Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q2 2015 Earnings Presentation
22 slides from Marathon Petroleum's earnings presentation, Jul 30, 2015
Slide 1: Second Quarter 2015 Earnings Conference Call and Webcast
Second Quarter 2015 Earnings Conference Call and Webcast July 30, 2015
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 second-quarter earnings of $826 million Announced transformative MPLX/MarkWest strategic combination Converted more than half of the 1,245 new retail sites to the Speedway brand since acquisition Returned $544 million of capital to shareholders, including $408 million in
Slide 4: 2Q 2015 Earnings
2Q 2015 Earnings* 2Q 2015 2Q 2014 Earnings $826 MM $855 MM Earnings per Diluted Share** $1.51 $1.48 Earnings Earnings per Diluted Share** 3,000 5 $4.39 $2,524 2,500 4 798 1.43 $3.14 $/Share 2,000 $1,717 3 $MM 1,500 672 1.18 1.51 826 2 1,000 855 1 1.48 500 891 1.62 0 199 0 0.34 2014 2015 2014 2015 1Q
Slide 5: Earnings: 2Q 2015 vs. 2Q 2014 Variance Analysis
Earnings* 2Q 2015 vs. 2Q 2014 Variance Analysis 1,000 855 33 25 826 800 (2) (11) (4) (54) (16) 600 $MM 400 200 0 2Q 2014 Refining & Speedway Pipeline Items not Interest and Income Noncontrolling 2Q 2015 Marketing Transportation Allocated to Other Financing Taxes Interests Segments Costs *Earnings re
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 2Q 2015 vs. 2Q 2014 Variance Analysis 1,800 372 1,600 1,400 85 93 130 1,260 1,206 1,200 (39) (88) (458) (149) 1,000 $MM 800 600 400 200 0 2Q 2014 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 2Q 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operat
Slide 7: Speedway Segment Income
Speedway Segment Income 2Q 2015 vs. 2Q 2014 Variance Analysis 160 23 140 16 127 120 (20) 14 100 94 $MM 80 60 40 20 0 2Q 2014 Acquired Locations* Light Product Merchandise Other 2Q 2015 Gross Margin Gross Margin *Refers to Hess’ retail operations and related assets acquired September 30, 2014 7
Slide 8: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income 2Q 2015 vs. 2Q 2014 Variance Analysis 120 100 15 81 79 80 (10) (7) $MM 60 40 20 0 2Q 2014 Transportation Pipeline Operating Expenses & 2Q 2015 Revenue Affiliates Other 8
Slide 9: Total Company Cash Flow
Total Company Cash Flow 2Q 2015 3,500 1,231 3,000 (237) (6) 2,500 2,078 (657) 2,000 16 1,881 $MM (544) 1,500 1,000 500 0 3/31/2015 Operating Working Long-term Cash Capital Return of Capital Other 6/30/2015 Cash Cash Flow Capital Debt, Net Expenditures, to Shareholders* Cash Balance before Acquisitio
Slide 10: Select Balance Sheet / Cash-Flow Data
Select Balance Sheet / Cash-Flow Data ($MM) 2015 2014 2Q 1Q 4Q 3Q As of quarter ended: Cash and cash equivalents 1,881 2,078 1,494 1,854 Total debt(a) 6,698 6,704 6,602 6,247 Equity 12,290 11,980 11,390 11,266 Debt-to-total-capital ratio (book) 35% 36% 37% 36% Last Twelve Months (LTM) EBITDA 6,532 6
Slide 11: 3Q 2015 Outlook
3Q 2015 Outlook Other Total Corporate Percent of Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Maintenance Amortization Cost** Throughput* Costs Items*** in MBD Refinery Direct
Slide 12: Appendix
Appendix 12
Slide 13: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders LTM Ended 6/30/15 8,000 7,000 6,000 2,772 Hess Retail Acquisition 5,000 Dividends and share Dividends and share repurchases ~1.8x of $MM Adj. Free Cash Flow*** repurchases* 4,000 Investments, Excluding Hess 3,000 2,151 $1,226 Adjusted Acquisition** Free Cash
Slide 14: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2015 Budget 2Q 2015 YTD Refining & Marketing 1,042 160 335 Midstream 234 47 101 Total Refining & Marketing Segment 1,276 207 436 Speedway 452 100 145 Pipeline Transportation 659 157 238 Corporate and Other 140 41 62 Total Capital Expenditures & 2,527 505 881
Slide 15: Reconciliation: Adjusted Free Cash Flow
Reconciliation Adjusted Free Cash Flow to Net Cash Provided by Operations ($MM) 2014 2015 LTM (For the Quarter) 3Q 4Q 1Q 2Q Net cash provided by operating activities 1,078 388 1,190 994 3,650 Additions to property, plant and equipment (383) (528) (389) (375) (1,675) Acquisitions* (4) - - - (4) Inves
Slide 16: Earnings
Earnings ($MM unless otherwise noted) 2014 2015 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income 362 1,260 971 1,016 1,316 1,206 Speedway segment income 58 94 119 273 168 127 Pipeline Transportation segment income 72 81 69 58 67 79 Corporate and other unallocated items (67) (61) (76) (82) (80)
Slide 17: Reconciliation: EBITDA to Net Income Attributable to MPC
Reconciliation EBITDA to Net Income Attributable to MPC ($MM) 2013 2014 2015 4Q 1Q 2Q 3Q 4Q 1Q 2Q Net Income attributable to MPC 626 199 855 672 798 891 826 Less: Net interest and other financial inco income (costs) (39) (46) (48) (50) (72) (81) (64) Add: Net income attributable to inco noncontrolli
Slide 18: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations ($MM) 2014 2015 (For the Quarter) 3Q 4Q 1Q 2Q Net cash provided by operations 1,078 388 1,190 994 Less changes in working capital: Changes in current receivables 585 1,218 691 (512) Chan
Slide 19: Refining and Marketing Segment Income: 2Q 2015 vs. 1Q 2015
Refining and Marketing Segment Income 2Q 2015 vs. 1Q 2015 Variance Analysis 2,000 204 1,500 32 173 1,316 25 (158) 1,206 (112) (195) (79) $MM 1,000 500 0 1Q 2015 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 2Q 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack vs. Delivered
Slide 20: Refining and Marketing Indicative Gross Margin
Refining and Marketing Indicative Gross Margin 2Q 2015 3,000 255 19 2,635 2,500 158 438 (54) 2,000 1,819 $MM 1,500 (1,053) 1,206 1,000 (376) 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
Slide 21: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 30 $27.3 $24.1 $19.7 $20.7 20 $17.5 $18.5 $15.8 $16.6 $MM $15.1 $9.8 10 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 LP Distributions GP Distributions, including IDRs MPC Proceeds from MPLX ($MM) 2013 2014 2015 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q GP Dis
Slide 22: Marathon
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