Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2019 Earnings Presentation
25 slides from Marathon Petroleum's earnings presentation, May 8, 2019
Slide 1: First Quarter 2019 Conference Call
First Quarter 2019 Conference Call May 8, 2019
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information Forward-Looking Statements Additional Information and Where to Find It This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation (MPC). These In connection with th
Slide 3: Strategic Overview & Updates
Strategic Overview & Updates 3
Slide 4: First Quarter Highlights
First Quarter Highlights $ Millions (unless otherwise noted) 1Q19 Net Loss $(7) Income from Operations $669 Cash from Operations, excluding Working Capital $1,153 Adjusted EBITDA(a) $1,472 Capital Expenditures(b) $1,331 Share Repurchases + Dividends $1,239 Parent Level Leverage(a) 1.4x (a) See recon
Slide 5: Earnings
Earnings(a) 1Q 2019 vs. 1Q 2018 Variance Analysis 300 +14 Income (loss) from Operations +75 1Q19 1Q18 250 by Segment ($ Millions) 200 +341 Refining & Marketing (334) (133) 150 Midstream 908 567 -123 100 Retail 170 95 $MM 50 37 -82 Items not allocated to segments: 0 Corporate and other unallocated it
Slide 6: Total Consolidated Cash Flow
Total Consolidated Cash Flow 1Q 2019 4,500 4,000 +573 3,500 +470 3,000 +1,153 2,500 $MM -1,566 2,000 1,687 1,500 1,000 +29 877 -1,239 -230 500 0 12/31/2018 Operating Cash Working Net Debt Capital Return of Net Other 3/31/2019 Cash Balance Flow before Capital Expenditures, Capital to Distributions to
Slide 7: Realized Synergies – 1st Quarter 2019
Realized Synergies – 1st Quarter 2019 $133 million of realized synergies in 1Q19 – Refining & Marketing = $89 million • Refining = $55 million • Crude oil supply and logistics = $30 million • Marketing / Other = $4 million – Corporate = $29 million – Retail = $15 million Realized synergies are i
Slide 8: Regional Margins
Regional Margins Beginning 1Q19, Refining & Marketing margin(a) by region is now being provided Region R&M Margin(a) ($/bbl) Gulf Coast $7.82 Mid-Continent $15.26 West Coast $10.94 Refining & Marketing Margin(a) $11.17 Due to differences in accounting policies and allocation of refineries into t
Slide 9: Second-Quarter 2019 Outlook
Second-Quarter 2019 Outlook Other Corporate Turnaround Depreciation Other Total Crude Charge/ Total Sweet Sour and Other and Major and Manufacturing Direct Throughput 1 Feedstocks Throughput 1 Crude Crude Unallocated Maintenance Amortization Cost 2 Operating Costs Throughput 1 Items 3 in MBPD Percen
Slide 10: Questions & Answers
Questions & Answers Strategic Overview
Slide 11: Appendix
Appendix 11
Slide 12: Adjusted EBITDA
Adjusted EBITDA(a) 1Q 2019 vs. 1Q 2018 Variance Analysis 1,800 1,600 +122 1,472 +467 1,400 -59 1,200 968 1,000 $MM -26 800 600 400 200 0 1Q 2018 Refining & Midstream Retail Items not 1Q 2019 Marketing Allocated to Segments (b) (a) See reconciliation table in the appendix. This number does not includ
Slide 13: Refining & Marketing Segment Income
Refining & Marketing Segment Income 1Q 2019 vs. 1Q 2018 Variance Analysis 2,000 1,500 Volume Effect +47 +367 1,000 +793 -120 $MM -97 500 +555 -809 -259 0 -133 -678 -334 -500 1Q 2018 Mid-Con USGC West Coast Sour Sweet Market Other Direct Other 1Q 2019 WTI 3-2-1 LLS 3-2-1 ANS 3-2-1 Differentials Diffe
Slide 14: Refining & Marketing Indicative Margin
Refining & Marketing Indicative Margin 1Q 2019 4,000 +418 +36 +412 3,100 3,000 -344 2,578 2,000 $MM 1,000 -2,126 0 -1,308 -334 -1,000 Blended Crack Sweet Sour Market Other R&M Direct Other R&M Spread Differential Differential Structure Margin Margin Operating Segment (a) (b) (b) (b) Costs Income (a)
Slide 15: Midstream Segment Income
Midstream Segment Income 1Q 2019 vs. 1Q 2018 Variance Analysis 1,000 +220 908 800 +121 600 567 $MM 400 200 0 1Q 2018 MPLX ANDX 1Q 2019 (a) (a) Andeavor Logistics LP, acquired by Marathon on October 1, 2018 15
Slide 16: Retail Segment Income
Retail Segment Income 1Q 2019 vs. 1Q 2018 Variance Analysis 600 +88 400 +39 $MM +173 200 +21 170 -199 95 -47 0 1Q 2018 Fuel Fuel Merchandise Operating Depreciation Other 1Q 2019 Volume Margin Margin Expense (a) (a) Reflects operating, selling, general and administrative expenses. 16
Slide 17: Capitalization and Select Balance Sheet Data
Capitalization and Select Balance Sheet Data MPC As of March 31, 2019 MPC MPLX ANDX Excluding Consolidated Adjustments Adjustments(a) (a) MPLX & ($MM except ratio data) ANDX Total Debt 28,115 13,833 5,132 9,150 Total Equity (b) 43,862 9,330 3,829 30,703 Debt-to-Capital Ratio 39% - - 23% Cash and cas
Slide 18: Earnings
Earnings 2018 2019 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income (loss) (133) 1,025 666 923 (334) Retail segment income 95 159 161 613 170 Midstream segment income 567 617 679 889 908 Corporate and other unallocated items (89) (81) (99) (233) (191) Capline restructu
Slide 19: Reconciliation
Reconciliation Net Income Attributable to MPC to Adjusted EBITDA and LTM Adjusted Pro Forma EBITDA ($MM) 2Q ‘18 3Q ‘18 4Q ‘18 1Q ‘19 LTM Net Income (loss) attributable to MPC 1,055 737 951 (7) 2,736 Add: Net interest and other financial costs 195 240 385 306 1,126 Net income attributable to noncontr
Slide 20: Reconciliation
Reconciliation MPLX Net Income to Adjusted EBITDA Related to MPLX 2018 2019 ($MM) LTM 2Q 3Q 4Q 1Q MPLX Net Income 456 516 439 509 1,920 Add: Net interest and other financial costs 151 153 227 171 702 Provision (benefit) for income taxes 1 3 - (2) 2 Depreciation and amortization 188 201 201 211 801 A
Slide 21: Reconciliation
Reconciliation ANDX Net Income to Adjusted EBITDA Related to ANDX 2018 2019 ($MM) LTM 2Q 3Q 4Q 1Q ANDX Net Income 132 166 171 157 626 Add: Net interest and other financial costs 60 57 61 61 239 Provision (benefit) for income taxes - - - - - Depreciation and amortization 93 85 101 101 380 Adjusted EB
Slide 22: Reconciliation
Reconciliation Cash Provided by (used in) Operations to Operating Cash Flow Before Changes in Working Capital 2018 2019 ($MM) 2Q 3Q 4Q 1Q Cash provided by (used in) operations 2,386 1,182 2,727 1,623 Less changes in working capital: Changes in current receivables (321) (484) 2,298 (1,037) Changes in
Slide 23: Reconciliation
Reconciliation Refining & Marketing Income from Operations to Refining & Marketing Margin ($MM) 1Q 2019 1Q 2018 Refining & Marketing loss from operations (334) (133) Plus: Refinery direct operating costs(a) 1,739 1,081 Refinery depreciation and amortization 387 236 Other: Operating expenses, net(a)(
Slide 24: Reconciliation
Reconciliation Retail Income from Operations to Retail Total Margin ($MM) 1Q 2019 1Q 2019 Retail income from operations 170 95 Plus (Less): Operating, selling, general and administrative expenses 583 384 Depreciation and amortization 126 79 Income from equity method investments (17) (14) (a)Retail f
Slide 25: MARATHON
MARATHON ®