Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q4 2012 Earnings Presentation
25 slides from Marathon Petroleum's earnings presentation, Jan 30, 2013
Slide 1: Fourth Quarter 2012 Earnings Conference Call and Webcast
Fourth Quarter 2012 Earnings Conference Call and Webcast January 30, 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, Marathon Petroleum Corporation’s (MPC) expectations, estimates and projections concerning MPC business and o
Slide 3: CEO Opening Remarks
CEO Opening Remarks Strong 4th quarter and full year 2012 earnings Record safety performance Operational excellence Returning capital to shareholders Returned $1.76 billion in 2012 – Accelerated share repurchase programs – Base dividend increase Board authorized additional $2 billion sha
Slide 4: Future Focus
Future Focus Safe, reliable operations Demand outlook Gasoline flat to declining Distillate growth of 3.7% Exports opportunities remain strong $1.6 billion capital investments in 2013 to capture value from changing supply patterns Invest in midstream assets Grow Speedway and Brand sa
Slide 5: 4Q and Full Year 2012 Earnings
4Q and Full Year 2012 Earnings* 4Q 2012 4Q 2011 2012 2011 Earnings (Loss) $755 MM ($75) MM $3,389 MM $2,389 MM Adjusted Earnings (Loss) $760 MM ($75) MM $3,352 MM $2,406 MM Earnings (Loss) per Diluted Share $2.24 ($0.21) $9.89 $6.67 Adjusted Earnings (Loss) per Diluted Share $2.26 ($0.21) $9.79 $6.7
Slide 6: Adjusted Earnings 4Q 2012 vs. 4Q 2011 Variance Analysis
Adjusted Earnings (Loss)* 4Q 2012 vs. 4Q 2011 Variance Analysis $1,400 34 (27) 1,321 4 (493) $1,200 $1,000 $800 (4) 760 Millions $600 $400 $200 $0 (75) -$200 4Q 2011 Refining & Speedway Pipeline Interest & Income Non 4Q 2012 Marketing Transportation Other Taxes Controlling Interest *References to Ea
Slide 7: Refining & Marketing Segment Income 4Q Variance Analysis
Refining & Marketing Segment Income 4Q 2012 vs. 4Q 2011 Variance Analysis $1,500 182 35 (90) (24) (43) 1,139 81 809 $1,000 Millions $500 371 $0 (182) -$500 4Q 2011 *LLS *Sweet/ *LLS /WTI *LLS *Market Direct Other Other 4Q 2012 6-3-2-1 Sour Diff. Spread Prompt vs. Structure Operating Gross Crack Deli
Slide 8: Refining & Marketing Segment Income 2012 vs. 2011 Variance Analysis
Refining & Marketing Segment Income 2012 vs. 2011 Variance Analysis $7,000 119 49 (126) (197) 870 (758) $6,000 1,684 (134) 5,098 $5,000 $ Millions $4,000 3,591 $3,000 $2,000 $1,000 $0 2011 *LLS *Sweet/ *WTI-LLS *LLS *Market Direct Other Other 2012 6-3-2-1 Sour Diff. Spread Prompt Structure Operating
Slide 9: Speedway Segment Income Variance Analysis
Speedway Segment Income Variance Analysis 4Q 2012 vs. 4Q 2011 2012 vs. 2011 $100 13 (17) $400 (52) 76 8 $80 73 77 15 310 $300 271 Millions Millions $60 $200 $40 $100 $20 $0 $0 4Q 2011 Light Merchandise Other 4Q 2012 2011 Light Merchandise Other 2012 Product Gross Margin Product Gross Margin Gross Gr
Slide 10: Pipeline Transportation Segment Income Variance Analysis
Pipeline Transportation Segment Income Variance Analysis 4Q 2012 vs. 4Q 2011 2012 vs. 2011 $100 $300 13 (5) 54 (7) (13) (7) (17) $80 33 72 216 $200 199 Millions Millions $60 38 $40 $100 $20 $0 $0 4Q 2011 Trans. Pipeline Mechanical Other 4Q 2012 2011 Trans. Pipeline Mechanical Other 2012 Revenue Affi
Slide 11: Total Company Cash Flow 4Q 2012
Total Company Cash Flow 4Q 2012 $6,000 919 (403) (116) (500) 42 4,860 $5,000 1,124 407 $4,000 3,387 Millions $3,000 $2,000 $1,000 $0 9/30/12 Operating Working Cash Capital Dividends Accelerated MPLX Other 12/31/12 Cash Cash Flow Capital Expenditures Paid Share Proceeds Cash Balance before and Repurc
Slide 12: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($MM) 2012 2012 2012 2012 4Q 3Q 2Q 1Q As of quarter ended: Cash and cash equivalents 4,860 3,387 1,895 2,205 Total debt 3,361 3,349 3,335 3,321 Equity 12,105 11,467 10,326 9,216 Debt-to-total-capital ratio 22% 23% 24% 26% Last Twelve Months (LTM) EBITDA 6,342 4,94
Slide 13: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders $5,000 Net cash provided by operations $4,492 $4,500 $4,000 60% of Dividends and share $1,757 $3,500 Free Cash Free Cash repurchases* Flow** Flow** $3,000 Millions $2,933 $2,500 Change in cash and all other $1,176 $2,000 $1,500 Cash capital expenditures $1,0
Slide 14: 1Q 2013 Outlook
1Q 2013 Outlook Projected 1Q 2013* 1Q 2012 Crude throughput 1.40 MMBD 1.15 MMBD Total throughput 1.65 MMBD 1.32 MMBD Percent of WTI-priced crude 24% 30% Direct operating costs in Refining & Marketing gross margin**: Planned turnaround and major maintenance $1.25 $1.05 Depreciation & amortization 1.5
Slide 15: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2012 Budget 4Q 2012 2012 2013 Budget* Refining & Marketing 745 192 705 1,016 Speedway 353 83 340 255 Pipeline Transportation 230 42 211 184 Corporate and Other 91 56 103 160 Subtotal 1,419 373 1,359 1,615 Capitalized Interest 116 6 101 43 Total Capital Expend
Slide 16: 2013 Significant Capital Projects
2013 Significant Capital Projects Upgrade Galveston Bay refinery Speedway expansion Garyville diesel projects Utica shale projects Condensate splitters Wellsville terminal Patoka to Catlettsburg pipeline upgrade Robinson unicracker revamp Garyville gasoline and diesel export Catl
Slide 17: Appendix
Marathon mony) Petroleum Corporation Appendix
Slide 18: Reconciliation: Earnings to Adjusted Earnings
Reconciliation Earnings (Loss) to Adjusted Earnings (Loss)* ($MM) 2011 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Earnings (Loss) 529 802 1,133 (75) 596 814 1,224 755 Pension settlement expenses** 53 22 5 MN asset sale settlement gain** (117) Income tax law changes 17 Adjusted Earnings (Loss) 529 819 1,133 (75) 5
Slide 19: Reconciliation: Free Cash Flow
Reconciliation Free Cash Flow to Net Cash Provided from Operations ($MM) 2012 (Quarter to date) 1Q 2Q 3Q 4Q Net cash provided from operating activities 347 269 1,833 2,043 Additions to property, plant and equipment (309) (326) (331) (403) Acquisitions - (163) (27) - Free cash flow 38 (220) 1,475 1,6
Slide 20: Income
Income ($MM unless otherwise noted) 2011 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment income (loss) 802 1,260 1,711 (182) 943 1,325 1,691 1,139 Speedway segment income 33 80 85 73 50 107 76 77 Pipeline Transportation segment income 51 54 56 38 42 50 52 72 Corporate and other unallocated
Slide 21: EBITDA Reconciliation to Net Income Attributable to MPC
EBITDA Reconciliation to Net Income (Loss) Attributable to MPC ($MM) 2011 2012 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Income (Loss) attributable to MPC 802 1,133 (75) 596 814 1,224 755 Less: Related party net interest and other financial income 18 - - - - 1 - Less: Net interest and other financial income (costs)
Slide 22: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Cash Provided from Operations ($MM) 2012 (Quarter to date) 1Q 2Q 3Q 4Q Net cash provided from operations 347 269 1,833 2,043 Less changes in working capital: Changes in current receivables (406) 1,159 (393) 491 Changes
Slide 23: MPC Crude Slate
MPC Crude Slate 100% 90% 21 23 22 24 23 22 22 20 25 31 80% Other Sweet 70% 60% Other Sour 50% 56 52 52 49 48 45 50 52 55 48 WTI Based 40% 30% 20% 25 26 27 29 30 28 26 25 10% 21 23 0% 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 23
Slide 24: Refining & Marketing Indicative Gross Margin – 4Q 2012
Refining & Marketing Indicative Gross Margin – 4Q 2012 $2,500 51 (754) 612 29 $2,000 $1,500 116 1,423 (284) Millions 863 1,139 $1,000 506 $500 $0 *LLS *Sweet/ *LLS/WTI *LLS *Market Direct Other R&M Other R&M 6-3-2-1 Sour Diff. Spread Prompt vs. Structure Operating Gross Gross Segment Crack Delivered
Slide 25: Marathon Petroleum Corporation
Marathon mony) Petroleum Corporation