Marathon reported full-year 2009 net income of $1.463 billion, or $2.06 per diluted share. Net income in 2008 was $3.528 billion, or $4.95 per diluted share.
"In the face of one of the most challenging economic environments in decades, Marathon successfully executed a substantial capital investment program designed to focus on profitable [image-nocss] growth, while maintaining a solid balance sheet and strong financial position, ending 2009 with an estimated 23% net debt-to-capital ratio," said Clarence P. Cazalot Jr., Marathon president and CEO. "The company [is] well-positioned to benefit from the ongoing global economic recovery and higher overall demand for our products."
Increased Speedway SuperAmerica LLC (SSA) same-store gasoline sales volumes and merchandise sales were 1.1% and 11.4% respectively, compared to 2008. (Speedway was named best gasoline brand in the nation in its category by the 2009 EquiTrend Brand Study.)
Marathon also completed an asset divestiture program, generating $3.5 billion in total transaction values since March 2008
Total segment income was $499 million in fourth-quarter 2009 and $1.819 billion for the full-year 2009, compared with $701 million and $4.295 billion in the same periods of 2008.
Exploration and production segment income totaled $439 million in fourth-quarter 2009 compared to $240 million in fourth-quarter 2008.
The refining, marketing and transportation (RM&T) segment reported a loss of $18 million in fourth-quarter 2009 and income of $464 million for the year, compared to income of $325 million and $1.179 billion in the same periods of 2008. The refining and wholesale marketing gross margin per gallon was 0.62 cents in fourth-quarter 2009 compared to 12.48 cents in fourth-quarter 2008, and 6.10 cents per gallon for full year 2009 compared to 11.66 cents for 2008.
The decline in the quarterly refining and wholesale marketing gross margin was primarily attributable to the price of crude oil rising faster than the price of refined products in fourth-quarter 2009, whereas crude oil prices decreased substantially during fourth-quarter 2008. During the fourth quarter 2009 crude oil prices increased about $10 per barrel compared to the significant drop in crude oil prices of about $55 per barrel during fourth-quarter 2008.
Marathon's RM&T segment achieved operating cost reductions of approximately 9% for full-year 2009 compared to 2008, excluding changes in crude and product purchases, depreciation, energy prices and other variable expenses.
The SSA gasoline and distillate gross margin averaged 10.40 cents per gallon during fourth-quarter 2009, compared to 18.21 cents realized in fourth-quarter 2008, and averaged 11.41 cents for full-year 2009, compared to the 13.87 cents realized in 2008. SSA same-store merchandise sales increased 9.6% during the fourth quarter and 11.4% for full-year 2009.
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