Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q3 2021 Earnings Presentation
24 slides from Marathon Petroleum's earnings presentation, Nov 2, 2021
Slide 1: Third Quarter 2021 Earnings Conference Call
Third Quarter 2021 Earnings Conference Call November 2, 2021 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements regarding Marathon Petroleum Corporation (MPC). These forward-looking statements may relate to, among other things, MPC’s expectations, estimates and projections concerning its business and operations, financial priorit
Slide 3: Business Update
Business Update Continuing focus on lowering the cost structure Strengthen Competitive Position Progressing return of capital of our Assets ~25% of $10 billion capital return completed $7.5 billion remaining to be completed by year-end Improve Commercial 2022(a) Performance MPC to receive
Slide 4: 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 Target: Reduce Target: Reduce Target: Reduce Scope 1 and 2 GHG midstream methane freshwater 30% emissions intensity 50% emissions intensit
Slide 5: Third Quarter Highlights
Third Quarter Highlights $ Millions (unless otherwise noted) 3Q21 Adjusted Earnings per Share ($/share)(a) $0.73 Adjusted EBITDA $2,416 Cash from Operations, excluding Working Capital and $1,765 voluntary pension contribution(b) Dividends $370 Share Repurchases(c) $928 (a) Based on weighted average
Slide 6: Lowering the Cost Structure
Lowering the Cost Structure Refining Operating Costs Corporate Costs ($ / Barrel) $233 MM ($ Millions) $6/bbl Quarterly avg ~$175 MM Quarterly avg ~$5/bbl 1Q 2Q 3Q 4Q 1Q (a) 2Q 3Q (a) 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2020 2020 2020 2020 2021 2021 2021 2021 2020 2020 2020 2020 2021 2021 2021 2021 Guidance
Slide 7: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income 3Q 2021 vs. 2Q 2021 Adjusted EBITDA Reconciliation to Net Income 3,000 67 2,416 444 -5 -48 $ Millions 2,000 1,910 -1,028 1,000 694 -646 0 2Q 2021 Refining & Midstream Corporate 3Q 2021 Adjustments Turnaround Interest, 3Q 2021 Adj. EBITDA Marketing Adj. EBITDA (b) and D&
Slide 8: Refining & Marketing
Refining & Marketing 3Q 2021 vs. 2Q 2021 1,500 Refining margins 71 improved across all 145 2 1,195 regions 336 -103 -7 1,000 $ Millions 93% utilization during the quarter (or 88% 751 adjusted for idled capacity) 500 Operating costs impacted by higher natural gas prices 0 2Q 2021 USGC Mid-Con W
Slide 9: Midstream
Midstream 3Q 2021 vs. 2Q 2021 1,500 62 5 1,375 Through-cycle EBITDA 1,308 stability 1,000 Continued progress on $ Millions reducing operating expenses 500 Continued progress on organic growth projects 0 2Q 2021 MPLX Other 3Q 2021 Adj. EBITDA Midstream Adj. EBITDA 9
Slide 10: Total Consolidated Cash Flow
Total Consolidated Cash Flow 3Q 2021 20,000 1,765 40 -414 17,257 -1,018 -370 -465 -263 MPC - 18 15,000 MPLX - 1,000 -2,378 13,226 -928 - 2.4 = Income Taxes 10,000 - 2.9 = Paid Speedway Taxes (of 4.2) 0.4 = Offset by CARES Refund (of 2.3) 0.1 = Other 5,000 6/30/2021 Operating Working Capital Net Debt
Slide 11: Progress on Use of Speedway Proceeds
Progress on Use of Speedway Proceeds 17.2 -1.0 $1.5 billion in repurchases since last -2.5 quarter -1.5 -2.1 10.1 Continuing open-market repurchases $ Billions Progressing steps to complete remaining $7.5 billion by year-end 2022 After-Tax Previous Updates Remaining Reducing additional ~$2.1
Slide 12: Fourth-Quarter 2021 Outlook
Fourth-Quarter 2021 Outlook Other Total Operating Distribution Depreciation Crude Charge/ Sweet Sour Turnaround Utilization (a) Throughput Cost Cost and Throughput Feedstocks Crude Crude Costs (a) (b) (c) Amortization Throughput (a) $/BBL of Total in MBPD (except Utilization) Percent of Throughput $
Slide 13: Questions & Answers
7 72= BEE == [NT A = 22) a
Slide 14: Appendix
Appendix 14
Slide 15: Manageable Leverage and Maturities
Manageable Leverage and Maturities Debt-to-Capital (a) 75% MPC Excluding MPLX MPC 51% As of Sept 30, 2021 MPLX Adjustments (c) Consolidated 50% 40% 43% 34% ($MM except ratio data) 21% 24% 25% Cash(d) 13,187 39 13,226 0% Total Debt 9,089 18,254 27,343 2019 2020 2021 YTD MPC Excl. MPLX MPC Consolidate
Slide 16: MPC Shares Outstanding
MPC Shares Outstanding 2Q21 ended with 638 million shares millions of shares 652 3Q21 ended with 622 638 622 million shares 616 Oct ended with 616 million shares 3/31/21 6/30/21 9/30/21 10/31/21 16
Slide 17: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 4,000 3,803 172 3,785 Total system capture of 100%, key factors included: 3,500 -190 Strong gasoline and distillate margins $ Millions 3,000 Tailwind from petrochemicals feedstock prices 2,500 2,000 R&M Margin 95% Capture Actual Capture R&M Marg
Slide 18: Refining & Marketing Segment Income
Refining & Marketing Segment Income 3Q 2021 5,000 4,000 518 3,785 65 -72 -17 3,291 3,000 Volume 288 $ Millions Product 697 Crude -1,002 -1,296 -19 2,000 1,000 -1,308 509 -667 14 0 Blended Sweet Sour Market Other R&M Margin Operating Storm Distribution Turnaround Other R&M Crack Differential Differen
Slide 19: Refining & Marketing Segment Income
Refining & Marketing Segment Income 3Q 2021 vs. 2Q 2021 Variance Analysis 1,000 32 150 -56 488 -62 -19 2 Volume - 18 -103 Product 172 509 $ Millions 500 Crude - 216 -147 224 0 2Q 2021 Blended Sour Sweet Market Other Storm Operating Distribution Turnaround, 3Q 2021 Segment Crack Differential Differen
Slide 20: Income Summary for Operations
Income Summary for Operations 2020 2021 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q 3Q (a) Corporate reflects corporate costs that Refining & Marketing segment income (loss) (497) (1,544) (1,569) (1,579) (598) 224 509 are no longer allocated to Speedway under discontinued operations accounting. M
Slide 21: Reconciliation
Reconciliation Net Income (Loss) Attributable to MPC to Adjusted Net Income (Loss) Attributable to MPC ($MM) 3Q21 3Q20 Net Income (loss) attributable to MPC 694 (886) (a) Income taxes for adjusted earnings was calculated by applying a combined federal Pre-tax adjustments: and state statutory tax rat
Slide 22: Reconciliation
Reconciliation Cash Provided by Operations to Continuing Operating Cash Flow Before Changes in Working Capital 2021 ($MM) 3Q Cash provided by operating activities from continuing operations 1,745 Less changes: Current receivables 182 Inventories (326) Current accounts payable and accrued liabilities
Slide 23: Reconciliation
Reconciliation Segment Income (Loss) from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2020 2021 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing Segment Segment income (loss) from operations (497) (1,544) (1,569) (1,579) (598) 224 509 Add: Depreciation and amortization 473 463 456 465 4
Slide 24: Reconciliation
Reconciliation Refining & Marketing Income (Loss) from Operations to Refining & Marketing Margin 2020 2021 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q (a) LCM inventory valuation adjustments are excluded from Refining & Marketing income Refining & Marketing income (loss) from operations (a) (497) (1,544) (1,569) (1,