Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001510295 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35054 | |
Entity Registrant Name | Marathon Petroleum Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1284632 | |
Entity Address, Address Line One | 539 South Main Street | |
Entity Address, City or Town | Findlay | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45840-3229 | |
City Area Code | 419 | |
Local Phone Number | 422-2121 | |
Title of 12(b) Security | Common Stock, par value $.01 | |
Trading Symbol | MPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 540,994,934 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Revenues and other income: | |||
Sales and other operating revenues | [1] | $ 38,058 | $ 22,711 |
Income from equity method investments | 142 | 91 | |
Net gain (loss) on disposal of assets | (18) | 3 | |
Other income | 202 | 77 | |
Total revenues and other income | 38,384 | 22,882 | |
Costs and expenses: | |||
Cost of revenues (excludes items below) | 35,068 | 21,084 | |
Depreciation and amortization | 805 | 844 | |
Selling, general and administrative expenses | 603 | 575 | |
Other taxes | 192 | 162 | |
Total costs and expenses | 36,668 | 22,665 | |
Income from continuing operations | 1,716 | 217 | |
Net interest and other financial costs | 262 | 353 | |
Income (loss) from continuing operations before income taxes | 1,454 | (136) | |
Provision for income taxes on continuing operations | 282 | 34 | |
Income (loss) from continuing operations, net of tax | 1,172 | (170) | |
Income from discontinued operations, net of tax | 0 | 234 | |
Net income | 1,172 | 64 | |
Less net income attributable to: | |||
Redeemable noncontrolling interest | 21 | 20 | |
Noncontrolling interests | 306 | 286 | |
Net income (loss) attributable to MPC | $ 845 | $ (242) | |
Basic: | |||
Continuing operations | $ 1.50 | $ (0.73) | |
Discontinued operations | 0 | 0.36 | |
Net income (loss) per share | $ 1.50 | $ (0.37) | |
Weighted average shares outstanding | 564 | 651 | |
Diluted: | |||
Continuing operations | $ 1.49 | $ (0.73) | |
Discontinued operations | 0 | 0.36 | |
Net income (loss) per share | $ 1.49 | $ (0.37) | |
Weighted average shares outstanding | 568 | 651 | |
[1] | Includes related party sales. See Note 7 for additional information |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 1,172 | $ 64 |
Other comprehensive income (loss) | (7) | 1 |
Comprehensive income | 1,165 | 65 |
Less comprehensive income attributable to: | ||
Redeemable noncontrolling interest | 21 | 20 |
Noncontrolling interests | 306 | 286 |
Comprehensive income (loss) attributable to MPC | 838 | (241) |
Actuarial changes | ||
Other comprehensive income (loss) | 12 | 9 |
Prior service | ||
Other comprehensive income (loss) | (13) | (8) |
Other | ||
Other comprehensive income (loss) | $ (6) | $ 0 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Actuarial changes | ||
OCI, tax expense (benefit) | $ 4 | $ 3 |
Prior service | ||
OCI, tax expense (benefit) | (4) | (3) |
Other | ||
OCI, tax expense (benefit) | $ (2) | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 7,148 | $ 5,291 |
Short-term investments | 3,449 | 5,548 |
Receivables, less allowance for doubtful accounts of $39 and $40, respectively | 15,661 | 11,034 |
Inventories | 9,482 | 8,055 |
Other current assets | 648 | 568 |
Total current assets | 36,388 | 30,496 |
Equity method investments | 5,514 | 5,409 |
Property, plant and equipment, net | 37,145 | 37,440 |
Goodwill | 8,256 | 8,256 |
Right of use assets | 1,331 | 1,372 |
Other noncurrent assets | 2,318 | 2,400 |
Total assets | 90,952 | 85,373 |
Liabilities | ||
Accounts payable | 19,791 | 13,700 |
Payroll and benefits payable | 976 | 911 |
Accrued taxes | 1,691 | 1,231 |
Debt due within one year | 1,075 | 571 |
Operating lease liabilities | 420 | 438 |
Other current liabilities | 1,167 | 1,047 |
Total current liabilities | 25,120 | 17,898 |
Long-term debt | 25,634 | 24,968 |
Deferred income taxes | 5,571 | 5,638 |
Defined benefit postretirement plan obligations | 1,063 | 1,015 |
Long-term operating lease liabilities | 905 | 927 |
Deferred credits and other liabilities | 1,360 | 1,346 |
Total liabilities | 59,653 | 51,792 |
Commitments and contingencies (see Note 22) | ||
Redeemable noncontrolling interest | 965 | 965 |
Equity | ||
Preferred stock, no shares issued and outstanding (par value $0.01 per share, 30 million shares authorized) | 0 | 0 |
Common stock: | ||
Issued – 987 million and 984 million shares (par value $0.01 per share, 2 billion shares authorized) | 10 | 10 |
Held in treasury, at cost – 442 million and 405 million shares | (22,711) | (19,904) |
Additional paid-in capital | 33,327 | 33,262 |
Retained earnings | 13,420 | 12,905 |
Accumulated other comprehensive loss | (74) | (67) |
Total MPC stockholders’ equity | 23,972 | 26,206 |
Noncontrolling interests | 6,362 | 6,410 |
Total equity | 30,334 | 32,616 |
Total liabilities, redeemable noncontrolling interest and equity | $ 90,952 | $ 85,373 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 39 | $ 40 |
Preferred stock: | ||
Preferred Stock, Shares Issued | 0 | |
Preferred Stock, Shares Outstanding | 0 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 30,000,000 | |
Common stock: | ||
Common Stock, Shares, Issued | 987,000,000 | 984,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Common Stock, Shares Authorized | 2,000,000,000 | |
Treasury Stock, Shares | (442,000,000) | (405,000,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Operating activities: | |||
Net income | $ 1,172 | $ 64 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred financing costs and debt discount | 19 | 22 | |
Depreciation and amortization | 805 | 844 | |
Pension and other postretirement benefits, net | 35 | (158) | |
Deferred income taxes | (52) | 24 | |
Net (gain) loss on disposal of assets | 18 | (3) | |
Income from equity method investments | (142) | (91) | |
Distributions from equity method investments | 160 | 142 | |
Income from discontinued operations | 0 | (234) | |
Changes in income tax receivable | (13) | 54 | |
Changes in the fair value of derivative instruments | (71) | (43) | |
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||
Current receivables | (4,627) | (1,723) | |
Inventories | (1,423) | (408) | |
Current accounts payable and accrued liabilities | 6,717 | 1,821 | |
Right of use assets and operating lease liabilities, net | 2 | 5 | |
All other, net | (87) | (51) | |
Cash provided by operating activities - continuing operations | 2,513 | 265 | |
Cash provided by operating activities - discontinued operations | 0 | 189 | |
Net cash provided by operating activities | 2,513 | 454 | |
Investing activities: | |||
Additions to property, plant and equipment | (495) | (304) | |
Disposal of assets | 7 | 76 | |
Investments – acquisitions and contributions | (112) | (51) | |
Investments - redemptions, repayments and return of capital | 0 | 1 | |
Purchases of short-term investments | (364) | 0 | |
Sales of short-term investments | 1,014 | 0 | |
Maturities of short-term investments | 1,443 | 0 | |
All other, net | 215 | 98 | |
Cash provided by (used in) investing activities - continuing operations | 1,708 | (180) | |
Cash used in investing activities - discontinued operations | 0 | (87) | |
Net cash provided by (used in) investing activities | 1,708 | (267) | |
Financing activities: | |||
Commercial paper – issued | 0 | 6,049 | |
Commercial paper - repayments | 0 | (5,356) | |
Long-term debt – borrowings | 2,385 | 6,785 | |
Long-term debt – repayments | (1,218) | (6,613) | |
Debt issuance costs | (16) | 0 | |
Issuance of common stock | 96 | 23 | |
Common stock repurchased | (2,846) | 0 | |
Dividends paid | (330) | (379) | |
Distributions to noncontrolling interests | (311) | (320) | |
Repurchases of noncontrolling interests | (100) | (155) | |
All other, net | (24) | (18) | |
Net cash provided by (used in) financing activities | (2,364) | 16 | |
Net change in cash, cash equivalents and restricted cash | 1,857 | 203 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning balance | 5,294 | [1] | 416 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, ending balance | 7,151 | [1] | 625 |
Discontinued Operations, Held-for-sale | |||
Financing activities: | |||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning balance | 0 | 140 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents, ending balance | $ 0 | $ 134 | |
[1] | Restricted cash is included in other current assets on our consolidated balance sheets. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Consolidated Statements of Equity) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests |
Beginning balance at Dec. 31, 2020 | $ 29,252 | $ 10 | $ (15,157) | $ 33,208 | $ 4,650 | $ (512) | $ 7,053 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 44 | (242) | 286 | ||||
Dividends declared on common stock | (379) | (379) | |||||
Distributions to noncontrolling interests | (300) | (300) | |||||
Other comprehensive income (loss) | 1 | 1 | |||||
Shares returned - stock based compensation | (1) | 0 | |||||
Shares issued - stock based compensation | 18 | ||||||
Net shares issued - stock based compensation | 17 | ||||||
Equity transactions of MPLX | (124) | (4) | (120) | ||||
Ending balance at Mar. 31, 2021 | 28,511 | 10 | (15,158) | 33,222 | 4,029 | (511) | 6,919 |
Beginning balance at Dec. 31, 2021 | 32,616 | 10 | (19,904) | 33,262 | 12,905 | (67) | 6,410 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,151 | 845 | 306 | ||||
Dividends declared on common stock | (330) | (330) | |||||
Distributions to noncontrolling interests | (290) | (290) | |||||
Other comprehensive income (loss) | (7) | (7) | |||||
Shares repurchased | (2,807) | (2,807) | |||||
Shares returned - stock based compensation | 0 | (1) | |||||
Shares issued - stock based compensation | 90 | ||||||
Net shares issued - stock based compensation | 89 | ||||||
Equity transactions of MPLX | (88) | (25) | (63) | ||||
Ending balance at Mar. 31, 2022 | $ 30,334 | $ 10 | $ (22,711) | $ 33,327 | $ 13,420 | $ (74) | $ 6,362 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Shares of Common Stock) - shares shares in Millions | Total | Common Stock |
Beginning balance at Dec. 31, 2020 | 980 | |
Number of common shares issued - stock compensation | 1 | |
Ending balance at Mar. 31, 2021 | 981 | |
Beginning balance at Dec. 31, 2021 | 984 | 984 |
Number of common shares issued - stock compensation | 3 | |
Ending balance at Mar. 31, 2022 | 987 | 987 |
Consolidated Statements of Eq_3
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Shares of Treasury Stock) - shares shares in Millions | Total | Treasury Stock |
Beginning balance at Dec. 31, 2020 | (329) | |
Number of shares repurchased | 0 | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Mar. 31, 2021 | (329) | |
Beginning balance at Dec. 31, 2021 | (405) | (405) |
Number of shares repurchased | (37) | (37) |
Number of shares returned - stock compensation | 0 | |
Ending balance at Mar. 31, 2022 | (442) | (442) |
Consolidated Statements of Eq_4
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Redeemable Noncontrolling Interest) - USD ($) $ in Millions | Total | Redeemable Non-controlling Interest |
Beginning balance at Dec. 31, 2020 | $ 968 | |
Net income attributable to redeemable noncontrolling interest | $ 20 | 20 |
Distributions to noncontrolling interests | (20) | |
Ending balance at Mar. 31, 2021 | 968 | |
Beginning balance at Dec. 31, 2021 | 965 | 965 |
Net income attributable to redeemable noncontrolling interest | 21 | 21 |
Distributions to noncontrolling interests | (21) | |
Ending balance at Mar. 31, 2022 | $ 965 | $ 965 |
Consolidated Statements of Eq_5
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share of common stock (in dollars per share) | $ 0.58 | $ 0.58 |
Description of the Business and
Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business We are a leading, integrated, downstream energy company headquartered in Findlay, Ohio. We operate the nation's largest refining system. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market and to independent entrepreneurs who operate branded outlets. We also sell transportation fuel to consumers through direct dealer locations under long-term supply contracts. MPC’s midstream operations are primarily conducted through MPLX LP (“MPLX”), which owns and operates crude oil and light product transportation and logistics infrastructure as well as gathering, processing and fractionation assets. We own the general partner and a majority limited partner interest in MPLX. See Note 5. 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. Certain information and disclosures derived from our audited annual financial statements, prepared in accordance with GAAP, have been condensed or omitted from these interim 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, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards | ACCOUNTING STANDARDS Recently Adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance In November 2021, the FASB issued guidance requiring disclosures for certain types of government assistance that have been accounted for by analogy to grant or contribution models. Disclosures will include information about the type of transactions, accounting and the impact on financial statements. We prospectively adopted this standard in the first quarter of 2022. The adoption of this standard did not have a material impact on our financial statements or disclosures. |
Short-term Investments
Short-term Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | SHORT-TERM INVESTMENTS Investments Components The components of investments were as follows: March 31, 2022 (In millions) Fair Value Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Available-for-sale debt securities Commercial paper Level 2 $ 2,481 $ — $ (5) $ 2,476 $ 270 $ 2,206 Certificates of deposit and time deposits Level 2 4,540 — (3) 4,537 3,350 1,187 U.S. government securities Level 1 28 — — 28 — 28 Corporate notes and bonds Level 2 28 — — 28 — 28 Total available-for-sale debt securities $ 7,077 $ — $ (8) $ 7,069 $ 3,620 $ 3,449 Cash 3,528 3,528 — Total $ 10,597 $ 7,148 $ 3,449 December 31, 2021 (In millions) Fair Value Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Available-for-sale debt securities Commercial paper Level 2 $ 4,905 $ — $ (1) $ 4,904 $ 868 $ 4,036 Certificates of deposit and time deposits Level 2 2,024 — — 2,024 750 1,274 U.S. government securities Level 1 28 — — 28 — 28 Corporate notes and bonds Level 2 271 — — 271 61 210 Total available-for-sale debt securities $ 7,228 $ — $ (1) $ 7,227 $ 1,679 $ 5,548 Cash 3,612 3,612 — Total $ 10,839 $ 5,291 $ 5,548 Our investment policy includes concentration limits and credit rating requirements which limits our investments to high quality, short term and highly liquid securities. Unrealized losses on debt investments held from May 14, 2021 to March 31, 2022 were not material. Realized gains/losses were not material. All of our available-for-sale debt securities held as of March 31, 2022 mature within one year or less or are readily available for use. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On May 14, 2021, we completed the sale of Speedway, our company-owned and operated retail transportation fuel and convenience store business, to 7-Eleven for cash proceeds of approximately $21.38 billion. After-tax proceeds were approximately $17.22 billion. This transaction resulted in a pretax gain of $11.68 billion ($8.02 billion after income taxes) after deducting the book value of the net assets and certain other adjustments. The proceeds and related Speedway sale gain may be adjusted in future periods based on provisions of the purchase and sale agreement that allow for adjustments of working capital amounts and other miscellaneous items subsequent to the transaction closing date of May 14, 2021. Results of operations for Speedway are reflected through the close of the sale. The following table presents Speedway results and the gain on sale as reported in income from discontinued operations, net of tax, within our consolidated statements of income. Three Months Ended (In millions) 2021 Total revenues and other income $ 5,339 Costs and expenses: Cost of revenues (excludes items below) 4,906 Depreciation and amortization 2 Selling, general and administrative expenses 73 Other taxes 51 Total costs and expenses 5,032 Income from operations 307 Net interest and other financial costs 4 Income before income taxes 303 Provision for income taxes 69 Income from discontinued operations, net of tax $ 234 Fuel Supply Agreements |
Master Limited Partnership
Master Limited Partnership | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Master Limited Partnership | MASTER LIMITED PARTNERSHIP We own the general partner and a majority limited partner interest in MPLX, which owns and operates crude oil and light product transportation and logistics infrastructure as well as gathering, processing and fractionation assets. We control MPLX through our ownership of the general partner interest. As of March 31, 2022, we owned approximately 64 percent of the outstanding MPLX common units. Unit Repurchase Program On November 2, 2020, MPLX announced the board authorization of a unit repurchase program for the repurchase of up to $1.0 billion of MPLX’s outstanding common units held by the public. Total unit repurchases were as follows for the respective periods: Three Months Ended (In millions, except per share data) 2022 2021 Number of common units repurchased 3 6 Cash paid for common units repurchased $ 100 $ 155 Average cost per unit $ 32.06 $ 24.78 As of March 31, 2022, MPLX had $237 million remaining under its unit repurchase authorization. Agreements We have various long-term, fee-based commercial agreements with MPLX. Under these agreements, MPLX provides transportation, storage, distribution and marketing services to us. With certain exceptions, these agreements generally contain minimum volume commitments. These transactions are eliminated in consolidation but are reflected as intersegment transactions between our Refining & Marketing and Midstream segments. 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 but are reflected as intersegment transactions between our Corporate and Midstream segments. Noncontrolling Interest As a result of equity transactions of MPLX, we are required to adjust non-controlling interest and additional paid-in capital. Changes in MPC’s additional paid-in capital resulting from changes in its ownership interests in MPLX were as follows: Three Months Ended (In millions) 2022 2021 Decrease due to change in ownership $ (37) $ (35) Tax impact 12 31 Decrease in MPC's additional paid-in capital, net of tax $ (25) $ (4) |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Consolidated VIE We control MPLX through our ownership of its general partner. MPLX is a VIE because the limited partners do not have substantive kick-out or participating rights over the general partner. We are the primary beneficiary of MPLX because in addition to our significant economic interest, we also have the ability, through our 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 interest owned by the public. We also record a redeemable noncontrolling interest related to MPLX’s Series A preferred units. The creditors of MPLX do not have recourse to MPC’s general credit through guarantees or other financial arrangements, except as noted. MPC has effectively guaranteed certain indebtedness of LOOP LLC (“LOOP”) and LOCAP LLC (“LOCAP”), in which MPLX holds an interest. See Note 22 for more information. The assets of MPLX can only be used to settle its own obligations and its creditors have no recourse to our assets, except as noted earlier. The following table presents balance sheet information for the assets and liabilities of MPLX, which are included in our balance sheets. (In millions) March 31, December 31, Assets Cash and cash equivalents $ 42 $ 13 Receivables, less allowance for doubtful accounts 753 660 Inventories 149 142 Other current assets 54 55 Equity method investments 4,079 3,981 Property, plant and equipment, net 19,912 20,042 Goodwill 7,657 7,657 Right of use assets 280 268 Other noncurrent assets 850 891 Liabilities Accounts payable $ 745 $ 671 Payroll and benefits payable 3 6 Accrued taxes 71 75 Debt due within one year 999 499 Operating lease liabilities 47 59 Other current liabilities 353 304 Long-term debt 18,757 18,072 Deferred income taxes 14 10 Long-term operating lease liabilities 228 205 Deferred credits and other liabilities 570 559 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Transactions with related parties were as follows: Three Months Ended (In millions) 2022 2021 Sales to related parties $ 19 $ 43 Purchases from related parties 282 203 Sales to related parties, which are included in sales and other operating revenues, consist primarily of refined product sales to certain of our equity affiliates. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | EARNINGS (LOSS) PER SHARE Three Months Ended (In millions, except per share data) 2022 2021 Income (loss) from continuing operations, net of tax $ 1,172 $ (170) Less: Net income attributable to noncontrolling interest 327 306 Net income allocated to participating securities — — Income (loss) from continuing operations available to common stockholders 845 (476) Income from discontinued operations, net of tax — 234 Income (loss) available to common stockholders $ 845 $ (242) Weighted average common shares outstanding: Basic 564 651 Effect of dilutive securities 4 — Diluted 568 651 Income (loss) available to common stockholders per share: Basic: Continuing operations $ 1.50 $ (0.73) Discontinued operations — 0.36 Net income (loss) per share $ 1.50 $ (0.37) Diluted: Continuing operations $ 1.49 $ (0.73) Discontinued operations — 0.36 Net income (loss) per share $ 1.49 $ (0.37) The following table summarizes the shares that were anti-dilutive and, therefore, were excluded from the diluted share calculation. Three Months Ended (In millions) 2022 2021 Shares issuable under stock-based compensation plans — 10 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | EQUITY On February 2, 2022, our board of directors approved an incremental $5.0 billion share repurchase authorization. The authorization has no expiration date. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, tender offers, accelerated share repurchases or open market solicitations for shares, some of which may be effected 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 suspended or discontinued at any time. Total share repurchases were as follows for the respective periods: Three Months Ended (In millions, except per share data) 2022 2021 Number of shares repurchased 37 — Cash paid for shares repurchased $ 2,846 $ — Average cost per share $ 75.88 $ — |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have two reportable segments: Refining & Marketing and Midstream. Each of these segments is organized and managed based upon the nature of the products and services it offers. • Refining & Marketing – refines crude oil and other feedstocks, including renewable feedstocks, at our refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States, purchases refined products and ethanol for resale and distributes refined products, including renewable diesel, through transportation, storage, distribution and marketing services provided largely by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to independent entrepreneurs who operate primarily Marathon ® branded outlets and through long-term fuel supply contracts with direct dealers who operate locations mainly under the ARCO ® brand. • Midstream – transports, stores, distributes and markets crude oil and refined products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges; gathers, processes and transports natural gas; and gathers, transports, fractionates, stores and markets NGLs. The Midstream segment primarily reflects the results of MPLX. During the first quarter of 2022, our chief operating decision maker (“CODM”) began to evaluate the performance of our segments using segment adjusted EBITDA. We have modified our presentation of segment performance to be consistent with this change, including prior periods presented for consistent and comparable presentation. Amounts included in income (loss) from continuing operations before income taxes and excluded from segment adjusted EBITDA include: (i) depreciation and amortization; (ii) net interest and other financial costs; (iii) turnaround expenses and (iv) other adjustments as deemed necessary. These items are either: (i) believed to be non-recurring in nature; (ii) not believed to be allocable or controlled by the segment; or (iii) are not tied to the operational performance of the segment. Assets by segment are not a measure used to assess the performance of the company by the CODM and thus are not reported in our disclosures. Three Months Ended (In millions) 2022 2021 Segment adjusted EBITDA for reportable segments Refining & Marketing $ 1,374 $ 23 Midstream 1,403 1,322 Total reportable segments $ 2,777 $ 1,345 Reconciliation of segment adjusted EBITDA for reportable segments to income (loss) from continuing operations before income taxes Total reportable segments $ 2,777 $ 1,345 Corporate (138) (125) Refining planned turnaround costs (145) (112) Storm impacts — (47) Litigation 27 — Depreciation and amortization (805) (844) Net interest and other financial costs (262) (353) Income (loss) from continuing operations before income taxes $ 1,454 $ (136) Three Months Ended (In millions) 2022 2021 Sales and other operating revenues Refining & Marketing Revenues from external customers (a) $ 36,792 $ 21,661 Intersegment revenues 36 28 Refining & Marketing segment revenues 36,828 21,689 Midstream Revenues from external customers (a) 1,266 1,050 Intersegment revenues 1,247 1,199 Midstream segment revenues 2,513 2,249 Total segment revenues 39,341 23,938 Less: intersegment revenues 1,283 1,227 Consolidated sales and other operating revenues (a) $ 38,058 $ 22,711 (a) Includes related party sales. See Note 7 for additional information. Three Months Ended (In millions) 2022 2021 Income from equity method investments Refining & Marketing $ 12 $ 5 Midstream 130 86 Corporate — — Consolidated income from equity method investments $ 142 $ 91 Depreciation and amortization Refining & Marketing $ 461 $ 478 Midstream 331 334 Corporate 13 32 Consolidated depreciation and amortization $ 805 $ 844 Capital expenditures Refining & Marketing $ 244 $ 134 Midstream 283 138 Segment capital expenditures and investments 527 272 Less investments in equity method investees 112 51 Plus: Corporate 23 21 Capitalized interest 23 14 Consolidated capital expenditures (a) $ 461 $ 256 (a) Includes changes in capital expenditure accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the three months ended March 31, 2022 and 2021 as reported in the consolidated statements of cash flows. |
Net Interest and Other Financia
Net Interest and Other Financial Costs | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Net Interest and Other Financial Costs | NET INTEREST AND OTHER FINANCIAL COSTS Net interest and other financial costs were as follows: Three Months Ended (In millions) 2022 2021 Interest income $ (5) $ (1) Interest expense 310 351 Interest capitalized (23) (17) Pension and other postretirement non-service costs (a) (21) — Other financial costs 1 20 Net interest and other financial costs $ 262 $ 353 (a) See Note 21. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We recorded a combined federal, state and foreign income tax provision of $282 million for the three months ended March 31, 2022, which was lower than the tax computed at the U.S. statutory rate primarily due to certain permanent tax benefits related to net income attributable to noncontrolling interests offset by state taxes. We recorded a combined federal, state and foreign income tax provision of $34 million for the three months ended March 31, 2021, which was higher than the tax computed at the U.S. statutory rate primarily due to certain permanent tax benefits not recognized on net losses attributable to noncontrolling interests, and due to state taxes and unrecognized tax benefits. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (In millions) March 31, December 31, Crude oil $ 2,815 $ 2,639 Refined products 5,675 4,460 Materials and supplies 992 956 Total $ 9,482 $ 8,055 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT March 31, 2022 December 31, 2021 (In millions) Gross Accumulated Depreciation Net Gross Accumulated Depreciation Net Refining & Marketing $ 31,345 $ 15,284 $ 16,061 $ 31,089 $ 14,876 $ 16,213 Midstream 28,254 7,678 20,576 28,098 7,384 20,714 Corporate 1,453 945 508 1,446 933 513 Total $ 61,052 $ 23,907 $ 37,145 $ 60,633 $ 23,193 $ 37,440 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 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. March 31, 2022 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 Assets: Commodity contracts $ 764 $ — $ — $ (709) $ 55 $ 74 Liabilities: Commodity contracts $ 745 $ — $ — $ (745) $ — $ — Embedded derivatives in commodity contracts — — 99 — 99 — December 31, 2021 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 Assets: Commodity contracts $ 270 $ 1 $ — $ (235) $ 36 $ 34 Liabilities: Commodity contracts $ 248 $ 1 $ — $ (249) $ — $ — Embedded derivatives in commodity contracts — — 108 — 108 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of March 31, 2022, cash collateral of $36 million was netted with the mark-to-market derivative liabilities. As of December 31, 2021, cash collateral of $14 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are covered by master netting arrangements reflected gross on the balance sheet. Level 3 instruments include 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 at March 31, 2022 used significant unobservable inputs including: (1) NGL prices interpolated and extrapolated due to inactive markets ranging from $0.73 to $2.38 per gallon with a weighted average of $0.97 per gallon and (2) the probability of renewal of 100 percent for the five The following is a reconciliation of the beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy. Three Months Ended (In millions) 2022 2021 Beginning balance $ 108 $ 63 Unrealized and realized (gains) losses included in net income (4) 6 Settlements of derivative instruments (5) (3) Ending balance $ 99 $ 66 The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized (gains) losses relating to assets still held at the end of period: $ (5) $ 5 Fair Values – Reported We believe the carrying value of our other financial instruments, including cash and cash equivalents, receivables, accounts payable and certain accrued liabilities, approximate fair value. Our fair value assessment incorporates a variety of considerations, including the short-term duration of the instruments and the expected insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. The borrowings under our revolving credit facilities, which include variable interest rates, approximate fair value. The fair value of our long-term debt is based on prices from recent trade activity and is categorized in level 3 of the fair value hierarchy. The carrying and fair values of our debt were approximately $26.3 billion and $27.1 billion at March 31, 2022, respectively, and approximately $25.1 billion and $28.1 billion at December 31, 2021, respectively. These carrying and fair values of our debt exclude the unamortized issuance costs which are netted against our total debt. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
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 15. 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, (6) the purchase of natural gas and (7) the purchase of soybean oil. The following table presents the fair value of derivative instruments as of March 31, 2022 and December 31, 2021 and the line items in the balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets. (In millions) March 31, 2022 December 31, 2021 Balance Sheet Location Asset Liability Asset Liability Commodity derivatives Other current assets $ 764 $ 745 $ 271 $ 249 Other current liabilities (a) — 16 — 15 Deferred credits and other liabilities (a) — 83 — 93 (a) Includes embedded derivatives. The table below summarizes open commodity derivative contracts for crude oil, refined products, blending products and soybean oil as of March 31, 2022. Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 87.9% 89,111 88,433 Refined products 91.2% 15,031 17,289 Blending products 100.0% 1,487 1,713 Soybean oil 97.7% 1,283 1,727 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 17,010 long and 14,205 short; Refined products - 1,501 long and 1,665 short. There are no spread contracts for blending products or soybean oil. The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: Gain (Loss) (In millions) Three Months Ended Income Statement Location 2022 2021 Sales and other operating revenues $ — $ (10) Cost of revenues (342) (65) Other income 2 — Total $ (340) $ (75) |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Our outstanding borrowings at March 31, 2022 and December 31, 2021 consisted of the following: (In millions) March 31, December 31, Marathon Petroleum Corporation: Senior notes $ 6,449 $ 6,449 Notes payable 1 1 Finance lease obligations 574 589 Total $ 7,024 $ 7,039 MPLX LP: Bank revolving credit facility — 300 Senior notes 20,100 18,600 Finance lease obligations 8 9 Total $ 20,108 $ 18,909 Total debt $ 27,132 $ 25,948 Unamortized debt issuance costs (143) (129) Unamortized (discount) premium, net (280) (280) Amounts due within one year (1,075) (571) Total long-term debt due after one year $ 25,634 $ 24,968 MPLX Senior Notes On March 14, 2022, MPLX issued $1.5 billion aggregate principal amount of 4.950% senior notes due March 2052 in an underwritten public offering. The net proceeds were used to repay amounts outstanding under the MPC intercompany loan agreement and the MPLX credit agreement. Available Capacity under our Credit Facilities as of March 31, 2022 (Dollars in millions) Total Outstanding Outstanding Available Weighted Expiration MPC, excluding MPLX MPC bank revolving credit facility $ 5,000 $ — $ 1 $ 4,999 — % October 2023 MPC trade receivables securitization facility (a) 1,000 — 996 4 — September 2022 MPLX MPLX bank revolving credit facility 3,500 — — 3,500 — % July 2024 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table presents our revenues from external customers disaggregated by segment and product line. Three Months Ended (In millions) 2022 2021 Refining & Marketing: Refined products $ 33,593 $ 19,809 Crude oil 2,889 1,446 Services and other 310 406 Total revenues from external customers 36,792 21,661 Midstream: Refined products 497 282 Services and other 769 768 Total revenues from external customers 1,266 1,050 Sales and other operating revenues $ 38,058 $ 22,711 We do not disclose information on the future performance obligations for any contract with expected duration of one year or less at inception. As of March 31, 2022, we do not have future performance obligations that are material to future periods. Receivables On the accompanying consolidated balance sheets, receivables, less allowance for doubtful accounts primarily consists of customer receivables. Significant, non-customer balances included in our receivables at March 31, 2022 include matching buy/sell receivables of $7.15 billion. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended (In millions) 2022 2021 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 278 $ 336 Net income taxes paid to (received from) taxing authorities — 1 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: Three Months Ended (In millions) 2022 2021 Additions to property, plant and equipment per the consolidated statements of cash flows $ 495 $ 304 Decrease in capital accruals (34) (48) Total capital expenditures $ 461 $ 256 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
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 Other Total Balance as of December 31, 2020 $ (338) $ (181) $ 7 $ (512) Other comprehensive loss before reclassifications, net of tax of $0 (2) — — (2) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (11) 1 — (10) – actuarial loss (a) 12 2 — 14 – settlement loss (a) — — — — Other — — (1) (1) Tax effect (1) — 1 — Other comprehensive income (loss) (2) 3 — 1 Balance as of March 31, 2021 $ (340) $ (178) $ 7 $ (511) (In millions) Pension Benefits Other Benefits Other Total Balance as of December 31, 2021 $ (117) $ 49 $ 1 $ (67) Other comprehensive gain (loss) before reclassifications, net of tax of $(1) 3 3 (6) — Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (11) (5) — (16) – actuarial loss (a) 4 2 — 6 – settlement loss (a) 2 — — 2 Tax effect 1 — — 1 Other comprehensive loss (1) — (6) (7) Balance as of March 31, 2022 $ (118) $ 49 $ (5) $ (74) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 21. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT BENEFITS The following summarizes the components of net periodic benefit costs: Three Months Ended (In millions) 2022 2021 Pension Benefits Service cost $ 68 $ 76 Interest cost 23 23 Expected return on plan assets (41) (33) Amortization – prior service credit (11) (11) – actuarial loss 4 11 – settlement loss 2 — Net periodic pension benefit cost $ 45 $ 66 Other Benefits Service cost $ 8 $ 10 Interest cost 5 7 Amortization – prior service cost (credit) (5) 1 – actuarial loss 2 2 Net periodic other benefit cost $ 10 $ 20 The components of net periodic benefit cost other than the service cost component are included in net interest and other financial costs on the consolidated statements of income. During the three months ended March 31, 2022, we did not make contributions to our funded pension plans. Benefit payments related to unfunded pension and other postretirement benefit plans were $5 million and $14 million, respectively, during the three months ended March 31, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021, accrued liabilities for remediation totaled $416 million and $401 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 $6 million at both March 31, 2022 and December 31, 2021. Governmental and other entities in various states have filed climate-related lawsuits against numerous energy companies, including MPC. The lawsuits allege damages as a result of climate change and the plaintiffs are seeking unspecified damages and abatement under various tort theories. We are currently subject to such proceedings in federal or state courts in California, Delaware, Maryland, Hawaii, Rhode Island and South Carolina. Similar lawsuits may be filed in other jurisdictions. At this early stage, the ultimate outcome of these matters remain uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined. 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. Other Legal Proceedings In July 2020, Tesoro High Plains Pipeline Company, LLC (“THPP”), a subsidiary of MPLX, received a Notification of Trespass Determination from the Bureau of Indian Affairs (“BIA”) relating to a portion of the Tesoro High Plains Pipeline that crosses the Fort Berthold Reservation in North Dakota. The notification demanded the immediate cessation of pipeline operations and assessed trespass damages of approximately $187 million. On appeal, the Assistant Secretary - Indian Affairs vacated the BIA’s trespass order and remanded to the Regional Director for the BIA Great Plains Region to issue a new decision based on specified criteria. On December 15, 2020, the Regional Director of the BIA issued a new trespass notice to THPP, finding that THPP was in trespass and assessing trespass damages of approximately $4 million (including interest), which has been paid. The order also required that THPP immediately cease and desist use of the portion of the pipeline that crosses the property at issue. THPP has complied with the Regional Director’s December 15, 2020 notice. In March 2021, THPP received a copy of an order purporting to vacate all orders related to THPP’s alleged trespass issued by the BIA between July 2, 2020 and January 14, 2021. The order directs the Regional Director of the BIA to reconsider the issue of THPP’s alleged trespass and issue a new order, if necessary, after all interested parties have had an opportunity to be heard. On April 23, 2021, THPP filed a lawsuit in the District of North Dakota against the United States of America, the U.S. Department of the Interior and the BIA (together, the “U.S. Government Parties”) challenging the March order purporting to vacate all previous orders related to THPP’s alleged trespass. On February 8, 2022, the U.S. Government Parties filed their answer to THPP’s suit, asserting counterclaims for trespass and ejectment. The U.S. Government parties claim THPP is in continued trespass with respect to the pipeline and seek disgorgement of pipeline profits from June 1, 2013 to present, removal of the pipeline and remediation. We intend to vigorously defend ourselves against these counterclaims. We continue to work towards a settlement of this matter with holders of the property rights at issue. 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, individually or collectively, 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 LOOP and LOCAP 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 varies but tends 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 $171 million as of March 31, 2022. Dakota Access Pipeline MPLX holds a 9.19 percent indirect interest in a joint venture (“Dakota Access”) that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, collectively referred to as the Bakken Pipeline system or DAPL. In 2020, the U.S. District Court for the District of Columbia (the “D.D.C.”) ordered the U.S. Army Corps of Engineers (“Army Corps”), which granted permits and an easement for the Bakken Pipeline system, to prepare an environmental impact statement (“EIS”) relating to an easement under Lake Oahe in North Dakota. The D.D.C. later vacated the easement. The EIS is currently expected to be completed in the second half of 2022. In May 2021, the D.D.C. denied a renewed request for an injunction to shut down the pipeline while the EIS is being prepared. In June 2021, the D.D.C. issued an order dismissing without prejudice the tribes’ claims against the Dakota Access Pipeline. The litigation could be reopened or new litigation challenging the EIS, once completed, could be filed. The pipeline remains operational. MPLX has entered into a Contingent Equity Contribution Agreement whereby it, along with the other joint venture owners in the Bakken Pipeline system, has agreed to make equity contributions to the joint venture upon certain events occurring to allow the entities that own and operate the Bakken Pipeline system to satisfy their senior note payment obligations. The senior notes were issued to repay amounts owed by the pipeline companies to fund the cost of construction of the Bakken Pipeline system. If the pipeline were temporarily shut down, MPLX would have to contribute its 9.19 percent pro rata share of funds required to pay interest accruing on the notes and any portion of the principal that matures while the pipeline is shutdown. MPLX also expects to contribute its 9.19 percent pro rata share of any costs to remediate any deficiencies to reinstate the permit and/or return the pipeline into operation. If the vacatur of the easement permit results in a permanent shutdown of the pipeline, MPLX would have to contribute its 9.19 percent pro rata share of the cost to redeem the bonds (including the 1% redemption premium required pursuant to the indenture governing the notes) and any accrued and unpaid interest. As of March 31, 2022, our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement were approximately $170 million. Crowley Ocean Partners LLC and Crowley Blue Water Partners LLC In connection with our 50 percent indirect interest in Crowley Ocean Partners LLC, we have agreed to conditionally guarantee our portion of the obligations of the joint venture and its subsidiaries under a senior secured term loan used 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. During the first quarter of 2022, the guarantee for the debt associated with one of the four vessels became effective upon the expiration of the charter for the relevant vessel. As of March 31, 2022, our maximum potential undiscounted payments under this agreement for debt principal totaled $103 million. In connection with our 50 percent indirect interest in Crowley Blue Water Partners LLC, 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. As of March 31, 2022, our maximum potential undiscounted payments under this arrangement was $104 million. Other guarantees We have entered into other guarantees with maximum potential undiscounted payments totaling $98 million as of March 31, 2022, which primarily consist of a commitment to contribute cash to an equity method investee for certain catastrophic events, 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. Contractual Commitments and Contingencies |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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. Certain information and disclosures derived from our audited annual financial statements, prepared in accordance with GAAP, have been condensed or omitted from these interim financial statements. |
Inventories | Inventories are carried at the lower of cost or market value. Costs of crude oil and refined products are aggregated on a consolidated basis for purposes of assessing whether the LIFO cost basis of these inventories may have to be written down to market values. |
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, (6) the purchase of natural gas and (7) the purchase of soybean oil. |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The components of investments were as follows: March 31, 2022 (In millions) Fair Value Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Available-for-sale debt securities Commercial paper Level 2 $ 2,481 $ — $ (5) $ 2,476 $ 270 $ 2,206 Certificates of deposit and time deposits Level 2 4,540 — (3) 4,537 3,350 1,187 U.S. government securities Level 1 28 — — 28 — 28 Corporate notes and bonds Level 2 28 — — 28 — 28 Total available-for-sale debt securities $ 7,077 $ — $ (8) $ 7,069 $ 3,620 $ 3,449 Cash 3,528 3,528 — Total $ 10,597 $ 7,148 $ 3,449 December 31, 2021 (In millions) Fair Value Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Available-for-sale debt securities Commercial paper Level 2 $ 4,905 $ — $ (1) $ 4,904 $ 868 $ 4,036 Certificates of deposit and time deposits Level 2 2,024 — — 2,024 750 1,274 U.S. government securities Level 1 28 — — 28 — 28 Corporate notes and bonds Level 2 271 — — 271 61 210 Total available-for-sale debt securities $ 7,228 $ — $ (1) $ 7,227 $ 1,679 $ 5,548 Cash 3,612 3,612 — Total $ 10,839 $ 5,291 $ 5,548 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Condensed Income Statement | Results of operations for Speedway are reflected through the close of the sale. The following table presents Speedway results and the gain on sale as reported in income from discontinued operations, net of tax, within our consolidated statements of income. Three Months Ended (In millions) 2021 Total revenues and other income $ 5,339 Costs and expenses: Cost of revenues (excludes items below) 4,906 Depreciation and amortization 2 Selling, general and administrative expenses 73 Other taxes 51 Total costs and expenses 5,032 Income from operations 307 Net interest and other financial costs 4 Income before income taxes 303 Provision for income taxes 69 Income from discontinued operations, net of tax $ 234 |
Master Limited Partnership (Tab
Master Limited Partnership (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Line Items] | |
Unit Repurchases | Total share repurchases were as follows for the respective periods: Three Months Ended (In millions, except per share data) 2022 2021 Number of shares repurchased 37 — Cash paid for shares repurchased $ 2,846 $ — Average cost per share $ 75.88 $ — |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | As a result of equity transactions of MPLX, we are required to adjust non-controlling interest and additional paid-in capital. Changes in MPC’s additional paid-in capital resulting from changes in its ownership interests in MPLX were as follows: Three Months Ended (In millions) 2022 2021 Decrease due to change in ownership $ (37) $ (35) Tax impact 12 31 Decrease in MPC's additional paid-in capital, net of tax $ (25) $ (4) |
MPLX LP | |
Noncontrolling Interest [Line Items] | |
Unit Repurchases | Total unit repurchases were as follows for the respective periods: Three Months Ended (In millions, except per share data) 2022 2021 Number of common units repurchased 3 6 Cash paid for common units repurchased $ 100 $ 155 Average cost per unit $ 32.06 $ 24.78 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents balance sheet information for the assets and liabilities of MPLX, which are included in our balance sheets. (In millions) March 31, December 31, Assets Cash and cash equivalents $ 42 $ 13 Receivables, less allowance for doubtful accounts 753 660 Inventories 149 142 Other current assets 54 55 Equity method investments 4,079 3,981 Property, plant and equipment, net 19,912 20,042 Goodwill 7,657 7,657 Right of use assets 280 268 Other noncurrent assets 850 891 Liabilities Accounts payable $ 745 $ 671 Payroll and benefits payable 3 6 Accrued taxes 71 75 Debt due within one year 999 499 Operating lease liabilities 47 59 Other current liabilities 353 304 Long-term debt 18,757 18,072 Deferred income taxes 14 10 Long-term operating lease liabilities 228 205 Deferred credits and other liabilities 570 559 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with related parties were as follows: Three Months Ended (In millions) 2022 2021 Sales to related parties $ 19 $ 43 Purchases from related parties 282 203 Sales to related parties, which are included in sales and other operating revenues, consist primarily of refined product sales to certain of our equity affiliates. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Common Share | We compute basic earnings (loss) per share by dividing net income (loss) attributable to MPC less income allocated to participating securities by the weighted average number of shares of common stock outstanding. Since MPC grants certain incentive compensation awards to employees and non-employee directors that are considered to be participating securities, we have calculated our earnings (loss) per share using the two-class method. Diluted income (loss) per share assumes exercise of certain stock-based compensation awards, provided the effect is not anti-dilutive. Three Months Ended (In millions, except per share data) 2022 2021 Income (loss) from continuing operations, net of tax $ 1,172 $ (170) Less: Net income attributable to noncontrolling interest 327 306 Net income allocated to participating securities — — Income (loss) from continuing operations available to common stockholders 845 (476) Income from discontinued operations, net of tax — 234 Income (loss) available to common stockholders $ 845 $ (242) Weighted average common shares outstanding: Basic 564 651 Effect of dilutive securities 4 — Diluted 568 651 Income (loss) available to common stockholders per share: Basic: Continuing operations $ 1.50 $ (0.73) Discontinued operations — 0.36 Net income (loss) per share $ 1.50 $ (0.37) Diluted: Continuing operations $ 1.49 $ (0.73) Discontinued operations — 0.36 Net income (loss) per share $ 1.49 $ (0.37) |
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 (In millions) 2022 2021 Shares issuable under stock-based compensation plans — 10 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Share Repurchases | Total share repurchases were as follows for the respective periods: Three Months Ended (In millions, except per share data) 2022 2021 Number of shares repurchased 37 — Cash paid for shares repurchased $ 2,846 $ — Average cost per share $ 75.88 $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Adjusted EBITDA | Three Months Ended (In millions) 2022 2021 Segment adjusted EBITDA for reportable segments Refining & Marketing $ 1,374 $ 23 Midstream 1,403 1,322 Total reportable segments $ 2,777 $ 1,345 Reconciliation of segment adjusted EBITDA for reportable segments to income (loss) from continuing operations before income taxes Total reportable segments $ 2,777 $ 1,345 Corporate (138) (125) Refining planned turnaround costs (145) (112) Storm impacts — (47) Litigation 27 — Depreciation and amortization (805) (844) Net interest and other financial costs (262) (353) Income (loss) from continuing operations before income taxes $ 1,454 $ (136) |
Reconciliation of Revenue from Segments to Consolidated | Three Months Ended (In millions) 2022 2021 Sales and other operating revenues Refining & Marketing Revenues from external customers (a) $ 36,792 $ 21,661 Intersegment revenues 36 28 Refining & Marketing segment revenues 36,828 21,689 Midstream Revenues from external customers (a) 1,266 1,050 Intersegment revenues 1,247 1,199 Midstream segment revenues 2,513 2,249 Total segment revenues 39,341 23,938 Less: intersegment revenues 1,283 1,227 Consolidated sales and other operating revenues (a) $ 38,058 $ 22,711 (a) Includes related party sales. See Note 7 for additional information. |
Other Significant Reconciling Items from Segments to Consolidated | Three Months Ended (In millions) 2022 2021 Income from equity method investments Refining & Marketing $ 12 $ 5 Midstream 130 86 Corporate — — Consolidated income from equity method investments $ 142 $ 91 Depreciation and amortization Refining & Marketing $ 461 $ 478 Midstream 331 334 Corporate 13 32 Consolidated depreciation and amortization $ 805 $ 844 Capital expenditures Refining & Marketing $ 244 $ 134 Midstream 283 138 Segment capital expenditures and investments 527 272 Less investments in equity method investees 112 51 Plus: Corporate 23 21 Capitalized interest 23 14 Consolidated capital expenditures (a) $ 461 $ 256 (a) Includes changes in capital expenditure accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the three months ended March 31, 2022 and 2021 as reported in the consolidated statements of cash flows. |
Net Interest and Other Financ_2
Net Interest and Other Financial Costs (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Net Interest And Other Financial Income (Costs) | Net interest and other financial costs were as follows: Three Months Ended (In millions) 2022 2021 Interest income $ (5) $ (1) Interest expense 310 351 Interest capitalized (23) (17) Pension and other postretirement non-service costs (a) (21) — Other financial costs 1 20 Net interest and other financial costs $ 262 $ 353 (a) See Note 21. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | (In millions) March 31, December 31, Crude oil $ 2,815 $ 2,639 Refined products 5,675 4,460 Materials and supplies 992 956 Total $ 9,482 $ 8,055 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property, Plant And Equipment | March 31, 2022 December 31, 2021 (In millions) Gross Accumulated Depreciation Net Gross Accumulated Depreciation Net Refining & Marketing $ 31,345 $ 15,284 $ 16,061 $ 31,089 $ 14,876 $ 16,213 Midstream 28,254 7,678 20,576 28,098 7,384 20,714 Corporate 1,453 945 508 1,446 933 513 Total $ 61,052 $ 23,907 $ 37,145 $ 60,633 $ 23,193 $ 37,440 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 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. March 31, 2022 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 Assets: Commodity contracts $ 764 $ — $ — $ (709) $ 55 $ 74 Liabilities: Commodity contracts $ 745 $ — $ — $ (745) $ — $ — Embedded derivatives in commodity contracts — — 99 — 99 — December 31, 2021 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 Assets: Commodity contracts $ 270 $ 1 $ — $ (235) $ 36 $ 34 Liabilities: Commodity contracts $ 248 $ 1 $ — $ (249) $ — $ — Embedded derivatives in commodity contracts — — 108 — 108 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of March 31, 2022, cash collateral of $36 million was netted with the mark-to-market derivative liabilities. As of December 31, 2021, cash collateral of $14 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are covered by master netting arrangements reflected gross on the balance sheet. |
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 net liabilities classified as Level 3 in the fair value hierarchy. Three Months Ended (In millions) 2022 2021 Beginning balance $ 108 $ 63 Unrealized and realized (gains) losses included in net income (4) 6 Settlements of derivative instruments (5) (3) Ending balance $ 99 $ 66 The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized (gains) losses relating to assets still held at the end of period: $ (5) $ 5 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Classification of Fair Values of Derivative Instruments, Excluding Cash Collateral | The following table presents the fair value of derivative instruments as of March 31, 2022 and December 31, 2021 and the line items in the balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets. (In millions) March 31, 2022 December 31, 2021 Balance Sheet Location Asset Liability Asset Liability Commodity derivatives Other current assets $ 764 $ 745 $ 271 $ 249 Other current liabilities (a) — 16 — 15 Deferred credits and other liabilities (a) — 83 — 93 (a) Includes embedded derivatives. |
Open Commodity Derivative Contracts | The table below summarizes open commodity derivative contracts for crude oil, refined products, blending products and soybean oil as of March 31, 2022. Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 87.9% 89,111 88,433 Refined products 91.2% 15,031 17,289 Blending products 100.0% 1,487 1,713 Soybean oil 97.7% 1,283 1,727 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 17,010 long and 14,205 short; Refined products - 1,501 long and 1,665 short. There are no spread contracts for blending products or soybean oil. |
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) (In millions) Three Months Ended Income Statement Location 2022 2021 Sales and other operating revenues $ — $ (10) Cost of revenues (342) (65) Other income 2 — Total $ (340) $ (75) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding Borrowings | Our outstanding borrowings at March 31, 2022 and December 31, 2021 consisted of the following: (In millions) March 31, December 31, Marathon Petroleum Corporation: Senior notes $ 6,449 $ 6,449 Notes payable 1 1 Finance lease obligations 574 589 Total $ 7,024 $ 7,039 MPLX LP: Bank revolving credit facility — 300 Senior notes 20,100 18,600 Finance lease obligations 8 9 Total $ 20,108 $ 18,909 Total debt $ 27,132 $ 25,948 Unamortized debt issuance costs (143) (129) Unamortized (discount) premium, net (280) (280) Amounts due within one year (1,075) (571) Total long-term debt due after one year $ 25,634 $ 24,968 |
Schedule of Line of Credit Facilities | Available Capacity under our Credit Facilities as of March 31, 2022 (Dollars in millions) Total Outstanding Outstanding Available Weighted Expiration MPC, excluding MPLX MPC bank revolving credit facility $ 5,000 $ — $ 1 $ 4,999 — % October 2023 MPC trade receivables securitization facility (a) 1,000 — 996 4 — September 2022 MPLX MPLX bank revolving credit facility 3,500 — — 3,500 — % July 2024 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | The following table presents our revenues from external customers disaggregated by segment and product line. Three Months Ended (In millions) 2022 2021 Refining & Marketing: Refined products $ 33,593 $ 19,809 Crude oil 2,889 1,446 Services and other 310 406 Total revenues from external customers 36,792 21,661 Midstream: Refined products 497 282 Services and other 769 768 Total revenues from external customers 1,266 1,050 Sales and other operating revenues $ 38,058 $ 22,711 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | Three Months Ended (In millions) 2022 2021 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 278 $ 336 Net income taxes paid to (received from) taxing authorities — 1 |
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: Three Months Ended (In millions) 2022 2021 Additions to property, plant and equipment per the consolidated statements of cash flows $ 495 $ 304 Decrease in capital accruals (34) (48) Total capital expenditures $ 461 $ 256 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 Other Total Balance as of December 31, 2020 $ (338) $ (181) $ 7 $ (512) Other comprehensive loss before reclassifications, net of tax of $0 (2) — — (2) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (11) 1 — (10) – actuarial loss (a) 12 2 — 14 – settlement loss (a) — — — — Other — — (1) (1) Tax effect (1) — 1 — Other comprehensive income (loss) (2) 3 — 1 Balance as of March 31, 2021 $ (340) $ (178) $ 7 $ (511) (In millions) Pension Benefits Other Benefits Other Total Balance as of December 31, 2021 $ (117) $ 49 $ 1 $ (67) Other comprehensive gain (loss) before reclassifications, net of tax of $(1) 3 3 (6) — Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (11) (5) — (16) – actuarial loss (a) 4 2 — 6 – settlement loss (a) 2 — — 2 Tax effect 1 — — 1 Other comprehensive loss (1) — (6) (7) Balance as of March 31, 2022 $ (118) $ 49 $ (5) $ (74) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 21. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit costs: Three Months Ended (In millions) 2022 2021 Pension Benefits Service cost $ 68 $ 76 Interest cost 23 23 Expected return on plan assets (41) (33) Amortization – prior service credit (11) (11) – actuarial loss 4 11 – settlement loss 2 — Net periodic pension benefit cost $ 45 $ 66 Other Benefits Service cost $ 8 $ 10 Interest cost 5 7 Amortization – prior service cost (credit) (5) 1 – actuarial loss 2 2 Net periodic other benefit cost $ 10 $ 20 |
Short-term Investments (Compone
Short-term Investments (Components of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 7,077 | $ 7,228 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (8) | (1) |
Fair Value | 7,069 | 7,227 |
Cash | 3,528 | 3,612 |
Short-term investments and cash | 10,597 | 10,839 |
Commercial Paper [Member] | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,481 | 4,905 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (5) | (1) |
Fair Value | 2,476 | 4,904 |
Certificates of deposit and time deposits | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,540 | 2,024 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | 0 |
Fair Value | 4,537 | 2,024 |
U.S. government securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28 | 28 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 28 | 28 |
Corporate notes and bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28 | 271 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 28 | 271 |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 3,620 | 1,679 |
Cash | 3,528 | 3,612 |
Short-term investments and cash | 7,148 | 5,291 |
Cash and Cash Equivalents | Commercial Paper [Member] | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 270 | 868 |
Cash and Cash Equivalents | Certificates of deposit and time deposits | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 3,350 | 750 |
Cash and Cash Equivalents | U.S. government securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Cash and Cash Equivalents | Corporate notes and bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 61 |
Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 3,449 | 5,548 |
Cash | 0 | 0 |
Short-term investments and cash | 3,449 | 5,548 |
Short-term Investments | Commercial Paper [Member] | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,206 | 4,036 |
Short-term Investments | Certificates of deposit and time deposits | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 1,187 | 1,274 |
Short-term Investments | U.S. government securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 28 | 28 |
Short-term Investments | Corporate notes and bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 28 | $ 210 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Speedway - Discontinued Operations, Disposed of by Sale $ in Millions | May 14, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash proceeds from sale of Speedway | $ 21,380 |
Proceeds from the sale of Speedway, net of tax | 17,220 |
Gain from disposal of discontinued operation, before income tax | 11,680 |
Gain on disposal of discontinued operation, net of tax | $ 8,020 |
Discontinued Operations (Result
Discontinued Operations (Results of Operations associated with Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues, other income and net gain on disposal of assets: | ||
Total revenues and other income | $ 38,384 | $ 22,882 |
Costs and expenses: | ||
Cost of revenues (excludes items below) | 35,068 | 21,084 |
Depreciation and amortization | 805 | 844 |
Selling, general and administrative expenses | 603 | 575 |
Other taxes | 192 | 162 |
Total costs and expenses | 36,668 | 22,665 |
Income from operations | 1,716 | 217 |
Net interest and other financial costs | 262 | 353 |
Income from discontinued operations, net of tax | $ 0 | 234 |
Discontinued Operations, Disposed of by Sale | ||
Revenues, other income and net gain on disposal of assets: | ||
Total revenues and other income | 5,339 | |
Costs and expenses: | ||
Cost of revenues (excludes items below) | 4,906 | |
Depreciation and amortization | 2 | |
Selling, general and administrative expenses | 73 | |
Other taxes | 51 | |
Total costs and expenses | 5,032 | |
Income from operations | 307 | |
Net interest and other financial costs | 4 | |
Income before income taxes | 303 | |
Provision for income taxes | 69 | |
Income from discontinued operations, net of tax | $ 234 |
Master Limited Partnership (Det
Master Limited Partnership (Details) | Mar. 31, 2022 |
MPLX | Marathon Petroleum Corporation | |
MPC's partnership interest in MLP (in percentage) | 64.00% |
Master Limited Partnership (Uni
Master Limited Partnership (Unit Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Nov. 02, 2020 | |
Units acquired, average cost per unit | $ 75.88 | $ 0 | |
Stock repurchase program, remaining authorized repurchase amount | $ 7,460 | ||
MPLX LP | |||
Stock repurchase program, authorized amount | $ 1,000 | ||
Units repurchased, units | 3 | 6 | |
Units repurchased, value | $ 100 | $ 155 | |
Units acquired, average cost per unit | $ 32.06 | $ 24.78 | |
Stock repurchase program, remaining authorized repurchase amount | $ 237 |
Master Limited Partnership (Non
Master Limited Partnership (Noncontrolling Interest) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity transactions of MPLX | $ (88) | $ (124) |
Additional Paid-in Capital | ||
Decrease due to change in ownership | (37) | (35) |
Tax impact | 12 | 31 |
Equity transactions of MPLX | $ (25) | $ (4) |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 7,148 | $ 5,291 |
Receivables, less allowance for doubtful accounts | 15,661 | 11,034 |
Inventories | 9,482 | 8,055 |
Other current assets | 648 | 568 |
Equity method investments | 5,514 | 5,409 |
Property, plant and equipment, net | 37,145 | 37,440 |
Goodwill | 8,256 | 8,256 |
Right of use assets | 1,331 | 1,372 |
Other noncurrent assets | 2,318 | 2,400 |
Liabilities | ||
Accounts payable | 19,791 | 13,700 |
Payroll and benefits payable | 976 | 911 |
Accrued taxes | 1,691 | 1,231 |
Debt due within one year | 1,075 | 571 |
Operating lease liabilities | 420 | 438 |
Other current liabilities | 1,167 | 1,047 |
Long-term debt | 25,634 | 24,968 |
Deferred income taxes | 5,571 | 5,638 |
Long-term operating lease liabilities | 905 | 927 |
Deferred credits and other liabilities | 1,360 | 1,346 |
Variable Interest Entity, Primary Beneficiary | MPLX | ||
Assets | ||
Cash and cash equivalents | 42 | 13 |
Receivables, less allowance for doubtful accounts | 753 | 660 |
Inventories | 149 | 142 |
Other current assets | 54 | 55 |
Equity method investments | 4,079 | 3,981 |
Property, plant and equipment, net | 19,912 | 20,042 |
Goodwill | 7,657 | 7,657 |
Right of use assets | 280 | 268 |
Other noncurrent assets | 850 | 891 |
Liabilities | ||
Accounts payable | 745 | 671 |
Payroll and benefits payable | 3 | 6 |
Accrued taxes | 71 | 75 |
Debt due within one year | 999 | 499 |
Operating lease liabilities | 47 | 59 |
Other current liabilities | 353 | 304 |
Long-term debt | 18,757 | 18,072 |
Deferred income taxes | 14 | 10 |
Long-term operating lease liabilities | 228 | 205 |
Deferred credits and other liabilities | $ 570 | $ 559 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Sales to related parties | $ 19 | $ 43 |
Purchases from related parties | $ 282 | $ 203 |
Earnings (Loss) Per Share (Summ
Earnings (Loss) Per Share (Summary of Earnings (Loss) Per Share) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Income (loss) from continuing operations, net of tax | $ 1,172 | $ (170) |
Less: Net income attributable to noncontrolling interest | 327 | 306 |
Net income allocated to participating securities | 0 | 0 |
Income (loss) from continuing operations available to common stockholders | 845 | (476) |
Income from discontinued operations, net of tax | 0 | 234 |
Income (loss) available to common stockholders | $ 845 | $ (242) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 564 | 651 |
Effect of dilutive securities (in shares) | 4 | 0 |
Diluted (in shares) | 568 | 651 |
Basic: | ||
Continuing operations | $ 1.50 | $ (0.73) |
Discontinued operations | 0 | 0.36 |
Net income (loss) per share | 1.50 | (0.37) |
Diluted: | ||
Continuing operations | 1.49 | (0.73) |
Discontinued operations | 0 | 0.36 |
Net income (loss) per share | $ 1.49 | $ (0.37) |
Earnings (Loss) Per Share (Anti
Earnings (Loss) Per Share (Anti-dilutive Shares) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Based Compensation Expense | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares issuable under stock-based compensation plans | 0 | 10 |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 02, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 7,460 | |||
Number of shares repurchased | 37,000,000 | 0 | ||
Cash paid for shares repurchased | $ 2,846 | $ 0 | ||
Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased | 539,000 | |||
Cash paid for shares repurchased | $ 46 | |||
Share Repurchase Authorization February 2022 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 5,000 |
Equity (Share Repurchases) (Det
Equity (Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity [Abstract] | ||
Number of shares repurchased | 37 | 0 |
Cash paid for shares repurchased | $ 2,846 | $ 0 |
Average cost per share | $ 75.88 | $ 0 |
Segment Information (Additional
Segment Information (Additional Information) (Detail) | 3 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Segment Ad
Segment Information (Segment Adjusted EBITDA to Income (Loss) from Continuing Operations before Income Taxes) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Refining planned turnaround costs | $ (145) | $ (112) |
Storm impacts | 0 | (47) |
Litigation | 27 | 0 |
Depreciation and amortization | (805) | (844) |
Net interest and other financial costs | (262) | (353) |
Income (loss) from continuing operations before income taxes | 1,454 | (136) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 2,777 | 1,345 |
Operating Segments | Refining & Marketing | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 1,374 | 23 |
Depreciation and amortization | (461) | (478) |
Operating Segments | Midstream | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 1,403 | 1,322 |
Depreciation and amortization | (331) | (334) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 138 | 125 |
Depreciation and amortization | $ (13) | $ (32) |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Revenues To Sales and Other Operating Revenues) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | [1] | $ 38,058 | $ 22,711 |
Refining & Marketing | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | [1] | 36,792 | 21,661 |
Midstream | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | [1] | 1,266 | 1,050 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 1,283 | 1,227 | |
Intersegment Eliminations | Refining & Marketing | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 36 | 28 | |
Intersegment Eliminations | Midstream | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 1,247 | 1,199 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 39,341 | 23,938 | |
Operating Segments | Refining & Marketing | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 36,828 | 21,689 | |
Operating Segments | Midstream | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | $ 2,513 | $ 2,249 | |
[1] | Includes related party sales. See Note 7 for additional information |
Segment Information (Income fro
Segment Information (Income from Equity Method Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Income (Loss) from Equity Method Investments | $ 142 | $ 91 |
Operating Segments | Refining & Marketing | ||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Income (Loss) from Equity Method Investments | 12 | 5 |
Operating Segments | Midstream | ||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Income (Loss) from Equity Method Investments | 130 | 86 |
Corporate | ||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Income (Loss) from Equity Method Investments | $ 0 | $ 0 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Depreciation and amortization | $ 805 | $ 844 |
Operating Segments | Refining & Marketing | ||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Depreciation and amortization | 461 | 478 |
Operating Segments | Midstream | ||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Depreciation and amortization | 331 | 334 |
Corporate | ||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | ||
Depreciation and amortization | $ 13 | $ 32 |
Segment Information (Capital Ex
Segment Information (Capital Expenditures (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Plus: | |||
Capital expenditures | [1] | $ 461 | $ 256 |
Operating Segments | |||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||
Capital expenditures and investments | 527 | 272 | |
Less investments in equity method investees | 112 | 51 | |
Operating Segments | Refining & Marketing | |||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||
Capital expenditures and investments | 244 | 134 | |
Operating Segments | Midstream | |||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||
Capital expenditures and investments | 283 | 138 | |
Corporate | |||
Plus: | |||
Corporate | 23 | 21 | |
Capitalized interest | $ 23 | $ 14 | |
[1] | Includes changes in capital expenditure accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the three months ended March 31, 2022 and 2021 as reported in the consolidated statements of cash flows. |
Net Interest and Other Financ_3
Net Interest and Other Financial Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Other Income and Expenses [Abstract] | |||
Interest income | $ (5) | $ (1) | |
Interest expense | 310 | 351 | |
Interest capitalized | (23) | (17) | |
Pension and other postretirement non-service costs | [1] | (21) | 0 |
Other financial costs | 1 | 20 | |
Net interest and other financial costs | $ 262 | $ 353 | |
[1] | See Note 21. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes on continuing operations | $ 282 | $ 34 |
Inventories (Summary of Invento
Inventories (Summary of Inventories) (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Crude oil | $ 2,815 | $ 2,639 |
Refined products | 5,675 | 4,460 |
Materials and supplies | 992 | 956 |
Total | $ 9,482 | $ 8,055 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary of Property, Plant And Equipment) (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 61,052 | $ 60,633 |
Accumulated Depreciation | 23,907 | 23,193 |
Net PP&E | 37,145 | 37,440 |
Operating Segments | Refining & Marketing | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 31,345 | 31,089 |
Accumulated Depreciation | 15,284 | 14,876 |
Net PP&E | 16,061 | 16,213 |
Operating Segments | Midstream | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 28,254 | 28,098 |
Accumulated Depreciation | 7,678 | 7,384 |
Net PP&E | 20,576 | 20,714 |
Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 1,453 | 1,446 |
Accumulated Depreciation | 945 | 933 |
Net PP&E | $ 508 | $ 513 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Accounted for at Fair Value on Recurring Basis) (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash collateral netted with derivative liabilities | $ 36 | $ 14 | |
Fair Value, Measurements, Recurring | Commodity derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - netting and collateral | [1] | (709) | (235) |
Commodity derivative instruments, assets - net carrying value on balance sheet | [2] | 55 | 36 |
Commodity derivative instruments, assets - collateral pledged not offset | 74 | 34 | |
Commodity derivative instruments, liabilities - netting and collateral | [1] | (745) | (249) |
Commodity derivative instruments, liabilities - net carrying value on balance sheet | [2] | 0 | 0 |
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] | 99 | 108 |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commodity derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - gross | 764 | 270 | |
Commodity derivative instruments, liabilities - gross | 745 | 248 | |
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 | Commodity derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - gross | 0 | 1 | |
Commodity derivative instruments, liabilities - gross | 0 | 1 | |
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 | 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 3 | Embedded derivatives in commodity contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, liabilities - gross | $ 99 | $ 108 | |
[1] | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of March 31, 2022, cash collateral of $36 million was netted with the mark-to-market derivative liabilities. As of December 31, 2021, cash collateral of $14 million was netted with mark-to-market derivative liabilities. | ||
[2] | We have no derivative contracts that are covered by master netting arrangements reflected gross on the balance sheet. |
Fair Value Measurements (Level
Fair Value Measurements (Level 3) (Details) | 3 Months Ended |
Mar. 31, 2022USD ($)$ / gal | |
Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Average forward price | $ / gal | 0.97 |
Embedded derivatives in commodity contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Term of contract | 5 years |
Embedded derivatives in commodity contracts | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Probability of renewal second term | 100.00% |
Minimum | Commodity derivatives | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Forward commodity price | 0.73 |
Maximum | Commodity derivatives | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Forward commodity price | 2.38 |
Fair Value Measurements (Reconc
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 108 | $ 63 |
Unrealized and realized (gains) losses included in net income | (4) | 6 |
Settlements of derivative instruments | (5) | (3) |
Ending balance | $ 99 | $ 66 |
Fair Value Measurements (Losses
Fair Value Measurements (Losses Included in Earnings Relating to Assets Still Held at End of Period) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized (gains) losses relating to assets still held at the end of period: | $ (5) | $ 5 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Values - Reported) (Detail) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 26.3 | $ 25.1 |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 27.1 | $ 28.1 |
Derivatives (Classification of
Derivatives (Classification of Gross Fair Values of Derivative Instruments, Excluding Cash Collateral) (Detail) - Commodity derivatives - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Other current assets | |||
Derivative [Line Items] | |||
Asset | $ 764 | $ 271 | |
Liability | 745 | 249 | |
Other current liabilities | |||
Derivative [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | 16 | 15 |
Deferred credits and other liabilities | |||
Derivative [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | $ 83 | $ 93 |
[1] | Includes embedded derivatives. |
Derivatives (Open Commodity Der
Derivatives (Open Commodity Derivative Contracts) (Details) - Exchange Traded gal in Thousands, bbl in Thousands | 3 Months Ended |
Mar. 31, 2022galbbl | |
Crude oil | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 87.90% |
Crude oil | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 89,111 |
Crude oil | Long | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 17,010 |
Crude oil | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | gal | 88,433 |
Crude oil | Short | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 14,205 |
Refined products | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 91.20% |
Refined products | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 15,031 |
Refined products | Long | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 1,501 |
Refined products | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | gal | 17,289 |
Refined products | Short | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 1,665 |
Blending products | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 100.00% |
Blending products | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 1,487 |
Blending products | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | gal | 1,713 |
Soybean oil | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 97.70% |
Soybean oil | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | 1,283 |
Soybean oil | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of total barrels) | gal | 1,727 |
Derivatives (Effect of Commodit
Derivatives (Effect of Commodity Derivative Instruments in Statements of Income) (Detail) - Commodity derivatives - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) | $ (340) | $ (75) |
Sales and other operating revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) | 0 | (10) |
Cost of revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) | (342) | (65) |
Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) | $ 2 | $ 0 |
Debt (Outstanding Borrowings) (
Debt (Outstanding Borrowings) (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Total debt | $ 27,132 | $ 25,948 |
Unamortized debt issuance costs | (143) | (129) |
Unamortized (discount) premium, net | (280) | (280) |
Amounts due within one year | (1,075) | (571) |
Total long-term debt due after one year | 25,634 | 24,968 |
Marathon Petroleum Corporation: | ||
Finance lease obligations | 574 | 589 |
Total debt | 7,024 | 7,039 |
Marathon Petroleum Corporation: | Senior notes | ||
Long-term debt, gross | 6,449 | 6,449 |
Marathon Petroleum Corporation: | Notes payable | ||
Long-term debt, gross | 1 | 1 |
MPLX LP: | ||
Finance lease obligations | 8 | 9 |
Total debt | 20,108 | 18,909 |
MPLX LP: | Bank revolving credit facility | ||
Long-term debt, gross | 0 | 300 |
MPLX LP: | Senior notes | ||
Long-term debt, gross | $ 20,100 | $ 18,600 |
Debt (MPLX Senior Notes) (Detai
Debt (MPLX Senior Notes) (Details) - Senior notes - MPLX LP: - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 14, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 20,100 | $ 18,600 | |
4.950% senior notes due March 2052 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,500 |
Debt (Available Capacity under
Debt (Available Capacity under our Facilities) (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | |
MPC bank revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Total Capacity | $ 5,000 | ||||
Outstanding Borrowings | 0 | ||||
Outstanding Letters of Credit | 1 | ||||
Available Capacity | $ 4,999 | ||||
Weighted Average Interest Rate | 0.00% | ||||
MPC trade receivables securitization facility | |||||
Debt Instrument [Line Items] | |||||
Total Capacity | [1] | $ 1,000 | |||
Outstanding Borrowings | 0 | ||||
Outstanding Letters of Credit | 996 | ||||
Available Capacity | $ 4 | ||||
Weighted Average Interest Rate | 0.00% | ||||
Maximum borrowing capacity | $ 100 | ||||
Uncommitted letter of credit issuing capacity | $ 900 | ||||
MPC trade receivables securitization facility | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Uncommitted letter of credit issuing capacity | $ 400 | ||||
MPLX LP | MPLX bank revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Total Capacity | $ 3,500 | ||||
Outstanding Borrowings | 0 | ||||
Outstanding Letters of Credit | 0 | ||||
Available Capacity | $ 3,500 | ||||
Weighted Average Interest Rate | 0.00% | ||||
[1] | The committed borrowing and letter of credit issuance capacity of the trade receivables securitization facility is $100 million. The facility allows banks to issue letters of credit for up to $900 million in excess of the committed capacity at their discretion if there is available borrowing base capacity. This uncommitted capacity was utilized in the first quarter of 2022 to secure contracts awarded by the Department of Energy to purchase crude oil from the strategic petroleum reserve. The uncommitted letter of credit issuing capacity under the facility is scheduled to decrease to $400 million on July 29, 2022 |
Revenue (Disaggregated by Produ
Revenue (Disaggregated by Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Sales and other operating revenues | [1] | $ 38,058 | $ 22,711 |
Refining & Marketing | |||
Sales and other operating revenues | [1] | 36,792 | 21,661 |
Refining & Marketing | Refined products | |||
Sales and other operating revenues | 33,593 | 19,809 | |
Refining & Marketing | Crude oil | |||
Sales and other operating revenues | 2,889 | 1,446 | |
Refining & Marketing | Services and other | |||
Sales and other operating revenues | 310 | 406 | |
Midstream | |||
Sales and other operating revenues | [1] | 1,266 | 1,050 |
Midstream | Refined products | |||
Sales and other operating revenues | 497 | 282 | |
Midstream | Services and other | |||
Sales and other operating revenues | $ 769 | $ 768 | |
[1] | Includes related party sales. See Note 7 for additional information |
Revenue (Details)
Revenue (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Matching buy/sell receivables | $ 7,150 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net cash provided by operating activities included: | ||
Interest paid (net of amounts capitalized) | $ 278 | $ 336 |
Net income taxes paid to (received from) taxing authorities | $ 0 | $ 1 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Reconciliation of Additions to Property, Plant and Equipment to Total Capital Expenditures) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Supplemental Cash Flow Elements [Abstract] | |||
Additions to property, plant and equipment per the consolidated statements of cash flows | $ 495 | $ 304 | |
Decrease in capital accruals | (34) | (48) | |
Capital expenditures | [1] | $ 461 | $ 256 |
[1] | Includes changes in capital expenditure accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the three months ended March 31, 2022 and 2021 as reported in the consolidated statements of cash flows. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss by Component) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (67) | $ (512) | |
Other comprehensive income (loss), before reclassifications, net of tax | 0 | (2) | |
Amounts reclassified from accumulated other comprehensive loss: | |||
Amortization - prior service credit | (16) | (10) | |
Amortization - actuarial loss | 6 | 14 | |
Amortization - settlement loss | 2 | 0 | |
Other | (1) | ||
Tax effect | 1 | 0 | |
Other comprehensive income (loss) | (7) | 1 | |
Ending balance | (74) | (511) | |
Other comprehensive income (loss) before reclassifications, tax | (1) | 0 | |
Accumulated Defined Benefit Plans Adjustment | Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (117) | (338) | |
Other comprehensive income (loss), before reclassifications, net of tax | 3 | (2) | |
Amounts reclassified from accumulated other comprehensive loss: | |||
Amortization - prior service credit | [1] | (11) | (11) |
Amortization - actuarial loss | [1] | 4 | 12 |
Amortization - settlement loss | [1] | 2 | 0 |
Tax effect | 1 | (1) | |
Other comprehensive income (loss) | (1) | (2) | |
Ending balance | (118) | (340) | |
Accumulated Defined Benefit Plans Adjustment | Other Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 49 | (181) | |
Other comprehensive income (loss), before reclassifications, net of tax | 3 | 0 | |
Amounts reclassified from accumulated other comprehensive loss: | |||
Amortization - prior service credit | [1] | (5) | 1 |
Amortization - actuarial loss | [1] | 2 | 2 |
Amortization - settlement loss | 0 | 0 | |
Tax effect | 0 | 0 | |
Other comprehensive income (loss) | 0 | 3 | |
Ending balance | 49 | (178) | |
Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1 | 7 | |
Other comprehensive income (loss), before reclassifications, net of tax | (6) | 0 | |
Amounts reclassified from accumulated other comprehensive loss: | |||
Other | (1) | ||
Tax effect | 0 | 1 | |
Other comprehensive income (loss) | (6) | 0 | |
Ending balance | $ (5) | $ 7 | |
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 21. |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Components of Net Periodic Benefit Costs) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits | ||
Components of net periodic benefit cost: | ||
Service cost | $ 68 | $ 76 |
Interest cost | 23 | 23 |
Expected return on plan assets | (41) | (33) |
Amortization – prior service credit | (11) | (11) |
Amortization – actuarial loss | 4 | 11 |
Amortization - settlement loss | 2 | 0 |
Net periodic benefit cost | 45 | 66 |
Other Benefits | ||
Components of net periodic benefit cost: | ||
Service cost | 8 | 10 |
Interest cost | 5 | 7 |
Amortization – prior service credit | (5) | 1 |
Amortization – actuarial loss | 2 | 2 |
Net periodic benefit cost | $ 10 | $ 20 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Additional Information) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Other Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 5 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 14 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
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_2
Commitments and Contingencies (Environmental Matters) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities for remediation | $ 416 | $ 401 |
Receivables for recoverable costs | $ 6 | $ 6 |
Commitments and Contingencies_3
Commitments and Contingencies (Other Legal Proceedings) (Details) - USD ($) $ in Millions | Dec. 15, 2020 | Jul. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency, damages sought, value | $ 187 | |
Loss contingency, damages paid, value | $ 4 |
Commitments and Contingencies_4
Commitments and Contingencies (Guarantees) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Other Guarantees | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 98 |
LOOP and LOCAP LLC | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 171 |
Bakken Pipeline System | |
Loss Contingencies [Line Items] | |
Ownership percentage | 9.19% |
Bakken Pipeline System | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 170 |
Crowley Ocean Partners | |
Loss Contingencies [Line Items] | |
Ownership percentage | 50.00% |
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 103 |
Crowley Blue Water Partners | |
Loss Contingencies [Line Items] | |
Ownership percentage | 50.00% |
Crowley Blue Water Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 104 |