Marathon Petroleum Corporation · NYSE:MPC

Marathon Petroleum — Q1 2023 Earnings Presentation

22 slides from Marathon Petroleum's earnings presentation, May 2, 2023

  1. Slide 1: First Quarter 2023 Earnings Conference Call

    First Quarter 2023 Earnings Conference Call May 2, 2023 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  Adjusted EBITDA of $5.2 billion reflecting strong execution, Strengthen despite significant planned maintenance in the Gulf Coast region Competitive Position of our Assets  MPC received MPLX distribution of $502 million in quarter Foster  Value creation from refining, midstream a

  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/ Processing

  5. Slide 5: First Quarter Highlights

    First Quarter Highlights $ Millions (unless otherwise noted) 1Q23 Earnings per Share ($/share)(a) $6.09 Adjusted EBITDA $5,218 Cash Flow from Operations, excl. changes in working capital(b) $4,155 Share Repurchases(c) $3,180 Dividends $337 (a) Defined as diluted income per share, based on weighted a

  6. Slide 6: Adjusted EBITDA to Net Income 1Q 2023 vs. 4Q 2022

    Adjusted EBITDA to Net Income 1Q 2023 vs. 4Q 2022 Adjusted EBITDA Reconciliation to Net Income 6,000 5,802 115 79 5,218 -778 4,000 $ Millions -1,157 2,724 -1,337 2,000 0 4Q 2022 Refining & Midstream Corporate 1Q 2023 Turnaround Interest, 1Q 2023 Adj. EBITDA Marketing Adj. EBITDA and D&A Taxes, and N

  7. Slide 7: Refining & Marketing 1Q 2023 vs. 4Q 2022

    Refining & Marketing 1Q 2023 vs. 4Q 2022 5,000 4,631  89% utilization 4,000 -226 47 21 3,853 -368 -228 -24  98% capture 3,000 $ Millions  Continued execution 2,000 on cost control 1,000 0 4Q 2022 USGC Mid-Con West Coast Operating Distribution Other 1Q 2023 Segment Margin Margin Margin Costs Costs

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

    Refining & Marketing Margins – Market vs. Realized 7,000 6,819 6,677 -142 Total system capture(a) of 98%, key factors included: 6,000  Solid commercial execution $ Millions 100% 98%  Light product margin tailwinds 5,000  Unfavorable inventory impacts  Headwinds from planned 4,000 R&M Margin Capt

  9. Slide 9: Midstream 1Q 2023 vs. 4Q 2022

    Midstream 1Q 2023 vs. 4Q 2022 127 1,530 1,500 1,415 -12  Segment Adj. EBITDA increased 9% year over year 1,000 $ Millions  $502 million distribution received from MPLX 500  Continued focus on disciplined, high return projects 0 4Q 2022 MPLX Other 1Q 2023 Segment Midstream Segment Adj. EBITDA Adj.

  10. Slide 10: Total Consolidated Cash Flow 1Q 2023

    Total Consolidated Cash Flow 1Q 2023 4,155 -98 182 15,000 -664 -47 -329 -337 MPC - 21 MPLX + 574 MPLX Pref B - 600 11,770 $ Millions 11,452 -3,180 10,000 5,000 12/31/2022 Cash Flow Changes in Capital Net Debt and Return of Other Dividends Share 3/31/2023 Cash + from Operations, Working Capital Expen

  11. Slide 11: Second-Quarter 2023 Outlook

    Second-Quarter 2023 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: Continued Focus to Drive Superior Returns

    Continued Focus to Drive Superior Returns First Quarter Recap Strengthen Competitive Position $3.9 Billion $664 Million of our Assets Value Creation R&M Segment Foster Investments(a) Adj. EBITDA Low-Cost Culture $502 Million $3.5 Billion Improve Cash Distribution Commercial Capital Returned from MPL

  13. Slide 13: Questions & Answers

    Questions & Answers

  14. Slide 14: Appendix

    Appendix 14

  15. Slide 15: 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 Mar 31, 2023 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($MM except ratio data) Cash(d) 11,059 393 11,452 1.0 Total Debt 6,886 20,394 27,280 0.0 2023 2024 2025 2026 202

  16. Slide 16: Refining & Marketing Segment Adjusted EBITDA 1Q 2023

    Refining & Marketing Segment Adjusted EBITDA 1Q 2023 8,000 876 15 6,677 5,966 -142 6,000 -38 Volume + 308 Product + 648 Crude - 1,098 -1,450 $ Millions 4,000 3,853 -1,344 -30 2,000 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structure

  17. Slide 17: Refining & Marketing Segment Adjusted EBITDA Variance Analysis

    Refining & Marketing Segment Adjusted EBITDA 1Q 2023 vs. 4Q 2022 Variance Analysis 4,631 49 126 -111 -113 4,000 47 21 3,853 -773 -24 Volume + 48 Product - 668 $ Millions Crude - 153 2,000 0 4Q 2022 Blended Sour Sweet Market Other Operating Distribution Other 1Q 2023 Segment Crack Differential Differ

  18. Slide 18: Income Summary for Operations

    Income Summary for Operations 2022 2023 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income 768 7,134 4,625 3,910 3,032 Midstream segment income 1,072 1,126 1,176 1,088 1,213 Corporate (151) (170) (173) (259) (184) Income from continuing operations before items not alloca

  19. Slide 19: Reconciliation: Cash Flow from Operations, Excluding Working Capital

    Reconciliation Cash Flow from Operations, Excluding Changes in Working Capital ($MM) 1Q23 Cash provided by operating activities 4,057 Less changes: Current receivables 3,350 Inventories (1,441) Current accounts payable and accrued liabilities (2,100) Fair value of derivative instruments 95 Right of

  20. Slide 20: Reconciliation: Segment Income to Adjusted EBITDA

    Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q Refining & Marketing Segment Segment income from operations 768 7,134 4,625 3,910 3,032 Add: Depreciation and amortization 461 475 459 455 464 Refining planned turnaround costs

  21. Slide 21: Reconciliation: Net Income Attributable to MPC to Adjusted EBITDA

    Reconciliation Net Income Attributable to MPC to Adjusted EBITDA 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q Net income attributable to MPC 845 5,873 4,477 3,321 2,724 Net income attributable to noncontrolling interest 327 344 543 320 360 Income from discontinued operations, net of tax - - - (72) - Provision for

  22. Slide 22: Reconciliation: R&M Adjusted EBITDA to R&M Margin

    Reconciliation Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Margin 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment adjusted EBITDA 1,374 7,760 5,496 4,631 3,853 Plus (Less): Depreciation and amortization (461) (475) (459) (455) (464) Refining planned turnaround co

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