Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q2 2014 Earnings Presentation
21 slides from Marathon Petroleum's earnings presentation, Jul 31, 2014
Slide 1: Second Quarter 2014 Earnings Conference Call and Webcast
Second Quarter 2014 Earnings Conference Call and Webcast July 31, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements relate to, among other things, MPC's expectations, estimates and projections concerning MPC business and operations. You can identify forwa
Slide 3: Highlights
Highlights Reported earnings of $855 million Increased dividend 19 percent, to $0.50 per share Executed $459 million of share repurchases during second quarter Increased share repurchase authorization by $2 billion Exercised option to acquire 35 percent interest in Southern Access Extensio
Slide 4: 2Q 2014 Earnings
2Q 2014 Earnings* 2Q 2014 2Q 2013 Earnings $855 MM $593 MM Earnings per Diluted Share $2.95 $1.83 Earnings Earnings per Diluted Share $2,500 $8 2,112 6.64 $2,000 626 $6 2.07 $1,500 $MM 168 1,054 $4 0.54 3.60 $1,000 593 $/Share 1.83 855 $2 2.95 $500 725 199 2.17 $0 $0 0.67 2013 2014 2013 2014 1Q 2Q 3
Slide 5: Earnings: 2Q 2014 vs. 2Q 2013 Variance Analysis
Earnings* 2Q 2014 vs. 2Q 2013 Variance Analysis $1,200 $1,000 58 357 23 (3) (29) 855 $800 (141) (3) 593 $MM $600 $400 $200 $0 2Q 2013 Refining & Speedway Pipeline Corporate & Other Interest Income Noncontrolling 2Q 2014 Marketing Transportation Unallocated & Other Taxes Interests *References to Earn
Slide 6: Refining and Marketing Segment Income: 2Q 2014 vs. 2Q 2013
Refining and Marketing Segment Income 2Q 2014 vs. 2Q 2013 Variance Analysis 1,500 657 66 1,260 1,250 (153) 1,000 62 21 903 164 $MM 750 (299) (161) 500 250 0 2Q 2013 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 2Q 2014 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack vs. Margi
Slide 7: Refining and Marketing Segment Income: 2Q 2014 vs. 1Q 2014
Refining and Marketing Segment Income 2Q 2014 vs. 1Q 2014 Variance Analysis 1,500 398 1,260 1,250 (23) 1,000 568 159 (4) (92) (5) $MM 750 (103) 500 362 250 0 1Q 2014 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 2Q 2014 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack vs. Marg
Slide 8: Speedway Segment Income
Speedway Segment Income 2Q 2014 vs. 2Q 2013 Variance Analysis $140 123 $120 12 $100 94 (32) (9) $MM $80 $60 $40 $20 $0 2Q 2013 Light Product Gross Merchandise Gross Other 2Q 2014 Margin Margin 8
Slide 9: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income 2Q 2014 vs. 2Q 2013 Variance Analysis $100 12 81 $80 (1) 12 $60 58 $MM $40 $20 $0 2Q 2013 Transportation Pipeline Other 2Q 2014 Revenue Affiliates 9
Slide 10: Total Company Cash Flow
Total Company Cash Flow 2Q 2014 $3,500 1,095 $3,000 (217) (20) $2,500 (385) 2,166 (122) 67 2,125 $2,000 (459) $MM $1,500 $1,000 $500 $0 3/31/14 Operating Working Long-term Cash Capital Dividends Share Other 6/30/14 Cash Cash Flow Capital Debt, Net Expenditures, Paid Repurchases Cash Balance before A
Slide 11: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($MM) 2014 2014 2013 2013 2Q 1Q 4Q 3Q As of quarter ended: Cash and cash equivalents 2,125 2,166 2,292 2,018 Total debt 3,638 3,659 3,396 3,403 Equity 11,037 10,758 11,332 11,264 Debt-to-total-capital ratio 25% 25% 23% 23% Last Twelve Months (LTM) EBITDA 4,315 3,8
Slide 12: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders LTM Ended 6/30/14 6,000 5,000 Dividends and share repurchases* 4,000 3,128 ~1.8x of Cash capital expenditures, $MM Free Cash 3,000 Flow** acquisitions and investments Free Cash Flow** $1,736 2,000 Net cash provided by 3,406 operations 1,000 1,670 0 * $500 MM
Slide 13: 3Q 2014 Outlook
3Q 2014 Outlook Other Total Corporate Percent of Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Maintenance Amortization Cost** Throughput* Costs Items*** in MMBD Refinery Direct
Slide 14: Appendix
Marathon MARATHON § Petroleum Corporation Appendix
Slide 15: Capital Expenditures & Investments
Capital Expenditures & Investments* ($MM) 2014 Budget 2Q 2014 2014 YTD Refining & Marketing (R&M) 864 151 294 Midstream included in R&M 348 84 119 Speedway 327 44 76 Pipeline Transportation 760 64 194 Corporate and Other 133 13 38 Subtotal 2,432 356 721 Capitalized Interest 38 7 13 Total Capital Exp
Slide 16: Reconciliation: Free Cash Flow to Net Cash Provided by Operations
Reconciliation Free Cash Flow to Net Cash Provided by Operations ($MM) 2013 2014 (For the Quarter) 3Q 4Q 1Q 2Q Net cash provided by operating activities 407 1,355 766 878 Additions to property, plant and equipment (309) (473) (267) (302) Acquisitions* - - - (42) Investments (75) (38) (123) (41) Free
Slide 17: Earnings
Earnings ($MM unless otherwise noted) 2013 2014 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income 1,105 903 227 971 362 1,260 Speedway segment income 67 123 102 83 58 94 Pipeline Transportation segment income 51 58 54 47 72 81 Corporate and other unallocated items (67) (64) (59) (81) (67) (61) P
Slide 18: Reconciliation: EBITDA to Net Income Attributable to MPC
Reconciliation EBITDA to Net Income Attributable to MPC ($MM) 2012 2013 2014 4Q 1Q 2Q 3Q 4Q 1Q 2Q Net Income attributable to MPC 755 725 593 168 626 199 855 Less: Net interest and other financial income (costs) (45) (48) (45) (47) (39) (46) (48) Add: Net income attributable to noncontrolling interes
Slide 19: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations ($MM) 2013 2014 (For the Quarter) 3Q 4Q 1Q 2Q Net cash provided by operations 407 1,355 766 878 Less changes in working capital: Changes in current receivables 565 34 139 (300) Changes i
Slide 20: Refining & Marketing Indicative Gross Margin – 2Q 2014
Refining & Marketing Indicative Gross Margin – 2Q 2014 3,000 477 2,670 2,500 526 65 (15) (117) 2,000 1,734 $MM 1,500 (1,183) 1,260 (227) 1,000 500 0 *LLS *Sweet/ *LLS/WTI *LLS *Market Other R&M Direct Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Gross Gross Operating Segment Crack Deliver
Slide 21: Marathon Petroleum Corporation
Marathon MARATHON § Petroleum Corporation