EX-99.1 2 mpcq32022earningsrelease.htm EX-99.1 Document
Exhibit 99.1
mpcnewsreleaseletterheada05.jpg
Marathon Petroleum Corp. Reports Third-Quarter 2022 Results
•Net income attributable to MPC of $4.5 billion, or $9.06 per diluted share; reported adjusted net income of $3.9 billion, or $7.81 per diluted share
•Adjusted EBITDA of $6.8 billion; improving operational and commercial execution as the refining system ran at near full utilization to meet demand
•MPLX increases distribution 10%; MPC expects to receive a total of $2 billion on an annual basis
•Completed $15 billion return of capital commitment utilizing the proceeds from the Speedway divestiture; repurchased approximately 30% of outstanding shares
•Announced dividend increase of approximately 30% to $0.75 per share

FINDLAY, Ohio, Nov. 1, 2022 – Marathon Petroleum Corp. (NYSE: MPC) today reported net income attributable to MPC of $4.5 billion, or $9.06 per diluted share, for the third quarter of 2022, compared with net income attributable to MPC of $694 million, or $1.09 per diluted share, for the third quarter of 2021.
Adjusted net income was $3.9 billion, or $7.81 per diluted share, for the third quarter of 2022. This compares to adjusted net income of $464 million, or $0.73 per diluted share, for the third quarter of 2021. Adjusted results for third-quarter 2022 exclude net pre-tax benefits of approximately $1 billion and for third-quarter 2021 exclude pre-tax charges of $48 million. Adjustments are shown in the accompanying release tables.
Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $6.8 billion for the third quarter of 2022, compared with $2.4 billion for the third quarter of 2021.
“Market demand for our products remains strong, and our third-quarter results reflect our improving operational and commercial execution,” said President and Chief Executive Officer Michael J. Hennigan. “We completed our $15 billion share repurchase commitment and announced an increase to our quarterly dividend of approximately 30%.”


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Results from Operations
Adjusted EBITDA from Continuing and Discontinued Operations (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)
2022202120222021
Refining & Marketing Segment
Segment income from operations$4,625 $509 $12,527 $135 
Add: Depreciation and amortization
459 462 1,395 1,406 
Refining planned turnaround costs
384 205 680 378 
Storm impacts— 19 — 50 
LIFO inventory charge
28 — 28 — 
Refining & Marketing segment adjusted EBITDA
5,496 1,195 14,630 1,969 
Midstream Segment
Segment income from operations1,176 1,042 3,374 2,991 
Add: Depreciation and amortization
322 329 983 994 
Storm impacts— 4 — 20 
Midstream segment adjusted EBITDA
1,498 1,375 4,357 4,005 
Subtotal
6,994 2,570 18,987 5,974 
Corporate
(173)(186)(494)(523)
Add: Depreciation and amortization
13 32 40 95 
Adjusted EBITDA from continuing operations
$6,834 $2,416 $18,533 $5,546 
Speedway
Speedway
$— $— $— $613 
Add: Depreciation and amortization
— — — 3 
Adjusted EBITDA from discontinued operations
$— $— $— $616 
Adjusted EBITDA from continuing and discontinued operations
$6,834 $2,416 $18,533 $6,162 

Refining & Marketing (R&M)
Segment adjusted EBITDA was $5.5 billion in the third quarter of 2022, versus $1.2 billion for the third quarter of 2021. Segment adjusted EBITDA excludes refining planned turnaround costs, which totaled $384 million in the third quarter of 2022 and $205 million in the third quarter of 2021. The increase in segment adjusted EBITDA was driven by higher margins and volumes.
R&M margin was $30.21 per barrel for the third quarter of 2022, versus $14.51 per barrel for the third quarter of 2021. Crude capacity utilization was approximately 98%, resulting in total throughput of 3.0 million barrels per day for the third quarter of 2022. This compares to crude capacity utilization of approximately 93% for the third quarter of 2021, which resulted in total throughput of 2.8 million barrels per day.
Refining operating costs per barrel were $5.63 for the third quarter of 2022, versus $4.97 for the third quarter of 2021. The majority of this increase was driven by higher energy costs, as well as $0.13 per

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barrel of non-recurring costs recorded in the quarter associated with a multi-year property tax assessment.
Midstream
Segment adjusted EBITDA was $1.5 billion in the third quarter of 2022, versus $1.4 billion for the third quarter of 2021, up roughly 9% year over year.
Corporate and Items Not Allocated
Corporate expenses totaled $173 million in the third quarter of 2022, compared with $186 million in the third quarter of 2021.
In the third quarter of 2022, items not allocated to segments include a $549 million non-cash gain for the contribution of the Martinez assets to the Martinez Renewables joint venture and a $509 million non-cash gain related to an MPLX LP (NYSE:MPLX) third-party contract reclassification(a). These have been excluded from the company’s adjusted results.
Speedway
This business was sold on May 14, 2021. Historic results are reported as discontinued operations.
Financial Position, Liquidity, and Return of Capital
As of September 30, 2022, MPC had $11.1 billion of cash, cash equivalents, and short-term investments and $5 billion available on its bank revolving credit facility. MPC debt at the end of the third quarter of 2022 totaled $6.9 billion, excluding MPLX debt. MPC’s gross debt-to-capital ratio, excluding MPLX debt, was 21% at the end of the third quarter of 2022.
In October, MPC completed its $15 billion return of capital commitment, having repurchased approximately 30% of outstanding shares as of the program commencement. The company has approximately $5 billion remaining available under its current share repurchase authorizations.
Today, MPC announced that the Board of Directors approved an increase to the quarterly dividend to $0.75 per share. The dividend is payable December 12, 2022 to shareholders of record on November 16, 2022.
Strategic and Operations Update
The Martinez Renewables joint venture with Neste closed on September 21, 2022. All required closing conditions were met, including the receipt of the necessary permits and regulatory approvals. The first phase of the Martinez renewables project facility is expected to be mechanically complete by year-end 2022. Initial production capacity is expected to be 260 million gallons per year of renewable fuels. Pretreatment capabilities are expected to come online in the second half of 2023 and the facility is expected to be capable of producing 730 million gallons per year by the end of 2023.
The Midstream segment remains focused on executing the strategic priorities of strict capital discipline, embedding a low-cost culture, and optimizing the portfolio. MPLX continues to evaluate opportunities to meet the needs of today and participate in an energy-diverse future.
(a) Gain triggered from the accounting for the reclassification from an operating to a sales-type lease.     
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Fourth Quarter 2022 Outlook
Refining & Marketing Segment:
Refining operating costs per barrel(a)
$5.30 
Distribution costs (in millions)$1,350 
Refining planned turnaround costs (in millions)$430 
Depreciation and amortization (in millions)$460 
Refinery throughputs (mbpd):
    Crude oil refined2,690 
    Other charge and blendstocks215 
        Total2,905 
Corporate (in millions)$170 
(a)Excludes refining planned turnaround and depreciation and amortization expense

Conference Call
At 11:00 a.m. ET today, MPC will hold a conference call and webcast to discuss the reported results and provide an update on company operations. Interested parties may listen by visiting MPC’s website at www.marathonpetroleum.com. A replay of the webcast will be available on the company’s website for two weeks. Financial information, including the earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at www.marathonpetroleum.com.

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About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system. MPC’s marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
Investor Relations Contacts: (419) 421-2071
Kristina Kazarian, Vice President
Brian Worthington, Manager
Kenan Kinsey, Analyst

Media Contact: (419) 421-3312
Jamal Kheiry, Communications Manager







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References to Earnings and Defined Terms
References to earnings mean net income attributable to MPC from the statements of income. Unless otherwise indicated, references to earnings and earnings per share are MPC’s share after excluding amounts attributable to noncontrolling interests.
Forward-Looking Statements
This press release contains forward-looking statements regarding MPC. These forward-looking statements may relate to, among other things, MPC’s expectations, estimates and projections concerning its business and operations, financial priorities, strategic plans and initiatives, capital return plans, operating cost reduction objectives, and environmental, social and governance (“ESG”) plans and goals, including those related to greenhouse gas emissions, diversity and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors. In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as “anticipate,” “believe,” “commitment,” “could,” “design,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “opportunity,” “outlook,” “plan,“ “policy,” “position,” “potential,” “predict,” “priority,” “project,” “prospective,” “pursue,” “seek,” “should,” “strategy,” “target,” “will,” “would” or other similar expressions that convey the uncertainty of future events or outcomes. MPC cautions that these statements are based on management’s current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPC, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPC’s actual results to differ materially from those implied in the forward-looking statements include but are not limited to: the continuance or escalation of the military conflict between Russia and Ukraine and related sanctions and market disruptions; general economic, political or regulatory developments, including inflation, rising interest rates and changes in governmental policies relating to refined petroleum products, crude oil, natural gas or NGLs, or taxation; continued or further volatility in and degradation of general economic, market, industry or business conditions; the magnitude, duration and extent of future resurgences of the COVID-19 pandemic and its effects; the regional, national and worldwide demand for refined products and related margins; the regional, national or worldwide availability and pricing of crude oil, natural gas, NGLs and other feedstocks and related pricing differentials; the success or timing of completion of ongoing or anticipated projects or transactions, including the conversion of the Martinez Refinery to a renewable fuels facility, and the timing and ability to obtain necessary regulatory approvals and permits and to satisfy other conditions necessary to complete such projects or consummate such transactions within the expected timeframe if at all; the availability of desirable strategic alternatives to optimize portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; our ability to successfully implement our sustainable energy strategy and principles, achieve our ESG plans and goals and realize the expected benefits thereof; accidents or other unscheduled shutdowns affecting our refineries, machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the impact of adverse market conditions or other similar risks to those identified herein affecting MPLX; and the factors set forth under the heading “Risk Factors” in MPC’s and MPLX’s Annual Reports on Form 10-K for the year ended Dec. 31, 2021, and in other filings with the SEC. Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.
Copies of MPC's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC’s website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office. Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC’s website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.




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Consolidated Statements of Income (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions, except per-share data)
2022202120222021
Revenues and other income:
   Sales and other operating revenues$45,787 $32,321 $137,640 $84,647 
 Income from equity method investments180 122 469 306 
 Net gain on disposal of assets1,051 — 1,072 3 
   Other income219 170 678 366 
       Total revenues and other income47,237 32,613 139,859 85,322 
Costs and expenses:
   Cost of revenues (excludes items below)38,821 29,563 118,096 77,824 
   Depreciation and amortization794 836 2,418 2,551 
   Selling, general and administrative expenses712 681 2,009 1,881 
   Other taxes224 193 606 544 
       Total costs and expenses40,551 31,273 123,129 82,800 
Income from continuing operations6,686 1,340 16,730 2,522 
Net interest and other financial costs240 328 814 1,053 
Income from continuing operations before income taxes6,446 1,012 15,916 1,469 
Provision (benefit) for income taxes on continuing operations1,426 (18)3,507 21 
Income from continuing operations, net of tax5,020 1,030 12,409 1,448 
Income from discontinued operations, net of tax— — — 8,448 
Net income5,020 1,030 12,409 9,896 
Less net income attributable to:
Redeemable noncontrolling interest23 38 65 79 
Noncontrolling interests520 298 1,149 853 
Net income attributable to MPC$4,477 $694 $11,195 $8,964 
Per share data
Basic:
Continuing operations$9.12 $1.10 $21.18 $0.80 
Discontinued operations— — — 13.10 
Net income per share$9.12 $1.10 $21.18 $13.90 
  Weighted average shares outstanding (in millions)491 633 528 645 
Diluted:
Continuing operations$9.06 $1.09 $21.04 $0.79 
Discontinued operations— — — 13.02 
Net income per share$9.06 $1.09 $21.04 $13.81 
Weighted average shares outstanding (in millions)494 637 532 649 






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Income Summary for Continuing Operations (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)2022202120222021
Refining & Marketing$4,625 $509 $12,527 $135 
Midstream1,176 1,042 3,374 2,991 
Corporate(173)(186)(494)(523)
Income from continuing operations before items not allocated to segments5,628 1,365 15,407 2,603 
Items not allocated to segments:
      Gain on sale of assets1,058 — 1,058 — 
      Renewable volume obligation requirements— — 238 — 
      Litigation— — 27 — 
      Impairment and idling expenses— (25)— (81)
Income from continuing operations$6,686 $1,340 $16,730 $2,522 

Income Summary for Discontinued Operations (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)2022202120222021
Speedway$— $— $— $613 
Gain on sale of assets— — — 11,682 
Transaction-related costs— — — (46)
Income from discontinued operations$— $— $— $12,249 

Capital Expenditures and Investments (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)2022202120222021
Refining & Marketing$445 $228 $1,004 $538 
Midstream267 190 772 506 
Corporate(a)
77 46 163 120 
Speedway— — — 177 
Total$789 $464 $1,939 $1,341 
(a)Includes capitalized interest of $28 million, $18 million, $76 million and $48 million for the third quarter 2022, the third quarter 2021, the first nine months of 2022 and the first nine months of 2021, respectively.





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Refining & Marketing Operating Statistics (unaudited)

Dollar per Barrel of Net Refinery ThroughputThree Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Refining & Marketing margin, excluding LIFO inventory charge(a)
$30.31 $14.51 $28.08 $12.46 
LIFO inventory charge(0.10)— (0.03)— 
Refining & Marketing margin(a)
30.21 14.51 28.05 12.46 
Less:
Refining operating costs, excluding storm impacts(b)
5.63 4.97 5.35 4.89 
Distribution costs(c)
4.90 5.02 4.82 5.08 
Other income(d)
(0.09)(0.05)(0.13)(0.13)
LIFO inventory charge(0.10)— (0.03)— 
Refining & Marketing adjusted EBITDA19.87 4.57 18.04 2.62 
Less:
Storm impacts on refining operating cost(e)
— 0.07 — 0.07 
Refining planned turnaround costs1.39 0.78 0.84 0.50 
Depreciation and amortization1.66 1.77 1.72 1.87 
LIFO inventory charge0.10 — 0.03 — 
Refining & Marketing income from operations$16.72 $1.95 $15.45 $0.18 
Fees paid to MPLX included in distribution costs above$3.34 $3.23 $3.36 $3.40 
(a)Sales revenue less cost of refinery inputs and purchased products, divided by net refinery throughput.
(b)Excludes refining planned turnaround and depreciation and amortization expense.
(c)Excludes depreciation and amortization expense.
(d)Includes income (loss) from equity method investments, net gain (loss) on disposal of assets and other income.
(e)Storms in the first and third quarters of 2021 resulted in higher costs, including maintenance and repairs.





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Refining & Marketing - Supplemental Operating DataThree Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Refining & Marketing refined product sales volume (mbpd)(a)
3,587 3,539 3,500 3,366 
Crude oil refining capacity (mbpcd)(b)
2,887 2,874 2,887 2,874 
Crude oil capacity utilization (percent)(b)
98 93 96 90 
Refinery throughputs (mbpd):
    Crude oil refined2,823 2,684 2,781 2,594 
    Other charge and blendstocks184 152 189 159 
Net refinery throughput3,007 2,836 2,970 2,753 
Sour crude oil throughput (percent)48 45 48 47 
Sweet crude oil throughput (percent)52 55 52 53 
Refined product yields (mbpd):
    Gasoline1,501 1,451 1,507 1,404 
    Distillates1,134 968 1,079 944 
    Propane73 53 72 51 
    NGLs and petrochemicals199 272 194 265 
    Heavy fuel oil43 32 61 32 
    Asphalt91 93 90 94 
        Total3,041 2,869 3,003 2,790 
Inter-region refinery transfers excluded from throughput and yields above (mbpd) 97 61 77 55 
(a)Includes intersegment sales.
(b)Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. Excludes idled Martinez and Gallup facilities and our Dickinson plant in renewable diesel service.

Refining & Marketing - Supplemental Operating Data by Region (unaudited)
The per barrel for Refining & Marketing margin is calculated based on net refinery throughput (excludes inter-refinery transfer volumes). The per barrel for the refining operating costs, refining planned turnaround costs and refining depreciation and amortization for the regions, as shown in the tables below, is calculated based on the gross refinery throughput (includes inter-refinery transfer volumes).
Refining operating costs exclude refining planned turnaround costs, refining depreciation and amortization expense and the estimated 2021 storm impacts.

Gulf Coast RegionThree Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Dollar per barrel of refinery throughput:
Refining & Marketing margin$27.39 $13.03 $26.89 $10.65 
Refining operating costs4.14 4.06 4.17 3.97 
Refining planned turnaround costs1.31 0.13 0.91 0.47 
Refining depreciation and amortization1.16 1.42 1.28 1.47 




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Gulf Coast RegionThree Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Refinery throughputs (mbpd):
    Crude oil refined1,190 1,034 1,139 1,011 
    Other charge and blendstocks171 110 156 108 
Gross refinery throughput1,361 1,144 1,295 1,119 
Sour crude oil throughput (percent)59 58 58 60 
Sweet crude oil throughput (percent)41 42 42 40 
Refined product yields (mbpd):
    Gasoline655 544 635 520 
    Distillates508 380 463 376 
    Propane43 27 41 25 
    NGLs and petrochemicals116 195 115 201 
    Heavy fuel oil44 7 45 6 
    Asphalt21 16 20 19 
        Total1,387 1,169 1,319 1,147 
Inter-region refinery transfers included in throughput and yields above (mbpd)66 26 47 26 

Mid-Continent RegionThree Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Dollar per barrel of refinery throughput:
Refining & Marketing margin$31.04 $15.44 $27.14 $13.46 
Refining operating costs5.36 4.27 4.99 4.30 
Refining planned turnaround costs1.47 1.66 0.74 0.69 
Refining depreciation and amortization1.53 1.50 1.54 1.59 
Refinery throughputs (mbpd):
    Crude oil refined1,122 1,146 1,130 1,103 
    Other charge and blendstocks66 61 65 55 
Gross refinery throughput1,188 1,207 1,195 1,158 
Sour crude oil throughput (percent)26 26 26 26 
Sweet crude oil throughput (percent)74 74 74 74 
Refined product yields (mbpd):
    Gasoline601 613 615 602 
    Distillates439 412 428 395 
    Propane19 19 21 19 
    NGLs and petrochemicals55 77 52 62 
    Heavy fuel oil8 12 14 12 
    Asphalt69 76 69 74 
        Total1,191 1,209 1,199 1,164 
Inter-region refinery transfers included in throughput and yields above (mbpd)7 13 7 9 




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West Coast RegionThree Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Dollar per barrel of refinery throughput:
Refining & Marketing margin$35.83 $15.56 $32.97 $14.08 
Refining operating costs8.88 7.87 8.11 7.63 
Refining planned turnaround costs1.17 0.12 0.78 0.12 
Refining depreciation and amortization1.30 1.36 1.35 1.50 
Refinery throughputs (mbpd):
    Crude oil refined511 504 512 480 
    Other charge and blendstocks44 42 45 51 
Gross refinery throughput555 546 557 531 
Sour crude oil throughput (percent)72 63 71 67 
Sweet crude oil throughput (percent)28 37 29 33 
Refined product yields (mbpd):
    Gasoline280 294 287 282 
    Distillates198 176 195 173 
    Propane11 7 10 7 
    NGLs and petrochemicals34 48 34 46 
    Heavy fuel oil36 26 35 25 
    Asphalt1 1 1 1 
        Total560 552 562 534 
Inter-region refinery transfers included in throughput and yields above (mbpd)24 22 23 20 

Midstream Operating Statistics (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
2022202120222021
Pipeline throughputs (mbpd)(a)
5,845 5,600 5,761 5,499 
Terminal throughput (mbpd)3,026 3,046 3,023 2,884 
Gathering system throughput (million cubic feet per day)(b)
6,083 5,419 5,664 5,195 
Natural gas processed (million cubic feet per day)(b)
8,516 8,383 8,401 8,375 
C2 (ethane) + NGLs fractionated (mbpd)(b)
562 553 541 552 
(a)Includes common-carrier pipelines and private pipelines contributed to MPLX. Excludes equity method affiliate pipeline volumes.
(b)Includes amounts related to unconsolidated equity method investments on a 100% basis.





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Select Financial Data (unaudited)
September 30, 
2022		June 30, 
2022
(In millions)
Cash and cash equivalents
$
7,376 
$
9,078 
Short-term investments3,759 4,241 
MPC debt
6,923 6,999 
MPLX debt
19,779 19,775 
Total consolidated debt(a)
26,702 26,774 
Redeemable noncontrolling interest
967 965 
Equity
32,808 32,704 
Shares outstanding
469 513 
(a)    Net of unamortized debt issuance costs and unamortized premium/discount, net.

Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our operating performance that are calculated and presented on the basis of methodologies other than in accordance with GAAP. We believe these non-GAAP financial measures are useful to investors and analysts to assess our ongoing financial performance because, when reconciled to their most comparable GAAP financial measures, they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. The non-GAAP financial measures we use are as follows:
Adjusted Net Income Attributable to MPC
Adjusted net income attributable to MPC is defined as net income attributable to MPC excluding the items in the table below, along with their related income tax effect. We have excluded these items because we believe that they are not indicative of our core operating performance and that their exclusion results in an important measure of our ongoing financial performance to better assess our underlying business results and trends.
Adjusted Diluted Earnings Per Share
Adjusted diluted earnings per share is defined as adjusted net income attributable to MPC divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.




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Reconciliation of Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)
2022202120222021
Net income attributable to MPC$4,477 $694 $11,195 $8,964 
Pre-tax adjustments:
Gain on Speedway sale— — — (11,682)
Gain on sale of assets(1,058)— (1,058)— 
LIFO inventory charge28 — 28 — 
Renewable volume obligation requirements— — (238)— 
Litigation— — — — 
Impairments— 25 — 81 
Storm impacts— 23 — 70 
Pension settlement— — — 49 
Transaction-related costs— — — 46 
Tax impact of adjustments(a)
227 (272)279 3,271 
Non-controlling interest impact of adjustments
183 (6)183 (30)
Adjusted net income attributable to MPC$3,857 $464 $10,389 $769 
Diluted income per share$9.06 $1.09 $21.04 $13.81 
Adjusted diluted income per share(b)
$7.81 $0.73 $19.53 $1.18 
(a)Income taxes for the three and nine months ended September 30, 2022 were calculated by applying a combined federal and state tax rate of 22% to the pre-tax adjustments. Income taxes for adjusted earnings for the three and nine months ended September 30, 2021 were calculated by applying a combined federal and state statutory tax rate of 24% to the adjusted pre-tax income. The corresponding adjustments to reported income taxes are shown in the table above.
(b)Weighted average diluted shares used for the adjusted net loss per share calculations do not assume the conversion of share-based awards, as the effect would be anti-dilutive.

Adjusted EBITDA
Amounts included in net income (loss) attributable to MPC and excluded from adjusted EBITDA include (i) net interest and other financial costs; (ii) provision/benefit for income taxes; (iii) noncontrolling interests; (iv) depreciation and amortization; (v) refining planned turnaround costs and (vi) other adjustments as deemed necessary, as shown in the table below. We believe excluding turnaround costs from this metric is useful for comparability to other companies as certain of our competitors defer these costs and amortize them between turnarounds.
Adjusted EBITDA should not be considered as a substitute for, or superior to income (loss) from operations, net income attributable to MPC, income before income taxes, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.







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Reconciliation of Net Income Attributable to MPC to Adjusted EBITDA from Continuing Operations (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)
2022202120222021
Net income attributable to MPC$4,477 $694 $11,195 $8,964 
Net income attributable to noncontrolling interests543 336 1,214 932 
Income from discontinued operations, net of tax
— — — (8,448)
Provision (benefit) for income taxes on continuing operations1,426 (18)3,507 21 
Net interest and other financial costs
240 328 814 1,053 
Depreciation and amortization
794 836 2,418 2,551 
Refining planned turnaround costs
384 205 680 378 
Storm impacts
— 23 — 70 
LIFO inventory charge28 — 28 — 
Gain on sale of assets
(1,058)— (1,058)— 
Renewable volume obligation requirements— — (238)— 
Litigation
— — (27)— 
Impairments
— 12 — 25 
Adjusted EBITDA from continuing operations
$6,834 $2,416 $18,533 $5,546 

Reconciliation of Income from Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)2022202120222021
Income from discontinued operations, net of tax$— $— $— $8,448 
Provision for income taxes— — — 3,795 
Net interest and other financial costs— — — 6 
Depreciation and amortization— — — 3 
Gain on sale of assets— — — (11,682)
Transaction-related costs— — — 46 
Adjusted EBITDA from discontinued operations$— $— $— $616 





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Refining & Marketing Margin
Refining margin is defined as sales revenue less the cost of refinery inputs and purchased products.
Reconciliation of Refining & Marketing Income from Operations to Refining & Marketing Gross Margin and Refining & Marketing Margin (unaudited)
Three Months Ended 
September 30,		Nine Months Ended 
September 30,
(In millions)2022202120222021
Refining & Marketing income from operations$4,625 $509 $12,527 $135 
Plus (Less):
Selling, general and administrative expenses614 540 1,696 1,495 
Income from equity method investments(21)(8)(39)(27)
Net gain on disposal of assets— (3)(37)(6)
Other income(191)(146)(606)(289)
Refining & Marketing gross margin5,027 892 13,541 1,308 
Plus (Less):
Operating expenses (excluding depreciation and amortization)2,861 2,527 7,804 7,107 
Depreciation and amortization459 462 1,395 1,406 
Gross margin excluded from and other income included in Refining & Marketing margin(a)
51 (58)136 (353)
Other taxes included in Refining & Marketing margin(40)(38)(132)(104)
Refining & Marketing margin8,358 3,785 22,744 9,364 
LIFO inventory charge28 — 28 — 
Refining & Marketing margin, excluding LIFO inventory charge$8,386 $3,785 $22,772 $9,364 
Refining & Marketing margin by region:
Gulf Coast$3,264 $1,339 $9,161 $3,176 
Mid-Continent3,373 1,695 8,801 4,223 
West Coast1,749 751 4,810 1,965 
Refining & Marketing margin, excluding LIFO inventory charge$8,386 $3,785 $22,772 $9,364 
(a)Reflects the gross margin, excluding depreciation and amortization, of other related operations included in the Refining & Marketing segment and processing of credit card transactions on behalf of certain of our marketing customers, net of other income.




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