Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q2 2016 Earnings Presentation
21 slides from Marathon Petroleum's earnings presentation, Jul 28, 2016
Slide 1: Second Quarter 2016 Earnings Conference Call and Webcast
Second Quarter 2016 Earnings Conference Call and Webcast July 28, 2016
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: Highlights
Highlights Reported second-quarter earnings of $801 million, or $1.51 per diluted share, including a net benefit of $0.44 per diluted share primarily related to reversal of the company's lower of cost or market inventory valuation reserve Achieved record second-quarter segment income at Speedway
Slide 4: 2Q 2016 Earnings
2Q 2016 Earnings* 2Q 2016 2Q 2015 Earnings* $801 MM $826 MM Earnings per Diluted Share** $1.51 $1.51 Earnings* Earnings per Diluted Share** 3,000 $2,852 6 187 $5.26 0.35 948 2,000 4 1.76 $/Share $MM 826 1.51 1,000 $802 2 $1.51 891 801 1.62 1.51 0 0 2015 2016 2015 2016 1Q 2Q 3Q 4Q *Earnings refer to
Slide 5: Earnings 2Q 2016 vs. 2Q 2015 Variance Analysis
Earnings* 2Q 2016 vs. 2Q 2015 Variance Analysis 1,000 98 7 826 31 801 800 66 37 (90) (101) (73) 600 $MM 400 200 0 2Q 2015 Refining & Speedway Midstream** Items not Impairment Interest and Income Noncontrolling 2Q 2016 Marketing Allocated to Expense Other Financing Taxes Interests Segments Costs *Ear
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 2Q 2016 vs. 2Q 2015 Variance Analysis 1,400 1,200 1,181 360 40 1,080 1,000 (23) 227 (70) 45 800 (100) $MM (78) 600 (502) 400 200 0 *2Q 2015 **LLS **Sweet/ **LLS/WTI **LLS **Market Lower of Other Direct Other 2Q 2016 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost
Slide 7: Speedway Segment Income
Speedway Segment Income 2Q 2016 vs. 2Q 2015 Variance Analysis 250 200 25 193 10 (4) 35 150 127 $MM 100 50 0 2Q 2015 Light Product Merchandise Lower of Cost Other 2Q 2016 Gross Margin Gross Margin or Market 7
Slide 8: Midstream Segment Income
Midstream Segment Income 2Q 2016 vs. 2Q 2015 Variance Analysis 250 81 6 201 200 150 $MM 19 103 100 (8) 50 0 *2Q 2015 Revenue Equity Affiliates MarkWest Operating Expenses 2Q 2016 and Other *We changed our operating segment presentation in the first quarter of 2016 in connection with the contribution
Slide 9: Total Company Cash Flow
Total Company Cash Flow 2Q 2016 3,000 1,048 2,500 984 2,000 (521) 24 1,754 1,215 (221) 1,500 (128) $MM 1,000 (955) 500 308 0 3/30/2016 Operating Working Net Debt Cash Capital Issuance of Return of Distributions to Other 6/30/2016 Cash Cash Flow Capital Expenditures, MPLX LP Capital to noncontrolling
Slide 10: Select Balance Sheet/Cash-Flow Data
Select Balance Sheet/Cash-Flow Data ($MM) 2016 2015 2Q 1Q 4Q 3Q As of quarter ended: MPC debt excluding MPLX 6,658 6,850 6,669 5,939 MPLX consolidated debt 4,401 4,716 5,256 753 Total consolidated debt 11,059 11,566 11,925 6,692 Cash and cash equivalents 1,754 308 1,127 2,044 Equity 19,935 19,494 19
Slide 11: 3Q 2016 Outlook
3Q 2016 Outlook Other Total Corporate Percent of Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Maintenance Amortization Cost** Throughput* Costs Items*** in MBD Refinery Direct
Slide 12: Appendix
Appendix 12
Slide 13: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2016 2Q 2016 YTD Revised Plan Refining & Marketing (R&M) 1,045 242 452 Midstream R&M(a) 125 36 69 Total Refining & Marketing Segment 1,170 278 521 Speedway 310 70 120 Midstream, including MPLX(a)(b) 1,425 403 753 Corporate and Other 95 21 45 Total Capital Exp
Slide 14: Sustaining Capital Returns Since Spin
Sustaining Capital Returns Since Spin Cumulative Return of Capital Since July 1, 2011 $9.9 B 10,000 8,000 6,000 $MM 4,000 2,000 0 Dividends Share repurchases 14
Slide 15: Earnings
Earnings ($MM unless otherwise noted) 2015 2016 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income* 1,292 1,181 1,434 179 (62) 1,080 Speedway segment income** 168 127 243 135 167 193 Midstream segment income 90 103 93 94 167 201 Corporate and other unallocated items (79) (75) (75) (70) (67) (67)
Slide 16: Reconciliation
Reconciliation Pro Forma Adjusted EBITDA to Pro Forma Net Income Attributable to MPC ($MM) 2015 2016 1Q 2Q 3Q 4Q 1Q 2Q Pro Forma Net Income attributable to MPC* 871 786 943 225 1 801 Less: Net interest and other financial income (costs) (136) (242) (131) (139) (142) (137) Add: Net income (loss) attr
Slide 17: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations ($MM) 2015 2016 (For the Quarter) 3Q 4Q 1Q 2Q Net cash provided by operations 1,069 808 327 2,263 Less changes in working capital: Changes in current receivables 752 361 325 (601) Change
Slide 18: Refining and Marketing Segment Income 2Q 2016 vs. 1Q 2016
Refining and Marketing Segment Income 2Q 2016 vs. 1Q 2016 Variance Analysis 1,200 185 1,080 1,000 375 (11) 800 (19) 600 61 14 569 $MM (10) (22) 400 200 0 (62) -200 1Q 2016 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other Direct Other 2Q 2016 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost or Gross O
Slide 19: Refining and Marketing Indicative Gross Margin
Refining and Marketing Indicative Gross Margin 2Q 2016 3,000 360 2,564 2,500 (4) 177 665 58 2,000 (8) $MM 1,500 1,316 (1,124) 1,080 1,000 (360) 500 0 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other R&M Direct Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Cost or Gross Gross Operating Seg
Slide 20: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 80 $69 $73 60 $MM 40 $32 $35 $24 $27 $18 $18 $20 $20 20 $15 $16 $16 $10 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 LP Distributions GP Distributions, including IDRs Cash Distribution and Asset 2013 2014 2015 2016 Sales Procee
Slide 21: Marathon
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