Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2022 Earnings Presentation
26 slides from Marathon Petroleum's earnings presentation, May 3, 2022
Slide 1: First Quarter 2022 Earnings Conference Call
First Quarter 2022 Earnings Conference Call May 3, 2022 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements regarding MPC. These forward-looking statements may relate to, among other things, MPC’s expectations, estimates and projections concerning its business and operations, financial priorities, strategic plans and initiati
Slide 3: Business Update
Business Update Progressing return of capital Strengthen - ~$2.5 billion repurchased since last earnings call Competitive Position of our Assets - ~80% of $10 billion return of capital program completed through April 30 Low-Cost First-quarter results reflect current market conditions with Cultur
Slide 4: Martinez Renewables – Joint Venture
Martinez Renewables – Joint Venture Marathon and Neste Secures advantaged feedstocks in advance of phased start-up Adds partner with capabilities and demonstrated track record in renewable liquid fuels Leverages complementary core 50 competencies of each company to 50 enhance the Martinez proj
Slide 5: Challenging Ourselves to Lead in Sustainable Energy
Challenging Ourselves to Lead in Sustainable Energy Strengthen Resiliency Strengthening our business for today, while building durability for tomorrow and beyond First Among US Refiners Expanded Methane Target Scope 1 & 2 GHG Intensity Scope 3, Category 11 GHG Absolute MPLX G&P Methane Intensity(a)
Slide 6: First Quarter Highlights
First Quarter Highlights $ Millions (unless otherwise noted) 1Q22 Earnings per Share ($/share)(a) $1.49 Adjusted EBITDA $2,639 Cash flow from Operations, excl. changes in working capital $1,915 Dividends $330 Share Repurchases(b) $2,846 (a) Based on weighted average diluted shares. (b)Cash paid in t
Slide 7: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income 1Q 2022 vs. 4Q 2021 Adjusted EBITDA Reconciliation to Net Income 3,000 2,795 21 2,639 -175 -2 2,000 $ Millions -923 1,000 845 -871 0 4Q 2021 Refining & Midstream Corporate 1Q 2022 Turnaround, Interest, 1Q 2022 Adj. EBITDA Marketing Adj. EBITDA D&A, and Taxes, and Net In
Slide 8: Refining & Marketing
Refining & Marketing 1Q 2022 vs. 4Q 2021 1,549 1,500 110 91% utilization 118 1,374 51 -19 -334 -101 84% capture 1,000 $ Millions Lower operating and distribution costs 500 0 4Q 2021 USGC Mid-Con West Coast Operating Distribution Other 1Q 2022 Adj. EBITDA Margin Margin Margin Costs Costs Adj. E
Slide 9: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 5,000 4,636 Total system capture(a) of 84%, key 4,500 factors included: 4,000 3,904 Secondary and light product -732 margins $ Millions 3,500 100% Inventory and derivatives 3,000 84% Gulf Coast outages 2,500 2,000 R&M Margin Capture R&M Margin
Slide 10: Midstream
Midstream 1Q 2022 vs. 4Q 2021 1,500 1,405 1 1,403 -3 Through-cycle EBITDA 1,000 stability $ Millions Continued commitment to strict capital discipline 500 0 4Q 2021 MPLX Other 1Q 2022 Adj. EBITDA Midstream Adj. EBITDA 10
Slide 11: Total Consolidated Cash Flow
Total Consolidated Cash Flow 1Q 2022 15,000 1,151 288 598 1,915 -411 -330 -607 MPC - 17 MPLX + 1,168 10,839 $ Millions 10,597 10,000 -2,846 5,000 12/31/2021 Cash Flow Changes in Capital Net Debt Return of Other Dividends Share 3/31/2022 Cash + from Operations, Working Capital Expenditures, Capital t
Slide 12: Second-Quarter 2022 Outlook
Second-Quarter 2022 Outlook Other Charge/ Total Operating Distribution Depreciation Crude Sweet Sour Turnaround Utilization (a) Blendstocks Throughput Cost Cost and Throughput Crude Crude Costs Throughput (a) (b) (c) Amortization (a) $/BBL of Total in MBPD (except Utilization) Percent of Throughput
Slide 13: Update: 2022 Capital Outlook
Update: 2022 Capital Outlook 2022 2021 Outlook Refining & Marketing 911 1,625 Upon closing of Martinez JV, MPC Growth – Ongoing Projects 436 525 will receive: Growth – Renewables 318 800 Martinez 271 700 $400 million Other Renewables 47 100 Maintenance 157 300 50% of capital spent to date MPC
Slide 14: Questions & Answers
7 72= BEE == [NT A = 22) a
Slide 15: Appendix
Appendix 15
Slide 16: First Quarter Highlights
First Quarter Highlights $ Millions (unless otherwise noted) 4Q21 FY21 1Q22 Adjusted Earnings per Share ($/share)(a) $1.30 $2.45 $1.49 Adjusted EBITDA $2,795 $8,957 $2,639 Cash from Operations, excluding Working Capital(b) $2,030 $5,943 $1,915 Dividends $354 $1,484 $330 Share Repurchases(c) $2,742 $
Slide 17: Commitment to Capital Return
Commitment to Capital Return Incremental $10 Billion $5 Billion Repurchase Program Authorization $15 Billion 5.0 7.0 ~$2.5 billion repurchased since last earnings call(a) 2.0 $ Billions ~80% of $10.0 billion complete(b) 10.0 8.0 8.0 ~$7.0 billion remaining authorization Completed Share Repurch
Slide 18: Balance Sheet: Foundation for Strategy Execution
Balance Sheet: Foundation for Strategy Execution Senior Notes Maturities - Next 10 Years (a) 3.0 MPC Excluding MPLX MPC As of Mar 31, 2022 MPLX Adjustments (c) Consolidated 2.0 ($MM except ratio data) $B Cash(d) 10,555 42 10,597 1.0 Total Debt 6,953 19,756 26,709 0.0 2022 2023 2024 2025 2026 2027 20
Slide 19: MPC Shares Outstanding
MPC Shares Outstanding 3Q21 ended with 622 million shares 4Q21 ended with 579 millions of shares million shares 652 638 622 579 1Q22 ended with 545 545 541 million shares 541 million shares as 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 4/30/22 of April 30 19
Slide 20: Refining & Marketing Segment Adjusted EBITDA
Refining & Marketing Segment Adjusted EBITDA 1Q 2022 5,000 541 4,216 -108 4,000 3,904 -13 -732 Volume 306 3,000 $ Millions Product 102 Crude -1,140 -1,330 2,000 1,374 -1,221 21 1,000 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structu
Slide 21: Refining & Marketing Segment Adjusted EBITDA
Refining & Marketing Segment Adjusted EBITDA 1Q 2022 vs. 4Q 2021 Variance Analysis 3,000 1,119 2,500 -113 -52 -9 2,000 1,549 $ Millions 1,500 110 1,374 118 -19 1,000 -1,329 Volume -10 Product -818 500 Crude -501 0 4Q 2021 Blended Sour Sweet Market Other Operating Distribution Other 1Q 2022 Segment C
Slide 22: Income Summary for Operations
Income Summary for Operations 2021 2022 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income (loss) (598) 224 509 881 768 Midstream segment income 972 977 1,042 1,070 1,072 Corporate (157) (180) (186) (173) (151) Income from continuing operations before items not allocated
Slide 23: Reconciliation
Reconciliation Cash flow from Continuing Operations, Excluding Changes in Working Capital 2021 2021 2022 ($MM) 4Q FY 1Q Cash provided by operating activities from continuing operations 4,838 8,384 2,513 Less changes: Current receivables (1,534) (5,299) (4,627) Inventories 1,173 (33) (1,423) Current
Slide 24: Reconciliation
Reconciliation Segment Income (Loss) from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q Refining & Marketing Segment Segment income (loss) from operations (598) 224 509 881 768 (a) As of August 2, 2020 Speedway Add: Depreciation and amortization 478 466 462
Slide 25: Reconciliation
Reconciliation Net Income (Loss) Attributable to MPC to Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q Net income (loss) attributable to MPC (242) 8,512 694 774 845 Net income (loss) attributable to noncontrolling interest 306 290 336 331 327 Income from discontinued operations, net of tax (234) (8,
Slide 26: Reconciliation
Reconciliation Refining & Marketing Income (Loss) from Operations to Refining & Marketing Margin 2021 2022 (a) Reflects the gross margin, excluding depreciation and amortization, of other ($MM) 1Q 2Q 3Q 4Q 1Q related operations included in the Refining & Refining & Marketing income (loss) from opera