Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q2 2024 Earnings Presentation
24 slides from Marathon Petroleum's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call August 6, 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 Strong operational and commercial performance in Refining & Strengthen Marketing Competitive Position of our Assets Advanced Midstream growth; $1.6 billion segment adjusted EBITDA in the second quarter, up 6% year-over-year, focused in the Permian and Marcellus Foster Low-Cost Cu
Slide 4: Second Quarter Highlights
Second Quarter Highlights $ Millions (unless otherwise noted) 2Q24 Adjusted Earnings per Share ($/share)(a)(b) $4.12 Adjusted EBITDA(b) $3,392 Cash Flow from Operations, excl. changes in working capital(b) $2,701 Share Repurchases(c) $2,896 Dividends $290 (a) Defined as adjusted diluted income per s
Slide 5: Adjusted EBITDA to Net Income, 2Q 2024 vs. 1Q 2024
Adjusted EBITDA to Net Income 2Q 2024 vs. 1Q 2024 Adjusted EBITDA Reconciliation to Net Income 4,000 151 98 31 4 3,392 3,259 $ Millions -1,021 2,000 1,515 -1,007 0 1Q 2024 Refining & Midstream Corporate 2Q 2024 Adjustments Turnaround Interest, 2Q 2024 Adj. EBITDA Marketing Adj. EBITDA (a) and D&A Ta
Slide 6: Refining & Marketing 2Q 2024 vs. 1Q 2024
Refining & Marketing 2Q 2024 vs. 1Q 2024 105 188 94% capture -70 1,972 2,000 91 1,874 -178 -38 97% utilization Continued strong $ Millions 1,000 operational and commercial performance 0 1Q 2024 USGC Mid-Con West Coast Operating Distribution Other 2Q 2024 Segment Margin Margin Margin Costs Cost
Slide 7: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 5,129 5,000 4,845 Total system capture(a) of 94%; key factors -284 included: Less favorable relative pricing of 4,000 94% $ Millions 100% secondary product Gasoline margin tailwinds 3,000 2,000 R&M Margin Capture R&M Margin Indicator Impact (b)
Slide 8: Midstream 2Q 2024 vs. 1Q 2024
Midstream 2Q 2024 vs. 1Q 2024 1,589 20 11 1,620 Segment Adj. EBITDA up 1,500 2% sequentially; up 6% over prior year period 1,000 $ Millions $2.2B annual distribution to MPC at current level 500 Continued focus on disciplined, high-return investments 0 1Q 2024 MPLX Other 2Q 2024 Segment Midstre
Slide 9: Total Consolidated Cash Flow 2Q 2024
Total Consolidated Cash Flow 2Q 2024 1,595 225 541 -410 -290 2,701 10,000 -541 $ Millions MPLX 1,615 MPC (20) 8,499 -2,896 7,574 5,000 3/31/2024 Cash Flow Changes in Capital Changes Return of Other Dividends Share 6/30/2024 Cash + from Operations, Working Capital Expenditures, in Debt Capital to Rep
Slide 10: Third-Quarter 2024 Outlook
Third-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 11: 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 12: Second Quarter Recap
Second Quarter Recap Second Quarter Recap Strengthen Competitive Position $2.0 Billion $541Million of our Assets R&M Segment Value Creation Adj. EBITDA Investments(a) Foster Low-Cost Culture $550 Million $3.2 Billion Improve Cash Distribution Commercial Capital Returned from MPLX Performance (a) Rep
Slide 13: 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 14: Questions & Answers
Questions & Answers
Slide 15: Appendix
Appendix 15
Slide 16: 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 June 30, 2024 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($ Millions except ratio data) Cash(d) 5,998 2,501 8,499 1.0 Total Debt 6,865 22,072 28,937 0.0 2024 2025 2
Slide 17: Refining & Marketing Segment Adjusted EBITDA 2Q 2024
Refining & Marketing Segment Adjusted EBITDA 2Q 2024 490 210 -98 4,845 4,527 -284 4,000 Volume + $330 Product + $355 Crude - $969 -1,385 $ Millions 24 1,972 2,000 -1,512 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structure Margin Cos
Slide 18: Refining & Marketing Segment Adjusted EBITDA Variance Analysis
Refining & Marketing Segment Adjusted EBITDA 2Q 2024 vs. 1Q 2024 Variance Analysis 105 255 53 108 2,000 -70 1,972 1,874 -85 -90 -178 Volume + $76 Product + $385 Crude - $353 $ Millions 1,000 0 1Q 2024 Blended Sour Sweet Market Other Operating Distribution Other 2Q 2024 Segment Crack Differential Dif
Slide 19: Income Summary for Operations
Income Summary for Operations 2023 2024 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income 3,032 2,287 3,757 1,242 766 1,319 Midstream segment income 1,213 1,201 1,136 1,285 1,246 1,275 Corporate (184) (183) (246) (224) (228) (223) Income from operations before items
Slide 20: Reconciliation: Net Income to Adjusted Net Income
Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC 2024 2023 (a) Income taxes for the three and six months ended June 30, 2024 were ($MM) 2Q 2Q calculated by applying a federal statutory rate and a blended state tax rate to the Net income attributable to MPC 1,5
Slide 21: Reconciliation: Cash Flow from Operations
Reconciliation Cash Flow from Operations, Excluding Changes in Working Capital 2024 ($MM) 2Q Cash provided by operating activities 3,242 Less changes: Current receivables 882 Inventories (19) Current liabilities and other current assets (295) Fair value of derivative instruments (27) Total changes i
Slide 22: Reconciliation: Segment Income to Adjusted EBITDA
Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing Segment Segment income from operations 3,032 2,287 3,757 1,242 766 1,319 Add: Depreciation and amortization 464 484 463 476 460 470 Refining planned tur
Slide 23: Reconciliation: Net Income to Adjusted EBITDA
Reconciliation Net Income Attributable to MPC to Adjusted EBITDA 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Net income attributable to MPC 2,724 2,226 3,280 1,451 937 1,515 Net income attributable to noncontrolling 360 354 351 426 375 440 interest Provision for income taxes 823 583 1,004 407 293 373 Net inte
Slide 24: Reconciliation: R&M Segment Adjusted EBITDA to R&M Margin
Reconciliation Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Margin 2023 2024 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment adjusted EBITDA 3,853 3,163 4,373 2,162 1,874 1,972 Plus (Less): (a) Reflects the gross margin, excluding Depreciation and amortization (464) (484