Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2018 Earnings Presentation
25 slides from Marathon Petroleum's earnings presentation, Apr 30, 2018
Slide 1: First-Quarter 2018 Earnings
First-Quarter 2018 Earnings April 30, 2018 1
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation (“MPC“). These forward-looking statements relate to, among other things, the proposed transaction between MPC and Andeavor (“ANDV”)
Slide 3: Additional Information
Additional Information Additional Information and Where to Find It In connection with the proposed transaction, a registration statement on Form S-4 will be filed with the SEC. INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WIT
Slide 4: First-Quarter Highlights
First-Quarter Highlights Reported first-quarter earnings of $37 million, or $0.08 per diluted share, and income from operations of $440 million Reported record Midstream segment income from operations of $567 million, largely driven by MPLX Completed significant Galveston Bay refinery turnarou
Slide 5: First-Quarter 2018 Earnings
First-Quarter 2018 Earnings 1Q 2018 1Q 2017 Earnings* $37 MM $30 MM Earnings per Diluted Share* $0.08 $0.06 Earnings* Earnings per Diluted Share* 3,500 $3,432 $6.70 7 3,000 6 2,500 2,016 5 $/Share 4.09 $MM 2,000 4 1,500 3 903 1,000 2 1.77 500 1 483 30 $37 0.93 0.06 $0.08 0 0 2017 2018 2017 2018 1Q 2
Slide 6: Earnings 1Q 2018 vs. 1Q 2017 Variance Analysis
Earnings* 1Q 2018 vs. 1Q 2017 Variance Analysis 200 258 Feb. 1 Dropdown: (6) 19 $181 MM 150 (34) 100 $MM 50 37 30 Feb. 1 Dropdown: ($181) MM (127) 0 -50 (63) (40) -100 1Q 2017 Refining & Speedway Midstream** Items not Interest and Income Noncontrolling 1Q 2018 Marketing** Allocated to Other Financin
Slide 7: Refining & Marketing Segment Income
Refining & Marketing Segment Income 1Q 2018 vs. 1Q 2017 Variance Analysis 150 89 100 135 50 (41) 73 9 $MM 0 -50 (100) (7) Feb. 1 Dropdown: $68 MM (70) Crude 66 -100 Product (61) Volumetric (12) -150 (221) (133) 1Q 2017 *LLS **Sweet/ **LLS/WTI **LLS **Market Other Direct Other 1Q 2018 6-3-2-1 Sour Di
Slide 8: Speedway Segment Income
Speedway Segment Income 1Q 2018 vs. 1Q 2017 Variance Analysis 160 140 135 (1) (1) 120 (21) 100 95 (15) (2) $MM 80 60 40 20 0 1Q 2017 Light Product Merchandise Operating Depreciation Other 1Q 2018 Margin Margin Expense 8
Slide 9: Midstream Segment Income
Midstream Segment Income 1Q 2018 vs. 1Q 2017 Variance Analysis 700 292 600 567 Feb. 1 Dropdown: $181 MM (34) 500 400 $MM 309 300 200 100 0 1Q 2017 MPLX* MPC Retained Equity and Other 1Q 2018 Affiliates* *In the 1Q 2018 results, MPLX includes approximately $32 million of equity method income that pri
Slide 10: Total Consolidated Cash Flow
Total Consolidated Cash Flow 1Q 2018 8,000 4,293 7,000 6,000 (796) 5,000 23 4,657 (1,546) (195) 796 $MM 4,000 3,015 3,000 (933) 2,000 1,000 0 12/31/2017 Operating Working Net Debt Cash Capital Return of Distributions to Other 3/31/2018 Cash Cash Flow Capital Expenditures Capital to Noncontrolling Ca
Slide 11: Liquidity and Capitalization/Select Cash-Flow Data
Liquidity and Capitalization/Select Cash-Flow Data MPC MPLX MPC As of March 31, 2018 Excluding Consolidated Adjustments(a) MPLX ($MM except ratio data) Debt 17,258 11,862 5,396 Mezzanine equity 1,000 1,000 - Equity 18,863 8,385 10,478 Total capitalization 37,121 21,247 15,874 Debt-to-capital ratio (
Slide 12: 2Q 2018 Outlook
2Q 2018 Outlook Other Total Corporate Percent of Sour Crude Oil Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced Throughput and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Percentage Maintenance Amortization Cost** Throughput* C
Slide 13: Appendix
Appendix 13
Slide 14: 2018 Capital Outlook
2018 Capital Outlook Excluding Potential Future Acquisitions MPC excluding MPLX ~$1.6 B Refining & Marketing (R&M) – $950 MM 24% Maintenance – ~$550 MM 60% Refining & MPLX Marketing Speedway – $530 MM Other – $100 MM MPLX ~$2.4 B Growth – ~$2.2 B 13% Speedway Maintenance – $190 MM 3% Oth
Slide 15: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 1Q 2018 2018 Outlook Refining & Marketing (R&M) 191 950 Speedway 39 530 Midstream, including MPLX 482 2,405 Corporate and Other 18 85 Total Capital Expenditures & Investments(a) 730 3,970 (a)1Q 2018 actuals and 2018 outlook excludes capitalized interest. 15
Slide 16: Earnings
Earnings 2017 2018 ($MM unless otherwise noted) (a)We adopted Accounting Standards 1Q 2Q 3Q 4Q 1Q Update 2017-07, Retirement Benefits Presentation of Pension and Refining & Marketing segment income (loss) (70) 562 1,097 732 (133) Postretirement Cost, as of Jan. 1, 2018, and applied the standard Spee
Slide 17: Reconciliation: Adjusted EBITDA to Net Income Attributable to MPC
Reconciliation Adjusted EBITDA to Net Income Attributable to MPC 2017 2018 ($MM) LTM 2Q 3Q 4Q 1Q Net Income attributable to MPC 483 903 2,016 37 3,439 Add: Net interest and other financial costs 158 156 159 183 656 Net income attributable to inco noncontrolling interests 91 101 109 198 499 Provision
Slide 18: Reconciliation: Adjusted EBITDA Related to MPLX
Reconciliation Adjusted EBITDA Related to MPLX to MPLX Net Income 2017 2018 ($MM) LTM 2Q 3Q 4Q 1Q MPLX Net Income 191 217 241 423 1,072 Add: Net interest and other financial costs 87 93 96 130 406 Provision (benefit) for income taxes 2 1 (2) 4 5 Depreciation and amortization 164 164 168 176 672 Adju
Slide 19: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations 2017 2018 ($MM) 2Q 3Q 4Q 1Q Net cash provided by (used in) operations(a) 853 1,906 2,745 (137) Less changes in working capital: Changes in current receivables 11 (640) (797) 96 Changes i
Slide 20: Reconciliation of Refining & Marketing Margin to Income from Operations
Reconciliation of Refining & Marketing Margin to Refining & Marketing Income (Loss) from Operations ($MM) 1Q 2018 1Q 2017 Refining & Marketing loss from operations (133) (70) Plus (Less): Refinery direct operating costs(a) 1,081 1,202 Refinery depreciation & amortization 236 251 Other: Operating exp
Slide 21: Reconciliation of Speedway Total Margin to Income from Operations
Reconciliation of Speedway Total Margin to Speedway Income from Operations ($MM) 1Q 2018 1Q 2017 (a)Speedway gasoline and distillate margin is defined as the price paid by consumers less the cost of refined products, including transportation, Speedway income from operations 95 135 consumer excise ta
Slide 22: Refining & Marketing Segment Income 1Q 2018 vs. 4Q 2017
Refining & Marketing Segment Income 1Q 2018 vs. 4Q 2017 Variance Analysis 850 750 732 650 550 84 Crude (79) 450 Product 14 350 (309) Volumetric (113) (128) $MM 250 (47) Feb. 1 Dropdown: (51) ($249) MM 150 25 50 (178) -50 -150 (261) (133) -250 4Q 2017 *LLS **Sweet/ **LLS/WTI **LLS **Market Other ***D
Slide 23: Refining & Marketing Indicative Margin
Refining & Marketing Indicative Margin 1Q 2018 2,000 313 1,814 122 1,500 628 (41) (11) Crude (373) Product 478 Volumetric 208 1,000 803 $MM 500 (1,318) 0 (629) (133) -500 *LLS **Sweet/ **LLS/WTI **LLS **Market Other R&M Direct Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Margin Margin Ope
Slide 24: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 200 $171 150 $132 $150 $91 $99 $102 $114 $MM 100 $69 $73 50 $27 $32 $35 $10 $15 $16 $16 $18 $18 $20 $20 $24 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 LP Distributions GP Distributions, incl
Slide 25: MARATHON
MARATHON ®