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Dec 31, 2021
Marathon Petroleum Q4 2021 Earnings Report
Reported net income for the fourth quarter of 2021, driven by strategic initiatives and capital returns.
Key Takeaways
Marathon Petroleum Corp. reported a net income of $774 million for Q4 2021, a significant increase compared to $285 million in Q4 2020. Adjusted net income was $794 million, compared to an adjusted net loss of $608 million in the same period last year. The company has been actively returning capital to shareholders, completing 55% of its $10 billion capital return program and announcing an additional $5 billion share repurchase authorization.
Reported fourth-quarter net income of $774 million, or $1.27 per diluted share; adjusted net income of $794 million, or $1.30 per diluted share.
Returned approximately $3 billion of capital through share repurchases since Oct 31; completed approximately 55% of $10 billion repurchase program through Jan 31; announced an incremental $5 billion repurchase authorization.
Announced 2022 MPC standalone capital spending outlook of $1.7 billion; approximately 50% of growth capital for Martinez refinery conversion.
Martinez renewable fuels project total cost of $1.2 billion; approximately $300 million spent to date, $700 million for 2022, and $200 million for 2023.
Revenue by Segment
Forward Guidance
Marathon Petroleum provided its first quarter 2022 outlook, including refining operating costs per barrel, distribution costs, refining planned turnaround costs, depreciation and amortization, refinery throughputs, and corporate expenses.
Positive Outlook
- MPC’s capital spending outlook for 2022 is $1.7 billion.
- Approximately 80% of overall spending is focused on growth capital and 20% on sustaining capital.
- Of the $1.3 billion of growth capital, approximately 50% is currently allocated to completing the Martinez refinery conversion.
- Total project cost for Martinez is expected to be $1.2 billion with approximately $200 million remaining in 2023.
- The Martinez facility is expected to produce 260 million gallons per year of renewable diesel by the second half of 2022, with pretreatment capabilities coming online in 2023.
Challenges Ahead
- Refining operating costs per barrel: $5.10
- Distribution costs (in millions): $1,300
- Refining planned turnaround costs (in millions): $155
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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