & Marketing Operating Statistics
|
|
|
|
|
|
|
|
||||
Refined product export sales volumes (mbpd)(a)
|
219
|
|
|
408
|
|
|
301
|
|
|
420
|
|
Crude oil capacity utilization percent(b)
|
71
|
|
|
97
|
|
|
81
|
|
|
96
|
|
Refinery throughputs (mbpd):(c)
|
|
|
|
|
|
|
|
||||
Crude oil refined
|
2,165
|
|
|
2,937
|
|
|
2,475
|
|
|
2,902
|
|
Other charge and blendstocks
|
111
|
|
|
198
|
|
|
160
|
|
|
207
|
|
Net refinery throughput
|
2,276
|
|
|
3,135
|
|
|
2,635
|
|
|
3,109
|
|
Sour crude oil throughput percent
|
53
|
|
|
47
|
|
|
50
|
|
|
49
|
|
Sweet crude oil throughput percent
|
47
|
|
|
53
|
|
|
50
|
|
|
51
|
|
Refined product yields (mbpd):(c)
|
|
|
|
|
|
|
|
||||
Gasoline
|
1,114
|
|
|
1,528
|
|
|
1,301
|
|
|
1,531
|
|
Distillates
|
834
|
|
|
1,080
|
|
|
927
|
|
|
1,086
|
|
Propane
|
45
|
|
|
57
|
|
|
52
|
|
|
55
|
|
Feedstocks and petrochemicals
|
217
|
|
|
370
|
|
|
284
|
|
|
350
|
|
Heavy fuel oil
|
27
|
|
|
51
|
|
|
32
|
|
|
48
|
|
Asphalt
|
76
|
|
|
83
|
|
|
78
|
|
|
81
|
|
Total
|
2,313
|
|
|
3,169
|
|
|
2,674
|
|
|
3,151
|
|
(a)
|
Represents fully loaded export cargoes for each time period. These sales volumes are included in the total sales volume amounts.
|
(b)
|
Based on calendar-day capacity, which is an annual average that includes down time for planned maintenance and other normal operating activities.
|
(c)
|
Excludes inter-refinery volumes which totaled 70 mbpd and 102 mbpd for the three months ended June 30, 2020 and 2019, respectively, and 74 mbpd and 88 mbpd for the six months ended June 30, 2020 and 2019, respectively.
|
(a)
|
The price paid by consumers or direct dealers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees (where applicable), divided by gasoline and distillate sales volume. Excludes LCM inventory valuation adjustments.
|
(b)
|
See “Non-GAAP Measures” section for reconciliation and further information regarding this non-GAAP measure.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
Key Financial and Operating Data
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Average fuel sales prices (dollars per gallon)
|
$
|
1.93
|
|
|
$
|
2.67
|
|
|
$
|
2.20
|
|
|
$
|
2.62
|
|
|
Merchandise sales (in millions)
|
|
$
|
1,603
|
|
|
$
|
1,620
|
|
|
$
|
3,064
|
|
|
$
|
3,033
|
|
Merchandise margin (in millions)(a)(b)
|
$
|
452
|
|
|
$
|
471
|
|
|
$
|
866
|
|
|
$
|
878
|
|
|
Same store gasoline sales volume (period over period)(c)
|
(36.6
|
)%
|
|
(2.4
|
)%
|
|
(22.7
|
)%
|
|
(2.8
|
)%
|
|||||
Same store merchandise sales (period over period)(c)(d)
|
(4.0
|
)%
|
|
6.3
|
%
|
|
(1.8
|
)%
|
|
5.9
|
%
|
|||||
Convenience stores at period-end
|
|
3,873
|
|
|
3,913
|
|
|
|
|
|
||||||
Direct dealer locations at period-end
|
1,074
|
|
|
1,062
|
|
|
|
|
|
(a)
|
The price paid by the consumers less the cost of merchandise.
|
(b)
|
See “Non-GAAP Measures” section for reconciliation and further information regarding this non-GAAP measure.
|
(c)
|
Same store comparison includes only locations owned at least 13 months.
|
(d)
|
Excludes cigarettes.
|
(a)
|
On owned common-carrier pipelines, excluding equity method investments.
|
(b)
|
Includes amounts related to unconsolidated equity method investments on a 100 percent basis.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
Benchmark Prices
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Natural Gas NYMEX HH ($ per MMBtu)
|
$
|
1.76
|
|
|
$
|
2.51
|
|
|
$
|
1.81
|
|
|
$
|
2.69
|
|
|
C2 + NGL Pricing ($ per gallon)(a)
|
$
|
0.34
|
|
|
$
|
0.52
|
|
|
$
|
0.37
|
|
|
$
|
0.57
|
|
(a)
|
C2 + NGL pricing based on Mont Belvieu prices assuming an NGL barrel of approximately 35 percent ethane, 35 percent propane, 6 percent iso-butane, 12 percent normal butane and 12 percent natural gasoline.
|
Key Financial Information (in millions)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Corporate(a)
|
$
|
(188
|
)
|
|
$
|
(179
|
)
|
|
$
|
(415
|
)
|
|
$
|
(370
|
)
|
|
Items not allocated to segments:
|
|
|
|
|
|
|
|
|||||||||
Capline restructuring gain
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|||||
Transaction-related costs
|
(30
|
)
|
|
(34
|
)
|
|
(65
|
)
|
|
(125
|
)
|
|||||
Litigation
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Impairments
|
(25
|
)
|
|
—
|
|
|
(9,162
|
)
|
|
—
|
|
|||||
LCM inventory valuation adjustment
|
1,480
|
|
|
—
|
|
|
(1,740
|
)
|
|
—
|
|
(a)
|
Corporate costs consist primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment.
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||
Refining & Marketing income from operations(a)
|
|
$
|
(1,619
|
)
|
|
$
|
906
|
|
|
$
|
(2,241
|
)
|
|
$
|
572
|
|
|
Plus (Less):
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative expenses
|
|
500
|
|
|
574
|
|
|
1,054
|
|
|
1,118
|
|
|||||
LCM inventory valuation adjustment
|
|
1,470
|
|
|
—
|
|
|
(1,715
|
)
|
|
—
|
|
|||||
(Income) loss from equity method investments
|
|
19
|
|
|
(3
|
)
|
|
22
|
|
|
(4
|
)
|
|||||
Net gain on disposal of assets
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(6
|
)
|
|||||
Other income
|
|
(4
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(22
|
)
|
|||||
Refining & Marketing gross margin
|
|
367
|
|
|
1,469
|
|
|
(2,887
|
)
|
|
1,658
|
|
|||||
Plus (Less):
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses (excluding depreciation and amortization)
|
|
2,231
|
|
|
2,610
|
|
|
5,053
|
|
|
5,215
|
|
|||||
LCM inventory valuation adjustment
|
|
(1,470
|
)
|
|
—
|
|
|
1,715
|
|
|
—
|
|
|||||
Depreciation and amortization
|
|
433
|
|
|
411
|
|
|
880
|
|
|
838
|
|
|||||
Gross margin excluded from Refining & Marketing margin(b)
|
|
(66
|
)
|
|
(142
|
)
|
|
(163
|
)
|
|
(259
|
)
|
|||||
Other taxes included in Refining & Marketing margin
|
|
(19
|
)
|
|
(1
|
)
|
|
(43
|
)
|
|
(5
|
)
|
|||||
Refining & Marketing margin(a)
|
|
$
|
1,476
|
|
|
$
|
4,347
|
|
|
$
|
4,555
|
|
|
$
|
7,447
|
|
(a)
|
LCM inventory valuation adjustments are excluded from Refining & Marketing income from operations and Refining & Marketing margin.
|
(b)
|
The gross margin, excluding depreciation and amortization, of operations that support Refining & Marketing such as biodiesel and ethanol ventures, power facilities and processing of credit card transactions.
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||
Retail income from operations(a)
|
|
$
|
494
|
|
|
$
|
493
|
|
|
$
|
1,013
|
|
|
$
|
663
|
|
|
Plus (Less):
|
|
|
|
|
|
|
|
|
|||||||||
Operating, selling, general and administrative expenses
|
|
577
|
|
|
597
|
|
|
1,175
|
|
|
1,180
|
|
|||||
LCM inventory valuation adjustment
|
|
10
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|||||
Income from equity method investments
|
|
(27
|
)
|
|
(21
|
)
|
|
(49
|
)
|
|
(38
|
)
|
|||||
Net gain on disposal of assets
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|||||
Other income
|
|
(44
|
)
|
|
(4
|
)
|
|
(93
|
)
|
|
(6
|
)
|
|||||
Retail gross margin
|
|
1,010
|
|
|
1,065
|
|
|
2,020
|
|
|
1,797
|
|
|||||
Plus (Less):
|
|
|
|
|
|
|
|
|
|||||||||
LCM inventory valuation adjustment
|
|
(10
|
)
|
|
—
|
|
|
25
|
|
|
—
|
|
|||||
Depreciation and amortization
|
|
132
|
|
|
130
|
|
|
257
|
|
|
256
|
|
|||||
Retail margin(a)
|
|
$
|
1,132
|
|
|
$
|
1,195
|
|
|
$
|
2,302
|
|
|
$
|
2,053
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Retail margin:
|
|
|
|
|
|
|
|
|
|||||||||
Fuel margin
|
|
$
|
657
|
|
|
$
|
694
|
|
|
$
|
1,388
|
|
|
$
|
1,123
|
|
|
Merchandise margin
|
|
452
|
|
|
471
|
|
|
866
|
|
|
878
|
|
|||||
Other margin
|
|
23
|
|
|
30
|
|
|
48
|
|
|
52
|
|
|||||
Retail margin
|
|
$
|
1,132
|
|
|
$
|
1,195
|
|
|
$
|
2,302
|
|
|
$
|
2,053
|
|
(a)
|
LCM inventory valuation adjustments are excluded from Retail income from operations and Retail margin.
|
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
|
2020
|
|
2019
|
||||
Net cash provided by (used in):
|
|
|
|
|||||
Operating activities
|
$
|
(230
|
)
|
|
$
|
4,245
|
|
|
Investing activities
|
(2,077
|
)
|
|
(2,880
|
)
|
|||
Financing activities
|
1,871
|
|
|
(1,841
|
)
|
|||
Total increase (decrease) in cash
|
$
|
(436
|
)
|
|
$
|
(476
|
)
|
•
|
a decrease in additions to property, plant and equipment of $509 million primarily due to decreased capital expenditures in the first six months of 2020 in our Midstream and Refining & Marketing segments; and
|
•
|
a decrease in net investments of $272 million largely due to investments in the first six months of 2019 in connection with the construction of the Gray Oak Pipeline, which began initial start-up in the fourth quarter of 2019.
|
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
|
2020
|
|
2019
|
||||
Additions to property, plant and equipment per the consolidated statements of cash flows
|
$
|
1,910
|
|
|
$
|
2,419
|
|
|
Decrease in capital accruals
|
(421
|
)
|
|
(281
|
)
|
|||
Total capital expenditures
|
1,489
|
|
|
2,138
|
|
|||
Investments in equity method investees (excludes acquisitions)
|
383
|
|
|
595
|
|
|||
Total capital expenditures and investments
|
$
|
1,872
|
|
|
$
|
2,733
|
|
•
|
Long-term debt borrowings and repayments were a net $3.26 billion source of cash in the first six months of 2020 compared to a net $848 million source of cash in the first six months of 2019. During the first six months of 2020, MPC issued $2.5 billion of senior notes, borrowed and repaid $3.5 billion under its revolving credit facility, borrowed and repaid $1.18 billion under its trade receivables facility and MPLX had net borrowings of $825 million under its revolving credit facility. During the first six months of 2019, MPLX had net borrowings of $615 million under its revolving credit facility and ANDX had net borrowings of $255 million under its revolving credit facilities.
|
•
|
Cash used in common stock repurchases decreased $1.39 billion in the first six months of 2020 compared to the first six months of 2019. There were no share repurchases in the first six months of 2020 compared to $1.39 billion in the first six months of 2019. See Note 8 to the unaudited consolidated financial statements for further discussion of share repurchases.
|
•
|
Cash used in dividend payments increased $49 million in the first six months of 2020 compared to the first six months of 2019, primarily due to a $0.10 per share increase in our base dividend, partially offset by a reduction of shares resulting from share repurchases in 2019. Our dividend payments were $1.16 per common share in the first six months of 2020 compared to $1.06 per common share in the first six months of 2019.
|
•
|
Contributions from noncontrolling interests decreased $95 million in the first six months of 2020 compared to the first six months of 2019 primarily due to cash received in 2019 for an increased noncontrolling interest in an MPLX subsidiary.
|
|
|
June 30, 2020
|
||||||||||
(In millions)
|
|
Total Capacity
|
|
Outstanding Borrowings
|
|
Available
Capacity
|
||||||
Bank revolving credit facility(a)(b)
|
$
|
5,000
|
|
|
$
|
1
|
|
|
$
|
4,999
|
|
|
364-day bank revolving credit facility
|
1,000
|
|
|
—
|
|
|
1,000
|
|
||||
364-day bank revolving credit facility
|
1,000
|
|
|
—
|
|
|
1,000
|
|
||||
Trade receivables facility(c)
|
705
|
|
|
—
|
|
|
705
|
|
||||
Total
|
$
|
7,705
|
|
|
$
|
1
|
|
|
$
|
7,704
|
|
|
Cash and cash equivalents(d)
|
|
|
|
|
1,024
|
|
||||||
Total liquidity
|
|
|
|
|
$
|
8,728
|
|
(a)
|
Excludes MPLX’s $3.50 billion bank revolving credit facility, which had approximately $2.68 billion available as of June 30, 2020.
|
(b)
|
Outstanding borrowings include $1 million in letters of credit outstanding under this facility.
|
(c)
|
Availability under our $750 million trade receivables facility is a function of eligible trade receivables, which will be lower in a sustained lower price environment for refined products.
|
(d)
|
Excludes MPLX cash and cash equivalents of $67 million.
|
Company
|
Rating Agency
|
Rating
|
MPC
|
Moody’s
|
Baa2 (negative outlook)
|
|
Standard & Poor’s
|
BBB (negative outlook)
|
|
Fitch
|
BBB (negative outlook)
|
|
|
June 30, 2020
|
||||||||||
(In millions)
|
|
Total Capacity
|
|
Outstanding Borrowings
|
|
Available
Capacity
|
||||||
MPLX LP - bank revolving credit facility
|
$
|
3,500
|
|
|
$
|
825
|
|
|
$
|
2,675
|
|
|
MPC Intercompany Loan Agreement
|
1,500
|
|
|
—
|
|
|
1,500
|
|
||||
Total
|
$
|
5,000
|
|
|
$
|
825
|
|
|
$
|
4,175
|
|
|
Cash and cash equivalents
|
|
|
|
|
67
|
|
||||||
Total liquidity
|
|
|
|
|
$
|
4,242
|
|
Company
|
Rating Agency
|
Rating
|
MPLX
|
Moody’s
|
Baa2 (negative outlook)
|
|
Standard & Poor’s
|
BBB (negative outlook)
|
|
Fitch
|
BBB (negative outlook)
|
|
|
Capital Investment Plan
|
||||||||||
(In millions)
|
|
Revised 2020 Outlook
|
|
Original 2020 Guidance
|
|
Reduction
|
||||||
MPC, excluding MPLX
|
|
|
|
|
|
|
||||||
Refining & Marketing
|
|
$
|
1,300
|
|
|
$
|
1,550
|
|
|
$
|
(250
|
)
|
Retail
|
|
300
|
|
|
550
|
|
|
(250
|
)
|
|||
Midstream - Other
|
|
230
|
|
|
300
|
|
|
(70
|
)
|
|||
Corporate and Other
|
|
120
|
|
|
200
|
|
|
(80
|
)
|
|||
Total MPC, excluding MPLX
|
|
$
|
1,950
|
|
|
$
|
2,600
|
|
|
$
|
(650
|
)
|
|
|
|
|
|
|
|
||||||
Midstream - MPLX
|
|
$
|
1,050
|
|
|
$
|
1,750
|
|
|
$
|
(700
|
)
|
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
|
2020
|
|
2019
|
||||
MPC, excluding MPLX
|
|
|
|
|
||||
Refining & Marketing
|
|
$
|
722
|
|
|
$
|
824
|
|
Retail
|
|
150
|
|
|
193
|
|
||
Midstream - Other
|
|
158
|
|
|
276
|
|
||
Corporate and Other(a)
|
|
101
|
|
|
79
|
|
||
Total MPC, excluding MPLX
|
|
$
|
1,131
|
|
|
$
|
1,372
|
|
|
|
|
|
|
||||
Midstream - MPLX
|
|
$
|
741
|
|
|
$
|
1,361
|
|
(a)
|
Includes capitalized interest of $56 million and $65 million for the six months ended June 30, 2020 and 2019, respectively.
|
|
Six Months Ended
June 30, |
||||||
(In millions, except per share data)
|
2020
|
|
2019
|
||||
Number of shares repurchased
|
—
|
|
|
23
|
|
||
Cash paid for shares repurchased
|
$
|
—
|
|
|
$
|
1,385
|
|
Average cost per share
|
$
|
—
|
|
|
$
|
60.75
|
|
•
|
Future operating performance. Our estimates of future operating performance are based on our analysis of various supply and demand factors, which include, among other things, industry-wide capacity, our planned utilization rate, end-user demand, capital expenditures and economic conditions. Such estimates are consistent with those used in our planning and capital investment reviews.
|
•
|
Future volumes. Our estimates of future refinery, retail, pipeline throughput and natural gas and natural gas liquid processing volumes are based on internal forecasts prepared by our Refining & Marketing, Retail and Midstream segments operations personnel. Assumptions about the effects of COVID-19 on our future volumes are inherently subjective and contingent upon the duration of the pandemic, which is difficult to forecast.
|
•
|
Discount rate commensurate with the risks involved. We apply a discount rate to our cash flows based on a variety of factors, including market and economic conditions, operational risk, regulatory risk and political risk. This discount rate is also compared to recent observable market transactions, if possible. A higher discount rate decreases the net present value of cash flows.
|
•
|
Future capital requirements. These are based on authorized spending and internal forecasts.
|
|
|
Six Months Ended
June 30, |
||||||
(In millions)
|
|
2020
|
|
2019
|
||||
Realized gain (loss) on settled derivative positions
|
$
|
147
|
|
|
$
|
(3
|
)
|
|
Unrealized loss on open net derivative positions
|
(44
|
)
|
|
(79
|
)
|
|||
Net gain (loss)
|
$
|
103
|
|
|
$
|
(82
|
)
|
|
|
Change in IFO from a
Hypothetical Price Increase of |
|
Change in IFO from a
Hypothetical Price Decrease of |
||||||||||||
(In millions)
|
|
10%
|
|
25%
|
|
10%
|
|
25%
|
||||||||
As of June 30, 2020
|
|
|
|
|
|
|
|
|||||||||
Crude
|
$
|
(2
|
)
|
|
$
|
(6
|
)
|
|
$
|
2
|
|
|
$
|
6
|
|
|
Refined products
|
26
|
|
|
64
|
|
|
(26
|
)
|
|
(64
|
)
|
|||||
Blending products
|
(5
|
)
|
|
(14
|
)
|
|
5
|
|
|
14
|
|
|||||
Embedded derivatives
|
(5
|
)
|
|
(13
|
)
|
|
5
|
|
|
13
|
|
(In millions)
|
|
Fair Value as of June 30, 2020(a)
|
|
Change in
Fair Value(b) |
|
Change in Net Income for the Six Months Ended
June 30, 2020(c)
|
|||||
Long-term debt
|
|
|
|
|
|
||||||
Fixed-rate
|
$
|
30,058
|
|
|
$
|
2,515
|
|
|
n/a
|
|
|
Variable-rate
|
3,798
|
|
|
33
|
|
|
21
|
|
(a)
|
Fair value was based on market prices, where available, or current borrowing rates for financings with similar terms and maturities.
|
(b)
|
Assumes a 100-basis-point decrease in the weighted average yield-to-maturity at June 30, 2020.
|
(c)
|
Assumes a 100-basis-point change in interest rates. The change to net income was based on the weighted average balance of debt outstanding for the six months ended June 30, 2020.
|
Period
|
|
Total Number
of Shares Purchased(a) |
|
Average
Price Paid per Share(b) |
|
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
|
Maximum Dollar
Value of Shares that May Yet Be Purchased Under the Plans or Programs(c) |
||||||
04/01/2020-04/30/2020
|
134,736
|
|
|
$
|
21.67
|
|
|
—
|
|
|
$
|
2,954,604,016
|
|
|
05/01/2020-05/31/2020
|
2,228
|
|
|
29.84
|
|
|
—
|
|
|
2,954,604,016
|
|
|||
06/01/2020-06/30/2020
|
1,035
|
|
|
35.59
|
|
|
—
|
|
|
2,954,604,016
|
|
|||
Total
|
137,999
|
|
|
21.91
|
|
|
—
|
|
|
|
(a)
|
The amounts in this column include 134,736, 2,228 and 1,035 shares of our common stock delivered by employees to MPC, upon vesting of restricted stock, to satisfy tax withholding requirements in April, May and June, respectively.
|
(b)
|
Amounts in this column reflect the weighted average price paid for shares tendered to us in satisfaction of employee tax withholding obligations upon the vesting of restricted stock granted under our stock plans.
|
(c)
|
On April 30, 2018, we announced that our board of directors had approved a $5.0 billion share repurchase authorization. This share repurchase authorization has no expiration date. The share repurchase authorization announced on April 30, 2018, together with prior authorizations, results in a total of $18.0 billion of share repurchase authorizations since January 1, 2012.
|
|
|
|
|
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
|
Furnished
Herewith
|
||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing
Date
|
|
SEC File
No.
|
|
|||
2.1*
|
|
|
8-K
|
|
2.1
|
|
4/30/2018
|
|
001-35054
|
|
|
|
|
|
2.2
|
|
|
S-4/A
|
|
2.2
|
|
7/5/2018
|
|
333-225244
|
|
|
|
|
|
2.3
|
|
|
8-K
|
|
2.1
|
|
9/18/2018
|
|
001-35054
|
|
|
|
|
|
2.4 *
|
|
|
8-K
|
|
2.1
|
|
5/8/2019
|
|
001-35054
|
|
|
|
|
|
3.1
|
|
|
8-K
|
|
3.2
|
|
10/1/2018
|
|
001-35054
|
|
|
|
|
|
3.2
|
|
|
10-K
|
|
3.2
|
|
2/28/2019
|
|
001-35054
|
|
|
|
|
|
4.1
|
|
|
8-K
|
|
4.1
|
|
4/27/2020
|
|
001-35054
|
|
|
|
|
|
10.1
|
|
|
8-K
|
|
10.1
|
|
4/27/2020
|
|
001-35054
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
99.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded with the Inline XBRL document.
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Marathon Petroleum Corporation hereby undertakes to furnish supplementally a copy of any omitted schedule upon request by the SEC.
|
August 3, 2020
|
MARATHON PETROLEUM CORPORATION
|
|
|
|
|
|
By:
|
/s/ John J. Quaid
|
|
|
John J. Quaid
Senior Vice President and Controller
|
1 Year Marathon Petroleum Chart |
1 Month Marathon Petroleum Chart |
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