Marathon Petroleum Corporation · NYSE:MPC

Marathon Petroleum — Q2 2022 Earnings Presentation

24 slides from Marathon Petroleum's earnings presentation, Aug 2, 2022

  1. Slide 1: Second Quarter 2022 Earnings Conference Call

    Second Quarter 2022 Earnings Conference Call August 2, 2022 1

  2. 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

  3. Slide 3: Business Update

    Business Update  Second-quarter adjusted EBITDA of $9.1 billion, as the refining system ran at full utilization to meet demand Strengthen Competitive Position  Return of capital of our Assets - ~$4.1 billion repurchased since last earnings call - Announced separate and incremental $5 billion share

  4. Slide 4: Challenging Ourselves to Lead in Sustainable Energy

    Challenging Ourselves to Lead in Sustainable Energy STRENGTHEN RESILIENCY INNOVATE FOR THE FUTURE EMBED SUSTAINABILITY Dickinson, North Dakota – Renewable Diesel Facility Scope 1 & 2 GHG Intensity 20% of annual cash bonus program 30% Target: 30% reduction by 2030 from 184 million gallons/ Second Lar

  5. Slide 5: Second Quarter Highlights

    Second Quarter Highlights $ Millions (unless otherwise noted) 2Q22 Adjusted Earnings per Share ($/share)(a) $10.61 Adjusted EBITDA $9,060 Cash Flow from Operations, excl. changes in working capital(b) $6,916 Dividends $313 Share Repurchases(c) $3,331 (a) Based on weighted average diluted shares. (b)

  6. Slide 6: Adjusted EBITDA to Net Income

    Adjusted EBITDA to Net Income 2Q 2022 vs. 1Q 2022 Adjusted EBITDA Reconciliation to Net Income 10,000 53 9,060 238 6,386 -18 8,000 -970 6,000 5,873 $ Millions -2,455 4,000 2,639 2,000 0 1Q 2022 Refining & Midstream Corporate 2Q 2022 Adjustments Turnaround, Interest, 2Q 2022 Adj. EBITDA Marketing Adj

  7. Slide 7: Refining & Marketing

    Refining & Marketing 2Q 2022 vs. 1Q 2022 1,145 8,000 34 7,760 -118 -108 2,842  Full utilization 6,000 $ Millions  96% capture 2,591 4,000  Higher energy costs 2,000 1,374 0 1Q 2022 USGC Mid-Con West Coast Operating Distribution Other 2Q 2022 Adj. EBITDA Margin Margin Margin Costs Costs Adj. EBITD

  8. Slide 8: Refining & Marketing Margins – Market vs. Realized

    Refining & Marketing Margins – Market vs. Realized 12,000 10,956 10,482 Total system capture(a) of 96%, key factors 10,000 -474 included:  Solid commercial execution $ Millions 8,000 100% 96%  Secondary product margin headwinds 6,000  Light product margin tailwinds 4,000 R&M Margin Capture R&M Ma

  9. Slide 9: Midstream

    Midstream 2Q 2022 vs. 1Q 2022 1,500 54 1,456 1,403 -1  Through-cycle EBITDA 1,000 stability $ Millions  Continued commitment to strict capital discipline 500 0 1Q 2022 MPLX Other 2Q 2022 Adj. EBITDA Midstream Adj. EBITDA 9

  10. Slide 10: Total Consolidated Cash Flow

    Total Consolidated Cash Flow 2Q 2022 20,000 6,916 80 258 -546 -313 -19 -323 15,000 $ Millions MPC - 19 MPLX 0 13,319 -3,331 10,597 10,000 5,000 3/31/2022 Cash Flow Changes in Capital Net Debt Return of Other Dividends Share 6/30/2022 Cash + from Operations, Working Capital Expenditures, (b) Capital

  11. Slide 11: Third-Quarter 2022 Outlook

    Third-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 $

  12. Slide 12: Questions & Answers

    7 72= BEE == [NT A = 22) a

  13. Slide 13: Appendix

    Appendix 13

  14. Slide 14: 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 June 30, 2022 MPLX Adjustments (c) Consolidated 2.0 ($MM except ratio data) $B Cash(d) 13,021 298 13,319 1.0 Total Debt 6,999 19,775 26,774 0.0 2022 2023 2024 2025 2026 2027

  15. Slide 15: Commitment to Capital Return

    Commitment to Capital Return Separate and $15 Billion Incremental Repurchase Program $5 Billion Authorization 5.0  ~$4.1 billion repurchased since last earnings call(a) 2.9 $ Billions  Completed $12.1 billion(b) 15.0 12.1  $5.0 billion separate and incremental authorization Completed Share Repurc

  16. Slide 16: MPC Shares Outstanding

    MPC Shares Outstanding  4Q21 ended with 579 million shares  1Q22 ended with 545 millions of shares million shares 652 638 622 579 545  2Q22 ended with 513 513 499 million shares 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 7/31/22  499 million shares as of July 31 16

  17. Slide 17: Refining & Marketing Segment Adjusted EBITDA

    Refining & Marketing Segment Adjusted EBITDA 2Q 2022 12,000 632 10,699 10,482 -326 10,000 -49 -474 Volume 449 Product -104 -1,448 7,760 8,000 Crude -819 -1,329 55 $ Millions 6,000 4,000 2,000 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differentia

  18. Slide 18: Refining & Marketing Segment Adjusted EBITDA

    Refining & Marketing Segment Adjusted EBITDA 2Q 2022 vs. 1Q 2022 Variance Analysis 10,000 6,483 91 258 7,760 8,000 -36 -218 -118 -108 34 Volume +143 6,000 Product - 206 Crude +321 $ Millions 4,000 2,000 1,374 0 1Q 2021 Blended Sour Sweet Market Other Operating Distribution Other 2Q 2022 Segment Crac

  19. Slide 19: Income Summary for Operations

    Income Summary for Operations 2021 2022 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income (loss) (598) 224 509 881 768 7,134 Midstream segment income 972 977 1,042 1,070 1,072 1,126 Corporate (157) (180) (186) (173) (151) (170) Income from continuing operations befor

  20. Slide 20: Reconciliation

    Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC ($MM) 2Q22 2Q21 (a) Income taxes for the three months Net income attributable to MPC 5,873 8,512 ended June 30, 2022 was calculated by applying a combined federal and state tax Pre-tax adjustments: rate of 22% t

  21. Slide 21: Reconciliation

    Reconciliation Cash Flow from Continuing Operations, Excluding Changes in Working Capital ($MM) 2Q22 (a) Excludes net cash used of $44 million Cash provided by operating activities from operations(a) 6,996 in discontinued operations Less changes: Current receivables (1,655) Inventories (1,556) Curre

  22. Slide 22: Reconciliation

    Reconciliation Segment Income (Loss) from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing Segment Segment income (loss) from operations (598) 224 509 881 768 7,134 (a) As of August 2, 2020 Speedway Add: Depreciation and amortization 47

  23. Slide 23: Reconciliation

    Reconciliation Net Income (Loss) Attributable to MPC to Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Net income (loss) attributable to MPC (242) 8,512 694 774 845 5,873 Net income attributable to noncontrolling interest 306 290 336 331 327 344 Income from discontinued operations, net of tax (23

  24. Slide 24: 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 2Q related operations included in the Refining & Refining & Marketing income (loss) from op

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