WS News
06 May 2025, 16:49
Marathon Petroleum Reports Q1 2025 Loss Amid Major Maintenance and Refining Margin Decline
Marathon Petroleum Corporation (MPC) reported a Q1 2025 net loss of $74 million, or $(0.24) per diluted share, compared to net income of $937 million, or $2.58 per diluted share, in Q1 2024. The loss was largely attributed to heavy planned refinery maintenance activity, the second largest in company history.
Key Financials and Segment Results:
• Adjusted EBITDA totaled $2.0 billion, down from $3.3 billion a year earlier.
• Midstream segment EBITDA rose to $1.72 billion, up 8% year-over-year.
• Refining & Marketing segment EBITDA dropped to $489 million from $1.99 billion, driven by narrower crack spreads.
• Renewable Diesel losses narrowed, with EBITDA at $(42) million vs. $(90) million in Q1 2024.
• Total capital returned to shareholders reached $1.3 billion, including $1.1 billion in share repurchases.
Strategic and Operational Developments:
• MPLX, the midstream subsidiary, will acquire full ownership of the BANGL pipeline for $715 million and has taken FID on the 1.75 bcf/d Traverse Pipeline.
• Additional investments include expanding its stake in the Matterhorn Express Pipeline and acquiring Whiptail Midstream’s crude gathering business.
• Ongoing projects include Gulf Coast fractionators, LPG export terminal, and major investments at Los Angeles, Galveston Bay, and Robinson refineries targeting emissions compliance, distillate upgrading, and jet fuel flexibility.
Refining & Throughput Data:
• Crude throughput was 2.8 million bpd with 89% utilization.
• R&M margin declined to $13.38 per barrel from $19.35.
• West Coast refining remained strongest by margin at $17.94/bbl, while the Gulf Coast fell to $11.75/bbl.
Outlook for Q2 2025:
• Planned turnaround costs expected to decline to $265 million.
• Refining throughput estimated at 2.945 million bpd.
• Corporate expenses projected at $220 million, including $20 million of D&A.
Despite the quarterly loss, MPC emphasized long-term growth through targeted infrastructure investments and remained optimistic about refining margin recovery into summer.
Marathon Petroleum Corporation (MPC) reported a Q1 2025 net loss of $74 million, or $(0.24) per diluted share, compared to net income of $937 million, or $2.58 per diluted share, in Q1 2024. The loss was largely attributed to heavy planned refinery maintenance activity, the second largest in company history.
Key Financials and Segment Results:
• Adjusted EBITDA totaled $2.0 billion, down from $3.3 billion a year earlier.
• Midstream segment EBITDA rose to $1.72 billion, up 8% year-over-year.
• Refining & Marketing segment EBITDA dropped to $489 million from $1.99 billion, driven by narrower crack spreads.
• Renewable Diesel losses narrowed, with EBITDA at $(42) million vs. $(90) million in Q1 2024.
• Total capital returned to shareholders reached $1.3 billion, including $1.1 billion in share repurchases.
Strategic and Operational Developments:
• MPLX, the midstream subsidiary, will acquire full ownership of the BANGL pipeline for $715 million and has taken FID on the 1.75 bcf/d Traverse Pipeline.
• Additional investments include expanding its stake in the Matterhorn Express Pipeline and acquiring Whiptail Midstream’s crude gathering business.
• Ongoing projects include Gulf Coast fractionators, LPG export terminal, and major investments at Los Angeles, Galveston Bay, and Robinson refineries targeting emissions compliance, distillate upgrading, and jet fuel flexibility.
Refining & Throughput Data:
• Crude throughput was 2.8 million bpd with 89% utilization.
• R&M margin declined to $13.38 per barrel from $19.35.
• West Coast refining remained strongest by margin at $17.94/bbl, while the Gulf Coast fell to $11.75/bbl.
Outlook for Q2 2025:
• Planned turnaround costs expected to decline to $265 million.
• Refining throughput estimated at 2.945 million bpd.
• Corporate expenses projected at $220 million, including $20 million of D&A.
Despite the quarterly loss, MPC emphasized long-term growth through targeted infrastructure investments and remained optimistic about refining margin recovery into summer.