Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2020 Earnings Presentation
32 slides from Marathon Petroleum's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020 Conference Call
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation (MPC). These forward-looking statements relate to, among other things, expectations, estimates and projections conceming the busines
Slide 3: Business Update
Business Update = Tactical steps taken to address COVID-19 business impacts: = Reducing expected 2020 capital spend by $1.4 billion or ~30% = Reducing planned annual operating expenses by $950 million = Throughput reductions and temporary idling of facilities = Increased revolver capacity by $1 bill
Slide 4: Updated 2020 Capital Spending Outlook
Updated 2020 Capital Spending Outlook 43% Capital Spen Ns O la Refining & Marketing Rstisese| ee) % Decrease Outlook 35% MPLX Refining & Marketing 1,550 1,300 16% MPC Midstream 300 230 -23% MPLX 1,750 1,050 -40% Midstream 2,050 1,280 -38% Retail 550 300 -45% Corporate/Other 200 120 -40% 10% MPC Cons
Slide 5: First Quarter Highlights
First Quarter Highlights (MAN s Adjusted Loss per Share ($/share) ©) Adjusted EBITDA Cash from Operations, excluding Working Capital
Slide 6: First Quarter Highlights (cont'd)
$ Millions First Quarter Highlights (cont'd) 1Q 2020 vs. 4Q 2019 Adjusted EBITDA | Reconciliation to Net Loss yl 4,000 3,172 19 8 1 1 2,000 | 8 -1,341 0 -2,000 -4,000 -6,000 -8,000 2,583 -10,000 -9,234 -12,392 12,000 —_ -1,291 -14,000 AQ 2019 Midstream Retail Refining & Corporateand 1Q2020 Impairmen
Slide 7: Midstream EBITDA
Midstream EBITDA 1Q 2020 vs. 4Q 2019 1,400 = Diversified footprint adds a 1,250 stability 1,200 18 1,000 " Fee-based with volume 2 800 protections across & businesses = 600 400 = Continued progress on 200 organic growth projects ° 4Q 2019 MPLX Other 1Q 2020 EBITDA Midstream EBITDA
Slide 8: Retail EBITDA
Retail EBITDA 1Q 2020 vs. 4Q 2019 800 = Strong fuel margins of ~ 33 cpg 636 25 34 644 600 =" 0.7% year-over-year increase in same store merchandise sales 400 $ Millions =" Converted 39 stores to Speedway brand during the 200 quarter prior to suspending activities due to COVID-19 AQ 2019 Fuel Merchan
Slide 9: Refining & Marketing EBITDA
Refining & Marketing EBITDA 1Q 2020 vs. 4Q 2019 1,600 = Upper Midwest and West 2308 Coast macro environment — 1,400 led to significantly pressured crack spreads 1200 = 1,000 " Completedturnaround = @ 800 work at Garyville (including coker upgrades), El Paso, 600 and Salt Lake 400 = Utilization of 91
Slide 10: Total Consolidated Cash Flow
Total Consolidated Cash Flow 1Q 2020 4,000 2,729 3,500 3,000 1,259 2,500 n c 2 2,000 “1,234 1.690 = 130 a = 1,527 -377 = # 1,500 -320 1,000 “ eotcctc 500 2,027 ' upc 1985 | | MPLX 744% 0 12/31/2019 Operating Cash Working Net Debt Capital Return of Net Distributions Other 3/31/2020 Cash Balance Flow
Slide 11: Second-Quarter 2020 Outlook
Second-Quarter 2020 Outlook Other Crude Total 4 Retief Depreciation Charge/ Operating Distribution Planned Throughput Feedstocks Throughput Cost (b) Cost (c) Turnaround and . (@) Throughput (a) ® blue Ue) in MBPD Percent of Throughput | eee t $MM GulfCoastRegion | 820 | 100 | 920 | 30% | 70% | $5.20
Slide 12: Proactive Steps to Strengthen Liquidity Position
Proactive Steps to Strengthen Liquidity Position Drew $2 billion on revolving credit facility in March 2020 Drew an additional $1.5 billion on revolving credit facility in mid-April 2020 Issued $2.5 billion in senior notes in late April- used to pay down borrowings under revolving credit facilities
Slide 13: Manageable Leverage and Maturities
Manageable Leverage and Maturities Debt-to-LTM Adj. EBITDA ®) 2.0x 1.5x am 1.0x vines otherwise noted) en ee 0.5x Total Debt (excl. MPLX) 9,114 9125 11,138 0.0x | 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Adj. EBITDA (excl. MPLX) 6,893 5,506 5,516 x Senior Notes Maturities - Next 10 Years © L
Slide 14: MPC: Strategy for Continuing Value Creation
MPC: Strategy for Continuing Value Creation Strengthen Improve Competitive Position Commercial of our Assets Performance Lower Cost Structure 14
Slide 15: Focus on Sustainability and Corporate Leadership
Focus on Sustainability and Corporate Leadership U.S. EPA Energy Star GHG intensity goal 575.000 0, N95 respirator masks Partner 30 below donated to healthcare 2014 levels by 2030 facilities of the Year | $1 mill Sustained Excellence Award Goa) inked mi ion . : MPC Foundation donation to 3” Year in
Slide 16: Questions & Answers
Slide 17: Appendix
Appendix
Slide 18: Capitalization and Select Balance Sheet Data
Capitalization and Select Balance Sheet Data ay MPC MPLX MPC Excluding As of March 34, 2020 Consolidated Adjustments® MPLX ($MM except ratio data) Total Debt 31,609 20,471 11,138 Total Equity®) 32,196 10,477 21,719 Debt-to-Capital Ratio 50% 34% 1,690 1,633 Cash and cash equivalents Debt to LTM Adjus
Slide 19: Refining & Marketing Segment Loss
Refining & Marketing Segment Loss 1Q 2020 4,000 4 125 3,079 3,000 - 606 a -7 oe 2,265 90 | Volume 218 | Product 889 2,000 - ‘Crude -979 ! wo Joe ee f] c ie) = -1,636 = 1,000 ~ Am 1 0 - PT wee LL [| - -622 -1,000 ~ 776 Blended Sweet Sour Market Other R&M Operating Distribution Other Turnaround R&M Cr
Slide 20: Refining & Marketing Margins — Market vs. Realized
Refining & Marketing Margins — Market vs. Realized 3,500 Total system capture of 104%, 3,000 Za key factors included: -295 = Strong gas and diesel price 2 2,500 realizations xe} = * 2,000 "Favorable pricing of non- transportation fuels relative to the index 1,500 1,000 R&M Margin 90% Capture Actual
Slide 21: Distribution Costs - Components
Distribution Costs - Components 1Q 2020 376 1,200 482 $ Millions 432 300 Third Party MPLX MPLX Fuels Distribution and 1Q 2020 Fees and Other Fees Refinery Logistics Fees Distribution Costs Total distribution fees of $858 million paid to MPLX and $446 million returned to MPC through distributions pai
Slide 22: Refining & Marketing Segment Income (Loss)
Refining & Marketing Segment Income (Loss) 1Q 2020 vs. 4Q 2019 Variance Analysis 1,200 + 950 + _ 912 700 - 450 - 2 ‘Volume -100 ! S 200 4 ' Product 250 ! = ‘crude - 243! > lo J w# 50 5 | 10 -1,012 -300 + | | 5 9 -224 7 129 -93 “550 | = -206 622 -800 4Q 2019 Blended Sour Sweet Market Other Biodiesel
Slide 23: Earnings
Earnings (SMM unless otherwise noted) Refining & Marketing segment income (loss) Retail segment income Midstream segment income Corporate and other unallocated items Equity method investment restructuring gains Transaction-related costs Litigation Impairments Inventory market valuation adjustment In
Slide 24: Reconciliation
Reconciliation Net Loss Attributable to MPC to Adjusted Net Loss Attributable to MPC Net loss attributable to MPC Pre-tax adjustments: Transaction-related costs 35 91 Impairments 9,137 Inventory market valuation adjustment 3,220 Equity method investment restructuring gains (207) Out-of-period tax ad
Slide 25: Reconciliation
Reconciliation Net Income (Loss) Attributable to MPC to Adjusted EBITDA and LTM Adjusted Pro Forma EBITDA Net Income (loss) attributable to MPC (9,234) (6,590) Add: Net interest and other financial costs 322 317 302 338 1,279 Net income (loss) attributable to noncontrolling interests 261 272 (484) (
Slide 26: Reconciliation
Reconciliation Net Income Attributable to MPC to EBITDA, Adjusted EBITDA and Adjusted Pro Forma EBITDA ($MM) ‘Net Income (loss) attributable to MPC 2,389 2,524 2,852 L174 3,432 2,780 2,637 ‘Add: Net interest and other financial costs 26 216 334 564 674 1,003 1,247 Net income attributable to nonconir
Slide 27: Reconciliation
Reconciliation MPLX Net Income (Loss) to EBITDA Related to MPLX MPLX Net Income / (Loss) Add: Net interest and other financial costs Provision (benefit) for income taxes Impairments Depreciation and amortization EBITDA related to MPLX Note: Includes pro forma financials related fo ANDX 657 689 (573)
Slide 28: Reconciliation
Reconciliation Cash Provided by / Used in Operations to Operating Cash Flow Before Changes in Working Capital Cash provided by / used in operations 1,623 2,622 2,787 2,409 (768) Less changes in working capital: Changes in current receivables (1,018) (679) 280 (303) 1,899 Changes in inventories (4) 7
Slide 29: Reconciliation
Reconciliation Refining & Marketing Income (Loss) from Operations to Refining & Marketing Margin (sm) Refining & Marketing income (loss) from operations Plus: Refining operating costs" Refining depreciation and amortization Refining planned turnaround costs Distribution costs® Distribution depreciat
Slide 30: Reconciliation
Reconciliation Segment Income (Loss) from Operations to Segment Adjusted EBITDA and Adjusted EBITDA Refining & Marketing Segment Segment income (loss) from operations Add: Depreciation and amortization Refining planned turnaround costs Purchase accounting inventory effect, net of LIFO Segment Adjust
Slide 31: Reconciliation
Reconciliation Retail Income from Operations to Retail Total Margin ($MM) Retail fuel margin is defined as the price paid by consumers or direct Retail income from operations 95 159 161 613 170 493 442 477 519 dealers less the cost of refined products, including Plus (Less): transportation, consumer
Slide 32: MARATHON
MARATHON ®