Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q3 2023 Earnings Presentation
23 slides from Marathon Petroleum's earnings presentation, Oct 31, 2023
Slide 1: Third Quarter 2023 Earnings Conference Call
Third Quarter 2023 Earnings Conference Call October 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: Business Update
Business Update ▪ Executing to deliver superior cash flow and capital returns through-cycle Strengthen Competitive Position of our Assets ▪ MPLX increases distribution 10%; MPC expects to receive an incremental $200 million for a total of $2.2 billion annually Foster Low-Cost ▪ Returned $3.1 billion
Slide 4: 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/ Processing
Slide 5: Third Quarter Highlights
Third Quarter Highlights $ Millions (unless otherwise noted) 3Q23 Adjusted Earnings per Share ($/share)(a)(b) $8.14 Adjusted EBITDA(b) $5,708 Cash Flow from Operations, excl. changes in working capital(b) $4,344 Share Repurchases(c) $2,819 Dividends $297 (a) Defined as diluted adjusted income per sh
Slide 6: Adjusted EBITDA to Net Income 3Q 2023 vs. 2Q 2023
Adjusted EBITDA to Net Income 3Q 2023 vs. 2Q 2023 Adjusted EBITDA Reconciliation to Net Income 6,000 1,210 7 5,708 43 -40 4,531 -998 4,000 3,280 $ Millions -1,473 2,000 0 2Q 2023 Refining & Midstream Corporate 3Q 2023 Adjustments Turnaround Interest, 3Q 2023 Adj. EBITDA Marketing Adj. EBITDA (a) and
Slide 7: Refining & Marketing 3Q 2023 vs. 2Q 2023
Refining & Marketing 3Q 2023 vs. 2Q 2023 5,000 716 111 4,373 ▪ 94% utilization 4,000 -30 -110 299 224 3,163 ▪ 93% capture 3,000 $ Millions ▪ Continued commercial 2,000 execution 1,000 0 2Q 2023 USGC Mid-Con West Coast Operating Distribution Other 3Q 2023 Segment Margin Margin Margin Costs Costs Segm
Slide 8: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 8,000 7,632 7,122 Total system capture(a) of 93%, key factors 7,000 -510 included: ▪ Solid commercial execution $ Millions 6,000 100% 93% ▪ Secondary product headwinds 5,000 ▪ Unplanned downtime 4,000 R&M Margin Capture R&M Margin Indicator Impact (
Slide 9: Midstream 3Q 2023 vs. 2Q 2023
Midstream 3Q 2023 vs. 2Q 2023 1,532 33 1,539 1,500 -26 ▪ Segment Adj. EBITDA flat sequentially; up ~6% YTD over prior year 1,000 $ Millions ▪ $502 million distribution received from MPLX 500 ▪ Continued focus on disciplined, high return projects 0 2Q 2023 MPLX Other 3Q 2023 Segment Midstream Segment
Slide 10: Total Consolidated Cash Flow 3Q 2023
Total Consolidated Cash Flow 3Q 2023 609 289 4,344 270 -486 -297 15,000 -308 13,056 -2,819 $ Millions 11,454 10,000 5,000 6/30/2023 Cash Flow Changes in Capital Return of Sale Other Dividends Share 9/30/2023 Cash + from Operations, Working Capital Expenditures, Capital to Proceeds (c) Repurchases Ca
Slide 11: Fourth-Quarter 2023 Outlook
Fourth-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 12: Continued Focus to Drive Superior Returns
Continued Focus to Drive Superior Returns Third Quarter Recap Strengthen Competitive Position $4.4 Billion $486 Million of our Assets R&M Segment Value Creation Adj. EBITDA Investments(a) Foster Low-Cost Culture $502 Million $3.1 Billion Improve Cash Distribution Commercial Capital Returned from MPL
Slide 13: Questions & Answers
Questions & Answers
Slide 14: Appendix
Appendix 14
Slide 15: 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 September 30, 2023 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($ Millions except ratio data) Cash(d) 12,096 960 13,056 1.0 Total Debt 6,864 20,418 27,282 0.0 2023 2024
Slide 16: Refining & Marketing Segment Adjusted EBITDA 3Q 2023
Refining & Marketing Segment Adjusted EBITDA 3Q 2023 8,000 462 7,106 92 -28 7,122 -510 6,000 Volume + 406 Product - 169 Crude - 747 -1,401 133 4,373 $ Millions 4,000 -1,481 2,000 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structure M
Slide 17: Refining & Marketing Segment Adjusted EBITDA Variance Analysis
Refining & Marketing Segment Adjusted EBITDA 3Q 2023 vs. 2Q 2023 Variance Analysis 1,749 47 -189 -21 111 4,373 -347 -30 -110 4,000 Volume + 29 Product - 453 3,163 Crude + 77 $ Millions 2,000 0 2Q 2023 Blended Sour Sweet Market Other Operating Distribution Other 3Q 2023 Segment Crack Differential Dif
Slide 18: Income Summary for Operations
Income Summary for Operations 2022 2023 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing segment income 768 7,134 4,625 3,910 3,032 2,287 3,757 Midstream segment income 1,072 1,126 1,176 1,088 1,213 1,201 1,136 Corporate (151) (170) (173) (259) (184) (183) (246) Income from con
Slide 19: Reconciliation: Net Income to Adjusted Net Income
Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC ($MM) 3Q23 3Q22 (a) Income taxes for adjusted earnings were calculated by applying a combined Net income attributable to MPC 3,280 4,477 federal and state statutory tax rate of 22% to the pre-tax adjustments. Th
Slide 20: Reconciliation: Cash Flow from Operations Excluding Working Capital
Reconciliation Cash Flow from Operations, Excluding Changes in Working Capital 2023 ($MM) 3Q YTD Cash provided by operating activities 4,953 12,994 Less changes: Current receivables (2,162) 1,076 Inventories (605) (1,313) Current accounts payable and accrued liabilities 3,426 1,565 Fair value of der
Slide 21: Reconciliation: Segment Income to Segment Adjusted EBITDA
Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing Segment Segment income from operations 768 7,134 4,625 3,910 3,032 2,287 3,757 Add: Depreciation and amortization 461 475 459 455 464 484 463 Refinin
Slide 22: Reconciliation: Net Income to Adjusted EBITDA
Reconciliation Net Income Attributable to MPC to Adjusted EBITDA 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net income attributable to MPC 845 5,873 4,477 3,321 2,724 2,226 3,280 Net income attributable to noncontrolling 327 344 543 320 360 354 351 interest Income from discontinued operations, net of tax
Slide 23: Reconciliation: R&M Segment Adjusted EBITDA to R&M Margin
Reconciliation Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Margin 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing segment adjusted EBITDA 1,374 7,760 5,496 4,631 3,853 3,163 4,373 Plus (Less): (a) Reflects the gross margin, excluding Depreciation and amortization (