Marathon Petroleum - $MPC.US

What is Marathon Petroleum’s Background?

Marathon Petroleum Corporation operates as a crude oil refining company. The Company refines, supplies, markets, and transports petroleum products. Marathon Petroleum serves customers in the United States.

What Marathon Petroleum is doing in more details?

Once part of Marathon Oil Corporation, Marathon Petroleum processed about 3 million barrels of crude oil a day.

The company distributes petroleum products wholesale to private-brand marketers and to large commercial and industrial consumers, as well as to the spot market. It completed the $21 billion sale of Speedway, its retail transportation fuel and convenience store business to 7-Eleven in 2020.

Where Marathon Petroleum is Operating?

Marathon’s operations consist of two business segments.

Its Refining & Marketing segment, which makes up around 95% of the company’s total revenue, refines crude oil and other feedstocks at refineries in the US Gulf Coast and Midwest regions, purchases ethanol and refined products for resale, and distributes refined products.

It sells refined products to wholesale marketing customers, buyers on the spot market.

The Midstream segment (5% of revenue) transports crude oil and other feedstocks to Marathon Petroleum’s refineries and other locations, delivers refined products to wholesale and retail markets and affiliated pipeline assets and investments.

Marathon holds stakes in MPLX LP which operates the company’s asphalt and light oil product terminal operators in the US (about 20 terminals). In addition, the company has a large US private inland product fleet that includes roughly two dozen inland towboats and about 300 barges.

Where is the geographical reach of Marathon Petroleum?

Ohio-based Marathon Petroleum sells refined products at some 7,100 Marathon-branded gas stations in some 35 US states, DC, and Mexico. It is also one of the largest wholesale suppliers of gasoline and distillates to resellers and consumers in the United States.

More than 30% of the gas stations are in Ohio, Michigan, and Indiana.

What is Marathon Petroleum’s Sales and Marketing Strategy?

Marathon Petroleum sells to wholesale suppliers of gasoline and distillates to resellers and consumers. Customers include independent retailers, wholesale customers, their Marathon brand jobbers and direct dealers.

It also sells gasoline, distillates and asphalt for export, primarily out of their Garyville and Galveston Bay refineries.

What is Marathon Petroleum Financial Performance?

Marathon Petroleum Corporation’s performance for the span of five years has had an upward trend from 2016 up until 2019 where revenues significantly dropped for 2020.

In 2020, the company’s operating revenue decreased by $104 billion to $69.8 billion as compared to 2019’s revenue of $111.1 billion.

This was primarily due to decreased Refining & Marketing segment refined product sales volumes, which decreased 513 mbpd, or 14%, and lower average refined product sales prices, which decreased $0.55 per gallon, or 31 percent, largely due to reduced travel and business operations associated with the COVID-19 pandemic.

The company recorded a net loss of $10 billion as compared to the prior year’s net income of $3.3 billion.

Cash and cash equivalents at the end of the period was $415 million. The company’s operations generated $2.4 billion, financing used $3.3 billion, and investing activities used another $135 million.

What is Marathon Petroleum Future Strategy?

The company incorporated different strategies into its business to face risks such as commodity price risks. In its refining and marketing segment, the company obtains competitive prices for its products and allows operating results to reflect market price movements dictated by supply and demand.

The company also has a Diversity & Inclusion strategy of building awareness, increasing representation and ensuring success. This strategy focuses on understanding the benefits of diverse perspectives and increasing diversity across the organization.

What is Marathon Petroleum’s Background?

Marathon Petroleum Corporation founded in Lima, Ohio in 1887. The company transferred to Findlay, Ohio after Ohio Oil was purchased by John Rockefeller’s Standard Oil. In 1960, the Marathon Pipe Line Company was created as a subsidiary.

The company changed its name from Ohio Oil company to Marathon Oil Company in 1962. In July 1, 2011, Marathon Petroleum Corporation (MPC) became a stand-alone refining, marketing, and transportation company, headquartered in Findlay, Ohio.

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