Why Palantir Shares Are Trading Higher By Around 13%; Here Are 20 Stocks Moving Premarket
Shares of Palantir Technologies Inc. PLTR rose sharply in today’s pre-market trading after the company reported better-than-expected third-quarter financial results and issued guidance above consensus estimates.
Revenue increased 5% year over year to $3.07 billion, beating the consensus of $3.05 billion. Adjusted EPS of 77 cents surpassed the street view of 68 cents.
Palantir Technologies shares rose 12.9% to $46.75 in the pre-market trading session.
Here are some other stocks moving in pre-market trading.
Gainers
- Simpple Ltd. SPPL gained 69.5% to $2.00 in pre-market trading after jumping around 269% on Monday.
- Bionomics Limited BNOX rose 67.6% to $0.3219 in pre-market trading. Bionomics received milestone payment of AUS$1 million from Carina Biotech for BNC101 partnered legacy oncology program.
- Avalon GloboCare Corp. ALBT shares surged 42.4% to $3.19 in pre-market trading after dipping 24% on Monday.
- QuinStreet, Inc. QNST climbed 29.8% to $26.22 in pre-market trading after the company posted upbeat quarterly results and raised its FY25 sales outlook.
- Astera Labs, Inc. ALAB gained 26.1% to $87.83 in pre-market trading after the company announced better-than-expected quarterly results.
- Zyversa Therapeutics Inc ZVSA shares rose 15.3% to $2.10 in pre-market trading after falling 5% on Monday.
- Vimeo, Inc. VMEO gained 15.2% to $5.54 in pre-market trading after the company posted upbeat quarterly results.
- Kingsoft Cloud Holdings Limited KC gained 12.6% to $3.12 in pre-market trading.
- Alarum Technologies Ltd – ADR ALAR gained 16.6% to $14.39 in pre-market trading.
- Elevai Labs Inc. ELAB gained 11.9% to $0.0225 in pre-market trading after the company announced update and extension of pending offer to exchange.
Losers
- Marqeta, Inc. MQ shares tumbled 38.8% to $3.64 in pre-market trading following weak quarterly sales.
- Verrica Pharmaceuticals Inc. VRCA shares fell 31.4% to $0.98 in pre-market trading after the company posted downbeat quarterly results.
- Trio Petroleum Corp. TPET dipped 24.8% to $0.0960 in pre-market trading after the company announced a 1-for-20 reverse stock split.
- Navitas Semiconductor Corporation NVTS shares fell 19.4% to $2.10 in pre-market trading after the company reported weak third-quarter sales.
- Lattice Semiconductor Corporation LSCC declined 18% to $42.55 in pre-market trading following soft fourth-quarter guidance.
- Nft Ltd MI shares dipped 16.1% to $7.50 in pre-market trading after gaining 9% on Monday.
- Vast Renewables Limited VSTE fell 16.2% to $5.66 in pre-market trading after surging more than 40% on Monday.
- Celanese Corporation CE fell 15.8% to $103.89 in today’s pre-market trading after the company reported worse-than-expected third-quarter financial results and announced it intends to temporarily reduce its quarterly dividend.
- Altice USA, Inc. ATUS fell 14.3% to $2.22 in pre-market trading after the company reported weak third-quarter financial results.
- Tactile Systems Technology, Inc. TCMD fell 10.3% to $13.55 in pre-market trading after the company posted weak quarterly sales and lowered FY24 sales forecast.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Apollo Reports Third Quarter 2024 Results
NEW YORK, Nov. 05, 2024 (GLOBE NEWSWIRE) — Apollo Global Management, Inc. APO (together with its consolidated subsidiaries, “Apollo”) today reported results for the third quarter ended September 30, 2024.
Marc Rowan, Chief Executive Officer at Apollo said, “Our strong third quarter results reflect broad-based momentum across the platform. We are building a next-generation financial services business uniquely positioned to win across massive market opportunities, and we are excited to execute on the attractive growth plan unveiled at our recent Investor Day.”
Apollo issued a full detailed presentation of its third quarter ended September 30, 2024 results, which can be viewed on Apollo’s Investor Relations website at ir.apollo.com.
Dividend
Apollo Global Management, Inc. has declared a cash dividend of $0.4625 per share of its Common Stock for the third quarter ended September 30, 2024. This dividend will be paid on November 29, 2024 to holders of record at the close of business on November 18, 2024.
Apollo Global Management, Inc. has also declared and set aside for payment a cash dividend of $0.8438 per share of its Mandatory Convertible Preferred Stock, which will be paid on January 31, 2025 to holders of record at the close of business on January 15, 2025.
The declaration and payment of dividends on the Common Stock and the Mandatory Convertible Preferred Stock are at the sole discretion of Apollo Global Management, Inc.’s board of directors. Apollo cannot assure its stockholders that they will receive any dividends in the future.
Conference Call
Apollo will host a public audio webcast on Tuesday, November 5, 2024 at 8:30 a.m. Eastern Time. During the webcast, members of Apollo’s senior management team will review Apollo’s financial results for the third quarter ended September 30, 2024.
The webcast may be accessed at ir.apollo.com. For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event.
Apollo distributes its earnings releases via its website and email distribution lists. Those interested in receiving firm updates by email can sign up for them at ir.apollo.com.
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2024, Apollo had approximately $733 billion of assets under management. To learn more, please visit www.apollo.com.
Forward-Looking Statements
In this press release, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this press release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management’s assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene’s ability to maintain or improve financial strength ratings, the impact of Athene’s reinsurers failing to meet their assumed obligations, Athene’s ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2024, and the quarterly report on Form 10-Q filed with the SEC on August 8, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This press release does not constitute an offer of any Apollo fund.
Investor and Media Relations Contacts
For investors please contact:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
212-822-0540
ir@apollo.com
For media inquiries please contact:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
212-822-0491
communications@apollo.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Roundhill Investments Announces 2024 Distributions for XPAY
NEW YORK, Nov. 5, 2024 /PRNewswire/ — Roundhill Investments, an ETF sponsor focused on innovative financial products, has announced the following ETF distributions for the Roundhill S&P 500® Target 20 Managed Distribution ETF (XPAY).
Based on the Fund’s initial NAV and its 20% annualized distribution target, the Adviser has calculated a monthly distribution rate of $0.972333 for 2024.
|
Distribution |
Ex-Date |
Record Date |
Pay Date |
|
$0.972333 |
11/6/24 |
11/6/24 |
11/7/24 |
|
$0.972333 |
12/11/24 |
12/11/24 |
12/12/24 |
The Roundhill S&P 500® Target 20 Managed Distribution ETF (“XPAY”) is designed to pay monthly return of capital distributions to shareholders at an annualized rate of twenty percent, while providing exposure to the S&P 500®. XPAY is an actively-managed ETF.
The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Returns less than one year are not annualized. For the most recent standardized and month-end performance, please click here: XPAY.
The Fund intends to declare and pay monthly distributions to shareholders at an annualized distribution rate of 20% that is based on the closing NAV of the Fund on the final business day of December each calendar year, although this policy may be amended at any time. It is anticipated that such distributions will consist entirely of return of capital. Insofar as the Fund has net investment income in a given year, such net investment income will be paid out via an additional distribution some or all of which will not be characterized as return of capital. The targeted annual distribution rate is not guaranteed and may be decreased or increased in the future.
Distribution rate based on starting period NAV.
About Roundhill Investments:
Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Roundhill’s suite of ETFs offers distinct and differentiated exposures across thematic equity, options income, and trading vehicles. Roundhill offers a depth of ETF knowledge and experience, as the team has collectively launched more than 100+ ETFs including several first-to-market products. To learn more about the company, please visit roundhillinvestments.com.
This material must be preceded or accompanied by a prospectus.
Click here for the XPAY prospectus.
Investors should consider the investment objectives, risk, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information please call 1-855-561-5728 or visit the website at https://www.roundhillinvestments.com/etf/XPAY. Read the prospectus or summary prospectus carefully before investing.
Return of capital represents a return of a portion of a Fund shareholder’s invested capital and is not taxable in the year it is received unless the distribution exceeds a shareholder’s basis in the Fund. However, a return of capital may result in an increase in a later gain on a sale of Fund Shares or a reduction of a loss.
The strategy targets those investors who seek monthly income from their investment but wish to retain exposure to the return of the S&P 500® Index. Because a significant portion of the Fund’s distributions will consist of return of capital, the Fund may not be an appropriate investment for investors who do not want their principal investment in the Fund to decrease over time or who do not wish to receive return of capital in a given period.
Distribution Tax Risk. The Fund currently expects to make distributions on a monthly basis. These distributions are expected and designed to exceed the Fund’s income and gains for the Fund’s taxable year. Distributions in excess of the Fund’s current and accumulated earnings and profits will be treated as a return of capital. The Fund seeks to be managed such that the entirety of the Fund’s distributions will be treated as a return of capital. A return of capital distribution generally will not be taxable but currently will reduce the shareholder’s cost basis and will result in a higher capital gain or lower capital loss when those Fund Shares on which the distribution was received are sold. Once a Fund shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gain if the Fund shareholder holds Fund Shares as capital assets. Additionally, any capital returned through distributions will be distributed after payment of Fund fees and expenses. Because a significant portion of the Fund’s distributions will consist of return of capital, the Fund may not be an appropriate investment for investors who do not want their principal investment in the Fund to decrease over time or who do not wish to receive return of capital in a given period.
Market Risk. Market risk is the risk that a particular security, or shares of the Fund (“Fund Shares”) in general, may fall in value. Securities are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices.
Managed Payout Risk. The Fund intends to pay monthly distributions to shareholders based upon based on the NAV of the Fund on the final business day of December each calendar year. Distributions will be paid from Fund assets regardless of the Fund’s performance or the level of dividends, income and capital gains earned by the Fund, and will reduce the amount of assets available for investment by the Fund. If distributions paid by the Fund exceed the Fund’s earnings and profits, distributions of that excess will be treated as a return of capital to the extent of your tax basis in your Fund Shares.
The targeted annual distribution rate to be paid by the Fund each year is based on the NAV of the Fund on the final business day of December of the prior year. The targeted annual distribution rate is not guaranteed and may be decreased or increased in the future. The actual annual distribution rate paid by the Fund each month or year may be higher or lower than the targeted rate.
SPY ETF Risks. The Fund will have significant exposure to the S&P 500 Index and the SPY ETF through its investments in the SPY FLEX Options. Accordingly, the Fund will subject to the risks of the SPY ETF.
FLEX Options Risk. Trading FLEX Options involves risks different from, or possibly greater than, the risks associated with investing directly in securities. The Fund may experience losses from specific FLEX Option positions and certain FLEX Option positions may expire worthless. The FLEX Options are listed on an exchange; however, no one can guarantee that a liquid secondary trading market will exist for the FLEX Options. In the event that trading in the FLEX Options is limited or absent, the value of the Fund’s FLEX Options may decrease.
Active Management Risk. The Fund is actively-managed and its performance reflects investment decisions that the Adviser and/or Sub-Adviser makes for the Fund. Such judgments about the Fund’s investments may prove to be incorrect.
Active Market Risk. Although Fund Shares are listed for trading on the Exchange, there can be no assurance that an active trading market for Fund Shares will develop or be maintained.
Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class.
Derivatives Risk. The use of derivative instruments (i.e. options contracts) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include: (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset.
New Fund Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.
Glossary
S&P 500 Index (S&P 500®): The S&P 500 Index is a measure of large-cap U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 500 U.S. operating companies and real estate investment trusts selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. It is rebalanced quarterly in March, June, September and December.
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SOURCE Roundhill Investments
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Marathon Petroleum Corp. Reports Third-Quarter 2024 Results
FINDLAY, Ohio, Nov 5, 2024 /PRNewswire/ —
- Third-quarter net income attributable to MPC of $622 million, or $1.87 per diluted share
- $2.5 billion of adjusted EBITDA and $1.7 billion of net cash provided by operating activities
- Executing Midstream growth anchored in the Permian and Marcellus; $1.6 billion segment adjusted EBITDA in the third quarter, up nearly 6% year-over-year
- Annually MPC expects to receive distributions of $2.5 billion following MPLX’s 12.5% quarterly distribution increase, building on the strong value proposition to MPC through our integrated relationship
- $3.0 billion of capital returned to shareholders; announced additional $5 billion share repurchase authorization and a 10% quarterly dividend increase
Marathon Petroleum Corp. MPC today reported net income attributable to MPC of $622 million, or $1.87 per diluted share, for the third quarter of 2024, compared with net income attributable to MPC of $3.3 billion, or $8.28 per diluted share, for the third quarter of 2023.
The third quarter of 2024 adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $2.5 billion, compared with $5.7 billion for the third quarter of 2023. Adjustments are shown in the accompanying release tables.
“We remain committed to peer-leading operational excellence, commercial performance, and profitability per barrel in each of the regions in which we operate,” said President and Chief Executive Officer Maryann Mannen. “MPLX continues to grow, and the durability of its cash flow profile supported a 12.5% increase to its quarterly distribution, strengthening the value proposition to MPC. We returned $3.0 billion through share repurchases and dividends during the quarter, demonstrating our commitment of peer-leading capital return.”
Results from Operations
Adjusted EBITDA (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Refining & Marketing Segment |
|||||||||||
|
Segment income from operations |
$ |
298 |
$ |
3,757 |
$ |
2,383 |
$ |
9,076 |
|||
|
Add: Depreciation and amortization |
465 |
463 |
1,395 |
1,411 |
|||||||
|
Refining planned turnaround costs |
290 |
153 |
1,121 |
902 |
|||||||
|
Refining & Marketing segment adjusted EBITDA |
1,053 |
4,373 |
4,899 |
11,389 |
|||||||
|
Midstream Segment |
|||||||||||
|
Segment income from operations |
1,275 |
1,136 |
3,796 |
3,550 |
|||||||
|
Add: Depreciation and amortization |
353 |
340 |
1,041 |
988 |
|||||||
|
Garyville incident response costs |
— |
63 |
— |
63 |
|||||||
|
Midstream segment adjusted EBITDA |
1,628 |
1,539 |
4,837 |
4,601 |
|||||||
|
Subtotal |
2,681 |
5,912 |
9,736 |
15,990 |
|||||||
|
Corporate |
(224) |
(246) |
(675) |
(613) |
|||||||
|
Add: Depreciation and amortization |
28 |
42 |
75 |
80 |
|||||||
|
Adjusted EBITDA |
$ |
2,485 |
$ |
5,708 |
$ |
9,136 |
$ |
15,457 |
|||
Refining & Marketing (R&M)
Segment adjusted EBITDA was $1.1 billion in the third quarter of 2024, versus $4.4 billion for the third quarter of 2023. R&M segment adjusted EBITDA was $3.82 per barrel for the third quarter of 2024, versus $16.06 per barrel for the third quarter of 2023. Segment adjusted EBITDA excludes refining planned turnaround costs, which totaled $290 million in the third quarter of 2024 and $153 million in the third quarter of 2023. The decrease in segment adjusted EBITDA was driven primarily by lower market crack spreads.
R&M margin was $14.35 per barrel for the third quarter of 2024, versus $26.16 per barrel for the third quarter of 2023. Crude capacity utilization was approximately 94%, resulting in total throughput of 3.0 million barrels per day (bpd) for the third quarter of 2024.
Refining operating costs were $5.30 per barrel for the third quarter of 2024, versus $5.14 per barrel for the third quarter of 2023.
Midstream
Segment adjusted EBITDA was $1.6 billion in the third quarter of 2024, versus $1.5 billion for the third quarter of 2023. The results were primarily driven by higher rates and volumes, including growth from equity affiliates, and contributions from recently acquired assets in the Utica and Permian basins.
Corporate and Items Not Allocated
Corporate expenses totaled $224 million in the third quarter of 2024, compared with $246 million in the third quarter of 2023.
Financial Position, Liquidity, and Return of Capital
As of September 30, 2024, MPC had $5.1 billion of cash, cash equivalents, and short-term investments, including $2.4 billion of cash at MPLX, and $5 billion available on its bank revolving credit facility. The company repaid the $750 million of senior notes that matured in September 2024 and anticipates refinancing the notes.
In the third quarter, the company returned approximately $3.0 billion of capital to shareholders through $2.7 billion of share repurchases and $273 million of dividends. Through October 31, the company repurchased an additional $0.5 billion of company shares.
On October 30, MPC announced that its Board of Directors approved an increase to the quarterly dividend to $0.91 per share. The dividend is payable December 10, 2024, to shareholders of record on November 20, 2024.
Additionally, the Board of Directors approved an incremental $5 billion share repurchase authorization. With the addition of this new authorization, the company has $8.5 billion available under its share repurchase authorizations. The company may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated share repurchases, tender offers or open market solicitations for shares, some of which may be effected through Rule 10b5-1 plans. The timing of repurchases will depend upon several factors, including market and business conditions, and repurchases may be suspended or discontinued at any time.
Strategic and Operations Update
MPC’s 2024 capital spending plan includes high-return investments at its Los Angeles and Galveston Bay refineries. In addition to these multi-year investments, the company is executing shorter-term projects that offer high returns targeted at enhancing refinery yields, improving energy efficiency, and lowering costs.
MPLX is advancing growth projects anchored in the Permian and Marcellus basins. MPLX’s integrated footprints in these basins have positioned the partnership with a steady source of growth opportunities.
In the Permian, MPLX gas processing capacity is expected to reach 1.4 billion cubic feet per day (bcf/d) in the second half of 2025. In the Northeast, with the addition of the new facility announced today, MPLX’s gas processing capacity is expected to reach 8.1 bcf/d and total fractionation capacity to 800 thousand bpd in the second half of 2026. In the Utica basin, utilization of existing capacity is increasing, with gas processing volumes continuing to grow.
In the third quarter, MPLX closed the acquisition of its additional interest in the BANGL pipeline, bringing its ownership to 45%. This natural gas liquids pipeline is being expanded to increase capacity to 250 thousand bpd, with expected completion in the first quarter of 2025. MPLX and its partners are progressing the Blackcomb and Rio Bravo natural gas pipelines, connecting the Permian to domestic and export markets along the Gulf Coast. Both pipelines are anticipated in service in the second half of 2026.
Fourth-Quarter 2024 Outlook
|
Refining & Marketing Segment: |
||
|
Refining operating costs per barrel(a) |
$ |
5.50 |
|
Distribution costs (in millions) |
$ |
1,525 |
|
Refining planned turnaround costs (in millions) |
$ |
285 |
|
Depreciation and amortization (in millions) |
$ |
475 |
|
Refinery throughputs (mbpd): |
||
|
Crude oil refined |
2,650 |
|
|
Other charge and blendstocks |
230 |
|
|
Total |
2,880 |
|
|
Corporate (includes $20 million of D&A) |
$ |
200 |
|
(a) |
Excludes refining planned turnaround and depreciation and amortization expense. |
Conference Call
At 11:00 a.m. ET today, MPC will hold a conference call and webcast to discuss the reported results and provide an update on company operations. Interested parties may listen by visiting MPC’s website at www.marathonpetroleum.com. A replay of the webcast will be available on the company’s website for two weeks. Financial information, including the earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at www.marathonpetroleum.com.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system. MPC’s marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
Investor Relations Contacts: (419) 421-2071
Kristina Kazarian, Vice President Finance and Investor Relations
Brian Worthington, Director, Investor Relations
Alyx Teschel, Manager, Investor Relations
Media Contact: (419) 421-3577
Jamal Kheiry, Communications Manager
References to Earnings and Defined Terms
References to earnings mean net income attributable to MPC from the statements of income. Unless otherwise indicated, references to earnings and earnings per share are MPC’s share after excluding amounts attributable to noncontrolling interests.
Forward-Looking Statements
This press release contains forward-looking statements regarding MPC. These forward-looking statements may relate to, among other things, MPC’s expectations, estimates and projections concerning its business and operations, financial priorities, strategic plans and initiatives, capital return plans, capital expenditure plans, operating cost reduction objectives, and environmental, social and governance (“ESG”) plans and goals, including those related to greenhouse gas emissions and intensity reduction targets, freshwater withdrawal intensity reduction targets, diversity, equity and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors or are required to be disclosed in our filings with the Securities Exchange Commission (SEC). In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as “anticipate,” “believe,” “commitment,” “could,” “design,” “endeavor”, “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “opportunity,” “outlook,” “plan,” “policy,” “position,” “potential,” “predict,” “priority,” “progress”, “project,” “prospective,” “pursue,” “seek,” “should,” “strategy,” “strive”, “target,” “trends”, “will,” “would” or other similar expressions that convey the uncertainty of future events or outcomes. MPC cautions that these statements are based on management’s current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPC, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPC’s actual results to differ materially from those implied in the forward-looking statements include but are not limited to: political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas, natural gas liquids (“NGLs”), or renewables, or taxation; volatility in and degradation of general economic, market, industry or business conditions, including as a result of pandemics, other infectious disease outbreaks, natural hazards, extreme weather events, regional conflicts such as hostilities in the Middle East and in Ukraine, inflation or rising interest rates; the regional, national and worldwide demand for refined products and renewables and related margins; the regional, national or worldwide availability and pricing of crude oil, natural gas, NGLs and other feedstocks and related pricing differentials; the adequacy of capital resources and liquidity and timing and amounts of free cash flow necessary to execute our business plans, effect future share repurchases and to maintain or grow our dividend; the success or timing of completion of ongoing or anticipated projects; the timing and ability to obtain necessary regulatory approvals and permits and to satisfy other conditions necessary to complete planned projects or to consummate planned transactions within the expected timeframes if at all; the availability of desirable strategic alternatives to optimize portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; the inability or failure of our joint venture partners to fund their share of operations and development activities; the financing and distribution decisions of joint ventures we do not control; our ability to successfully implement our sustainable energy strategy and principles and to achieve our ESG plans and goals within the expected timeframes if at all; changes in government incentives for emission-reduction products and technologies; the outcome of research and development efforts to create future technologies necessary to achieve our ESG plans and goals; our ability to scale projects and technologies on a commercially competitive basis; changes in regional and global economic growth rates and consumer preferences, including consumer support for emission-reduction products and technology; industrial incidents or other unscheduled shutdowns affecting our refineries, machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the imposition of windfall profit taxes, maximum refining margin penalties or minimum inventory requirements on companies operating within the energy industry in California or other jurisdictions; the impact of adverse market conditions or other similar risks to those identified herein affecting MPLX; and the factors set forth under the heading “Risk Factors” and “Disclosures Regarding Forward-Looking Statements” in MPC’s and MPLX’s Annual Reports on Form 10-K for the year ended Dec. 31, 2023, and in other filings with the SEC. Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.
Copies of MPC’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC’s website, MPC’s website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC’s Investor Relations office. Copies of MPLX’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC’s website, MPLX’s website at http://ir.mplx.com or by contacting MPLX’s Investor Relations office.
Consolidated Statements of Income (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions, except per-share data) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Revenues and other income: |
|||||||||||
|
Sales and other operating revenues |
$ |
35,107 |
$ |
40,917 |
$ |
105,727 |
$ |
112,124 |
|||
|
Income from equity method investments |
219 |
215 |
796 |
547 |
|||||||
|
Net gain (loss) on disposal of assets |
(2) |
110 |
17 |
126 |
|||||||
|
Other income |
49 |
341 |
406 |
687 |
|||||||
|
Total revenues and other income |
35,373 |
41,583 |
106,946 |
113,484 |
|||||||
|
Costs and expenses: |
|||||||||||
|
Cost of revenues (excludes items below) |
32,144 |
34,928 |
95,682 |
95,984 |
|||||||
|
Depreciation and amortization |
846 |
845 |
2,511 |
2,479 |
|||||||
|
Selling, general and administrative expenses |
815 |
824 |
2,417 |
2,219 |
|||||||
|
Other taxes |
219 |
233 |
681 |
683 |
|||||||
|
Total costs and expenses |
34,024 |
36,830 |
101,291 |
101,365 |
|||||||
|
Income from operations |
1,349 |
4,753 |
5,655 |
12,119 |
|||||||
|
Net interest and other financial costs |
221 |
118 |
594 |
414 |
|||||||
|
Income before income taxes |
1,128 |
4,635 |
5,061 |
11,705 |
|||||||
|
Provision for income taxes |
113 |
1,004 |
779 |
2,410 |
|||||||
|
Net income |
1,015 |
3,631 |
4,282 |
9,295 |
|||||||
|
Less net income attributable to: |
|||||||||||
|
Redeemable noncontrolling interest |
6 |
25 |
21 |
71 |
|||||||
|
Noncontrolling interests |
387 |
326 |
1,187 |
994 |
|||||||
|
Net income attributable to MPC |
$ |
622 |
$ |
3,280 |
$ |
3,074 |
$ |
8,230 |
|||
|
Per share data |
|||||||||||
|
Basic: |
|||||||||||
|
Net income attributable to MPC per share |
$ |
1.88 |
$ |
8.31 |
$ |
8.85 |
$ |
19.66 |
|||
|
Weighted average shares outstanding (in millions) |
331 |
394 |
347 |
418 |
|||||||
|
Diluted: |
|||||||||||
|
Net income attributable to MPC per share |
$ |
1.87 |
$ |
8.28 |
$ |
8.83 |
$ |
19.57 |
|||
|
Weighted average shares outstanding (in millions) |
332 |
396 |
348 |
420 |
|||||||
Income Summary (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Refining & Marketing |
$ |
298 |
$ |
3,757 |
$ |
2,383 |
$ |
9,076 |
|||
|
Midstream |
1,275 |
1,136 |
3,796 |
3,550 |
|||||||
|
Corporate |
(224) |
(246) |
(675) |
(613) |
|||||||
|
Income from operations before items not allocated to |
1,349 |
4,647 |
5,504 |
12,013 |
|||||||
|
Items not allocated to segments: |
|||||||||||
|
Gain on sale of assets |
— |
106 |
151 |
106 |
|||||||
|
Income from operations |
$ |
1,349 |
$ |
4,753 |
$ |
5,655 |
$ |
12,119 |
|||
Capital Expenditures and Investments (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Refining & Marketing |
$ |
372 |
$ |
255 |
$ |
967 |
$ |
919 |
|||
|
Midstream(a) |
557 |
234 |
1,125 |
748 |
|||||||
|
Corporate(b) |
21 |
33 |
63 |
107 |
|||||||
|
Total |
$ |
950 |
$ |
522 |
$ |
2,155 |
$ |
1,774 |
|||
|
(a) |
The three and nine months ended September 30, 2024 include $228 million related to acquisitions of additional interests in BANGL, LLC and Wink to Webster Pipeline LLC. |
|
(b) |
Includes capitalized interest of $14 million, $9 million, $38 million and $43 million for the third quarter 2024, the third quarter 2023, the first nine months of 2024 and the first nine months of 2023, respectively. |
Refining & Marketing Operating Statistics (unaudited)
|
Dollar per Barrel of Net Refinery Throughput |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Refining & Marketing margin(a) |
$ |
14.35 |
$ |
26.16 |
$ |
16.82 |
$ |
24.80 |
|||
|
Less: |
|||||||||||
|
Refining operating costs(b) |
5.30 |
5.14 |
5.44 |
5.32 |
|||||||
|
Distribution costs(c) |
5.41 |
5.44 |
5.58 |
5.29 |
|||||||
|
Other (income) loss(d) |
(0.18) |
(0.48) |
(0.35) |
(0.16) |
|||||||
|
Refining & Marketing segment adjusted EBITDA |
3.82 |
16.06 |
6.15 |
14.35 |
|||||||
|
Less: |
|||||||||||
|
Refining planned turnaround costs |
1.05 |
0.56 |
1.41 |
1.14 |
|||||||
|
Depreciation and amortization |
1.69 |
1.70 |
1.75 |
1.78 |
|||||||
|
Refining & Marketing income from operations |
$ |
1.08 |
$ |
13.80 |
$ |
2.99 |
$ |
11.43 |
|||
|
Fees paid to MPLX included in distribution costs above |
$ |
3.65 |
$ |
3.58 |
$ |
3.72 |
$ |
3.60 |
|||
|
(a) |
Sales revenue less cost of refinery inputs and purchased products, divided by net refinery throughput. |
|
(b) |
Excludes refining planned turnaround and depreciation and amortization expense. |
|
(c) |
Excludes depreciation and amortization expense. |
|
(d) |
Includes income or loss from equity method investments, net gain or loss on disposal of assets and other income or loss. |
|
Refining & Marketing – Supplemental Operating Data |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Refining & Marketing refined product sales volume (mbpd)(a) |
3,685 |
3,596 |
3,568 |
3,510 |
|||||||
|
Crude oil refining capacity (mbpcd)(b) |
2,950 |
2,936 |
2,950 |
2,911 |
|||||||
|
Crude oil capacity utilization (percent)(b) |
94 |
94 |
91 |
92 |
|||||||
|
Refinery throughputs (mbpd): |
|||||||||||
|
Crude oil refined |
2,776 |
2,773 |
2,690 |
2,680 |
|||||||
|
Other charge and blendstocks |
215 |
186 |
217 |
228 |
|||||||
|
Net refinery throughputs |
2,991 |
2,959 |
2,907 |
2,908 |
|||||||
|
Sour crude oil throughput (percent) |
42 |
46 |
44 |
44 |
|||||||
|
Sweet crude oil throughput (percent) |
58 |
54 |
56 |
56 |
|||||||
|
Refined product yields (mbpd): |
|||||||||||
|
Gasoline |
1,494 |
1,511 |
1,464 |
1,506 |
|||||||
|
Distillates |
1,111 |
1,061 |
1,066 |
1,040 |
|||||||
|
Propane |
68 |
65 |
66 |
66 |
|||||||
|
NGLs and petrochemicals |
212 |
202 |
205 |
196 |
|||||||
|
Heavy fuel oil |
63 |
74 |
59 |
55 |
|||||||
|
Asphalt |
83 |
87 |
82 |
84 |
|||||||
|
Total |
3,031 |
3,000 |
2,942 |
2,947 |
|||||||
|
Inter-region refinery transfers excluded from throughput and yields above (mbpd) |
87 |
80 |
83 |
56 |
|||||||
|
(a) |
Includes intersegment sales. |
|
(b) |
Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. |
Refining & Marketing – Supplemental Operating Data by Region (unaudited)
The per barrel for Refining & Marketing margin is calculated based on net refinery throughput (excludes inter-refinery transfer volumes). The per barrel for the refining operating costs, refining planned turnaround costs and refining depreciation and amortization for the regions, as shown in the tables below, is calculated based on the gross refinery throughput (includes inter-refinery transfer volumes).
Refining operating costs exclude refining planned turnaround costs and refining depreciation and amortization expense.
|
Gulf Coast Region |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Dollar per barrel of refinery throughput: |
|||||||||||
|
Refining & Marketing margin |
$ |
13.66 |
$ |
22.30 |
$ |
16.01 |
$ |
22.34 |
|||
|
Refining operating costs |
3.96 |
4.16 |
4.18 |
4.05 |
|||||||
|
Refining planned turnaround costs |
0.67 |
0.86 |
1.41 |
1.20 |
|||||||
|
Refining depreciation and amortization |
1.39 |
1.30 |
1.43 |
1.39 |
|||||||
|
Refinery throughputs (mbpd): |
|||||||||||
|
Crude oil refined |
1,108 |
1,104 |
1,094 |
1,064 |
|||||||
|
Other charge and blendstocks |
194 |
162 |
179 |
181 |
|||||||
|
Gross refinery throughputs |
1,302 |
1,266 |
1,273 |
1,245 |
|||||||
|
Sour crude oil throughput (percent) |
55 |
59 |
56 |
52 |
|||||||
|
Sweet crude oil throughput (percent) |
45 |
41 |
44 |
48 |
|||||||
|
Refined product yields (mbpd): |
|||||||||||
|
Gasoline |
607 |
627 |
605 |
637 |
|||||||
|
Distillates |
484 |
434 |
465 |
435 |
|||||||
|
Propane |
38 |
36 |
37 |
37 |
|||||||
|
NGLs and petrochemicals |
127 |
117 |
126 |
115 |
|||||||
|
Heavy fuel oil |
60 |
66 |
52 |
34 |
|||||||
|
Asphalt |
17 |
17 |
16 |
18 |
|||||||
|
Total |
1,333 |
1,297 |
1,301 |
1,276 |
|||||||
|
Inter-region refinery transfers included in throughput and |
66 |
55 |
53 |
33 |
|||||||
|
Mid-Continent Region |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Dollar per barrel of refinery throughput: |
|||||||||||
|
Refining & Marketing margin |
$ |
15.67 |
$ |
25.38 |
$ |
17.29 |
$ |
25.37 |
|||
|
Refining operating costs |
5.36 |
4.74 |
5.22 |
5.06 |
|||||||
|
Refining planned turnaround costs |
1.80 |
0.26 |
1.37 |
0.82 |
|||||||
|
Refining depreciation and amortization |
1.49 |
1.48 |
1.53 |
1.53 |
|||||||
|
Refinery throughputs (mbpd): |
|||||||||||
|
Crude oil refined |
1,129 |
1,149 |
1,106 |
1,124 |
|||||||
|
Other charge and blendstocks |
74 |
73 |
77 |
70 |
|||||||
|
Gross refinery throughputs |
1,203 |
1,222 |
1,183 |
1,194 |
|||||||
|
Sour crude oil throughput (percent) |
22 |
25 |
25 |
26 |
|||||||
|
Sweet crude oil throughput (percent) |
78 |
75 |
75 |
74 |
|||||||
|
Refined product yields (mbpd): |
|||||||||||
|
Gasoline |
624 |
629 |
617 |
619 |
|||||||
|
Distillates |
429 |
439 |
419 |
428 |
|||||||
|
Propane |
21 |
20 |
20 |
20 |
|||||||
|
NGLs and petrochemicals |
53 |
55 |
50 |
51 |
|||||||
|
Heavy fuel oil |
13 |
13 |
14 |
13 |
|||||||
|
Asphalt |
65 |
69 |
65 |
66 |
|||||||
|
Total |
1,205 |
1,225 |
1,185 |
1,197 |
|||||||
|
Inter-region refinery transfers included in throughput and |
7 |
9 |
10 |
8 |
|||||||
|
West Coast Region |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Dollar per barrel of refinery throughput: |
|||||||||||
|
Refining & Marketing margin |
$ |
13.07 |
$ |
36.65 |
$ |
17.67 |
$ |
29.31 |
|||
|
Refining operating costs |
7.38 |
7.56 |
8.07 |
8.35 |
|||||||
|
Refining planned turnaround costs |
0.20 |
0.45 |
1.25 |
1.59 |
|||||||
|
Refining depreciation and amortization |
1.27 |
1.27 |
1.36 |
1.37 |
|||||||
|
Refinery throughputs (mbpd): |
|||||||||||
|
Crude oil refined |
539 |
520 |
490 |
492 |
|||||||
|
Other charge and blendstocks |
34 |
31 |
44 |
33 |
|||||||
|
Gross refinery throughputs |
573 |
551 |
534 |
525 |
|||||||
|
Sour crude oil throughput (percent) |
59 |
63 |
62 |
69 |
|||||||
|
Sweet crude oil throughput (percent) |
41 |
37 |
38 |
31 |
|||||||
|
Refined product yields (mbpd): |
|||||||||||
|
Gasoline |
287 |
287 |
270 |
273 |
|||||||
|
Distillates |
218 |
192 |
196 |
182 |
|||||||
|
Propane |
9 |
9 |
9 |
9 |
|||||||
|
NGLs and petrochemicals |
37 |
36 |
34 |
37 |
|||||||
|
Heavy fuel oil |
28 |
33 |
29 |
29 |
|||||||
|
Asphalt |
1 |
1 |
1 |
— |
|||||||
|
Total |
580 |
558 |
539 |
530 |
|||||||
|
Inter-region refinery transfers included in throughput and |
14 |
16 |
20 |
15 |
|||||||
Midstream Operating Statistics (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Pipeline throughputs (mbpd)(a) |
6,036 |
5,980 |
5,852 |
5,904 |
|||||||
|
Terminal throughputs (mbpd) |
3,268 |
3,228 |
3,132 |
3,167 |
|||||||
|
Gathering system throughputs (million cubic feet per day)(b) |
6,737 |
6,257 |
6,527 |
6,258 |
|||||||
|
Natural gas processed (million cubic feet per day)(b) |
9,775 |
8,961 |
9,572 |
8,835 |
|||||||
|
C2 (ethane) + NGLs fractionated (mbpd)(b) |
635 |
613 |
644 |
596 |
|||||||
|
(a) |
Includes common-carrier pipelines and private pipelines contributed to MPLX. Excludes equity method affiliate pipeline volumes. |
|
(b) |
Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments. |
Select Financial Data (unaudited)
|
September 30, |
June 30, |
||||
|
(in millions of dollars) |
|||||
|
Cash and cash equivalents |
$ |
4,002 |
$ |
4,441 |
|
|
Short-term investments |
1,141 |
4,058 |
|||
|
Total consolidated debt(a) |
28,220 |
28,937 |
|||
|
MPC debt |
6,134 |
6,865 |
|||
|
MPLX debt |
22,086 |
22,072 |
|||
|
Redeemable noncontrolling interest |
203 |
202 |
|||
|
Equity |
25,509 |
27,886 |
|||
|
(in millions) |
|||||
|
Shares outstanding |
325 |
341 |
|||
|
(a) |
Net of unamortized debt issuance costs and unamortized premium/discount, net. |
Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our operating performance that are calculated and presented on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures we use are as follows:
Adjusted Net Income Attributable to MPC and Adjusted Diluted Income Per Share
Adjusted net income attributable to MPC is defined as net income attributable to MPC excluding the items in the table below, along with their related income tax effect. We have excluded these items because we believe that they are not indicative of our core operating performance. Adjusted diluted income per share is defined as adjusted net income attributable to MPC divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.
We believe the use of adjusted net income attributable to MPC and adjusted diluted income per share provides us and our investors with important measures of our ongoing financial performance to better assess our underlying business results and trends. Adjusted net income attributable to MPC or adjusted diluted income per share should not be considered as a substitute for, or superior to net income attributable to MPC, diluted net income per share or any other measure of financial performance presented in accordance with GAAP. Adjusted net income attributable to MPC and adjusted diluted income per share may not be comparable to similarly titled measures reported by other companies.
Reconciliation of Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Net income attributable to MPC |
$ |
622 |
$ |
3,280 |
$ |
3,074 |
$ |
8,230 |
|||
|
Pre-tax adjustments: |
|||||||||||
|
Garyville incident response costs |
— |
63 |
— |
63 |
|||||||
|
Gain on sale of assets |
— |
(106) |
(151) |
(106) |
|||||||
|
Tax impact of adjustments(a) |
— |
9 |
23 |
9 |
|||||||
|
Non-controlling interest impact of adjustments |
— |
(22) |
55 |
(22) |
|||||||
|
Adjusted net income attributable to MPC |
$ |
622 |
$ |
3,224 |
$ |
3,001 |
$ |
8,174 |
|||
|
Diluted income per share |
$ |
1.87 |
$ |
8.28 |
$ |
8.83 |
$ |
19.57 |
|||
|
Adjusted diluted income per share |
$ |
1.87 |
$ |
8.14 |
$ |
8.62 |
$ |
19.44 |
|||
|
Weighted average diluted shares outstanding |
332 |
396 |
348 |
420 |
|||||||
|
(a) |
Income taxes for the three and nine months ended September 30, 2024 were calculated by applying a federal statutory rate and a blended state tax rate to the pre-tax adjustments after non-controlling interest. The corresponding adjustments to reported income taxes are shown in the table above. |
Adjusted EBITDA
Amounts included in net income (loss) attributable to MPC and excluded from adjusted EBITDA include (i) net interest and other financial costs; (ii) provision/benefit for income taxes; (iii) noncontrolling interests; (iv) depreciation and amortization; (v) refining planned turnaround costs and (vi) other adjustments as deemed necessary, as shown in the table below. We believe excluding turnaround costs from this metric is useful for comparability to other companies as certain of our competitors defer these costs and amortize them between turnarounds.
Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. Adjusted EBITDA should not be considered as a substitute for, or superior to income (loss) from operations, net income attributable to MPC, income before income taxes, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Reconciliation of Net Income Attributable to MPC to Adjusted EBITDA (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Net income attributable to MPC |
$ |
622 |
$ |
3,280 |
$ |
3,074 |
$ |
8,230 |
|||
|
Net income attributable to noncontrolling interests |
393 |
351 |
1,208 |
1,065 |
|||||||
|
Provision for income taxes |
113 |
1,004 |
779 |
2,410 |
|||||||
|
Net interest and other financial costs |
221 |
118 |
594 |
414 |
|||||||
|
Depreciation and amortization |
846 |
845 |
2,511 |
2,479 |
|||||||
|
Refining planned turnaround costs |
290 |
153 |
1,121 |
902 |
|||||||
|
Garyville incident response costs |
— |
63 |
— |
63 |
|||||||
|
Gain on sale of assets |
— |
(106) |
(151) |
(106) |
|||||||
|
Adjusted EBITDA |
$ |
2,485 |
$ |
5,708 |
$ |
9,136 |
$ |
15,457 |
|||
Refining & Marketing Margin
Refining & Marketing margin is defined as sales revenue less cost of refinery inputs and purchased products. We use and believe our investors use this non-GAAP financial measure to evaluate our Refining & Marketing segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins. This measure should not be considered a substitute for, or superior to, Refining & Marketing gross margin or other measures of financial performance prepared in accordance with GAAP, and our calculation thereof may not be comparable to similarly titled measures reported by other companies.
Reconciliation of Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Gross Margin and Refining & Marketing Margin (unaudited)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
(In millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Refining & Marketing segment adjusted EBITDA |
$ |
1,053 |
$ |
4,373 |
$ |
4,899 |
$ |
11,389 |
|||
|
Plus (Less): |
|||||||||||
|
Depreciation and amortization |
(465) |
(463) |
(1,395) |
(1,411) |
|||||||
|
Refining planned turnaround costs |
(290) |
(153) |
(1,121) |
(902) |
|||||||
|
Selling, general and administrative expenses |
651 |
658 |
1,950 |
1,846 |
|||||||
|
Income from equity method investments |
(43) |
(24) |
(85) |
(5) |
|||||||
|
Net (gain) loss on disposal of assets |
1 |
(1) |
1 |
(4) |
|||||||
|
Other income |
(16) |
(313) |
(309) |
(605) |
|||||||
|
Refining & Marketing gross margin |
891 |
4,077 |
3,940 |
10,308 |
|||||||
|
Plus (Less): |
|||||||||||
|
Operating expenses (excluding depreciation and amortization) |
2,809 |
2,608 |
8,590 |
8,101 |
|||||||
|
Depreciation and amortization |
465 |
463 |
1,395 |
1,411 |
|||||||
|
Gross margin excluded from and other income included |
(143) |
51 |
(322) |
79 |
|||||||
|
Other taxes included in Refining & Marketing margin |
(73) |
(77) |
(205) |
(217) |
|||||||
|
Refining & Marketing margin |
$ |
3,949 |
$ |
7,122 |
$ |
13,398 |
$ |
19,682 |
|||
|
Refining & Marketing margin by region: |
|||||||||||
|
Gulf Coast |
$ |
1,554 |
$ |
2,483 |
$ |
5,356 |
$ |
7,393 |
|||
|
Mid-Continent |
1,724 |
2,834 |
5,555 |
8,213 |
|||||||
|
West Coast |
671 |
1,805 |
2,487 |
4,076 |
|||||||
|
Refining & Marketing margin |
$ |
3,949 |
$ |
7,122 |
$ |
13,398 |
$ |
19,682 |
|||
|
(a) |
Reflects the gross margin, excluding depreciation and amortization, of other related operations included in the Refining & Marketing segment and processing of credit card transactions on behalf of certain of our marketing customers, net of other income. |
View original content:https://www.prnewswire.com/news-releases/marathon-petroleum-corp-reports-third-quarter-2024-results-302296417.html
SOURCE Marathon Petroleum Corporation
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
On US Election Day, Asia Mostly In Green, Europe Mixed, Dollar Softens – Global Markets Today While US Slept
On Monday, November 4th, U.S. markets closed lower after a volatile session as investors braced for a pivotal week with the U.S. presidential election and the Federal Reserve’s policy announcement. A poll showing Kamala Harris leading in Iowa impacted “Trump trades,” adding market uncertainty amid expectations of delayed election results.
Economic data showed that U.S. factory orders dropped by 0.5% in September, reaching $584.2 billion, following a revised 0.8% decrease in August.
Most S&P 500 sectors closed lower, led by losses in utilities, communication services, and financials, while energy and real estate stocks rose.
The Dow Jones Industrial Average dipped 0.61% to close at 41,794.60, the S&P 500 fell 0.28% to 5,712.69, and the Nasdaq Composite declined 0.33% to finish at 18,179.98.
Asia Markets Today
- On Tuesday, Japan’s Nikkei 225 gained 1.42% and ended the session at 38,595.50, led by gains in the Glass, Transportation Equipment, and Banking sectors.
- Australia’s S&P/ASX 200 declined 0.40% and ended the day at 8,131.80, led by losses in the Gold, Utilities, and Financial sectors.
- India’s Nifty 50 traded higher by 0.85% at 24,199.05, and Nifty 500 was up 0.63% at 22,661.00, led by gains in the Metals, Banking, and Oil & Gas sectors shares.
- China’s Shanghai Composite rose 2.32% to close at 3,386.99, and the Shenzhen CSI 300 gained 2.53%, finishing the day at 4,044.57.
- Hong Kong’s Hang Seng climbed 2.14% and closed the session at 21,006.97.
Eurozone at 05.30 AM ET
- The European STOXX 50 index was up 0.05%.
- Germany’s DAX declined 0.01%.
- France’s CAC rose 0.04%.
- U.K.’sU.K.’s FTSE 100 index traded higher by 0.25%.
Commodities at 05.30 AM ET
- Crude Oil WTI was trading higher by 0.35% at $71.73/bbl, and Brent was up 0.36% at $75.33/bbl.
- Oil prices stayed within a narrow range as markets awaited the U.S. presidential election, following a 2% rise after OPEC+ delayed a planned December production increase.
- Natural Gas declined 0.36% to $2.771.
- Gold was trading higher by 0.10% at $2,748.80, Silver gained 0.48% to $32.767, and Copper rose 0.85% to $4.4688.
U.S. Futures at 05.30 AM ET
Dow futures were up 0.13%, S&P 500 futures gained 0.17%, and Nasdaq 100 Futures rose 0.27%.
Forex at 05.30 AM ET
- The U.S. dollar index fell 0.12% to 103.77, the USD/JPY was up 0.05% to 152.20, and the USD/AUD declined 0.49% to 1.5110.
- The dollar softened as election volatility spiked while traders awaited the Fed’s rate decision.
Photo by Pavel Bobrovskiy via Shutterstock
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Insights into Boyd Gaming Q3 Earnings
The Q3 earnings report for Boyd Gaming BYD was released on Thursday, October 24, 2024 at 04:05 PM.
Here’s what investors need to know about the latest announcement.
Earnings
Boyd Gaming beat estimated earnings by 10.0%, reporting an EPS of $1.52 versus an estimate of $1.38.
Revenue was up $58.08 million from the same period last year.
Analysis of Past Earnings
The company beat on EPS by $0.09 in the previous quarter, leading to a 4.0% increase share price change the next day.
Here’s a look at Boyd Gaming’s past performance:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| EPS Estimate | 1.38 | 1.49 | 1.57 | 1.47 | 1.47 |
| EPS Actual | 1.52 | 1.58 | 1.51 | 1.66 | 1.36 |
| Revenue Estimate | 912.95M | 909.06M | 958.74M | 930.47M | 879.82M |
| Revenue Actual | 961.25M | 967.51M | 960.52M | 954.41M | 903.16M |
Comparison of Competitors’ Recent Earnings
As we analyze Boyd Gaming’s earnings, it’s important to contextualize its numbers by examining how it fares against its industry rivals, such as PENN Entertainment, Golden Entertainment, and Inspired Entertainment.
- PENN Entertainment’s earnings announcement on August 08, 2024 exceeded expectations, with an actual EPS of $-0.18 compared to the market’s projected EPS of $-0.26, resulting in a 30.77% increase.
- Despite market projections of an EPS of $0.21, Golden Entertainment’s earnings on August 08, 2024 fell short with an actual EPS of $0.02, representing a -90.48% decrease from expectations.
- The latest earnings announcement from Inspired Entertainment on August 08, 2024 exceeded expectations, with an actual EPS of $0.2 compared to the market’s estimate of $0.1, resulting in a 100.0% increase.
Quarterly Analysis: Competitors’ Earnings and Stock Performance
Insights into the market’s response to the latest earnings releases of key competitors are provided in this analysis. It highlights the expected and announced earnings per share (EPS) for each company, along with their corresponding stock prices at the close of the announcement day and the open of the following trading day.
| Company Name | Date | EPS Expected | EPS Announced | EPS Change Percent | Stock Price At Close | Stock Price at Next Day Open | Price Change Percent |
|---|---|---|---|---|---|---|---|
| Boyd Gaming | October 24, 2024 | 1.38 | 1.52 | 10.14% | $64.31 | $69.96 | 8.79% |
| PENN Entertainment | August 08, 2024 | -0.26 | -0.18 | 30.77% | $18.72 | $18.83 | 0.59% |
| Golden Entertainment | August 08, 2024 | 0.21 | 0.02 | -90.48% | $28.12 | $27.42 | -2.49% |
| Inspired Entertainment | August 08, 2024 | 0.10 | 0.20 | 100.0% | $8.48 | $8.39 | -1.06% |
Analyzing Peer Revenue Discrepancy: Estimated vs. Announced
The following table compares estimated and announced revenue figures for Boyd Gaming’s peers. This comparison provides insights into the revenue performance of these companies, offering valuable context to understand their financial standing within the industry.
| Company Name | Estimated Revenue | Announced Revenue | Revenue Surprise Percentage |
|---|---|---|---|
| Boyd Gaming | 912.95M | 961.25M | 5.29% |
| PENN Entertainment | 1.66B | 1.66B | 0.18% |
| Golden Entertainment | 174.60M | 167.33M | -4.16% |
| Inspired Entertainment | 74.41M | 75.60M | 1.6% |
To track all earnings releases for Boyd Gaming visit their earnings calendar here.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trump Media (DJT) Stock Rises Over 6% In Pre-Market Ahead Of Presidential Election Eve
As the United States approaches the election, Trump Media & Technology Group Corp DJT has seen a notable 5.15% increase in pre-market trading on Tuesday, as per Benzinga Pro. This surge comes as traders perceive the company’s stock as a potential indicator of Donald Trump’s reelection chances.
What Happened: The recent uptick in Trump Media & Technology Group’s stock is linked to the upcoming U.S. elections. On Monday, DJT closed 12.37% higher at $34.34.
Traders are treating Trump’s stock as a gauge for his reelection prospects. If Trump wins, his platform, Truth Social, is expected to play a significant role in his communication strategy, akin to his use of X during his presidency, according to CNBC. However, if Vice President Kamala Harris wins, the future of Truth Social could face challenges.
This development is occurring as the nation gears up for a pivotal election, with market participants closely watching political dynamics. The performance of Trump Media & Technology Group’s stock reflects broader sentiments regarding the election’s potential outcomes and their implications for Trump’s media ventures.
Why It Matters: The election race between Trump and Harris has tightened, with recent polls showing Harris maintaining a slight lead over Trump. However, her lead has been shrinking, indicating a closely contested election. This uncertainty adds to the volatility surrounding Trump Media & Technology Group’s stock.
Additionally, options activity for Trump Media & Technology has seen significant movement, with deep-pocketed investors showing a divided sentiment. While 36% of these investors are bullish, 48% are bearish, indicating mixed expectations about the company’s future.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Onity Group Announces Third Quarter 2024 Results
- Net income of $21 million and diluted EPS of $2.65; return on equity of 19%
- Adjusted pre-tax income of $35 million, resulting in adjusted pre-tax return on equity of 31%
- Executed several transactions to facilitate corporate debt refinancing, resulting in a debt-to-equity ratio of 2.9x as of September 30, 2024, compared to 3.9x in fourth quarter 2023
- $18 billion in total servicing additions ($8 billion in subservicing additions)
- Book value per share improved to $59.50 as of September 30, 2024
WEST PALM BEACH, Fla., Nov. 05, 2024 (GLOBE NEWSWIRE) — Onity Group Inc. ONIT (“Onity” or the “Company”), a leading non-bank mortgage servicer and originator, today announced its third quarter 2024 results and provided a business update.
The Company reported GAAP net income of $21 million for the third quarter with an adjusted pre-tax income of $35 million (see “Note Regarding Non-GAAP Financial Measures” below).
“The Onity platform continued to deliver strong results in the third quarter marked by the highest quarterly adjusted pre-tax income and return on equity in the past three years,” said Onity Group Chair, President and CEO Glen Messina. “The execution of our strategy and financial objectives is driving growth in volume across all originations channels, strong subservicing additions, and significant improvement in our debt-to-equity ratio, which is expected to support future income and cash flow. Through our industry-leading breadth of capabilities, we executed multiple transactions that successfully positioned us to reduce and refinance our corporate debt at lower all-in cost. With our powerful operating performance, underpinned by a balanced business and effective hedging, we are well positioned to capture substantial upside in share price performance.”
Additional Third Quarter 2024 Operating and Business Highlights
- Successfully priced $500 million of senior notes due 2029, expected to close into escrow on November 6, 2024, with proceeds released from escrow upon closing of the sale of our 15% interest in MSR Asset Vehicle LLC (MAV) and used to retire higher cost Onity debt and replace PMC high yield debt, thereby reducing interest expense and improving income by approximately $14 million annually
- Originations volume of $8.5 billion, up 23% compared to the second quarter 2024, demonstrating MSR replenishment capability
- Increased funded recapture volume by 52% compared to the second quarter 2024
- Reduced MSR and Corporate debt by $182 million in 2024 year to date
- Total liquidity improved to $299 million as of September 30, 2024
- Impact of our MSR hedging strategy resulted in a net gain of $10 million
Webcast and Conference Call
Onity will hold a conference call on Tuesday, November 5, 2024, at 8:30 a.m. (ET) to review the Company’s third quarter 2024 operating results and to provide a business update. A live audio webcast and slide presentation for the call will be available by visiting the Shareholder Relations page at onitygroup.com. Participants can access the conference call by dialing (800) 343-5172 or (203) 518-9856 approximately 10 minutes prior to the call; please reference the conference ID “Onity.” A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call’s completion through November 19, 2024 by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11157248.
About Onity Group
Onity Group Inc. ONIT is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan”, “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding the expected closing into escrow of our notes offering, the expected closing of the sale of our ownership interest in MAV, the expected use of proceeds from our notes offering to redeem our senior corporate notes and anticipated reduction in interest expense and any upside in share price performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the timing for receipt of final regulatory approval to consummate the sale of our ownership interest in MAV; the date on which we will break escrow following the closing of our senior corporate debt refinancing, receive the proceeds of the refinancing, and redeem our senior corporate notes, all of which are conditioned on the closing of the MAV sale described above; the future of our ownership position in MAV and the extent to which MAV will continue to generate a favorable return on our investment in the event we do not consummate the MAV sale; the potential for ongoing disruption in the financial markets and in commercial activity generally as a result of U.S. and global political events, changes in monetary and fiscal policy, and other sources of instability; the impacts of inflation, employment disruption, and other financial difficulties facing our borrowers; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, future draws on existing reverse loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them; our ability to interpret correctly and comply with current or future liquidity, net worth and other financial and other requirements of regulators, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), and the Government National Mortgage Association (Ginnie Mae), including our ability to implement a cost-effective response to Ginnie Mae’s risk-based capital requirements by the extended deadline granted to us by Ginnie Mae of May 1, 2025; our ability to timely reduce operating costs, or generate offsetting revenue, in proportion to the industry-wide decrease in originations activity; the impact of cost-reduction initiatives on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity’s, our contractual counterparties’, or our vendors’ information technology or other security systems or privacy protections, including any failure to protect customers’ data, resulting in disruption to our operations, loss of income, reputational damage, costly litigation and regulatory penalties; our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations; the future of our long-term relationship with Rithm Capital Corp. (Rithm); our ability to close acquisitions of MSRs and other transactions, including the ability to obtain regulatory approvals; our ability to grow our reverse servicing business; our ability to retain clients and employees of acquired businesses, and the extent to which acquisitions and our other strategic initiatives will contribute to achieving our growth objectives; increased servicing costs based on increased borrower delinquency levels or other factors; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our servicing, foreclosure, modification, origination and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD); the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae, to our regulatory engagements and litigation matters; increased regulatory scrutiny and media attention; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to comply with our servicing agreements, including our ability to comply with the requirements of the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them; our ability to fund future draws on existing loans in our reverse mortgage portfolio; our servicer and credit ratings as well as other actions from various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2023. Anyone wishing to understand Onity’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
Note Regarding Non-GAAP Financial Measures
This press release contains references to adjusted pre-tax income (loss) and adjusted pre-tax return on equity, non-GAAP financial measures.
We believe these non-GAAP financial measure provides a useful supplement to discussions and analysis of our financial condition, because they are measures that management uses to assess the financial performance of our operations and allocate resources. In addition, management believes that this presentation may assist investors with understanding and evaluating our initiatives to drive improved financial performance. Management believes, specifically, that the removal of fair value changes of our net MSR exposure due to changes in market interest rates and assumptions provides a useful, supplemental financial measure as it enables an assessment of our ability to generate earnings regardless of market conditions and the trends in our underlying businesses by removing the impact of fair value changes due to market interest rates and assumptions, which can vary significantly between periods. However, these measures should not be analyzed in isolation or as a substitute to analysis of our GAAP pre-tax income (loss) or GAAP pre-tax return on equity nor a substitute for cash flows from operations. There are certain limitations to the analytical usefulness of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax return on equity and, accordingly, we use these adjustments only for purposes of supplemental analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Onity’s reported results under accounting principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Readers are cautioned not to place undue reliance on analysis of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax return on equity.
Notables
In the table below, we adjust GAAP pre-tax income for the following factors: MSR valuation adjustments, expense notables, and other income statement notables. MSR valuation adjustments are comprised of changes to Forward MSR and Reverse mortgage valuations due to rates and assumption changes. Expense notables include significant legal and regulatory settlement expenses, severance and retention costs, LTIP stock price changes, consolidation of office facilities and other expenses (such as costs associated with strategic transactions). Other income statement notables include non-routine transactions that are not categorized in the above.
| (Dollars in millions) | Q3’24 | Q2’24 | |
| I | Reported Net Income | 21 | 11 |
| A. Income Tax Benefit (Expense) | (6) | (3) | |
| II | Reported Pre-Tax Income [I – A] | 28 | 14 |
| Forward MSR Valuation Adjustments due to rates and assumption changes, net (a)(b)(c) | (1) | (13) | |
| Reverse Mortgage Fair Value Change due to rates and assumption changes (b)(d) | 6 | (3) | |
| III | Total MSR Valuation Adjustments due to rates and assumption changes, net | 4 | (16) |
| Significant legal and regulatory settlement expenses | (6) | 2 | |
| Severance and retention (e) | (0) | (1) | |
| LTIP stock price changes (f) | (1) | 1 | |
| Office facilities consolidation | (0) | 0 | |
| Other expense notables (g) | 0 | (1) | |
| B. Total Expense Notables | (7) | 1 | |
| C. Other Income Statement Notables (h) | (5) | (3) | |
| IV | Total Other Notables [B + C] | (12) | (2) |
| V | Total Notables (i) [III + IV] | (8) | (18) |
| VI | Adjusted Pre-Tax Income [II – V] | 35 | 32 |
| a) | MSR Valuation Adjustments that are due to changes in market interest rates, valuation inputs or other assumptions, net of overall fair value gains / (losses) on MSR hedge, including FV changes of Pledged MSR liabilities associated with MSR transferred to MAV, Rithm and others and ESS financing liabilities that are due to changes in market interest rates, valuation inputs or other assumptions, a component of MSR valuation adjustment, net | |
| b) | The changes in fair value due to market interest rates were measured by isolating the impact of market interest rate changes on the valuation model output as provided by our third-party valuation expert | |
| c) | Beginning with the three months ended March 31, 2023, for purposes of calculating Income Statement Notables and Adjusted Pre-Tax Income (Loss), we changed the methodology used to calculate MSR Valuation Adjustments due to rates and assumption changes to exclude actual-to-model variances of realization of cash flows, or runoff; the presentation of past periods has been conformed to the current presentation; if we had used the methodology employed prior to Q1’23, Forward MSR Valuation Adjustments due to rates and assumption changes, net would have been $2M for Q2’24, and $4M for Q3’24; Adj PTI (Loss) would have been $17M for Q2’24, $30M for Q3’24; see section titled “Note Regarding Non-GAAP Financial Measures” for more information | |
| d) | FV changes of loans HFI and HMBS related borrowings due to market interest rates and assumptions, a component of gain on reverse loans held for investment and HMBS-related borrowings, net | |
| e) | Severance and retention due to organizational rightsizing or reorganization | |
| f) | Long-term incentive program (LTIP) compensation expense changes attributable to stock price changes during the period | |
| g) | Includes costs associated with but not limited to our corporate rebranding in June 2024 and other strategic initiatives | |
| h) | Contains non-routine transactions including but not limited to gain on debt extinguishment, and fair value assumption changes on other investments recorded in other income/expense | |
| i) | Certain previously presented notable categories with nil numbers for each period shown have been omitted | |
Adjusted Pre-Tax Income ROE Calculation
| (Dollars in millions) | Q3’24 | Q2’24 | |
| I | Reported Net Income | 21 | 11 |
| II | Notable Items | (8) | (18) |
| III | Income Tax Benefit (Expense) | (6) | (3) |
| IV | Adjusted Pre-Tax Income (Loss) [I – II – III] | 35 | 32 |
| V | Annualized Adjusted Pre-tax Income [IV * 4] | 141 | 127 |
| Equity | |||
| A Beginning Period Equity | 446 | 432 | |
| C Ending Period Equity | 468 | 446 | |
| D Equity Impact of Notables | 8 | 18 | |
| B Adjusted Ending Period Equity [C + D] | 476 | 464 | |
| VI | Average Adjusted Equity [(A + B) / 2] | 461 | 448 |
| VII | Adjusted Pre-Tax Income ROE [V / VI] | 30.6% | 28.3% |
Condensed Consolidated Balance Sheets
| Assets (Dollars in millions) | September 30, 2024 |
June 30, 2024 |
| Cash and cash equivalents | 201.6 | 203.1 |
| Restricted cash | 78.5 | 46.3 |
| Mortgage servicing rights (MSRs), at fair value | 2,223.6 | 2,327.7 |
| Advances, net | 522.7 | 550.6 |
| Loans held for sale | 1,197.7 | 1,107.0 |
| Loans held for investment, at fair value | 8,331.5 | 8,227.8 |
| Receivables, net | 172.2 | 153.4 |
| Investment in equity method investee | 30.6 | 31.3 |
| Premises and equipment, net | 11.7 | 12.3 |
| Other assets | 95.8 | 84.3 |
| Contingent loan repurchase asset | 360.9 | 341.0 |
| Total Assets | 13,226.7 | 13,084.7 |
| Liabilities & Stockholders’ Equity (Dollars in millions) | September 30, 2024 |
June 30, 2024 |
| Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 8,132.5 | 8,035.4 |
| Other financing liabilities, at fair value | 826.2 | 845.9 |
| Advance match funded liabilities | 377.2 | 405.0 |
| Mortgage loan financing facilities, net | 1,355.9 | 1,190.5 |
| MSR financing facilities, net | 804.8 | 927.7 |
| Senior notes, net | 535.1 | 555.2 |
| Other Liabilities | 366.0 | 337.9 |
| Contingent loan repurchase liability | 360.9 | 341.0 |
| Total Liabilities | 12,758.5 | 12,638.4 |
| Total Stockholders’ Equity | 468.2 | 446.2 |
| Total Liabilities and Stockholders’ Equity | 13,226.7 | 13,084.7 |
Condensed Consolidated Statements of Operations
| (Dollars in millions) | Three Months Ended | |
| September 30, 2024 |
June 30, 2024 |
|
| Revenue | ||
| Servicing and subservicing fees | 211.1 | 210.8 |
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 18.0 | 8.5 |
| Gain on loans held for sale, net | 25.8 | 16.5 |
| Other revenue, net | 10.8 | 10.6 |
| Total revenue | 265.7 | 246.4 |
| MSR valuation adjustments, net | (31.5) | (32.7) |
| Operating expenses | ||
| Compensation and benefits | 59.5 | 55.0 |
| Servicing and origination | 11.1 | 13.9 |
| Technology and communications | 13.2 | 13.0 |
| Professional services | 17.3 | 10.7 |
| Occupancy, equipment and mailing | 7.9 | 7.5 |
| Other expenses | 3.4 | 3.9 |
| Total operating expenses | 112.4 | 104.0 |
| Other income (expense) | ||
| Interest income | 24.5 | 22.5 |
| Interest expense | (74.2) | (73.1) |
| Pledged MSR liability expense | (42.3) | (46.1) |
| Earnings of equity method investee | 0.8 | 3.1 |
| Gain on extinguishment of debt | 0.3 | – |
| Other, net | (3.3) | (2.7) |
| Other income (expense), net | (94.1) | (96.2) |
| Income before income taxes | 27.6 | 13.5 |
| Income tax expense | 6.3 | 3.0 |
| Net Income | 21.4 | 10.5 |
| Basic EPS | $2.72 | $1.34 |
| Diluted EPS | $2.65 | $1.33 |
For Further Information Contact:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com
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