Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Raymond James Institutional Investors Conference 2018
73 slides from Marathon Petroleum's conference presentation, Mar 7, 2018
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference Tim Griffith, Senior Vice President, and CFO March 7, 2018
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“) and MPLX LP (“MPLX”). These forward-looking statements relate to, among other things, expectations, estimates and projection
Slide 3: Executing Our Strategic Plan and Delivering Results
Executing Our Strategic Plan and Delivering Results Total Shareholder Return Since Spinoff Since 2011 spinoff we have: (6/30/2011) – Returned over $13 billion to our shareholders – Consistently increased dividend, 26.5% CAGR since spin 267% • Announced 15% dividend increase in January 2018 to $0.4
Slide 4: Delivering Significant Capital Returns for Our Shareholders
Delivering Significant Capital Returns for Our Shareholders Over $13 B returned to shareholders since spin 12,000 ~$3.7 B in Dividends ~$9.8 B in Share Repurchases 10,000 Repurchased ~35% 1.60 $1.52 of Outstanding Common Shares 1,400 $9,808 $1.36 1.40 8,0001,200 1.20 $1.14 1,000 $7,239 $7,436 1.00 $
Slide 5: Delivered on Strategic Actions
Delivered on Strategic Actions Exchanged for Evaluation Completed MLP-qualifying EBITDA MUTUAL BENEFITS FOR MPC AND MPLX Clear valuation for MPC’s interests in MPLX EBITDA from dropdowns and IDR exchange add substantial stable cash flow and transform MPLX into ~$30 billion market-cap After-tax
Slide 6: Operating Income per Barrel of Crude Throughput
Operating Income per Barrel of Crude Throughput* 20 MPC’s Rank 15 Competitor Range 1 2 10 2 5 $/BBL 1 3 6 1 2 2 5 3 2 7 3 3 3 3 1 3 2 0 -5 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Companies Ranked** 12 11 11 9 10 10 9 8 8 9 9 8 8 8 8 8 8 9 9
Slide 7: 2017 Accomplishments
2017 Accomplishments Refining & Marketing Speedway MPLX Earnings Increased by ~$1 B 6th straight year of record Record financial results results delivering $2 B of adjusted Robust earnings power of EBITDA in 2017 MPC’s integrated model 2nd consecutive year of ~$1 B annual EBITDA Record v
Slide 8: Galveston Bay Refinery Achievements
Galveston Bay Refinery Achievements Since February 2013 Acquisition Improved Environmental Advanced Operational Lowered Operating & Safety Performance Excellence Costs 80% reduction in environmental Reduced total cash operating 33 monthly process-unit rate incidents expenses over 20% records i
Slide 9: Positive Market Fundamentals
Positive Market Fundamentals Encouraged by a more balanced supply and demand environment – Supportive of crude oil and refined product prices throughout the year – Distillate demand expected to benefit from increased commercial activity – Gasoline demand expected to be similar to 2017 – Creates a
Slide 10: Key Strategies
Key Strategies MPLX Grow EBITDA by expanding services and geographic footprint across the hydrocarbon value chain – Focused on Marcellus, Utica, Permian and STACK basins Develop new assets and replace third-party services used by MPC Optimize the portfolio to improve earnings on existing asset
Slide 11: 2018 Capital Outlook
2018 Capital Outlook 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 13% Growth: ~$2.2 B Speedway 3% Maintenance: $190 MM Other Excludes any potential future acquisitions
Slide 12: 2018 Refining & Marketing Capital Plan
2018 Refining & Marketing Capital Plan ~$400 MM of growth capital with estimated returns greater than 20% Well-positioned to benefit from IMO in 2020 Incremental Distillate (MBPD) – Sulfur content of marine fuel from 3.5% to 0.5% effective Jan. 1, 2020 70 Further planned investments to upgrade r
Slide 13: Heavy Oil Upgrading Capacity
Heavy Oil Upgrading Capacity in PADD 3 MPC Garyville and Galveston Bay Refineries Top Ranked Galveston Bay refinery Garyville refinery Heavy Oil Upgrading Capacity Crude Throughput Capacity Source: PennWell Knowledge Center Companies include ANDV, BP, CVX, HFC, MPC, PBF, PSX, VLO and XOM 13
Slide 14: Speedway – Industry Leader with Significant Growth Opportunities
Speedway – Industry Leader with Significant Growth Opportunities #1 in EBITDA/store/month vs. public peers $30 Peer Median = $23 M $20 $M $10 $0 Speedway Murphy USA Couche-Tard Sunoco Casey's Planned investment of $530 MM in 2018; significant increase of $150 MM over 2017 Focus on expanding food
Slide 15: MPLX – Priorities for 2018
MPLX – Priorities for 2018 Deliver attractive returns for unitholders 2018 Organic Growth Capital Plan of ~$2.2 B – Forecast ~10% year-over-year distribution growth – Expand portfolio of organic growth projects ~5% Utica Financing strategy – Maintain investment grade credit profile ~20% Southwes
Slide 16: Natural Gas Supply Growth Forecast
Natural Gas Supply Growth Forecast Marcellus/Utica Basin is the Leading Growth Play ~45% of total U.S. growth is expected to occur in Northeast Total U.S. natural gas supply is Marcellus/Utica forecast to grow by ~38 Bcf/d from 2017 to 2030 MPLX well-positioned as largest 16.9 processor in North
Slide 17: Our Priorities for Value Creation
Our Priorities for Value Creation Maintain Top-tier Safety and Environmental performance Increase MPLX EBITDA through Attractive Midstream investments Aggressively Grow industry-leading Speedway retail business Enhance Margins for our Refining operations Consistent Capital Return to Shareholders 17
Slide 18: Appendix
Appendix 18
Slide 19: Strong Operational Performance and Responsible Corporate Leadership
Strong Operational Performance and Responsible Corporate Leadership MPC facilities received from the American Chemistry Council 75% MPC has earned 56 Certificates of Excellence 3 Certificates of Honor 7 Certificates of Achievement of the Environmental Protection Agency’s 93.5 95.5 94.9 Energy Star M
Slide 20: 2017 Citizenship Report
2017 Citizenship Report Excerpts from opening comments from Gary R. Heminger, chairman and chief executive officer This year marks Marathon Petroleum Corporation’s 130th year of providing the most affordable, reliable and plentiful energy the world has ever known. Our diversification into the natura
Slide 21: Perspectives on Climate-Related Scenarios Report
Perspectives on Climate-Related Scenarios Report Excerpts from opening comments from Gary R. Heminger, chairman and chief executive officer and Introduction section While we focus on providing you the returns you expect on your investment, we also look to safeguard the long-term success of your comp
Slide 22: Strong Liquidity and Capitalization
Strong Liquidity and Capitalization Provides financial flexibility to fund growth projects and pursue business strategies MPC Committed to maintaining investment MPC MPLX As of December 31, 2017 Excluding Consolidated Adjustments(a) grade credit profiles at MPC and MPLX ($MM except ratio data) MPL
Slide 23: Illustrative Impact to Refining & Marketing Segment
Illustrative Impact to Refining & Marketing Segment Fuels Distribution and Refinery Logistics Dropdown “Direct Operating Costs” to exclude costs related to refining logistics assets “Other” R&M Expenses to include fees paid to MPLX for fuels distribution services and refinery logistics assets; corre
Slide 24: First-Quarter 2018 Outlook
First-Quarter 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** Th
Slide 25: MPLX Key Investment Highlights
MPLX Key Investment Highlights Diversified ~$30 billion market-cap MLP positioned to deliver attractive returns over the long term - forecast distribution growth of ~10% for 2018 • Largest processor and fractionator in the Marcellus/Utica basins Gathering & • Strong footprint in STACK play and growi
Slide 26: About MPLX
About MPLX Growth-oriented, diversified MLP with high-quality, strategically located assets with leading midstream position Two primary businesses – Logistics & Storage includes transportation, storage and distribution of crude oil, refined petroleum products and other hydrocarbon-based products
Slide 27: MPLX – Unit Price Valuation on Yield Basis
MPLX – Unit Price Valuation on Yield Basis $75 13% MPLX Distribution per Unit $70 12% 2017 Annual Distribution $2.30 $65 11% Forecast 10% Distribution $2.53 $60 Growth in 2018 WTI Price ($/BBL) 10% $55 Yield % 9% $50 (1) MPLX Valuation on Yield Basis(2) 8.26% 8% $45 Implied MPLX Yield Unit Price 7%
Slide 28: MPLX – Delivering Consistent Growth in EBITDA and DCF
MPLX – Delivering Consistent Growth in EBITDA and DCF 625 1.50 $569 1.40 $538 500 $474 Coverage Ratio x 375 $423 1.30 $391 $375 $351 $302 250 1.20 $442 $445 $387 $354 $301 $318 $285 125 $236 1.10 0 1.00 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Annual Coverage Ratio Distributable Cash Flow (DCF) ($MM)
Slide 29: MPLX – Organic Growth Capital Projects
MPLX – Organic Growth Capital Projects Gathering and Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Sherwood IX Processing Plant(b) Marcellus 200 MMcf/d In Service Marcellus/Utica Rich- and Ongoing Dry-Gas Gathering(a) Hous
Slide 30: MPLX – Organic Growth Capital Projects
MPLX – Organic Growth Capital Projects Logistics and Storage Segment Est. Completion Projects Description Date Increasing pipeline capacity to 360 MBPD; provides crude sourcing Ozark Pipeline Expansion Mid-2018 optionality to Midwest refineries Wood River-to-Patoka Increasing pipeline capacity to 36
Slide 31: MPLX – Logistics & Storage
MPLX – Logistics & Storage Segment Overview High-quality, well-maintained assets that are integral to MPC – Owns, leases, operates, or has interest in ~4,500 miles of crude oil pipelines and ~5,500 miles of Headquarters product pipelines and supporting assets MPLX Pipelines: Owned & Operated – 62
Slide 32: MPLX – Refining Logistics Overview
MPLX – Refining Logistics Overview Integrated Tank Farm Assets Supporting MPC’s Operations Tanks Racks ~56 MMBBL storage Multiple rail and truck loading racks Docks Gasoline Blending & Associated Piping Handle ocean- and river-going Piping to connect process units, vessels at Gulf Coast refi
Slide 33: MPLX – Fuels Distribution Overview
MPLX – Fuels Distribution Overview Extensive Range of Scheduling and Marketing Services that Support MPC’s Refining and Marketing Operations Services Description Scheduling Supply and demand balancing Annual EBITDA ~$600 MM Third-party exchange, terminaling and storage Bulk purchases and sale
Slide 34: MPLX – Gathering & Processing
MPLX – Gathering & Processing Segment Overview • Ethane Raw Gathering • Propane Processing Mixed Fractionation NGL Natural Gas and • Normal Butane Plants NGLs Facilities Products • Isobutane Production Compression • Natural Gasoline Gathering Capacity C2 + Fractionation Capacity We are well-positi
Slide 35: MPLX – Marcellus/Utica Capacity
MPLX – Marcellus/Utica Capacity Building Infrastructure to Support Processing & Fractionation Volume Growth Marcellus/Utica Processing Capacity 8 2018 plan increases processing capacity by 21% to ~7 bcf/d Currently ~ 65% of processing capacity in the Marcellus/Utica Basin 6 2017 plant completions Bc
Slide 36: MPLX – Marcellus/Utica Overview
MPLX – Marcellus/Utica Overview 3.8 Bcf/d Gathering, 6.0 Bcf/d Processing & 531 MBPD C2+ Fractionation Capacity HOPEDALE FRACTIONATION COMPLEX BLUESTONE COMPLEX PENNSYLVANIA HARMON CREEK COMPLEX (currently under construction) OHIO HOUSTON COMPLEX MarkWest Joint Venture with EMG OHIO CONDENSATE MarkW
Slide 37: MPLX – Northeast Operations Well-Positioned in Ethane Market
MPLX – Northeast Operations Well-Positioned in Ethane Market Ethane demand growing as exports and steam cracker development continues Ohio Pennsylvania in Gulf Coast and Northeast Bluestone MPLX well-positioned to support producer customers’ rich-gas Shell Chemical Planned Steam development with
Slide 38: Major Residue Gas Takeaway Expansion Projects Originate at MPLX Facilities
Major Residue Gas Takeaway Expansion Projects Originate at MPLX Facilities New takeaway pipelines expected to improve Northeast basis differentials MPLX processing complexes: – Access to all major gas residue gas takeaway pipelines – Provide multiple options with significant excess residue capac
Slide 39: MPLX – Gathering & Processing Segment
MPLX – Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Achieved record 4Q 2017 volumes Available Average – Gathered volumes of ~2.7 Bcf/d Utilization Area Capacity Volume (%)(b) – Processed volumes of ~5.2 Bcf/d (MMcf/d) (MMcf/d) Marcellus 4,520 4,203 93% Achieve
Slide 40: MPLX – Gathering & Processing Segment
MPLX – Gathering & Processing Segment Marcellus & Utica Fractionation Commenced operations of second Fractionated Volumes(a) de-ethanization plant at Majorsville Available Average Utilization Area Capacity Volume Achieved record 4Q 2017 (MBPD)(b) (MBPD) (%)(c) fractionated volumes of ~389 MBPD 4
Slide 41: MPLX – Considerable Scale in the Southwest
MPLX – Considerable Scale in the Southwest 2.1 Bcf/d Gathering, 1.5 Bcf/d Processing & 29 MBPD C2+ Fractionation Capacity Western Oklahoma Processing Oklahoma Southeast Oklahoma Processing* 425MMcf/d 112MMcf/d Gathering Gathering 585MMcf/d 755MMcf/d Permian *Represents 40% of processing capacity thr
Slide 42: MPLX – Expanding Southwest Position in High Performance Resource Plays
MPLX – Expanding Southwest Position to Support Growing Production in High Performance Resource Plays Cana-Woodford Arkoma-Woodford Permian Hidalgo Complex 200 MMcf/d Permian Arapaho Complex Hickory Hills Basin Plant Blaine Kingfisher Dewey Rich-gasNewfield Argo Complex Delaware pipelineSTACK 200 MMc
Slide 43: MPLX – Gathering & Processing Segment
MPLX – Gathering & Processing Segment Southwest Operations Achieved record 4Q 2017 volumes Processed Volumes(a) – Gathered volumes of ~1.5 Bcf/d Available Average Utilization Area Capacity Volume – Processed volumes of ~1.4 Bcf/d (MMcf/d) (MMcf/d) (%)(b) Achieved 8% growth in full-year West Texa
Slide 44: MPLX – Gathering & Processing Contract Structure
MPLX – Gathering & Processing Contract Structure Durable long-term partnerships across leading basins Durable, long-term partnerships across leading basins Marcellus Utica Southwest Resource Play Marcellus, Upper Devonian Utica Haynesville, Cotton Valley, Woodford, Anadarko Basin, Granite Wash, Ca
Slide 45: MPLX – Strong Financial Flexibility to Manage and Grow Asset Base
MPLX – Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining investment ($MM except ratio data) As of grade credit profile 12/31/17 Cash and cash equivalents 5 ~$1.9 B of available liquidity at year end Total assets 19,500 No public equity issuance in 4Q 2017 Tota
Slide 46: MPLX – Long-term Value Objectives
MPLX – Long-term Value Objectives Deliver Sustainable Distribution Growth rate that provides attractive total unitholder returns Increase EBITDA through attractive investments and optimization of existing assets Execute and expand Robust Portfolio of Organic Growth Projects in support of produ
Slide 47: MPC and MPLX’s Long-term Strategic Linkage
MPC and MPLX’s Long-term Strategic Linkage MPLX was created in 2012 to grow MPC’s midstream platform Assets and services provided by MPLX are integral to MPC’s operations and MPC is MPLX’s largest customer Earnings streams for assets/businesses sold to MPLX have effectively been converted into
Slide 48: Speedway Retail Network
Speedway Retail Network 64 235 12 305 116 123 311 489 60 Conn. Del. 1 4 Speedway 147 62 Mass. 109 Largest company-owned 42 277 N.J. 71 and -operated c-store chain 52 R.I. 19 4 east of the Mississippi ~2,740 locations in 21 states 241 As of Dec. 31, 2017 48
Slide 49: Speedy Rewards Loyalty Program
Speedy Rewards Loyalty Program ® Highly successful loyalty program Customers earn points on every purchase Customers redeem points for free merchandise and fuel discounts Averaged ~ 6 million active Speedy Rewards members in 2017, and continues to grow as we attract new members in the market
Slide 50: Speedway Private Label Products
Speedway Private Label Products Higher Sales Promotes and Margins Brand Awareness and Loyalty Better Value Proposition Differentiation for Consumers from Competitors 50
Slide 51: Speedway Strong and Consistent Growth
Speedway Strong and Consistent Growth Gasoline and Distillate Sales Volume 8,000 Merchandise Sales/Margin MM Gallons 5,000 30 6,000 6,038 6,094 5,007 4,893 5,799 4,879 4,000 29 4,000 3,942 2,000 3,146 3,611 28 3,000 Percent 0 $MM 3,135 27 2013 2014 2015 2016 2017 2,000 26 Gasoline and Distillate Mar
Slide 52: Balance in Refining Network
Balance in Refining Network BPCD NCI Canton (Ohio) 93,000 7.9 Catlettsburg (Ky.) 277,000 9.2 Detroit (Mich.) 139,000 9.7 Midwest Capacity 754,000 BPCD Robinson (Ill.) 245,000 9.5 Galveston Bay (Texas) 571,000 11.9 Garyville (La.) 556,000 11.1 Total 1,881,000 10.6* The Nelson Complexity Index is a co
Slide 53: Accounting Treatment of Turnaround Costs
Accounting Treatment of Turnaround Costs MPC expenses turnaround costs Some of MPC’s refining peers capitalize these costs including HollyFrontier, PBF Energy, Andeavor and Valero Impact of expensing versus capitalizing turnaround costs – Over time, GAAP earnings are not impacted – MPC’s EBITD
Slide 54: Key Strengths
Key Strengths Balanced Operations During 2017 Crude Oil Refining Capacity Crude Slate 60% PADD II 59% Sour Crude 40% PADD III 41% Sweet Crude Assured Sales of Gasoline Production (Speedway + Brand + Wholesale Contract Sales) Assured Sales ~70% ~30% Wholesale and Other Sales 54
Slide 55: U.S. Crude Inventory Surplus Largely Gone
U.S. Crude Inventory Surplus Largely Gone Crude Inventories Crude Days of Supply + Exports 550 34 32 500 30 450 28 MMB Days 26 400 24 350 22 20 300 18 M… M… Nov Sep Oct Jun Jan Feb Jul Aug Apr Dec May Mar Nov Sep Oct Jan Feb Jun Apr Jul Aug Dec Crude inventories have fallen below early 2015 levels
Slide 56: U.S. Product Inventories Support Constructive Market Outlook
U.S. Product Inventories Support Constructive Market Outlook Gasoline Days of Supply + Exports Distillate Days of Supply + Exports 30 36 34 28 32 26 30 Days Days 28 24 26 22 24 22 20 20 May Mar Nov Sep Oct Jan Feb Jun Apr Jul Aug Dec May Mar Nov Sep Oct Jan Feb Jun Apr Jul Aug Dec Gasoline invento
Slide 57: Gasoline Exports Enhance Utilization
Gasoline Exports Enhance Utilization U.S. Total Gross Gasoline Exports Gasoline exports have expanded 1300 opportunity set for U.S. refiners 1100 – Summer exports tend to be lower 900 MBD than winter as more product is 700 consumed domestically 500 300 U.S. refinery utilization is less subject J
Slide 58: U.S. Product Exports Will Help Meet Global Demand
U.S. Product Exports Will Help Meet Global Demand EIA’s 2018 Annual Energy EIA Annual Energy Outlook Product Exports Outlook 8 Forecast – Projects growth in U.S. 7 product exports including 6 gasoline, diesel and propane 5 – U.S. refining expected to MMBD remain highly competitive in 4 the future
Slide 59: U.S. Refiners Have Sustained Export Advantages
U.S. Refiners Have Sustained Export Advantages Lower-cost natural gas 2016 Large, complex refineries Region Utilization Rate(1) Access to lower-cost feedstocks North America 85% High utilization rates MPC 95% Sophisticated workforce Asia 85% Natural Gas Price Comparison 20 European Natural
Slide 60: Export Market Remains Robust
Export Market Remains Robust Demand from Latin America for both diesel and MPC Export Capacity gasoline expected to remain strong (MBPD) 510 While arbitrage to Europe for diesel is not 115 395 always open, occasional opportunities exist 345 365 320 – Opportunities increasing for gasoline exports
Slide 61: Distillate Leading World Liquids Demand
Distillate Leading World Liquids Demand Average Annual Volumetric 120 Forecast Growth (MBPD) 2016 vs. 2030 100 +440 80 Other -100 MMBD 60 Resid +475 40 Middle Distillate 20 Gasoline +170 0 Sources: BP Statistical Review of World Energy, MPC Economics 61
Slide 62: Middle Distillates Lead U.S. Domestic Petroleum Fuels Demand
Middle Distillates Lead U.S. Domestic Petroleum Fuels Demand 10 Gasoline Forecast Compounded Annual Middle distillates (diesel + jet 9 Growth Rates fuel) expected to lead U.S. 8 -1.8% domestic fuels demand growth Gasoline ex ethanol 7 – Primarily due to growth in 6 -2.0% MMBD freight transportatio
Slide 63: Sustained Global Demand Growth
Sustained Global Demand Growth Expect global oil demand Global Oil Demand 115 2.0 growth to be sustained near Global Oil & Liquids Demand (MMBD) Forecast current levels 110 YOY Demand Growth (MMBD) 1.5 Rising global population and 105 living standards propel fuel 100 1.0 demand 95 Nonfuel uses
Slide 64: Galveston Bay World-Class Refining Complex
Galveston Bay World-Class Refining Complex Galveston Bay and Texas City refineries merged into a single refining complex during 2017 Galveston Bay Unit Capacities BPCD* Crude 611,000 Resid 142,000 Catalytic Cracking/Hydrocracking 268,000 Alkylation 53,300 Aromatics 34,700 *MPC estimates post-STAR pr
Slide 65: MPC Capital Expenditures & Investments
MPC Capital Expenditures & Investments ($MM) 2017 Revised 4Q 2017 2017 2018 Outlook Plan Refining & Marketing (R&M) 1,085 262 832 950 Speedway 380 160 381 530 Midstream, including MPLX(a) 2,115 488 1,756 2,405 Corporate and Other 100 30 83 85 Total Capital Expenditures & Investments(b)(c) 3,680 940
Slide 66: MPLX – Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
MPLX – Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 4Q 2015(4) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Net income (loss) 42 (14) 72 194 182 187 191 217 241 (1)The Partnership makes a distinction between Depreciation and amortization 58 136 15
Slide 67: MPLX – Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities
MPLX – Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities (YTD) Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, ($MM) 2015 2016 2016 2016 2016 2017 2017 2017 2017 Net cash provided by operating activities 427 321 670 975 1,
Slide 68: MPC Reconciliation
MPC Reconciliation Adjusted EBITDA to Net Income Attributable to MPC ($MM) 2017 LTM 1Q 2Q 3Q 4Q Net Income attributable to MPC 30 483 903 2,016 3,432 Less: Net interest and other financial income (costs) (150) (158) (157) (160) (625) Add: Net income (loss) attributable to inco noncontrolling interes
Slide 69: MPLX Reconciliation
MPLX Reconciliation Adjusted EBITDA Related to MPLX to MPLX Net Income(a) ($MM) 2017 LTM 1Q 2Q 3Q 4Q MPLX Net Income 187 191 217 241 836 Less: Net interest and other financial income (costs) (78) (87) (93) (96) (354) Add: Provision (benefit) for income taxes - 2 1 (2) 1 Depreciation and amortization
Slide 70: Reconciliation of Speedway Total Margin to Speedway Income from Operations
Reconciliation of Speedway Total Margin to Speedway Income from Operations ($MM) 2013 2014 2015 2016 2017 (a) Fourth-quarter and year-to-date 2017 margin and expenses do not reflect any results from the Speedway income from operations 375 544 673 734 732 41 travel centers contributed to PFJ Southeas
Slide 71: Speedway Reconciliation
Speedway Reconciliation Segment EBITDA to Segment Income from Operations ($MM) 2016 2017 Speedway Income from Operations 734 732 Plus: Depreciation and Amortization 273 275 Speedway Segment EBITDA 1,007 1,007 71
Slide 72: MPC Annual Price and Margin Sensitivities
MPC Annual Price and Margin Sensitivities Refining and Marketing Segment $MM (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity ~$590 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$300 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$90 (per $1.00/barrel change) Natural Ga
Slide 73: MPC’s Fully Integrated Downstream System
MPC’s Fully Integrated Downstream System Refining & Marketing Six-plant refining system with ~1.9 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market area One of the largest producers of asphalt in the U.S. ~5
Marathon Petroleum — Raymond James Institutional Investors Conference 2018 on 6ix