Marathon Petroleum Corporation (MPC) reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net income attributable to the company falling to $3.4 billion, or $10.08 per diluted share, compared to $9.7 billion, or $23.63 per diluted share, in 2023. This decrease of $6.2 billion was primarily driven by lower refining and marketing margins, which were impacted by decreased average refined product sales prices and increased operational costs. Total revenues and other income also decreased by $9.9 billion to $140.4 billion, reflecting a drop in sales and operating revenues, which fell to $138.9 billion from $148.4 billion in the previous year.
In terms of operational metrics, MPC's refining capacity utilization remained steady at 92%, with net refinery throughput increasing slightly to 2.92 million barrels per day (mbpd) from 2.90 mbpd in 2023. The company processed 2.71 mbpd of crude oil, a slight increase from 2.68 mbpd in 2023. However, the refining and marketing segment's adjusted EBITDA dropped to $5.7 billion from $13.7 billion, indicating a challenging environment for the company amid fluctuating market conditions. The Renewable Diesel segment, which was established as a separate reporting segment in the fourth quarter of 2024, reported an adjusted EBITDA loss of $150 million, reflecting lower production capacity and increased costs.
Strategically, MPC has made several significant moves, including the establishment of a Renewable Diesel segment and various acquisitions to enhance its midstream operations. Notably, MPLX, the company's midstream subsidiary, acquired an additional 20% interest in the BANGL, LLC joint venture for $210 million, increasing its 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. The company also announced a $5 billion share repurchase authorization, reflecting its commitment to returning capital to shareholders.
Looking ahead, MPC anticipates continued demand growth for refined products, particularly gasoline and diesel, despite the challenges posed by regulatory changes in California, including the establishment of a maximum gross gasoline refining margin. The company plans to invest approximately $1.25 billion in capital projects for 2025, focusing on enhancing operational efficiency and sustainability initiatives. MPC's management remains committed to improving its cost competitiveness and operational reliability while navigating the evolving energy landscape.
About Marathon Petroleum Corp
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