SWOT
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Marathon Petroleum

To deliver the essential energy that fuels modern life by becoming the leading sustainable energy company serving society's needs



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Align the strategy

Marathon Petroleum SWOT Analysis

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To deliver the essential energy that fuels modern life by becoming the leading sustainable energy company serving society's needs

Strengths

  • SCALE: Largest US refiner with 13 refineries & 3 MMbpd capacity
  • INTEGRATION: Owned midstream assets reduce logistics costs 18%
  • LOCATIONS: Strategic coastal & midwest refineries near demand
  • EFFICIENCY: Industry-leading 94% utilization rate drives margins
  • FLEXIBILITY: Multi-feedstock capabilities handle diverse crudes

Weaknesses

  • EMISSIONS: Carbon footprint exceeds industry carbon benchmarks
  • DEPENDENCE: 87% of revenue still from traditional petroleum
  • COMPLEXITY: Aging facilities require $2.8B annual maintenance
  • REGULATION: Operations in regions with strict emission controls
  • TRANSITION: Slower renewable investment than key competitors

Opportunities

  • RENEWABLES: Expanding biofuel production capacity by 65%
  • HYDROGEN: Developing infrastructure for hydrogen production
  • CARBON CAPTURE: Implementing technologies at key refineries
  • DIVERSIFICATION: Expanding into sustainable aviation fuels
  • EXPORTS: Growing international markets for refined products

Threats

  • ELECTRIFICATION: EV adoption reducing gasoline demand 2%/yr
  • REGULATION: Stricter carbon regulations increasing costs 15%
  • COMPETITION: International refiners with lower operating costs
  • VOLATILITY: Crude price fluctuations impact refining margins
  • TECHNOLOGY: New energy solutions disrupting traditional model

Key Priorities

  • DIVERSIFY: Accelerate renewable fuels production by 85%
  • EFFICIENCY: Implement carbon capture across refining fleet
  • INTEGRATION: Expand logistics to support future fuel portfolio
  • RATIONALIZE: Optimize asset portfolio for energy transition
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Align the plan

Marathon Petroleum OKR Plan

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To deliver the essential energy that fuels modern life by becoming the leading sustainable energy company serving society's needs

ENERGY TRANSITION

Lead sustainable transition while maximizing core business

  • RENEWABLES: Increase renewable diesel & SAF production capacity by 400 million gallons annually by Q4 2025
  • CARBON: Implement carbon capture technology at 3 largest refineries reducing emissions by 20% versus 2022 baseline
  • EFFICIENCY: Optimize refinery operations to reduce energy consumption by 12% across all facilities by end of FY2025
  • PORTFOLIO: Complete strategic review of refining assets with transition roadmap for 100% of facilities by Q3 2025
DATA ADVANTAGE

Leverage AI to optimize operations and reduce emissions

  • PLATFORM: Complete implementation of unified data architecture connecting 100% of operational systems by Q3 2025
  • PREDICTION: Deploy AI-driven predictive maintenance across all refineries reducing unplanned downtime by 35%
  • OPTIMIZATION: Implement machine learning yield optimization increasing product margin by $0.85/barrel across fleet
  • TALENT: Train 500 employees on data science & AI applications through certification program by end of Q2 2025
SUPPLY RESILIENCE

Strengthen integrated value chain for market advantage

  • LOGISTICS: Expand owned midstream capacity by 15% through strategic acquisitions and new construction by Q4 2025
  • FLEXIBILITY: Increase multi-feedstock capabilities enabling 25% more crude varieties across refining network
  • TERMINALS: Complete modernization of 12 key distribution terminals increasing throughput capacity by 28%
  • PARTNERSHIPS: Secure 5 strategic renewable feedstock supply agreements with 10+ year terms by end of FY2025
FINANCIAL STRENGTH

Maintain industry-leading returns while funding transition

  • MARGINS: Achieve refining margin improvement of $1.20 per barrel through operational excellence initiatives
  • RETURNS: Maintain ROIC above 15% while investing $2.2B in energy transition projects through FY2025
  • CAPITAL: Return minimum $10B to shareholders through dividends and share repurchases by end of FY2025
  • STRUCTURE: Optimize capital structure maintaining investment grade rating with debt-to-EBITDA ratio below 2.5x
METRICS
  • Adjusted EBITDA: $24B for FY2025
  • Carbon Intensity: 30% reduction vs 2014 baseline
  • Renewable Production: 1.5B gallons annually
VALUES
  • Safety & Environmental Stewardship
  • Integrity
  • Respect
  • Inclusion
  • Collaboration
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Align the learnings

Marathon Petroleum Retrospective

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To deliver the essential energy that fuels modern life by becoming the leading sustainable energy company serving society's needs

What Went Well

  • MARGINS: Crack spreads remained strong at $28.80 per barrel
  • UTILIZATION: Refinery utilization exceeded target at 94%
  • COSTS: Operating expenses decreased 3.5% year-over-year
  • MIDSTREAM: MPLX contributed $5.4B in distributable cash flow
  • CAPITAL: Share repurchases of $3.3B executed during quarter

Not So Well

  • MAINTENANCE: Unplanned downtime at Galveston Bay refinery
  • RENEWABLES: Renewable diesel project delays of 4+ months
  • REGULATIONS: Compliance costs increased by $78M quarter
  • LOGISTICS: Supply chain disruptions impacted Gulf operations
  • LABOR: Skilled workforce shortages in key operational areas

Learnings

  • INTEGRATION: Better coordination between refining & logistics
  • PLANNING: Improved turnaround scheduling reduced costs 12%
  • DIGITAL: Predictive maintenance reduced unexpected downtime
  • REGULATORY: Early engagement improved compliance outcomes
  • FLEXIBILITY: Multi-feedstock capabilities provided advantages

Action Items

  • ACCELERATE: Renewable fuels projects by Q4 2024
  • IMPLEMENT: Predictive maintenance across all refineries
  • OPTIMIZE: Crude slate to maximize margin opportunities
  • REDUCE: Carbon intensity through operational improvements
  • EXPAND: Low carbon logistics capabilities by Q2 2025
Marathon Petroleum logo
Overview

Marathon Petroleum Market

  • Founded: Founded in 2011 as spin-off from Marathon Oil
  • Market Share: ~16% of US refining capacity
  • Customer Base: Retail consumers, commercial and industrial
  • Category:
    Petroleum Refining
  • Location: Findlay, Ohio
  • Zip Code: 45840
  • Employees: Approximately 17,800
Competitors
ExxonMobil logo
ExxonMobil
Chevron logo
Chevron
Phillips 66 logo
Phillips 66
Valero Energy logo
Valero Energy
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PBF Energy
Products & Services
No products or services data available
Distribution Channels
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Align the business model

Marathon Petroleum Business Model Canvas

Problem

  • Reliable energy supply for transportation needs
  • Meeting stringent environmental regulations
  • Energy transition amid fossil fuel dependence
  • Volatile commodity price environment challenges
  • Carbon-intensive operations requiring reduction

Solution

  • Efficient refining of crude oil into fuels
  • Expanding renewable & low-carbon fuel options
  • Integrated logistics minimizing supply chain costs
  • Carbon reduction initiatives across operations
  • Strategic energy transition investment approach

Key Metrics

  • Refinery utilization rate (target: >90%)
  • Crack spread margins ($25-30 per barrel)
  • Renewable fuel production volumes (1.2B gal/yr)
  • Carbon intensity reduction (30% by 2030)
  • Free cash flow generation ($10B+ annually)

Unique

  • Largest US refining footprint with 3.1MMbpd
  • Fully integrated fuel value chain capabilities
  • Strategically located assets near demand centers
  • Multi-feedstock flexibility handling all crudes
  • Scale advantages in both traditional & renewables

Advantage

  • Infrastructure network impossible to replicate
  • Technical expertise in complex refining processes
  • Established relationships across energy value chain
  • Scale efficiencies in procurement & operations
  • Regulatory knowledge & compliance capabilities

Channels

  • Branded retail locations across 29 states
  • Wholesale distribution to independent retailers
  • Direct commercial & industrial sales channels
  • Terminal & pipeline distribution infrastructure
  • Marine & export facilities for international markets

Customer Segments

  • Individual consumers purchasing transportation fuel
  • Commercial fleets requiring reliable fuel supply
  • Airlines needing specialized jet fuel products
  • Industrial users requiring specialized products
  • Wholesale distributors serving retail networks

Costs

  • Crude oil & feedstock acquisition (primary cost)
  • Refinery operations & maintenance ($2.8B annually)
  • Logistics & transportation infrastructure costs
  • Environmental compliance & regulatory expenses
  • Energy transition & renewable project investments
Marathon Petroleum logo
Overview

Marathon Petroleum Product Market Fit

1

Scale efficiency in both traditional & renewables

2

Integrated value chain from crude to consumer

3

Leading position in energy transition



Before State

  • Reliance on fossil fuels only
  • Limited renewable integration
  • High carbon intensity operations
  • Traditional refining focus
  • Regulatory compliance challenges

After State

  • Balanced traditional and renewable portfolio
  • Reduced carbon intensity operations
  • Energy transition leader with diverse assets
  • Circular economy participant
  • Partner in sustainable transportation

Negative Impacts

  • Environmental concerns and emissions
  • Exposure to fossil fuel transition risks
  • Fluctuating commodity price vulnerability
  • Regulatory compliance costs increasing
  • Limited market growth in traditional fuels

Positive Outcomes

  • Revenue stream diversification
  • Regulatory compliance positioning
  • ESG investment attractiveness
  • Market leadership in transition
  • New growth opportunities unlocked

Key Metrics

Refinery utilization rate
94%
Renewable fuel production
1.2B gallons annually
Retail fuel market penetration
29 states
Transport fleet conversion rate
18%
Carbon intensity reduction
30% by 2030

Requirements

  • Capital for renewable investments
  • R&D in alternative fuels
  • Strategic partnerships across value chain
  • Carbon capture & storage technology
  • Workforce transformation & upskilling

Why Marathon Petroleum

  • Strategic M&A for capabilities
  • Refinery conversions to renewables
  • Operational efficiency initiatives
  • Carbon capture project deployment
  • Joint ventures with technology partners

Marathon Petroleum Competitive Advantage

  • Largest US refining footprint
  • Existing logistics infrastructure
  • Technical expertise in fuel production
  • Strong capital position for investments
  • Scale to influence supply chain

Proof Points

  • 30% emission reduction since 2014
  • 1.2B gallons renewable capacity by 2025
  • 5 major partnerships with tech innovators
  • 2 refineries converting to renewables
  • Carbon capture projects underway
Marathon Petroleum logo
Overview

Marathon Petroleum Market Positioning

What You Do

  • Refine crude oil into fuels and petrochemicals

Target Market

  • Consumer, commercial, industrial energy users

Differentiation

  • Largest US refiner by capacity
  • Extensive midstream infrastructure
  • Renewable fuels portfolio
  • Retail network integration
  • Advanced technology refineries

Revenue Streams

  • Refined product sales
  • Midstream operations
  • Retail fuel margins
  • Renewable credits
  • Chemical products
Marathon Petroleum logo
Overview

Marathon Petroleum Operations and Technology

Company Operations
  • Organizational Structure: Business unit model with centralized services
  • Supply Chain: Integrated crude-to-customer supply chain
  • Tech Patents: Proprietary refining processes and catalysts
  • Website: https://www.marathonpetroleum.com
Top Clients
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Competitive forces

Marathon Petroleum Porter's Five Forces

Threat of New Entry

LOW due to $10B+ cost for new refineries, strict environmental regulations & limited permit approvals in past 20 years

Supplier Power

MODERATE as crude suppliers numerous but OPEC+ has significant influence; Marathon's scale provides some negotiating advantage

Buyer Power

LOW for retail consumers but HIGH for commercial buyers; commodity products encourage price sensitivity & limited differentiation

Threat of Substitution

INCREASING with EV adoption rising 40% annually & renewable energy growth; long transition timeline provides adaptation window

Competitive Rivalry

HIGH intensity with 5 major US refiners competing in mature market; capacity utilization & operational efficiency key differentiators

Marathon Petroleum logo
Drive AI transformation

Marathon Petroleum AI Strategy SWOT Analysis

To deliver the essential energy that fuels modern life by becoming the leading sustainable energy company serving society's needs

Strengths

  • DATA: Robust operational data from refineries & distribution
  • INFRASTRUCTURE: Advanced control systems across operations
  • EXPERTISE: Established digital transformation team of 120+
  • INVESTMENT: $350M annual digital/AI technology budget
  • PARTNERSHIPS: Key relationships with tech & cloud providers

Weaknesses

  • LEGACY: Aging systems requiring significant integration effort
  • TALENT: Limited AI specialized workforce vs tech companies
  • SILOS: Decentralized data architecture across business units
  • ADOPTION: Varying levels of digital maturity across facilities
  • SECURITY: Critical infrastructure vulnerability concerns

Opportunities

  • OPTIMIZATION: AI-driven refinery yield improvement of 3-5%
  • PREDICTIVE: Maintenance forecasting reducing downtime 28%
  • EFFICIENCY: Energy consumption reduction via smart systems
  • CARBON: AI-optimized operations to reduce emissions by 15%
  • TRADING: Machine learning for commodity trading advantage

Threats

  • COMPETITION: Tech companies entering energy optimization
  • SECURITY: Increasing sophistication of cyber threats to OT/IT
  • INVESTMENT: Rapid technology evolution requiring constant CAPEX
  • REGULATION: Emerging AI governance impacting implementation
  • DEPENDENCE: Growing reliance on third-party AI solutions

Key Priorities

  • CENTRALIZE: Create unified data architecture for AI/ML models
  • UPSKILL: Develop AI capabilities through training & recruitment
  • OPTIMIZE: Deploy AI for process efficiency & carbon reduction
  • PROTECT: Strengthen cybersecurity for critical AI applications
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Marathon Petroleum Financial Performance

Profit: $9.7 billion (2023)
Market Cap: Approximately $70 billion
Stock Symbol: MPC
Annual Report: Available on investor relations website
Debt: $27.4 billion total debt (2023)
ROI Impact: 14.2% return on invested capital

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