How Does Marathon Petroleum Make its Money?
Marathon Petroleum is the largest petroleum refining company in the United States, operating 13 refineries with a total crude oil refining capacity of approximately 3 million barrels per day. The company processes crude oil into gasoline, diesel, jet fuel, and other products. Marathon also holds a majority interest in MPLX LP, a large midstream partnership that operates pipelines, terminals, and gathering/processing facilities. The company was spun off from Marathon Oil in 2011 and has since consolidated its position through the transformative acquisition of Andeavor in 2018.
Marathon Petroleum (MPC) Business Model
Marathon Petroleum operates in the oil & gas sector. Below is a summary of Marathon Petroleum’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Marathon Petroleum’s 2024 fiscal year filings with the SEC.
Marathon Petroleum Competitors
Marathon Petroleum’s key competitors and comparable public companies in the oil & gas sector include ExxonMobil, Chevron, and ConocoPhillips. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Marathon Petroleum stacks up by comparing their revenue breakdown, margins, and growth metrics.
Marathon Petroleum Competitors
Marathon Petroleum’s key competitors and comparable public companies in the oil & gas sector include ExxonMobil, Chevron, and ConocoPhillips. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Marathon Petroleum stacks up by comparing their revenue breakdown, margins, and growth metrics.
Marathon Petroleum Competitors
Marathon Petroleum’s key competitors and comparable public companies in the oil & gas sector include ExxonMobil, Chevron, and ConocoPhillips. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Marathon Petroleum stacks up by comparing their revenue breakdown, margins, and growth metrics.
Marathon Petroleum Competitors
Marathon Petroleum’s key competitors and comparable public companies in the oil & gas sector include ExxonMobil, Chevron, and ConocoPhillips. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Marathon Petroleum stacks up by comparing their revenue breakdown, margins, and growth metrics.
Marathon Petroleum Competitors
Marathon Petroleum’s key competitors and comparable public companies in the oil & gas sector include ExxonMobil, Chevron, and ConocoPhillips. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Marathon Petroleum stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Refining & Marketing | $139,000 | $142,000 | -2.1% |
| Midstream (MPLX) | $12,000 | $11,300 | +6.2% |
| Total Revenue | $147,000 | $150,000 | -2.0% |
Refining & Marketing — 95% of Revenue
Midstream (MPLX) — 8% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $147,000 | $150,000 |
| Cost of Revenue | $132,000 | $133,000 |
| Gross Profit | $15,000 | $17,000 |
| Operating Expenses | $5,400 | $5,100 |
| Operating Income | $9,600 | $11,900 |
| Net Income | $7,200 | $9,700 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 10.2%
- Operating Margin: 6.5%
- Revenue Growth: -2.0%
Is Marathon Petroleum Profitable?
Yes, Marathon Petroleum is profitable. The company reported net income of $7,200 on total revenue of $147,000. With an operating margin of 6.5%, Marathon Petroleum demonstrates solid profitability for the oil & gas sector. The gross margin of 10.2% reflects Marathon Petroleum’s pricing power and cost structure.
What to Watch
- Crack spread trends and refining margin environment outlook
- Renewable diesel production ramp at the Martinez, CA facility
- MPLX distribution growth and midstream asset earnings contribution
- Aggressive share buyback program reducing float (over $10B annually)
Marathon Petroleum (MPC) Financial Summary
Marathon Petroleum (MPC) is an oil & gas company that generated $147,000 in total revenue in fiscal year 2024. Revenue grew -2.0% year-over-year. The company earned $7,200 in net income, making it profitable. For a deeper look at Marathon Petroleum’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.