Name: Marathon Petroleum Corp. (NYSE:MPC) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Marathon Petroleum Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	11,172)	16,050)	11,001)	(9,977)	3,255)
Amortization of deferred financing costs and debt discount	(78)	50)	79)	69)	33)
Impairment expense	—)	—)	—)	8,426)	1,197)
Depreciation and amortization	3,307)	3,215)	3,364)	3,375)	3,638)
Pension and other postretirement benefits, net	(191)	172)	(499)	220)	(64)
Deferred income taxes	(28)	290)	(169)	(241)	1,023)
Net gain on disposal of assets	(217)	(1,061)	(21)	(70)	(307)
(Income) loss from equity method investments	(742)	(655)	(458)	935)	(394)
Distributions from equity method investments	941)	772)	652)	577)	662)
Income from discontinued operations	—)	(72)	(8,448)	(1,205)	—)
Changes in income tax receivable	135)	(555)	2,089)	(1,807)	—)
Changes in the fair value of derivative instruments	70)	(147)	16)	45)	(8)
Current receivables	1,972)	(2,315)	(5,299)	1,465)	(2,024)
Inventories	(489)	(787)	(33)	1,750)	(366)
Current accounts payable and accrued liabilities	(1,316)	1,909)	6,260)	(2,927)	2,502)
Right of use assets and operating lease liabilities, net	(7)	—)	3)	(19)	14)
Changes in operating assets and liabilities, net of effects of businesses acquired	160)	(1,193)	931)	269)	126)
All other, net	(412)	(547)	(153)	191)	280)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	2,945)	269)	(2,617)	10,784)	6,186)
Net cash provided by operating activities	14,117)	16,319)	8,384)	807)	9,441)
Additions to property, plant and equipment	(1,890)	(2,420)	(1,464)	(2,787)	(5,374)
Acquisitions, net of cash acquired	(246)	(413)	—)	—)	(129)
Disposal of assets	36)	90)	153)	150)	127)
Investments, acquisitions and contributions	(480)	(405)	(210)	(485)	(1,064)
Investments, redemptions, repayments, return of capital and sales proceeds	275)	515)	39)	137)	98)
Purchases of short-term investments	(8,622)	(6,023)	(12,498)	—)	—)
Sales of short-term investments	2,082)	1,296)	1,544)	—)	—)
Maturities of short-term investments	5,048)	7,159)	5,406)	—)	—)
All other, net	702)	824)	513)	63)	81)
Net cash (used in) provided by investing activities	(3,095)	623)	(6,517)	(2,922)	(6,261)
Commercial paper, issued	—)	—)	7,414)	2,055)	—)
Commercial paper, repayments	—)	—)	(8,437)	(1,031)	—)
Long-term debt, borrowings	1,589)	3,379)	12,150)	17,082)	14,274)
Long-term debt, repayments	(1,079)	(2,280)	(17,400)	(15,380)	(13,073)
Debt issuance costs	(15)	(39)	—)	(50)	(22)
Issuance of common stock	62)	243)	106)	11)	10)
Common stock repurchased	(11,572)	(11,922)	(4,654)	—)	(1,950)
Dividends paid	(1,261)	(1,279)	(1,484)	(1,510)	(1,398)
Distributions to noncontrolling interests	(1,281)	(1,214)	(1,449)	(1,244)	(1,245)
Contributions from noncontrolling interests	—)	—)	—)	—)	97)
Repurchases of noncontrolling interests	—)	(491)	(630)	(33)	—)
Redemption of noncontrolling interests, preferred units	(600)	—)	—)	—)	—)
All other, net	(50)	(44)	(35)	(35)	(69)
Net cash used in financing activities	(14,207)	(13,647)	(14,419)	(135)	(3,376)
Cash provided by (used in) operating activities, discontinued operations	—)	42)	(4,024)	1,612)	—)
Cash (used in) provided by investing activities, discontinued operations	—)	—)	21,314)	(335)	—)
Net cash provided by discontinued operations	—)	42)	17,290)	1,277)	—)
Net change in cash, cash equivalents and restricted cash	(3,185)	3,337)	4,738)	(973)	(196)
Cash, cash equivalents and restricted cash balances, beginning of year	8,631)	5,294)	556)	1,529)	1,725)
Cash, cash equivalents and restricted cash balances, end of year	5,446)	8,631)	5,294)	556)	1,529)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The financial trajectory over the five-year period from 2019 to 2023 is characterized by a significant recovery in operational cash generation following a sharp contraction in 2020, coupled with a strategic pivot toward aggressive shareholder returns and reduced capital expenditures.

Operating Cash Flow Performance: Net cash provided by operating activities demonstrates high volatility, falling from 9,441 million US$ in 2019 to a low of 807 million US$ in 2020, before recovering to 14,117 million US$ by 2023. This volatility is closely linked to fluctuations in net income, which swung from a loss of 9,977 million US$ in 2020 to a peak profit of 16,050 million US$ in 2022. The 2020 downturn was heavily influenced by a non-cash impairment expense of 8,426 million US$. Depreciation and amortization remained relatively stable throughout the period, averaging approximately 3.3 billion US$ annually, providing a consistent positive adjustment to net income.
Investing Activities and Capital Allocation: A consistent downward trend is observed in capital expenditures, with additions to property, plant, and equipment decreasing from 5,374 million US$ in 2019 to 1,890 million US$ in 2023. Starting in 2021, there was a marked increase in the management of short-term investments, characterized by significant purchases (e.g., 12,498 million US$ in 2021) offset by subsequent sales and maturities. This suggests a shift toward optimizing liquidity management rather than expanding the fixed asset base.
Financing Activities and Shareholder Returns: Financing activities shifted from debt management in the early part of the period to aggressive capital return strategies. While long-term debt borrowings were substantial between 2019 and 2021, they declined sharply to 1,589 million US$ by 2023. Simultaneously, common stock repurchases escalated dramatically, rising from 1,950 million US$ in 2019 to over 11.5 billion US$ annually in 2022 and 2023. Dividend payments remained comparatively stable, fluctuating slightly around the 1.3 billion to 1.5 billion US$ range.
Discontinued Operations and Liquidity Position: The 2021 fiscal year was uniquely impacted by discontinued operations, which contributed a net cash inflow of 17,290 million US$, primarily driven by 21,314 million US$ provided by investing activities related to those operations. This infusion of liquidity significantly bolstered the cash position. The ending cash, cash equivalents, and restricted cash balances grew from 1,529 million US$ in 2019 to 5,446 million US$ in 2023, reflecting a strengthened liquidity profile despite the heavy volume of share buybacks.

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