Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q3 2022 Earnings Presentation
25 slides from Marathon Petroleum's earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
Third Quarter 2022 Earnings Conference Call November 1, 2022 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: Business Update
Business Update Third-quarter adjusted EBITDA of $6.8 billion reflecting improving operational and commercial execution Strengthen Competitive Position MPLX increases distribution 10%; MPC expects to receive a total of of our Assets $2 billion on an annual basis Return of capital Foster Low-Co
Slide 4: Martinez Renewables – Joint Venture
Martinez Renewables – Joint Venture Marathon Petroleum and Neste Closed JV on September 21 Neste contributed $400 million plus 50% of capital spent to date JV project on budget at $1.2 billion Phase 1 mechanical completion expected by year-end Strategic partnership enhances value creation
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: Third Quarter Highlights
Third Quarter Highlights $ Millions (unless otherwise noted) 3Q22 Adjusted Earnings per Share ($/share)(a) $7.81 Adjusted EBITDA $6,834 Cash Flow from Operations, excl. changes in working capital $4,460 Dividends $285 Share Repurchases(b) $3,908 (a) Based on weighted average diluted shares. (b) Cash
Slide 7: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income 3Q 2022 vs. 2Q 2022 Adjusted EBITDA Reconciliation to Net Income 10,000 9,060 8,000 1,030 42 6,834 6,000 -2,264 -4 -1,178 $ Millions 4,477 4,000 -2,209 2,000 0 2Q 2022 Refining & Midstream Corporate 3Q 2022 Adjustments Turnaround Interest, 3Q 2022 Adj. EBITDA Marketing
Slide 8: Refining & Marketing 3Q 2022 vs. 2Q 2022
Refining & Marketing 3Q 2022 vs. 2Q 2022 98% utilization 8,000 7,760 97% capture -980 6,000 Stable controllable -762 5,496 -354 -110 -27 -31 costs Higher energy $ Millions 4,000 costs Higher activity 2,000 associated with turnarounds Non-recurring 0 2Q 2022 USGC Mid-Con West Coast Operat
Slide 9: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 8,678 8,386 -292 Total system capture(a) of 97%, key factors 8,000 included: Solid commercial execution $ Millions 100% 97% 6,000 Secondary products headwinds 4,000 R&M Margin Capture R&M Margin, Indicator Impact excluding LIFO Inventory Charge
Slide 10: Midstream 3Q 2022 vs. 2Q 2022
Midstream 3Q 2022 vs. 2Q 2022 1,456 40 2 1,498 1,500 Stable base and growing 1,000 business $ Millions Continued commitment to strict capital discipline 500 0 2Q 2022 MPLX Other 3Q 2022 Adj. EBITDA Midstream Adj. EBITDA 10
Slide 11: Total Consolidated Cash Flow
Total Consolidated Cash Flow 3Q 2022 20,000 4,460 790 15,000 -1,946 -756 -50 -285 $ Millions 13,319 -489 Incl tax payment MPC - 30 of $2.3B MPLX - 20 11,135 -3,908 10,000 5,000 6/30/2022 Cash Flow Changes in Capital Net Debt Return of Other Dividends Share 9/30/2022 Cash + from Operations, Working C
Slide 12: Completed $15 Billion Return of Capital Commitment
Completed $15 Billion Return of Capital Commitment Repurchased ~30% of shares outstanding at an average price of $78(a) millions of shares 652 638 622 579 545 513 468 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 Shares outstanding at end of $15 billion repurchase (b) Note: For the respective bal
Slide 13: MPC Update on Financial Priorities
MPC Update on 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 renewables Share Repurchases Commitment to return capital to shareholders
Slide 14: 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 Sept 30, 2022 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($MM except ratio data) Cash(d) 11,014 121 11,135 1.0 Total Debt 6,923 19,779 26,702 0.0 2022 2023 2024 2025 20
Slide 15: Fourth-Quarter 2022 Outlook
Fourth-Quarter 2022 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 16: Questions & Answers
7 72= BEE == [NT A = 22) a
Slide 17: Appendix
Appendix 17
Slide 18: Refining & Marketing Segment Adjusted EBITDA 3Q 2022
Refining & Marketing Segment Adjusted EBITDA 3Q 2022 10,000 1,056 8,386 7,933 17 -329 8,000 -291 Volume + 399 Product + 518 -1,558 6,000 Crude - 1,208 24 5,496 $ Millions -1,356 4,000 2,000 0 Blended Sweet Sour Market Other R&M Margin, Operating Distribution Other R&M Crack Differential Differential
Slide 19: Refining & Marketing Segment Adjusted EBITDA Variance Analysis
Refining & Marketing Segment Adjusted EBITDA 3Q 2022 vs. 2Q 2022 Variance Analysis 10,000 8,000 7,760 6,000 66 183 5,496 424 $ Millions -3 -110 -27 -31 -2,766 Volume - 50 4,000 Product + 622 Crude - 389 2,000 0 2Q 2022 Blended Sour Sweet Market Other Operating Distribution Other 3Q 2022 Segment Crac
Slide 20: Income Summary for Operations
Income Summary for Operations 2021 2022 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing segment income (loss) (598) 224 509 881 768 7,134 4,625 Midstream segment income 972 977 1,042 1,070 1,072 1,126 1,176 Corporate (157) (180) (186) (173) (151) (170) (173) Income from contin
Slide 21: Reconciliation
Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC ($MM) 3Q22 3Q21 (a) Income taxes for the three months Net income attributable to MPC 4,477 694 ended September 30, 2022 was calculated by applying a combined federal Pre-tax adjustments: and state tax rate of 22
Slide 22: Reconciliation
Reconciliation Cash Flow from Continuing Operations, Excluding Changes in Working Capital ($MM) 3Q22 Cash provided by operating activities from operations 2,514 Less changes: Current receivables 3,911 Inventories 1,184 Current accounts payable and accrued liabilities (7,061) Fair value of derivative
Slide 23: Reconciliation
Reconciliation Segment Income (Loss) from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing Segment Segment income (loss) from operations (598) 224 509 881 768 7,134 4,625 Add: Depreciation and amortization 478 466 462 464 461 475 459
Slide 24: Reconciliation
Reconciliation Net Income (Loss) Attributable to MPC to Adjusted EBITDA 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net income (loss) attributable to MPC (242) 8,512 694 774 845 5,873 4,477 Net income attributable to noncontrolling interest 306 290 336 331 327 344 543 Income from discontinued operations, n
Slide 25: Reconciliation
Reconciliation Refining & Marketing Income (Loss) from Operations to Refining & Marketing Margin 2021 2022 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q (a) Reflects the gross margin, excluding depreciation and amortization, of other Refining & Marketing income (loss) from operations (598) 224 509 881 768 7,134 4,625