FINDLAY, Ohio - Marathon Petroleum Corp. (NYSE: MPC) has announced a leadership transition, set to take effect on August 1, 2024. Maryann T. Mannen, currently serving as the company's President, will take over as Chief Executive Officer and join the Board of Directors. Outgoing CEO, Michael J. Hennigan, will assume the role of Executive Chairman of the Board. Additionally, John Surma has been elected as Lead Independent Director.
Mannen has been with Marathon Petroleum since January 2021, initially as Executive Vice President and Chief Financial Officer before becoming President earlier this year. She brings to her new role as CEO a wealth of experience, having worked in the energy sector for 38 years. Hennigan, who has led the company since March 2020, will transition to Executive Chairman, while Surma, a Board member since 2011, will continue to provide independent oversight in his new role.
Under Hennigan's leadership, Marathon Petroleum has seen significant achievements, including a strategic sale of its retail business and a robust capital return program that has resulted in approximately $37 billion being returned to shareholders. This has contributed to a total shareholder return, with dividends reinvested, of 918% since March 2020. The company has also experienced growth in its midstream business through MPLX (NYSE:MPLX) LP, with expansions in the Marcellus, Utica, and Permian basins.
The Board of Directors expressed unanimous support for Mannen's upcoming tenure as CEO, highlighting her contributions to the company's success and financial expertise. Mannen herself emphasized her commitment to safety, environmental stewardship, and operational performance as key priorities for driving shareholder value.
Mannen's extensive background includes her role as Executive Vice President and CFO of TechnipFMC and various positions at FMC Technologies (NYSE:FTI), Inc. since 1986. She also serves on the board of directors of Owens Corning (NYSE:OC). Hennigan's experience spans multiple leadership roles, including positions with MPLX LP , Energy Transfer (NYSE:ET) Partners L.P., and Sunoco Logistics Partners L.P. Surma brings his experience as the former CEO of United States Steel (NYSE:X) Corporation and executive roles at Marathon, along with board memberships at Trane Technologies (NYSE:TT) plc and Public Service Enterprise Group (NYSE:PEG) (PSEG).
Marathon Petroleum, headquartered in Findlay, Ohio, operates the nation's largest refining system and a comprehensive marketing system, including Marathon brand retail outlets. It also holds a significant interest in MPLX LP, a midstream company with assets in gathering, processing, fractionation, and logistics.
The information in this article is based on a press release statement from Marathon Petroleum Corporation (NYSE:MPC).
InvestingPro Insights
As Marathon Petroleum Corp. (NYSE: MPC) prepares for a leadership transition with Maryann T. Mannen at the helm, investors have a keen eye on the company's financial health and market performance. According to recent data from InvestingPro, Marathon Petroleum boasts a substantial market capitalization of $62.64 billion, underscoring its prominence in the energy sector. The company's Price to Earnings (P/E) ratio stands at a competitive 8.73, which is slightly lower than the adjusted P/E ratio for the last twelve months as of Q1 2024, indicating a potentially attractive valuation for investors.
InvestingPro Tips reveal that management's aggressive share buybacks and a high shareholder yield are reflective of a proactive approach to capital management. Furthermore, the company's stock is known for its low price volatility, which may appeal to investors seeking stability in the often turbulent energy market. Marathon Petroleum has also maintained dividend payments for 14 consecutive years, a testament to its financial resilience and commitment to shareholder returns.
With a robust revenue of $147.39 billion over the last twelve months as of Q1 2024, despite a decline in revenue growth during the same period, Marathon Petroleum continues to assert its financial prowess. The company's gross profit margin of 12.57% may raise concerns about its efficiency; nevertheless, this is mitigated by a strong return on assets of 10.89%, indicating effective use of resources.
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