Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 | |
Trading Symbol | MPC | |
Entity Registrant Name | Marathon Petroleum Corp | |
Entity Central Index Key | 1,510,295 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 488,412,170 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues and other income: | ||||
Sales and other operating revenues (including consumer excise taxes) | $ 19,053 | $ 16,616 | $ 53,220 | $ 46,179 |
Sales to related parties | 157 | 2 | 458 | 5 |
Income (loss) from equity method investments | 84 | (208) | 224 | (236) |
Net gain on disposal of assets | 0 | 1 | 12 | 26 |
Other income | 92 | 49 | 219 | 106 |
Total revenues and other income | 19,386 | 16,460 | 54,133 | 46,080 |
Costs and expenses: | ||||
Cost of revenues (excludes items below) | 14,605 | 12,944 | 41,913 | 35,475 |
Purchases from related parties | 148 | 128 | 420 | 359 |
Inventory market valuation adjustment | 0 | 0 | 0 | (370) |
Consumer excise taxes | 2,012 | 1,914 | 5,751 | 5,633 |
Impairment expense | 0 | 0 | 0 | 130 |
Depreciation and amortization | 517 | 507 | 1,574 | 1,497 |
Selling, general and administrative expenses | 412 | 420 | 1,286 | 1,199 |
Other taxes | 116 | 112 | 339 | 332 |
Total costs and expenses | 17,810 | 16,025 | 51,283 | 44,255 |
Income from operations | 1,576 | 435 | 2,850 | 1,825 |
Net interest and other financial income (costs) | (157) | (141) | (465) | (420) |
Income before income taxes | 1,419 | 294 | 2,385 | 1,405 |
Provision for income taxes | 415 | 75 | 706 | 481 |
Net income | 1,004 | 219 | 1,679 | 924 |
Less net income (loss) attributable to: | ||||
Redeemable noncontrolling interest | 16 | 16 | 49 | 25 |
Noncontrolling interests | 85 | 58 | 214 | (48) |
Net income attributable to MPC | $ 903 | $ 145 | $ 1,416 | $ 947 |
Basic: | ||||
Net income attributable to MPC per share | $ 1.79 | $ 0.28 | $ 2.75 | $ 1.79 |
Weighted average shares outstanding (in shares) | 504 | 527 | 514 | 528 |
Diluted: | ||||
Net income attributable to MPC per share | $ 1.77 | $ 0.27 | $ 2.73 | $ 1.78 |
Weighted average shares outstanding (in shares) | 508 | 530 | 518 | 531 |
Dividends paid (in USD per share) | $ 0.40 | $ 0.36 | $ 1.12 | $ 1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,004 | $ 219 | $ 1,679 | $ 924 |
Defined benefit postretirement and post-employment plans: | ||||
Actuarial changes, net of tax of $2, $0, $9 and $8 | 4 | 2 | 15 | 14 |
Prior service costs, net of tax of ($4), ($5), ($12) and ($14) | (7) | (8) | (20) | (23) |
Other comprehensive loss | (3) | (6) | (5) | (9) |
Comprehensive income | 1,001 | 213 | 1,674 | 915 |
Less comprehensive income (loss) attributable to: | ||||
Redeemable noncontrolling interest | 16 | 16 | 49 | 25 |
Noncontrolling interests | 85 | 58 | 214 | (48) |
Comprehensive income attributable to MPC | $ 900 | $ 139 | $ 1,411 | $ 938 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Actuarial changes, tax | $ 2 | $ 0 | $ 9 | $ 8 |
Prior service costs, tax | $ (4) | $ (5) | $ (12) | $ (14) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents (MPLX: $3 and $234, respectively) | $ 2,088 | $ 887 |
Receivables, less allowance for doubtful accounts of $10 and $12 (MPLX: $328 and $304, respectively) | 3,900 | 3,617 |
Inventories (MPLX: $64 and $55, respectively) | 5,493 | 5,656 |
Other current assets (MPLX: $30 and $33, respectively) | 150 | 241 |
Total current assets | 11,631 | 10,401 |
Equity method investments (MPLX: $3,997 and $2,471, respectively) | 4,769 | 3,827 |
Property, plant and equipment, net (MPLX: $11,922 and $11,408, respectively) | 26,036 | 25,765 |
Goodwill (MPLX: $2,245 and $2,245, respectively) | 3,586 | 3,587 |
Other noncurrent assets (MPLX: $485 and $506, respectively) | 784 | 833 |
Total assets | 46,806 | 44,413 |
Current liabilities: | ||
Accounts payable (MPLX: $576 and $541, respectively) | 6,159 | 5,593 |
Payroll and benefits payable (MPLX: $1 and $1, respectively) | 459 | 530 |
Consumer excise taxes payable (MPLX: $2 and $3, respectively) | 371 | 464 |
Accrued taxes (MPLX: $42 and $35, respectively) | 361 | 153 |
Debt due within one year (MPLX: $1 and $1, respectively) | 29 | 28 |
Other current liabilities (MPLX: $107 and $81, respectively) | 268 | 378 |
Total current liabilities | 7,647 | 7,146 |
Long-term debt (MPLX: $6,848 and $4,422, respectively) | 12,753 | 10,544 |
Deferred income taxes (MPLX: $7 and $6, respectively) | 3,935 | 3,861 |
Defined benefit postretirement plan obligations | 1,029 | 1,055 |
Deferred credits and other liabilities (MPLX: $209 and $189, respectively) | 640 | 604 |
Total liabilities | 26,004 | 23,210 |
Commitments and contingencies (see Note 21) | ||
Redeemable noncontrolling interest | 1,000 | 1,000 |
MPC stockholders’ equity: | ||
Preferred stock, no shares issued and outstanding (par value 0.01 per share, 30 million shares authorized) | 0 | 0 |
Common stock: | ||
Issued – 733 million and 731 million shares (par value 0.01 per share, 1 billion shares authorized) | 7 | 7 |
Held in treasury, at cost – 235 million and 203 million shares | (9,118) | (7,482) |
Additional paid-in capital | 11,236 | 11,060 |
Retained earnings | 11,044 | 10,206 |
Accumulated other comprehensive loss | (239) | (234) |
Total MPC stockholders’ equity | 12,930 | 13,557 |
Noncontrolling interests | 6,872 | 6,646 |
Total equity | 19,802 | 20,203 |
Total liabilities, redeemable noncontrolling interest and equity | $ 46,806 | $ 44,413 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 10 | $ 12 |
Preferred stock: | ||
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Par value | $ 0.01 | |
Shares authorized | 30,000,000 | |
Common stock: | ||
Shares issued | 733,000,000 | 731,000,000 |
Par value | $ 0.01 | |
Shares authorized | 1,000,000,000 | |
Treasury stock | (235,000,000) | (203,000,000) |
Consolidated Balance Sheets (MP
Consolidated Balance Sheets (MPLX Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 2,088 | $ 887 |
Receivables, less allowance for doubtful accounts | 3,900 | 3,617 |
Inventories | 5,493 | 5,656 |
Other current assets | 150 | 241 |
Equity method investments | 4,769 | 3,827 |
Property, plant and equipment, net | 26,036 | 25,765 |
Goodwill | 3,586 | 3,587 |
Other noncurrent assets | 784 | 833 |
Liabilities | ||
Accounts payable | 6,159 | 5,593 |
Payroll and benefits payable | 459 | 530 |
Consumer excise taxes payable | 371 | 464 |
Accrued taxes | 361 | 153 |
Debt due within one year | 29 | 28 |
Other current liabilities | 268 | 378 |
Total long-term debt due after one year | 12,753 | 10,544 |
Deferred income taxes (MPLX: $7 and $6, respectively) | 3,935 | 3,861 |
Defined benefit postretirement plan obligations | 1,029 | 1,055 |
Deferred credits and other liabilities | 640 | 604 |
MPLX LP | ||
Assets | ||
Cash and cash equivalents | 3 | 234 |
Receivables, less allowance for doubtful accounts | 328 | 304 |
Inventories | 64 | 55 |
Other current assets | 30 | 33 |
Equity method investments | 3,997 | 2,471 |
Property, plant and equipment, net | 11,922 | 11,408 |
Goodwill | 2,245 | 2,245 |
Other noncurrent assets | 485 | 506 |
Liabilities | ||
Accounts payable | 576 | 541 |
Payroll and benefits payable | 1 | 1 |
Consumer excise taxes payable | 2 | 3 |
Accrued taxes | 42 | 35 |
Debt due within one year | 1 | 1 |
Other current liabilities | 107 | 81 |
Total long-term debt due after one year | 6,848 | 4,422 |
Deferred income taxes (MPLX: $7 and $6, respectively) | 7 | 6 |
Defined benefit postretirement plan obligations | 0 | 0 |
Deferred credits and other liabilities | $ 209 | $ 189 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||
Net income | $ 1,679 | $ 924 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred financing costs and debt discount | 46 | 47 |
Impairment expense | 0 | 130 |
Depreciation and amortization | 1,574 | 1,497 |
Inventory market valuation adjustment | 0 | (370) |
Pension and other postretirement benefits, net | (32) | (21) |
Deferred income taxes | 57 | 335 |
Net gain on disposal of assets | (12) | (26) |
(Income) loss from equity method investments | (224) | 236 |
Distributions from equity method investments | 252 | 199 |
Changes in the fair value of derivative instruments | 101 | 6 |
Changes in: | ||
Current receivables | (296) | (209) |
Inventories | 163 | 71 |
Current accounts payable and accrued liabilities | 654 | 237 |
All other, net | (99) | (54) |
Net cash provided by operating activities | 3,863 | 3,002 |
Investing activities: | ||
Additions to property, plant and equipment | (1,928) | (2,147) |
Acquisitions, net of cash acquired | (249) | 0 |
Disposal of assets | 64 | 88 |
Investments – acquisitions, loans and contributions | (730) | (240) |
Investments - redemptions, repayments and return of capital | 64 | 20 |
All other, net | 164 | 62 |
Net cash used in investing activities | (2,615) | (2,217) |
Financing activities: | ||
Commercial paper – issued | 300 | 1,063 |
Commercial paper - repayments | (300) | (1,063) |
Long-term debt – borrowings | 2,661 | 714 |
Long-term debt – repayments | (470) | (2,112) |
Debt issuance costs | (28) | (11) |
Issuance of common stock | 27 | 8 |
Common stock repurchased | (1,622) | (177) |
Dividends paid | (578) | (529) |
Issuance of MPLX LP common units | 473 | 499 |
Issuance of MPLX LP redeemable preferred units | 0 | 984 |
Distributions to noncontrolling interests | (505) | (389) |
Contributions from noncontrolling interests | 128 | 4 |
Contingent consideration payment | (89) | (164) |
All other, net | (44) | (30) |
Net cash used in financing activities | (47) | (1,203) |
Net increase (decrease) in cash and cash equivalents | 1,201 | (418) |
Cash and cash equivalents at beginning of period | 887 | 1,127 |
Cash and cash equivalents at end of period | $ 2,088 | $ 709 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Dec. 31, 2015 | $ 19,675 | $ 7 | $ (7,275) | $ 11,071 | $ 9,752 | $ (318) | $ 6,438 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 899 | 947 | (48) | ||||
Dividends declared | (530) | (530) | |||||
Distributions to noncontrolling interests | (380) | (380) | |||||
Contributions from noncontrolling interests | 4 | 4 | |||||
Other comprehensive loss | (9) | (9) | |||||
Shares repurchased | (177) | (177) | |||||
Shares returned - stock based compensation | (7) | ||||||
Shares issued - stock based compensation | 8 | ||||||
Net shares issued - stock based compensation | 1 | ||||||
Stock-based compensation | 45 | 39 | 6 | ||||
Impact from equity transactions of MPLX LP | 429 | (113) | 542 | ||||
Ending balance at Sep. 30, 2016 | 19,957 | 7 | (7,459) | 11,005 | 10,169 | (327) | 6,562 |
Beginning balance at Dec. 31, 2016 | 20,203 | 7 | (7,482) | 11,060 | 10,206 | (234) | 6,646 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,630 | 1,416 | 214 | ||||
Dividends declared | (578) | (578) | |||||
Distributions to noncontrolling interests | (456) | (456) | |||||
Contributions from noncontrolling interests | 128 | 128 | |||||
Other comprehensive loss | (5) | (5) | |||||
Shares repurchased | (1,622) | (1,622) | |||||
Shares returned - stock based compensation | (14) | ||||||
Shares issued - stock based compensation | 27 | ||||||
Net shares issued - stock based compensation | 13 | ||||||
Stock-based compensation | 42 | 37 | 5 | ||||
Impact from equity transactions of MPLX LP | 447 | 112 | 335 | ||||
Ending balance at Sep. 30, 2017 | $ 19,802 | $ 7 | $ (9,118) | $ 11,236 | $ 11,044 | $ (239) | $ 6,872 |
Consolidated Statement of Equit
Consolidated Statement of Equity - Shares - shares shares in Millions | Total | Common Stock | Treasury Stock |
Number of common shares issued (beginning balance) at Dec. 31, 2015 | 729 | ||
Number of shares issued - stock-based compensation | 2 | ||
Number of common shares issued (ending balance) at Sep. 30, 2016 | 731 | ||
Number of shares held in treasury (beginning balance) at Dec. 31, 2015 | (198) | ||
Number of shares repurchased | (4) | (4) | |
Number of shares returned - stock-based compensation | (1) | ||
Number of shares held in treasury (ending balance) at Sep. 30, 2016 | (203) | ||
Number of common shares issued (beginning balance) at Dec. 31, 2016 | 731 | 731 | |
Number of shares issued - stock-based compensation | 2 | ||
Number of common shares issued (ending balance) at Sep. 30, 2017 | 733 | 733 | |
Number of shares held in treasury (beginning balance) at Dec. 31, 2016 | (203) | (203) | |
Number of shares repurchased | (31) | (31) | |
Number of shares returned - stock-based compensation | (1) | ||
Number of shares held in treasury (ending balance) at Sep. 30, 2017 | (235) | (235) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Temporary Equity [Abstract] | ||
Beginning balance | $ 1,000 | $ 0 |
Net income (loss) attributable to redeemable noncontrolling interest | 49 | 25 |
Distributions to noncontrolling interests | (49) | (9) |
Issuance of MPLX LP redeemable preferred units | 984 | |
Ending balance | $ 1,000 | $ 1,000 |
Description of the Business and
Description of the Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation Description of the Business— Our business consists of refining and marketing, retail and midstream services conducted primarily in the Midwest, Gulf Coast, East Coast, Northeast and Southeast regions of the United States, through subsidiaries, including Marathon Petroleum Company LP (“MPC LP”), Speedway LLC and its subsidiaries (“Speedway”) and MPLX LP and its subsidiaries (“MPLX”). See Note 9 for additional information about our operations. Basis of Presentation— All significant intercompany transactions and accounts have been eliminated. These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 . The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain prior period financial statement amounts have been reclassified to conform to current period presentation. In the first quarter of 2017, we revised our segment reporting in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. See Note 3 for additional information. The operating results for these assets are now reported in our Midstream segment. Previously, they were reported as part of our Refining & Marketing segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses for accounting purposes and, therefore, there are no financial results from which to recast segment results. Additionally, the MPLX asset and liability balances as of December 31, 2016, reported in parentheses on our consolidated balance sheets, have also been recast to reflect this transaction. See Note 9 and Note 13 for additional information. |
Accounting Standards
Accounting Standards | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted | Accounting Standards Recently Adopted In October 2016, the FASB issued an accounting standards update to amend the consolidation guidance issued in February 2015 to require that a decision maker consider, in the determination of the primary beneficiary, its indirect interest in a VIE held by a related party that is under common control on a proportionate basis only. The change was effective for our financial statements for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. We were required to apply the standard retrospective to January 1, 2016, the date on which we adopted the consolidation guidance issued in February 2015. Adoption of this accounting standards update in the first quarter of 2017 did not have an impact on our consolidated financial statements. In March 2016, the FASB issued an accounting standards update to simplify some provisions in stock compensation accounting. The areas for simplification involve the accounting for share-based payment transactions, including income tax consequences, classifications of awards as either equity or liabilities and classification within the statement of cash flows. The changes were effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Adoption of this accounting standards update in the first quarter of 2017 did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued an accounting standards update eliminating the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for the equity method. This change was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Adoption of this accounting standards update in the first quarter of 2017 did not have an impact on our consolidated financial statements. |
Not Yet Adopted | Not Yet Adopted In August 2017, the FASB issued accounting standards update to amend the hedge accounting rules to simplify the application of hedge accounting guidance and better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, as well as eases certain hedge effectiveness assessment requirements. The guidance is effective beginning in 2019 with early adoption permitted. We are currently evaluating the impact of this guidance, including transition elections and required disclosures, on our financial statements and the timing of adoption. In May 2017, the FASB issued an accounting standards update to provide guidance about when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless the fair value, vesting conditions and balance sheet classification of the modified award is the same as the original award immediately before the original award is modified. We will adopt this accounting standards update January 1, 2018. This update should be applied prospectively to an award modified on or after the adoption date. We do not expect the application of this accounting standards update to have a material impact on our consolidated financial statements. In March 2017, the FASB issued an accounting standards update requiring that the service cost component of pension and postretirement benefit costs be presented in the same line item as other current employee compensation costs and other components of those benefit costs be presented separately from the service cost component and outside a subtotal of income from operations, if presented. The update also requires that only the service cost component of pension and postretirement benefit cost is eligible for capitalization. We will adopt this accounting standards update January 1, 2018. Application is retrospective for the presentation of the components of these benefit costs and prospective for the capitalization of only service costs. We do not expect the application of this accounting standards update to have a material impact on our consolidated financial statements. In February 2017, the FASB issued an accounting standards update addressing the derecognition of nonfinancial assets. The guidance defines in substance nonfinancial assets, and states that the derecognition of business activities should be evaluated under the consolidation guidance, with limited exceptions related to conveyances of oil and gas mineral rights or contracts with customers. The standard eliminates the previous exclusion for businesses that are in-substance real estate, and eliminates some differences based on whether a transferred set is that of assets or a business and whether the transfer is to a joint venture. The standard must be implemented in conjunction with the implementation date of the revenue recognition accounting standards update, which we will implement January 1, 2018. We plan to adopt the new standard using the modified retrospective method and do not expect the application of this accounting standards update to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an accounting standards update which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, the recognition of an impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit’s fair value, which could be different from the amount calculated under the current method using the implied fair value of the goodwill; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance should be applied on a prospective basis, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In January 2017, the FASB issued an accounting standards update to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is intended to narrow the definition of a business by specifying the minimum inputs and processes and by narrowing the definition of outputs. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The guidance will be applied prospectively and early adoption is permitted for certain transactions. In November 2016, the FASB issued an accounting standards update requiring that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Retrospective application is required. Application of this accounting standards update will not have a material impact on our statements of cash flows. In October 2016, the FASB issued an accounting standards update that requires recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this accounting standards update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We do not expect application of this accounting standards update to have a material impact on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update related to the classification of certain cash flows. The accounting standards update provides specific guidance on eight cash flow classification issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination and distributions received from equity method investees, to reduce diversity in practice. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Retrospective application is required. We do not expect application of this accounting standards update to have a material impact on our statements of cash flows. In June 2016, the FASB issued an accounting standards update related to the accounting for credit losses on certain financial instruments. The guidance requires that for most financial assets, losses be based on an expected loss approach which includes estimates of losses over the life of exposure that considers historical, current and forecasted information. Expanded disclosures related to the methods used to estimate the losses as well as a specific disaggregation of balances for financial assets are also required. The change is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We do not expect application of this accounting standards update to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standards update requiring lessees to record virtually all leases on their balance sheets. The accounting standards update also requires expanded disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The change will be effective on a modified retrospective basis for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We are currently evaluating the impact of this standard on our financial statements and disclosures, internal controls and accounting policies. This evaluation process includes reviewing all forms of leases, performing a completeness assessment over the lease population and analyzing the practical expedients in order to determine the best path of implementing changes to existing processes and controls along with necessary system implementations. We do not plan to early adopt the standard. We believe the impact will be material on the consolidated financial statements as all leases will be recognized as a right of use asset and lease obligation. Based on results of our evaluation process to date, we also believe the impact on our existing processes, controls and information systems may be material. In January 2016, the FASB issued an accounting standards update requiring unconsolidated equity investments, not accounted for under the equity method, to be measured at fair value with changes in fair value recognized in net income. The accounting standards update also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes and the separate presentation of financial assets and liabilities by measurement category and form on the balance sheet and accompanying notes. The accounting standards update eliminates the requirement to disclose the methods and assumptions used in estimating the fair value of financial instruments measured at amortized cost. Lastly, the accounting standards update requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when electing to measure the liability at fair value in accordance with the fair value option for financial instruments. The changes are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted only for the guidance regarding presentation of a liability’s credit risk. We do not expect application of this accounting standards update to have a material impact on our consolidated financial statements. In May 2014, the FASB issued an accounting standards update for revenue recognition for contracts with customers. The guidance in the accounting standards update states that revenue is recognized when a customer obtains control of a good or service. Recognition of the revenue will involve a multiple step approach including identifying the contract, identifying the separate performance obligations, determining the transaction price, allocating the price to the performance obligations and recognizing the revenue as the obligations are satisfied. Additional disclosures will be required to provide adequate information to understand the nature, amount, timing and uncertainty of reported revenues and revenues expected to be recognized. We will adopt the standard January 1, 2018, using the modified retrospective method, which will result in a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact of this standard on our financial statements and disclosures, internal controls and accounting policies. Based on the results to date, we have reached tentative conclusions for most contract types and do not believe revenue recognition patterns will change materially. We do expect certain contracts in our Midstream segment to be presented on a gross revenue recognition basis as a result of implementation. In addition, we expect to elect to change our presentation of consumer excise taxes incurred concurrently with revenue producing transactions from gross to net upon the adoption of this accounting standards update. Based on the results of our evaluation process to date, we do not expect our existing revenue recognition processes, controls and information systems to materially change. |
MPLX LP
MPLX LP | 9 Months Ended |
Sep. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
MPLX LP | MPLX LP MPLX is a diversified, growth-oriented publicly traded master limited partnership formed by us to own, operate, develop and acquire midstream energy infrastructure assets. On December 4, 2015, MPLX and MarkWest Energy Partners, L.P. (“MarkWest”) completed a merger, whereby MarkWest became a wholly-owned subsidiary of MPLX (the “MarkWest Merger”). MarkWest’s operations include: natural gas gathering, processing and transportation; and NGL gathering, transportation, fractionation, storage and marketing. MPLX owns or has an interest in a network of private and common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States, a butane cavern in Neal, West Virginia, and NGL storage caverns in Woodhaven, Michigan. MPLX owns an inland marine business, comprised of tow boats and barges, which transport crude oil and refined products principally for MPC in the Midwest and Gulf Coast regions of the United States. MPLX also owns a light-product terminal business, which provides terminalling services principally for MPC in the Midwest and Southeast regions of the United States. See Note 4 for information on MPLX’s acquisition of the Ozark pipeline, its investment in the Bakken Pipeline system and the formation of a joint venture with Antero Midstream Partners LP (“Antero Midstream”) during the first quarter of 2017. As of September 30, 2017 , we owned a 30.4 percent interest in MPLX, including a two percent general partner interest. MPLX is a VIE because the limited partners of MPLX do not have substantive kick-out or substantive participating rights over the general partner. We are the primary beneficiary of MPLX because in addition to significant economic interest, we also have the power, through our 100 percent ownership of the general partner, to control the decisions that most significantly impact MPLX. We therefore consolidate MPLX and record a noncontrolling interest for the 69.6 percent interest owned by the public. The components of our noncontrolling interest consist of equity-based noncontrolling interest and redeemable noncontrolling interest. The redeemable noncontrolling interest relates to MPLX’s preferred units, discussed below. The creditors of MPLX do not have recourse to MPC’s general credit through guarantees or other financial arrangements. The assets of MPLX are the property of MPLX and cannot be used to satisfy the obligations of MPC. MPC has effectively guaranteed certain indebtedness of LOOP LLC (“LOOP”) and LOCAP LLC (“LOCAP”), in which MPLX holds an interest. See Note 21 for more information. Reorganization Transactions On September 1, 2016, MPC, MPLX and various affiliates initiated a series of reorganization transactions in order to simplify MPLX’s ownership structure and its financial and tax reporting. In connection with these transactions, MPC contributed $225 million to MPLX and all of the issued and outstanding MPLX Class A Units, all of which were held by MarkWest Hydrocarbon L.L.C. (“MarkWest Hydrocarbon”), a subsidiary of MPLX, were exchanged for newly issued common units representing limited partner interests in MPLX. The simple average of the NYSE closing price of MPLX common units for the 10 trading days preceding September 1, 2016 was used for purposes of these transactions. As a result of these transactions, MPC increased its ownership interest in MPLX by 7 million MPLX common units, or approximately 1 percent . Private Placement of Preferred Units On May 13, 2016, MPLX completed the private placement of approximately 30.8 million 6.5 percent Series A Convertible Preferred Units (the “MPLX Preferred Units”) for a cash price of $32.50 per unit. The aggregate net proceeds of approximately $984 million from the sale of the MPLX Preferred Units was used by MPLX for capital expenditures, repayment of debt and general partnership purposes. The MPLX Preferred Units rank senior to all MPLX common units with respect to distributions and rights upon liquidation. The holders of the MPLX Preferred Units are entitled to receive quarterly distributions equal to $0.528125 per unit commencing for the quarter ended June 30, 2016, with a prorated amount from the date of issuance. Following the second anniversary of the issuance of the MPLX Preferred Units, the holders of the MPLX Preferred Units will receive as a distribution the greater of $0.528125 per unit or the amount of per unit distributions paid to holders of MPLX common units. The MPLX Preferred Units are convertible into MPLX common units on a one for one basis after three years, at the purchasers’ option, and after four years at MPLX’s option, subject to certain conditions. The MPLX Preferred Units are considered redeemable securities due to the existence of redemption provisions upon a deemed liquidation event which is considered outside MPLX’s control. Therefore, they are presented as temporary equity in the mezzanine section of the consolidated balance sheets. We have recorded the MPLX Preferred Units at their issuance date fair value, net of issuance costs. Since the MPLX Preferred Units are not currently redeemable and not probable of becoming redeemable in the future, adjustment to the initial carrying amount is not necessary and would only be required if it becomes probable that the security would become redeemable. Dropdowns to MPLX On September 1, 2017, we contributed our joint-interest ownership in certain pipelines and storage facilities to MPLX in exchange for total consideration of $1.05 billion . This consideration consisted of MPLX equity and $420 million in cash. We received approximately 19 million MPLX common units and 378 thousand general partner units from MPLX, which was determined by dividing $630 million by the simple average of the 10 day trading volume weighted average NYSE price of an MPLX common unit for the 10 trading days ending at market close on August 31, 2017, pursuant to a Membership Interests and Shares Contributions Agreement. We also agreed to waive two-thirds of the third quarter 2017 common unit distributions, IDRs and general partner distributions with respect to the common units issued in this transaction. The contributions of these assets were accounted for as transactions between entities under common control and we did not record a gain or loss. On March 1, 2017, we contributed certain terminal, pipeline and storage assets to MPLX in exchange for total consideration of $2.0 billion . This consideration consisted of MPLX equity and $1.5 billion in cash. We received approximately 13 million MPLX common units and 264 thousand general partner units from MPLX, which was determined by dividing $504 million by the simple average of the volume weighted average NYSE price of an MPLX common unit for the 10 trading days preceding February 28, 2017, pursuant to a Membership Interests Contributions Agreement. We also agreed to waive two-thirds of the first quarter 2017 common unit distributions, IDRs and general partner distributions with respect to the common units issued in this transaction. The contributions of these assets were accounted for as transactions between entities under common control and we did not record a gain or loss. On March 31, 2016, we contributed our inland marine business to MPLX in exchange for 23 million MPLX common units and 460 thousand general partner units. The number of units we received from MPLX was determined by dividing $600 million by the simple average of the volume weighted average NYSE price of an MPLX common unit for the 10 trading days preceding March 14, 2016, pursuant to a Membership Interests Contribution Agreement. We also agreed to waive first-quarter 2016 common unit distributions, IDRs and general partner distributions with respect to the common units issued in this transaction. The contribution of our inland marine business was accounted for as a transaction between entities under common control and we did not record a gain or loss. Public Offerings On February 10, 2017, MPLX completed a public offering of $1.25 billion aggregate principal amount of 4.125% unsecured senior notes due March 2027 and $1.0 billion aggregate principal amount of 5.200% unsecured senior notes due March 2047. MPLX used the net proceeds from this offering to fund the $1.5 billion cash portion of the consideration MPLX paid MPC for the dropdown of assets on March 1, 2017, as well as for general partnership purposes. See Note 16 for more information. ATM Program On August 4, 2016, MPLX entered into a Second Amended and Restated Distribution Agreement (the “Distribution Agreement”) providing for the continuous issuance of common units, in amounts, at prices and on terms to be determined by market conditions and other factors at the time of any offerings (such continuous offering program, or at-the-market program, referred to as the “ATM Program”). MPLX expects to use the net proceeds from sales under the ATM Program for general partnership purposes including repayment of debt and funding for acquisitions, working capital requirements and capital expenditures. During the nine months ended September 30, 2017 , MPLX issued an aggregate of 14 million MPLX common units under the ATM Program, generating net proceeds of approximately $473 million . As of September 30, 2017 , $1.74 billion of MPLX common units remain available for issuance through the ATM Program under the Distribution Agreement. Noncontrolling Interest Changes in MPC’s equity and the offsetting changes to noncontrolling interest resulting from changes in MPC’s and the noncontrolling interest’s ownership interests in MPLX were as follows: Nine Months Ended (In millions) 2017 2016 Transfers (to) from noncontrolling interest Increase (decrease) in MPC's additional paid in capital for the issuance of MPLX LP common units to the public $ 25 $ (43 ) Increase in MPC's additional paid in capital for the issuance of MPLX LP common units and general partner units to MPC 113 — Net transfers (to) from noncontrolling interests 138 (43 ) Tax impact (26 ) (70 ) Change in MPC's additional paid-in capital, net of tax $ 112 $ (113 ) Agreements We have various long-term, fee-based transportation, terminal and storage services agreements with MPLX. Under these agreements, MPLX provides transportation, terminal and storage services to us, and we commit to provide MPLX with minimum quarterly throughput volumes on crude oil and refined products systems and minimum storage volumes of crude oil, refined products and butane. We also have agreements with MPLX that establish fees for operational and management services provided between us and MPLX and for executive management services and certain general and administrative services provided by us to MPLX. These transactions are eliminated in consolidation. |
Acquisitions and Investments
Acquisitions and Investments | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Investments | Acquisitions and Investments Acquisition of Ozark Pipeline On March 1, 2017, MPLX acquired the Ozark pipeline from Enbridge Pipelines (Ozark) LLC for approximately $219 million , including purchase price adjustments made in the second quarter of 2017. Based on the fair value of assets acquired and liabilities assumed at the acquisition date, the final purchase price was primarily allocated to property, plant and equipment. The Ozark pipeline is a 433 -mile, 22 -inch crude oil pipeline originating in Cushing, Oklahoma, and terminating in Wood River, Illinois, capable of transporting approximately 230 mbpd. We account for the Ozark pipeline within the Midstream segment. The amounts of revenue and income from operations associated with the acquisition included in our consolidated statements of income, since the March 1, 2017 acquisition date, are as follows: Three Months Ended September 30, Seven Months Ended September 30, (In millions) 2017 2017 Sales and other operating revenues (including consumer excise taxes) $ 19 $ 45 Income from operations 6 17 Assuming the acquisition of the Ozark pipeline had occurred on January 1, 2016, the consolidated pro forma results would not have been materially different from reported results. Formation of Travel Plaza Joint Venture In the fourth quarter of 2016, Speedway and Pilot Flying J finalized the formation of a joint venture consisting of travel plazas, primarily in the Southeast United States. The new entity, PFJ Southeast LLC (“PFJ Southeast”), originally consisted of 41 existing locations contributed by Speedway and 82 locations contributed by Pilot Flying J, all of which carry either the Pilot or Flying J brand and are operated by Pilot Flying J. We did not recognize a gain on the $273 million non-cash contribution of our travel plazas to the joint venture since the contribution was that of in-substance real estate. Our non-cash contribution consisted of $203 million of property, plant and equipment, $62 million of goodwill and $8 million of inventory. Marine Investments We currently have indirect ownership interests in two ocean vessel joint ventures with Crowley Maritime Corporation (“Crowley”), which were established to own and operate Jones Act vessels in petroleum product service. We have invested a total of $189 million in these two ventures as described further below. In September 2015, we acquired a 50 percent ownership interest in a joint venture, Crowley Ocean Partners LLC (“Crowley Ocean Partners”), with Crowley. The joint venture owns and operates four new Jones Act product tankers, three of which are leased to MPC. Two of the vessels were delivered in 2015 and the remaining two were delivered in 2016. We have contributed a total of $141 million for the four vessels. In May 2016, MPC and Crowley formed a new ocean vessel joint venture, Crowley Coastal Partners LLC (“Crowley Coastal Partners”), in which MPC has a 50 percent ownership interest. MPC and Crowley each contributed their 50 percent ownership in Crowley Ocean Partners, discussed above, into Crowley Coastal Partners. In addition, we contributed $48 million in cash and Crowley contributed its 100 percent ownership interest in Crowley Blue Water Partners LLC (“Crowley Blue Water Partners”) to Crowley Coastal Partners. Crowley Blue Water Partners is an entity that owns and operates three 750 Series ATB vessels that are leased to MPC. We account for our 50 percent interest in Crowley Coastal Partners as part of our Midstream segment using the equity method of accounting. See Note 5 for information on Crowley Coastal Partners as a VIE and Note 21 for information on our conditional guarantee of the indebtedness of Crowley Ocean Partners and Crowley Blue Water Partners. Investment in Pipeline Company On February 15, 2017, MPLX closed on the previously announced transaction to acquire a partial, indirect equity interest in the Dakota Access Pipeline (“DAPL”) and Energy Transfer Crude Oil Company Pipeline (“ETCOP”) projects, collectively referred to as the Bakken Pipeline system, through a joint venture with Enbridge Energy Partners L.P. (“Enbridge Energy Partners”). The Bakken Pipeline system is currently expected to deliver in excess of 470 mbpd of crude oil from the Bakken/Three Forks production area in North Dakota to the Midwest through Patoka, Illinois and ultimately to the Gulf Coast. MPLX contributed $500 million of the $2 billion purchase price paid by the joint venture, MarEn Bakken Company LLC (“MarEn Bakken”), to acquire a 36.75 percent indirect equity interest in the Bakken Pipeline system from Energy Transfer Partners, L.P. (“ETP”) and Sunoco Logistics Partners, L.P. (“SXL”). MPLX holds, through a subsidiary, a 25 percent interest in MarEn Bakken, which equates to an approximate 9.2 percent indirect equity interest in the Bakken Pipeline system. In connection with this investment by MPLX, we have agreed to waive our right to receive IDRs of approximately $1.6 million per quarter for twelve consecutive quarters beginning with distributions declared by MPLX in the first quarter of 2017 and paid to us in the second quarter, which has been prorated to $0.8 million from the acquisition date. We account for the investment in MarEn Bakken as part of our Midstream segment using the equity method of accounting. In connection with closing the transaction with ETP and SXL and the previous decision to indefinitely suspend the Sandpiper project, Enbridge Energy Partners canceled MPC’s transportation services agreement with respect to the Sandpiper pipeline and released MPC from paying any termination fee per that agreement. Formation of Gathering and Processing Joint Venture Effective January 1, 2017, MarkWest and Antero Midstream formed a joint venture, Sherwood Midstream LLC (“Sherwood Midstream”), to support the development of Antero Resources Corporation’s Marcellus Shale acreage in West Virginia. MarkWest has a 50 percent ownership interest in Sherwood Midstream. In connection with this transaction, MarkWest contributed certain gas processing plants currently under construction at the Sherwood Complex with a fair value of approximately $134 million and cash of approximately $20 million . Antero Midstream made an initial capital contribution of approximately $154 million . Also effective January 1, 2017, MarkWest converted all of its ownership interests in MarkWest Ohio Fractionation Company, L.L.C. (“Ohio Fractionation”), a previously wholly-owned subsidiary, to Class A Interests and amended its LLC Agreement to create Class B-3 Interests, which were sold to Sherwood Midstream for $126 million in cash. The Class B-3 Interests provide Sherwood Midstream with the right to fractionation revenue and the obligation to pay expenses related to 20 mbpd of capacity in the Hopedale 3 fractionator. Effective January 1, 2017, MarkWest and Sherwood Midstream formed a joint venture, Sherwood Midstream Holdings LLC (“Sherwood Midstream Holdings”), for the purpose of owning, operating and maintaining all of the shared assets for the benefit of and use in the operation of the gas plants and other assets owned by Sherwood Midstream and the gas plants and deethanization facilities owned by MarkWest. MarkWest contributed certain real property, equipment and facilities with a fair value of approximately $209 million to Sherwood Midstream Holdings in exchange for a 79 percent initial ownership interest. Sherwood Midstream contributed cash of approximately $44 million to Sherwood Midstream Holdings in exchange for a 21 percent ownership interest. MarkWest has a 10.5 percent indirect interest in Sherwood Midstream Holdings through its ownership in Sherwood Midstream. The net book value of the contributed assets was approximately $203 million . The contribution was determined to be an in-substance sale of real estate. As such, MarkWest only recognized a gain for the portion attributable to Antero Midstream’s indirect interest of approximately $2 million . We account for our direct interests in Sherwood Midstream and Sherwood Midstream Holdings as part of our Midstream segment using the equity method of accounting. We continue to consolidate Ohio Fractionation and have recognized a noncontrolling interest for Sherwood Midstream’s interest in that entity. See Note 5 for additional information related to the investments in Sherwood Midstream, Ohio Fractionation and Sherwood Midstream Holdings. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities In addition to MPLX, as described in Note 3 , the following entities are also VIEs. Crowley Coastal Partners In May 2016, Crowley Coastal Partners was formed to own an interest in both Crowley Ocean Partners and Crowley Blue Water Partners. We have determined that Crowley Coastal Partners is a VIE based on the terms of the existing financing arrangements for Crowley Blue Water Partners and Crowley Ocean Partners and the associated debt guarantees by MPC and Crowley. Our maximum exposure to loss at September 30, 2017 was $493 million , which includes our equity method investment in Crowley Coastal Partners and the debt guarantees provided to each of the lenders to Crowley Blue Water Partners and Crowley Ocean Partners. We are not the primary beneficiary of this VIE because we do not have the power to control the activities that significantly influence the economic outcomes of the entity and, therefore, do not consolidate the entity. MarkWest Utica EMG On January 1, 2012, MarkWest Utica Operating Company, LLC (“Utica Operating”), a wholly-owned and consolidated subsidiary of MarkWest, and EMG Utica, LLC ("EMG Utica") (together the "Members"), executed agreements to form a joint venture, MarkWest Utica EMG LLC (“MarkWest Utica EMG”), to develop significant natural gas gathering, processing and NGL fractionation, transportation and marketing infrastructure in eastern Ohio. As of September 30, 2017 , MarkWest had a 56 percent ownership interest in MarkWest Utica EMG. MarkWest Utica EMG's inability to fund its planned activities without subordinated financial support qualify it as a VIE. Utica Operating is not deemed to be the primary beneficiary due to EMG Utica’s voting rights on significant matters. We account for our ownership interest in MarkWest Utica EMG as an equity method investment. MPLX receives engineering and construction and administrative management fee revenue and reimbursement for other direct personnel costs for operating MarkWest Utica EMG. Our maximum exposure to loss as a result of our involvement with MarkWest Utica EMG includes our equity investment, any additional capital contribution commitments and any operating expenses incurred by the subsidiary operator in excess of compensation received for the performance of the operating services. Our equity investment in MarkWest Utica EMG at September 30, 2017 was $2.2 billion . Ohio Gathering Ohio Gathering Company, L.L.C. (“Ohio Gathering”) is a subsidiary of MarkWest Utica EMG and is engaged in providing natural gas gathering services in the Utica Shale in eastern Ohio. Ohio Gathering is a joint venture between MarkWest Utica EMG and Summit Midstream Partners, LLC. As of September 30, 2017 , we had a 34 percent indirect ownership interest in Ohio Gathering. As this entity is a subsidiary of MarkWest Utica EMG, which is accounted for as an equity method investment, MPLX reports its portion of Ohio Gathering’s net assets as a component of its investment in MarkWest Utica EMG. MPLX receives engineering and construction and administrative management fee revenue and reimbursement for other direct personnel costs for operating Ohio Gathering. Sherwood Midstream As described in Note 4 , MarkWest and Antero Midstream formed a joint venture, Sherwood Midstream, to support the development of Antero Resources Corporation’s Marcellus Shale acreage in West Virginia. As of September 30, 2017 , MarkWest had a 50 percent ownership interest in Sherwood Midstream. Sherwood Midstream’s inability to fund its planned activities without additional subordinated financial support qualify it as a VIE. MarkWest is not deemed to be the primary beneficiary, due to Antero Midstream’s voting rights on significant matters. We account for our ownership interest in Sherwood Midstream using the equity method of accounting. Our maximum exposure to loss as a result of our involvement with Sherwood Midstream includes our equity investment, any additional capital contribution commitments and any operating expenses incurred by the subsidiary operator in excess of compensation received for the performance of the operating services. Our equity investment in Sherwood Midstream at September 30, 2017 was $220 million . Ohio Fractionation As described in Note 4 , MarkWest converted all of its ownership interests in Ohio Fractionation to Class A Interests and amended its LLC Agreement to create Class B-3 Interests, which were sold to Sherwood Midstream, providing it with the right to fractionation revenue and the obligation to pay expenses related to 20 mbpd of capacity in the Hopedale 3 fractionator. Ohio Fractionation’s inability to fund its operations without additional subordinated financial support qualify it as a VIE. MarkWest has been deemed to be the primary beneficiary of Ohio Fractionation because it has control over decisions that could significantly impact its financial performance, and as a result, consolidates Ohio Fractionation. Sherwood Midstream Holdings As described in Note 4 , MarkWest and Sherwood Midstream entered into a joint venture, Sherwood Midstream Holdings, for the purpose of owning, operating and maintaining all of the shared assets for the benefit of and use in the operation of the gas plants and other assets owned by Sherwood Midstream and the gas plants and deethanization facilities owned by MarkWest. MarkWest had an initial 79 percent direct ownership in Sherwood Midstream Holdings, in addition to a 10.5 percent indirect interest through its ownership in Sherwood Midstream. Sherwood Midstream Holdings’ inability to fund its operations without additional subordinated financial support qualify it as a VIE. We account for our ownership interest in Sherwood Midstream Holdings using the equity method of accounting as Sherwood Midstream is considered to be the general partner and controls all decisions related to Sherwood Midstream Holdings. Our maximum exposure to loss as a result of our involvement with Sherwood Midstream Holdings includes our equity investment, any additional capital contribution commitments and any operating expenses incurred by the subsidiary operator in excess of compensation received for the performance of the operating services. Our equity investment in Sherwood Midstream Holdings at September 30, 2017 was $163 million . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Our related parties include: • Crowley Blue Water Partners, in which we have a 50 percent indirect noncontrolling interest. Crowley Blue Water Partners owns and operates three Jones Act ATB vessels. • Crowley Ocean Partners, in which we have a 50 percent indirect noncontrolling interest. Crowley Ocean Partners owns and operates Jones Act product tankers. • Explorer Pipeline Company (“Explorer”), in which we have a 25 percent interest. Explorer owns and operates a refined products pipeline. • Illinois Extension Pipeline Company, L.L.C. (“Illinois Extension Pipeline”), in which we have a 35 percent noncontrolling interest. Illinois Extension Pipeline owns and operates the Southern Access Extension (“SAX”) crude oil pipeline. • LOCAP, in which we have a 59 percent noncontrolling interest. LOCAP owns and operates a crude oil pipeline. • LOOP, in which we have a 51 percent noncontrolling interest. LOOP owns and operates the only U.S. deepwater crude oil port. • MarkWest Utica EMG, in which we have a 56 percent noncontrolling interest. MarkWest Utica EMG is engaged in natural gas processing and NGL fractionation, transportation and marketing in Ohio. • Ohio Gathering, in which we have a 34 percent indirect noncontrolling interest. Ohio Gathering is a subsidiary of MarkWest Utica EMG providing natural gas gathering service in the Utica Shale region of eastern Ohio. • PFJ Southeast, in which we have a 29 percent noncontrolling interest. PFJ Southeast owns and operates travel plazas primarily in the Southeast region of the United States. • Sherwood Midstream, in which we have a 50 percent noncontrolling interest. Sherwood Midstream supports the development of Antero Resources Corporation’s Marcellus Shale acreage in West Virginia. • Sherwood Midstream Holdings, in which we have an 86 percent direct and indirect noncontrolling interest. Sherwood Midstream Holdings owns certain infrastructure at the Sherwood Complex that is shared by and supports the operation of both the Sherwood Midstream and MarkWest gas processing plants and deethanization facilities. • The Andersons Albion Ethanol LLC (“TAAE”), in which we have a 45 percent noncontrolling interest, The Andersons Clymers Ethanol LLC (“TACE”), in which we have a 61 percent noncontrolling interest and The Andersons Marathon Ethanol LLC (“TAME”), in which we have a 67 percent noncontrolling interest. These companies each own and operate an ethanol production facility. • Other equity method investees. We believe that transactions with related parties were conducted on terms comparable to those with unaffiliated parties. Sales to related parties were as follows: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 PFJ Southeast $ 155 $ — $ 451 $ — Other equity method investees 2 2 7 5 Total $ 157 $ 2 $ 458 $ 5 Sales to related parties consists primarily of sales of refined products. Other income from related parties, which is included in “Other income” on the accompanying consolidated statements of income, were as follows: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 MarkWest Utica EMG $ 5 $ 5 $ 13 $ 12 Ohio Gathering 4 5 12 12 Other equity method investees 4 2 14 7 Total $ 13 $ 12 $ 39 $ 31 Other income from related parties consists primarily of fees received for operating transportation assets for our related parties. Purchases from related parties were as follows: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Crowley Blue Water Partners $ 16 $ 16 $ 44 $ 22 Crowley Ocean Partners 20 15 59 32 Explorer 7 4 7 12 Illinois Extension Pipeline 26 27 75 82 LOCAP 6 6 17 18 LOOP 14 14 53 42 TAAE 22 9 53 29 TACE 9 10 34 39 TAME 20 23 58 67 Other equity method investees 8 4 20 16 Total $ 148 $ 128 $ 420 $ 359 Related party purchases from Crowley Blue Water Partners and Crowley Ocean Partners consist of leasing marine equipment primarily used to transport refined products. Related party purchases from Explorer consist primarily of refined product transportation costs. Related party purchases from Illinois Extension Pipeline, LOCAP, LOOP and other equity method investees consist primarily of crude oil transportation costs. Related party purchases from TAAE, TACE and TAME consist of ethanol purchases. Receivables from related parties, which are included in “Receivables, less allowance for doubtful accounts” on the accompanying consolidated balance sheets, were as follows: (In millions) September 30, December 31, MarkWest Utica EMG $ 2 $ 2 Ohio Gathering 2 2 PFJ Southeast 32 40 Other equity method investees 4 1 Total $ 40 $ 45 The long-term receivable, which is included in “Other noncurrent assets” on the accompanying consolidated balance sheet, was $1 million at September 30, 2017 and $1 million at December 31, 2016 . Payables to related parties, which are included in “Accounts payable” on the accompanying consolidated balance sheets, were as follows: (In millions) September 30, December 31, Illinois Extension Pipeline $ 9 $ 9 LOCAP 2 2 LOOP 5 6 MarkWest Utica EMG 30 24 TAAE 2 2 TACE 1 4 TAME 2 4 Other equity method investees 13 2 Total $ 64 $ 53 |
Income per Common Share
Income per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Income per Common Share | Income per Common Share We compute basic earnings per share by dividing net income attributable to MPC by the weighted average number of shares of common stock outstanding. Diluted income per share assumes exercise of certain stock-based compensation awards, provided the effect is not anti-dilutive. MPC grants certain incentive compensation awards to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method. Three Months Ended Nine Months Ended (In millions, except per share data) 2017 2016 2017 2016 Basic earnings per share: Allocation of earnings: Net income attributable to MPC $ 903 $ 145 $ 1,416 $ 947 Income allocated to participating securities — — 1 1 Income available to common stockholders – basic $ 903 $ 145 $ 1,415 $ 946 Weighted average common shares outstanding 504 527 514 528 Basic earnings per share $ 1.79 $ 0.28 $ 2.75 $ 1.79 Diluted earnings per share: Allocation of earnings: Net income attributable to MPC $ 903 $ 145 $ 1,416 $ 947 Income allocated to participating securities — — 1 1 Income available to common stockholders – diluted $ 903 $ 145 $ 1,415 $ 946 Weighted average common shares outstanding 504 527 514 528 Effect of dilutive securities 4 3 4 3 Weighted average common shares, including dilutive effect 508 530 518 531 Diluted earnings per share $ 1.77 $ 0.27 $ 2.73 $ 1.78 The following table summarizes the shares that were anti-dilutive and, therefore, were excluded from the diluted share calculation. Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Shares issued under stock-based compensation plans 1 3 1 3 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity | Equity On May 31, 2017, our board of directors approved an additional $3.0 billion share repurchase authorization. This authorization is in addition to its previous authorization, both of which have no expiration date. As of September 30, 2017 , we had $3.94 billion of remaining share repurchase authorization from our board of directors. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some of which may be affected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be discontinued at any time. Total share repurchases were as follows for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended Nine Months Ended (In millions, except per share data) 2017 2016 2017 2016 Number of shares repurchased 8 1 31 4 Cash paid for shares repurchased $ 452 $ 51 $ 1,622 $ 177 Effective average cost per delivered share $ 53.85 $ 42.76 $ 52.16 $ 41.14 As of September 30, 2017 , we had agreements to acquire 985,400 common shares for $55 million , which were settled in early October 2017. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In the first quarter of 2017, we revised our segment reporting in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. The operating results for these assets are now reported in our Midstream segment. Previously, they were reported as part of our Refining & Marketing segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses and, therefore, there are no financial results from which to recast segment results. We have three reportable segments: Refining & Marketing; Speedway; 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 at our seven refineries in the Gulf Coast and Midwest regions of the United States, purchases refined products and ethanol for resale and distributes refined products through various means, including pipeline and marine transportation, terminal and storage services provided by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to our Speedway segment and to independent entrepreneurs who operate Marathon ® retail outlets. • Speedway – sells transportation fuels and convenience merchandise in retail markets in the Midwest, East Coast and Southeast regions of the United States. • Midstream – includes the operations of MPLX and certain other related operations. The Midstream segment gathers, processes and transports natural gas; gathers, transports, fractionates, stores and markets NGLs; and transports and stores crude oil and refined products principally for the Refining & Marketing segment. Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX, and costs related to certain non-operating assets are not allocated to the reportable segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments. (In millions) Refining & Marketing Speedway Midstream Total Three Months Ended September 30, 2017 Revenues: Third party $ 13,573 $ 4,895 $ 585 $ 19,053 Intersegment (a) 2,904 1 369 3,274 Related party 155 2 — 157 Segment revenues $ 16,632 $ 4,898 $ 954 $ 22,484 Segment income from operations (b) $ 1,097 $ 209 $ 355 $ 1,661 Income from equity method investments 6 20 57 83 Depreciation and amortization (c) 266 68 169 503 Capital expenditures and investments (d) 198 108 453 759 (In millions) Refining & Marketing Speedway Midstream Total Three Months Ended September 30, 2016 Revenues: Third party $ 11,284 $ 4,848 $ 484 $ 16,616 Intersegment (a) 2,798 1 346 3,145 Related party 2 — — 2 Segment revenues $ 14,084 $ 4,849 $ 830 $ 19,763 Segment income from operations (b) $ 252 $ 209 $ 310 $ 771 Income from equity method investments (c) 8 — 51 59 Depreciation and amortization (c) 267 71 155 493 Capital expenditures and investments (d) 251 71 410 732 (In millions) Refining & Marketing Speedway Midstream Total Nine Months Ended September 30, 2017 Revenues: Third party $ 37,485 $ 14,070 $ 1,665 $ 53,220 Intersegment (a) 8,302 3 1,076 9,381 Related party 452 6 — 458 Segment revenues $ 46,239 $ 14,079 $ 2,741 $ 63,059 Segment income from operations (b) $ 1,589 $ 583 $ 996 $ 3,168 Income from equity method investments 10 54 139 203 Depreciation and amortization (c) 805 197 528 1,530 Capital expenditures and investments (d)(e) 570 221 2,017 2,808 (In millions) Refining & Marketing Speedway Midstream Total Nine Months Ended September 30, 2016 Revenues: Third party $ 31,192 $ 13,663 $ 1,324 $ 46,179 Intersegment (a) 7,872 2 911 8,785 Related party 5 — — 5 Segment revenues $ 39,069 $ 13,665 $ 2,235 $ 54,969 Segment income from operations (b)(f) $ 1,191 $ 569 $ 752 $ 2,512 Income from equity method investments (c) 10 — 110 120 Depreciation and amortization (c) 801 203 448 1,452 Capital expenditures and investments (d) 756 191 1,179 2,126 (a) Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties. (b) Corporate overhead expenses attributable to MPLX are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. (c) Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below. (d) Capital expenditures include changes in capital accruals, acquisitions (including any goodwill) and investments in affiliates. (e) The Midstream segment includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system for the nine months ended September 30, 2017 . (f) The Refining & Marketing and Speedway segments include inventory LCM benefits of $345 million and $25 million , respectively, for the nine months ended September 30, 2016 . The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Segment income from operations $ 1,661 $ 771 $ 3,168 $ 2,512 Items not allocated to segments: Corporate and other unallocated items (a) (86 ) (65 ) (251 ) (194 ) Pension settlement expenses (1 ) (4 ) (2 ) (7 ) Litigation (b) — — (86 ) — Impairments (c) 2 (267 ) 21 (486 ) Net interest and other financial income (costs) (157 ) (141 ) (465 ) (420 ) Income before income taxes $ 1,419 $ 294 $ 2,385 $ 1,405 (a) Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. (b) See Note 21 for further information on litigation matters. (c) 2017 includes MPC’s share of gains related to the sale of assets remaining from the Sandpiper pipeline project. 2016 relates to impairments of goodwill and equity method investments. The following reconciles segment capital expenditures and investments to total capital expenditures: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Segment capital expenditures and investments $ 759 $ 732 $ 2,808 $ 2,126 Less investments in equity method investees (a) 53 69 730 383 Plus items not allocated to segments: Corporate and Other 19 14 53 59 Capitalized interest 13 15 39 47 Total capital expenditures (b) $ 738 $ 692 $ 2,170 $ 1,849 (a) The nine months ended September 30, 2017 includes an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. The nine months ended September 30, 2016 includes an adjustment of $143 million to the fair value of equity method investments acquired in connection with the MarkWest Merger. (b) Capital expenditures include changes in capital accruals. See Note 17 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. |
Other Items
Other Items | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Items | Other Items Net interest and other financial income (costs) was: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Interest income $ 7 $ 3 $ 16 $ 5 Interest expense (172 ) (153 ) (508 ) (455 ) Interest capitalized 14 15 47 47 Other financial costs (6 ) (6 ) (20 ) (17 ) Net interest and other financial income (costs) $ (157 ) $ (141 ) $ (465 ) $ (420 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The combined federal, state and foreign income tax rate was 29 percent and 26 percent for the three months ended September 30, 2017 and 2016 , respectively, and 30 percent and 34 percent for the nine months ended September 30, 2017 and 2016 , respectively. The effective tax rate for the three and nine months ended September 30, 2017 was less than the U.S. statutory rate of 35 percent primarily due to certain permanent tax differences related to net income attributable to noncontrolling interests, the domestic manufacturing deduction and equity compensation offset by state and local tax expense. The effective tax rate for the three months ended September 30, 2016 varies from the U.S. statutory rate of 35 percent primarily due to the effects of a lower forecasted annual effective tax rate as compared to the forecasted rate used for the first six months of 2016. The effective tax rate for the nine months ended September 30, 2016 is slightly less than the U.S. statutory rate of 35 percent primarily due to certain permanent tax differences related to the net income attributable to noncontrolling interests (including their proportional share of the goodwill impairment charge recorded by MPLX), the domestic manufacturing deduction and state and local tax expense. We are continuously undergoing examination of our income tax returns, which have been completed through the 2007 tax year for state returns and the 2009 tax year for our U.S. federal return. As of September 30, 2017 , we had $19 million of unrecognized tax benefits. Prior to its spin-off on June 30, 2011, Marathon Petroleum Corporation was included in the Marathon Oil Corporation (“Marathon Oil”) federal income tax returns for all applicable years. During the third quarter 2017, Marathon Oil received a notice of Final Partnership Administrative Adjustment (“FPAA”) from the IRS for taxable year 2010, relating to certain partnership transactions. Marathon Oil intends to file a U.S. Tax Court petition disputing these adjustments during the fourth quarter of 2017. We received an FPAA for taxable years 2011-2014 for items resulting from the Marathon Oil IRS dispute discussed above. We intend to file a U.S. Tax Court petition in the fourth quarter of 2017 for tax years 2011-2014 to dispute these corollary adjustments. We continue to believe that the issue in dispute is more likely than not to be fully sustained and therefore, no liability has been accrued for this matter. Pursuant to our tax sharing agreement with Marathon Oil, the unrecognized tax benefits related to pre-spinoff operations for which Marathon Oil was the taxpayer remain the responsibility of Marathon Oil and we have indemnified Marathon Oil accordingly. See Note 21 for indemnification information. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) September 30, December 31, Crude oil and refinery feedstocks $ 2,147 $ 2,208 Refined products 2,706 2,810 Materials and supplies 486 485 Merchandise 154 153 Total $ 5,493 $ 5,656 Inventories are carried at the lower of cost or market value. The cost of inventories of crude oil and refinery feedstocks, refined products and merchandise is determined primarily under the LIFO method. There were no liquidations of LIFO inventories for the nine months ended September 30, 2017 . |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (In millions) September 30, December 31, 2016 (a) Refining & Marketing $ 19,174 $ 18,590 Speedway 5,233 5,078 Midstream 14,489 13,521 Corporate and Other 822 817 Total 39,718 38,006 Less accumulated depreciation 13,682 12,241 Property, plant and equipment, net $ 26,036 $ 25,765 (a) Prior period balances have been recast in connection with the March 1, 2017 contribution of assets to MPLX. See Note 1 for additional information. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Values—Recurring The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables. September 30, 2017 Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Netting and Collateral (a) Net Carrying Value on Balance Sheet (b) Collateral Pledged Not Offset Commodity derivative instruments, assets $ 257 $ — $ — $ (257 ) $ — $ 22 Other assets 3 — — N/A 3 — Total assets at fair value $ 260 $ — $ — $ (257 ) $ 3 $ 22 Commodity derivative instruments, liabilities (c) $ 296 $ — $ 5 $ (296 ) $ 5 $ — Embedded derivatives in commodity contracts (c) — — 52 — 52 — Total liabilities at fair value $ 296 $ — $ 57 $ (296 ) $ 57 $ — December 31, 2016 Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Netting and Collateral (a) Net Carrying Value on Balance Sheet (b) Collateral Pledged Not Offset Commodity derivative instruments, assets $ 688 $ — $ — $ (688 ) $ — $ 126 Other assets 2 — — N/A 2 — Total assets at fair value $ 690 $ — $ — $ (688 ) $ 2 $ 126 Commodity derivative instruments, liabilities $ 712 $ — $ 6 $ (712 ) $ 6 $ — Embedded derivatives in commodity contracts (c) — — 54 — 54 — Contingent consideration, liability (d) — — 130 N/A 130 — Total liabilities at fair value $ 712 $ — $ 190 $ (712 ) $ 190 $ — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2017 , cash collateral of $39 million was netted with the mark-to-market derivative liabilities. As of December 31, 2016 , $24 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. (c) Level 3 includes $15 million and $13 million classified as current at September 30, 2017 and December 31, 2016 , respectively. (d) Includes $130 million classified as current at December 31, 2016 . Commodity derivatives in Level 1 are exchange-traded contracts for crude oil and refined products measured at fair value with a market approach using the close-of-day settlement prices for the market. Commodity derivatives are covered under master netting agreements with an unconditional right to offset. Collateral deposits in futures commission merchant accounts covered by master netting agreements related to Level 1 commodity derivatives are classified as Level 1 in the fair value hierarchy. Level 3 instruments include OTC NGL contracts and embedded derivatives in commodity contracts. The embedded derivative liability relates to a natural gas purchase agreement embedded in a keep‑whole processing agreement. The fair value calculation for these Level 3 instruments used significant unobservable inputs including: (1) NGL prices interpolated and extrapolated due to inactive markets ranging from $0.27 to $1.22 per gallon and (2) the probability of renewal of 50 percent for the first five -year term and 75 percent for the second five -year term of the gas purchase agreement and the related keep-whole processing agreement. For these contracts, increases in forward NGL prices result in a decrease in the fair value of the derivative assets and an increase in the fair value of the derivative liabilities. The forward prices for the individual NGL products generally increase or decrease in a positive correlation with one another. Increases or decreases in forward NGL prices result in an increase or decrease in the fair value of the embedded derivative. An increase in the probability of renewal would result in an increase in the fair value of the related embedded derivative liability. The contingent consideration represents the fair value of the remaining amount we expected to pay to BP related to the earnout provision associated with our 2013 acquisition of BP’s refinery in Texas City, Texas and related logistics and marketing assets. The fair value of the remaining contingent consideration as of December 31, 2016 was estimated using an income approach and was therefore a Level 3 liability. The fair value calculation used significant unobservable inputs including: (1) an estimate of forecasted monthly refinery throughput volumes; (2) an internal and external monthly crack spread forecast; and (3) a range of risk-adjusted discount rates. The fair value of the contingent consideration liability was reassessed each quarter, with changes in fair value recorded in cost of revenues. The balance of $131 million was paid on April 12, 2017. On the consolidated statements of cash flows for the nine months ended September 30, 2017 , $89 million of the contingent earnout payment is included as a financing activity with the remainder included as an operating activity. The following is a reconciliation of the beginning and ending balances recorded for liabilities classified as Level 3 in the fair value hierarchy. Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Beginning balance $ 41 $ 171 $ 190 $ 342 Contingent consideration payment — — (131 ) (200 ) Unrealized and realized losses included in net income 22 6 8 33 Settlements of derivative instruments (6 ) (1 ) (10 ) 1 Ending balance $ 57 $ 176 $ 57 $ 176 The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: Derivative instruments $ 17 $ 4 $ 8 $ 19 Contingent consideration agreement — 2 1 11 Total $ 17 $ 6 $ 9 $ 30 Fair Values – Reported The following table summarizes financial instruments on the basis of their nature, characteristics and risk at September 30, 2017 and December 31, 2016 , excluding the derivative financial instruments and contingent consideration reported above. September 30, 2017 December 31, 2016 (In millions) Fair Value Carrying Value Fair Value Carrying Value Financial assets: Investments $ 25 $ 2 $ 25 $ 2 Other 25 25 21 21 Total financial assets $ 50 $ 27 $ 46 $ 23 Financial liabilities: Long-term debt (a) $ 13,690 $ 12,544 $ 10,892 $ 10,297 Deferred credits and other liabilities 121 107 121 109 Total financial liabilities $ 13,811 $ 12,651 $ 11,013 $ 10,406 (a) Excludes capital leases and debt issuance costs; however, includes amount classified as debt due within one year. Our current assets and liabilities include financial instruments, the most significant of which are trade accounts receivable and payables. We believe the carrying values of our current assets and liabilities approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our investment-grade credit rating and (3) our historical incurrence of and expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. Fair values of our financial assets included in investments and other financial assets and of our financial liabilities included in deferred credits and other liabilities are measured primarily using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value. Other financial assets primarily consist of environmental remediation receivables. Deferred credits and other liabilities primarily consist of a liability resulting from a financing arrangement for the construction of MPLX’s steam methane reformer (“SMR”) at the Javelina gas processing and fractionation complex in Corpus Christi, Texas, insurance liabilities and environmental remediation liabilities. Fair value of fixed-rate long-term debt is measured using a market approach, based upon the average of quotes for our debt from major financial institutions and a third-party valuation service. Because these quotes cannot be independently verified to the market, they are considered Level 3 inputs. Fair value of variable-rate long-term debt approximates the carrying value. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 14 . We do not designate any of our commodity derivative instruments as hedges for accounting purposes. Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs and (6) the purchase of natural gas. The following table presents the gross fair values of derivative instruments, excluding cash collateral, and where they appear on the consolidated balance sheets as of September 30, 2017 and December 31, 2016 : (In millions) September 30, 2017 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 257 $ 296 Other current liabilities (a) — 15 Deferred credits and other liabilities (a) — 42 (In millions) December 31, 2016 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 688 $ 712 Other current liabilities (a) — 13 Deferred credits and other liabilities (a) — 47 (a) Includes embedded derivatives. The tables below summarize open commodity derivative contracts for crude oil and refined products as of September 30, 2017 . Position Total Barrels (In thousands) Crude Oil (a) Exchange-traded Long 33,043 Exchange-traded Short (34,428 ) (a ) 94 percent of the exchange-traded contracts expire in the fourth quarter of 2017 . Position Total Gallons (In thousands) Refined Products (a) Exchange-traded Long 316,764 Exchange-traded Short (227,388 ) OTC Short (33,388 ) (a ) 100 percent of the exchange-traded contracts expire in the fourth quarter of 2017 . The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: Gain (Loss) Gain (Loss) (In millions) Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2017 2016 2017 2016 Sales and other operating revenues $ (10 ) $ (3 ) $ 8 $ (4 ) Cost of revenues 1 (20 ) (30 ) (91 ) Total $ (9 ) $ (23 ) $ (22 ) $ (95 ) |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our outstanding borrowings at September 30, 2017 and December 31, 2016 consisted of the following: (In millions) September 30, December 31, Marathon Petroleum Corporation: Commercial paper $ — $ — 364-day bank revolving credit facility due July 2018 — — Trade receivables securitization facility due July 2019 — — Bank revolving credit facility due 2022 — — Term loan agreement due 2019 — 200 Senior notes, 2.700% due December 2018 600 600 Senior notes, 3.400% due December 2020 650 650 Senior notes, 5.125% due March 2021 1,000 1,000 Senior notes, 3.625%, due September 2024 750 750 Senior notes, 6.500%, due March 2041 1,250 1,250 Senior notes, 4.750%, due September 2044 800 800 Senior notes, 5.850% due December 2045 250 250 Senior notes, 5.000%, due September 2054 400 400 MPLX LP: MPLX term loan facility due 2019 — 250 MPLX bank revolving credit facility due 2022 420 — MPLX senior notes, 5.500%, due February 2023 710 710 MPLX senior notes, 4.500%, due July 2023 989 989 MPLX senior notes, 4.875%, due December 2024 1,149 1,149 MPLX senior notes, 4.000%, due February 2025 500 500 MPLX senior notes, 4.875%, due June 2025 1,189 1,189 MarkWest senior notes, 4.500% - 5.500%, due 2023 - 2025 63 63 MPLX senior notes, 4.125%, due March 2027 1,250 — MPLX senior notes, 5.200%, due March 2047 1,000 — Capital lease obligations due 2017-2028 299 319 Total 13,269 11,069 Unamortized debt issuance costs (61 ) (44 ) Unamortized discount (a) (426 ) (453 ) Amounts due within one year (29 ) (28 ) Total long-term debt due after one year $ 12,753 $ 10,544 (a) Includes $386 million and $420 million of unamortized discount as of September 30, 2017 and December 31, 2016 , respectively, related to the difference between the fair value and the principal amount of assumed MarkWest debt. During the nine months ended September 30, 2017 , we borrowed and repaid $300 million under the commercial paper program. At September 30, 2017 , we had no amounts outstanding under the commercial paper program. At September 30, 2017 , we had no amounts outstanding under our trade receivables securitization facility. MPC Bank Revolving Credit Facilities On July 21, 2017, we entered into credit agreements with a syndicate of lenders to replace MPC’s previous $2.5 billion four -year bank revolving credit facility and $1 billion 364 -day revolving credit facility. The new credit agreements provide for a $2.5 billion five -year bank revolving credit facility that expires in July 2022 and a $1 billion 364 -day bank revolving credit facility that expires in July 2018. The financial covenants and the interest rate terms contained in the new credit agreements are substantially the same as those contained in the previous bank revolving credit facilities. There were no borrowings or letters of credit outstanding under the MPC bank revolving credit facility at September 30, 2017 . MPC Term Loan Agreement On March 31, 2017, we repaid the remaining $200 million outstanding under the MPC term loan agreement with available cash on hand. Under the provisions of the MPC term loan agreement, the loan may be prepaid in whole or in part without premium or penalty. The maturity date of the MPC term loan agreement was September 24, 2019. MPLX Credit Agreement On July 21, 2017, MPLX entered into a credit agreement to replace its previous $2 billion five -year bank revolving credit facility with a $2.25 billion five -year bank revolving credit facility that expires in July 2022. The financial covenants and the interest rate terms contained in the new credit agreement are substantially the same as those contained in the previous bank revolving credit facility. Additionally, on July 19, 2017, MPLX prepaid the entire outstanding principal amount of its $250 million term loan with cash on hand. During the nine months ended September 30, 2017 , MPLX borrowed $420 million under the MPLX bank revolving credit facility, at an average interest rate of 2.7 percent , and made no repayments. At September 30, 2017 , MPLX had $420 million outstanding borrowings and $3 million letters of credit outstanding under the MPLX bank revolving credit facility, resulting in total availability of $1.83 billion . MPLX Senior Notes On February 10, 2017, MPLX completed a public offering of $1.25 billion aggregate principal amount of 4.125% unsecured senior notes due March 2027 and $1.0 billion aggregate principal amount of 5.200% unsecured senior notes due March 2047. The net proceeds, which were approximately $2.22 billion after deducting underwriting discounts, were used by MPLX to fund the $1.5 billion cash portion of the consideration paid to MPC for the dropdown of assets on March 1, 2017, as well as for general partnership purposes. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, commencing on September 1, 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Nine Months Ended (In millions) 2017 2016 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 446 $ 400 Net income taxes paid to (refunded from) taxing authorities 383 28 Non-cash investing and financing activities: Contribution of assets to joint venture (a) 337 — (a) MarkWest’s contribution of assets to Sherwood Midstream and Sherwood Midstream Holdings. See Note 4 . The consolidated statements of cash flows exclude changes to the consolidated balance sheets that did not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures: Nine Months Ended (In millions) 2017 2016 Additions to property, plant and equipment per consolidated statements of cash flows $ 1,928 $ 2,147 Asset retirement expenditures 1 4 Decrease in capital accruals (9 ) (169 ) Total capital expenditures before acquisitions 1,920 1,982 Acquisitions (a) 250 (133 ) Total capital expenditures $ 2,170 $ 1,849 (a) The nine months ended September 30, 2017 reflects primarily the acquisition of the Ozark pipeline. The nine months ended September 30, 2016 reflects adjustments to the fair values of the property, plant and equipment, intangibles and goodwill acquired in connection with the MarkWest Merger. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table shows the changes in accumulated other comprehensive loss by component. Amounts in parentheses indicate debits. (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2015 $ (255 ) $ (70 ) $ 4 $ 3 $ (318 ) Other comprehensive income (loss) before reclassifications (8 ) 1 — — (7 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (35 ) (2 ) — — (37 ) – actuarial loss (a) 28 1 — — 29 – settlement loss (a) 7 — — — 7 Other (b) — — — (1 ) (1 ) Tax effect — — — — — Other comprehensive income (loss) (8 ) — — (1 ) (9 ) Balance as of September 30, 2016 $ (263 ) $ (70 ) $ 4 $ 2 $ (327 ) (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2016 $ (233 ) $ (7 ) $ 4 $ 2 $ (234 ) Other comprehensive income (loss) before reclassifications (2 ) — — — (2 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (29 ) (2 ) — — (31 ) – actuarial loss/(gain) (a) 27 (1 ) — — 26 – settlement loss (a) 2 — — — 2 Other (b) — — — (2 ) (2 ) Tax effect — 1 — 1 2 Other comprehensive income (loss) (2 ) (2 ) — (1 ) (5 ) Balance as of September 30, 2017 $ (235 ) $ (9 ) $ 4 $ 1 $ (239 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 19 . (b) This amount was reclassified out of accumulated other comprehensive loss and is included in selling, general and administrative on the consolidated statements of income. |
Defined Benefit Pension and Oth
Defined Benefit Pension and Other Postretirement Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension and Other Postretirement Plans | Defined Benefit Pension and Other Postretirement Plans The following summarizes the components of net periodic benefit costs: Three Months Ended September 30, Pension Benefits Other Benefits (In millions) 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 33 $ 29 $ 6 $ 8 Interest cost 19 18 8 9 Expected return on plan assets (25 ) (24 ) — — Amortization – prior service credit (10 ) (12 ) — (1 ) – actuarial loss 9 10 — — – settlement loss 1 4 — — Net periodic benefit cost $ 27 $ 25 $ 14 $ 16 Nine Months Ended September 30, Pension Benefits Other Benefits (In millions) 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 99 $ 86 $ 19 $ 24 Interest cost 56 55 23 26 Expected return on plan assets (75 ) (73 ) — — Amortization – prior service credit (29 ) (35 ) (2 ) (2 ) – actuarial loss/(gain) 27 28 (1 ) 1 – settlement loss 2 7 — — Net periodic benefit cost $ 80 $ 68 $ 39 $ 49 During the nine months ended September 30, 2017 , we chose to make a $120 million voluntary contribution to our funded pension plans. Benefit payments related to unfunded pension and other postretirement benefit plans were $7 million and $23 million , respectively, during the nine months ended September 30, 2017 . |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Stock Option Awards The following table presents a summary of our stock option award activity for the nine months ended September 30, 2017 : Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2016 9,531,440 $ 28.93 Granted 1,214,112 50.57 Exercised (1,356,217 ) 21.89 Forfeited, canceled or expired (78,386 ) 41.97 Outstanding at September 30, 2017 9,310,949 32.66 The grant date fair value of stock option awards granted during the nine months ended September 30, 2017 was $13.42 per share. The fair value of stock options granted to our employees is estimated on the date of the grant using the Black Scholes option-pricing model, which employs various assumptions. Restricted Stock Awards The following table presents a summary of restricted stock award activity for the nine months ended September 30, 2017 : Shares of Restricted Stock (“RS”) Restricted Stock Units (“RSU”) Number of Shares Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 1,250,343 $ 41.51 361,117 $ 28.26 Granted 574,602 50.20 28,573 51.94 RS’s Vested/RSU’s Issued (522,454 ) 42.48 (79,635 ) 24.54 Forfeited (83,806 ) 44.29 (13,750 ) 50.20 Outstanding at September 30, 2017 1,218,685 45.00 296,305 30.52 Performance Unit Awards The following table presents a summary of the activity for performance unit awards to be settled in shares for the nine months ended September 30, 2017 : Number of Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 6,255,178 $ 0.78 Granted 2,584,750 0.92 Exercised (1,854,728 ) 0.85 Canceled (99,658 ) 0.78 Outstanding at September 30, 2017 6,885,542 0.81 The performance unit awards granted during the nine months ended September 30, 2017 have a grant date fair value of $0.92 per unit, as calculated using a Monte Carlo valuation model. MPLX Awards During the nine months ended September 30, 2017 , MPLX granted equity-based compensation awards under the MPLX LP 2012 Incentive Compensation Plan. The compensation expense for these awards is not material to our consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. Some of these matters are discussed below. For matters for which we have not recorded a liability, we are unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings, discovery or court proceedings. However, the ultimate resolution of some of these contingencies could, individually or in the aggregate, be material. Environmental matters —We are subject to federal, state, local and foreign laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites and certain other locations including presently or formerly owned or operated retail marketing sites. Penalties may be imposed for noncompliance. At September 30, 2017 and December 31, 2016 , accrued liabilities for remediation totaled $117 million and $132 million , respectively. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties if any that may be imposed. Receivables for recoverable costs from certain states, under programs to assist companies in clean-up efforts related to underground storage tanks at presently or formerly owned or operated retail marketing sites, were $45 million and $58 million at September 30, 2017 and December 31, 2016 , respectively. We are involved in a number of environmental enforcement matters arising in the ordinary course of business. While the outcome and impact on us cannot be predicted with certainty, management believes the resolution of these environmental matters will not, individually or collectively, have a material adverse effect on our consolidated results of operations, financial position or cash flows. MarkWest Environmental Proceeding – In July 2015, representatives from the EPA and the United States Department of Justice conducted a raid on a pipeline launcher/receiver site of MarkWest Liberty Midstream & Resources, L.L.C., a wholly-owned subsidiary of MPLX (“MarkWest Liberty Midstream”), utilized for pipeline maintenance operations in Washington County, Pennsylvania pursuant to a search warrant issued by a magistrate of the United States District Court for the Western District of Pennsylvania. As part of this initiative, the U.S. Attorney’s Office for the Western District of Pennsylvania, with the assistance of EPA’s Criminal Investigation Division proceeded with an investigation of MarkWest’s launcher/receiver, pipeline and compressor station operations. In response to the investigation, MarkWest initiated independent studies which demonstrated that there was no risk to worker safety and no threat of public harm associated with MarkWest Liberty Midstream’s launcher/receiver operations. These findings were supported by a subsequent inspection and review by the Occupational Safety and Health Administration. After providing these studies, and other substantial documentation related to MarkWest Liberty Midstream's pipeline and compressor stations, and arranging site visits and conducting several meetings with the government’s representatives, on September 13, 2016, the U.S. Attorney’s Office for the Western District of Pennsylvania rendered a declination decision, dropping its criminal investigation and declining to pursue charges in this matter. MarkWest Liberty Midstream continues to discuss with the EPA and the State of Pennsylvania civil enforcement allegations associated with permitting or other related regulatory obligations for its launcher/receiver and compressor station facilities in the region. In connection with these discussions, MarkWest Liberty Midstream received an initial proposal from the EPA to settle all civil claims associated with this matter for the combination of a proposed cash penalty of approximately $2.4 million and proposed supplemental environmental projects with an estimated cost of approximately $3.6 million . MarkWest Liberty Midstream has submitted a response asserting that this action involves novel issues surrounding primarily minor source emissions from facilities that the agencies themselves considered de minimis and were not the subject of regulation and consequently that the settlement proposal is excessive. In connection with these negotiations, MarkWest Liberty Midstream has received a revised settlement proposal from the EPA which proposes to lower the proposed cash penalty to approximately $1.2 million and the estimated cost of proposed supplemental environmental projects to an estimated cost of approximately $1.6 million . MarkWest Liberty Midstream will continue to negotiate with the EPA regarding the amount and scope of the proposed settlement. Other Lawsuits —On August 1, 2017, we entered into binding settlement agreements with the plaintiffs and co-defendants to settle four lawsuits brought forth by the plaintiffs alleging personal injuries from a fire that occurred at our Galveston Bay refinery on January 11, 2016. The other co-defendants in this litigation were contractors that were engaged by us to provide services at our Galveston Bay refinery. We recorded a liability for our losses under the settlement agreements which resulted in a charge of $86 million in the second quarter of 2017. We are vigorously pursuing recovery of such losses, as well as defense costs, through indemnification from a significant contractor who is not party to the settlement agreements. In May 2015, the Kentucky attorney general filed a lawsuit against our wholly-owned subsidiary, MPC LP in the United States District Court for the Western District of Kentucky asserting claims under federal and state antitrust statutes, the Kentucky Consumer Protection Act, and state common law. The complaint, as amended in July 2015, alleges that MPC LP used deed restrictions, supply agreements with customers and exchange agreements with competitors to unreasonably restrain trade in areas within Kentucky and seeks declaratory relief, unspecified damages, civil penalties, restitution and disgorgement of profits. At this early stage, the ultimate outcome of this litigation remains uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined, and we are unable to estimate a reasonably possible loss (or range of loss) for this matter. We intend to vigorously defend ourselves in this matter. In May 2007, the Kentucky attorney general filed a lawsuit against us and Marathon Oil in state court in Franklin County, Kentucky for alleged violations of Kentucky’s emergency pricing and consumer protection laws following Hurricanes Katrina and Rita in 2005. The lawsuit alleges that we overcharged customers by $89 million during September and October 2005 . The complaint seeks disgorgement of these sums, as well as penalties, under Kentucky’s emergency pricing and consumer protection laws. We are vigorously defending this litigation. We believe that this is the first lawsuit for damages and injunctive relief under the Kentucky emergency pricing laws to progress this far and it contains many novel issues. In May 2011, the Kentucky attorney general amended his complaint to include a request for immediate injunctive relief as well as unspecified damages and penalties related to our wholesale gasoline pricing in April and May 2011 under statewide price controls that were activated by the Kentucky governor on April 26, 2011 and which have since expired. The court denied the attorney general’s request for immediate injunctive relief, and the remainder of the 2011 claims likely will be resolved along with those dating from 2005. If the lawsuit is resolved unfavorably in its entirety, it could materially impact our consolidated results of operations, financial position or cash flows. However, management does not believe the ultimate resolution of this litigation will have a material adverse effect. We are also a party to a number of other lawsuits and other proceedings arising in the ordinary course of business. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe that the resolution of these other lawsuits and proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Guarantees— We have provided certain guarantees, direct and indirect, of the indebtedness of other companies. Under the terms of most of these guarantee arrangements, we would be required to perform should the guaranteed party fail to fulfill its obligations under the specified arrangements. In addition to these financial guarantees, we also have various performance guarantees related to specific agreements. Guarantees related to indebtedness of equity method investees —MPC and MPLX hold interests in an offshore oil port, LOOP, and MPLX holds an interest in a crude oil pipeline system, LOCAP. Both LOOP and LOCAP have secured various project financings with throughput and deficiency agreements. Under the agreements, MPC, as a shipper, is required to advance funds if the investees are unable to service their debt. Any such advances are considered prepayments of future transportation charges. The duration of the agreements vary but tend to follow the terms of the underlying debt, which extend through 2037 . Our maximum potential undiscounted payments under these agreements for the debt principal totaled $160 million as of September 30, 2017 . We hold an interest in a refined products pipeline through our investment in Centennial, and have guaranteed our portion of the payment of Centennial’s principal, interest and prepayment costs, if applicable, under a Master Shelf Agreement, which is scheduled to expire in 2024 . The guarantee arose in order for Centennial to obtain adequate financing. Our maximum potential undiscounted payments under this agreement for debt principal totaled $22 million as of September 30, 2017 . In connection with our 50 percent indirect interest in Crowley Ocean Partners, we have agreed to conditionally guarantee our portion of the obligations of the joint venture and its subsidiaries under a senior secured term loan agreement. The term loan agreement provides for loans of up to $325 million to finance the acquisition of four product tankers. MPC’s liability under the guarantee for each vessel is conditioned upon the occurrence of certain events, including if we cease to maintain an investment grade credit rating or the charter for the relevant product tanker ceases to be in effect and is not replaced by a charter with an investment grade company on certain defined commercial terms. As of September 30, 2017 , our maximum potential undiscounted payments under this agreement for debt principal totaled $163 million . In connection with our 50 percent indirect interest in Crowley Blue Water Partners, we have agreed to provide a conditional guarantee of up to 50 percent of its outstanding debt balance in the event there is no charter agreement in place with an investment grade customer for the entity’s three vessels as well as other financial support in certain circumstances. The maximum exposure under these arrangements is 50 percent of the amount of the debt, which was $139 million as of September 30, 2017 . Marathon Oil indemnifications— In conjunction with our spinoff from Marathon Oil, we have entered into arrangements with Marathon Oil providing indemnities and guarantees with recorded values of $2 million as of September 30, 2017 , which consist of unrecognized tax benefits related to MPC, its consolidated subsidiaries and the refining, marketing and transportation business operations prior to our spinoff which are not already reflected in the unrecognized tax benefits described in Note 11 , and other contingent liabilities Marathon Oil may incur related to taxes. Furthermore, the separation and distribution agreement and other agreements with Marathon Oil to effect our spinoff provide for cross-indemnities between Marathon Oil and us. In general, Marathon Oil is required to indemnify us for any liabilities relating to Marathon Oil’s historical oil and gas exploration and production operations, oil sands mining operations and integrated gas operations, and we are required to indemnify Marathon Oil for any liabilities relating to Marathon Oil’s historical refining, marketing and transportation operations. The terms of these indemnifications are indefinite and the amounts are not capped. Other guarantees —We have entered into other guarantees with maximum potential undiscounted payments totaling $93 million as of September 30, 2017 , which primarily consist of a commitment to contribute cash to an equity method investee for certain catastrophic events, up to $50 million per event, in lieu of procuring insurance coverage, a commitment to fund a share of the bonds issued by a government entity for construction of public utilities in the event that other industrial users of the facility default on their utility payments and leases of assets containing general lease indemnities and guaranteed residual values. General guarantees associated with dispositions – Over the years, we have sold various assets in the normal course of our business. Certain of the related agreements contain performance and general guarantees, including guarantees regarding inaccuracies in representations, warranties, covenants and agreements, and environmental and general indemnifications that require us to perform upon the occurrence of a triggering event or condition. These guarantees and indemnifications are part of the normal course of selling assets. We are typically not able to calculate the maximum potential amount of future payments that could be made under such contractual provisions because of the variability inherent in the guarantees and indemnities. Most often, the nature of the guarantees and indemnities is such that there is no appropriate method for quantifying the exposure because the underlying triggering event has little or no past experience upon which a reasonable prediction of the outcome can be based. Contractual commitments and contingencies— At September 30, 2017 , our contractual commitments to acquire property, plant and equipment and advance funds to equity method investees totaled $694 million . Certain natural gas processing and gathering arrangements require us to construct natural gas processing plants, natural gas gathering pipelines and NGL pipelines and contain certain fees and charges if specified construction milestones are not achieved for reasons other than force majeure. In certain cases, certain producer customers may have the right to cancel the processing arrangements with us if there are significant delays that are not due to force majeure. As of September 30, 2017 , management does not believe there are any indications that we will not be able to meet the construction milestones, that force majeure does not apply, or that such fees and charges will otherwise be triggered. |
Supplementary Statistics
Supplementary Statistics | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Supplementary Statistics | Supplementary Statistics (Unaudited) Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Income from Operations by segment Refining & Marketing (a)(b) $ 1,097 $ 252 $ 1,589 $ 1,191 Speedway (b) 209 209 583 569 Midstream (a)(c) 355 310 996 752 Items not allocated to segments: Corporate and other unallocated items (a)(c) (86 ) (65 ) (251 ) (194 ) Pension settlement expenses (1 ) (4 ) (2 ) (7 ) Litigation — — (86 ) — Impairments (d) 2 (267 ) 21 (486 ) Income from operations $ 1,576 $ 435 $ 2,850 $ 1,825 Capital Expenditures and Investments (e) Refining & Marketing $ 198 $ 251 $ 570 $ 756 Speedway 108 71 221 191 Midstream (f) 453 410 2,017 1,179 Corporate and Other (g) 32 29 92 106 Total $ 791 $ 761 $ 2,900 $ 2,232 (a) We revised our operating segment presentation in the first quarter of 2017 in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. The operating results for these assets, which were previously included in the Refining & Marketing segment, are now included in the Midstream segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses and, therefore, there are no financial results from which to recast segment results. (b) The Refining & Marketing and Speedway segments include inventory LCM benefits of $345 million and $25 million , respectively, for the nine months ended September 30, 2016 . (c) Corporate overhead expenses attributable to MPLX are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. (d) 2017 includes MPC’s share of gains related to the sale of assets remaining from the Sandpiper pipeline project. 2016 relates to impairments of goodwill and equity method investments. (e) Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. (f) The nine months ended September 30, 2017 includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. (g) Includes capitalized interest of $13 million and $15 million for the three months ended September 30, 2017 and 2016 , respectively, and $39 million and $47 million for the nine months ended September 30, 2017 and 2016 , respectively. Supplementary Statistics (Unaudited) Three Months Ended Nine Months Ended 2017 2016 2017 2016 MPC Consolidated Refined Product Sales Volumes (mbpd) (a) 2,357 2,316 2,272 2,274 Refining & Marketing Operating Statistics Refining & Marketing refined product sales volume (mbpd) (b) 2,357 2,307 2,263 2,265 Refining & Marketing gross margin (dollars per barrel) (c)(d) $ 14.14 $ 10.67 $ 12.42 $ 11.11 Crude oil capacity utilization percent (e) 102 100 96 95 Refinery throughputs (mbpd): (f) Crude oil refined 1,845 1,791 1,741 1,708 Other charge and blendstocks 172 135 176 156 Total 2,017 1,926 1,917 1,864 Sour crude oil throughput percent 57 59 61 60 WTI-priced crude oil throughput percent 23 20 20 20 Refined product yields (mbpd): (f) Gasoline 939 907 910 908 Distillates 673 647 627 616 Propane 38 38 35 35 Feedstocks and special products 298 253 285 245 Heavy fuel oil 45 43 36 36 Asphalt 67 70 64 58 Total 2,060 1,958 1,957 1,898 Refinery direct operating costs (dollars per barrel): (g) Planned turnaround and major maintenance $ 1.20 $ 1.62 $ 1.69 $ 1.72 Depreciation and amortization 1.34 1.42 1.44 1.46 Other manufacturing (h) 3.83 4.01 4.10 4.03 Total $ 6.37 $ 7.05 $ 7.23 $ 7.21 Refining & Marketing Operating Statistics By Region - Gulf Coast Refinery throughputs (mbpd): (i) Crude oil refined 1,123 1,073 1,041 1,057 Other charge and blendstocks 217 185 219 199 Total 1,340 1,258 1,260 1,256 Sour crude oil throughput percent 69 72 75 73 WTI-priced crude oil throughput percent 14 8 10 7 Refined product yields (mbpd): (i) Gasoline 538 511 525 530 Distillates 438 411 393 407 Propane 25 27 25 26 Feedstocks and special products 326 289 310 283 Heavy fuel oil 31 30 24 24 Asphalt 19 17 17 15 Total 1,377 1,285 1,294 1,285 Refinery direct operating costs (dollars per barrel): (g) Planned turnaround and major maintenance $ 0.90 $ 2.05 $ 1.86 $ 1.87 Depreciation and amortization 1.05 1.14 1.15 1.13 Other manufacturing (h) 3.52 3.70 3.81 3.62 Total $ 5.47 $ 6.89 $ 6.82 $ 6.62 Supplementary Statistics (Unaudited) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Refining & Marketing Operating Statistics By Region – Midwest Refinery throughputs (mbpd): (i) Crude oil refined 722 718 700 651 Other charge and blendstocks 35 39 31 37 Total 757 757 731 688 Sour crude oil throughput percent 38 39 41 39 WTI-priced crude oil throughput percent 38 39 34 41 Refined product yields (mbpd): (i) Gasoline 401 396 385 378 Distillates 235 236 234 209 Propane 14 13 11 11 Feedstocks and special products 50 51 47 40 Heavy fuel oil 15 13 13 12 Asphalt 48 53 47 43 Total 763 762 737 693 Refinery direct operating costs (dollars per barrel): (g) Planned turnaround and major maintenance $ 1.60 $ 0.72 $ 1.22 $ 1.26 Depreciation and amortization 1.72 1.72 1.80 1.90 Other manufacturing (h) 3.96 4.04 4.19 4.29 Total $ 7.28 $ 6.48 $ 7.21 $ 7.45 Speedway Operating Statistics (j) Convenience stores at period-end 2,734 2,773 Gasoline and distillate sales (millions of gallons) 1,464 1,575 4,332 4,605 Gasoline and distillate gross margin (dollars per gallon) (k) $ 0.1772 $ 0.1773 $ 0.1727 $ 0.1668 Merchandise sales (in millions) $ 1,295 $ 1,338 $ 3,693 $ 3,777 Merchandise gross margin (in millions) $ 374 $ 386 $ 1,065 $ 1,085 Merchandise gross margin percent 28.9 % 28.9 % 28.8 % 28.7 % Same store gasoline sales volume (period over period) (3.1 %) (0.6 %) (1.6 %) 0.2 % Same store merchandise sales (period over period) (l) 0.3 % 4.0 % 1.5 % 3.0 % Midstream Operating Statistics Crude oil and refined product pipeline throughputs (mbpd) (m) 3,562 3,113 3,299 2,953 Terminal throughput (mbpd) (n) 1,496 1,517 1,470 1,510 Gathering system throughput (MMcf/d) (o) 3,729 3,306 3,415 3,313 Natural gas processed (MMcf/d) (o) 6,581 5,906 6,336 5,691 C2 (ethane) + NGLs (natural gas liquids) fractionated (mbpd) (o) 397 348 384 330 (a) Total average daily volumes of refined product sales to wholesale, branded and retail customers. (b) Includes intersegment sales. (c) Sales revenue less cost of refinery inputs and purchased products, divided by total refinery throughputs. (d) Excludes LCM inventory valuation adjustments. Comparable prior period information for gross margin has been recast in connection with the contribution of certain pipeline assets to MPLX on March 1, 2017. (e) Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. (f) Excludes inter-refinery volumes of 80 mbpd and 89 mbpd for the three months ended September 30, 2017 and 2016 , respectively, and 74 mbpd and 80 mbpd for the nine months ended September 30, 2017 and 2016 , respectively. (g) Per barrel of total refinery throughputs. (h) Includes utilities, labor, routine maintenance and other operating costs. (i) Includes inter-refinery transfer volumes. (j) Third quarter and year-to-date 2017 operating statistics do not reflect any information for the 41 travel centers contributed to PFJ Southeast, whereas they are reflected in the third quarter and year-to-date 2016 operating statistics. (k) Excludes LCM inventory valuation adjustments. The price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees, divided by gasoline and distillate sales volume. (l) Excludes cigarettes. (m) Includes common-carrier pipelines and private pipelines contributed to MPLX, excluding equity method investments. (n) Includes the results of the terminal assets contributed to MPLX from the date the assets became a business, April 1, 2016. (o) Includes amounts related to unconsolidated equity method investments on a 100 percent basis. |
Description of the Business a34
Description of the Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements. |
Inventories | Inventories are carried at the lower of cost or market value. The cost of inventories of crude oil and refinery feedstocks, refined products and merchandise is determined primarily under the LIFO method. |
Derivative instruments | Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs and (6) the purchase of natural gas. |
Stock-based compensation arrangements | The fair value of stock options granted to our employees is estimated on the date of the grant using the Black Scholes option-pricing model, which employs various assumptions. |
MPLX LP (Tables)
MPLX LP (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | Changes in MPC’s equity and the offsetting changes to noncontrolling interest resulting from changes in MPC’s and the noncontrolling interest’s ownership interests in MPLX were as follows: Nine Months Ended (In millions) 2017 2016 Transfers (to) from noncontrolling interest Increase (decrease) in MPC's additional paid in capital for the issuance of MPLX LP common units to the public $ 25 $ (43 ) Increase in MPC's additional paid in capital for the issuance of MPLX LP common units and general partner units to MPC 113 — Net transfers (to) from noncontrolling interests 138 (43 ) Tax impact (26 ) (70 ) Change in MPC's additional paid-in capital, net of tax $ 112 $ (113 ) |
Acquisitions and Investments (T
Acquisitions and Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The amounts of revenue and income from operations associated with the acquisition included in our consolidated statements of income, since the March 1, 2017 acquisition date, are as follows: Three Months Ended September 30, Seven Months Ended September 30, (In millions) 2017 2017 Sales and other operating revenues (including consumer excise taxes) $ 19 $ 45 Income from operations 6 17 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Sales to Related Parties | Sales to related parties were as follows: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 PFJ Southeast $ 155 $ — $ 451 $ — Other equity method investees 2 2 7 5 Total $ 157 $ 2 $ 458 $ 5 |
Other Income From Related Parties | Other income from related parties, which is included in “Other income” on the accompanying consolidated statements of income, were as follows: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 MarkWest Utica EMG $ 5 $ 5 $ 13 $ 12 Ohio Gathering 4 5 12 12 Other equity method investees 4 2 14 7 Total $ 13 $ 12 $ 39 $ 31 |
Purchases From Related Parties | Purchases from related parties were as follows: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Crowley Blue Water Partners $ 16 $ 16 $ 44 $ 22 Crowley Ocean Partners 20 15 59 32 Explorer 7 4 7 12 Illinois Extension Pipeline 26 27 75 82 LOCAP 6 6 17 18 LOOP 14 14 53 42 TAAE 22 9 53 29 TACE 9 10 34 39 TAME 20 23 58 67 Other equity method investees 8 4 20 16 Total $ 148 $ 128 $ 420 $ 359 |
Receivables From Related Parties | Receivables from related parties, which are included in “Receivables, less allowance for doubtful accounts” on the accompanying consolidated balance sheets, were as follows: (In millions) September 30, December 31, MarkWest Utica EMG $ 2 $ 2 Ohio Gathering 2 2 PFJ Southeast 32 40 Other equity method investees 4 1 Total $ 40 $ 45 |
Payables To Related Parties | Payables to related parties, which are included in “Accounts payable” on the accompanying consolidated balance sheets, were as follows: (In millions) September 30, December 31, Illinois Extension Pipeline $ 9 $ 9 LOCAP 2 2 LOOP 5 6 MarkWest Utica EMG 30 24 TAAE 2 2 TACE 1 4 TAME 2 4 Other equity method investees 13 2 Total $ 64 $ 53 |
Income per Common Share (Tables
Income per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Common Share | MPC grants certain incentive compensation awards to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method. Three Months Ended Nine Months Ended (In millions, except per share data) 2017 2016 2017 2016 Basic earnings per share: Allocation of earnings: Net income attributable to MPC $ 903 $ 145 $ 1,416 $ 947 Income allocated to participating securities — — 1 1 Income available to common stockholders – basic $ 903 $ 145 $ 1,415 $ 946 Weighted average common shares outstanding 504 527 514 528 Basic earnings per share $ 1.79 $ 0.28 $ 2.75 $ 1.79 Diluted earnings per share: Allocation of earnings: Net income attributable to MPC $ 903 $ 145 $ 1,416 $ 947 Income allocated to participating securities — — 1 1 Income available to common stockholders – diluted $ 903 $ 145 $ 1,415 $ 946 Weighted average common shares outstanding 504 527 514 528 Effect of dilutive securities 4 3 4 3 Weighted average common shares, including dilutive effect 508 530 518 531 Diluted earnings per share $ 1.77 $ 0.27 $ 2.73 $ 1.78 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the shares that were anti-dilutive and, therefore, were excluded from the diluted share calculation. Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Shares issued under stock-based compensation plans 1 3 1 3 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Share Repurchases | Total share repurchases were as follows for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended Nine Months Ended (In millions, except per share data) 2017 2016 2017 2016 Number of shares repurchased 8 1 31 4 Cash paid for shares repurchased $ 452 $ 51 $ 1,622 $ 177 Effective average cost per delivered share $ 53.85 $ 42.76 $ 52.16 $ 41.14 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Income From Operations Attributable To Operating Segments | Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX, and costs related to certain non-operating assets are not allocated to the reportable segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments. (In millions) Refining & Marketing Speedway Midstream Total Three Months Ended September 30, 2017 Revenues: Third party $ 13,573 $ 4,895 $ 585 $ 19,053 Intersegment (a) 2,904 1 369 3,274 Related party 155 2 — 157 Segment revenues $ 16,632 $ 4,898 $ 954 $ 22,484 Segment income from operations (b) $ 1,097 $ 209 $ 355 $ 1,661 Income from equity method investments 6 20 57 83 Depreciation and amortization (c) 266 68 169 503 Capital expenditures and investments (d) 198 108 453 759 (In millions) Refining & Marketing Speedway Midstream Total Three Months Ended September 30, 2016 Revenues: Third party $ 11,284 $ 4,848 $ 484 $ 16,616 Intersegment (a) 2,798 1 346 3,145 Related party 2 — — 2 Segment revenues $ 14,084 $ 4,849 $ 830 $ 19,763 Segment income from operations (b) $ 252 $ 209 $ 310 $ 771 Income from equity method investments (c) 8 — 51 59 Depreciation and amortization (c) 267 71 155 493 Capital expenditures and investments (d) 251 71 410 732 (In millions) Refining & Marketing Speedway Midstream Total Nine Months Ended September 30, 2017 Revenues: Third party $ 37,485 $ 14,070 $ 1,665 $ 53,220 Intersegment (a) 8,302 3 1,076 9,381 Related party 452 6 — 458 Segment revenues $ 46,239 $ 14,079 $ 2,741 $ 63,059 Segment income from operations (b) $ 1,589 $ 583 $ 996 $ 3,168 Income from equity method investments 10 54 139 203 Depreciation and amortization (c) 805 197 528 1,530 Capital expenditures and investments (d)(e) 570 221 2,017 2,808 (In millions) Refining & Marketing Speedway Midstream Total Nine Months Ended September 30, 2016 Revenues: Third party $ 31,192 $ 13,663 $ 1,324 $ 46,179 Intersegment (a) 7,872 2 911 8,785 Related party 5 — — 5 Segment revenues $ 39,069 $ 13,665 $ 2,235 $ 54,969 Segment income from operations (b)(f) $ 1,191 $ 569 $ 752 $ 2,512 Income from equity method investments (c) 10 — 110 120 Depreciation and amortization (c) 801 203 448 1,452 Capital expenditures and investments (d) 756 191 1,179 2,126 (a) Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties. (b) Corporate overhead expenses attributable to MPLX are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. (c) Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below. (d) Capital expenditures include changes in capital accruals, acquisitions (including any goodwill) and investments in affiliates. (e) The Midstream segment includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system for the nine months ended September 30, 2017 . (f) The Refining & Marketing and Speedway segments include inventory LCM benefits of $345 million and $25 million , respectively, for the nine months ended September 30, 2016 . |
Reconciliation Of Segment Income From Operations To Income Before Income Taxes | The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Segment income from operations $ 1,661 $ 771 $ 3,168 $ 2,512 Items not allocated to segments: Corporate and other unallocated items (a) (86 ) (65 ) (251 ) (194 ) Pension settlement expenses (1 ) (4 ) (2 ) (7 ) Litigation (b) — — (86 ) — Impairments (c) 2 (267 ) 21 (486 ) Net interest and other financial income (costs) (157 ) (141 ) (465 ) (420 ) Income before income taxes $ 1,419 $ 294 $ 2,385 $ 1,405 (a) Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. (b) See Note 21 for further information on litigation matters. (c) 2017 includes MPC’s share of gains related to the sale of assets remaining from the Sandpiper pipeline project. 2016 relates to impairments of goodwill and equity method investments. |
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures | The following reconciles segment capital expenditures and investments to total capital expenditures: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Segment capital expenditures and investments $ 759 $ 732 $ 2,808 $ 2,126 Less investments in equity method investees (a) 53 69 730 383 Plus items not allocated to segments: Corporate and Other 19 14 53 59 Capitalized interest 13 15 39 47 Total capital expenditures (b) $ 738 $ 692 $ 2,170 $ 1,849 (a) The nine months ended September 30, 2017 includes an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. The nine months ended September 30, 2016 includes an adjustment of $143 million to the fair value of equity method investments acquired in connection with the MarkWest Merger. (b) Capital expenditures include changes in capital accruals. See Note 17 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. |
Other Items (Tables)
Other Items (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Net Interest And Other Financial Income (Costs) | Net interest and other financial income (costs) was: Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Interest income $ 7 $ 3 $ 16 $ 5 Interest expense (172 ) (153 ) (508 ) (455 ) Interest capitalized 14 15 47 47 Other financial costs (6 ) (6 ) (20 ) (17 ) Net interest and other financial income (costs) $ (157 ) $ (141 ) $ (465 ) $ (420 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | (In millions) September 30, December 31, Crude oil and refinery feedstocks $ 2,147 $ 2,208 Refined products 2,706 2,810 Materials and supplies 486 485 Merchandise 154 153 Total $ 5,493 $ 5,656 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property, Plant And Equipment | (In millions) September 30, December 31, 2016 (a) Refining & Marketing $ 19,174 $ 18,590 Speedway 5,233 5,078 Midstream 14,489 13,521 Corporate and Other 822 817 Total 39,718 38,006 Less accumulated depreciation 13,682 12,241 Property, plant and equipment, net $ 26,036 $ 25,765 (a) Prior period balances have been recast in connection with the March 1, 2017 contribution of assets to MPLX. See Note 1 for additional information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables. September 30, 2017 Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Netting and Collateral (a) Net Carrying Value on Balance Sheet (b) Collateral Pledged Not Offset Commodity derivative instruments, assets $ 257 $ — $ — $ (257 ) $ — $ 22 Other assets 3 — — N/A 3 — Total assets at fair value $ 260 $ — $ — $ (257 ) $ 3 $ 22 Commodity derivative instruments, liabilities (c) $ 296 $ — $ 5 $ (296 ) $ 5 $ — Embedded derivatives in commodity contracts (c) — — 52 — 52 — Total liabilities at fair value $ 296 $ — $ 57 $ (296 ) $ 57 $ — December 31, 2016 Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Netting and Collateral (a) Net Carrying Value on Balance Sheet (b) Collateral Pledged Not Offset Commodity derivative instruments, assets $ 688 $ — $ — $ (688 ) $ — $ 126 Other assets 2 — — N/A 2 — Total assets at fair value $ 690 $ — $ — $ (688 ) $ 2 $ 126 Commodity derivative instruments, liabilities $ 712 $ — $ 6 $ (712 ) $ 6 $ — Embedded derivatives in commodity contracts (c) — — 54 — 54 — Contingent consideration, liability (d) — — 130 N/A 130 — Total liabilities at fair value $ 712 $ — $ 190 $ (712 ) $ 190 $ — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2017 , cash collateral of $39 million was netted with the mark-to-market derivative liabilities. As of December 31, 2016 , $24 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. (c) Level 3 includes $15 million and $13 million classified as current at September 30, 2017 and December 31, 2016 , respectively. (d) Includes $130 million classified as current at December 31, 2016 . |
Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3 | The following is a reconciliation of the beginning and ending balances recorded for liabilities classified as Level 3 in the fair value hierarchy. Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Beginning balance $ 41 $ 171 $ 190 $ 342 Contingent consideration payment — — (131 ) (200 ) Unrealized and realized losses included in net income 22 6 8 33 Settlements of derivative instruments (6 ) (1 ) (10 ) 1 Ending balance $ 57 $ 176 $ 57 $ 176 The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: Derivative instruments $ 17 $ 4 $ 8 $ 19 Contingent consideration agreement — 2 1 11 Total $ 17 $ 6 $ 9 $ 30 |
Financial Instruments at Fair Value, Excluding Derivative Financial Instruments and Contingent Consideration | The following table summarizes financial instruments on the basis of their nature, characteristics and risk at September 30, 2017 and December 31, 2016 , excluding the derivative financial instruments and contingent consideration reported above. September 30, 2017 December 31, 2016 (In millions) Fair Value Carrying Value Fair Value Carrying Value Financial assets: Investments $ 25 $ 2 $ 25 $ 2 Other 25 25 21 21 Total financial assets $ 50 $ 27 $ 46 $ 23 Financial liabilities: Long-term debt (a) $ 13,690 $ 12,544 $ 10,892 $ 10,297 Deferred credits and other liabilities 121 107 121 109 Total financial liabilities $ 13,811 $ 12,651 $ 11,013 $ 10,406 (a) Excludes capital leases and debt issuance costs; however, includes amount classified as debt due within one year. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Classification of Fair Values of Derivative Instruments, Excluding Cash Collateral | The following table presents the gross fair values of derivative instruments, excluding cash collateral, and where they appear on the consolidated balance sheets as of September 30, 2017 and December 31, 2016 : (In millions) September 30, 2017 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 257 $ 296 Other current liabilities (a) — 15 Deferred credits and other liabilities (a) — 42 (In millions) December 31, 2016 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 688 $ 712 Other current liabilities (a) — 13 Deferred credits and other liabilities (a) — 47 (a) Includes embedded derivatives. |
Open Commodity Derivative Contracts | The tables below summarize open commodity derivative contracts for crude oil and refined products as of September 30, 2017 . Position Total Barrels (In thousands) Crude Oil (a) Exchange-traded Long 33,043 Exchange-traded Short (34,428 ) (a ) 94 percent of the exchange-traded contracts expire in the fourth quarter of 2017 . Position Total Gallons (In thousands) Refined Products (a) Exchange-traded Long 316,764 Exchange-traded Short (227,388 ) OTC Short (33,388 ) (a ) 100 percent of the exchange-traded contracts expire in the fourth quarter of 2017 . |
Effect of Commodity Derivative Instruments in Statements of Income | The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: Gain (Loss) Gain (Loss) (In millions) Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2017 2016 2017 2016 Sales and other operating revenues $ (10 ) $ (3 ) $ 8 $ (4 ) Cost of revenues 1 (20 ) (30 ) (91 ) Total $ (9 ) $ (23 ) $ (22 ) $ (95 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Outstanding Borrowings | Our outstanding borrowings at September 30, 2017 and December 31, 2016 consisted of the following: (In millions) September 30, December 31, Marathon Petroleum Corporation: Commercial paper $ — $ — 364-day bank revolving credit facility due July 2018 — — Trade receivables securitization facility due July 2019 — — Bank revolving credit facility due 2022 — — Term loan agreement due 2019 — 200 Senior notes, 2.700% due December 2018 600 600 Senior notes, 3.400% due December 2020 650 650 Senior notes, 5.125% due March 2021 1,000 1,000 Senior notes, 3.625%, due September 2024 750 750 Senior notes, 6.500%, due March 2041 1,250 1,250 Senior notes, 4.750%, due September 2044 800 800 Senior notes, 5.850% due December 2045 250 250 Senior notes, 5.000%, due September 2054 400 400 MPLX LP: MPLX term loan facility due 2019 — 250 MPLX bank revolving credit facility due 2022 420 — MPLX senior notes, 5.500%, due February 2023 710 710 MPLX senior notes, 4.500%, due July 2023 989 989 MPLX senior notes, 4.875%, due December 2024 1,149 1,149 MPLX senior notes, 4.000%, due February 2025 500 500 MPLX senior notes, 4.875%, due June 2025 1,189 1,189 MarkWest senior notes, 4.500% - 5.500%, due 2023 - 2025 63 63 MPLX senior notes, 4.125%, due March 2027 1,250 — MPLX senior notes, 5.200%, due March 2047 1,000 — Capital lease obligations due 2017-2028 299 319 Total 13,269 11,069 Unamortized debt issuance costs (61 ) (44 ) Unamortized discount (a) (426 ) (453 ) Amounts due within one year (29 ) (28 ) Total long-term debt due after one year $ 12,753 $ 10,544 (a) Includes $386 million and $420 million of unamortized discount as of September 30, 2017 and December 31, 2016 , respectively, related to the difference between the fair value and the principal amount of assumed MarkWest debt. |
Supplemental Cash Flow Inform47
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | Nine Months Ended (In millions) 2017 2016 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 446 $ 400 Net income taxes paid to (refunded from) taxing authorities 383 28 Non-cash investing and financing activities: Contribution of assets to joint venture (a) 337 — (a) MarkWest’s contribution of assets to Sherwood Midstream and Sherwood Midstream Holdings. See Note 4 . |
Reconciliation of Additions to Property, Plant and Equipment to Total Capital Expenditures | The consolidated statements of cash flows exclude changes to the consolidated balance sheets that did not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures: Nine Months Ended (In millions) 2017 2016 Additions to property, plant and equipment per consolidated statements of cash flows $ 1,928 $ 2,147 Asset retirement expenditures 1 4 Decrease in capital accruals (9 ) (169 ) Total capital expenditures before acquisitions 1,920 1,982 Acquisitions (a) 250 (133 ) Total capital expenditures $ 2,170 $ 1,849 (a) The nine months ended September 30, 2017 reflects primarily the acquisition of the Ozark pipeline. The nine months ended September 30, 2016 reflects adjustments to the fair values of the property, plant and equipment, intangibles and goodwill acquired in connection with the MarkWest Merger. |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following table shows the changes in accumulated other comprehensive loss by component. Amounts in parentheses indicate debits. (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2015 $ (255 ) $ (70 ) $ 4 $ 3 $ (318 ) Other comprehensive income (loss) before reclassifications (8 ) 1 — — (7 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (35 ) (2 ) — — (37 ) – actuarial loss (a) 28 1 — — 29 – settlement loss (a) 7 — — — 7 Other (b) — — — (1 ) (1 ) Tax effect — — — — — Other comprehensive income (loss) (8 ) — — (1 ) (9 ) Balance as of September 30, 2016 $ (263 ) $ (70 ) $ 4 $ 2 $ (327 ) (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2016 $ (233 ) $ (7 ) $ 4 $ 2 $ (234 ) Other comprehensive income (loss) before reclassifications (2 ) — — — (2 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (29 ) (2 ) — — (31 ) – actuarial loss/(gain) (a) 27 (1 ) — — 26 – settlement loss (a) 2 — — — 2 Other (b) — — — (2 ) (2 ) Tax effect — 1 — 1 2 Other comprehensive income (loss) (2 ) (2 ) — (1 ) (5 ) Balance as of September 30, 2017 $ (235 ) $ (9 ) $ 4 $ 1 $ (239 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 19 . (b) This amount was reclassified out of accumulated other comprehensive loss and is included in selling, general and administrative on the consolidated statements of income. |
Defined Benefit Pension and O49
Defined Benefit Pension and Other Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit costs: Three Months Ended September 30, Pension Benefits Other Benefits (In millions) 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 33 $ 29 $ 6 $ 8 Interest cost 19 18 8 9 Expected return on plan assets (25 ) (24 ) — — Amortization – prior service credit (10 ) (12 ) — (1 ) – actuarial loss 9 10 — — – settlement loss 1 4 — — Net periodic benefit cost $ 27 $ 25 $ 14 $ 16 Nine Months Ended September 30, Pension Benefits Other Benefits (In millions) 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 99 $ 86 $ 19 $ 24 Interest cost 56 55 23 26 Expected return on plan assets (75 ) (73 ) — — Amortization – prior service credit (29 ) (35 ) (2 ) (2 ) – actuarial loss/(gain) 27 28 (1 ) 1 – settlement loss 2 7 — — Net periodic benefit cost $ 80 $ 68 $ 39 $ 49 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Award Activity | The following table presents a summary of our stock option award activity for the nine months ended September 30, 2017 : Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2016 9,531,440 $ 28.93 Granted 1,214,112 50.57 Exercised (1,356,217 ) 21.89 Forfeited, canceled or expired (78,386 ) 41.97 Outstanding at September 30, 2017 9,310,949 32.66 |
Summary of Restricted Stock Award Activity | The following table presents a summary of restricted stock award activity for the nine months ended September 30, 2017 : Shares of Restricted Stock (“RS”) Restricted Stock Units (“RSU”) Number of Shares Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 1,250,343 $ 41.51 361,117 $ 28.26 Granted 574,602 50.20 28,573 51.94 RS’s Vested/RSU’s Issued (522,454 ) 42.48 (79,635 ) 24.54 Forfeited (83,806 ) 44.29 (13,750 ) 50.20 Outstanding at September 30, 2017 1,218,685 45.00 296,305 30.52 |
Schedule of Performance Unit Awards | The following table presents a summary of the activity for performance unit awards to be settled in shares for the nine months ended September 30, 2017 : Number of Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 6,255,178 $ 0.78 Granted 2,584,750 0.92 Exercised (1,854,728 ) 0.85 Canceled (99,658 ) 0.78 Outstanding at September 30, 2017 6,885,542 0.81 |
Supplementary Statistics (Table
Supplementary Statistics (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Supplementary Statistics | Supplementary Statistics (Unaudited) Three Months Ended Nine Months Ended (In millions) 2017 2016 2017 2016 Income from Operations by segment Refining & Marketing (a)(b) $ 1,097 $ 252 $ 1,589 $ 1,191 Speedway (b) 209 209 583 569 Midstream (a)(c) 355 310 996 752 Items not allocated to segments: Corporate and other unallocated items (a)(c) (86 ) (65 ) (251 ) (194 ) Pension settlement expenses (1 ) (4 ) (2 ) (7 ) Litigation — — (86 ) — Impairments (d) 2 (267 ) 21 (486 ) Income from operations $ 1,576 $ 435 $ 2,850 $ 1,825 Capital Expenditures and Investments (e) Refining & Marketing $ 198 $ 251 $ 570 $ 756 Speedway 108 71 221 191 Midstream (f) 453 410 2,017 1,179 Corporate and Other (g) 32 29 92 106 Total $ 791 $ 761 $ 2,900 $ 2,232 (a) We revised our operating segment presentation in the first quarter of 2017 in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. The operating results for these assets, which were previously included in the Refining & Marketing segment, are now included in the Midstream segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses and, therefore, there are no financial results from which to recast segment results. (b) The Refining & Marketing and Speedway segments include inventory LCM benefits of $345 million and $25 million , respectively, for the nine months ended September 30, 2016 . (c) Corporate overhead expenses attributable to MPLX are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. (d) 2017 includes MPC’s share of gains related to the sale of assets remaining from the Sandpiper pipeline project. 2016 relates to impairments of goodwill and equity method investments. (e) Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. (f) The nine months ended September 30, 2017 includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. (g) Includes capitalized interest of $13 million and $15 million for the three months ended September 30, 2017 and 2016 , respectively, and $39 million and $47 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Operating Statistics | Supplementary Statistics (Unaudited) Three Months Ended Nine Months Ended 2017 2016 2017 2016 MPC Consolidated Refined Product Sales Volumes (mbpd) (a) 2,357 2,316 2,272 2,274 Refining & Marketing Operating Statistics Refining & Marketing refined product sales volume (mbpd) (b) 2,357 2,307 2,263 2,265 Refining & Marketing gross margin (dollars per barrel) (c)(d) $ 14.14 $ 10.67 $ 12.42 $ 11.11 Crude oil capacity utilization percent (e) 102 100 96 95 Refinery throughputs (mbpd): (f) Crude oil refined 1,845 1,791 1,741 1,708 Other charge and blendstocks 172 135 176 156 Total 2,017 1,926 1,917 1,864 Sour crude oil throughput percent 57 59 61 60 WTI-priced crude oil throughput percent 23 20 20 20 Refined product yields (mbpd): (f) Gasoline 939 907 910 908 Distillates 673 647 627 616 Propane 38 38 35 35 Feedstocks and special products 298 253 285 245 Heavy fuel oil 45 43 36 36 Asphalt 67 70 64 58 Total 2,060 1,958 1,957 1,898 Refinery direct operating costs (dollars per barrel): (g) Planned turnaround and major maintenance $ 1.20 $ 1.62 $ 1.69 $ 1.72 Depreciation and amortization 1.34 1.42 1.44 1.46 Other manufacturing (h) 3.83 4.01 4.10 4.03 Total $ 6.37 $ 7.05 $ 7.23 $ 7.21 Refining & Marketing Operating Statistics By Region - Gulf Coast Refinery throughputs (mbpd): (i) Crude oil refined 1,123 1,073 1,041 1,057 Other charge and blendstocks 217 185 219 199 Total 1,340 1,258 1,260 1,256 Sour crude oil throughput percent 69 72 75 73 WTI-priced crude oil throughput percent 14 8 10 7 Refined product yields (mbpd): (i) Gasoline 538 511 525 530 Distillates 438 411 393 407 Propane 25 27 25 26 Feedstocks and special products 326 289 310 283 Heavy fuel oil 31 30 24 24 Asphalt 19 17 17 15 Total 1,377 1,285 1,294 1,285 Refinery direct operating costs (dollars per barrel): (g) Planned turnaround and major maintenance $ 0.90 $ 2.05 $ 1.86 $ 1.87 Depreciation and amortization 1.05 1.14 1.15 1.13 Other manufacturing (h) 3.52 3.70 3.81 3.62 Total $ 5.47 $ 6.89 $ 6.82 $ 6.62 Supplementary Statistics (Unaudited) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Refining & Marketing Operating Statistics By Region – Midwest Refinery throughputs (mbpd): (i) Crude oil refined 722 718 700 651 Other charge and blendstocks 35 39 31 37 Total 757 757 731 688 Sour crude oil throughput percent 38 39 41 39 WTI-priced crude oil throughput percent 38 39 34 41 Refined product yields (mbpd): (i) Gasoline 401 396 385 378 Distillates 235 236 234 209 Propane 14 13 11 11 Feedstocks and special products 50 51 47 40 Heavy fuel oil 15 13 13 12 Asphalt 48 53 47 43 Total 763 762 737 693 Refinery direct operating costs (dollars per barrel): (g) Planned turnaround and major maintenance $ 1.60 $ 0.72 $ 1.22 $ 1.26 Depreciation and amortization 1.72 1.72 1.80 1.90 Other manufacturing (h) 3.96 4.04 4.19 4.29 Total $ 7.28 $ 6.48 $ 7.21 $ 7.45 Speedway Operating Statistics (j) Convenience stores at period-end 2,734 2,773 Gasoline and distillate sales (millions of gallons) 1,464 1,575 4,332 4,605 Gasoline and distillate gross margin (dollars per gallon) (k) $ 0.1772 $ 0.1773 $ 0.1727 $ 0.1668 Merchandise sales (in millions) $ 1,295 $ 1,338 $ 3,693 $ 3,777 Merchandise gross margin (in millions) $ 374 $ 386 $ 1,065 $ 1,085 Merchandise gross margin percent 28.9 % 28.9 % 28.8 % 28.7 % Same store gasoline sales volume (period over period) (3.1 %) (0.6 %) (1.6 %) 0.2 % Same store merchandise sales (period over period) (l) 0.3 % 4.0 % 1.5 % 3.0 % Midstream Operating Statistics Crude oil and refined product pipeline throughputs (mbpd) (m) 3,562 3,113 3,299 2,953 Terminal throughput (mbpd) (n) 1,496 1,517 1,470 1,510 Gathering system throughput (MMcf/d) (o) 3,729 3,306 3,415 3,313 Natural gas processed (MMcf/d) (o) 6,581 5,906 6,336 5,691 C2 (ethane) + NGLs (natural gas liquids) fractionated (mbpd) (o) 397 348 384 330 (a) Total average daily volumes of refined product sales to wholesale, branded and retail customers. (b) Includes intersegment sales. (c) Sales revenue less cost of refinery inputs and purchased products, divided by total refinery throughputs. (d) Excludes LCM inventory valuation adjustments. Comparable prior period information for gross margin has been recast in connection with the contribution of certain pipeline assets to MPLX on March 1, 2017. (e) Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. (f) Excludes inter-refinery volumes of 80 mbpd and 89 mbpd for the three months ended September 30, 2017 and 2016 , respectively, and 74 mbpd and 80 mbpd for the nine months ended September 30, 2017 and 2016 , respectively. (g) Per barrel of total refinery throughputs. (h) Includes utilities, labor, routine maintenance and other operating costs. (i) Includes inter-refinery transfer volumes. (j) Third quarter and year-to-date 2017 operating statistics do not reflect any information for the 41 travel centers contributed to PFJ Southeast, whereas they are reflected in the third quarter and year-to-date 2016 operating statistics. (k) Excludes LCM inventory valuation adjustments. The price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees, divided by gasoline and distillate sales volume. (l) Excludes cigarettes. (m) Includes common-carrier pipelines and private pipelines contributed to MPLX, excluding equity method investments. (n) Includes the results of the terminal assets contributed to MPLX from the date the assets became a business, April 1, 2016. (o) Includes amounts related to unconsolidated equity method investments on a 100 percent basis. |
MPLX LP (Detail)
MPLX LP (Detail) - MPLX LP | Sep. 30, 2017 |
Noncontrolling Interest [Line Items] | |
Ownership percentage of general partner interest | 100.00% |
Public's ownership interest in MPLX (in percentage) | 69.60% |
General Partner and Limited Partner | |
Noncontrolling Interest [Line Items] | |
MPC's partnership interest in MPLX (in percentage) | 30.40% |
General Partner | |
Noncontrolling Interest [Line Items] | |
MPC's partnership interest in MPLX (in percentage) | 2.00% |
MPLX LP - Reorganization Transa
MPLX LP - Reorganization Transactions (Details) - MPLX LP - USD ($) shares in Millions, $ in Millions | Sep. 01, 2017 | Mar. 01, 2017 | Sep. 01, 2016 | Mar. 31, 2016 |
General partners' contributed capital | $ 225 | |||
Limited Partner | ||||
Units issued, number of units | 19 | 13 | 7 | 23 |
General Partner and Limited Partner | ||||
Increase in ownership percentage by MPC | 1.00% |
MPLX LP - Private Placement of
MPLX LP - Private Placement of Preferred Units (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May 13, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Noncontrolling Interest [Line Items] | |||
Issuance of MPLX LP redeemable preferred units | $ 0 | $ 984 | |
MPLX LP | Series A Convertible Preferred Units | |||
Noncontrolling Interest [Line Items] | |||
Sale of units (in number of preferred units) | 30.8 | ||
Preferred units, dividend rate, percentage | 6.50% | ||
Issuance of MPLX LP redeemable preferred units | $ 984 | ||
Preferred units, distribution rate, per-dollar-amount | $ 0.528125 | ||
Preferred units, description | The MPLX Preferred Units are convertible into MPLX common units on a one for one basis after three years, at the purchasers’ option, and after four years at MPLX’s option, subject to certain conditions. | ||
MPLX LP | Series A Convertible Preferred Units | Preferred Units | |||
Noncontrolling Interest [Line Items] | |||
Units issued, price per unit | $ 32.50 |
MPLX LP - Dropdowns to MPLX (De
MPLX LP - Dropdowns to MPLX (Details) - MPLX LP - USD ($) shares in Thousands, $ in Millions | Sep. 01, 2017 | Mar. 01, 2017 | Sep. 01, 2016 | Mar. 31, 2016 |
Noncontrolling Interest [Line Items] | ||||
Total fair value of consideration transferred | $ 1,050 | $ 2,000 | ||
Limited Partner | ||||
Noncontrolling Interest [Line Items] | ||||
Units issued, number of units | 19,000 | 13,000 | 7,000 | 23,000 |
Equity interest issued, value assigned | $ 630 | $ 504 | $ 600 | |
General Partner | ||||
Noncontrolling Interest [Line Items] | ||||
Units issued, number of units | 378 | 264 | 460 | |
Cash and Cash Equivalents | ||||
Noncontrolling Interest [Line Items] | ||||
Payments to acquire business, gross | $ 420 | $ 1,500 |
MPLX LP - Public Offerings (Det
MPLX LP - Public Offerings (Details) - MPLX LP - USD ($) $ in Millions | Sep. 01, 2017 | Mar. 01, 2017 | Sep. 30, 2017 | Feb. 10, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents | |||||
Noncontrolling Interest [Line Items] | |||||
Payments to acquire business, gross | $ 420 | $ 1,500 | |||
Senior Notes | MPLX senior notes, 4.125%, due March 2027 | |||||
Noncontrolling Interest [Line Items] | |||||
Long-term debt, gross | $ 1,250 | $ 1,250 | $ 0 | ||
Debt instrument, interest rate | 4.125% | 4.125% | |||
Senior Notes | MPLX senior notes, 5.200%, due March 2047 | |||||
Noncontrolling Interest [Line Items] | |||||
Long-term debt, gross | $ 1,000 | $ 1,000 | $ 0 | ||
Debt instrument, interest rate | 5.20% | 5.20% |
MPLX LP - ATM Program (Details)
MPLX LP - ATM Program (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Noncontrolling Interest [Line Items] | ||
Net proceeds from issuance of MPLX LP common limited partners units | $ 473 | $ 499 |
MPLX LP | ATM Program | ||
Noncontrolling Interest [Line Items] | ||
Net proceeds from issuance of MPLX LP common limited partners units | 473 | |
Remaining authorized issuance amount | $ 1,740 | |
MPLX LP | ATM Program | Limited Partners Common Units | ||
Noncontrolling Interest [Line Items] | ||
Sale of units (in number of common units) | 14 |
MPLX LP - Noncontrolling Intere
MPLX LP - Noncontrolling Interest (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Impact from equity transactions of MPLX, net of tax | $ 447 | $ 429 |
Additional Paid-in Capital | ||
Increase (decrease) in MPC's additional paid in capital for the issuance of MPLX LP common units to the public | 25 | (43) |
Increase in MPC's additional paid in capital for the issuance of MPLX LP common units and general partner units to MPC | 113 | 0 |
Net transfers (to) from noncontrolling interests | 138 | (43) |
Tax impact | (26) | (70) |
Impact from equity transactions of MPLX, net of tax | $ 112 | $ (113) |
Acquisitions and Investments -
Acquisitions and Investments - Acquisition of Ozark Pipeline (Details) - Ozark Pipeline bbl / d in Thousands, $ in Millions | Mar. 01, 2017USD ($)bbl / dinmi |
Business Acquisition [Line Items] | |
Pipeline length | mi | 433 |
Pipeline diameter | in | 22 |
Crude oil throughput | bbl / d | 230 |
MPLX LP | |
Business Acquisition [Line Items] | |
Payments to acquire business, gross | $ | $ 219 |
Acquisitions and Investments 60
Acquisitions and Investments - Revenue and Income from Operations (Details) - Ozark Pipeline - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Sales and other operating revenues (including consumer excise taxes) | $ 19 | $ 45 |
Income from operations | $ 6 | $ 17 |
Acquisitions and Investments 61
Acquisitions and Investments - Formation of Travel Plaza Joint Venture (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016USD ($)Store | Sep. 30, 2017USD ($) | [1] | Sep. 30, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | $ 337 | $ 0 | ||
PFJ Southeast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | $ 273 | |||
PFJ Southeast | Property, Plant and Equipment | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | 203 | |||
PFJ Southeast | Goodwill | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | 62 | |||
PFJ Southeast | Inventories | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | $ 8 | |||
PFJ Southeast | Speedway | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of travel plazas | Store | 41 | |||
PFJ Southeast | Pilot Flying J | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of travel plazas | Store | 82 | |||
[1] | MarkWest’s contribution of assets to Sherwood Midstream and Sherwood Midstream Holdings. See Note 4. |
Acquisitions and Investments 62
Acquisitions and Investments - Marine Investments (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | 16 Months Ended | |||
May 31, 2016USD ($) | Sep. 30, 2017Joint_venturevessel | Dec. 31, 2016vessel | Dec. 31, 2015vessel | Dec. 31, 2016USD ($)vessel | May 01, 2016 | Sep. 30, 2015 | |
Crowley Coastal Partners | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Cash paid to acquire equity method investments | $ | $ 48 | $ 189 | |||||
Equity method investments, ownership percentage | 50.00% | ||||||
Crowley Ocean Partners | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Cash paid to acquire equity method investments | $ | $ 141 | ||||||
Equity method investments, ownership percentage | 50.00% | 50.00% | 50.00% | ||||
Number of vessels | vessel | 2 | 2 | 4 | ||||
Crowley Blue Water Partners | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments, ownership percentage | 50.00% | ||||||
Number of vessels | vessel | 3 | ||||||
Crowley Maritime Corporation | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of joint ventures | Joint_venture | 2 | ||||||
Crowley Maritime Corporation | Crowley Blue Water Partners | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of partners interest contributed | 100.00% |
Acquisitions and Investments 63
Acquisitions and Investments - Investment in Pipeline Company (Details) bbl / d in Thousands, $ in Millions | Feb. 15, 2017USD ($)Quarterly_reporting_periodbbl / d | Sep. 30, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
IDRs forfeited per quarter | $ 1.6 | |
Number of quarters IDRs forfeited | Quarterly_reporting_period | 12 | |
Prorated IDRs forfeited | $ 0.8 | |
MarEn Bakken | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash paid to acquire equity method investments | $ 500 | |
Bakken Pipeline System | ||
Schedule of Equity Method Investments [Line Items] | ||
Crude oil throughput | bbl / d | 470 | |
MPLX LP | MarEn Bakken | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash paid to acquire equity method investments | $ 500 | |
Equity method investments, ownership percentage | 25.00% | |
MPLX LP | Bakken Pipeline System | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments, ownership percentage | 9.20% | |
MPC & Enbridge Energy Partners | MarEn Bakken | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash paid to acquire equity method investments | $ 2,000 | |
MPC & Enbridge Energy Partners | Bakken Pipeline System | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership interest in joint venture acquired | 36.75% |
Acquisitions and Investments 64
Acquisitions and Investments - Formation of Gathering and Processing Joint Venture (Details) bbl / d in Thousands, $ in Millions | Jan. 01, 2017USD ($)bbl / d | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | $ 337 | [1] | $ 0 | |
Sherwood Midstream | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments, ownership percentage | 50.00% | |||
Sherwood Midstream | MPLX LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | $ 134 | |||
Payments to acquire interest in joint venture | 20 | |||
Sherwood Midstream | Antero Midstream Partners L.P. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to acquire interest in joint venture | $ 154 | |||
Ohio Fractionation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capacity | bbl / d | 20 | |||
Ohio Fractionation | Sherwood Midstream | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to acquire interest in joint venture | $ 126 | |||
Sherwood Midstream Holdings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments, ownership percentage | 86.00% | |||
Sherwood Midstream Holdings | Direct Ownership Interest | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments, ownership percentage | 79.00% | |||
Sherwood Midstream Holdings | Indirect Ownership Interest | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments, ownership percentage | 10.50% | |||
Sherwood Midstream Holdings | MPLX LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of assets to joint venture | $ 203 | |||
Fair value of assets contributed | 209 | |||
Gain on disposal of assets | $ 2 | |||
Sherwood Midstream Holdings | Sherwood Midstream | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments, ownership percentage | 21.00% | |||
Payments to acquire interest in joint venture | $ 44 | |||
[1] | MarkWest’s contribution of assets to Sherwood Midstream and Sherwood Midstream Holdings. See Note 4. |
Variable Interest Entities (Det
Variable Interest Entities (Details) bbl / d in Thousands, $ in Millions | Sep. 30, 2017USD ($) | Jan. 01, 2017bbl / d | Dec. 31, 2016USD ($) |
Variable Interest Entity [Line Items] | |||
Equity method investments | $ 4,769 | $ 3,827 | |
Crowley Coastal Partners | |||
Variable Interest Entity [Line Items] | |||
VIE, maximum loss exposure, amount | $ 493 | ||
Equity method investments, ownership percentage | 50.00% | ||
MarkWest Utica EMG | |||
Variable Interest Entity [Line Items] | |||
Equity method investments, ownership percentage | 56.00% | ||
Equity method investments | $ 2,200 | ||
Ohio Gathering | |||
Variable Interest Entity [Line Items] | |||
Equity method investments, ownership percentage | 34.00% | ||
Sherwood Midstream | |||
Variable Interest Entity [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Equity method investments | $ 220 | ||
Ohio Fractionation | |||
Variable Interest Entity [Line Items] | |||
Capacity | bbl / d | 20 | ||
Sherwood Midstream Holdings | |||
Variable Interest Entity [Line Items] | |||
Equity method investments, ownership percentage | 86.00% | ||
Equity method investments | $ 163 | ||
Sherwood Midstream Holdings | Direct Ownership Interest | |||
Variable Interest Entity [Line Items] | |||
Equity method investments, ownership percentage | 79.00% | ||
Sherwood Midstream Holdings | Indirect Ownership Interest | |||
Variable Interest Entity [Line Items] | |||
Equity method investments, ownership percentage | 10.50% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | May 01, 2016 | Sep. 30, 2015 |
Related Party Transaction [Line Items] | ||||
Due from related parties, noncurrent | $ 1 | $ 1 | ||
Crowley Blue Water Partners | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 50.00% | |||
Crowley Ocean Partners | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 50.00% | 50.00% | 50.00% | |
Explorer | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 25.00% | |||
Illinois Extension Pipeline | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 35.00% | |||
LOCAP | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 59.00% | |||
LOOP | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 51.00% | |||
MarkWest Utica EMG | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 56.00% | |||
Ohio Gathering | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 34.00% | |||
PFJ Southeast | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 29.00% | |||
Sherwood Midstream | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 50.00% | |||
Sherwood Midstream Holdings | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 86.00% | |||
TAAE | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 45.00% | |||
TACE | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 61.00% | |||
TAME | ||||
Related Party Transaction [Line Items] | ||||
Equity method investments, ownership percentage | 67.00% |
Related Party Transactions - Sa
Related Party Transactions - Sales to Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Sales to related parties | $ 157 | $ 2 | $ 458 | $ 5 |
PFJ Southeast | ||||
Related Party Transaction [Line Items] | ||||
Sales to related parties | 155 | 0 | 451 | 0 |
Other equity method investees | ||||
Related Party Transaction [Line Items] | ||||
Sales to related parties | $ 2 | $ 2 | $ 7 | $ 5 |
Related Party Transactions - Ot
Related Party Transactions - Other Income From Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Other income from related parties | $ 13 | $ 12 | $ 39 | $ 31 |
MarkWest Utica EMG | ||||
Related Party Transaction [Line Items] | ||||
Other income from related parties | 5 | 5 | 13 | 12 |
Ohio Gathering | ||||
Related Party Transaction [Line Items] | ||||
Other income from related parties | 4 | 5 | 12 | 12 |
Other equity method investees | ||||
Related Party Transaction [Line Items] | ||||
Other income from related parties | $ 4 | $ 2 | $ 14 | $ 7 |
Related Party Transactions - Pu
Related Party Transactions - Purchases from Related Parties (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Purchases from related parties | $ 148 | $ 128 | $ 420 | $ 359 |
Crowley Blue Water Partners | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 16 | 16 | 44 | 22 |
Crowley Ocean Partners | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 20 | 15 | 59 | 32 |
Explorer | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 7 | 4 | 7 | 12 |
Illinois Extension Pipeline | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 26 | 27 | 75 | 82 |
LOCAP | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 6 | 6 | 17 | 18 |
LOOP | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 14 | 14 | 53 | 42 |
TAAE | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 22 | 9 | 53 | 29 |
TACE | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 9 | 10 | 34 | 39 |
TAME | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 20 | 23 | 58 | 67 |
Other equity method investees | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | $ 8 | $ 4 | $ 20 | $ 16 |
Related Party Transactions - Re
Related Party Transactions - Receivables From Related Parties (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Current receivables from related parties | $ 40 | $ 45 |
MarkWest Utica EMG | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | 2 | 2 |
Ohio Gathering | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | 2 | 2 |
PFJ Southeast | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | 32 | 40 |
Other equity method investees | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | $ 4 | $ 1 |
Related Party Transactions - Pa
Related Party Transactions - Payables To Related Parties (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Payables to related parties | $ 64 | $ 53 |
Illinois Extension Pipeline | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 9 | 9 |
LOCAP | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 2 | 2 |
LOOP | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 5 | 6 |
MarkWest Utica EMG | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 30 | 24 |
TAAE | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 2 | 2 |
TACE | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 1 | 4 |
TAME | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 2 | 4 |
Other equity method investees | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | $ 13 | $ 2 |
Income Per Common Share - Summa
Income Per Common Share - Summary of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic earnings per share: | ||||
Net income attributable to MPC | $ 903 | $ 145 | $ 1,416 | $ 947 |
Income allocated to participating securities | 0 | 0 | 1 | 1 |
Income available to common stockholders – basic | $ 903 | $ 145 | $ 1,415 | $ 946 |
Weighted average common shares outstanding (in shares) | 504 | 527 | 514 | 528 |
Basic (in USD per share) | $ 1.79 | $ 0.28 | $ 2.75 | $ 1.79 |
Diluted earnings per share: | ||||
Net income attributable to MPC | $ 903 | $ 145 | $ 1,416 | $ 947 |
Income allocated to participating securities | 0 | 0 | 1 | 1 |
Income available to common stockholders – diluted | $ 903 | $ 145 | $ 1,415 | $ 946 |
Weighted average common shares outstanding (in shares) | 504 | 527 | 514 | 528 |
Effect of dilutive securities (in shares) | 4 | 3 | 4 | 3 |
Weighted average common shares, including dilutive effect (in shares) | 508 | 530 | 518 | 531 |
Diluted (in USD per share) | $ 1.77 | $ 0.27 | $ 2.73 | $ 1.78 |
Income Per Common Share - Anti-
Income Per Common Share - Anti-dilutive Shares (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Based Compensation Expense [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares issued under stock-based compensation plans | 1 | 3 | 1 | 3 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | May 31, 2017 | |
Stock repurchase program, authorized amount | $ 3,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 3,940 | $ 3,940 | ||||
Number of shares repurchased | 8,000,000 | 1,000,000 | 31,000,000 | 4,000,000 | ||
Cash paid for shares repurchased | $ 452 | $ 51 | $ 1,622 | $ 177 | ||
Scenario, Forecast | ||||||
Number of shares repurchased | 985,400 | |||||
Cash paid for shares repurchased | $ 55 |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Number of shares repurchased | 8 | 1 | 31 | 4 |
Cash paid for shares repurchased | $ 452 | $ 51 | $ 1,622 | $ 177 |
Effective average cost per delivered share | $ 53.85 | $ 42.76 | $ 52.16 | $ 41.14 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segmentrefinery | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 3 |
Number of refineries | refinery | 7 |
Segment Information - Income Fr
Segment Information - Income From Operations Attributable To Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 19,053 | $ 16,616 | $ 53,220 | $ 46,179 | ||||
Sales to related parties | 157 | 2 | 458 | 5 | ||||
Income from operations | 1,576 | 435 | 2,850 | 1,825 | ||||
Income from equity method investments | 84 | (208) | 224 | (236) | ||||
Depreciation and amortization | 517 | 507 | 1,574 | 1,497 | ||||
Capital expenditures and investments | [1] | 791 | 761 | 2,900 | 2,232 | |||
Inventory market valuation adjustment | 0 | 0 | 0 | (370) | ||||
MarEn Bakken | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Cash paid to acquire equity method investments | 500 | |||||||
Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | [2] | 3,274 | 3,145 | 9,381 | 8,785 | |||
Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 22,484 | 19,763 | 63,059 | 54,969 | ||||
Income from operations | 1,661 | 771 | 3,168 | 2,512 | ||||
Income from equity method investments | 83 | 59 | [3] | 203 | 120 | [3] | ||
Depreciation and amortization | [3] | 503 | 493 | 1,530 | 1,452 | |||
Capital expenditures and investments | [4] | 759 | 732 | 2,808 | [5] | 2,126 | ||
Cash paid to acquire equity method investments | 53 | 69 | 730 | [6] | 383 | [6] | ||
Refining & Marketing | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 13,573 | 11,284 | 37,485 | 31,192 | ||||
Sales to related parties | 155 | 2 | 452 | 5 | ||||
Inventory market valuation adjustment | 345 | |||||||
Refining & Marketing | Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 2,904 | 2,798 | 8,302 | 7,872 | ||||
Refining & Marketing | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 16,632 | 14,084 | 46,239 | 39,069 | ||||
Income from operations | 1,097 | 252 | 1,589 | [7] | 1,191 | [8] | ||
Income from equity method investments | 6 | 8 | 10 | 10 | ||||
Depreciation and amortization | 266 | 267 | 805 | 801 | ||||
Capital expenditures and investments | 198 | 251 | 570 | 756 | ||||
Speedway | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 4,895 | 4,848 | 14,070 | 13,663 | ||||
Sales to related parties | 2 | 0 | 6 | 0 | ||||
Inventory market valuation adjustment | 25 | |||||||
Speedway | Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 1 | 1 | 3 | 2 | ||||
Speedway | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 4,898 | 4,849 | 14,079 | 13,665 | ||||
Income from operations | 209 | 209 | 583 | 569 | [8] | |||
Income from equity method investments | 20 | 0 | 54 | 0 | ||||
Depreciation and amortization | 68 | 71 | 197 | 203 | ||||
Capital expenditures and investments | 108 | 71 | 221 | 191 | ||||
Midstream | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 585 | 484 | 1,665 | 1,324 | ||||
Sales to related parties | 0 | 0 | 0 | 0 | ||||
Midstream | Ozark Pipeline | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Capital expenditures and investments | 220 | |||||||
Midstream | Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 369 | 346 | 1,076 | 911 | ||||
Midstream | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 954 | 830 | 2,741 | 2,235 | ||||
Income from operations | [9] | 355 | 310 | 996 | [7] | 752 | ||
Income from equity method investments | 57 | 51 | 139 | 110 | ||||
Depreciation and amortization | 169 | 155 | 528 | 448 | ||||
Capital expenditures and investments | 453 | 410 | 2,017 | [5] | 1,179 | |||
Reportable Segment | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 19,053 | $ 16,616 | $ 53,220 | $ 46,179 | ||||
[1] | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | |||||||
[2] | Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties | |||||||
[3] | Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below. | |||||||
[4] | Capital expenditures include changes in capital accruals, acquisitions (including any goodwill) and investments in affiliates. | |||||||
[5] | The Midstream segment includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system for the nine months ended September 30, 2017. | |||||||
[6] | The nine months ended September 30, 2017 includes an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. The nine months ended September 30, 2016 includes an adjustment of $143 million to the fair value of equity method investments acquired in connection with the MarkWest Merger | |||||||
[7] | We revised our operating segment presentation in the first quarter of 2017 in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. The operating results for these assets, which were previously included in the Refining & Marketing segment, are now included in the Midstream segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses and, therefore, there are no financial results from which to recast segment results. | |||||||
[8] | The Refining & Marketing and Speedway segments include inventory LCM benefits of $345 million and $25 million, respectively, for the nine months ended September 30, 2016 | |||||||
[9] | Corporate overhead expenses attributable to MPLX are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. |
Segment Information - Reconcili
Segment Information - Reconciliation Of Segment Income From Operations To Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | $ 1,576 | $ 435 | $ 2,850 | $ 1,825 | ||
Impairment expense | 0 | 0 | 0 | 130 | ||
Net interest and other financial income (costs) | 157 | 141 | 465 | 420 | ||
Income before income taxes | 1,419 | 294 | 2,385 | 1,405 | ||
Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | 1,661 | 771 | 3,168 | 2,512 | ||
Corporate and Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | [1] | (86) | (65) | (251) | [2] | (194) |
Segment Reconciling Items | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Pension settlement expenses | (1) | (4) | (2) | (7) | ||
Litigation | 0 | 0 | (86) | [3] | 0 | |
Impairment expense | [4] | $ 2 | $ (267) | $ 21 | $ (486) | |
[1] | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | |||||
[2] | We revised our operating segment presentation in the first quarter of 2017 in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. The operating results for these assets, which were previously included in the Refining & Marketing segment, are now included in the Midstream segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses and, therefore, there are no financial results from which to recast segment results. | |||||
[3] | See Note 21 for further information on litigation matters. | |||||
[4] | 2017 includes MPC’s share of gains related to the sale of assets remaining from the Sandpiper pipeline project. 2016 relates to impairments of goodwill and equity method investments. |
Segment Information - Reconci79
Segment Information - Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||||
Capital expenditures and investments | [1] | $ 791 | $ 761 | $ 2,900 | $ 2,232 | ||
Plus items not allocated to segments: | |||||||
Capital expenditures | [2] | 738 | 692 | 2,170 | 1,849 | ||
MarkWest | Adjustments | |||||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||||
Less: Investments in equity method investees | 143 | ||||||
MarEn Bakken | |||||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||||
Less: Investments in equity method investees | 500 | ||||||
Operating Segments | |||||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||||
Capital expenditures and investments | [3] | 759 | 732 | 2,808 | [4] | 2,126 | |
Less: Investments in equity method investees | 53 | 69 | 730 | [5] | 383 | [5] | |
Corporate and Other | |||||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||||
Capital expenditures and investments | [6] | 32 | 29 | 92 | 106 | ||
Plus items not allocated to segments: | |||||||
Corporate and Other | 19 | 14 | 53 | 59 | |||
Capitalized interest | $ 13 | $ 15 | $ 39 | $ 47 | |||
[1] | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | ||||||
[2] | Capital expenditures include changes in capital accruals. See Note 17 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. | ||||||
[3] | Capital expenditures include changes in capital accruals, acquisitions (including any goodwill) and investments in affiliates. | ||||||
[4] | The Midstream segment includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system for the nine months ended September 30, 2017. | ||||||
[5] | The nine months ended September 30, 2017 includes an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. The nine months ended September 30, 2016 includes an adjustment of $143 million to the fair value of equity method investments acquired in connection with the MarkWest Merger | ||||||
[6] | Includes capitalized interest of $13 million and $15 million for the three months ended September 30, 2017 and 2016, respectively, and $39 million and $47 million for the nine months ended September 30, 2017 and 2016, respectively. |
Other Items - Net Interest And
Other Items - Net Interest And Other Financial Income (Costs) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 7 | $ 3 | $ 16 | $ 5 |
Interest expense | (172) | (153) | (508) | (455) |
Interest capitalized | 14 | 15 | 47 | 47 |
Other financial costs | (6) | (6) | (20) | (17) |
Net interest and other financial income (costs) | $ (157) | $ (141) | $ (465) | $ (420) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Combined federal, state and foreign income tax rate | 29.00% | 26.00% | 30.00% | 34.00% |
Statutory rate applied to income before income taxes | 35.00% | 35.00% | 35.00% | |
Unrecognized benefits | $ 19 | $ 19 |
Inventories - Summary Of Invent
Inventories - Summary Of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Crude oil and refinery feedstocks | $ 2,147 | $ 2,208 |
Refined products | 2,706 | 2,810 |
Materials and supplies | 486 | 485 |
Merchandise | 154 | 153 |
Total | $ 5,493 | $ 5,656 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Inventory Disclosure [Abstract] | |
Impact on income as a result of LIFO liquidations | $ 0 |
Property, Plant And Equipment -
Property, Plant And Equipment - Summary Of Property, Plant And Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 39,718 | $ 38,006 | |
Less accumulated depreciation | 13,682 | 12,241 | |
Net property, plant and equipment | 26,036 | 25,765 | |
Operating Segments | Refining & Marketing | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 19,174 | 18,590 | [1] |
Operating Segments | Speedway | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,233 | 5,078 | |
Operating Segments | Midstream | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 14,489 | 13,521 | [1] |
Corporate and Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 822 | $ 817 | |
[1] | Prior period balances have been recast in connection with the March 1, 2017 contribution of assets to MPLX. See Note 1 for additional information. |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash collateral netted with derivative liabilities | $ 39 | $ 24 | ||
Contingent consideration, current | 130 | |||
Embedded derivatives in commodity contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Embedded derivatives, current | 15 | 13 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - netting and collateral | (257) | (688) | ||
Commodity derivative instruments, assets - collateral pledged not offset | 22 | 126 | ||
Other assets | 3 | 2 | ||
Total assets at fair value | 3 | 2 | ||
Commodity derivative instruments, liabilities - netting and collateral | (296) | (712) | ||
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | ||
Contingent consideration, liability | 130 | |||
Total liabilities at fair value | 57 | 190 | ||
Fair Value, Measurements, Recurring | Commodity derivatives | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - netting and collateral | [1] | (257) | (688) | |
Commodity derivative instruments, assets - net carrying value on balance sheet | [2] | 0 | 0 | |
Commodity derivative instruments, assets - collateral pledged not offset | 22 | 126 | ||
Commodity derivative instruments, liabilities - netting and collateral | [1] | (296) | (712) | |
Commodity derivative instruments, liabilities - net carrying value on balance sheet | [2] | 5 | 6 | |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | ||
Fair Value, Measurements, Recurring | Embedded derivatives in commodity contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, liabilities - netting and collateral | 0 | 0 | ||
Commodity derivative instruments, liabilities - net carrying value on balance sheet | [2] | 52 | 54 | |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other assets | 3 | 2 | ||
Total assets at fair value | 260 | 690 | ||
Contingent consideration, liability | 0 | |||
Total liabilities at fair value | 296 | 712 | ||
Fair Value, Measurements, Recurring | Level 1 | Commodity derivatives | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - gross | 257 | 688 | ||
Commodity derivative instruments, liabilities - gross | 296 | 712 | ||
Fair Value, Measurements, Recurring | Level 1 | Embedded derivatives in commodity contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, liabilities - gross | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Contingent consideration, liability | 0 | |||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Commodity derivatives | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - gross | 0 | 0 | ||
Commodity derivative instruments, liabilities - gross | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Embedded derivatives in commodity contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, liabilities - gross | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Contingent consideration, liability | [3] | 130 | ||
Total liabilities at fair value | 57 | 190 | ||
Fair Value, Measurements, Recurring | Level 3 | Commodity derivatives | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - gross | 0 | 0 | ||
Commodity derivative instruments, liabilities - gross | 5 | [4] | 6 | |
Fair Value, Measurements, Recurring | Level 3 | Embedded derivatives in commodity contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, liabilities - gross | [4] | $ 52 | $ 54 | |
[1] | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2017, cash collateral of $39 million was netted with the mark-to-market derivative liabilities. As of December 31, 2016, $24 million was netted with mark-to-market derivative liabilities. | |||
[2] | We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. | |||
[3] | Includes $130 million classified as current at December 31, 2016. | |||
[4] | Level 3 includes $15 million and $13 million classified as current at September 30, 2017 and December 31, 2016, respectively. |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Narrative (Detail) - USD ($) | Apr. 12, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration payment, financing activities | $ 89,000,000 | $ 164,000,000 | |
Galveston Bay Refinery and Related Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration payment | $ 131,000,000 | ||
Commodity derivatives | Level 3 | Ethanol prices | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Forward commodity price | 0.27 | ||
Commodity derivatives | Level 3 | Ethanol prices | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Forward commodity price | $ 1.22 | ||
Embedded derivatives in commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Embedded derivative renewal term | 5 years | ||
Embedded derivatives in commodity contracts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Probability of renewal first term | 50.00% | ||
Probability of renewal second term | 75.00% |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 41 | $ 171 | $ 190 | $ 342 |
Contingent consideration payment | 0 | 0 | (131) | (200) |
Unrealized and realized losses included in net income | 22 | 6 | 8 | 33 |
Settlements of derivative instruments | (6) | (1) | (10) | 1 |
Ending balance | $ 57 | $ 176 | $ 57 | $ 176 |
Fair Value Measurements - Losse
Fair Value Measurements - Losses Included in Earnings Relating to Assets Still Held at End of Period (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: | $ 17 | $ 6 | $ 9 | $ 30 |
Derivative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: | 17 | 4 | 8 | 19 |
Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: | $ 0 | $ 2 | $ 1 | $ 11 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments at Fair Value, Excluding Derivative Financial Instruments and Contingent Consideration (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value | |||
Financial assets: | |||
Investments | $ 25 | $ 25 | |
Other | 25 | 21 | |
Total financial assets | 50 | 46 | |
Financial liabilities: | |||
Long-term debt | [1] | 13,690 | 10,892 |
Deferred credits and other liabilities | 121 | 121 | |
Total financial liabilities | 13,811 | 11,013 | |
Carrying Value | |||
Financial assets: | |||
Investments | 2 | 2 | |
Other | 25 | 21 | |
Total financial assets | 27 | 23 | |
Financial liabilities: | |||
Long-term debt | [1] | 12,544 | 10,297 |
Deferred credits and other liabilities | 107 | 109 | |
Total financial liabilities | $ 12,651 | $ 10,406 | |
[1] | Excludes capital leases and debt issuance costs; however, includes amount classified as debt due within one year. |
Derivatives - Classification of
Derivatives - Classification of Gross Fair Values of Derivative Instruments, Excluding Cash Collateral (Detail) - Commodity derivatives - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset | $ 257 | $ 688 | |
Liability | 296 | 712 | |
Other current liabilities(a) | |||
Derivatives, Fair Value [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | 15 | 13 |
Deferred credits and other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | $ 42 | $ 47 |
[1] | Includes embedded derivatives. |
Derivatives - Open Commodity De
Derivatives - Open Commodity Derivative Contracts - Crude Oil (Details) - Crude Oil - Exchange Traded bbl in Thousands | 3 Months Ended | |
Sep. 30, 2017bbl | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 94.00% | |
Derivative contract expiration date | Dec. 31, 2017 | |
Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 33,043 | [1] |
Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 34,428 | [1] |
[1] | of the exchange-traded contracts expire in the fourth quarter of 2017. |
Derivatives - Open Commodity 92
Derivatives - Open Commodity Derivative Contracts - Refined Products (Detail) - Refined Products gal in Thousands | 3 Months Ended | |
Sep. 30, 2017gal | ||
Exchange Traded | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 100.00% | |
Derivative contract expiration date | Dec. 31, 2017 | |
Exchange Traded | Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Gallons) | 316,764 | [1] |
Exchange Traded | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Gallons) | 227,388 | [1] |
Over the Counter | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Gallons) | 33,388 | |
[1] | of the exchange-traded contracts expire in the fourth quarter of 2017. |
Derivatives - Effect of Commodi
Derivatives - Effect of Commodity Derivative Instruments in Statements of Income (Detail) - Commodity derivatives - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | $ (9) | $ (23) | $ (22) | $ (95) |
Sales and other operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | (10) | (3) | 8 | (4) |
Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | $ 1 | $ (20) | $ (30) | $ (91) |
Debt - Outstanding Borrowings (
Debt - Outstanding Borrowings (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017 | Feb. 10, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | ||||
Commercial paper | $ 0 | $ 0 | ||
Total | 13,269 | 11,069 | ||
Unamortized debt issuance costs | (61) | (44) | ||
Unamortized discount | [1] | (426) | (453) | |
Amounts due within one year | (29) | (28) | ||
Total long-term debt due after one year | 12,753 | 10,544 | ||
MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Amounts due within one year | (1) | (1) | ||
Total long-term debt due after one year | 6,848 | 4,422 | ||
Senior Notes | MPLX LP | MarkWest | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 63 | 63 | ||
Unamortized discount | (386) | (420) | ||
Capital Lease Obligations | Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Capital lease obligations | $ 299 | 319 | ||
Debt instrument maturity year, start | Jan. 1, 2017 | |||
Debt instrument maturity year, end | Dec. 31, 2028 | |||
364-day bank revolving credit facility due July 2018 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 0 | ||
Line of credit facility, expiration date | Jul. 20, 2018 | |||
Trade receivables securitization facility due July 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | |||
Trade receivables securitization facility due July 2019 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 0 | ||
Trade receivables securitization facility due July 2019 | Secured Debt | Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, expiration date | Jul. 19, 2019 | |||
Bank revolving credit facility due 2022 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 0 | ||
Line of credit facility, expiration date | Jul. 21, 2022 | |||
Term loan agreement due 2019 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 200 | ||
Line of credit facility, expiration date | Sep. 24, 2019 | |||
Senior notes, 2.700% due December 2018 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 600 | 600 | ||
Debt instrument, maturity date | Dec. 14, 2018 | |||
Debt instrument, interest rate | 2.70% | |||
Senior notes, 3.400% due December 2020 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 650 | 650 | ||
Debt instrument, maturity date | Dec. 15, 2020 | |||
Debt instrument, interest rate | 3.40% | |||
Senior notes, 5.125% due March 2021 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,000 | 1,000 | ||
Debt instrument, maturity date | Mar. 1, 2021 | |||
Debt instrument, interest rate | 5.125% | |||
Senior notes, 3.625%, due September 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 750 | 750 | ||
Debt instrument, maturity date | Sep. 15, 2024 | |||
Debt instrument, interest rate | 3.625% | |||
Senior notes, 6.500%, due March 2041 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,250 | 1,250 | ||
Debt instrument, maturity date | Mar. 1, 2041 | |||
Debt instrument, interest rate | 6.50% | |||
Senior notes, 4.750%, due September 2044 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 800 | 800 | ||
Debt instrument, maturity date | Sep. 15, 2044 | |||
Debt instrument, interest rate | 4.75% | |||
Senior notes, 5.850% due December 2045 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 250 | 250 | ||
Debt instrument, maturity date | Dec. 15, 2045 | |||
Debt instrument, interest rate | 5.85% | |||
Senior notes, 5.000%, due September 2054 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 400 | 400 | ||
Debt instrument, maturity date | Sep. 15, 2054 | |||
Debt instrument, interest rate | 5.00% | |||
MPLX term loan facility due 2019 | Unsecured Debt | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 250 | ||
Line of credit facility, expiration date | Nov. 20, 2019 | |||
MPLX bank revolving credit facility due 2022 | Line of Credit | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 420 | 0 | ||
Line of credit facility, expiration date | Jul. 21, 2022 | |||
MPLX senior notes, 5.500%, due February 2023 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 710 | 710 | ||
Debt instrument, maturity date | Feb. 15, 2023 | |||
Debt instrument, interest rate | 5.50% | |||
MPLX senior notes, 5.500%, due February 2023 | Senior Notes | MPLX LP | MarkWest | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Feb. 15, 2023 | |||
Debt instrument, interest rate | 5.50% | |||
MPLX senior notes, 4.500%, due July 2023 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 989 | 989 | ||
Debt instrument, maturity date | Jul. 15, 2023 | |||
Debt instrument, interest rate | 4.50% | |||
MPLX senior notes, 4.500%, due July 2023 | Senior Notes | MPLX LP | MarkWest | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Jul. 15, 2023 | |||
Debt instrument, interest rate | 4.50% | |||
MPLX senior notes, 4.875%, due December 2024 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,149 | 1,149 | ||
Debt instrument, maturity date | Dec. 1, 2024 | |||
Debt instrument, interest rate | 4.875% | |||
MPLX senior notes, 4.875%, due December 2024 | Senior Notes | MPLX LP | MarkWest | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Dec. 1, 2024 | |||
Debt instrument, interest rate | 4.875% | |||
MPLX senior notes, 4.000%, due February 2025 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500 | 500 | ||
Debt instrument, maturity date | Feb. 15, 2025 | |||
Debt instrument, interest rate | 4.00% | |||
MPLX senior notes, 4.875%, due June 2025 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,189 | 1,189 | ||
Debt instrument, maturity date | Jun. 1, 2025 | |||
Debt instrument, interest rate | 4.875% | |||
MPLX senior notes, 4.875%, due June 2025 | Senior Notes | MPLX LP | MarkWest | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Jun. 1, 2025 | |||
Debt instrument, interest rate | 4.875% | |||
MPLX senior notes, 4.125%, due March 2027 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,250 | $ 1,250 | 0 | |
Debt instrument, maturity date | Mar. 1, 2027 | |||
Debt instrument, interest rate | 4.125% | 4.125% | ||
MPLX senior notes, 5.200%, due March 2047 | Senior Notes | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,000 | $ 1,000 | $ 0 | |
Debt instrument, maturity date | Mar. 1, 2047 | |||
Debt instrument, interest rate | 5.20% | 5.20% | ||
[1] | Includes $386 million and $420 million of unamortized discount as of September 30, 2017 and December 31, 2016, respectively, related to the difference between the fair value and the principal amount of assumed MarkWest debt. |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Commercial paper – issued | $ 300 | $ 1,063 | |
Commercial paper - repayments | 300 | $ 1,063 | |
Commercial paper | 0 | $ 0 | |
Trade receivables securitization facility due July 2019 | |||
Debt Instrument [Line Items] | |||
Borrowings | 0 | ||
Repayments | 0 | ||
Long-term debt, gross | $ 0 |
Debt - MPC Bank Revolving Credi
Debt - MPC Bank Revolving Credit Facilities (Details) - USD ($) $ in Millions | Jul. 21, 2017 | Jul. 20, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Bank revolving credit facility due 2020 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 2,500 | |||
Debt instrument, term | 4 years | |||
Bank revolving credit facility due 2020 | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 0 | |||
Bank revolving credit facility due 2020 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | |||
364-day bank revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,000 | $ 1,000 | ||
Debt instrument, term | 364 days | 364 days | ||
364-day bank revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | $ 0 | ||
Bank revolving credit facility due 2022 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 2,500 | |||
Debt instrument, term | 5 years | |||
Bank revolving credit facility due 2022 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | $ 0 |
Debt - MPC Term Loan Agreement
Debt - MPC Term Loan Agreement (Details) $ in Millions | Mar. 31, 2017USD ($) |
Term loan agreement due 2019 | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 200 |
Debt - MPLX Credit Agreement (D
Debt - MPLX Credit Agreement (Details) - MPLX LP - USD ($) $ in Millions | Jul. 21, 2017 | Jul. 19, 2017 | Oct. 27, 2015 | Sep. 30, 2017 | Dec. 31, 2016 |
MPLX bank revolving credit facility due 2022 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 2,250 | $ 2,000 | |||
Debt instrument, term | 5 years | 5 years | |||
Borrowings | $ 420 | ||||
Interest rate during period | 2.70% | ||||
Repayments | $ 0 | ||||
Remaining borrowing capacity | 1,830 | ||||
MPLX bank revolving credit facility due 2022 | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | 3 | ||||
MPLX bank revolving credit facility due 2022 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 420 | $ 0 | |||
MPLX term loan facility due 2019 | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 250 |
Debt - MPLX Senior Notes (Detai
Debt - MPLX Senior Notes (Details) - MPLX LP - USD ($) $ in Millions | Sep. 01, 2017 | Mar. 01, 2017 | Sep. 30, 2017 | Feb. 10, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents | |||||
Debt Instrument [Line Items] | |||||
Payments to acquire business, gross | $ 420 | $ 1,500 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Net proceeds | $ 2,220 | ||||
Senior Notes | MPLX senior notes, 4.125%, due March 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,250 | $ 1,250 | $ 0 | ||
Debt instrument, interest rate | 4.125% | 4.125% | |||
Senior Notes | MPLX senior notes, 5.200%, due March 2047 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,000 | $ 1,000 | $ 0 | ||
Debt instrument, interest rate | 5.20% | 5.20% |
Supplemental Cash Flow Infor100
Supplemental Cash Flow Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Net cash provided by operating activities included: | |||
Interest paid (net of amounts capitalized) | $ 446 | $ 400 | |
Net income taxes paid to (refunded from) taxing authorities | 383 | 28 | |
Non-cash investing and financing activities: | |||
Contribution of assets to joint venture | $ 337 | [1] | $ 0 |
[1] | MarkWest’s contribution of assets to Sherwood Midstream and Sherwood Midstream Holdings. See Note 4. |
Supplemental Cash Flow Infor101
Supplemental Cash Flow Information - Reconciliation of Additions to Property, Plant and Equipment to Total Capital Expenditures (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Supplemental Cash Flow Elements [Abstract] | |||||
Additions to property, plant and equipment per consolidated statements of cash flows | $ 1,928 | $ 2,147 | |||
Asset retirement expenditures | 1 | 4 | |||
Decrease in capital accruals | (9) | (169) | |||
Total capital expenditures before acquisitions | 1,920 | 1,982 | |||
Acquisitions | [1] | 250 | (133) | ||
Capital expenditures | [2] | $ 738 | $ 692 | $ 2,170 | $ 1,849 |
[1] | The nine months ended September 30, 2017 reflects primarily the acquisition of the Ozark pipeline. The nine months ended September 30, 2016 reflects adjustments to the fair values of the property, plant and equipment, intangibles and goodwill acquired in connection with the MarkWest Merger. | ||||
[2] | Capital expenditures include changes in capital accruals. See Note 17 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. |
Accumulated Other Comprehens102
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (234) | $ (318) | |||
Other comprehensive loss before reclassifications | (2) | (7) | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | (31) | (37) | |||
Amortization - actuarial loss | 26 | 29 | |||
Amortization - settlement loss | 2 | 7 | |||
Other | (2) | (1) | |||
Tax effect | 2 | 0 | |||
Other comprehensive loss | $ (3) | $ (6) | (5) | (9) | |
Ending balance | (239) | (327) | (239) | (327) | |
Accumulated Defined Benefit Plans Adjustment | Pension Benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (233) | (255) | |||
Other comprehensive loss before reclassifications | (2) | (8) | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | [1] | (29) | (35) | ||
Amortization - actuarial loss | [1] | 27 | 28 | ||
Amortization - settlement loss | [1] | 2 | 7 | ||
Tax effect | 0 | 0 | |||
Other comprehensive loss | (2) | (8) | |||
Ending balance | (235) | (263) | (235) | (263) | |
Accumulated Defined Benefit Plans Adjustment | Other Benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (7) | (70) | |||
Other comprehensive loss before reclassifications | 0 | 1 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | [1] | (2) | (2) | ||
Amortization - actuarial loss | [1] | (1) | 1 | ||
Amortization - settlement loss | 0 | 0 | |||
Tax effect | 1 | 0 | |||
Other comprehensive loss | (2) | 0 | |||
Ending balance | (9) | (70) | (9) | (70) | |
Gain on Cash Flow Hedge | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 4 | 4 | |||
Other comprehensive loss before reclassifications | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Tax effect | 0 | 0 | |||
Other comprehensive loss | 0 | 0 | |||
Ending balance | 4 | 4 | 4 | 4 | |
Workers Compensation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 2 | 3 | |||
Other comprehensive loss before reclassifications | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Other | [2] | (2) | (1) | ||
Tax effect | 1 | 0 | |||
Other comprehensive loss | (1) | (1) | |||
Ending balance | $ 1 | $ 2 | $ 1 | $ 2 | |
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 19. | ||||
[2] | This amount was reclassified out of accumulated other comprehensive loss and is included in selling, general and administrative on the consolidated statements of income. |
Defined Benefit Pension and 103
Defined Benefit Pension and Other Postretirement Plans - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 33 | $ 29 | $ 99 | $ 86 |
Interest cost | 19 | 18 | 56 | 55 |
Expected return on plan assets | (25) | (24) | (75) | (73) |
Amortization – prior service credit | (10) | (12) | (29) | (35) |
Amortization – actuarial loss (gain) | 9 | 10 | 27 | 28 |
Amortization - settlement loss | 1 | 4 | 2 | 7 |
Net periodic benefit cost | 27 | 25 | 80 | 68 |
Other Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 6 | 8 | 19 | 24 |
Interest cost | 8 | 9 | 23 | 26 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization – prior service credit | 0 | (1) | (2) | (2) |
Amortization – actuarial loss (gain) | 0 | 0 | (1) | 1 |
Amortization - settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 14 | $ 16 | $ 39 | $ 49 |
Defined Benefit Pension and 104
Defined Benefit Pension and Other Postretirement Plans - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 120 |
Other Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | 7 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 23 |
Stock-Based Compensation Pla105
Stock-Based Compensation Plans - Summary of Stock Option Award Activity (Detail) - Stock Options | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance | shares | 9,531,440 |
Granted | shares | 1,214,112 |
Exercised | shares | (1,356,217) |
Forfeited, canceled or expired | shares | (78,386) |
Outstanding, ending balance | shares | 9,310,949 |
Weighted Average Exercise Price | |
Outstanding, beginning balance (in USD per share) | $ / shares | $ 28.93 |
Granted (in USD per share) | $ / shares | 50.57 |
Exercised (in USD per share) | $ / shares | 21.89 |
Forfeited, canceled or expired (in USD per share) | $ / shares | 41.97 |
Outstanding, ending balance (in USD per share) | $ / shares | $ 32.66 |
Stock-Based Compensation Pla106
Stock-Based Compensation Plans - Narrative (Detail) | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value (in USD per share) | $ 13.42 |
Performance Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in USD per share) | $ 0.92 |
Stock-Based Compensation Pla107
Stock-Based Compensation Plans - Summary of Restricted Stock Award Activity (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Restricted Stock | |
Number of Shares | |
Outstanding, beginning balance | shares | 1,250,343 |
Granted | shares | 574,602 |
RS’s Vested/RSU’s Issued | shares | (522,454) |
Forfeited | shares | (83,806) |
Outstanding, ending balance | shares | 1,218,685 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in USD per share) | $ / shares | $ 41.51 |
Granted (in USD per share) | $ / shares | 50.20 |
RS's Vested/RSU's Issued (in USD per share) | $ / shares | 42.48 |
Forfeited (in USD per share) | $ / shares | 44.29 |
Outstanding, ending balance (in USD per share) | $ / shares | $ 45 |
Restricted Stock Units | |
Number of Shares | |
Outstanding, beginning balance | shares | 361,117 |
Granted | shares | 28,573 |
RS’s Vested/RSU’s Issued | shares | (79,635) |
Forfeited | shares | (13,750) |
Outstanding, ending balance | shares | 296,305 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in USD per share) | $ / shares | $ 28.26 |
Granted (in USD per share) | $ / shares | 51.94 |
RS's Vested/RSU's Issued (in USD per share) | $ / shares | 24.54 |
Forfeited (in USD per share) | $ / shares | 50.20 |
Outstanding, ending balance (in USD per share) | $ / shares | $ 30.52 |
Stock-Based Compensation Pla108
Stock-Based Compensation Plans - Summary of Performance Unit Awards (Detail) - Performance Unit Awards | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Units | |
Outstanding, beginning balance | shares | 6,255,178 |
Granted | shares | 2,584,750 |
Exercised | shares | (1,854,728) |
Canceled | shares | (99,658) |
Outstanding, ending balance | shares | 6,885,542 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in USD per share) | $ / shares | $ 0.78 |
Granted (in USD per share) | $ / shares | 0.92 |
Exercised (in USD per share) | $ / shares | 0.85 |
Canceled (in USD per share) | $ / shares | 0.78 |
Outstanding, ending balance (in USD per share) | $ / shares | $ 0.81 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Pending Litigation | |
Loss Contingencies [Line Items] | |
Loss contingency, inestimable loss | For matters for which we have not recorded a liability, we are unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings, discovery or court proceedings. |
Commitments and Contingencies -
Commitments and Contingencies - Environmental Matters (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities for remediation | $ 117 | $ 132 |
Receivables for recoverable costs | $ 45 | $ 58 |
Commitments and Contingencie111
Commitments and Contingencies - MarkWest Environmental Proceeding (Details) - Pending Litigation - MarkWest Liberty Midstream Pipeline Launcher/Receiver Site [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Cash | |
Loss Contingencies [Line Items] | |
Damages sought | $ 1.2 |
Other Liabilities | |
Loss Contingencies [Line Items] | |
Damages sought | 1.6 |
Scenario, Previously Reported [Member] | Cash | |
Loss Contingencies [Line Items] | |
Damages sought | 2.4 |
Scenario, Previously Reported [Member] | Other Liabilities | |
Loss Contingencies [Line Items] | |
Damages sought | $ 3.6 |
Commitments and Contingencie112
Commitments and Contingencies - Other Lawsuits (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)lawsuit | |
Galveston Bay Refinery Fire | |
Loss Contingencies [Line Items] | |
Number of lawsuits | lawsuit | 4 |
Litigation settlement expense | $ 86 |
Emergency Pricing And Consumer Protection Laws | Pending Litigation | |
Loss Contingencies [Line Items] | |
Plaintiff | Commonwealth of Kentucky |
Damages sought | $ 89 |
Loss contingency, period of occurrence | during September and October 2005 |
Commitments and Contingencie113
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | May 01, 2016 | Sep. 30, 2015 | |
Indemnification Agreement | Marathon Oil Companies | |||
Loss Contingencies [Line Items] | |||
Guarantee obligation current carrying value | $ 2 | ||
Other Guarantees | |||
Loss Contingencies [Line Items] | |||
Maximum potential undiscounted payments | 93 | ||
Guarantee obligations maximum exposure per event | 50 | ||
LOOP and LOCAP LLC | Guarantee of Indebtedness of Others | Financial Guarantee | |||
Loss Contingencies [Line Items] | |||
Maximum potential undiscounted payments | $ 160 | ||
Line of credit facility, expiration date | Dec. 31, 2037 | ||
Centennial | Guarantee of Indebtedness of Others | Financial Guarantee | |||
Loss Contingencies [Line Items] | |||
Maximum potential undiscounted payments | $ 22 | ||
Centennial | Master Shelf Agreement [Member] | Financial Guarantee | |||
Loss Contingencies [Line Items] | |||
Line of credit facility, expiration date | Dec. 31, 2024 | ||
Crowley Ocean Partners | |||
Loss Contingencies [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | 50.00% | 50.00% |
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |||
Loss Contingencies [Line Items] | |||
Maximum potential undiscounted payments | $ 163 | ||
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | Crowley Term Loan | |||
Loss Contingencies [Line Items] | |||
Maximum borrowing capacity | $ 325 | ||
Crowley Blue Water Partners | |||
Loss Contingencies [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Crowley Blue Water Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |||
Loss Contingencies [Line Items] | |||
Maximum potential undiscounted payments | $ 139 |
Commitments and Contingencie114
Commitments and Contingencies - Contractual Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | $ 694 |
Supplementary Statistics - Supp
Supplementary Statistics - Supplementary Statistics (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Supplementary Statistics [Line Items] | |||||||
Income from operations | $ 1,576 | $ 435 | $ 2,850 | $ 1,825 | |||
Impairment expense | 0 | 0 | 0 | 130 | |||
Capital expenditures and investments | [1] | 791 | 761 | 2,900 | 2,232 | ||
Inventory market valuation adjustment | 0 | 0 | 0 | (370) | |||
MarEn Bakken | |||||||
Supplementary Statistics [Line Items] | |||||||
Cash paid to acquire equity method investments | 500 | ||||||
Refining & Marketing | |||||||
Supplementary Statistics [Line Items] | |||||||
Inventory market valuation adjustment | 345 | ||||||
Speedway | |||||||
Supplementary Statistics [Line Items] | |||||||
Inventory market valuation adjustment | 25 | ||||||
Midstream | Ozark Pipeline | |||||||
Supplementary Statistics [Line Items] | |||||||
Capital expenditures and investments | 220 | ||||||
Operating Segments | |||||||
Supplementary Statistics [Line Items] | |||||||
Income from operations | 1,661 | 771 | 3,168 | 2,512 | |||
Capital expenditures and investments | [2] | 759 | 732 | 2,808 | [3] | 2,126 | |
Cash paid to acquire equity method investments | 53 | 69 | 730 | [4] | 383 | [4] | |
Operating Segments | Refining & Marketing | |||||||
Supplementary Statistics [Line Items] | |||||||
Income from operations | 1,097 | 252 | 1,589 | [5] | 1,191 | [6] | |
Capital expenditures and investments | 198 | 251 | 570 | 756 | |||
Operating Segments | Speedway | |||||||
Supplementary Statistics [Line Items] | |||||||
Income from operations | 209 | 209 | 583 | 569 | [6] | ||
Capital expenditures and investments | 108 | 71 | 221 | 191 | |||
Operating Segments | Midstream | |||||||
Supplementary Statistics [Line Items] | |||||||
Income from operations | [7] | 355 | 310 | 996 | [5] | 752 | |
Capital expenditures and investments | 453 | 410 | 2,017 | [3] | 1,179 | ||
Corporate and Other | |||||||
Supplementary Statistics [Line Items] | |||||||
Income from operations | [8] | (86) | (65) | (251) | [5] | (194) | |
Capital expenditures and investments | [9] | 32 | 29 | 92 | 106 | ||
Capitalized interest | 13 | 15 | 39 | 47 | |||
Segment Reconciling Items | |||||||
Supplementary Statistics [Line Items] | |||||||
Pension settlement expenses | (1) | (4) | (2) | (7) | |||
Litigation | 0 | 0 | (86) | [10] | 0 | ||
Impairment expense | [11] | $ 2 | $ (267) | $ 21 | $ (486) | ||
[1] | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | ||||||
[2] | Capital expenditures include changes in capital accruals, acquisitions (including any goodwill) and investments in affiliates. | ||||||
[3] | The Midstream segment includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system for the nine months ended September 30, 2017. | ||||||
[4] | The nine months ended September 30, 2017 includes an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system. The nine months ended September 30, 2016 includes an adjustment of $143 million to the fair value of equity method investments acquired in connection with the MarkWest Merger | ||||||
[5] | We revised our operating segment presentation in the first quarter of 2017 in connection with the contribution of certain terminal, pipeline and storage assets to MPLX. The operating results for these assets, which were previously included in the Refining & Marketing segment, are now included in the Midstream segment. Comparable prior period information has been recast to reflect our revised presentation. The results for the pipeline and storage assets were recast effective January 1, 2015, and the results for the terminal assets were recast effective April 1, 2016. Prior to these dates, these assets were not considered businesses and, therefore, there are no financial results from which to recast segment results. | ||||||
[6] | The Refining & Marketing and Speedway segments include inventory LCM benefits of $345 million and $25 million, respectively, for the nine months ended September 30, 2016 | ||||||
[7] | Corporate overhead expenses attributable to MPLX are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | ||||||
[8] | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | ||||||
[9] | Includes capitalized interest of $13 million and $15 million for the three months ended September 30, 2017 and 2016, respectively, and $39 million and $47 million for the nine months ended September 30, 2017 and 2016, respectively. | ||||||
[10] | See Note 21 for further information on litigation matters. | ||||||
[11] | 2017 includes MPC’s share of gains related to the sale of assets remaining from the Sandpiper pipeline project. 2016 relates to impairments of goodwill and equity method investments. |
Supplementary Statistics - Oper
Supplementary Statistics - Operating Statistics (Detail) bbl / d in Thousands, gal in Millions, CFPD in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017USD ($)Storebbl / dCFPD$ / bbl$ / galgal | Sep. 30, 2016USD ($)Storebbl / dCFPD$ / bbl$ / galgal | Sep. 30, 2017USD ($)Storebbl / dCFPD$ / bbl$ / galgal | Sep. 30, 2016USD ($)Storebbl / dCFPD$ / bbl$ / galgal | ||||
Operating Statistics [Line Items ] | |||||||
MPC Consolidated Refined Product Sales Volumes (thousands of barrels per day) | [1] | 2,357 | 2,316 | 2,272 | 2,274 | ||
Refining & Marketing | |||||||
Refining & Marketing Operating Statistics | |||||||
Refining & Marketing refined product sales volume (thousands of barrels per day) | [2] | 2,357 | 2,307 | 2,263 | 2,265 | ||
Refining & Marketing gross margin (dollars per barrel) | $ / bbl | [3],[4] | 14.14 | 10.67 | 12.42 | 11.11 | ||
Crude oil capacity utilization percent | [5] | 102.00% | 100.00% | 96.00% | 95.00% | ||
Refinery throughputs (thousands of barrels per day) | [6] | 2,017 | 1,926 | 1,917 | 1,864 | ||
Sour crude oil throughput percent | 57.00% | 59.00% | 61.00% | 60.00% | |||
WTI-priced crude oil throughput percent | 23.00% | 20.00% | 20.00% | 20.00% | |||
Refined product yields (thousands of barrels per day) | [6] | 2,060 | 1,958 | 1,957 | 1,898 | ||
Inter-refinery transfers | 80 | 89 | 74 | 80 | |||
Refinery direct operating costs (dollars per barrel): | |||||||
Planned turnaround and major maintenance | $ / bbl | [7] | 1.20 | 1.62 | 1.69 | 1.72 | ||
Depreciation and amortization | $ / bbl | [7] | 1.34 | 1.42 | 1.44 | 1.46 | ||
Other manufacturing | $ / bbl | [7],[8] | 3.83 | 4.01 | 4.10 | 4.03 | ||
Total | $ / bbl | [7] | 6.37 | 7.05 | 7.23 | 7.21 | ||
Refining & Marketing | Crude oil refined | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [6] | 1,845 | 1,791 | 1,741 | 1,708 | ||
Refining & Marketing | Other charge and blendstocks | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [6] | 172 | 135 | 176 | 156 | ||
Refining & Marketing | Gasoline | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [6] | 939 | 907 | 910 | 908 | ||
Refining & Marketing | Distillates | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [6] | 673 | 647 | 627 | 616 | ||
Refining & Marketing | Propane | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [6] | 38 | 38 | 35 | 35 | ||
Refining & Marketing | Feedstocks and special products | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [6] | 298 | 253 | 285 | 245 | ||
Refining & Marketing | Heavy fuel oil | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [6] | 45 | 43 | 36 | 36 | ||
Refining & Marketing | Asphalt | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [6] | 67 | 70 | 64 | 58 | ||
Refining & Marketing | Gulf Coast: | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [9] | 1,340 | 1,258 | 1,260 | 1,256 | ||
Sour crude oil throughput percent | 69.00% | 72.00% | 75.00% | 73.00% | |||
WTI-priced crude oil throughput percent | 14.00% | 8.00% | 10.00% | 7.00% | |||
Refined product yields (thousands of barrels per day) | [9] | 1,377 | 1,285 | 1,294 | 1,285 | ||
Refinery direct operating costs (dollars per barrel): | |||||||
Planned turnaround and major maintenance | $ / bbl | [7] | 0.90 | 2.05 | 1.86 | 1.87 | ||
Depreciation and amortization | $ / bbl | [7] | 1.05 | 1.14 | 1.15 | 1.13 | ||
Other manufacturing | $ / bbl | [7],[8] | 3.52 | 3.70 | 3.81 | 3.62 | ||
Total | $ / bbl | [7] | 5.47 | 6.89 | 6.82 | 6.62 | ||
Refining & Marketing | Gulf Coast: | Crude oil refined | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [9] | 1,123 | 1,073 | 1,041 | 1,057 | ||
Refining & Marketing | Gulf Coast: | Other charge and blendstocks | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [9] | 217 | 185 | 219 | 199 | ||
Refining & Marketing | Gulf Coast: | Gasoline | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 538 | 511 | 525 | 530 | ||
Refining & Marketing | Gulf Coast: | Distillates | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 438 | 411 | 393 | 407 | ||
Refining & Marketing | Gulf Coast: | Propane | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 25 | 27 | 25 | 26 | ||
Refining & Marketing | Gulf Coast: | Feedstocks and special products | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 326 | 289 | 310 | 283 | ||
Refining & Marketing | Gulf Coast: | Heavy fuel oil | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 31 | 30 | 24 | 24 | ||
Refining & Marketing | Gulf Coast: | Asphalt | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 19 | 17 | 17 | 15 | ||
Refining & Marketing | Midwest: | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [9] | 757 | 757 | 731 | 688 | ||
Sour crude oil throughput percent | 38.00% | 39.00% | 41.00% | 39.00% | |||
WTI-priced crude oil throughput percent | 38.00% | 39.00% | 34.00% | 41.00% | |||
Refined product yields (thousands of barrels per day) | [9] | 763 | 762 | 737 | 693 | ||
Refinery direct operating costs (dollars per barrel): | |||||||
Planned turnaround and major maintenance | $ / bbl | [7] | 1.60 | 0.72 | 1.22 | 1.26 | ||
Depreciation and amortization | $ / bbl | [7] | 1.72 | 1.72 | 1.80 | 1.90 | ||
Other manufacturing | $ / bbl | [7],[8] | 3.96 | 4.04 | 4.19 | 4.29 | ||
Total | $ / bbl | [7] | 7.28 | 6.48 | 7.21 | 7.45 | ||
Refining & Marketing | Midwest: | Crude oil refined | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [9] | 722 | 718 | 700 | 651 | ||
Refining & Marketing | Midwest: | Other charge and blendstocks | |||||||
Refining & Marketing Operating Statistics | |||||||
Refinery throughputs (thousands of barrels per day) | [9] | 35 | 39 | 31 | 37 | ||
Refining & Marketing | Midwest: | Gasoline | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 401 | 396 | 385 | 378 | ||
Refining & Marketing | Midwest: | Distillates | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 235 | 236 | 234 | 209 | ||
Refining & Marketing | Midwest: | Propane | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 14 | 13 | 11 | 11 | ||
Refining & Marketing | Midwest: | Feedstocks and special products | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 50 | 51 | 47 | 40 | ||
Refining & Marketing | Midwest: | Heavy fuel oil | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 15 | 13 | 13 | 12 | ||
Refining & Marketing | Midwest: | Asphalt | |||||||
Refining & Marketing Operating Statistics | |||||||
Refined product yields (thousands of barrels per day) | [9] | 48 | 53 | 47 | 43 | ||
Speedway | |||||||
Speedway Operating Statistics(j) | |||||||
Convenience stores at period-end | Store | 2,734 | [10] | 2,773 | 2,734 | [10] | 2,773 | |
Gasoline and distillate sales (millions of gallons) | gal | 1,464 | [10] | 1,575 | 4,332 | [10] | 4,605 | |
Gasoline and distillate gross margin (dollars per gallon) | $ / gal | [11] | 0.1772 | [10] | 0.1773 | 0.1727 | [10] | 0.1668 |
Merchandise sales (in millions) | $ | $ 1,295 | [10] | $ 1,338 | $ 3,693 | [10] | $ 3,777 | |
Merchandise gross margin (in millions) | $ | $ 374 | [10] | $ 386 | $ 1,065 | [10] | $ 1,085 | |
Merchandise margin percent | 28.90% | [10] | 28.90% | 28.80% | [10] | 28.70% | |
Same store gasoline sales volume (period over period) percentage | (3.10%) | [10] | (0.60%) | (1.60%) | [10] | 0.20% | |
Merchandise sales excluding cigarettes (period over period) percentage | [12] | 0.30% | [10] | 4.00% | 1.50% | [10] | 3.00% |
Midstream | |||||||
Midstream Operating Statistics | |||||||
Crude oil and refined product pipeline throughputs (thousands of barrels per day) | [13] | 3,562 | 3,113 | 3,299 | 2,953 | ||
Terminal throughput (thousands of barrels per day) | [14] | 1,496 | 1,517 | 1,470 | 1,510 | ||
Gathering system throughput (MMcf/d) | CFPD | [15] | 3,729 | 3,306 | 3,415 | 3,313 | ||
Natural gas processed (MMcf/d) | CFPD | [15] | 6,581 | 5,906 | 6,336 | 5,691 | ||
C2 and NGLs fractionated (thousands barrels per day) | [15] | 397 | 348 | 384 | 330 | ||
[1] | Total average daily volumes of refined product sales to wholesale, branded and retail customers. | ||||||
[2] | Includes intersegment sales. | ||||||
[3] | Excludes LCM inventory valuation adjustments. Comparable prior period information for gross margin has been recast in connection with the contribution of certain pipeline assets to MPLX on March 1, 2017. | ||||||
[4] | Sales revenue less cost of refinery inputs and purchased products, divided by total refinery throughputs. | ||||||
[5] | Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. | ||||||
[6] | Excludes inter-refinery volumes of 80 mbpd and 89 mbpd for the three months ended September 30, 2017 and 2016, respectively, and 74 mbpd and 80 mbpd for the nine months ended September 30, 2017 and 2016, respectively. | ||||||
[7] | Per barrel of total refinery throughputs. | ||||||
[8] | Includes utilities, labor, routine maintenance and other operating costs. | ||||||
[9] | Includes inter-refinery transfer volumes. | ||||||
[10] | Third quarter and year-to-date 2017 operating statistics do not reflect any information for the 41 travel centers contributed to PFJ Southeast, whereas they are reflected in the third quarter and year-to-date 2016 operating statistics. | ||||||
[11] | Excludes LCM inventory valuation adjustments. The price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees, divided by gasoline and distillate sales volume. | ||||||
[12] | Excludes cigarettes. | ||||||
[13] | Includes common-carrier pipelines and private pipelines contributed to MPLX, excluding equity method investments. | ||||||
[14] | Includes the results of the terminal assets contributed to MPLX from the date the assets became a business, April 1, 2016. | ||||||
[15] | Includes amounts related to unconsolidated equity method investments on a 100 percent basis. |