Marathon Petroleum Corporation (MPC) Q1 2025 Earnings Call Transcript

2025-05-06 15:47:11 ET

Marathon Petroleum Corporation (MPC)

Q1 2025 Earnings Conference Call

May 6, 2025, 11:00 AM ET

Company Participants

Kristina Kazarian - Investor Relations

Maryann Mannen - Chief Executive Officer

John Quaid - Chief Financial Officer

Rick Hessling - Chief Commercial Officer

James Wilkins - Senior Vice President Health, Environment, Safety and Security

Conference Call Participants

Neil Mehta - Goldman Sachs

Douglas Leggate - Wolfe Research

Manav Gupta - UBS

Paul Cheng - Scotiabank

Theresa Chen - Barclays

John Royall - JPMorgan

Matthew Blair - TPH

Jason Gabelman - TD Cowen

Presentation

Operator

Welcome to the MPC First Quarter 2025 Earnings Call. My name is Amanda, and I will be your operator for today's call. [Operator Instructions]. Please note that this conference is being recorded.

I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Kristina Kazarian

Welcome to Marathon Petroleum Corporation's first quarter 2025 earnings conference call. The slides that accompany this call can be found on our website at marathonpetroleum.com under the Investor tab. Joining me on the call today are Maryann Mannen, CEO; John Quaid, CFO; and other members of the executive team.

We invite you to read the safe harbor statements on Slide 2. We will be making forward-looking statements today. Actual results may differ. Factors that could cause actual results to differ are included there as well as in our filings with the SEC.

With that, I'll turn the call over to Maryann.

Maryann Mannen

Thanks, Christina, and good morning, everyone.

Let me highlight a few elements of our performance that were most relevant to our results in the first quarter. Refining utilization of 89%, reflecting the safe and successful completion of the second highest amount of planned turnarounds in history focused heavily on our Gulf Coast region.

We plan this turnaround activity to occur in the first quarter, a period of seasonally weaker demand. capture was 104% as we delivered strong commercial performance in a period of low refining margins and volatility from regulatory uncertainty. Our Midstream segment adjusted EBITDA grew 8% year-over-year, and MPLX announced over $1 billion of strategic acquisitions, advancing our midstream natural gas and NGL growth strategies.

Our longer-term fundamental view supports an enhanced mid-cycle environment for refining. Despite reductions to the 2025 demand outlook forecasts still point to a global oil demand growth. mainly driven by demand for the refined products we produce. U.S. refined product inventories have drawn for the ninth straight week and are below the five-year average. This plus lower retail prices should be supportive as we move into the summer driving season, a period of strong seasonal demand.

Within our own domestic and export businesses, we are seeing steady year-over-year demand for gasoline and growth for diesel and jet fuel. And while light-heavy differentials could remain narrow as Canadian producers increase maintenance in the second quarter, we believe that higher OPEC plus production could offset that near-term tightness. We believe underlying fundamentals support stronger margins, especially as announced refinery closures offset recent capacity additions....

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