Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Central Index Key | 0001510295 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
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 $.01 | |
Trading Symbol | MPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 658,319,324 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues and other income: | ||||
Sales and other operating revenues | $ 33,547 | $ 22,317 | $ 61,814 | $ 41,183 |
Income from equity method investments | 107 | 80 | 206 | 166 |
Net gain on disposal of assets | 4 | 3 | 218 | 5 |
Other income | 30 | 45 | 65 | 75 |
Total revenues and other income | 33,688 | 22,445 | 62,303 | 41,429 |
Costs and expenses: | ||||
Cost of revenues (excludes items below) | 29,682 | 19,655 | 55,642 | 37,166 |
Depreciation and amortization | 886 | 533 | 1,805 | 1,061 |
Selling, general and administrative expenses | 904 | 424 | 1,785 | 826 |
Other taxes | 174 | 122 | 360 | 225 |
Total costs and expenses | 31,646 | 20,734 | 59,592 | 39,278 |
Income from operations | 2,042 | 1,711 | 2,711 | 2,151 |
Net interest and other financial costs | 322 | 195 | 628 | 378 |
Income before income taxes | 1,720 | 1,516 | 2,083 | 1,773 |
Provision for income taxes | 353 | 281 | 457 | 303 |
Net income | 1,367 | 1,235 | 1,626 | 1,470 |
Less net income attributable to: | ||||
Redeemable noncontrolling interest | 21 | 20 | 41 | 36 |
Noncontrolling interests | 240 | 160 | 486 | 342 |
Net income attributable to MPC | $ 1,106 | $ 1,055 | $ 1,099 | $ 1,092 |
Basic: | ||||
Net income attributable to MPC per share | $ 1.67 | $ 2.30 | $ 1.65 | $ 2.34 |
Weighted average shares outstanding (in shares) | 662 | 459 | 667 | 467 |
Diluted: | ||||
Net income attributable to MPC per share | $ 1.66 | $ 2.27 | $ 1.63 | $ 2.31 |
Weighted average shares outstanding (in shares) | 666 | 464 | 672 | 472 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,367 | $ 1,235 | $ 1,626 | $ 1,470 |
Defined benefit plans: | ||||
Actuarial changes, net of tax of $0, $2, $6 and $5, respectively | (1) | 7 | (4) | 14 |
Prior service costs, net of tax of ($3), ($2), ($11) and ($4), respectively | (8) | (7) | (11) | (14) |
Other, net of tax of ($1), $0, ($1) and ($1), respectively | (1) | 0 | (2) | (2) |
Other comprehensive income (loss) | (10) | 0 | (17) | (2) |
Comprehensive income | 1,357 | 1,235 | 1,609 | 1,468 |
Less comprehensive income attributable to: | ||||
Redeemable noncontrolling interest | 21 | 20 | 41 | 36 |
Noncontrolling interests | 240 | 160 | 486 | 342 |
Comprehensive income attributable to MPC | $ 1,096 | $ 1,055 | $ 1,082 | $ 1,090 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Actuarial changes, tax | $ 0 | $ 2 | $ 6 | $ 5 |
Prior service costs, tax | (3) | (2) | (11) | (4) |
Other, tax | $ (1) | $ 0 | $ (1) | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,247 | $ 1,687 |
Receivables, less allowance for doubtful accounts of $10 and $9, respectively | 7,603 | 5,853 |
Inventories | 9,088 | 9,837 |
Other current assets | 458 | 646 |
Total current assets | 18,396 | 18,023 |
Equity method investments | 6,729 | 5,898 |
Property, plant and equipment, net | 45,335 | 45,058 |
Goodwill | 20,277 | 20,184 |
Right of use assets | 2,588 | 0 |
Other noncurrent assets | 3,571 | 3,777 |
Total assets | 96,896 | 92,940 |
Current liabilities: | ||
Accounts payable | 10,905 | 9,366 |
Payroll and benefits payable | 778 | 1,152 |
Accrued taxes | 1,223 | 1,446 |
Debt due within one year | 554 | 544 |
Operating lease liabilities | 615 | 0 |
Other current liabilities | 815 | 708 |
Total current liabilities | 14,890 | 13,216 |
Long-term debt | 27,853 | 26,980 |
Deferred income taxes | 5,235 | 4,864 |
Defined benefit postretirement plan obligations | 1,610 | 1,509 |
Long-term operating lease liabilities | 2,068 | 0 |
Deferred credits and other liabilities | 1,174 | 1,318 |
Total liabilities | 52,830 | 47,887 |
Commitments and contingencies (see Note 23) | ||
Redeemable noncontrolling interest | 1,005 | 1,004 |
MPC stockholders’ equity: | ||
Preferred stock, no shares issued and outstanding (par value $0.01 per share, 30 million shares authorized) | 0 | 0 |
Common stock: | ||
Issued – 978 million and 975 million shares (par value $0.01 per share, 2 billion shares authorized) | 10 | 10 |
Held in treasury, at cost – 318 million and 295 million shares | (14,573) | (13,175) |
Additional paid-in capital | 33,785 | 33,729 |
Retained earnings | 15,146 | 14,755 |
Accumulated other comprehensive loss | (161) | (144) |
Total MPC stockholders’ equity | 34,207 | 35,175 |
Noncontrolling interests | 8,854 | 8,874 |
Total equity | 43,061 | 44,049 |
Total liabilities, redeemable noncontrolling interest and equity | $ 96,896 | $ 92,940 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 10 | $ 9 |
Preferred stock: | ||
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Par value | $ 0.01 | |
Shares authorized | 30,000,000 | |
Common stock: | ||
Shares issued | 978,000,000 | 975,000,000 |
Par value | $ 0.01 | |
Shares authorized | 2,000,000,000 | |
Treasury stock | (318,000,000) | (295,000,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income | $ 1,626 | $ 1,470 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred financing costs and debt discount | 9 | 35 |
Depreciation and amortization | 1,805 | 1,061 |
Pension and other postretirement benefits, net | 86 | 65 |
Deferred income taxes | 360 | 2 |
Net gain on disposal of assets | (218) | (5) |
Income from equity method investments | (206) | (166) |
Distributions from equity method investments | 310 | 217 |
Changes in the fair value of derivative instruments | (27) | 1 |
Changes in operating assets and liabilities, net of effects of businesses acquired: | ||
Current receivables | (1,750) | (225) |
Inventories | 740 | 66 |
Current accounts payable and accrued liabilities | 1,297 | (231) |
Right of use assets and operating lease liabilities, net | 9 | 0 |
All other, net | 204 | (41) |
Net cash provided by operating activities | 4,245 | 2,249 |
Investing activities: | ||
Additions to property, plant and equipment | (2,419) | (1,466) |
Acquisitions, net of cash acquired | 6 | 0 |
Disposal of assets | 33 | 14 |
Investments – acquisitions, loans and contributions | (595) | (118) |
Investments - redemptions, repayments and return of capital | 58 | 15 |
All other, net | 37 | 37 |
Net cash used in investing activities | (2,880) | (1,518) |
Financing activities: | ||
Long-term debt – borrowings | 7,964 | 9,610 |
Long-term debt – repayments | (7,116) | (5,270) |
Debt issuance costs | 0 | (53) |
Issuance of common stock | 3 | 21 |
Common stock repurchased | (1,385) | (2,212) |
Dividends paid | (706) | (430) |
Distributions to noncontrolling interests | (640) | (394) |
Contributions from noncontrolling interests | 95 | 5 |
All other, net | (56) | (19) |
Net cash provided by (used in) financing activities | (1,841) | 1,258 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (476) | 1,989 |
Cash, cash equivalents and restricted cash at beginning of period | 1,725 | 3,015 |
Cash, cash equivalents and restricted cash at end of period | $ 1,249 | $ 5,004 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of new accounting principle in period of adoption | $ 64 | $ 63 | $ 1 | ||||
Beginning balance at Dec. 31, 2017 | 20,828 | $ 7 | $ (9,869) | $ 11,262 | 12,864 | $ (231) | 6,795 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 219 | 37 | 182 | ||||
Dividends declared on common stock | (219) | (219) | |||||
Distributions to noncontrolling interests | (179) | (179) | |||||
Contributions from noncontrolling interests | 1 | 1 | |||||
Other comprehensive loss | (2) | (2) | |||||
Shares repurchased | (1,327) | (1,327) | |||||
Shares returned - stock based compensation | (4) | ||||||
Shares issued - stock based compensation | 27 | ||||||
Net shares issued - stock based compensation | 24 | 1 | |||||
Impact from equity transactions of MPLX & ANDX | (546) | 2,380 | (2,926) | ||||
Ending balance at Mar. 31, 2018 | 18,863 | 7 | (11,200) | 13,669 | 12,745 | (233) | 3,875 |
Beginning balance at Dec. 31, 2017 | 20,828 | 7 | (9,869) | 11,262 | 12,864 | (231) | 6,795 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive loss | (2) | ||||||
Impact from equity transactions of MPLX & ANDX | 2,381 | ||||||
Ending balance at Jun. 30, 2018 | 18,818 | 7 | (12,093) | 13,688 | 13,589 | (233) | 3,860 |
Beginning balance at Mar. 31, 2018 | 18,863 | 7 | (11,200) | 13,669 | 12,745 | (233) | 3,875 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,215 | 1,055 | 160 | ||||
Dividends declared on common stock | (211) | (211) | |||||
Distributions to noncontrolling interests | (182) | (182) | |||||
Contributions from noncontrolling interests | 4 | 4 | |||||
Other comprehensive loss | 0 | 0 | |||||
Shares repurchased | (885) | (885) | |||||
Shares returned - stock based compensation | (8) | ||||||
Shares issued - stock based compensation | 18 | ||||||
Net shares issued - stock based compensation | 14 | 4 | |||||
Impact from equity transactions of MPLX & ANDX | 0 | 1 | (1) | ||||
Ending balance at Jun. 30, 2018 | 18,818 | 7 | (12,093) | 13,688 | 13,589 | (233) | 3,860 |
Beginning balance at Dec. 31, 2018 | 44,049 | 10 | (13,175) | 33,729 | 14,755 | (144) | 8,874 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 239 | (7) | 246 | ||||
Dividends declared on common stock | (357) | (357) | |||||
Distributions to noncontrolling interests | (305) | (305) | |||||
Contributions from noncontrolling interests | 95 | 95 | |||||
Other comprehensive loss | (7) | (7) | |||||
Shares repurchased | (885) | (885) | |||||
Shares returned - stock based compensation | (3) | ||||||
Shares issued - stock based compensation | 32 | ||||||
Net shares issued - stock based compensation | 28 | (1) | |||||
Impact from equity transactions of MPLX & ANDX | 2 | 3 | (1) | ||||
Other | (1) | (1) | |||||
Ending balance at Mar. 31, 2019 | 42,858 | 10 | (14,063) | 33,764 | 14,391 | (151) | 8,907 |
Beginning balance at Dec. 31, 2018 | 44,049 | 10 | (13,175) | 33,729 | 14,755 | (144) | 8,874 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive loss | (17) | ||||||
Impact from equity transactions of MPLX & ANDX | 5 | ||||||
Ending balance at Jun. 30, 2019 | 43,061 | 10 | (14,573) | 33,785 | 15,146 | (161) | 8,854 |
Beginning balance at Mar. 31, 2019 | 42,858 | 10 | (14,063) | 33,764 | 14,391 | (151) | 8,907 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,346 | 1,106 | 240 | ||||
Dividends declared on common stock | (351) | (351) | |||||
Distributions to noncontrolling interests | (295) | (295) | |||||
Other comprehensive loss | (10) | (10) | |||||
Shares repurchased | (500) | (500) | |||||
Shares returned - stock based compensation | (10) | ||||||
Shares issued - stock based compensation | 19 | ||||||
Net shares issued - stock based compensation | 11 | 2 | |||||
Impact from equity transactions of MPLX & ANDX | 1 | 2 | (1) | ||||
Other | 1 | 1 | |||||
Ending balance at Jun. 30, 2019 | $ 43,061 | $ 10 | $ (14,573) | $ 33,785 | $ 15,146 | $ (161) | $ 8,854 |
Consolidated Statement of Equit
Consolidated Statement of Equity - Shares of Common Stock - shares shares in Millions | Total | Common Stock |
Beginning balance at Dec. 31, 2017 | 734 | |
Number of common shares issued - stock compensation | 0 | |
Ending balance at Mar. 31, 2018 | 734 | |
Number of common shares issued - stock compensation | 1 | |
Ending balance at Jun. 30, 2018 | 735 | |
Beginning balance at Dec. 31, 2018 | 975 | 975 |
Number of common shares issued - stock compensation | 1 | |
Ending balance at Mar. 31, 2019 | 976 | |
Number of common shares issued - stock compensation | 2 | |
Ending balance at Jun. 30, 2019 | 978 | 978 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity - Shares of Treasury Stock - shares shares in Millions | Total | Treasury Stock |
Beginning balance at Dec. 31, 2017 | (248) | |
Number of shares repurchased | (19) | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Mar. 31, 2018 | (267) | |
Beginning balance at Dec. 31, 2017 | (248) | |
Number of shares repurchased | (31) | |
Ending balance at Jun. 30, 2018 | (279) | |
Beginning balance at Mar. 31, 2018 | (267) | |
Number of shares repurchased | (12) | (12) |
Number of shares returned - stock compensation | 0 | |
Ending balance at Jun. 30, 2018 | (279) | |
Beginning balance at Dec. 31, 2018 | (295) | (295) |
Number of shares repurchased | (14) | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Mar. 31, 2019 | (309) | |
Beginning balance at Dec. 31, 2018 | (295) | (295) |
Number of shares repurchased | (23) | |
Ending balance at Jun. 30, 2019 | (318) | (318) |
Beginning balance at Mar. 31, 2019 | (309) | |
Number of shares repurchased | (9) | (9) |
Number of shares returned - stock compensation | 0 | |
Ending balance at Jun. 30, 2019 | (318) | (318) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Temporary Equity [Abstract] | ||||
Beginning balance | $ 1,004 | $ 1,004 | $ 1,000 | $ 1,000 |
Net income attributable to redeemable noncontrolling interest | 21 | 20 | 20 | 16 |
Distributions to noncontrolling interests | (20) | (20) | (17) | (16) |
Ending balance | $ 1,005 | $ 1,004 | $ 1,003 | $ 1,000 |
Consolidated Statements of Eq_3
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share of common stock (in dollars per share) | $ 0.53 | $ 0.53 | $ 0.46 | $ 0.46 |
Description of the Business and
Description of the Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 with more than 3 million barrels per day of crude oil capacity across 16 refineries. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to consumers through our Retail business segment and to independent entrepreneurs who operate approximately 7,000 branded outlets. Our retail operations own and operate approximately 3,910 retail transportation fuel and convenience stores across the United States and also sell transportation fuel to consumers through approximately 1,060 direct dealer locations under long-term supply contracts. MPC’s midstream operations are primarily conducted through MPLX LP (“MPLX”) and Andeavor Logistics LP (“ANDX”), which own and operate crude oil and light product transportation and logistics infrastructure as well as gathering, processing, and fractionation assets. We own the general partner and majority limited partner interests in these two midstream companies. Refer to Note 4 for further information on the Andeavor acquisition, which closed on October 1, 2018, and to Notes 3 and 9 for additional information about our operations. 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. 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, 2018 . The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted | ACCOUNTING STANDARDS Recently Adopted ASU 2016-02, Leases We adopted ASU No. 2016-02, Leases (“ASC 842”), as of January 1, 2019, electing the transition method which permits entities to adopt the provisions of the standard using the modified retrospective approach without adjusting comparative periods. We also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to grandfather the historical accounting conclusions until a reassessment event is present. We have also elected the practical expedient to not recognize short-term leases on the balance sheet, the practical expedient related to right of way permits and land easements which allows us to carry forward our accounting treatment for those existing agreements, and the practical expedient to combine lease and non-lease components for the majority of our underlying classes of assets except for our third-party contractor service and equipment agreements and boat and barge equipment agreements in which we are the lessee. We did not elect the practical expedient to combine lease and non-lease components for arrangements in which we are the lessor. In instances where the practical expedient was not elected, lease and non-lease consideration is allocated based on relative standalone selling price. Right of use (“ROU”) assets represent our right to use an underlying asset in which we obtain substantially all of the economic benefits and the right to direct the use of the asset during the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We recognize ROU assets and lease liabilities on the balance sheet for leases with a lease term of greater than one year. Payments that are not fixed at the commencement of the lease are considered variable and are excluded from the ROU asset and lease liability calculations. In the measurement of our ROU assets and lease liabilities, the fixed lease payments in the agreement are discounted using a secured incremental borrowing rate for a term similar to the duration of the lease, as our leases do not provide implicit rates. Operating lease expense is recognized on a straight-line basis over the lease term. Adoption of the new standard resulted in the recording of ROU assets and lease liabilities of approximately $2.81 billion and $2.90 billion , respectively, as of January 1, 2019. The standard did not materially impact our consolidated statements of income, cash flows or equity as a result of adoption. As a lessor under ASC 842, MPLX may be required to re-classify existing operating leases to sales-type leases upon modification and related reassessment of the leases. If such a modification were to occur, it may result in the de-recognition of existing assets, recognition of a receivable in the amount of the present value of fixed payments expected to be received by MPLX under the lease, and recognition of a corresponding gain or loss in the period of change. MPLX will evaluate the impact of a lease reassessment as modifications occur. We also adopted the following ASUs during the first six months of 2019, none of which had a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2018-02 Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income January 1, 2019 2017-12 Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities January 1, 2019 |
Not Yet Adopted | Not Yet Adopted ASU 2017-04, Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an ASU which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, the recognition of an impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit’s fair value, which could be different from the amount calculated under the current method using the implied fair value of the goodwill; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance should be applied on a prospective basis and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments |
Master Limited Partnerships
Master Limited Partnerships | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
MPLX LP | MASTER LIMITED PARTNERSHIPS We own the general partner and majority limited partner interests in two midstream companies, MPLX and ANDX, which own and operate gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. As of June 30, 2019 , we owned 64 percent of the outstanding common units of both MPLX and ANDX. We control both MPLX and ANDX through our ownership of the general partner interest. As described in Notes 4 and 5 , we have consolidated ANDX since October 1, 2018 in accordance with ASC 810 and previously recorded ANDX’s assets and liabilities to our balance sheet at preliminary fair values as of the Andeavor acquisition date of October 1, 2018. On July 30, 2019, MPLX completed its acquisition of ANDX. At the effective time of the ANDX acquisition, each common unit held by ANDX’s public unitholders was converted into the right to receive 1.135 MPLX common units. ANDX common units held by MPC were converted into the right to receive 1.0328 MPLX common units. ANDX common unitholders will not receive any future distributions from ANDX, but instead will receive a second quarter 2019 distribution as and when declared by the Board of Directors of MPLX with respect to the MPLX common units issued in connection with the acquisition. Additionally, the ANDX Series A Preferred unitholders will not receive any future distributions from ANDX, but instead will receive the semi-annual distributions payable August 15, 2019 on MPLX Series B Preferred units issued in connection with the acquisition. As of July 30, 2019, MPC will account for this transaction as a common control transaction, as defined by ASC 805, which will result in adjustments to our noncontrolling interest and additional paid-in capital balances. Dropdowns to MPLX and GP/IDR Exchange On February 1, 2018, we contributed refining logistics assets and fuels distribution services to MPLX in exchange for $4.1 billion in cash and approximately 112 million common units and 2 million general partner units from MPLX. MPLX financed the cash portion of the transaction with its $4.1 billion 364 -day term loan facility, which was entered into on January 2, 2018. We agreed to waive approximately one-third of the first quarter 2018 distributions on the common units issued in connection with this transaction. The contributions of these assets were accounted for as transactions between entities under common control and we did not record a gain or loss. Immediately following the February 1, 2018 dropdown to MPLX, our IDRs were cancelled and our economic general partner interest was converted into a non-economic general partner interest, all in exchange for 275 million newly issued MPLX common units (“GP/IDR Exchange”). As a result of this transaction, the general partner units and IDRs were eliminated, are no longer outstanding and no longer participate in distributions of cash from MPLX. Agreements We have various long-term, fee-based commercial agreements with MPLX and ANDX. Under these agreements, MPLX and ANDX provide 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 and ANDX that establish fees for operational and management services provided between us and MPLX and ANDX and for executive management services and certain general and administrative services provided by us to MPLX and ANDX. 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 and ANDX, 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 and ANDX were as follows: Six Months Ended (In millions) 2019 2018 Increase due to the issuance of MPLX common units and general partner units to MPC $ — $ 1,114 Increase due to GP/IDR Exchange — 1,808 Increase due to the issuance of MPLX & ANDX common units 7 5 Increase in MPC's additional paid-in capital 7 2,927 Tax impact (2 ) (546 ) Increase in MPC's additional paid-in capital, net of tax $ 5 $ 2,381 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Investments | ACQUISITIONS Acquisition of Andeavor On October 1, 2018, we acquired Andeavor. The total value of consideration transferred was $23.46 billion , consisting of $19.97 billion in equity and $3.49 billion in cash. The cash portion of the purchase price was funded using cash on hand. Our financial results reflect the results of Andeavor from the date of the acquisition. We accounted for the Andeavor acquisition using the acquisition method of accounting, which requires Andeavor assets and liabilities to be recorded to our balance sheet at fair value as of the acquisition date. We will complete a final determination of the fair value of certain assets and liabilities within the one year measurement period from the date of the acquisition as required by ASC 805. Due to the level of effort required to develop fair value measurements, the valuation studies necessary to determine the fair value of assets acquired and liabilities assumed are preliminary, including the underlying cash flows used to determine the fair value of identified intangible assets and economic obsolescence adjustments to property, plant and equipment. The size and the breadth of the Andeavor acquisition necessitates the use of the one year measurement period to fully analyze all the factors used in establishing the asset and liability fair values as of the acquisition date, including, but not limited to, property, plant and equipment, intangible assets, real property, leases, environmental and asset retirement obligations and the related tax impacts of any changes made. Any potential adjustments made could be material in relation to the preliminary values. During the six months ended June 30, 2019 , we recorded adjustments to the preliminary fair value estimates of assets acquired and liabilities assumed as of the acquisition date as noted in the table below. (In millions) As originally reported Adjustments As adjusted Cash and cash equivalents $ 382 $ — $ 382 Receivables 2,744 (2 ) 2,742 Inventories 5,204 (9 ) 5,195 Other current assets 378 — 378 Equity method investments 865 37 902 Property, plant and equipment, net 16,545 (78 ) 16,467 Other noncurrent assets (a) 3,086 (1 ) 3,085 Total assets acquired 29,204 (53 ) 29,151 Accounts payable 4,003 (4 ) 3,999 Payroll and benefits payable 348 — 348 Accrued taxes 590 — 590 Debt due within one year 34 — 34 Other current liabilities 392 30 422 Long-term debt 8,875 1 8,876 Deferred income taxes 1,609 16 1,625 Defined benefit postretirement plan obligations 432 — 432 Deferred credit and other liabilities 714 15 729 Noncontrolling interests 5,059 3 5,062 Total liabilities and noncontrolling interest assumed 22,056 61 22,117 Net assets acquired excluding goodwill 7,148 (114 ) 7,034 Goodwill 16,314 114 16,428 Net assets acquired $ 23,462 $ — $ 23,462 (a) Includes intangible assets. The preliminary purchase consideration allocation resulted in the recognition of $16.43 billion in goodwill, of which $893 million is tax deductible due to a carryover basis from Andeavor. Our Refining & Marketing, Midstream and Retail segments recognized $4.82 billion , $7.72 billion and $3.89 billion of preliminary goodwill, respectively. The recognized goodwill represents the value expected to be created by further optimization of crude supply, a nationwide retail and marketing platform, diversification of our refining and midstream footprints and optimization of information systems and business processes. Pro Forma Financial Information The following unaudited pro forma financial information presents consolidated results assuming the Andeavor acquisition occurred on January 1, 2017. The unaudited pro forma information does not give effect to potential synergies that could result from the transaction and is not necessarily indicative of the results of future operations. Three Months Ended Six Months Ended (In millions) 2018 2018 Sales and other operating revenues $ 34,959 $ 64,338 Net income attributable to MPC 1,452 1,478 The pro forma information includes adjustments to align accounting policies, including our policy to expense refinery turnarounds when they occur, an adjustment to depreciation expense to reflect the increased fair value of property, plant and equipment, increased amortization expense related to identifiable intangible assets and the related income tax effects. Acquisition of Express Mart During the fourth quarter of 2018, Speedway acquired 78 transportation fuel and convenience store locations from Petr-All Petroleum Consulting Corporation for total consideration of $266 million . These stores are located primarily in the Syracuse, Rochester and Buffalo markets in New York and had been operated under the Express Mart brand. Based on the final fair value estimates of assets acquired and liabilities assumed at the acquisition date, $97 million of the purchase price was allocated to property, plant and equipment, $9 million to inventory, $2 million to intangibles and $158 million to goodwill. Goodwill is tax deductible and represents the value expected to be created by geographically expanding our retail platform and the assembled workforce. These operations are accounted for within the Retail segment. Acquisition of Mt. Airy Terminal On September 26, 2018, MPLX acquired an eastern U.S. Gulf Coast export terminal (“Mt. Airy Terminal”) from Pin Oak Holdings, LLC for total consideration of $451 million . At the time of the acquisition, the terminal included tanks with 4 million barrels of third-party leased storage capacity and a dock with 120 mbpd of capacity. The Mt. Airy Terminal is located on the Mississippi River between New Orleans and Baton Rouge, near several Gulf Coast refineries, including our Garyville Refinery, and numerous rail lines and pipelines. The Mt. Airy Terminal is accounted for within the Midstream segment. In the first quarter of 2019, an adjustment to the initial purchase price was made for approximately $5 million related to the final settlement of the acquisition. This reduced the total purchase price to $446 million and resulted in $336 million of property, plant and equipment, $121 million of goodwill and the remainder being attributable to net liabilities assumed. Goodwill represents the significant growth potential of the terminal due to the multiple pipelines and rail lines which cross the property, the terminal’s position as an aggregation point for liquids growth in the region for both ocean-going vessels and inland barges, the proximity of the terminal to MPC’s Garyville refinery and other refineries in the region as well as the opportunity to construct an additional dock at the site. All of the goodwill recognized related to this transaction is tax deductible. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Consolidated VIEs We control MPLX and ANDX through our ownership of the general partner of both entities. MPLX and ANDX are VIEs because the limited partners do not have substantive kick-out or substantive participating rights over the general partners. We are the primary beneficiary of both MPLX and ANDX because in addition to our significant economic interest, we also have the ability, through our ownership of the general partners, to control the decisions that most significantly impact MPLX and ANDX. We therefore consolidate MPLX and ANDX and record a noncontrolling interest for the interest owned by the public. We also record a redeemable noncontrolling interest related to MPLX’s preferred units. The creditors of MPLX and ANDX 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 23 for more information. Western Refining Southwest, Inc., a wholly-owned subsidiary of MPC and unitholder of ANDX, has guaranteed certain outstanding borrowings under the ANDX dropdown credit facility that were made in connection with the August 2018 dropdown transaction. The assets of MPLX and ANDX can only be used to settle their own obligations and their creditors have no recourse to our assets, except as noted above. The following table presents balance sheet information for the assets and liabilities of MPLX and ANDX, which are included in our balance sheets. June 30, December 31, (In millions) MPLX ANDX (a) MPLX ANDX (a) Assets Cash and cash equivalents $ 7 $ 25 $ 68 $ 10 Receivables, less allowance for doubtful accounts 345 202 425 199 Inventories 77 22 77 22 Other current assets 34 42 45 57 Equity method investments 4,409 605 4,174 602 Property, plant and equipment, net 15,021 6,929 14,639 6,845 Goodwill 2,581 1,052 2,586 1,051 Right of use assets 255 121 — — Other noncurrent assets 441 1,234 458 1,242 Liabilities Accounts payable $ 532 $ 290 $ 776 $ 215 Payroll and benefits payable 5 1 2 10 Accrued taxes 57 19 48 23 Debt due within one year 6 503 1 504 Operating lease liabilities 47 12 — — Other current liabilities 204 88 177 77 Long-term debt 14,030 4,726 13,392 4,469 Deferred income taxes 11 1 13 1 Long-term operating lease liabilities 209 108 — — Deferred credits and other liabilities 303 78 276 68 (a) The balances reflected here are ANDX’s historical balances as the preliminary purchase accounting adjustments related to ANDX’s assets and liabilities in connection with the Andeavor acquisition and reflected on our consolidated balance sheets as of June 30, 2019 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Transactions with related parties were as follows: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Sales to related parties (a) $ 186 $ 199 $ 372 $ 371 Purchases from related parties (b) 183 138 387 279 (a) Sales to related parties, which are included in sales and other operating revenues, consist primarily of sales of refined products to PFJ Southeast, an equity affiliate which owns and operates travel plazas primarily in the Southeast region of the United States. (b) Purchases from related parties are included in cost of revenues. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Income per Common Share | EARNINGS PER SHARE We compute basic earnings per share by dividing net income 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 per share using the two-class method. Diluted income per share assumes exercise of certain stock-based compensation awards, provided the effect is not anti-dilutive. Three Months Ended Six Months Ended (In millions, except per share data) 2019 2018 2019 2018 Basic earnings per share: Allocation of earnings: Net income attributable to MPC $ 1,106 $ 1,055 $ 1,099 $ 1,092 Income allocated to participating securities — 1 1 1 Income available to common stockholders – basic $ 1,106 $ 1,054 $ 1,098 $ 1,091 Weighted average common shares outstanding 662 459 667 467 Basic earnings per share $ 1.67 $ 2.30 $ 1.65 $ 2.34 Diluted earnings per share: Allocation of earnings: Net income attributable to MPC $ 1,106 $ 1,055 $ 1,099 $ 1,092 Income allocated to participating securities — 1 1 1 Income available to common stockholders – diluted $ 1,106 $ 1,054 $ 1,098 $ 1,091 Weighted average common shares outstanding 662 459 667 467 Effect of dilutive securities 4 5 5 5 Weighted average common shares, including dilutive effect 666 464 672 472 Diluted earnings per share $ 1.66 $ 2.27 $ 1.63 $ 2.31 The following table summarizes the shares that were anti-dilutive and, therefore, were excluded from the diluted share calculation. Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Shares issuable under stock-based compensation plans 4 1 3 1 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | EQUITY As of June 30, 2019 , we had $3.52 billion of share repurchase authorization remaining under authorizations from our board of directors. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, 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 discontinued at any time. Total share repurchases were as follows: Three Months Ended Six Months Ended (In millions, except per share data) 2019 2018 2019 2018 Number of shares repurchased 9 12 23 31 Cash paid for shares repurchased $ 500 $ 885 $ 1,385 $ 2,212 Average cost per share $ 57.18 $ 76.30 $ 60.75 $ 71.58 As of June 30, 2019 , we had agreements to acquire 109,200 common shares for $6 million |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have three reportable segments: Refining & Marketing; Retail; 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 at our 16 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 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 our Retail business segment and to independent entrepreneurs who operate primarily Marathon ® branded outlets. • Retail – sells transportation fuels and convenience products in the retail market across the United States through company-owned and operated convenience stores, primarily under the Speedway ® brand, and long-term fuel supply contracts with direct dealers who operate locations primarily 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 and ANDX. Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX and ANDX, and costs related to certain non-operating assets are not allocated to the Refining & Marketing and Retail segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments. (In millions) Refining & Marketing Retail Midstream Total Three Months Ended June 30, 2019 Revenues: Third party (a) $ 23,672 $ 8,944 $ 931 $ 33,547 Intersegment 5,482 2 1,218 6,702 Segment revenues $ 29,154 $ 8,946 $ 2,149 $ 40,249 Segment income from operations $ 906 $ 493 $ 878 $ 2,277 Supplemental Data Depreciation and amortization (b) $ 411 $ 130 $ 318 $ 859 Capital expenditures and investments (c) 430 120 814 1,364 (In millions) Refining & Marketing Retail Midstream Total Three Months Ended June 30, 2018 Revenues: Third party (a) $ 16,302 $ 5,265 $ 750 $ 22,317 Intersegment 2,871 2 762 3,635 Segment revenues $ 19,173 $ 5,267 $ 1,512 $ 25,952 Segment income from operations $ 1,025 $ 159 $ 617 $ 1,801 Supplemental Data Depreciation and amortization (b) $ 252 $ 73 $ 191 $ 516 Capital expenditures and investments (c) 196 88 601 885 (In millions) Refining & Marketing Retail Midstream Total Six Months Ended June 30, 2019 Revenues: Third party (a) $ 43,606 $ 16,320 $ 1,888 $ 61,814 Intersegment 9,911 4 2,450 12,365 Segment revenues $ 53,517 $ 16,324 $ 4,338 $ 74,179 Segment income from operations $ 572 $ 663 $ 1,786 $ 3,021 Supplemental Data Depreciation and amortization (b) $ 838 $ 256 $ 625 $ 1,719 Capital expenditures and investments (c) 824 193 1,637 2,654 (In millions) Refining & Marketing Retail Midstream Total Six Months Ended June 30, 2018 Revenues: Third party (a) $ 29,884 $ 9,836 $ 1,463 $ 41,183 Intersegment 5,250 3 1,393 6,646 Segment revenues $ 35,134 $ 9,839 $ 2,856 $ 47,829 Segment income from operations $ 892 $ 254 $ 1,184 $ 2,330 Supplemental Data Depreciation and amortization (b) $ 504 $ 152 $ 372 $ 1,028 Capital expenditures and investments (c) 387 127 1,083 1,597 (a) Includes related party sales. See Note 6 for additional information. (b) Differences between segment totals and MPC consolidated totals represent amounts related to corporate and other unallocated items and are included in items not allocated to segments in the reconciliation below. (c) Capital expenditures include changes in capital accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Segment income from operations $ 2,277 $ 1,801 $ 3,021 $ 2,330 Items not allocated to segments: Corporate and other unallocated items (a) (179 ) (81 ) (370 ) (170 ) Capline restructuring gain (b) — — 207 — Transaction-related costs (c) (34 ) (10 ) (125 ) (10 ) Litigation (22 ) — (22 ) — Impairments — 1 — 1 Income from operations 2,042 1,711 2,711 2,151 Net interest and other financial costs 322 195 628 378 Income before income taxes $ 1,720 $ 1,516 $ 2,083 $ 1,773 (a) Corporate and other unallocated items consist primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX and ANDX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Retail segments. (b) See Note 13 . (c) The transaction-related costs recognized in the 2019 year-to-date period include the recognition of an obligation for employee benefits provided to former Andeavor employees. The following reconciles segment capital expenditures and investments to total capital expenditures: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Segment capital expenditures and investments $ 1,364 $ 885 $ 2,654 $ 1,597 Less investments in equity method investees 270 77 595 118 Plus items not allocated to segments: Corporate 4 17 14 35 Capitalized interest 34 16 65 34 Total capital expenditures (a) $ 1,132 $ 841 $ 2,138 $ 1,548 (a) Capital expenditures include changes in capital accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the six months ended June 30, 2019 and 2018 as reported in the consolidated statements of cash flows. |
Net Interest and Other Financia
Net Interest and Other Financial Costs | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended (In millions) 2019 2018 2019 2018 Interest income $ (9 ) $ (25 ) $ (18 ) $ (45 ) Interest expense 350 229 690 442 Interest capitalized (35 ) (16 ) (67 ) (34 ) Pension and other postretirement non-service costs (a) 3 2 — 2 Loss on extinguishment of debt — — — 4 Other financial costs 13 5 23 9 Net interest and other financial costs $ 322 $ 195 $ 628 $ 378 (a) See Note 21 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The combined federal, state and foreign income tax rate was 21 percent and 19 percent for the three months ended June 30, 2019 and 2018 , respectively, and 22 percent and 17 percent for the six months ended June 30, 2019 and 2018 , respectively. The effective tax rate for the three months ended June 30, 2019 was equal to the U.S. statutory rate of 21 percent primarily due to certain permanent tax differences related to net income attributable to noncontrolling interests offset by equity compensation and state and local tax expense. The effective tax rate for the six months ended June 30, 2019 was greater than the U.S. statutory rate of 21 percent primarily due to $36 million of state deferred tax expense recorded as an out of period adjustment, partially offset by permanent tax differences related to net income attributable to noncontrolling interests. The effective tax rate for the three and six months ended June 30, 2018 was less than the U.S. statutory rate primarily due to certain permanent tax differences related to net income attributable to noncontrolling interests and equity compensation offset by state and local tax expense. During the first quarter of 2019, MPC’s deferred tax liabilities increased $68 million with an offsetting increase to goodwill and the provision for income taxes of $32 million and $36 million , respectively for an out of period adjustment to correct the tax effects recorded in 2018 related to the Andeavor acquisition. The impact of the adjustment was not material to any previous period. We are continuously undergoing examination of our income tax returns, which have been completed through the 2006 tax year for state returns and the 2008 tax year for our U.S. federal return. As of June 30, 2019 , we had $202 million of unrecognized tax benefits. Prior to its spinoff on June 30, 2011, Marathon Petroleum Corporation was included in the Marathon Oil Corporation (“Marathon Oil”) U.S. federal income tax returns for all applicable years. During the third quarter of 2017, Marathon Oil received a notice of Final Partnership Administrative Adjustment (“FPAA”) from the U.S. Internal Revenue Service for taxable year 2010, relating to certain partnership transactions. Marathon Oil filed a U.S. Tax Court petition disputing these adjustments during the fourth quarter of 2017. We received an FPAA for taxable years 2011-2014 for items resulting from this matter and filed a U.S. Tax Court petition for tax years 2011-2014 to dispute these corollary adjustments in the fourth quarter of 2017. We continue to believe that the issue in dispute is more likely than not to be fully sustained and, therefore, no liability has been accrued for this matter. Pursuant to our tax sharing agreement with Marathon Oil, the unrecognized tax benefits related to pre-spinoff operations for which Marathon Oil was the taxpayer remain the responsibility of Marathon Oil and we have indemnified Marathon Oil accordingly. See Note 23 for indemnification information. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (In millions) June 30, December 31, Crude oil and refinery feedstocks $ 3,468 $ 3,655 Refined products 4,601 5,234 Materials and supplies 801 720 Merchandise 218 228 Total $ 9,088 $ 9,837 Inventories are carried at the lower of cost or market value. The cost of inventories of crude oil and refinery feedstocks, refined products and merchandise is determined primarily under the LIFO method. There were no LIFO inventory liquidations recognized for the six months ended June 30, 2019 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | EQUITY METHOD INVESTMENTS During the three months ended March 31, 2019, we executed agreements with Capline Pipeline Company LLC (“Capline LLC”) to contribute our 33 percent undivided interest in Capline pipeline system in exchange for a 33 percent ownership interest in Capline LLC. Concurrent with our execution of these agreements, Capline LLC initiated a binding open season for southbound service from Patoka, IL to St. James, LA or Liberty, MS, with an additional origination point at Cushing, OK. Service from Cushing, OK is part of a joint tariff with Diamond pipeline. Crude oil service is expected to begin in the third quarter of 2020. In accordance with ASC 810, we derecognized our undivided interest amounting to $143 million of net assets and recognized the Capline LLC ownership interest we received at fair value. We used an income approach to determine the fair value of our ownership interest under a Monte Carlo simulation method. We estimated the fair value of our ownership interest to be $350 million as of January 30, 2019. This is a nonrecurring fair value measurement and is categorized in level 3 of the fair value hierarchy. The Monte Carlo simulation inputs include ranges of tariff rates, operating volumes, operating cost and capital expenditure assumptions. The estimated cash flows were discounted using a Monte Carlo market participant weighted average cost of capital estimate. None of the inputs to the Monte Carlo simulation are individually significant. The excess of the estimated fair value of our ownership interest over the carrying value of the derecognized net assets resulted in a $207 million non-cash net gain recorded as a net gain on disposal of assets in the accompanying consolidated statements of income. As the Capline system is currently idled, Capline LLC is unable to fund its operations without financial support from its equity owners and is a VIE. MPC is not deemed to be the primary beneficiary, due to our inability to unilaterally control significant decision-making rights. Our maximum exposure to loss as a result of our involvement with Capline LLC includes our equity investment, any additional capital contribution commitments and any operating expenses incurred by Capline LLC in excess of compensation received for performance of the operating services. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT (In millions) June 30, December 31, Refining & Marketing $ 28,429 $ 27,590 Retail 6,767 6,637 Midstream 26,472 25,692 Corporate and Other 1,234 1,294 Total 62,902 61,213 Less accumulated depreciation 17,567 16,155 Property, plant and equipment, net $ 45,335 $ 45,058 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 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. June 30, 2019 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 $ 227 $ 12 $ — $ (200 ) $ 39 $ 68 Liabilities: Commodity contracts $ 193 $ 12 $ — $ (203 ) $ 2 $ — Embedded derivatives in commodity contracts — — 65 — 65 — December 31, 2018 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 $ 370 $ 31 $ — $ (323 ) $ 78 $ 2 Liabilities: Commodity contracts $ 255 $ 37 $ — $ (284 ) $ 8 $ — Embedded derivatives in commodity contracts — — 61 — 61 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of June 30, 2019 , cash collateral of $3 million was netted with the mark-to-market derivative liabilities. As of December 31, 2018 , cash collateral of $52 million was netted with mark-to-market derivative assets and $13 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. Commodity derivatives in Level 1 are exchange-traded contracts for crude oil and refined products measured at fair value with a market approach using the close-of-day settlement prices for the market. Commodity derivatives are covered under master netting agreements with an unconditional right to offset. Collateral deposits in futures commission merchant accounts covered by master netting agreements related to Level 1 commodity derivatives are classified as Level 1 in the fair value hierarchy. Level 2 instruments are valued based on quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices, such as liquidity, that are observable for the asset or liability. Commodity derivatives in Level 2 are OTC contracts, which are valued using market quotations from independent price reporting agencies, third-party brokers and commodity exchange price curves that are corroborated with market data. Level 3 instruments are OTC NGL contracts and 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 June 30, 2019 used significant unobservable inputs including: (1) NGL prices interpolated and extrapolated due to inactive markets ranging from $0.46 to $1.14 per gallon and (2) the probability of renewal of 92 percent for the first five-term and 82 percent for the second five-term of the natural gas purchase agreement and the related keep-whole processing agreement. For these contracts, increases in forward NGL prices result in a decrease in the fair value of the derivative assets and an increase in the fair value of the derivative liabilities. Increases or decreases in the fractionation spread result in an increase or decrease in the fair value of the embedded derivative liability. An increase in the probability of renewal would result in an increase in the fair value of the related embedded derivative liability. 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 Six Months Ended (In millions) 2019 2018 2019 2018 Beginning balance $ 65 $ 60 $ 61 $ 66 Unrealized and realized losses included in net income 1 12 7 9 Settlements of derivative instruments (1 ) (4 ) (3 ) (7 ) Ending balance $ 65 $ 68 $ 65 $ 68 The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: $ 2 $ 11 $ 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 fixed rate 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 $27.9 billion and $29.4 billion at June 30, 2019 , respectively, and approximately $27.0 billion and $26.5 billion at December 31, 2018 , respectively. These carrying and fair values of our debt exclude the unamortized issuance costs which are netted against our total debt. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
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 and (6) the purchase of natural gas. The following table presents the fair value of derivative instruments as of June 30, 2019 and December 31, 2018 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) June 30, 2019 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 237 $ 201 Other current liabilities (a) 2 11 Deferred credits and other liabilities (a) — 58 (In millions) December 31, 2018 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 400 $ 283 Other current liabilities (a) 1 16 Deferred credits and other liabilities (a) — 54 (a) Includes embedded derivatives. The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of June 30, 2019 . Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 77.3% 44,617 54,420 Refined products 91.4% 20,300 8,703 Blending products 74.1% 1,521 4,416 OTC Crude oil —% 400 — Blending products 4.5% 1,156 1,156 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 2,910 long and 2,310 short; Refined products - 1,450 long and 275 short; Blending products - 961 long and 831 short The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: (In millions) Three Months Ended June 30, Six Months Ended June 30, Income Statement Location 2019 2018 2019 2018 Sales and other operating revenues $ 3 $ (1 ) $ (17 ) $ (2 ) Cost of revenues 15 (56 ) (65 ) (83 ) Total $ 18 $ (57 ) $ (82 ) $ (85 ) |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Our outstanding borrowings at June 30, 2019 and December 31, 2018 consisted of the following: (In millions) June 30, December 31, Marathon Petroleum Corporation $ 9,119 $ 9,114 MPLX LP 14,473 13,856 ANDX LP 5,263 5,010 Total debt $ 28,855 $ 27,980 Unamortized debt issuance costs (124 ) (128 ) Unamortized discount (324 ) (328 ) Amounts due within one year (554 ) (544 ) Total long-term debt due after one year $ 27,853 $ 26,980 Available Capacity under our Facilities (Dollars in millions) Total Capacity Outstanding Borrowings Outstanding Letters of Credit Available Capacity Weighted Average Interest Rate Expiration MPC 364-day bank revolving credit facility $ 1,000 $ — $ — $ 1,000 — September 2019 MPC bank revolving credit facility 5,000 — 32 4,968 — October 2023 MPC trade receivables securitization facility 750 — — 750 — July 2019 MPLX bank revolving credit facility 2,250 615 3 1,632 3.80 % July 2022 ANDX revolving & dropdown credit facilities (a) 2,100 1,500 — 600 3.90 % January 2021 $ 11,100 $ 2,115 $ 35 $ 8,950 (a) Western Refining Southwest, Inc., a wholly-owned subsidiary of MPC and unitholder of ANDX, has guaranteed certain outstanding borrowings under the ANDX dropdown credit facility that were made in connection with the August 2018 dropdown transaction. MPC 364-Day Bank Revolving Credit Facility On July 26, 2019, we entered into a new $1 billion 364-day revolving credit facility with a syndicate of banks that will, subject to the satisfaction of customary conditions, become effective upon the expiration of our existing $1 billion 364-day revolving credit facility in September 2019. The new 364-day revolving credit facility contains substantially the same terms and conditions as our existing 364-day revolving credit facility and will expire in September 2020. MPC Trade Receivables Securitization Facility On July 19, 2019, we amended our $750 million trade receivables securitization facility to extend the maturity date to July 16, 2021. MPLX Credit Agreement Upon the completion of the merger of MPLX and ANDX on July 30, 2019, the MPLX bank revolving credit facility was amended and restated to increase the borrowing capacity to $3.5 billion and to extend the maturity date to July 30, 2024. The ANDX revolving and dropdown credit facilities were terminated and all outstanding balances were repaid and funded with the new $3.5 billion bank revolving credit facility. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE The following table presents our revenues disaggregated by product line. Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Refined products $ 29,668 $ 19,489 $ 54,504 $ 35,816 Merchandise 1,601 1,286 3,065 2,416 Crude oil and refinery feedstocks 1,669 978 3,036 1,861 Midstream services, transportation and other 609 564 1,209 1,090 Sales and other operating revenues $ 33,547 $ 22,317 $ 61,814 $ 41,183 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 June 30, 2019 , 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 June 30, 2019 include matching buy/sell receivables of $2.21 billion |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Six Months Ended (In millions) 2019 2018 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 579 $ 279 Net income taxes paid to taxing authorities 362 40 Cash paid for amounts included in the measurement of lease liabilities Payments on operating leases (a) 380 — Interest payments under finance lease obligations (a) 15 — Net cash provided by financing activities included: Principal payments under finance lease obligations (a) 21 — Non-cash investing and financing activities: Right of use assets obtained in exchange for new operating lease obligations (a) 114 — Right of use assets obtained in exchange for new finance lease obligations (a) 22 — Contribution of net assets to Capline LLC (b) 143 — Recognition of Capline LLC equity method investment (b) 350 — (a) Disclosure added in 2019 following the adoption of ASC 842. (b) See Note 13 . (In millions) June 30, December 31, Cash and cash equivalents $ 1,247 $ 1,687 Restricted cash (a) 2 38 Cash, cash equivalents and restricted cash $ 1,249 $ 1,725 (a) The restricted cash balance is included within other current assets on the consolidated balance sheets. 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: Six Months Ended (In millions) 2019 2018 Additions to property, plant and equipment per the consolidated statements of cash flows $ 2,419 $ 1,466 Asset retirement expenditures — 5 Increase (decrease) in capital accruals (281 ) 77 Total capital expenditures $ 2,138 $ 1,548 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
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 Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2017 $ (190 ) $ (48 ) $ 4 $ 3 $ (231 ) Other comprehensive income (loss) before reclassifications 2 (1 ) (2 ) — (1 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (16 ) (2 ) — — (18 ) – actuarial loss (a) 17 — — — 17 – settlement loss (a) 2 — — — 2 Other — — — (2 ) (2 ) Tax effect (1 ) 1 — — — Other comprehensive income (loss) 4 (2 ) (2 ) (2 ) (2 ) Balance as of June 30, 2018 $ (186 ) $ (50 ) $ 2 $ 1 $ (233 ) (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2018 $ (132 ) $ (23 ) $ 2 $ 9 $ (144 ) Other comprehensive income (loss) before reclassifications (7 ) 1 — — (6 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (23 ) — — — (23 ) – actuarial loss (a) 11 (1 ) — — 10 – settlement loss (a) 2 — — — 2 Other — — — (2 ) (2 ) Tax effect 2 — — — 2 Other comprehensive loss (15 ) — — (2 ) (17 ) Balance as of June 30, 2019 $ (147 ) $ (23 ) $ 2 $ 7 $ (161 ) (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 | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT BENEFITS The following summarizes the components of net periodic benefit costs: Three Months Ended June 30, 2019 Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 60 $ 35 $ 8 $ 8 Interest cost 27 18 10 8 Expected return on plan assets (31 ) (24 ) — — Amortization – prior service credit (12 ) (8 ) — (1 ) – actuarial loss 7 8 (1 ) — – settlement loss 2 1 — — Net periodic benefit cost $ 53 $ 30 $ 17 $ 15 Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 118 $ 71 $ 16 $ 15 Interest cost 55 36 19 15 Expected return on plan assets (63 ) (50 ) — — Amortization – prior service credit (23 ) (16 ) — (2 ) – actuarial loss 11 17 (1 ) — – settlement loss 2 2 — — Net periodic benefit cost $ 100 $ 60 $ 34 $ 28 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 six months ended June 30, 2019 , we made a $16 million contribution to our funded pension plans. Benefit payments related to unfunded pension and other postretirement benefit plans were $9 million and $23 million , respectively, during the six months ended June 30, 2019 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Finance and Operating Leases [Text Block] | LEASES For further information regarding the adoption of ASC 842, including the method of adoption and practical expedients elected, see Note 2 . Lessee We lease a wide variety of facilities and equipment including land and building space, office and field equipment, storage facilities and transportation equipment. Our remaining lease terms range from less than one year to 60 years . Most long-term leases include renewal options ranging from less than one year to 49 years and, in certain leases, also include purchase options. The lease term included in the measurement of right of use assets and lease liabilities includes options to extend or terminate our leases that we are reasonably certain to exercise. Options were included in the lease term primarily for retail store sites where we constructed property, plant and equipment on leased land that is expected to exist beyond the initial lease term. Under ASC 842, the components of lease cost were as follows: Three Months Ended Six Months Ended (In millions) 2019 2019 Finance lease cost: Amortization of right of use assets $ 15 $ 29 Interest on lease liabilities 9 20 Operating lease cost 198 388 Variable lease cost 29 43 Short-term lease cost 162 314 Total lease cost $ 413 $ 794 Supplemental balance sheet data related to leases were as follows: (In millions) June 30, 2019 Operating leases Assets Right of use assets $ 2,588 Liabilities Operating lease liabilities $ 615 Long-term operating lease liabilities 2,068 Total operating lease liabilities $ 2,683 Weighted average remaining lease term (in years) 6.4 Weighted average discount rate 4.12 % Finance leases Assets Property, plant and equipment, gross $ 786 Accumulated depreciation 243 Property, plant and equipment, net $ 543 Liabilities Debt due within one year $ 51 Long-term debt 604 Total finance lease liabilities $ 655 Weighted average remaining lease term (in years) 12.8 Weighted average discount rate 6.04 % As of June 30, 2019 , maturities of lease liabilities for operating lease obligations and finance lease obligations having initial or remaining non-cancellable lease terms in excess of one year are as follows: (In millions) Operating Finance 2019 $ 381 $ 39 2020 650 78 2021 562 70 2022 383 77 2023 273 83 2024 and thereafter 837 600 Gross lease payments 3,086 947 Less: imputed interest 403 292 Total lease liabilities $ 2,683 $ 655 Presented in accordance with ASC 840, future minimum commitments as of December 31, 2018 for operating lease obligations and capital lease obligations having initial or remaining non-cancellable lease terms in excess of one year were as follows: (In millions) Operating Capital 2019 $ 709 $ 70 2020 619 71 2021 553 66 2022 389 75 2023 295 82 2024 and thereafter 858 586 Total minimum lease payments $ 3,423 950 Less: imputed interest costs 301 Present value of net minimum lease payments $ 649 |
Leases of Lessor Disclosure | Lessor MPLX has certain natural gas gathering, transportation and processing agreements in which it is considered to be the lessor under several implicit operating lease arrangements in accordance with GAAP. MPLX’s primary implicit lease operations relate to a natural gas gathering agreement in the Marcellus region for which it earns a fixed-fee for providing gathering services to a single producer using a dedicated gathering system. As the gathering system is expanded, the fixed-fee charged to the producer is adjusted to include the additional gathering assets in the lease. The primary term of the natural gas gathering arrangement expires in 2038 and will continue thereafter on a year-to-year basis until terminated by either party. Other implicit leases relate to a natural gas processing agreement in the Marcellus region and a natural gas processing agreement in the Southern Appalachia region for which MPLX earns minimum monthly fees for providing processing services to a single producer using a dedicated processing plant. The primary term of these natural gas processing agreements expire during 2023 and 2033. MPLX did not elect to use the practical expedient to combine lease and non-lease components for lessor arrangements. The tables below represent the portion of the contract allocated to the lease component based on relative standalone selling price. Lessor agreements are currently deemed operating, as we elected the practical expedient to grandfather in historical ASC 840 lease classifications. MPLX may be required to re-classify existing operating leases to sales-type leases upon modification and related reassessment of the leases. Our revenue from implicit lease arrangements, excluding executory costs, totaled approximately $63 million and $123 million for the three and six months ended June 30, 2019 , respectively. The implicit lease arrangements related to the processing facilities contain contingent rental provisions whereby we receive additional fees if the producer customer exceeds the monthly minimum processed volumes. During the three and six months ended June 30, 2019 , MPLX did not receive any material contingent lease payments. The following is a schedule of minimum future rentals on the non‑cancellable operating leases as of June 30, 2019 : (In millions) 2019 $ 90 2020 178 2021 169 2022 166 2023 161 2024 and thereafter 1,264 Total minimum future rentals $ 2,028 The following schedule summarizes our investment in assets held for operating lease by major classes as of June 30, 2019 : (In millions) June 30, 2019 Natural gas gathering and NGL transportation pipelines and facilities $ 1,039 Natural gas processing facilities 633 Terminal and related assets 111 Land, building, office equipment and other 44 Property, plant and equipment 1,827 Less accumulated depreciation 284 Property, plant and equipment, net $ 1,543 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 , accrued liabilities for remediation totaled $449 million and $455 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 $35 million and $35 million at June 30, 2019 and December 31, 2018 , respectively. Governmental and other entities in California, New York, Maryland and Rhode Island have filed lawsuits against coal, gas, oil and petroleum companies, including the Company. The lawsuits allege damages as a result of climate change and the plaintiffs are seeking unspecified damages and abatement under various tort theories. Similar lawsuits may be filed in other jurisdictions. At this early stage, the ultimate outcome of these matters remains 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. Lawsuits In May 2015, the Kentucky attorney general filed a lawsuit against our wholly-owned subsidiary, Marathon Petroleum Company LP (“MPC LP”), in the United States District Court for the Western District of Kentucky asserting claims under federal and state antitrust statutes, the Kentucky Consumer Protection Act, and state common law. The complaint, as amended in July 2015, alleges that MPC LP used deed restrictions, supply agreements with customers and exchange agreements with competitors to unreasonably restrain trade in areas within Kentucky and seeks declaratory relief, unspecified damages, civil penalties, restitution and disgorgement of profits. At this stage, the ultimate outcome of this litigation remains uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined, and we are unable to estimate a reasonably possible loss (or range of loss) for this matter. We intend to vigorously defend ourselves in this matter. In May 2007, the Kentucky attorney general filed a lawsuit against us and Marathon Oil in state court in Franklin County, Kentucky for alleged violations of Kentucky’s emergency pricing and consumer protection laws following Hurricanes Katrina and Rita in 2005. The lawsuit alleged that we overcharged customers by $89 million during September and October 2005 . The complaint sought disgorgement of these sums, as well as penalties, under Kentucky’s emergency pricing and consumer protection laws. In May 2011, the Kentucky attorney general amended his complaint to include a request for immediate injunctive relief as well as unspecified damages and penalties related to our wholesale gasoline pricing in April and May 2011 under statewide price controls that were activated by the Kentucky governor on April 26, 2011 and which have since expired. The court denied the attorney general’s request for immediate injunctive relief. In July 2019, MPC and the attorney general reached a settlement to resolve this litigation. This resolution will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. 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 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 —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 vary but tend 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 June 30, 2019 . In connection with our 25 percent interest in Gray Oak Pipeline, LLC (“Gray Oak Pipeline”), we have entered into an Equity Contribution Agreement obligating us to make certain equity contributions to Gray Oak Pipeline to support its obligations under a construction loan facility. Gray Oak Pipeline is constructing the Gray Oak oil pipeline, a crude oil transportation system from West Texas and the Eagle Ford formation to destinations in the Ingleside, Corpus Christi and Sweeney, Texas markets. Gray Oak Pipeline has entered into the construction loan facility with a syndicate of banks to finance a portion of the construction costs of the pipeline project. The Equity Contribution Agreement requires us to contribute our pro rata share of any amounts necessary to allow Gary Oak Pipeline to cure any payment defaults under the construction loan facility or to repay all amounts outstanding under the facility, including principal, accrued interest, fees and expenses, in certain circumstances, including the abandonment of the Gray Oak pipeline project prior to completion or the failure of Gray Oak Pipeline to repay or refinance the construction loan facility prior to its scheduled maturity date of June 3, 2022. Gray Oak may borrow up to $1.43 billion under the construction loan facility (after giving effect to the exercise of all options to increase its borrowing capacity). As of June 30, 2019 , our maximum potential undiscounted payments under the Equity Contribution Agreement for the debt principal totaled $138 million . In connection with MPLX’s approximate nine percent indirect interest in a joint venture that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, collectively referred to as the Bakken Pipeline system, MPLX has entered into a Contingent Equity Contribution Agreement. MPLX, along with the other joint venture owners in the Bakken Pipeline system, have 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. As of June 30, 2019 , our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement was approximately $230 million . 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 agreement. The term loan agreement provides for loans of up to $325 million 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. As of June 30, 2019 , our maximum potential undiscounted payments under this agreement for debt principal totaled $125 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 June 30, 2019 , our maximum potential undiscounted payments under this arrangement was $125 million . Marathon Oil indemnifications — In conjunction with our spinoff from Marathon Oil, we have entered into arrangements with Marathon Oil providing indemnities and guarantees with recorded values of $1 million as of June 30, 2019 , which consist of unrecognized tax benefits related to MPC, its consolidated subsidiaries and the refining, marketing and transportation business operations prior to our spinoff which are not already reflected in the unrecognized tax benefits described in Note 11 , and other contingent liabilities Marathon Oil may incur related to taxes. Furthermore, the separation and distribution agreement and other agreements with Marathon Oil to effect our spinoff provide for cross-indemnities between Marathon Oil and us. In general, Marathon Oil is required to indemnify us for any liabilities relating to Marathon Oil’s historical oil and gas exploration and production operations, oil sands mining operations and integrated gas operations, and we are required to indemnify Marathon Oil for any liabilities relating to Marathon Oil’s historical refining, marketing and transportation operations. The terms of these indemnifications are indefinite and the amounts are not capped. Other guarantees —We have entered into other guarantees with maximum potential undiscounted payments totaling $123 million as of June 30, 2019 , 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. See Note 5 for information regarding our guarantee of certain borrowings under the ANDX dropdown credit facility. General guarantees associated with dispositions —Over the years, we have sold various assets in the normal course of our business. Certain of the related agreements contain performance and general guarantees, including guarantees regarding inaccuracies in representations, warranties, covenants and agreements, and environmental and general indemnifications that require us to perform upon the occurrence of a triggering event or condition. These guarantees and indemnifications are part of the normal course of selling assets. We are typically not able to calculate the maximum potential amount of future payments that could be made under such contractual provisions because of the variability inherent in the guarantees and indemnities. Most often, the nature of the guarantees and indemnities is such that there is no appropriate method for quantifying the exposure because the underlying triggering event has little or no past experience upon which a reasonable prediction of the outcome can be based. Contractual Commitments and Contingencies At June 30, 2019 , our contractual commitments to acquire property, plant and equipment and advance funds to equity method investees totaled $1.15 billion . |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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. |
Inventories | Inventories are carried at the lower of cost or market value. The cost of inventories of crude oil and refinery feedstocks, refined products and merchandise is determined primarily under the LIFO method. |
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 and (6) the purchase of natural gas. |
Master Limited Partnerships (Ta
Master Limited Partnerships (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | As a result of equity transactions of MPLX and ANDX, 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 and ANDX were as follows: Six Months Ended (In millions) 2019 2018 Increase due to the issuance of MPLX common units and general partner units to MPC $ — $ 1,114 Increase due to GP/IDR Exchange — 1,808 Increase due to the issuance of MPLX & ANDX common units 7 5 Increase in MPC's additional paid-in capital 7 2,927 Tax impact (2 ) (546 ) Increase in MPC's additional paid-in capital, net of tax $ 5 $ 2,381 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | During the six months ended June 30, 2019 , we recorded adjustments to the preliminary fair value estimates of assets acquired and liabilities assumed as of the acquisition date as noted in the table below. (In millions) As originally reported Adjustments As adjusted Cash and cash equivalents $ 382 $ — $ 382 Receivables 2,744 (2 ) 2,742 Inventories 5,204 (9 ) 5,195 Other current assets 378 — 378 Equity method investments 865 37 902 Property, plant and equipment, net 16,545 (78 ) 16,467 Other noncurrent assets (a) 3,086 (1 ) 3,085 Total assets acquired 29,204 (53 ) 29,151 Accounts payable 4,003 (4 ) 3,999 Payroll and benefits payable 348 — 348 Accrued taxes 590 — 590 Debt due within one year 34 — 34 Other current liabilities 392 30 422 Long-term debt 8,875 1 8,876 Deferred income taxes 1,609 16 1,625 Defined benefit postretirement plan obligations 432 — 432 Deferred credit and other liabilities 714 15 729 Noncontrolling interests 5,059 3 5,062 Total liabilities and noncontrolling interest assumed 22,056 61 22,117 Net assets acquired excluding goodwill 7,148 (114 ) 7,034 Goodwill 16,314 114 16,428 Net assets acquired $ 23,462 $ — $ 23,462 (a) Includes intangible assets. |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information presents consolidated results assuming the Andeavor acquisition occurred on January 1, 2017. The unaudited pro forma information does not give effect to potential synergies that could result from the transaction and is not necessarily indicative of the results of future operations. Three Months Ended Six Months Ended (In millions) 2018 2018 Sales and other operating revenues $ 34,959 $ 64,338 Net income attributable to MPC 1,452 1,478 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The assets of MPLX and ANDX can only be used to settle their own obligations and their creditors have no recourse to our assets, except as noted above. The following table presents balance sheet information for the assets and liabilities of MPLX and ANDX, which are included in our balance sheets. June 30, December 31, (In millions) MPLX ANDX (a) MPLX ANDX (a) Assets Cash and cash equivalents $ 7 $ 25 $ 68 $ 10 Receivables, less allowance for doubtful accounts 345 202 425 199 Inventories 77 22 77 22 Other current assets 34 42 45 57 Equity method investments 4,409 605 4,174 602 Property, plant and equipment, net 15,021 6,929 14,639 6,845 Goodwill 2,581 1,052 2,586 1,051 Right of use assets 255 121 — — Other noncurrent assets 441 1,234 458 1,242 Liabilities Accounts payable $ 532 $ 290 $ 776 $ 215 Payroll and benefits payable 5 1 2 10 Accrued taxes 57 19 48 23 Debt due within one year 6 503 1 504 Operating lease liabilities 47 12 — — Other current liabilities 204 88 177 77 Long-term debt 14,030 4,726 13,392 4,469 Deferred income taxes 11 1 13 1 Long-term operating lease liabilities 209 108 — — Deferred credits and other liabilities 303 78 276 68 (a) The balances reflected here are ANDX’s historical balances as the preliminary purchase accounting adjustments related to ANDX’s assets and liabilities in connection with the Andeavor acquisition and reflected on our consolidated balance sheets as of June 30, 2019 and December 31, 2018 have not yet been pushed down to this subsidiary. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Sales to Related Parties | Transactions with related parties were as follows: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Sales to related parties (a) $ 186 $ 199 $ 372 $ 371 Purchases from related parties (b) 183 138 387 279 (a) Sales to related parties, which are included in sales and other operating revenues, consist primarily of sales of refined products to PFJ Southeast, an equity affiliate which owns and operates travel plazas primarily in the Southeast region of the United States. (b) Purchases from related parties are included in cost of revenues. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Common Share | We compute basic earnings per share by dividing net income 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 per share using the two-class method. Diluted income per share assumes exercise of certain stock-based compensation awards, provided the effect is not anti-dilutive. Three Months Ended Six Months Ended (In millions, except per share data) 2019 2018 2019 2018 Basic earnings per share: Allocation of earnings: Net income attributable to MPC $ 1,106 $ 1,055 $ 1,099 $ 1,092 Income allocated to participating securities — 1 1 1 Income available to common stockholders – basic $ 1,106 $ 1,054 $ 1,098 $ 1,091 Weighted average common shares outstanding 662 459 667 467 Basic earnings per share $ 1.67 $ 2.30 $ 1.65 $ 2.34 Diluted earnings per share: Allocation of earnings: Net income attributable to MPC $ 1,106 $ 1,055 $ 1,099 $ 1,092 Income allocated to participating securities — 1 1 1 Income available to common stockholders – diluted $ 1,106 $ 1,054 $ 1,098 $ 1,091 Weighted average common shares outstanding 662 459 667 467 Effect of dilutive securities 4 5 5 5 Weighted average common shares, including dilutive effect 666 464 672 472 Diluted earnings per share $ 1.66 $ 2.27 $ 1.63 $ 2.31 |
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 Six Months Ended (In millions) 2019 2018 2019 2018 Shares issuable under stock-based compensation plans 4 1 3 1 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Share Repurchases | Total share repurchases were as follows: Three Months Ended Six Months Ended (In millions, except per share data) 2019 2018 2019 2018 Number of shares repurchased 9 12 23 31 Cash paid for shares repurchased $ 500 $ 885 $ 1,385 $ 2,212 Average cost per share $ 57.18 $ 76.30 $ 60.75 $ 71.58 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Income From Operations Attributable To Operating Segments | Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX and ANDX, and costs related to certain non-operating assets are not allocated to the Refining & Marketing and Retail segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments. (In millions) Refining & Marketing Retail Midstream Total Three Months Ended June 30, 2019 Revenues: Third party (a) $ 23,672 $ 8,944 $ 931 $ 33,547 Intersegment 5,482 2 1,218 6,702 Segment revenues $ 29,154 $ 8,946 $ 2,149 $ 40,249 Segment income from operations $ 906 $ 493 $ 878 $ 2,277 Supplemental Data Depreciation and amortization (b) $ 411 $ 130 $ 318 $ 859 Capital expenditures and investments (c) 430 120 814 1,364 (In millions) Refining & Marketing Retail Midstream Total Three Months Ended June 30, 2018 Revenues: Third party (a) $ 16,302 $ 5,265 $ 750 $ 22,317 Intersegment 2,871 2 762 3,635 Segment revenues $ 19,173 $ 5,267 $ 1,512 $ 25,952 Segment income from operations $ 1,025 $ 159 $ 617 $ 1,801 Supplemental Data Depreciation and amortization (b) $ 252 $ 73 $ 191 $ 516 Capital expenditures and investments (c) 196 88 601 885 (In millions) Refining & Marketing Retail Midstream Total Six Months Ended June 30, 2019 Revenues: Third party (a) $ 43,606 $ 16,320 $ 1,888 $ 61,814 Intersegment 9,911 4 2,450 12,365 Segment revenues $ 53,517 $ 16,324 $ 4,338 $ 74,179 Segment income from operations $ 572 $ 663 $ 1,786 $ 3,021 Supplemental Data Depreciation and amortization (b) $ 838 $ 256 $ 625 $ 1,719 Capital expenditures and investments (c) 824 193 1,637 2,654 (In millions) Refining & Marketing Retail Midstream Total Six Months Ended June 30, 2018 Revenues: Third party (a) $ 29,884 $ 9,836 $ 1,463 $ 41,183 Intersegment 5,250 3 1,393 6,646 Segment revenues $ 35,134 $ 9,839 $ 2,856 $ 47,829 Segment income from operations $ 892 $ 254 $ 1,184 $ 2,330 Supplemental Data Depreciation and amortization (b) $ 504 $ 152 $ 372 $ 1,028 Capital expenditures and investments (c) 387 127 1,083 1,597 (a) Includes related party sales. See Note 6 for additional information. (b) Differences between segment totals and MPC consolidated totals represent amounts related to corporate and other unallocated items and are included in items not allocated to segments in the reconciliation below. (c) Capital expenditures include changes in capital accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. |
Reconciliation Of Segment Income From Operations To Income Before Income Taxes | The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Segment income from operations $ 2,277 $ 1,801 $ 3,021 $ 2,330 Items not allocated to segments: Corporate and other unallocated items (a) (179 ) (81 ) (370 ) (170 ) Capline restructuring gain (b) — — 207 — Transaction-related costs (c) (34 ) (10 ) (125 ) (10 ) Litigation (22 ) — (22 ) — Impairments — 1 — 1 Income from operations 2,042 1,711 2,711 2,151 Net interest and other financial costs 322 195 628 378 Income before income taxes $ 1,720 $ 1,516 $ 2,083 $ 1,773 (a) Corporate and other unallocated items consist primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX and ANDX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Retail segments. (b) See Note 13 . (c) The transaction-related costs recognized in the 2019 year-to-date period include the recognition of an obligation for employee benefits provided to former Andeavor employees. |
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures | The following reconciles segment capital expenditures and investments to total capital expenditures: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Segment capital expenditures and investments $ 1,364 $ 885 $ 2,654 $ 1,597 Less investments in equity method investees 270 77 595 118 Plus items not allocated to segments: Corporate 4 17 14 35 Capitalized interest 34 16 65 34 Total capital expenditures (a) $ 1,132 $ 841 $ 2,138 $ 1,548 (a) Capital expenditures include changes in capital accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the six months ended June 30, 2019 and 2018 as reported in the consolidated statements of cash flows. |
Net Interest and Other Financ_2
Net Interest and Other Financial Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Net Interest And Other Financial Income (Costs) | Net interest and other financial costs were as follows: Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Interest income $ (9 ) $ (25 ) $ (18 ) $ (45 ) Interest expense 350 229 690 442 Interest capitalized (35 ) (16 ) (67 ) (34 ) Pension and other postretirement non-service costs (a) 3 2 — 2 Loss on extinguishment of debt — — — 4 Other financial costs 13 5 23 9 Net interest and other financial costs $ 322 $ 195 $ 628 $ 378 (a) See Note 21 . |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | (In millions) June 30, December 31, Crude oil and refinery feedstocks $ 3,468 $ 3,655 Refined products 4,601 5,234 Materials and supplies 801 720 Merchandise 218 228 Total $ 9,088 $ 9,837 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property, Plant And Equipment | (In millions) June 30, December 31, Refining & Marketing $ 28,429 $ 27,590 Retail 6,767 6,637 Midstream 26,472 25,692 Corporate and Other 1,234 1,294 Total 62,902 61,213 Less accumulated depreciation 17,567 16,155 Property, plant and equipment, net $ 45,335 $ 45,058 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 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. June 30, 2019 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 $ 227 $ 12 $ — $ (200 ) $ 39 $ 68 Liabilities: Commodity contracts $ 193 $ 12 $ — $ (203 ) $ 2 $ — Embedded derivatives in commodity contracts — — 65 — 65 — December 31, 2018 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 $ 370 $ 31 $ — $ (323 ) $ 78 $ 2 Liabilities: Commodity contracts $ 255 $ 37 $ — $ (284 ) $ 8 $ — Embedded derivatives in commodity contracts — — 61 — 61 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of June 30, 2019 , cash collateral of $3 million was netted with the mark-to-market derivative liabilities. As of December 31, 2018 , cash collateral of $52 million was netted with mark-to-market derivative assets and $13 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are subject to 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 Six Months Ended (In millions) 2019 2018 2019 2018 Beginning balance $ 65 $ 60 $ 61 $ 66 Unrealized and realized losses included in net income 1 12 7 9 Settlements of derivative instruments (1 ) (4 ) (3 ) (7 ) Ending balance $ 65 $ 68 $ 65 $ 68 The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: $ 2 $ 11 $ 5 $ 5 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 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) June 30, 2019 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 237 $ 201 Other current liabilities (a) 2 11 Deferred credits and other liabilities (a) — 58 (In millions) December 31, 2018 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 400 $ 283 Other current liabilities (a) 1 16 Deferred credits and other liabilities (a) — 54 (a) Includes embedded derivatives. |
Open Commodity Derivative Contracts | The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of June 30, 2019 . Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 77.3% 44,617 54,420 Refined products 91.4% 20,300 8,703 Blending products 74.1% 1,521 4,416 OTC Crude oil —% 400 — Blending products 4.5% 1,156 1,156 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 2,910 long and 2,310 short; Refined products - 1,450 long and 275 short; Blending products - 961 long and 831 short |
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: (In millions) Three Months Ended June 30, Six Months Ended June 30, Income Statement Location 2019 2018 2019 2018 Sales and other operating revenues $ 3 $ (1 ) $ (17 ) $ (2 ) Cost of revenues 15 (56 ) (65 ) (83 ) Total $ 18 $ (57 ) $ (82 ) $ (85 ) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding Borrowings | Our outstanding borrowings at June 30, 2019 and December 31, 2018 consisted of the following: (In millions) June 30, December 31, Marathon Petroleum Corporation $ 9,119 $ 9,114 MPLX LP 14,473 13,856 ANDX LP 5,263 5,010 Total debt $ 28,855 $ 27,980 Unamortized debt issuance costs (124 ) (128 ) Unamortized discount (324 ) (328 ) Amounts due within one year (554 ) (544 ) Total long-term debt due after one year $ 27,853 $ 26,980 |
Schedule of Line of Credit Facilities [Table Text Block] | Available Capacity under our Facilities (Dollars in millions) Total Capacity Outstanding Borrowings Outstanding Letters of Credit Available Capacity Weighted Average Interest Rate Expiration MPC 364-day bank revolving credit facility $ 1,000 $ — $ — $ 1,000 — September 2019 MPC bank revolving credit facility 5,000 — 32 4,968 — October 2023 MPC trade receivables securitization facility 750 — — 750 — July 2019 MPLX bank revolving credit facility 2,250 615 3 1,632 3.80 % July 2022 ANDX revolving & dropdown credit facilities (a) 2,100 1,500 — 600 3.90 % January 2021 $ 11,100 $ 2,115 $ 35 $ 8,950 (a) Western Refining Southwest, Inc., a wholly-owned subsidiary of MPC and unitholder of ANDX, has guaranteed certain outstanding borrowings under the ANDX dropdown credit facility that were made in connection with the August 2018 dropdown transaction. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | The following table presents our revenues disaggregated by product line. Three Months Ended Six Months Ended (In millions) 2019 2018 2019 2018 Refined products $ 29,668 $ 19,489 $ 54,504 $ 35,816 Merchandise 1,601 1,286 3,065 2,416 Crude oil and refinery feedstocks 1,669 978 3,036 1,861 Midstream services, transportation and other 609 564 1,209 1,090 Sales and other operating revenues $ 33,547 $ 22,317 $ 61,814 $ 41,183 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | Six Months Ended (In millions) 2019 2018 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 579 $ 279 Net income taxes paid to taxing authorities 362 40 Cash paid for amounts included in the measurement of lease liabilities Payments on operating leases (a) 380 — Interest payments under finance lease obligations (a) 15 — Net cash provided by financing activities included: Principal payments under finance lease obligations (a) 21 — Non-cash investing and financing activities: Right of use assets obtained in exchange for new operating lease obligations (a) 114 — Right of use assets obtained in exchange for new finance lease obligations (a) 22 — Contribution of net assets to Capline LLC (b) 143 — Recognition of Capline LLC equity method investment (b) 350 — (a) Disclosure added in 2019 following the adoption of ASC 842. (b) See Note 13 . |
Schedule of Cash and Cash Equivalents | (In millions) June 30, December 31, Cash and cash equivalents $ 1,247 $ 1,687 Restricted cash (a) 2 38 Cash, cash equivalents and restricted cash $ 1,249 $ 1,725 (a) The restricted cash balance is included within other current assets on the consolidated balance sheets. |
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: Six Months Ended (In millions) 2019 2018 Additions to property, plant and equipment per the consolidated statements of cash flows $ 2,419 $ 1,466 Asset retirement expenditures — 5 Increase (decrease) in capital accruals (281 ) 77 Total capital expenditures $ 2,138 $ 1,548 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2017 $ (190 ) $ (48 ) $ 4 $ 3 $ (231 ) Other comprehensive income (loss) before reclassifications 2 (1 ) (2 ) — (1 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (16 ) (2 ) — — (18 ) – actuarial loss (a) 17 — — — 17 – settlement loss (a) 2 — — — 2 Other — — — (2 ) (2 ) Tax effect (1 ) 1 — — — Other comprehensive income (loss) 4 (2 ) (2 ) (2 ) (2 ) Balance as of June 30, 2018 $ (186 ) $ (50 ) $ 2 $ 1 $ (233 ) (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2018 $ (132 ) $ (23 ) $ 2 $ 9 $ (144 ) Other comprehensive income (loss) before reclassifications (7 ) 1 — — (6 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (23 ) — — — (23 ) – actuarial loss (a) 11 (1 ) — — 10 – settlement loss (a) 2 — — — 2 Other — — — (2 ) (2 ) Tax effect 2 — — — 2 Other comprehensive loss (15 ) — — (2 ) (17 ) Balance as of June 30, 2019 $ (147 ) $ (23 ) $ 2 $ 7 $ (161 ) (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) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit costs: Three Months Ended June 30, 2019 Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 60 $ 35 $ 8 $ 8 Interest cost 27 18 10 8 Expected return on plan assets (31 ) (24 ) — — Amortization – prior service credit (12 ) (8 ) — (1 ) – actuarial loss 7 8 (1 ) — – settlement loss 2 1 — — Net periodic benefit cost $ 53 $ 30 $ 17 $ 15 Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 118 $ 71 $ 16 $ 15 Interest cost 55 36 19 15 Expected return on plan assets (63 ) (50 ) — — Amortization – prior service credit (23 ) (16 ) — (2 ) – actuarial loss 11 17 (1 ) — – settlement loss 2 2 — — Net periodic benefit cost $ 100 $ 60 $ 34 $ 28 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | Under ASC 842, the components of lease cost were as follows: Three Months Ended Six Months Ended (In millions) 2019 2019 Finance lease cost: Amortization of right of use assets $ 15 $ 29 Interest on lease liabilities 9 20 Operating lease cost 198 388 Variable lease cost 29 43 Short-term lease cost 162 314 Total lease cost $ 413 $ 794 |
Supplemental Balance Sheet Disclosures [Text Block] | Supplemental balance sheet data related to leases were as follows: (In millions) June 30, 2019 Operating leases Assets Right of use assets $ 2,588 Liabilities Operating lease liabilities $ 615 Long-term operating lease liabilities 2,068 Total operating lease liabilities $ 2,683 Weighted average remaining lease term (in years) 6.4 Weighted average discount rate 4.12 % Finance leases Assets Property, plant and equipment, gross $ 786 Accumulated depreciation 243 Property, plant and equipment, net $ 543 Liabilities Debt due within one year $ 51 Long-term debt 604 Total finance lease liabilities $ 655 Weighted average remaining lease term (in years) 12.8 Weighted average discount rate 6.04 % |
Schedule Of Future Minimum Lease Payments For Operating And Capital Leases Table [Text Block] | As of June 30, 2019 , maturities of lease liabilities for operating lease obligations and finance lease obligations having initial or remaining non-cancellable lease terms in excess of one year are as follows: (In millions) Operating Finance 2019 $ 381 $ 39 2020 650 78 2021 562 70 2022 383 77 2023 273 83 2024 and thereafter 837 600 Gross lease payments 3,086 947 Less: imputed interest 403 292 Total lease liabilities $ 2,683 $ 655 Presented in accordance with ASC 840, future minimum commitments as of December 31, 2018 for operating lease obligations and capital lease obligations having initial or remaining non-cancellable lease terms in excess of one year were as follows: (In millions) Operating Capital 2019 $ 709 $ 70 2020 619 71 2021 553 66 2022 389 75 2023 295 82 2024 and thereafter 858 586 Total minimum lease payments $ 3,423 950 Less: imputed interest costs 301 Present value of net minimum lease payments $ 649 |
Schedule of Future Minimum Rental Payments Receivable for Operating Leases [Table Text Block] | The following is a schedule of minimum future rentals on the non‑cancellable operating leases as of June 30, 2019 : (In millions) 2019 $ 90 2020 178 2021 169 2022 166 2023 161 2024 and thereafter 1,264 Total minimum future rentals $ 2,028 |
Schedule of Property Subject to or Available for Operating Lease [Table Text Block] | The following schedule summarizes our investment in assets held for operating lease by major classes as of June 30, 2019 : (In millions) June 30, 2019 Natural gas gathering and NGL transportation pipelines and facilities $ 1,039 Natural gas processing facilities 633 Terminal and related assets 111 Land, building, office equipment and other 44 Property, plant and equipment 1,827 Less accumulated depreciation 284 Property, plant and equipment, net $ 1,543 |
Description of the Business a_3
Description of the Business and Basis of Presentation (Details) bbl / d in Millions | 6 Months Ended |
Jun. 30, 2019Storebbl / drefinery | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Capacity | bbl / d | 3 |
Number of refineries | refinery | 16 |
Number of branded outlets | 7,000 |
Number of retail transportation fuel and convenience stores | 3,910 |
Number of direct dealer locations | 1,060 |
Accounting Standards (Details)
Accounting Standards (Details) - Accounting Standards Update 2016-02 $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Minimum | |
New accounting pronouncement or change in accounting principle, effect of adoption, quantification | $ 2,810 |
Maximum | |
New accounting pronouncement or change in accounting principle, effect of adoption, quantification | $ 2,900 |
Master Limited Partnerships (De
Master Limited Partnerships (Details) - shares | Jul. 30, 2019 | Jun. 30, 2019 |
ANDX | ||
MPC's partnership interest in MLP (in percentage) | 64.00% | |
MPLX | ||
MPC's partnership interest in MLP (in percentage) | 64.00% | |
Subsequent Event | Public | ||
Common units conversion ratio | 1.135 | |
Subsequent Event | Nonpublic | ||
Common units conversion ratio | 1.0328 |
Master Limited Partnerships - D
Master Limited Partnerships - Dropdowns to MPLX and GP/IDR Exchange (Details) - MPLX shares in Millions, $ in Billions | Feb. 01, 2018USD ($)shares |
MPLX 364-day term loan | |
Noncontrolling Interest [Line Items] | |
Maximum borrowing capacity | $ | $ 4.1 |
Debt instrument, term | 364 days |
Cash and Cash Equivalents | |
Noncontrolling Interest [Line Items] | |
Cash consideration | $ | $ 4.1 |
Limited Partner | |
Noncontrolling Interest [Line Items] | |
Units issued, number of units | 112 |
Conversion of stock, units issued | 275 |
General Partner | |
Noncontrolling Interest [Line Items] | |
Units issued, number of units | 2 |
Master Limited Partnerships - N
Master Limited Partnerships - Noncontrolling Interest in MLPs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Increase in MPC's additional paid-in capital, net of tax | $ 1 | $ 2 | $ 0 | $ (546) | ||
Additional Paid-in Capital | ||||||
Increase due to the issuance of MPLX common units and general partner units to MPC | $ 0 | $ 1,114 | ||||
Increase due to GP/IDR Exchange | 0 | 1,808 | ||||
Increase due to the issuance of MPLX & ANDX common units | 7 | 5 | ||||
Increase in MPC's additional paid-in capital | 7 | 2,927 | ||||
Tax impact | (2) | (546) | ||||
Increase in MPC's additional paid-in capital, net of tax | $ 2 | $ 3 | $ 1 | $ 2,380 | $ 5 | $ 2,381 |
Acquisitions - Acquisition of A
Acquisitions - Acquisition of Andeavor (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 20,277 | $ 20,184 | |
Andeavor | |||
Business Acquisition [Line Items] | |||
Total fair value of consideration transferred | $ 23,460 | ||
Fair value of MPC shares issued | 19,970 | ||
Cash payment to Andeavor stockholders | 3,490 | ||
Goodwill | 16,428 | ||
Goodwill, expected tax deductible amount | 893 | ||
Andeavor | Refining & Marketing | |||
Business Acquisition [Line Items] | |||
Goodwill | 4,820 | ||
Andeavor | Midstream | |||
Business Acquisition [Line Items] | |||
Goodwill | 7,720 | ||
Andeavor | Retail | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 3,890 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed - Andeavor (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 20,277 | $ 20,184 | ||
Andeavor | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 382 | |||
Receivables | 2,742 | |||
Inventories | 5,195 | |||
Other current assets | 378 | |||
Equity method investments | 902 | |||
Property, plant and equipment, net | 16,467 | |||
Other noncurrent assets | [1] | 3,085 | ||
Total assets acquired | 29,151 | |||
Accounts payable | 3,999 | |||
Payroll and benefits payable | 348 | |||
Accrued taxes | 590 | |||
Debt due within one year | 34 | |||
Other current liabilities | 422 | |||
Long-term debt | 8,876 | |||
Deferred income taxes | 1,625 | |||
Defined benefit postretirement plan obligations | 432 | |||
Deferred credit and other liabilities | 729 | |||
Noncontrolling interests | 5,062 | |||
Total liabilities and noncontrolling interest assumed | 22,117 | |||
Net assets acquired excluding goodwill | 7,034 | |||
Goodwill | 16,428 | |||
Net assets acquired | 23,462 | |||
Andeavor | As originally reported | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 382 | |||
Receivables | 2,744 | |||
Inventories | 5,204 | |||
Other current assets | 378 | |||
Equity method investments | 865 | |||
Property, plant and equipment, net | 16,545 | |||
Other noncurrent assets | [1] | 3,086 | ||
Total assets acquired | 29,204 | |||
Accounts payable | 4,003 | |||
Payroll and benefits payable | 348 | |||
Accrued taxes | 590 | |||
Debt due within one year | 34 | |||
Other current liabilities | 392 | |||
Long-term debt | 8,875 | |||
Deferred income taxes | 1,609 | |||
Defined benefit postretirement plan obligations | 432 | |||
Deferred credit and other liabilities | 714 | |||
Noncontrolling interests | 5,059 | |||
Total liabilities and noncontrolling interest assumed | 22,056 | |||
Net assets acquired excluding goodwill | 7,148 | |||
Goodwill | 16,314 | |||
Net assets acquired | 23,462 | |||
Andeavor | Adjustments | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Receivables | (2) | |||
Inventories | (9) | |||
Other current assets | 0 | |||
Equity method investments | 37 | |||
Property, plant and equipment, net | (78) | |||
Other noncurrent assets | [1] | (1) | ||
Total assets acquired | (53) | |||
Accounts payable | (4) | |||
Payroll and benefits payable | 0 | |||
Accrued taxes | 0 | |||
Debt due within one year | 0 | |||
Other current liabilities | 30 | |||
Long-term debt | 1 | |||
Deferred income taxes | 16 | |||
Defined benefit postretirement plan obligations | 0 | |||
Deferred credit and other liabilities | 15 | |||
Noncontrolling interests | 3 | |||
Total liabilities and noncontrolling interest assumed | 61 | |||
Net assets acquired excluding goodwill | (114) | |||
Goodwill | $ 32 | 114 | ||
Net assets acquired | $ 0 | |||
[1] | Includes intangible assets |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information - Andeavor (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Sales and other operating revenues | $ 33,547 | $ 22,317 | $ 61,814 | $ 41,183 |
Net income attributable to MPC | $ 1,106 | 1,055 | $ 1,099 | 1,092 |
Andeavor | ||||
Business Acquisition [Line Items] | ||||
Sales and other operating revenues | 34,959 | 64,338 | ||
Net income attributable to MPC | $ 1,452 | $ 1,478 |
Acquisition - Acquisition of Ex
Acquisition - Acquisition of Express Mart (Details) $ in Millions | Nov. 16, 2018USD ($)Store | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 20,277 | $ 20,184 | |
Express Mart | |||
Business Acquisition [Line Items] | |||
Number of stores | Store | 78 | ||
Cash consideration | $ 266 | ||
Property, plant and equipment, net | 97 | ||
Inventories | 9 | ||
Finite-lived intangibles | 2 | ||
Goodwill | $ 158 |
Acquisitions - Acquisition of M
Acquisitions - Acquisition of Mt. Airy Terminal (Details) bbl / d in Thousands, bbl in Millions, $ in Millions | Sep. 26, 2018USD ($)bbl / dbbl | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Goodwill | $ 20,277 | $ 20,184 | |
Mt. Airy Terminal | |||
Storage capacity | bbl | 4 | ||
Barrels handled | bbl / d | 120 | ||
Mt. Airy Terminal | MPLX | |||
Cash consideration | $ 446 | ||
Property, plant and equipment, net | 336 | ||
Goodwill | 121 | ||
Mt. Airy Terminal | As originally reported | MPLX | |||
Cash consideration | 451 | ||
Mt. Airy Terminal | Adjustments | MPLX | |||
Cash consideration | $ 5 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 1,247 | $ 1,687 | |
Receivables, less allowance for doubtful accounts | 7,603 | 5,853 | |
Inventories | 9,088 | 9,837 | |
Other current assets | 458 | 646 | |
Equity method investments | 6,729 | 5,898 | |
Property, plant and equipment, net | 45,335 | 45,058 | |
Goodwill | 20,277 | 20,184 | |
Right of use assets | 2,588 | 0 | |
Other noncurrent assets | 3,571 | 3,777 | |
Liabilities | |||
Accounts payable | 10,905 | 9,366 | |
Payroll and benefits payable | 778 | 1,152 | |
Accrued taxes | 1,223 | 1,446 | |
Debt due within one year | 554 | 544 | |
Operating lease liabilities | 615 | 0 | |
Other current liabilities | 815 | 708 | |
Long-term debt | 27,853 | 26,980 | |
Long-term operating lease liabilities | 2,068 | 0 | |
Deferred credits and other liabilities | 1,174 | 1,318 | |
Variable Interest Entity, Primary Beneficiary [Member] | MPLX | |||
Assets | |||
Cash and cash equivalents | 7 | 68 | |
Receivables, less allowance for doubtful accounts | 345 | 425 | |
Inventories | 77 | 77 | |
Other current assets | 34 | 45 | |
Equity method investments | 4,409 | 4,174 | |
Property, plant and equipment, net | 15,021 | 14,639 | |
Goodwill | 2,581 | 2,586 | |
Right of use assets | 255 | 0 | |
Other noncurrent assets | 441 | 458 | |
Liabilities | |||
Accounts payable | 532 | 776 | |
Payroll and benefits payable | 5 | 2 | |
Accrued taxes | 57 | 48 | |
Debt due within one year | 6 | 1 | |
Operating lease liabilities | 47 | 0 | |
Other current liabilities | 204 | 177 | |
Long-term debt | 14,030 | 13,392 | |
Deferred income taxes | 11 | 13 | |
Long-term operating lease liabilities | 209 | 0 | |
Deferred credits and other liabilities | 303 | 276 | |
Variable Interest Entity, Primary Beneficiary [Member] | ANDX | |||
Assets | |||
Cash and cash equivalents | [1] | 25 | 10 |
Receivables, less allowance for doubtful accounts | [1] | 202 | 199 |
Inventories | [1] | 22 | 22 |
Other current assets | [1] | 42 | 57 |
Equity method investments | [1] | 605 | 602 |
Property, plant and equipment, net | [1] | 6,929 | 6,845 |
Goodwill | [1] | 1,052 | 1,051 |
Right of use assets | [1] | 121 | 0 |
Other noncurrent assets | [1] | 1,234 | 1,242 |
Liabilities | |||
Accounts payable | [1] | 290 | 215 |
Payroll and benefits payable | [1] | 1 | 10 |
Accrued taxes | [1] | 19 | 23 |
Debt due within one year | [1] | 503 | 504 |
Operating lease liabilities | [1] | 12 | 0 |
Other current liabilities | [1] | 88 | 77 |
Long-term debt | [1] | 4,726 | 4,469 |
Deferred income taxes | [1] | 1 | 1 |
Long-term operating lease liabilities | [1] | 108 | 0 |
Deferred credits and other liabilities | [1] | $ 78 | $ 68 |
[1] | The balances reflected here are ANDX’s historical balances as the preliminary purchase accounting adjustments related to ANDX’s assets and liabilities in connection with the Andeavor acquisition and reflected on our consolidated balance sheets as of June 30, 2019 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Related Party Transactions [Abstract] | |||||
Sales to related parties | [1] | $ 186 | $ 199 | $ 372 | $ 371 |
Purchases from related parties | [2] | $ 183 | $ 138 | $ 387 | $ 279 |
[1] | Sales to related parties, which are included in sales and other operating revenues, consist primarily of sales of refined products to PFJ Southeast, an equity affiliate which owns and operates travel plazas primarily in the Southeast region of the United States. | ||||
[2] | We obtain utilities, transportation services and purchase ethanol from certain of our equity affiliates. |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic earnings per share: | ||||
Net income attributable to MPC | $ 1,106 | $ 1,055 | $ 1,099 | $ 1,092 |
Income allocated to participating securities | 0 | 1 | 1 | 1 |
Income available to common stockholders – basic | $ 1,106 | $ 1,054 | $ 1,098 | $ 1,091 |
Weighted average common shares outstanding (in shares) | 662 | 459 | 667 | 467 |
Basic earnings per share | $ 1.67 | $ 2.30 | $ 1.65 | $ 2.34 |
Diluted earnings per share: | ||||
Net income attributable to MPC | $ 1,106 | $ 1,055 | $ 1,099 | $ 1,092 |
Income allocated to participating securities | 0 | 1 | 1 | 1 |
Income available to common stockholders – diluted | $ 1,106 | $ 1,054 | $ 1,098 | $ 1,091 |
Weighted average common shares outstanding (in shares) | 662 | 459 | 667 | 467 |
Effect of dilutive securities (in shares) | 4 | 5 | 5 | 5 |
Weighted average common shares, including dilutive effect (in shares) | 666 | 464 | 672 | 472 |
Diluted earnings per share | $ 1.66 | $ 2.27 | $ 1.63 | $ 2.31 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Shares (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Based Compensation Expense [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares issuable under stock-based compensation plans | 4 | 1 | 3 | 1 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock repurchase program, remaining authorized repurchase amount | $ 3,520 | $ 3,520 | |||
Number of shares repurchased | 9,000,000 | 12,000,000 | 23,000,000 | 31,000,000 | |
Cash paid for shares repurchased | $ 500 | $ 885 | $ 1,385 | $ 2,212 | |
Forecast | |||||
Number of shares repurchased | 109,200 | ||||
Cash paid for shares repurchased | $ 6 |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Number of shares repurchased | 9 | 12 | 23 | 31 |
Cash paid for shares repurchased | $ 500 | $ 885 | $ 1,385 | $ 2,212 |
Average cost per share | $ 57.18 | $ 76.30 | $ 60.75 | $ 71.58 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019refinerySegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 3 |
Number of refineries | refinery | 16 |
Segment Information - Income Fr
Segment Information - Income From Operations Attributable To Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | $ 33,547 | $ 22,317 | $ 61,814 | $ 41,183 | |
Income from operations | 2,042 | 1,711 | 2,711 | 2,151 | |
Depreciation and amortization | 886 | 533 | 1,805 | 1,061 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 6,702 | 3,635 | 12,365 | 6,646 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 40,249 | 25,952 | 74,179 | 47,829 | |
Income from operations | 2,277 | 1,801 | 3,021 | 2,330 | |
Depreciation and amortization | [1] | 859 | 516 | 1,719 | 1,028 |
Capital expenditures and investments | [2] | 1,364 | 885 | 2,654 | 1,597 |
Refining & Marketing | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 23,672 | 16,302 | 43,606 | 29,884 | |
Refining & Marketing | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 5,482 | 2,871 | 9,911 | 5,250 | |
Refining & Marketing | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 29,154 | 19,173 | 53,517 | 35,134 | |
Income from operations | 906 | 1,025 | 572 | 892 | |
Depreciation and amortization | 411 | 252 | 838 | 504 | |
Capital expenditures and investments | 430 | 196 | 824 | 387 | |
Retail | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 8,944 | 5,265 | 16,320 | 9,836 | |
Retail | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 2 | 2 | 4 | 3 | |
Retail | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 8,946 | 5,267 | 16,324 | 9,839 | |
Income from operations | 493 | 159 | 663 | 254 | |
Depreciation and amortization | 130 | 73 | 256 | 152 | |
Capital expenditures and investments | 120 | 88 | 193 | 127 | |
Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 931 | 750 | 1,888 | 1,463 | |
Midstream | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 1,218 | 762 | 2,450 | 1,393 | |
Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 2,149 | 1,512 | 4,338 | 2,856 | |
Income from operations | 878 | 617 | 1,786 | 1,184 | |
Depreciation and amortization | 318 | 191 | 625 | 372 | |
Capital expenditures and investments | 814 | 601 | 1,637 | 1,083 | |
Reportable Segment | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | [3] | $ 33,547 | $ 22,317 | $ 61,814 | $ 41,183 |
[1] | Differences between segment totals and MPC consolidated totals represent amounts related to corporate and other unallocated items and are included in items not allocated to segments in the reconciliation below. | ||||
[2] | Capital expenditures include changes in capital accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. | ||||
[3] | Includes related party sales. See Note 6 for additional information. |
Segment Information - Reconcili
Segment Information - Reconciliation Of Segment Income From Operations To Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | $ 2,042 | $ 1,711 | $ 2,711 | $ 2,151 | ||
Net interest and other financial costs | 322 | 195 | 628 | 378 | ||
Income before income taxes | 1,720 | 1,516 | 2,083 | 1,773 | ||
Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | 2,277 | 1,801 | 3,021 | 2,330 | ||
Corporate and Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | [1] | (179) | (81) | (370) | (170) | |
Segment Reconciling Items | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Capline restructuring gain | 0 | 0 | 207 | [2] | 0 | |
Transaction-related costs(c) | (34) | (10) | (125) | [3] | (10) | |
Litigation | (22) | 0 | (22) | 0 | ||
Impairments | $ 0 | $ 1 | $ 0 | $ 1 | ||
[1] | Corporate and other unallocated items consist primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX and ANDX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Retail segments. | |||||
[2] | See Note 13 . | |||||
[3] | The transaction-related costs recognized in the 2019 year-to-date period include the recognition of an obligation for employee benefits provided to former Andeavor employees. |
Segment Information - Reconci_2
Segment Information - Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Plus items not allocated to segments: | |||||
Capital expenditures | [1] | $ 1,132 | $ 841 | $ 2,138 | $ 1,548 |
Operating Segments | |||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||
Capital expenditures and investments | [2] | 1,364 | 885 | 2,654 | 1,597 |
Less investments in equity method investees | 270 | 77 | 595 | 118 | |
Corporate and Other | |||||
Plus items not allocated to segments: | |||||
Corporate | 4 | 17 | 14 | 35 | |
Capitalized interest | $ 34 | $ 16 | $ 65 | $ 34 | |
[1] | Capital expenditures include changes in capital accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the six months ended June 30, 2019 and 2018 as reported in the consolidated statements of cash flows. | ||||
[2] | Capital expenditures include changes in capital accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. |
Net Interest And Other Financ_3
Net Interest And Other Financial Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | $ (9) | $ (25) | $ (18) | $ (45) | |
Interest expense | 350 | 229 | 690 | 442 | |
Interest capitalized | (35) | (16) | (67) | (34) | |
Pension and other postretirement non-service costs | [1] | 3 | 2 | 0 | 2 |
Loss on extinguishment of debt | 0 | 0 | 0 | 4 | |
Other financial costs | 13 | 5 | 23 | 9 | |
Net interest and other financial costs | $ 322 | $ 195 | $ 628 | $ 378 | |
[1] | See Note 21 . |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Combined federal, state and foreign income tax rate | 21.00% | 19.00% | 22.00% | 17.00% |
Federal statutory income tax rate, percent | 21.00% | |||
Unrecognized benefits | $ 202 | $ 202 |
Income Taxes - Out of Period Ad
Income Taxes - Out of Period Adjustment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Oct. 01, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Provision for income taxes | $ 353 | $ 281 | $ 457 | $ 303 | ||
Goodwill | 20,277 | 20,277 | $ 20,184 | |||
Andeavor | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Goodwill | $ 16,428 | |||||
Andeavor | Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Provision for income taxes | 36 | |||||
Deferred tax liabilities | 68 | 68 | ||||
Goodwill | $ 32 | $ 32 | $ 114 |
Inventories - Summary Of Invent
Inventories - Summary Of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Crude oil and refinery feedstocks | $ 3,468 | $ 3,655 |
Refined products | 4,601 | 5,234 |
Materials and supplies | 801 | 720 |
Merchandise | 218 | 228 |
Total | $ 9,088 | $ 9,837 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Inventory Disclosure [Abstract] | |
Impact on income as a result of LIFO liquidations | $ 0 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | |||
Contribution of net assets to Capline LLC | $ 143 | [1] | $ 0 | |
Recognition of Capline LLC equity method investment | $ 350 | [1] | $ 0 | |
Capline | ||||
Undivided joint interest, ownership percentage | 33.00% | |||
Equity method investments, ownership percentage | 33.00% | |||
Contribution of net assets to Capline LLC | [1] | $ 143 | ||
Recognition of Capline LLC equity method investment | [1] | 350 | ||
Capline restructuring gain | [1] | $ 207 | ||
[1] | See Note 13 . |
Property, Plant And Equipment -
Property, Plant And Equipment - Summary Of Property, Plant And Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 62,902 | $ 61,213 |
Less accumulated depreciation | 17,567 | 16,155 |
Property, plant and equipment, net | 45,335 | 45,058 |
Operating Segments | Refining & Marketing | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 28,429 | 27,590 |
Operating Segments | Retail | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,767 | 6,637 |
Operating Segments | Midstream | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,472 | 25,692 |
Corporate and Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,234 | $ 1,294 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash collateral netted with derivative liabilities | $ 3 | $ 13 | |
Cash collateral netted with derivatives assets | 52 | ||
Fair Value, Measurements, Recurring | Commodity derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - netting and collateral | [1] | (200) | (323) |
Commodity derivative instruments, assets - net carrying value on balance sheet | [2] | 39 | 78 |
Commodity derivative instruments, assets - collateral pledged not offset | 68 | 2 | |
Commodity derivative instruments, liabilities - netting and collateral | [1] | (203) | (284) |
Commodity derivative instruments, liabilities - net carrying value on balance sheet | [2] | 2 | 8 |
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] | 65 | 61 |
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 | 227 | 370 | |
Commodity derivative instruments, liabilities - gross | 193 | 255 | |
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 | 12 | 31 | |
Commodity derivative instruments, liabilities - gross | 12 | 37 | |
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 | $ 65 | $ 61 | |
[1] | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of June 30, 2019 , cash collateral of $3 million was netted with the mark-to-market derivative liabilities. As of December 31, 2018 , cash collateral of $52 million was netted with mark-to-market derivative assets and $13 million was netted with mark-to-market derivative liabilities. | ||
[2] | We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Narrative (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Embedded derivatives in commodity contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Embedded derivative renewal term | 5 years |
Level 3 | Commodity derivatives | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Forward commodity price | $ 0.46 |
Level 3 | Commodity derivatives | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Forward commodity price | $ 1.14 |
Level 3 | Embedded derivatives in commodity contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Probability of renewal first term | 92.00% |
Probability of renewal second term | 82.00% |
Fair Value Measurements - Recon
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 65 | $ 60 | $ 61 | $ 66 |
Unrealized and realized losses included in net income | 1 | 12 | 7 | 9 |
Settlements of derivative instruments | (1) | (4) | (3) | (7) |
Ending balance | $ 65 | $ 68 | $ 65 | $ 68 |
Fair Value Measurements - Losse
Fair Value Measurements - Losses Included in Earnings Relating to Assets Still Held at End of Period (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: | $ 2 | $ 11 | $ 5 | $ 5 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values - Reported (Detail) - USD ($) $ in Billions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 29.4 | $ 26.5 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 27.9 | $ 27 |
Derivatives - Classification of
Derivatives - Classification of Gross Fair Values of Derivative Instruments, Excluding Cash Collateral (Detail) - Commodity derivatives - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset | $ 237 | $ 400 | |
Liability | 201 | 283 | |
Other current liabilities(a) | |||
Derivatives, Fair Value [Line Items] | |||
Asset | 2 | 1 | |
Liability | [1] | 11 | 16 |
Deferred credits and other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | $ 58 | $ 54 |
[1] | Includes embedded derivatives. |
Derivatives - Open Commodity De
Derivatives - Open Commodity Derivative Contracts (Details) gal in Thousands, bbl in Thousands | 6 Months Ended | |
Jun. 30, 2019bblgal | ||
Exchange Traded | Crude oil | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 77.30% | |
Exchange Traded | Crude oil | Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 44,617 | [1] |
Exchange Traded | Crude oil | Long | Spread Contracts | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 2,910 | |
Exchange Traded | Crude oil | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | gal | 54,420 | [1] |
Exchange Traded | Crude oil | Short | Spread Contracts | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 2,310 | |
Exchange Traded | Refined products | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 91.40% | |
Exchange Traded | Refined products | Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 20,300 | [1] |
Exchange Traded | Refined products | Long | Spread Contracts | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 1,450 | |
Exchange Traded | Refined products | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | gal | 8,703 | [1] |
Exchange Traded | Refined products | Short | Spread Contracts | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 275 | |
Exchange Traded | Blending products | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 74.10% | |
Exchange Traded | Blending products | Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 1,521 | [1] |
Exchange Traded | Blending products | Long | Spread Contracts | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 961 | |
Exchange Traded | Blending products | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | gal | 4,416 | [1] |
Exchange Traded | Blending products | Short | Spread Contracts | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 831 | |
Over the Counter | Crude oil | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 0.00% | |
Over the Counter | Crude oil | Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 400 | |
Over the Counter | Crude oil | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 0 | |
Over the Counter | Blending products | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 4.50% | |
Over the Counter | Blending products | Long | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | 1,156 | |
Over the Counter | Blending products | Short | ||
Derivative [Line Items] | ||
Notional contracts (in thousands of Total Barrels) | gal | 1,156 | |
[1] | Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 2,910 long and 2,310 short; Refined products - 1,450 long and 275 short; Blending products - 961 long and 831 short |
Derivatives - Effect of Commodi
Derivatives - Effect of Commodity Derivative Instruments in Statements of Income (Detail) - Commodity derivatives - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss | $ 18 | $ (57) | $ (82) | $ (85) |
Sales and other operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss | 3 | (1) | (17) | (2) |
Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss | $ 15 | $ (56) | $ (65) | $ (83) |
Debt - Outstanding Borrowings (
Debt - Outstanding Borrowings (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Total debt | $ 28,855 | $ 27,980 |
Unamortized debt issuance costs | (124) | (128) |
Unamortized discount | (324) | (328) |
Amounts due within one year | (554) | (544) |
Total long-term debt due after one year | 27,853 | 26,980 |
Marathon Petroleum Corporation | ||
Total debt | 9,119 | 9,114 |
MPLX LP | ||
Total debt | 14,473 | 13,856 |
ANDX LP | ||
Total debt | $ 5,263 | $ 5,010 |
Debt - Available Capacity under
Debt - Available Capacity under our Facilities (Details) $ in Millions | Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Total Capacity | $ 11,100 | |
Outstanding Borrowings | 2,115 | |
Outstanding Letters of Credit | 35 | |
Available Capacity | 8,950 | |
MPC 364-day bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | 1,000 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 1,000 | |
Weighted Average Interest Rate | 0.00% | |
MPC bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 5,000 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 32 | |
Available Capacity | $ 4,968 | |
Weighted Average Interest Rate | 0.00% | |
MPC trade receivables securitization facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 750 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 750 | |
Weighted Average Interest Rate | 0.00% | |
MPLX bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 2,250 | |
Outstanding Borrowings | 615 | |
Outstanding Letters of Credit | 3 | |
Available Capacity | $ 1,632 | |
Weighted Average Interest Rate | 3.80% | |
ANDX revolving & dropdown credit facilities | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 2,100 | |
Outstanding Borrowings | 1,500 | [1] |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 600 | |
Weighted Average Interest Rate | 3.90% | |
[1] | Western Refining Southwest, Inc., a wholly-owned subsidiary of MPC and unitholder of ANDX, has guaranteed certain outstanding borrowings under the ANDX dropdown credit facility that were made in connection with the August 2018 dropdown transaction. |
Debt - MPC 364-Day Bank Revolvi
Debt - MPC 364-Day Bank Revolving Credit Facility (Details) - USD ($) $ in Millions | Jul. 26, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 11,100 | |
MPC 364-day revolver due September 2019 | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 1,000 | |
Subsequent Event | MPC 364-day revolver due September 2020 | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 1,000 |
Debt - MPC Trade Receivables Se
Debt - MPC Trade Receivables Securitization Facility (Details) - USD ($) $ in Millions | Jul. 19, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 11,100 | |
Subsequent Event | Trade receivables securitization facility due July 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 750 |
Debt - MPLX Credit Agreement (D
Debt - MPLX Credit Agreement (Details) - USD ($) $ in Millions | Jul. 30, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 11,100 | |
Subsequent Event | MPLX revolving credit facility due July 2024 | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 3,500 |
Revenue - Disaggregated by Prod
Revenue - Disaggregated by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales and other operating revenues | $ 33,547 | $ 22,317 | $ 61,814 | $ 41,183 |
Refined products | ||||
Sales and other operating revenues | 29,668 | 19,489 | 54,504 | 35,816 |
Merchandise | ||||
Sales and other operating revenues | 1,601 | 1,286 | 3,065 | 2,416 |
Crude oil and refinery feedstocks | ||||
Sales and other operating revenues | 1,669 | 978 | 3,036 | 1,861 |
Midstream services, transportation and other | ||||
Sales and other operating revenues | $ 609 | $ 564 | $ 1,209 | $ 1,090 |
Revenue (Details)
Revenue (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Matching buy/sell receivables | $ 2,210 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Net cash provided by operating activities included: | |||
Interest paid (net of amounts capitalized) | $ 579 | $ 279 | |
Net income taxes paid to taxing authorities | 362 | 40 | |
Payments on operating leases(a) | 380 | [1] | 0 |
Interest payments under finance lease obligations(a) | 15 | [1] | 0 |
Net cash provided by financing activities included: | |||
Principal payments under finance lease obligations(a) | 21 | [1] | 0 |
Non-cash investing and financing activities: | |||
Right of use assets obtained in exchange for new operating lease obligations(a) | 114 | [1] | 0 |
Right of use assets obtained in exchange for new finance lease obligations(a) | 22 | [1] | 0 |
Contribution of net assets to Capline LLC | 143 | [2] | 0 |
Recognition of Capline LLC equity method investment | $ 350 | [2] | $ 0 |
[1] | Disclosure added in 2019 following the adoption of ASC 842. | ||
[2] | See Note 13 . |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Cash, Cash Equalivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||||
Cash and cash equivalents | $ 1,247 | $ 1,687 | |||
Restricted cash | [1] | 2 | 38 | ||
Cash, cash equivalents and restricted cash | $ 1,249 | $ 1,725 | $ 5,004 | $ 3,015 | |
[1] | The restricted cash balance is included within other current assets on the consolidated balance sheets |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Reconciliation of Additions to Property, Plant and Equipment to Total Capital Expenditures (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Supplemental Cash Flow Elements [Abstract] | |||||
Additions to property, plant and equipment per the consolidated statements of cash flows | $ 2,419 | $ 1,466 | |||
Asset retirement expenditures | 0 | 5 | |||
Increase (decrease) in capital accruals | (281) | 77 | |||
Capital expenditures | [1] | $ 1,132 | $ 841 | $ 2,138 | $ 1,548 |
[1] | Capital expenditures include changes in capital accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the six months ended June 30, 2019 and 2018 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 | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning balance | $ (144) | $ (231) | $ (144) | $ (231) | |||
Other comprehensive loss before reclassifications | (6) | (1) | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||
Amortization - prior service credit | (23) | (18) | |||||
Amortization - actuarial loss | 10 | 17 | |||||
Amortization - settlement loss | 2 | 2 | |||||
Other | (2) | (2) | |||||
Tax effect | 2 | 0 | |||||
Other comprehensive income (loss) | $ (10) | (7) | $ 0 | (2) | (17) | (2) | |
Ending balance | (161) | (233) | (161) | (233) | |||
Accumulated Defined Benefit Plans Adjustment | Pension Benefits | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning balance | (132) | (190) | (132) | (190) | |||
Other comprehensive loss before reclassifications | (7) | 2 | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||
Amortization - prior service credit | [1] | (23) | (16) | ||||
Amortization - actuarial loss | [1] | 11 | 17 | ||||
Amortization - settlement loss | [1] | 2 | 2 | ||||
Tax effect | 2 | (1) | |||||
Other comprehensive income (loss) | (15) | 4 | |||||
Ending balance | (147) | (186) | (147) | (186) | |||
Accumulated Defined Benefit Plans Adjustment | Other Benefits | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning balance | (23) | (48) | (23) | (48) | |||
Other comprehensive loss before reclassifications | 1 | (1) | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||
Amortization - prior service credit | [1] | 0 | (2) | ||||
Amortization - actuarial loss | [1] | (1) | 0 | ||||
Amortization - settlement loss | 0 | 0 | |||||
Tax effect | 0 | 1 | |||||
Other comprehensive income (loss) | 0 | (2) | |||||
Ending balance | (23) | (50) | (23) | (50) | |||
Gain on Cash Flow Hedge | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning balance | 2 | 4 | 2 | 4 | |||
Other comprehensive loss before reclassifications | 0 | (2) | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||
Tax effect | 0 | 0 | |||||
Other comprehensive income (loss) | 0 | (2) | |||||
Ending balance | 2 | 2 | 2 | 2 | |||
Workers Compensation | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning balance | $ 9 | $ 3 | 9 | 3 | |||
Other comprehensive loss before reclassifications | 0 | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||
Other | (2) | (2) | |||||
Tax effect | 0 | 0 | |||||
Other comprehensive income (loss) | (2) | (2) | |||||
Ending balance | $ 7 | $ 1 | $ 7 | $ 1 | |||
[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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 60 | $ 35 | $ 118 | $ 71 |
Interest cost | 27 | 18 | 55 | 36 |
Expected return on plan assets | (31) | (24) | (63) | (50) |
Amortization – prior service credit | (12) | (8) | (23) | (16) |
Amortization – actuarial loss | 7 | 8 | 11 | 17 |
Amortization - settlement loss | 2 | 1 | 2 | 2 |
Net periodic benefit cost | 53 | 30 | 100 | 60 |
Other Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 8 | 8 | 16 | 15 |
Interest cost | 10 | 8 | 19 | 15 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization – prior service credit | 0 | (1) | 0 | (2) |
Amortization – actuarial loss | (1) | 0 | (1) | 0 |
Amortization - settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 17 | $ 15 | $ 34 | $ 28 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 16 |
Other Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | 9 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 23 |
Leases Lessee Narrative (Detail
Leases Lessee Narrative (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Minimum | |
Term of agreements | 1 year |
Renewal term options | 1 year |
Maximum | |
Term of agreements | 60 years |
Renewal term options | 49 years |
Leases Components of Lease Cost
Leases Components of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Finance lease cost: | ||
Amortization of right of use assets | $ 15 | $ 29 |
Interest on lease liabilities | 9 | 20 |
Operating lease cost | 198 | 388 |
Variable lease cost | 29 | 43 |
Short-term lease cost | 162 | 314 |
Total lease cost | $ 413 | $ 794 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Disclosure (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Operating leases | ||
Right of use assets | $ 2,588 | $ 0 |
Operating lease liabilities | 615 | 0 |
Long-term operating lease liabilities | 2,068 | 0 |
Total operating lease liabilities | $ 2,683 | |
Weighted average remaining lease term (in years) | 6 years 4 months 24 days | |
Weighted average discount rate | 4.12% | |
Finance leases | ||
Property, plant and equipment, gross | $ 62,902 | 61,213 |
Less accumulated depreciation | 17,567 | 16,155 |
Property, plant and equipment, net | 45,335 | 45,058 |
Debt due within one year | 554 | 544 |
Long-term debt | 27,853 | 26,980 |
Total finance lease liabilities | 655 | $ 649 |
Finance Lease | ||
Finance leases | ||
Property, plant and equipment, gross | 786 | |
Less accumulated depreciation | 243 | |
Property, plant and equipment, net | 543 | |
Debt due within one year | 51 | |
Long-term debt | 604 | |
Total finance lease liabilities | $ 655 | |
Weighted average remaining lease term (in years) | 12 years 9 months 18 days | |
Weighted average discount rate | 6.04% |
Leases Schedule of Minimum Leas
Leases Schedule of Minimum Lease Payments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Operating leases | ||
2019 | $ 381 | $ 709 |
2020 | 650 | 619 |
2021 | 562 | 553 |
2022 | 383 | 389 |
2023 | 273 | 295 |
2024 and thereafter | 837 | 858 |
Gross lease payments | 3,086 | 3,423 |
Less: imputed interest | 403 | |
Total operating lease liabilities | 2,683 | |
Finance leases | ||
2019 | 39 | 70 |
2020 | 78 | 71 |
2021 | 70 | 66 |
2022 | 77 | 75 |
2023 | 83 | 82 |
2024 and thereafter | 600 | 586 |
Gross lease payments | 947 | 950 |
Less: imputed interest | 292 | 301 |
Total finance lease liabilities | $ 655 | $ 649 |
Leases Lessor Narrative (Detail
Leases Lessor Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Lease revenue | $ 63 | $ 123 |
Leases Schedule of Future Futur
Leases Schedule of Future Future Rental Payments Receivable for Operating Leases (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 90 |
2020 | 178 |
2021 | 169 |
2022 | 166 |
2023 | 161 |
2024 and thereafter | 1,264 |
Total minimum future rentals | $ 2,028 |
Leases Schedule of Property Sub
Leases Schedule of Property Subject to or Available for Operating Lease (Details) $ in Millions | Jun. 30, 2019USD ($) |
Property, plant and equipment | $ 1,827 |
Less accumulated depreciation | 284 |
Property, plant and equipment, net | 1,543 |
Natural gas gathering and NGL transportation pipelines and facilities | |
Property, plant and equipment | 1,039 |
Natural gas processing facilities | |
Property, plant and equipment | 633 |
Terminal and related assets | |
Property, plant and equipment | 111 |
Land, building, office equipment and other | |
Property, plant and equipment | $ 44 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
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 -
Commitments and Contingencies - Environmental Matters (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities for remediation | $ 449 | $ 455 |
Receivables for recoverable costs | $ 35 | $ 35 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Lawsuits (Details) - Pending Litigation - Emergency Pricing And Consumer Protection Laws $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Plaintiff | Commonwealth of Kentucky |
Damages sought | $ 89 |
Loss contingency, period of occurrence | during September and October 2005 |
Commitments and Contingencies_3
Commitments and Contingencies - Guarantees (Details) $ in Millions | Jun. 30, 2019USD ($) |
Other Guarantees | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 123 |
LOOP and LOCAP LLC | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 171 |
Gray Oak Pipeline | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 25.00% |
Gray Oak Pipeline | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 138 |
Maximum borrowing capacity | 1,430 |
Bakken Pipeline System | Other Guarantees | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 230 |
Crowley Ocean Partners | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 50.00% |
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 125 |
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | Crowley Term Loan | |
Loss Contingencies [Line Items] | |
Maximum borrowing capacity | $ 325 |
Crowley Blue Water Partners | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 50.00% |
Crowley Blue Water Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 125 |
Indirect Ownership Interest | Bakken Pipeline System | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 9.00% |
Marathon Oil Companies | Indemnification Agreement | |
Loss Contingencies [Line Items] | |
Guarantee obligation current carrying value | $ 1 |
Commitments and Contingencies_4
Commitments and Contingencies - Contractual Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | $ 1,150 |