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Marathon Petroleum Finance

Enabling modern life through sustainable energy solutions by optimizing financial performance, driving transparency, and powering long-term value creation

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Align the strategy

Marathon Petroleum Finance SWOT Analysis

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Enabling modern life through sustainable energy solutions by optimizing financial performance, driving transparency, and powering long-term value creation

Strengths

  • SCALE: Largest U.S. refiner with diversified downstream operations
  • CASHFLOW: Strong operational cash flow ($15.5B in 2023)
  • MIDSTREAM: Stable MPLX ownership delivers consistent income
  • CAPITAL: Disciplined capital allocation and shareholder returns
  • MARGIN: Industry-leading refining margins across diverse markets

Weaknesses

  • CARBON: High carbon footprint compared to renewable energy companies
  • VOLATILITY: Exposure to commodity price fluctuations and margins
  • SYSTEMS: Legacy financial systems limiting analytical capabilities
  • TALENT: Challenges attracting finance tech talent vs. tech sector
  • FORECASTING: Gaps in predictive modeling for market dynamics

Opportunities

  • RENEWABLES: Expanded renewable fuels and low carbon ventures
  • ESG: Enhanced ESG reporting to attract sustainability investors
  • DIGITAL: Finance transformation through advanced analytics
  • M&A: Strategic acquisitions in complementary energy segments
  • OPTIMIZATION: Supply chain optimization for margin enhancement

Threats

  • REGULATION: Intensifying climate regulations and compliance costs
  • TRANSITION: Accelerating global energy transition away from fossil
  • COMPETITION: Increasing competition from integrated majors
  • DEMAND: Long-term demand decline for traditional petroleum products
  • VOLATILITY: Market volatility impacting financial planning accuracy

Key Priorities

  • TRANSFORMATION: Accelerate finance digital transformation
  • ESG: Develop comprehensive ESG financial reporting framework
  • DIVERSIFICATION: Expand renewable energy financial modeling
  • OPTIMIZATION: Implement advanced margin optimization analytics
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Align the plan

Marathon Petroleum Finance OKR Plan

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Enabling modern life through sustainable energy solutions by optimizing financial performance, driving transparency, and powering long-term value creation

DIGITAL TRANSFORM

Revolutionize finance through cutting-edge technology

  • PLATFORM: Deploy integrated financial analytics platform with real-time dashboards for 85% of key metrics by Q3
  • AUTOMATION: Implement intelligent automation for 60% of recurring finance processes, reducing 2,000 manual hours monthly
  • FORECAST: Develop AI-driven forecasting models achieving 90%+ accuracy for quarterly projections across 5 key metrics
  • TALENT: Upskill 75% of finance team on advanced analytics and recruit 5 specialized finance technology experts
ESG EXCELLENCE

Lead industry in sustainable finance practices

  • FRAMEWORK: Develop comprehensive ESG financial reporting framework aligned with TCFD and SASB by end of quarter
  • METRICS: Implement 12 new sustainability KPIs with financial impact analysis integrated into executive dashboards
  • DISCLOSURE: Launch automated sustainability financial disclosure platform meeting 100% of investor requirements
  • VALUATION: Create climate risk financial model quantifying impact on asset values across 90% of company portfolio
DIVERSIFY PORTFOLIO

Expand financial models for renewable growth

  • ANALYSIS: Complete financial scenario analysis for 3 major renewable energy investment opportunities by month 2
  • METRICS: Develop 8 specialized ROI metrics for evaluating low-carbon projects with standardized evaluation rubric
  • BUDGETING: Implement zero-based budgeting process for renewable initiatives with 20% more allocation efficiency
  • INTEGRATION: Create financial integration model for measuring cross-business synergies in 5 renewable segments
OPTIMIZE MARGINS

Maximize profitability through advanced analytics

  • DASHBOARD: Deploy real-time margin optimization dashboard across all business units with 95% data coverage
  • PRICING: Implement dynamic pricing models using ML algorithms, targeting 120bps margin improvement in Q3
  • INVENTORY: Develop AI-powered inventory optimization system reducing working capital by $125M by quarter end
  • EFFICIENCY: Identify $75M in cost reduction opportunities through advanced spend analytics across operations
METRICS
  • ROIC: 18% by end of current year, 20% by end of next year
  • ESG RATING: Improve S&P Global ESG Score to 65+ (from current 58)
  • PROCESS EFFICIENCY: Reduce finance operating costs by 15% YoY while improving service levels
VALUES
  • Safety & Environmental Stewardship
  • Integrity & Respect
  • Inclusive Culture
  • Creating Value
  • Results-Driven Excellence
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Align the learnings

Marathon Petroleum Finance Retrospective

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Enabling modern life through sustainable energy solutions by optimizing financial performance, driving transparency, and powering long-term value creation

What Went Well

  • PERFORMANCE: Delivered strong Q4 with $2.2B in net income, exceeding targets
  • RETURNS: Returned $13.2B to shareholders through dividends and buybacks
  • MIDSTREAM: MPLX continued steady performance, contributing reliable income
  • CAPEX: Maintained disciplined capital spending within planned budget ranges
  • MARGIN: Captured strong crack spreads in refining across key regional markets

Not So Well

  • RENEWABLE: Slower than anticipated progress on renewable diesel initiatives
  • DOWNTIME: Unplanned maintenance at Galveston Bay refinery impacted output
  • COSTS: Inflation-driven operating cost increases above forecasted levels
  • HEDGING: Missed opportunities in optimizing commodity price risk management
  • FORECASTING: Revenue forecast accuracy below target due to market volatility

Learnings

  • INTEGRATION: Cross-functional collaboration critical for major initiatives
  • FLEXIBILITY: Maintaining financial flexibility crucial during volatility
  • COMMUNICATION: Enhanced investor communication on ESG progress is valued
  • DIGITALIZATION: Digital finance investments deliver measurable ROI quickly
  • SCENARIO: More robust scenario planning needed for changing market dynamics

Action Items

  • ANALYTICS: Implement advanced financial analytics platform by end of Q3
  • REPORTING: Enhance ESG financial metrics and integration into core reporting
  • TALENT: Develop specialized financial technology talent acquisition strategy
  • AUTOMATION: Accelerate finance process automation to reduce manual workload
  • RISK: Upgrade financial risk modeling capabilities for market volatility
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Drive AI transformation

Marathon Petroleum Finance AI Strategy SWOT Analysis

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Enabling modern life through sustainable energy solutions by optimizing financial performance, driving transparency, and powering long-term value creation

Strengths

  • DATA: Vast operational and financial data assets across portfolio
  • INFRASTRUCTURE: Strong IT foundation supporting AI initiatives
  • INVESTMENT: Committed capital allocation for technology upgrades
  • LEADERSHIP: Executive alignment on AI transformation importance
  • PILOTS: Successful pilot programs in predictive maintenance

Weaknesses

  • INTEGRATION: Siloed data systems hindering unified AI approach
  • TALENT: Limited specialized AI/ML expertise in finance function
  • GOVERNANCE: Underdeveloped AI governance and risk frameworks
  • ADOPTION: Varying levels of AI literacy across finance teams
  • LEGACY: Outdated financial systems requiring modernization

Opportunities

  • FORECASTING: AI-powered financial forecasting and scenario planning
  • OPTIMIZATION: Price/margin optimization through ML algorithms
  • AUTOMATION: End-to-end automation of finance operations
  • RISK: Advanced risk modeling and anomaly detection capabilities
  • ESG: AI-driven sustainability reporting and performance tracking

Threats

  • COMPETITION: Competitors advancing faster in AI finance adoption
  • SECURITY: Increased cybersecurity risks with AI implementation
  • COMPLIANCE: Evolving regulatory landscape for AI applications
  • DISRUPTION: Business disruption during implementation phases
  • BIAS: Potential algorithmic bias in financial decision systems

Key Priorities

  • PLATFORM: Develop unified AI finance analytics platform
  • UPSKILL: Implement finance AI literacy and capability program
  • AUTOMATE: Deploy intelligent automation for core finance processes
  • GOVERNANCE: Establish robust AI ethics and governance framework