Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q2 2013 Earnings Presentation
22 slides from Marathon Petroleum's earnings presentation, Aug 1, 2013
Slide 1: Second Quarter 2013 Earnings Conference Call and Webcast
Second Quarter 2013 Earnings Conference Call and Webcast August 1, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements relate to, among other things, MPC's expectations, estimates and projections concerning MPC business and operations. You can identify forwa
Slide 3: Highlights
Highlights Achieved strong operating performance Delivered strong Speedway segment performance Impacted by changing market conditions Weaker USGC fundamentals Significant volatility in Chicago market Rapid escalation in price of RINs Returned nearly $1 billion to shareholders Announc
Slide 4: 2Q 2013 Earnings
2Q 2013 Earnings* 2Q 2013 2Q 2012 Earnings $593 MM $814 MM Adjusted Earnings $632 MM $867 MM Earnings per Diluted $1.83 $2.38 Share Adjusted Earnings per $1.95 $2.53 Diluted Share Adjusted Earnings Adjusted Earnings per Diluted $12 Share $4,000 3,352 9.79 $3,500 $10 $3,000 760 2.26 $8 $2,500 Million
Slide 5: Adjusted Earnings 2Q 2013 vs. 2Q 2012 Variance Analysis
Adjusted Earnings* 2Q 2013 vs. 2Q 2012 Variance Analysis $1,000 $900 867 (422) $800 $700 169 (6) 632 $600 Millions $500 16 8 $400 $300 $200 $100 $0 2Q 2012 Refining & Speedway Pipeline Income Noncontrollin 2Q 2013 Marketing Transportatio Taxes g n Interests *References to Earnings refer to Net Incom
Slide 6: Refining & Marketing Segment Income Variance Analysis
Refining & Marketing Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis $2,500 $2,000 640 (117) (101) (117) (6) (381) $1,500 1,325 (313) Millions $1,000 (27) 903 $500 $0 2Q 2012 *LLS *Sweet/ *LLS / *LLS *Market Direct Other Other 2Q 2013 6-3-2-1 Sour WTI Prompt Structur Operatin Gross Crack Diff.
Slide 7: Speedway Segment Income Variance Analysis
Speedway Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis $130 (5) $125 9 123 $120 12 Millions $115 107 $110 $105 $100 $95 2Q 2012 Light Product Merchandise Other 2Q 2013 Gross Margin Gross Margin 7
Slide 8: Pipeline Transportation Segment Income Variance Analysis
Pipeline Transportation Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis (6) $80 28 (14) $60 58 50 Millions $40 $20 $0 2Q 2012 Trans. Depreciation Operating 2Q 2013 Revenue Expenses 8
Slide 9: Total Company Cash Flow
Total Company Cash Flow 2Q 2013 $6,000 (1,295) 859 $5,000 4,737 (251) (113) (882) $4,000 14 3,069 $3,000 Millions $2,000 $1,000 $0 3/31/13 Operating Working Cash Dividends Share Other 6/30/13 Cash Cash Flow Capital Capital Paid Repurchase Cash Balance before Expenditur s Balance Working es Capital a
Slide 10: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($MM) 2013 2013 2012 2012 2Q 1Q 4Q 3Q As of quarter ended: Cash and cash equivalents 3,069 4,737 4,860 3,387 Total debt 3,410 3,416 3,361 3,349 Equity 12,197 12,412 12,105 11,467 Debt-to-total-capital ratio 22% 22% 22% 23% Last Twelve Months (LTM) EBITDA 6,318 6,5
Slide 11: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders Net cash provided by $6,000 operations $5,519 $5,000 ~81% of Free Free $2,277 Cash Dividends and share $4,000Cash Flow** repurchases* Flow** $2,819 Millions Change in cash and all $3,000 $542 other Cash capital $2,000 expenditures and $2,700 acquisitions $1,
Slide 12: 3Q 2013 Outlook
3Q 2013 Outlook Projected 3Q 2013 3Q 2012 Crude throughput 1.65 MMBD 1.19 MMBD Total throughput 1.85 MMBD 1.35 MMBD Percent of WTI-priced crude 22% 26% Refinery direct operating costs in Refining & Marketing gross margin*: Turnaround and major maintenance $1.15 $1.18 Depreciation & amortization 1.30
Slide 13: Appendix
Marathon mony) Petroleum Corporation Appendix
Slide 14: Reconciliation: Earnings to Adjusted Earnings
Reconciliation Earnings to Adjusted Earnings* ($MM) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 1,22 Earnings 596 814 755 725 593 4 Pension settlement expenses** 53 22 5 39 (117 MN asset sale settlement gain** ) 1,12 Adjusted Earnings 596 867 760 725 632 9 *References to Earnings refer to Net Income attributable to
Slide 15: Reconciliation: Free Cash Flow to Net Cash Provided from Operations
Reconciliation Free Cash Flow to Net Cash Provided from Operations ($MM) 2012 2013 (Quarter to date) 3Q 4Q 1Q 2Q Net cash provided by (used 1,833 2,043 2,079 (436) in) operating activities Additions to property, plant (331) (403) (195) (229) and equipment (1,49 Acquisitions* (27) - (22) 3) Free cash
Slide 16: Income
Income ($MM unless otherwise noted) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income 943 1,325 1,691 1,139 1,105 903 Speedway segment income 50 107 76 77 67 123 Pipeline Transportation segment income 42 50 52 72 51 58 Corporate and other unallocated items (79) (92) (74) (91) (67) (64)
Slide 17: EBITDA Reconciliation to Net Income Attributable to MPC
EBITDA Reconciliation to Net Income (Loss) Attributable to MPC ($MM) 201 1 2012 2013 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1,22 Net Income (Loss) attributable to MPC (75) 596 814 755 725 593 4 Less: Net interest and other financial income (costs) (22) (22) (17) (25) (45) (48) (45) Add: Net income attributable to non
Slide 18: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Cash Provided by (Used in) Operations ($MM) 2012 2013 (Quarter to date) 3Q 4Q 1Q 2Q Net cash provided by (used in) operations 1,833 2,043 2,079 (436) Less changes in working capital: Changes in current receivables (393
Slide 19: Capital Expenditures & Investments
Capital Expenditures & Investments* ($MM) 2013 2Q 2013 2013 YTD Budget Refining & Marketing 1,016 134 257 Speedway 255 76 112 Pipeline Transportation 184 41 61 Corporate and Other 160 28 52 Subtotal 1,615 279 482 Capitalized Interest 43 4 8 Total Capital Expenditures & 1,658 283 490 Investments *Exc
Slide 20: MPC Crude Slate
MPC Crude Slate 100% 90% 21 23 22 24 23 25 22 22 20 26 30 31 80% Other 70% Sweet 60% Other 48 45 50 55 Sour 50% 56 52 52 49 52 52 48 WTI 48 40% Based 30% 20% 26 27 29 30 28 26 23 25 25 22 22 10% 21 0% 2 0
Slide 21: Refining & Marketing Indicative Gross Margin – 2Q 2013
Refining & Marketing Indicative Gross Margin – 2Q 2013 $3,000 364 (179) $2,500 43 (1,030) 506 $2,000 1,671 $1,500 (180) Millions 1,195 (292) $1,000 903 $500 $0 *LLS *Sweet/ *LLS/ *LLS *Market Direct Other R&M Other R&M 6-3-2-1 Sour WTI Prompt Structur Operati Gross Gross Segmen Crack Diff. Spread vs
Slide 22: Marathon Petroleum Corporation
Marathon mony) Petroleum Corporation