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Jun 30, 2020

Marathon Petroleum Q2 2020 Earnings Report

Reported a slight profit amidst challenges from COVID-19 and announced the sale of Speedway.

Key Takeaways

Marathon Petroleum Corp. reported a net income of $9 million for Q2 2020, which was significantly impacted by the COVID-19 pandemic. The company announced an agreement to sell Speedway for $21 billion and is taking steps to reduce capital spending and operating expenses.

Reported second-quarter income of $9 million, or $0.01 per diluted share, including net pre-tax benefit of $1.4 billion.

Adjusted loss of $868 million, or $(1.33) per diluted share.

Announced agreement to sell Speedway in $21 billion all-cash transaction.

Indefinitely idling Gallup and Martinez refineries and evaluating strategic repositioning of Martinez to renewable diesel facility.

Total Revenue
$15.2B
Previous year: $33.7B
-54.9%
EPS
-$1.33
Previous year: $1.73
-176.9%
Refined Product Sales Volume
2.3M
Gross Profit
$2.19B
Previous year: $3.04B
-28.1%
Cash and Equivalents
$1B
Previous year: $1.25B
-19.8%
Free Cash Flow
-$421M
Previous year: $1.44B
-129.2%
Total Assets
$84.6B
Previous year: $96.9B
-12.7%

Marathon Petroleum

Marathon Petroleum

Marathon Petroleum Revenue by Segment

Forward Guidance

Marathon Petroleum provided the following outlook for the third quarter of 2020.

Positive Outlook

  • Refining operating costs per barrel: $6.50
  • Distribution costs (in millions): $1,285
  • Refining planned turnaround costs (in millions): $270
  • Depreciation and amortization (in millions): $440
  • Refinery throughputs (mbpd): Crude oil refined 2,215

Challenges Ahead

  • Other charge and blendstocks 130
  • Total 2,345
  • Fuel sales (millions of gallons) 2,000
  • Fuel sales (millions of gallons) 2,200
  • Corporate and unallocated items (in millions)$195

Revenue & Expenses

Visualization of income flow from segment revenue to net income