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Master Limited Partnership | 9 Months Ended
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Sep. 30, 2024
Noncontrolling Interest [Abstract] |
Master Limited Partnership | Master Limited Partnership We own the general partner and a majority limited partner interest in MPLX, which owns and operates crude oil and light product transportation and logistics infrastructure as well as gathering, processing and fractionation assets. We control MPLX through our ownership of the general partner interest and, as of September 30, 2024, we owned approximately 64 percent of the outstanding MPLX common units compared to 65 percent as of December 31, 2023. Our ownership was impacted by changes in the redeemable non-controlling interest and unit repurchases. Unit Repurchase Program On August 2, 2022, MPLX announced its board of directors approved a $1.0 billion unit repurchase authorization. This u nit repurchase authorization has no expiration date. MPLX may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated unit repurchases, tender offers or open market solicitations for units, some of which may be effected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be suspended, discontinued or restarted at any time. Total unit repurchases were as follows for the respective periods:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions, except per unit data) | 2024 |  | 2023 |  | 2024 |  | 2023
Number of common units repurchased | 2 |  |  | — |  |  | 6 |  |  | — |
Cash paid for common units repurchased | $ | 76 |  |  | $ | — |  |  | $ | 226 |  |  | $ | — |
Average cost per unit | $ | 42.89 |  |  | $ | — |  |  | $ | 41.32 |  |  | $ | — |
As of September 30, 2024, MPLX had approximately $620 million remaining under its unit repurchase authorization. Redemption of the Series B Preferred Units On February 15, 2023, MPLX exercised its right to redeem all of its 600,000 outstanding preferred units (the “Series B preferred units”). MPLX paid unitholders the Series B preferred unit redemption price of $1,000 per unit. The final semi-annual distribution on the Series B preferred units was paid on February 15, 2023 in the usual manner. The excess of the total redemption price of $600 million paid to Series B preferred unitholders over the carrying value of the Series B preferred units on the redemption date resulted in a $2 million net reduction to retained earnings. Agreements We have various long-term, fee-based commercial agreements with MPLX. Under these agreements, MPLX provides transportation, storage, distribution and marketing services to us. With certain exceptions, these agreements generally contain minimum volume commitments. These transactions are eliminated in consolidation but are reflected as intersegment transactions between our Refining & Marketing and Midstream segments. We also have agreements with MPLX that establish fees for operational and management services provided between us and MPLX and for executive management services and certain general and administrative services provided by us to MPLX. These transactions are eliminated in consolidation but are reflected as intersegment transactions between corporate and our Midstream segment. Noncontrolling Interest As a result of equity transactions of MPLX, we are required to adjust non-controlling interest and additional paid-in capital. Changes in MPC’s additional paid-in capital resulting from changes in its ownership interests in MPLX were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Millions of dollars) | 2024 |  | 2023 |  | 2024 |  | 2023
Increase (decrease) due to change in ownership | $ | (29) |  |  | $ | (38) |  |  | $ | 198 |  |  | $ | (37) |
Tax impact | 9 |  |  | 9 |  |  | (67) |  |  | 11 |
Increase (decrease) in MPC's additional paid-in capital, net of tax | $ | (20) |  |  | $ | (29) |  |  | $ | 131 |  |  | $ | (26) |

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- Definition The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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