Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q3 2024 Earnings Presentation
25 slides from Marathon Petroleum's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call November 5, 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release 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 initiat
Slide 3: Business Update
Business Update ▪ Adjusted EBITDA of $2.5 billion highlights commitment to peer- Strong leading Refining & Marketing results while delivering Through-Cycle Midstream growth Cash Flow ▪ Annually MPC expects to receive distributions of $2.5 billion following MPLX’s 12.5% quarterly distribution increas
Slide 4: Third Quarter Highlights
Third Quarter Highlights $ Millions (unless otherwise noted) 3Q24 Earnings per Share ($/share) (a) $1.87 Adjusted EBITDA(b) $2,485 Cash Flow from Operations, excl. changes in working capital(b) $1,863 Share Repurchases(c) $2,701 Dividends $273 (a) Defined as diluted income per share, based on weight
Slide 5: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income 3Q 2024 vs. 2Q 2024 Adjusted EBITDA Reconciliation to Net Income 4,000 3,392 8 4 2,485 $ Millions -919 2,000 -1,136 622 -727 0 2Q 2024 Refining & Midstream Corporate 3Q 2024 Turnaround Interest, 3Q 2024 Adj. EBITDA Marketing Adj. EBITDA and D&A Taxes, and Net Income Non
Slide 6: Refining & Marketing Segment
Refining & Marketing Segment 3Q 2024 vs. 2Q 2024 ▪ 96% capture 1,972 2,000 ▪ 94% utilization -328 $ Millions -237 ▪ Continued strong 24 25 1,053 1,000 -331 operational and -72 commercial performance 0 2Q 2024 USGC Mid-Con West Coast Operating Distribution Other 3Q 2024 Segment Margin Margin Margin C
Slide 7: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 4,118 Total system capture(a) of 96%; key factors 4,000 3,949 included: -169 100% 96% ▪ Secondary product pricing tailwind $ Millions 3,000 ▪ Clean product margin headwind ▪ Renewables headwind 2,000 R&M Margin Capture R&M Margin Indicator Impact (b
Slide 8: Midstream Segment
Midstream Segment 3Q 2024 vs. 2Q 2024 1,620 9 1,628 -1 ▪ Segment Adj. EBITDA flat 1,500 sequentially; up nearly 6% over prior year period 1,000 $ Millions ▪ $2.5B annual distribution to MPC at current distribution rate 500 ▪ Continued focus on compelling growth 0 opportunities 2Q 2024 Segment MPLX O
Slide 9: Total Consolidated Cash Flow
Total Consolidated Cash Flow 3Q 2024 1,863 10,000 -179 8,499 -922 38 -773 $ Millions -409 -273 MPLX (1) MPC (772) 5,143 5,000 -2,701 0 6/30/2024 Cash Flow Changes in Capital Changes Return of Other Dividends Share 9/30/2024 Cash + from Operations, Working Capital Expenditures, in Debt Capital to Rep
Slide 10: Financial Priorities
Financial Priorities Sustaining Capital Maintain safety, integrity, and reliability of our assets Dividends Secure, competitive, and growing dividend Growth Capital Disciplined growth opportunities for today and the future Share Repurchases Steadfast commitment to return capital to shareholders Stro
Slide 11: Fourth-Quarter 2024 Outlook
Fourth-Quarter 2024 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: Sustainability Highlights
Sustainability Highlights STRENGTHEN RESILIENCY INNOVATE FOR THE FUTURE EMBED SUSTAINABILITY Dedicated to cultivating a safe, collaborative work Dickinson, North Dakota – Renewable Diesel Facility environment while promoting an inclusive culture Scope 1 & 2 GHG Intensity 30% Target: 30% reduction by
Slide 13: Third Quarter Recap
Third Quarter Recap ▪ Executing to deliver superior cash flow and capital returns through-cycle $1.1 Billion $1.6 Billion R&M Segment Midstream Segment Adj. EBITDA Adj. EBITDA $922 Million $3.0 Billion Value Creation Capital Returned Investments(a) (a) Represents capital expenditures, investments an
Slide 14: Creating Exceptional Value
Creating Exceptional Value Prioritizing Peer Leading: Safety and reliability Compelling Operational excellence Value Proposition Commercial performance Profitability per barrel Strong through-cycle ← cash flow Durable midstream Strategic Commitments: growth delivers cash flow uplift Optimize portfol
Slide 15: Questions & Answers
Questions & Answers
Slide 16: Appendix
Appendix 16
Slide 17: Balance Sheet: Foundation for Strategy Execution
Balance Sheet: Foundation for Strategy Execution MPC Senior Notes Maturities - Next 10 Years (a) 3.0 MPC MPC MPLX As of September 30, 2024 Excluding Consolidated Adjustments (c) MPLX $ Billions 2.0 ($ Millions except ratio data) Cash(d) 5,143 2,426 2,717 1.0 Total Debt 28,220 22,086 6,134 0.0 2024 2
Slide 18: Refining & Marketing Segment Adjusted EBITDA
Refining & Marketing Segment Adjusted EBITDA 3Q 2024 426 175 3,949 4,000 3,650 -133 -169 $ Millions Volume + $327 Product + $565 Crude - $1,061 -1,457 2,000 49 1,053 -1,488 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structure Margin
Slide 19: Refining & Marketing Segment Adjusted EBITDA 3Q 2024 vs. 2Q 2024 Variance Analysis
Refining & Marketing Segment Adjusted EBITDA 3Q 2024 vs. 2Q 2024 Variance Analysis 2,000 1,972 Volume - $3 Product + $210 Crude - $92 $ Millions 115 24 25 1,053 1,000 -877 -64 -35 -72 -35 0 2Q 2024 Blended Sour Sweet Market Other Operating Distribution Other 3Q 2024 Segment Crack Differential Differ
Slide 20: Income Summary for Operations
Income Summary for Operations 2023 2024 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing segment income 3,032 2,287 3,757 1,242 766 1,319 298 Midstream segment income 1,213 1,201 1,136 1,285 1,246 1,275 1,275 Corporate (184) (183) (246) (224) (228) (223) (224) Income from opera
Slide 21: Reconciliation
Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC 2024 2023 (a) Income taxes for the three months ended September 30, 2024 were ($MM) 3Q 3Q calculated by applying a federal statutory rate and a blended state tax rate to the Net income attributable to MPC 622 3,
Slide 22: Reconciliation
Reconciliation Cash Flow from Operations, Excluding Changes in Working Capital 2024 ($MM) 3Q Cash provided by operating activities 1,684 Less changes: Current receivables 2,143 Inventories (107) Current liabilities and other current assets (2,250) Fair value of derivative instruments 37 Right of use
Slide 23: Reconciliation
Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing Segment Segment income from operations 3,032 2,287 3,757 1,242 766 1,319 298 Add: Depreciation and amortization 464 484 463 476 460 470 465 Refining
Slide 24: Reconciliation
Reconciliation Net Income Attributable to MPC to Adjusted EBITDA 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net income attributable to MPC 2,724 2,226 3,280 1,451 937 1,515 622 Net income attributable to noncontrolling 360 354 351 426 375 440 393 interest Provision for income taxes 823 583 1,004 407 293 3
Slide 25: Reconciliation
Reconciliation Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Margin 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Refining & Marketing segment adjusted EBITDA 3,853 3,163 4,373 2,162 1,874 1,972 1,053 Plus (Less): (a) Reflects the gross margin, excluding Depreciation and amortization (