Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q3 2013 Earnings Presentation
21 slides from Marathon Petroleum's earnings presentation, Oct 31, 2013
Slide 1: Third Quarter 2013 Earnings Conference Call and Webcast
Third Quarter 2013 Earnings Conference Call and Webcast October 31, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements relate to, among other things, MPC's expectations, estimates and projections concerning MPC business and operations. You can identify forwa
Slide 3: Highlights
Highlights Reported adjusted earnings of $183 million Delivered strong Pipeline Transportation and Speedway segment performance Returned nearly $1.2 billion of capital to shareholders Authorized additional $2 billion share repurchase Impacted by changing market conditions Narrower crude
Slide 4: 3Q 2013 Earnings
3Q 2013 Earnings* 3Q 2013 3Q 2012 Earnings $168 MM $1,224 MM Adjusted Earnings $183 MM $1,129 MM Earnings per Diluted Share $0.54 $3.59 Adjusted Earnings per Diluted Share $0.59 $3.31 Adjusted Earnings Adjusted Earnings per Diluted Share $4,000 $12 3,352 9.79 $10 $3,000 760 2.26 $8 Millions $2,000 1
Slide 5: Adjusted Earnings 3Q 2013 vs. 3Q 2012 Variance Analysis
Adjusted Earnings* 3Q 2013 vs. 3Q 2012 Variance Analysis $1,400 $1,200 1,129 (1,464) $1,000 $800 $600 Millions $400 502 (5) 183 $200 $0 -$200 26 2 (7) -$400 -$600 3Q 2012 Refining & Speedway Pipeline Interest & Income Noncontrolling 3Q 2013 Marketing Transportation Other Taxes Interests *References
Slide 6: Refining and Marketing Segment Income Variance Analysis
Refining and Marketing Segment Income 3Q 2013 vs. 3Q 2012 Variance Analysis $2,000 1,691 (845) $1,500 509 (465) 259 (423) Millions $1,000 61 (191) 47 (91) (377) $500 82 (30) 227 $0 3Q 2012 *LLS *LLS *Sweet/ *Sweet/ *LLS /WTI *LLS /WTI *LLS *LLS *Market Direct Other Other 3Q 2013 6-3-2-1 6-3-2-1 Sour
Slide 7: Speedway Segment Income Variance Analysis
Speedway Segment Income 3Q 2013 vs. 3Q 2012 Variance Analysis $120 7 (8) 27 102 $100 $80 76 Millions $60 $40 $20 $0 3Q 2012 Light Product Gross Merchandise Gross Other 3Q 2013 Margin Margin 7
Slide 8: Pipeline Transportation Segment Income Variance Analysis
Pipeline Transportation Segment Income 3Q 2013 vs. 3Q 2012 Variance Analysis $80 17 (6) (9) $60 54 52 (4) 4 Millions $40 $20 $0 3Q 2012 Trans. Depreciation Operating Pipeline Other 3Q 2013 Revenue Expenses Affiliates 8
Slide 9: Total Company Cash Flow 3Q 2013
Total Company Cash Flow 3Q 2013 $4,000 475 (68) (384) $3,500 3,069 (129) (1,028) $3,000 $2,500 Millions 83 2,018 $2,000 $1,500 $1,000 $500 $0 6/30/13 Operating Working Cash Capital Dividends Share Other 9/30/13 Cash Cash Flow Capital Expenditures, Paid Repurchases Cash Balance before Acquisitions, B
Slide 10: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($MM) 2013 2013 2013 2012 3Q 2Q 1Q 4Q As of quarter ended: Cash and cash equivalents 2,018 3,069 4,737 4,860 Total debt 3,403 3,410 3,416 3,361 Equity 11,264 12,197 12,412 12,105 Debt-to-total-capital ratio 23% 22% 22% 22% Last Twelve Months (LTM) EBITDA 4,777 6,3
Slide 11: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders $7,000 LTM Ended 9/30/13 $6,000 Dividends and share $5,000 repurchases* ~247% of 3,315 Free Cash $4,000 Flow** Millions Free Cash Cash capital expenditures, Flow** acquisitions and investments $1,340 $3,000 Net cash provided by $2,000 4,093 operations 2,753
Slide 12: 4Q 2013 Outlook
4Q 2013 Outlook Projected 4Q 2013 4Q 2012 Crude throughput 1.55 MMBD 1.24 MMBD Total throughput 1.85 MMBD 1.45 MMBD Percent of WTI-priced crude 19% 25% Refinery direct operating costs in Refining & Marketing gross margin*: Turnaround and major maintenance $2.05 $0.91 Depreciation & amortization 1.35
Slide 13: Appendix
Marathon mony) Petroleum Corporation Appendix
Slide 14: Reconciliation: Earnings to Adjusted Earnings
Reconciliation Earnings to Adjusted Earnings* ($MM) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q Earnings 596 814 1,224 755 725 593 168 Pension settlement expenses** 53 22 5 39 15 MN asset sale settlement gain** (117) Adjusted Earnings 596 867 1,129 760 725 632 183 *References to earnings refer to net income attr
Slide 15: Reconciliation: Free Cash Flow to Net Cash from Operations
Reconciliation Free Cash Flow to Net Cash Provided by (Used in) Operations ($MM) 2012 2013 (Quarter to date) 4Q 1Q 2Q 3Q Net cash provided by (used in) operating activities 2,043 2,079 (436) 407 Additions to property, plant and equipment (403) (195) (229) (309) Acquisitions* - (1,493) (22) - Investm
Slide 16: Income
Income ($MM unless otherwise noted) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing segment income 943 1,325 1,691 1,139 1,105 903 227 Speedway segment income 50 107 76 77 67 123 102 Pipeline Transportation segment income 42 50 52 72 51 58 54 Corporate and other unallocated items (79) (92) (74)
Slide 17: EBITDA Reconciliation to Net Income Attributable to MPC
EBITDA Reconciliation to Net Income Attributable to MPC ($MM) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net Income attributable to MPC 596 814 1,224 755 725 593 168 Less: Net interest and other financial income (costs) (22) (17) (25) (45) (48) (45) (47) Add: Net income attributable to noncontrolling interests
Slide 18: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Cash Provided by (Used in) Operations ($MM) 2012 2013 (Quarter to date) 4Q 1Q 2Q 3Q Net cash provided by (used in) operations 2,043 2,079 (436) 407 Less changes in working capital: Changes in current receivables 491 (8
Slide 19: Capital Expenditures & Investments
Capital Expenditures & Investments* ($MM) 2013 Budget 3Q 2013 2013 YTD Refining & Marketing 1,016 243 505 Speedway 255 65 177 Pipeline Transportation 184 42 103 Corporate and Other 160 54 106 Subtotal 1,615 404 891 Capitalized Interest 43 7 15 Total Capital Expenditures & Investments 1,658 411 906 *
Slide 20: Refining & Marketing Indicative Gross Margin – 3Q 2013
Refining & Marketing Indicative Gross Margin – 3Q 2013 $2,000 135 (99) $1,800 (56) 538 (1,093) $1,600 $1,400 $1,200 1,126 Millions $1,000 $800 (47) $600 504 (277) $400 227 $200 $0 *LLS *Sweet/ *LLS/WTI *LLS *Market Direct Other R&M Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Operating Gr
Slide 21: Marathon Petroleum Corporation
Marathon mony) Petroleum Corporation