Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q4 2024 Earnings Presentation
33 slides from Marathon Petroleum's earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
FOURTH QUARTER 2024 Earnings Conference Call February 4, 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS MPC | Q4 2024 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 pla
Slide 3: 2024: Execution of Commitments
2024: EXECUTION OF COMMITMENTS MPC | Q4 2024 Utilization reflecting operational 92% excellence Capture demonstrating strong 99% commercial execution Compelling $5.33/bbl R&M Segment Adj EBITDA per barrel Value Proposition Growth in Midstream Segment Adj Strong through-cycle 6% EBITDA cash flow Incre
Slide 4: 2025: Creating Exceptional Value
2025: CREATING EXCEPTIONAL VALUE MPC | Q4 2024 Committed to achieving peer-leading profitability in each region in which we operate Prioritizing Peer-leading: Strategic Commitments: Safety and reliability Optimize portfolio today → future Operational excellence Leverage value chain advantages Commer
Slide 5: 2025: Value Enhancing Investments
2025: VALUE ENHANCING INVESTMENTS MPC | Q4 2024 2024 2025 $1.25 billion of MPC ACTUAL OUTLOOK standalone capital spend; with $850 million focused on value enhancing $ Millions (unless otherwise noted) opportunities with average expected Refining & Marketing 1,445 1,200 return of ~ 30% IRR Value Enha
Slide 6: Gulf Coast Value Chain
GULF COAST VALUE CHAIN MPC | Q4 2024 Galveston Bay Refinery Strengthens competitive position in the most globally advantaged region by increasing ability to produce higher-value finished product PROJECT UPDATE Construction progressing on time with increased scope Target completion year-end 2027 OVER
Slide 7: West Coast Value Chain
WEST COAST VALUE CHAIN MPC | Q4 2024 Los Angeles Refinery Enhances competitive advantage by improving reliability and lowering costs PROJECT UPDATE Construction progressing on time for year-end 2025 target completion OVERVIEW & OUTLOOK Reduces operating costs by integrating and modernizing utility s
Slide 8: Mid-Con Value Chain
MID-CON VALUE CHAIN MPC | Q4 2024 Robinson Refinery Extends competitive position by shifting yields to higher-value products NEW PROJECT Advancing product yield optimization to create incremental value Target completion year-end 2026 OVERVIEW & OUTLOOK Adds flexibility to increase jet production in
Slide 9: MPLX: Platform for Growth
MPLX: PLATFORM FOR GROWTH MPC | Q4 2024 ▪ Announces $2.0 B capital outlook for 2025 ▪ ~$1.7 B of growth; ~$0.3 B maintenance 2025 CAPITAL OUTLOOK 2,000 1,942 1,450 $ Millions 250 300 Actual Maintenance Crude Oil and Products Natural Gas and NGL Total 2024 Capital (a) Logistics Services (a) 2024 incl
Slide 10: MPLX: Wellhead to Water Strategy
MPLX: WELLHEAD TO WATER STRATEGY MPC | Q4 2024 GULF COAST NGL STRATEGY KEY HIGHLIGHTS Fully integrates NGL system connecting Anticipating mid-teens return Permian to Gulf Coast and export demand Complementary to existing asset and Expected Capex: ~$2.5B customer base Leverages strengths of JV partne
Slide 11: Financial Priorities
FINANCIAL PRIORITIES MPC | Q4 2024 SUSTAINING Maintain safety and reliability of 1 CAPITAL our assets Secure, competitive, and growing 2 DIVIDENDS dividend VALUE Disciplined value enhancing 3 ENHANCING opportunities for today and the CAPITAL future 4 SHARE Steadfast commitment to return REPURCHASES
Slide 12: Midstream Differentiation
MIDSTREAM DIFFERENTIATION MPC | Q4 2024 SOURCES USES Cash flow uplift differentiates MPC versus peers and supports commitment to return of capital MPLX annual distribution to MPC expected to cover: MPC Standalone ▪ MPC dividends MPC Operating Repurchases ▪ Standalone capital Cash Flow (a) outlook MP
Slide 13: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS MPC | Q4 2024 STRENGTHEN RESILIENCY INNOVATE FOR THE FUTURE EMBED SUSTAINABILITY Dickinson, North Dakota Scope 1 & 2 GHG Renewable Diesel Facility Dedicated to cultivating a safe, 30% Intensity Target: 30% reduction by 2030 and collaborative work environment while Processin
Slide 14: 4Q & FY 2024 Highlights
4Q & FY 2024 HIGHLIGHTS MPC | Q4 2024 4Q FY 4TH QUARTER FISCAL YEAR 2024 2024 $ Millions (unless otherwise noted) Adjusted Earnings per Share $0.77 $9.51 ($/share)(a)(b) Adjusted EBITDA(b) $2,120 $11,323 R&M Segment Adj EBITDA per Barrel $2.03 $5.33 Cash Flow from Operations, $1,710 $8,195 excl. Cha
Slide 15: Adjusted EBITDA to Net Income
ADJUSTED EBITDA TO NET INCOME MPC | Q4 2024 Adjusted EBITDA Reconciliation to Net Income 2,507 161 22 2,120 89 79 -577 -1,140 371 -770 3Q 2024 Refining & Midstream Renewable Corporate 4Q 2024 Adjustments Turnaround Interest, 4Q 2024 Adj. EBITDA Marketing Diesel Adj. EBITDA (a) and D&A Taxes, and Net
Slide 16: Refining & Marketing Segment
REFINING & MARKETING SEGMENT MPC | Q4 2024 1,136 KEY DRIVERS -71 119% capture 94% utilization 27 2 559 -507 -14 -14 Continued strong operational and commercial performance 3Q 2024 USGC Mid-Con West Coast Operating Distribution Other 4Q 2024 Segment Margin Margin Margin Costs Costs Segment Adj. EBITD
Slide 17: Refining & Marketing Margins
REFINING & MARKETING MARGINS MPC | Q4 2024 543 3,460 KEY DRIVERS 119% 119% capture(a) 2,917 Solid commercial Execution 100% Typical seasonal tailwinds 4Q24 R&M Capture 4Q24 R&M Margin Indicator Impact Margin(b) ($MM) ($MM) (a) Capture reflects the percentage of our R&M Margin Indicator realized in o
Slide 18: Midstream Segment
MIDSTREAM SEGMENT MPC | Q4 2024 70 9 1,707 1,628 KEY DRIVERS Segment Adj. EBITDA up nearly 5% sequentially MPLX announced $2.5 B fractionation complex and export terminal 3Q 2024 MPLX Other 4Q 2024 Segment Midstream Segment Adj. EBITDA Adj. EBITDA ($MM) ($MM) 18
Slide 19: Total Consolidated Cash Flow
TOTAL CONSOLIDATED CASH FLOW MPC | Q4 2024 497 1,710 -935 5,143 106 -1,173 MPLX -472 -292 2,426 MPLX (1,150) MPC (23) 3,210 -1,374 MPLX 1,519 MPC, Excl. MPLX 2,717 MPC, Excl. MPLX 1,691 9/30/2024 Cash Flow Changes in Capital Changes Return of Other Dividends Share 12/31/2024 Cash + from Operations,
Slide 20: First-Quarter 2025 Outlook
FIRST-QUARTER 2025 OUTLOOK MPC | Q4 2024 Gulf Coast Mid-Con West Coast R&M Total Crude Throughput 980 1,055 475 2,510 MBPD Other Charge / Blendstocks 180 80 50 260 MBPD Total Throughput 1,160 1,135 525 2,770 MBPD Utilization 80% 90% 86% 85% Sweet Crude 40% 75% 35% 55% % of Throughput Sour Crude 60%
Slide 21: 2025: Committed to Creating Exceptional Value
2025: COMMITTED TO CREATING MPC | Q4 2024 EXCEPTIONAL VALUE Prioritizing Peer-leading: Safety and reliability Operational excellence Commercial performance Compelling Profitability per barrel Value Proposition Strong through-cycle ← cash flow Durable midstream growth Strategic Commitments: delivers
Slide 22: Appendix
APPENDIX
Slide 23: Balance Sheet: Foundation for Strategy Execution
BALANCE SHEET: MPC | Q4 2024 FOUNDATION FOR STRATEGY EXECUTION MPC SENIOR NOTES MATURITIES (a) MPC MPC MPLX 3.0 NEXT 10 YEARS Excluding Consolidated Adjustments (c) MPLX As of December 31, 2024 ($ Millions except ratio data) 2.0 $ Billions Cash (d) $3,210 $1,519 $1,691 APPENDIX 1.0 Total Debt $27,48
Slide 24: Renewable Diesel Segment
RENEWABLE DIESEL SEGMENT MPC | Q4 2024 ESTABLISHING RENEWBALE DIESEL SEGMENT WILL: ▪ Enhance alignment of MPC’s reporting with direct peers who reflect separate renewable diesel segments ▪ Provide Refining & Marketing segment results without the impact from renewable diesel Refining & Renewable Mids
Slide 25: Renewable Diesel Segment
RENEWABLE DIESEL SEGMENT MPC | Q4 2024 Renewable Diesel segment Adj. EBITDA moved from Refining & Marketing segment to Renewable Diesel segment Pro-rata portion of equity method investment depreciation and turnaround expense are added back to Renewable Diesel segment Adj. EBITDA but were not previou
Slide 26: Refining & Marketing Segment Adjusted EBITDA
REFINING & MARKETING SEGMENT ADJUSTED EBITDA MPC | Q4 2024 542 3,460 443 -86 2,510 51 Volume + $306 Product + $1,008 Crude - $772 APPENDIX -1,449 21 559 -1,473 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structure Margin ($MM) Costs Cos
Slide 27: Refining & Marketing Segment Adjusted EBITDA
REFINING & MARKETING SEGMENT ADJUSTED EBITDA MPC | Q4 2024 1,136 Volume - $30 Product + $492 Crude + $174 636 APPENDIX 2 559 -14 -14 17 47 -1,127 -124 3Q 2024 Blended Sour Sweet Market Other Operating Distribution Other 4Q 2024 Segment Crack Differential Differential Structure Margin Costs Costs Seg
Slide 28: Income Summary for Operations
INCOME SUMMARY FOR OPERATIONS MPC | Q4 2024 2023 2024 ($ Millions unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment income 3,107 2,344 3,760 1,334 895 1,387 401 (38) Midstream segment income 1,213 1,201 1,136 1,285 1,246 1,275 1,275 1,343 Renewable Diesel segment income (7
Slide 29: Reconciliation: Net Income to Adjusted Net Income
RECONCILIATION MPC | Q4 2024 NET INCOME ATTRIBUTABLE TO MPC TO ADJUSTED NET INCOME ATTRIBUTABLE TO MPC 2024 2023 (a) Income taxes for the three months ended December 31, 2024 were ($ Millions unless otherwise noted) 4Q 4Q calculated by applying a federal statutory rate and a blended state tax Net in
Slide 30: Reconciliation: Cash Flow from Operations, Excluding Working Capital
RECONCILIATION MPC | Q4 2024 CASH FLOW FROM OPERATIONS, EXCLUDING CHANGES IN WORKING CAPITAL 2024 ($ Millions) 4Q Cash provided by operating activities 2,207 APPENDIX Less changes: Current receivables (944) Inventories 318 Current liabilities and other current assets 1,108 Fair value of derivative i
Slide 31: Reconciliation: Segment Income to Segment Adjusted EBITDA
RECONCILIATION MPC | Q4 2024 SEGMENT INCOME FROM OPERATIONS TO SEGMENT ADJUSTED EBITDA AND ADJUSTED EBITDA 2023 2024 ($ Millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing Segment Segment income from operations 3,107 2,344 3,760 1,334 895 1,387 401 (38) Add: Depreciation and amortization 448 468
Slide 32: Reconciliation: Net Income to Adjusted EBITDA
RECONCILIATION MPC | Q4 2024 NET INCOME ATTRIBUTABLE TO MPC TO ADJUSTED EBITDA 2023 2024 ($ Millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net income attributable to MPC 2,724 2,226 3,280 1,451 937 1,515 622 371 Net income attributable to noncontrolling interests 360 354 351 426 375 440 393 414 APPENDIX Provisio
Slide 33: Reconciliation: R&M Adjusted EBITDA to R&M Margin
RECONCILIATION MPC | Q4 2024 REFINING & MARKETING SEGMENT ADJUSTED EBITDA TO REFINING & MARKETING MARGIN 2023 2024 ($ Millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment adjusted EBITDA 3,911 3,187 4,359 2,248 1,986 2,022 1,136 559 Plus (Less) : Depreciation and amortization (448) (468) (