Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2016 Earnings Presentation
21 slides from Marathon Petroleum's earnings presentation, Apr 28, 2016
Slide 1: First Quarter 2016 Earnings Conference Call and Webcast
Marathon... > , Petroleum Corporation First Quarter 2016 Earnings Conference Call and Webcast April 28, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation ("MPC") and MPLX LP ("MPLX"). These forward-looking statements relate to, among other things, expectations, estimates and projection
Slide 3: Highlights
Highlights ) Reported first-quarter earnings of $1 MM Results include pretax charges of $0.06 per diluted share related to the impairment of goodwill and the valuation of inventories at the lower of cost or market Completed major turnaround activity and refinery light crude upgrade project Delivered
Slide 4: 1Q 2016 Earnings
1Q 2016 Earnings* 1Q 2016 1Q 2015 Earnings $1 MM $891 MM Earnings per Diluted Share** $0.003 $1.62 Earnings Earnings per Diluted Share** 3.000 $2,852 6 , | 187) $5.26 2,500 5 0.35) 2,000 = 24 1.76 ao S 1,500 306 & 3 = 1,000 #2 , ~ = | = 0 $1 0 $0.003 2015 2016 2015 2016 =™1Q 2Q 3Q ™4Q *Eamings refer
Slide 5: Earnings: 1Q 2016 vs. 1Q 2015 Variance Analysis
Earnings* 1Q 2016 vs. 1Q 2015 Variance Analysis 1,000 891 800 600 400 200 2 475 91 1 0 = a -200 -400 ——— -600 (1,354) (1) (129) (61) -800 1Q 2015 Refining & Speedway Midstream** Items not Impairment — Interest and Income Noncontrolling 1Q 2016 Marketing Allocated to Expense Other Taxes Interests Seg
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 1Q 2016 vs. 1Q 2015 Variance Analysis 869 (869) (81) Ms) 200 (56) (199) 0 -200 1Q 2015 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost or Gross Crack vs. Market Margin Delivered *Based on market indicators using a
Slide 7: Speedway Segment Income
Speedway Segment Income 1Q 2016 vs. 1Q 2015 Variance Analysis 200 180 168 160 140 120 100 167 (11) (33) $MM 1Q 2015 Light Product Merchandise Gain on Sale of Retail Other 1Q 2016 Gross Margin Gross Margin Location
Slide 8: Midstream Segment Income
Midstream Segment Income 1Q 2016 vs. 1Q 2015 Variance Analysis 1Q 2015 Revenue Equity Affiliates MarkWest Operating Expenses 1Q 2016 and Other
Slide 9: Total Company Cash Flow
Total Company Cash Flow 1Q 2016 2,000 604 1,500 (277) 2 1,000 (372) A 500 281 308 12/31/2015 Operating Working Net Debt Cash Capital Return of Capital Other 3/31/2016 Cash Cash Flow Capital Expenditures and to Shareholders* Cash Balance before Investments Balance Working Capital *$169 MM dividends p
Slide 10: Select Balance Sheet / Cash-Flow Data
Select Balance Sheet / Cash-Flow Data As of quarter ended: MPC debt excluding MPLX®) 6,850 6,669 5,939 5,945 MPLX consolidated debt® 4,716 5,256 753 753 Total consolidated debt® 11,566 11,925 6,692 6,698 Cash and cash equivalents 308 1,127 2,044 1,881 Equity 19,494 19,675 12,925 12,290 Debt-to-total
Slide 11: 2Q 2016 Outlook
2Q 2016 Outlook Crude Throughput* Other Charge! Feedstocks Throughput* Total Throughput* Percent of WTl-priced Crude Turnaround and Major Maintenance Depreciation and Amortization Refinery Direct Operating Costs**** Other Manufacturing Cost Total Direct Operating Costs Corporate and Other Unallocate
Slide 12: Appendix
Appendix
Slide 13: Capital Expenditures & Investments
Capital Expenditures & Investments as ce Refining & Marketing (R&M) Midstream R&M Total Refining & Marketing Segment Speedway Midstream, including MPLX* Corporate and Other Total Capital Expenditures & Investments** 2016 Revised Plan 210 1,045 33 250 243 1,295 50 310 350 1,250 24 95 667 2,950 *2016
Slide 14: Sustaining Capital Returns Since Spin
Sustaining Capital Returns Since Spin Cumulative Return of Capital Since July 1, 2011 10,000 Pp y $9.7B 8,000 s 6,000 = A 4,000 2,000 W W r 0 PRR REREREREEEEE aN A a ad ad 28 2 Le De Le Ae ah ah A A WO 26 2G SEEPS SEES SEES FEELS ES mDividends # Share repurchases
Slide 15: Earnings
Earnings ($MM unless otherwise noted) Refining & Marketing segment income* Speedway segment income** Midstream segment income Corporate and other unallocated items Pension settlement expenses Impairments’ Income from operations Net interest and other financing income (costs) Income (loss) before inc
Slide 16: Reconciliation: Adjusted EBITDA to Net Income
Reconciliation Adjusted EBITDA to Net Income Attributable to MPC ($MM) Net Income attributable to MPC 672 798 891 826 948 187 1 inne wena) and other financial (50) (72) (81) (64) (70) (103) (142) Aa: Net income (aes eftutable re a) Provision for income taxes 333 382 486 432 521 67 11 Depreciation an
Slide 17: Cash Provided from Operations Before Changes in Working Capital
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations (For the Quarter) Net cash provided by operations 994 1,069 808 327 Less changes in working capital: Changes in current receivables (512) 752 361 325 Changes in inventories (103) (16) (6
Slide 18: Refining and Marketing Segment Income vs. 4Q 2015
Refining and Marketing Segment Income 1Q 2016 vs. 4Q 2015 Variance Analysis 400 300 200 Z 100 87 A 0 2 6 (352) -100 70 4 — 200 C4 (378) -300 4Q 2015 *LLS *Sweet/ *LLS/WTI *LLS *Market — Lower of Other 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost or Gross Crack vs. Market Margin Delivered “Based on
Slide 19: Refining and Marketing Indicative Gross Margin
Refining and Marketing Indicative Gross Margin 1Q 2016 2,000 15 1,500 44 2 (15) —« s 1,000 S 747 A 500 (1,309) 6) — (349) (62) -500 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other R&M Direct Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Cost or Gross Gross Operating Segment Crack Deliver
Slide 20: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 60 = $35 40 = $20 $24 $27 $32 18 $18 $20 20 $10 $15 $16 $16 $18 1Q13 2Q13 3013 4Q13 1Q14 2014 3014 4Q14 1015 2Q15 3Q15 4Q15 1Q16 LP Distributions =GP Distributions, including IDRs Cash Distribution and Asset 2013 2014 2015 2016 Sales Proceeds from MPLX a
Slide 21: Marathon
MARATHON ®