Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2015 Earnings Presentation
23 slides from Marathon Petroleum's earnings presentation, Apr 30, 2015
Slide 1: First Quarter 2015 Earnings Conference Call and Webcast
First Quarter 2015 Earnings Conference Call and Webcast April 30, 2015
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding both MPC and MPLX. These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations o
Slide 3: Highlights
Highlights Reported record first-quarter earnings of $891 million Converted over 400 of the 1,245 retail sites to the Speedway brand since acquisition Authorized the sale of MPC’s marine assets to MPLX Returned $345 million of capital to shareholders, including $209 million of share repurcha
Slide 4: 1Q 2015 Earnings
1Q 2015 Earnings* 1Q 2015 1Q 2014 Earnings $891 MM $199 MM Earnings per Diluted Share $3.24 $0.67 Earnings Earnings per Diluted Share 3,000 10 8.78 2,524 2,500 8 798 2.86 $/Share 2,000 6 $MM 1,500 672 2.36 4 1,000 855 2 2.95 500 891 3.24 0 199 0 0.67 2014 2015 2014 2015 1Q 2Q 3Q 4Q *Earnings refer t
Slide 5: Earnings: 1Q 2015 vs. 1Q 2014 Variance Analysis
Earnings* 1Q 2015 vs. 1Q 2014 Variance Analysis 1,400 110 50 1,200 954 (5) (35) 1,000 891 800 (378) (4) $MM 600 400 199 200 0 1Q 2014 Refining & Speedway Pipeline Items not Interest and Income Noncontrolling 1Q 2015 Marketing Transportation Allocated to Other Financing Taxes Interests Segments Costs
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 1Q 2015 vs. 1Q 2014 Variance Analysis 1,600 503 1,400 1,316 1,200 (93) 96 1,000 68 66 449 (104) $MM 800 (31) 600 400 362 200 0 1Q 2014 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 1Q 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack v
Slide 7: Speedway Segment Income
Speedway Segment Income 1Q 2015 vs. 1Q 2014 Variance Analysis 200 22 180 168 70 160 (18) 140 120 $MM 100 36 80 60 58 40 20 0 1Q 2014 Acquired Locations* Light Product Merchandise Other 1Q 2015 Gross Margin Gross Margin *Refers to Hess’ retail operations and related assets acquired September 30, 2014
Slide 8: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income 1Q 2015 vs. 1Q 2014 Variance Analysis 80 4 72 70 (2) 67 (7) 60 50 $MM 40 30 20 10 0 1Q 2014 Transportation Pipeline Operating Expenses & 1Q 2015 Revenue Affiliates Other 8
Slide 9: Total Company Cash Flow
Total Company Cash Flow 1Q 2015 3,000 103 1,245 2,500 (55) (431) 67 2,078 2,000 (136) (209) 1,494 $MM 1,500 1,000 500 0 12/31/14 Operating Working Long-term Cash Capital Dividends Share Other 3/31/15 Cash Cash Flow Capital Debt, Net Expenditures, Paid Repurchases Cash Balance before Acquisitions, Ba
Slide 10: Select Balance Sheet/Cash-Flow Data
Select Balance Sheet/Cash-Flow Data ($MM) 2015 2014 1Q 4Q 3Q 2Q As of quarter ended: Cash and cash equivalents 2,078 1,494 1,854 2,125 Total debt 6,743 6,637 6,264 3,638 Equity 11,980 11,390 11,266 11,037 Debt-to-total-capital ratio 36% 37% 36% 25% Last Twelve Months (LTM) EBITDA 6,529 5,377 5,099 4
Slide 11: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders LTM Ended 3/31/15 8,000 7,000 6,000 2,772 Hess Retail Acquisition 5,000 Dividends and share $MM repurchases ~1.6x of 4,000 Dividends and share Adj. Free Cash Flow*** repurchases* 3,000 2,188 $1,382 Adjusted Investments, Excluding Hess Free Cash Flow*** Acqui
Slide 12: 2Q 2015 Outlook
2Q 2015 Outlook Other Total Corporate Turnaround Depreciation Other Crude Charge/ Total Percent of WTI- Direct and Other and Major and Manufacturing Throughput* Feedstocks Throughput* priced Crude Operating Unallocated Maintenance Amortization Cost** Throughput* Costs Items*** in MBD Refinery Direct
Slide 13: Appendix
Appendix 13
Slide 14: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2015 1Q 2015 Budget Refining & Marketing (R&M) 1,042 182 Midstream included in R&M 234 47 Speedway 452 45 Pipeline Transportation 659 81 Corporate and Other 140 21 Total Capital Expenditures & 2,527 376 Investments* *Excludes capitalized interest. 14
Slide 15: Reconciliation: Adjusted Free Cash Flow
Reconciliation Adjusted Free Cash Flow to Net Cash Provided by Operations ($MM) 2014 2015 (For the Quarter) 2Q 3Q 4Q 1Q Net cash provided by operating activities 878 1,078 388 1,190 Additions to property, plant and equipment (302) (383) (528) (389) Acquisitions* (42) (4) - - Investments (41) (177) (
Slide 16: Earnings
Earnings ($MM unless otherwise noted) 2014 2015 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income 362 1,260 971 1,016 1,316 Speedway segment income 58 94 119 273 168 Pipeline Transportation segment income 72 81 69 58 67 Corporate and other unallocated items (67) (61) (76) (82) (80) Pension settleme
Slide 17: Reconciliation: EBITDA to Net Income
Reconciliation EBITDA to Net Income Attributable to MPC ($MM) 2013 2014 2015 3Q 4Q 1Q 2Q 3Q 4Q 1Q Net Income attributable to MPC 168 626 199 855 672 798 891 Less: Net interest and other financial inco income (costs) (47) (39) (46) (48) (50) (72) (81) Add: Net income attributable to inco noncontrolli
Slide 18: Reconciliation: EBITDA to Net Income, 1Q 2015
Reconciliation EBITDA to Net Income Attributable to MPC ($MM) 1Q 2015 Acquired locations EBITDA* $ 68 Legacy Speedway EBITDA 163 Speedway segment EBITDA 231 Refining & Marketing segment EBITDA 1,583 Pipeline Transportation segment EBITDA 87 Total segment EBITDA 1,901 Total segment depreciation and a
Slide 19: 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 ($MM) 2014 2015 (For the Quarter) 2Q 3Q 4Q 1Q Net cash provided by operations 878 1,078 388 1,190 Less changes in working capital: Changes in current receivables (300) 585 1,218 691 Chan
Slide 20: Refining and Marketing Segment Income vs. 4Q 2014
Refining and Marketing Segment Income 1Q 2015 vs. 4Q 2014 Variance Analysis 2,500 162 2,000 16 50 127 686 1,500 233 1,316 $MM (37) 1,016 1,000 (937) 500 0 4Q 2014 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 1Q 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack vs. Deliver
Slide 21: Refining & Marketing Indicative Gross Margin
Refining & Marketing Indicative Gross Margin 1Q 2015 3,000 214 2,691 2,500 58 82 126 596 2,000 1,615 $MM 1,500 (1,078) 1,316 (297) 1,000 500 0 *LLS *Sweet/ *LLS/WTI *LLS *Market Other R&M Direct Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Gross Gross Operating Segment Crack Delivered Mar
Slide 22: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 30 24.1 19.7 20.7 20 16.6 17.5 18.5 $MM 15.1 15.8 10 9.8 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 LP Distributions GP Distributions, including IDRs MPC Proceeds from MPLX ($MM) 2013 2014 2015 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q GP Distributions, including I
Slide 23: MARATHON
MARATHON ® —<—_—