Maryann T. Mannen
Executive Vice President and Chief Financial Officer at Marathon Petroleum
Thanks, Mike. Moving to second quarter highlights, Slide 5 provides a summary of our financial results. This morning, we reported earnings per share of $5.32, adjusted EBITDA was $4.5 billion for the quarter, and cash flow from operations, excluding favorable working capital changes, was over $3.1 billion. During the quarter, we returned $316 million to shareholders through dividend payments and repurchased $3.1 billion of our shares.
Slide 6 shows the reconciliation between net income and adjusted EBITDA as well as the sequential change in adjusted EBITDA from the first quarter of 2023 to the second quarter of 2023. Adjusted EBITDA was lower sequentially by approximately $700 million, as higher refining throughput was more than offset by lower market crack spreads. Corporate expenses were roughly in line with our guidance. And despite general inflationary pressures, we've maintained cost discipline since taking $100 million out of our corporate cost since 2020. The tax rate for the second quarter was 18.4%, resulting in a tax provision of approximately $583 million. Our tax provision included a $53 million discrete benefit related to prior years.
Moving to our segment results, Slide 7 provides an overview of our Refining & Marketing segment. Refining utilization increased 4% to 93% despite significant turnaround activity, as planned work had a lower impact on crude units in the second quarter. During the quarter, at Galveston Bay, an incident occurred at one of the refineries' catalytic reformers. This unit has been out of service since May 15. This resulted in approximately 2.5 million barrels of crude throughput reduction and an approximate 1% reduction to capture. Sequentially, per barrel margins were lower in the Gulf Coast and Mid-Con regions, driven by lower crack spreads and our sour crude differentials. Capture was 97%, reflecting a strong result from our commercial team, particularly given the extensive turnaround activity early in the quarter. Refining operating costs were $5.15 per barrel in the second quarter, lower sequentially due to higher throughput and lower energy cost.
Slide 8 provides an overview of our Refining & Marketing margin capture this quarter, which was 97%. Our commercial team executed effectively and achieved a strong capture result, considering a significant amount of planned and unplanned refinery downtime. Gasoline and distillate margin tailwinds were balanced against weaker secondary product pricing. We are also seeing incremental product yield and crude mix benefits from recent major capital projects. Capture results will fluctuate based on market dynamics. We believe that the capabilities we have built over the last few years will provide a sustainable advantage. This commitment to commercial performance has become foundational, and we expect to see the results of this emphasis.
Slide 9 shows the change in our Midstream segment adjusted EBITDA versus the first quarter of 2023. Our Midstream segment delivered strong second quarter results. Segment adjusted EBITDA, while flat sequentially, was 5% higher year over year. Our Midstream business continues to grow and generate strong cash flows. We are advancing high-return growth projects anchored in the Marcellus and Permian basins. These disciplined capital investments, along with our focus on cost and portfolio optimization, are expected to grow our cash flows. This will allow us to reinvest in the business and return capital to unitholders.
Slide 10 presents the elements of change in our consolidated cash position for the second quarter. Operating cash flow, excluding changes in working capital, was $3.1 billion in the quarter. Working capital was an $854 million tailwind for the quarter, driven primarily by changes in crude oil and refined product inventories. Capital expenditures and investments totaled $570 million this quarter, consistent with our 2023 outlook.
MPC returned nearly $3.4 billion via share repurchases and dividend during the quarter. This represents 108% payout of the $3.1 billion of operating cash flow, excluding changes in working capital, highlighting our commitment to superior shareholder returns. And as of today, we have approximately $6.3 billion remaining under our current share repurchase authorization. At the end of the second quarter, MPC had approximately $11.5 billion in consolidated cash and short-term investments.
Turning to guidance, Slide 11, we provide our third quarter outlook. We expect crude throughput volumes of roughly 2.7 million barrels per day, representing utilization of 94%. Utilization is forecasted to be higher sequentially due to lower planned turnaround activity in the third quarter and enhanced mid-cycle margins continue to incentivize high refining utilization. While we have not confirmed a start-up date, our throughput guidance assumes the reformer at the Galveston Bay refinery will be down for the entire quarter.
Planned turnaround expense is projected to be approximately $120 million in the third quarter. Operating costs per barrel in the third quarter are expected to be $5.10, as we expect to see benefits from higher throughput and lower costs, given we have completed the significant portion of our turnaround and project activity. Distribution costs are expected to be approximately $1.4 billion for the third quarter. Corporate costs are expected to be $175 million, representing the sustained reductions that we have made in this area.
To recap, our second quarter results reflect our team's execution against our strategic pillars across the company. Our capital allocation framework remains consistent. We will invest in sustaining our asset base, while paying a secure competitive dividend with the potential for growth. We want to grow the company's earnings and we will exercise strict capital discipline. Beyond these three priorities, we are committed to returning excess capital through share repurchases to meaningfully lower our share count.
With that, let me pass it back to Mike.
