Profitability analysis
Marathon Petroleum’s total revenues and other income were $150.3 billion, $180 billion and $121 billion in 2023, 2022 and 2021, respectively.
Total revenues and other income in 2023 were down 16.5% year-on-year.
Total revenues and other income in 2022 were up 48.8% year-on-year.
Gross margin was 14.4%, 15.9% and 9% in 2023, 2022 and 2021, respectively.
Net income attributable to Marathon Petroleum was $9.7 billion, $14.5 billion and $9.7 billion in 2023, 2022 and 2021, respectively.
Net income was $11.2 billion, $16 billion and $11 billion in 2023, 2022 and 2021, respectively.
You need to notice that income of discontinued operations was $8.45 billion for 2021; that is to say, net income of operations was about $2.55 billion for 2021.
The net profit margin was 7.5%, 8.9% and 9.1% for 2023, 2022 and 2021, respectively.
Total equity was $30.5 billion as of December 31, 2023.
The return on total equity was 36.7% for 2023.
Total Marathon Petroleum shareholders ‘s equity was $24.4 billion as of December 31, 2023.
Return on total Marathon Petroleum shareholders’ equity was 39.8% for 2023.
Cash flow analysis
Net cash provided by operating activities was $14.1 billion, $16.4 billion and $4.4 billion in 2023, 2022 and 2021, respectively.
The amount of net cash from operations in 2021 was the most low in the past three years, because income of discontinued operations was $8.45 billion in 2021, which is not income from continued operations.
Additions to property, plant and equipment were $1.9 billion, $2.4 billion and $1.5 billion in 2023, 2022 and 2021, respectively.
Marathon Petroleum’s free cash flow was $12.2 billion, $14 billion and $2.9 billion in 2023, 2022 and 2021, respectively.
Common stock repurchased was $11.6 billion, $12 billion and $4.7 billion in 2023, 2022 and 2021, respectively.
Dividends paid were $1.26 billion, $1.28 billion and $1.48 billion in 2023, 2022 and 2021, respectively.
Conclusion
Marathon Petroleum had two reportable segments: Refining & Marketing and Midstream.
Refining & marketing is main business.
We feel that the company’s business is relatively single and fluctuates greatly.
Marathon Petroleum stock price is $196.42 per share , which is equivalent to $70.78 billion in market capitalization.
We are difficult to evaluate the stock price, and don’t like Marathon Petroleum’s stock.
Disclaimer: The content is for reference only and does not constitute investment advice
Introduction
MPC has more than 135 years of history in the energy business, and is a leading, integrated, downstream energy company. We operate one of the nation’s largest refining systems with approximately 3.0 million barrels per day of crude oil refining capacity and believe we are one of the largest wholesale suppliers of gasoline and distillates to resellers in the United States. We distribute our refined products through one of the largest terminal operations in the United States and one of the largest private domestic fleets of inland petroleum product barges. In addition, our integrated midstream energy asset network links producers of natural gas and NGLs from some of the largest supply basins in the United States to domestic and international markets.
Our operations consist of two reportable operating segments: Refining & Marketing and Midstream. Each of these segments is organized and managed based upon the nature of the products and services it offers.
Refining & Marketing – refines crude oil and other feedstocks, including renewable 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, including renewable diesel, 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 independent entrepreneurs who operate primarily Marathon® branded outlets and through long-term supply contracts with direct dealers who operate locations mainly under the ARCO® brand.
Midstream – gathers, transports, stores and distributes crude oil, refined products, including renewable diesel, and other hydrocarbon-based products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges; gathers, processes and transports natural gas; and transports, fractionates, stores and markets NGLs. The Midstream segment primarily reflects the results of MPLX. MPLX is a diversified, large-cap master limited partnership (“MLP”) formed in 2012 that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. As of December 31, 2023, we owned the general partner of MPLX and approximately 65 percent of the outstanding MPLX common units.
