Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2024 Earnings Presentation
22 slides from Marathon Petroleum's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Earnings Conference Call
First Quarter 2024 Earnings Conference Call April 30, 2024 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 Adjusted EBITDA of $3.3 billion while safely and successfully executing largest planned maintenance quarter in MPC history Strengthen Competitive Position Advanced midstream growth strategy with new processing plants of our Assets in the Marcellus and Permian basins and acquisiti
Slide 4: Sustainability Highlights
Sustainability Highlights STRENGTHEN RESILIENCY INNOVATE FOR THE FUTURE EMBED SUSTAINABILITY Dickinson, North Dakota – Renewable Diesel Facility Dedicated to cultivating a safe, collaborative work Scope 1 & 2 GHG Intensity environment while promoting an inclusive culture 30% Target: 30% reduction by
Slide 5: First Quarter Highlights
First Quarter Highlights $ Millions (unless otherwise noted) 1Q24 Earnings per Share ($/share)(a) $2.58 Adjusted EBITDA(b) $3,259 Cash Flow from Operations, excl. changes in working capital(b) $1,921 Share Repurchases(c) $2,218 Dividends $299 (a) Defined as diluted income per share, based on weighte
Slide 6: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income 1Q 2024 vs. 4Q 2023 Adjusted EBITDA Reconciliation to Net Income 4,000 3,528 19 0 3,259 -288 $ Millions 2,000 -1,475 937 -847 0 4Q 2023 Refining & Midstream Corporate 1Q 2024 Turnaround Interest, 1Q 2024 Adj. EBITDA Marketing Adj. EBITDA and D&A Taxes, and Net Income No
Slide 7: Refining & Marketing
Refining & Marketing 1Q 2024 vs. 4Q 2023 92% capture 2,162 2,000 -52 -1 76 38 1,874 82% utilization -287 -62 $ Millions Continued commercial 1,000 execution 0 4Q 2023 USGC Mid-Con West Coast Operating Distribution Other 1Q 2024 Segment Margin Margin Margin Costs Costs (b) Segment Adj. EBITDA (
Slide 8: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 4,996 5,000 Total system capture(a) of 92%; key factors 4,604 included: -392 Light product margins 4,000 92% $ Millions 100% Product inventory and derivatives 3,000 2,000 R&M Margin Capture R&M Margin Indicator Impact (b) (a) Capture reflects th
Slide 9: Midstream
Midstream 1Q 2024 vs. 4Q 2023 1,570 26 1,589 1,500 -7 Segment Adj. EBITDA up 1% sequentially; up 4% over prior year period 1,000 $ Millions $2.2B distribution to MPC annually at current level 500 Continued focus on disciplined, high-return investments 0 4Q 2023 MPLX Other 1Q 2024 Segment Midst
Slide 10: Total Consolidated Cash Flow
Total Consolidated Cash Flow 1Q 2024 1,921 -389 10,224 -710 -622 79 10,000 $ Millions -412 Acquisition of -299 Utica Midstream Assets 7,574 -2,218 5,000 12/31/2023 Cash Flow Changes in Capital Acquisitions Return of Other Dividends Share 3/31/2024 Cash + from Operations, Working Capital Expenditures
Slide 11: Second-Quarter 2024 Outlook
Second-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: Continued Focus to Drive Superior Returns
Continued Focus to Drive Superior Returns First Quarter Recap Strengthen Competitive Position $1.9 Billion $1.3 Billion of our Assets R&M Segment Value Creation Adj. EBITDA Investments(a) Foster Low-Cost Culture $550 Million $2.5 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 MPC Senior Notes Maturities - Next 10 Years (a) 3.0 MPC Excluding MPLX MPC As of March 31, 2024 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($ Millions except ratio data) Cash(d) 7,189 385 7,574 1.0 Total Debt 6,845 20,444 27,289 0.0 2024 2025 20
Slide 16: Refining & Marketing Segment Adjusted EBITDA
Refining & Marketing Segment Adjusted EBITDA 1Q 2024 575 -8 4,604 157 4,272 -392 4,000 Volume + 254 Product - 32 Crude - 614 $ Millions -1,490 2,000 202 1,874 -1,442 0 Blended Sweet Sour Market Other R&M Margin, Operating Distribution Other R&M Crack Differential Differential Structure Margin exclud
Slide 17: Refining & Marketing Segment Adjusted EBITDA Variance Analysis
Refining & Marketing Segment Adjusted EBITDA 1Q 2024 vs. 4Q 2023 Variance Analysis 974 101 -127 -11 2,162 2,000 38 76 1,874 $ Millions -1,277 -62 Volume - 98 Product - 1,164 Crude - 15 0 4Q 2023 Blended Sour Sweet Market Other Operating Distribution Other 1Q 2024 Segment Crack Differential Different
Slide 18: Income Summary for Operations
Income Summary for Operations 2023 2024 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income 3,032 2,287 3,757 1,242 766 Midstream segment income 1,213 1,201 1,136 1,285 1,246 Corporate (184) (183) (246) (224) (228) Income from operations before items not allocated to segm
Slide 19: Reconciliation
Reconciliation Cash Flow from Operations, Excluding Changes in Working Capital 2024 ($MM) 1Q Cash provided by operating activities 1,532 Less changes: Current receivables (964) Inventories (462) Current liabilities and other current assets 999 Fair value of derivative instruments 37 Right of use ass
Slide 20: Reconciliation
Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q Refining & Marketing Segment Segment income from operations 3,032 2,287 3,757 1,242 766 Add: Depreciation and amortization 464 484 463 476 460 Refining planned turnaround costs
Slide 21: Reconciliation
Reconciliation Net Income Attributable to MPC to Adjusted EBITDA 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q Net income attributable to MPC 2,724 2,226 3,280 1,451 937 Net income attributable to noncontrolling interest 360 354 351 426 375 Provision for income taxes 823 583 1,004 407 293 Net interest and other fi
Slide 22: Reconciliation
Reconciliation Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Margin 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment adjusted EBITDA 3,853 3,163 4,373 2,162 1,874 Plus (Less): (a) Reflects the gross margin, excluding Depreciation and amortization (464) (484) (463) (