Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q4 2022 Earnings Presentation
24 slides from Marathon Petroleum's earnings presentation, Jan 31, 2023
Slide 1: Fourth Quarter 2022 Earnings Conference Call
Fourth Quarter 2022 Earnings Conference Call January 31, 2023 1
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
Slide 3: Delivering on Our Commitments in 2022
Delivering on Our Commitments in 2022 Strong Commercial Superior Performance Execution Returns 96% Refining 98% Strong Completed ~$17B Utilization Full-year Capture Share Repurchase Since May 2021 $1.5B Sustained Optimized Structural Cost Reductions Commercial 30% Increase to Organization MPC Divide
Slide 4: 2023 Financial Priorities
2023 Financial Priorities Sustaining Capital Maintain safety, integrity, and reliability of our assets Dividends Secure, competitive, and growing dividend Growth Capital Disciplined growth opportunities, with focus on low carbon Share Repurchases Commitment to return capital to shareholders Strong b
Slide 5: 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
Slide 6: Fourth Quarter Highlights
Fourth Quarter Highlights $ Millions (unless otherwise noted) 4Q22 Adjusted Earnings per Share ($/share)(a) $6.65 Adjusted EBITDA $5,802 Cash Flow from Operations, excl. changes in working capital(b) $4,368 Dividends $351 Share Repurchases(c) $1,837 (a) Defined as adjusted diluted income per share,
Slide 7: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income 4Q 2022 vs. 3Q 2022 Adjusted EBITDA Reconciliation to Net Income 8,000 6,834 236 6,000 5,802 -865 -83 -84 $ Millions -1,239 4,000 3,321 -1,478 2,000 0 3Q 2022 Refining & Midstream Corporate 4Q 2022 Adjustments Turnaround Interest, 4Q 2022 Adj. EBITDA Marketing Adj. EBIT
Slide 8: Refining & Marketing
Refining & Marketing 4Q 2022 vs. 3Q 2022 6,000 5,496 94% utilization -387 -161 61 4,631 -9 -30 -339 4,000 $ Millions 109% capture Stable controllable 2,000 costs 0 3Q 2022 USGC Mid-Con West Coast Operating Distribution Other 4Q 2022 Adj. EBITDA Margin Margin Margin Costs Costs Adj. EBITDA (a)
Slide 9: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 8,000 631 7,499 Total system capture(a) of 109%, key 6,868 factors included: Solid commercial execution $ Millions 6,000 109% 100% Light product margin tailwinds Favorable inventory impacts Favorable pricing of secondary 4,000 R&M Margin Cap
Slide 10: Midstream
Midstream 4Q 2022 vs. 3Q 2022 1,498 1,500 19 1,415 -102 Stable base and growing business 1,000 $ Millions Impacts associated with lower NGL prices 500 0 3Q 2022 MPLX Other 4Q 2022 Adj. EBITDA Midstream Adj. EBITDA 10
Slide 11: Total Consolidated Cash Flow
Total Consolidated Cash Flow 4Q 2022 4,368 15,000 -72 286 -1,255 -22 -482 -351 MPC - 22 11,770 $ Millions MPLX - 11,135 -1,837 10,000 5,000 9/30/2022 Cash Flow Changes in Capital Net Debt Return of Other Dividends Share 12/31/2022 Cash + from Operations, Working Capital Expenditures, (b) Capital to
Slide 12: Financial Discipline: 2023 Capital Outlook
Financial Discipline: 2023 Capital Outlook Low Carbon ~40% 2022 2023 Outlook of Growth Capital $MM Refining & Marketing 1,508 1,250 Growth – Traditional 476 550 R&M Growth – Low Carbon 757(a) 350 Maintenance Maintenance 275 350 R&M Growth MPC Midstream 8 - Corporate/Other (b) 108 50 MPC Total 1,624
Slide 13: First-Quarter 2023 Outlook
First-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 $
Slide 14: Questions & Answers
7 72= BEE == [NT A = 22) a
Slide 15: Appendix
Appendix 15
Slide 16: 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 Dec 31, 2022 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($MM except ratio data) Cash(d) 11,532 238 11,770 1.0 Total Debt 6,904 19,796 26,700 0.0 2023 2024 2025 2026 202
Slide 17: Refining & Marketing Segment Adjusted EBITDA
Refining & Marketing Segment Adjusted EBITDA 4Q 2022 8,000 7,499 631 989 6,077 -111 Volume + 260 6,000 Product + 1,316 -87 -1,497 Crude - 945 $ Millions 4,631 -1,365 -6 4,000 2,000 0 Blended Sweet Sour Market Other R&M Margin, Operating Distribution Other R&M Crack Differential Differential Structur
Slide 18: Refining & Marketing Segment Adjusted EBITDA
Refining & Marketing Segment Adjusted EBITDA 4Q 2022 vs. 3Q 2022 Variance Analysis 6,000 5,496 922 4,631 61 -9 -30 4,000 218 -1,856 -67 -104 $ Millions Volume - 139 Product + 798 Crude + 263 2,000 0 3Q 2022 Blended Sour Sweet Market Other Operating Distribution Other 4Q 2022 Segment Crack Differenti
Slide 19: Income Summary for Operations
Income Summary for Operations 2021 2022 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment income (loss) (598) 224 509 881 768 7,134 4,625 3,910 Midstream segment income 972 977 1,042 1,070 1,072 1,126 1,176 1,088 Corporate (157) (180) (186) (173) (151) (170) (173) (25
Slide 20: Reconciliation
Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC ($MM) 4Q22 4Q21 (a) Income taxes for the three and twelve months ended December 31, 2022 were Net income attributable to MPC 3,321 774 calculated by applying a combined federal and state tax rate of 22% to the p
Slide 21: Reconciliation
Reconciliation Cash Flow from Continuing Operations, Excluding Changes in Working Capital ($MM) 4Q22 FY 2022 Cash provided by operating activities from operations 4,296 16,319 Less changes: Current receivables 56 (2,315) Inventories 1,008 (787) Current accounts payable and accrued liabilities (1,136
Slide 22: Reconciliation
Reconciliation Segment Income (Loss) from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing Segment Segment income (loss) from operations (598) 224 509 881 768 7,134 4,625 3,910 Add: Depreciation and amortization 478 466 462 464 46
Slide 23: Reconciliation
Reconciliation Net Income (Loss) Attributable to MPC to Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net income (loss) attributable to MPC (242) 8,512 694 774 845 5,873 4,477 3,321 Net income attributable to noncontrolling interest 306 290 336 331 327 344 543 320 Income from discontinued
Slide 24: Reconciliation
Reconciliation Refining & Marketing Income (Loss) from Operations to Refining & Marketing Margin 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (a) Reflects the gross margin, excluding depreciation and amortization, of other Refining & Marketing income (loss) from operations (598) 224 509 881 768 7,134 4,6