Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q2 2023 Earnings Presentation
22 slides from Marathon Petroleum's earnings presentation, Aug 1, 2023
Slide 1: Second Quarter 2023 Earnings Conference Call
Second Quarter 2023 Earnings Conference Call August 1, 2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 initiati
Slide 3: Business Update
Business Update Adjusted EBITDA of $4.5 billion, reflecting strong execution despite significant planned maintenance Strengthen Competitive Position of our Assets MPC received MPLX distribution of $502 million in quarter Value creation from refining, midstream and low carbon projects Foster Lo
Slide 4: Challenging Ourselves to Lead in Sustainable Energy
Challenging Ourselves to Lead in Sustainable Energy STRENGTHEN RESILIENCY INNOVATE FOR THE FUTURE EMBED SUSTAINABILITY Dickinson, North Dakota – Renewable Diesel Facility Scope 1 & 2 GHG Intensity 20% of annual cash bonus program 30% Target: 30% reduction by 2030 from 184 million gallons/ Processing
Slide 5: Second Quarter Highlights
Second Quarter Highlights $ Millions (unless otherwise noted) 2Q23 Earnings per Share ($/share)(a) $5.32 Adjusted EBITDA(b) $4,531 Cash Flow from Operations, excl. changes in working capital(b) $3,130 Share Repurchases(c) $3,068 Dividends $316 (a) Defined as diluted income per share, based on weight
Slide 6: Adjusted EBITDA to Net Income, 2Q 2023 vs. 1Q 2023
Adjusted EBITDA to Net Income 2Q 2023 vs. 1Q 2023 Adjusted EBITDA Reconciliation to Net Income 6,000 5,218 2 1 4,531 -690 4,000 $ Millions -1,226 2,226 2,000 -1,079 0 1Q 2023 Refining & Midstream Corporate 2Q 2023 Turnaround Interest, 2Q 2023 Adj. EBITDA Marketing Adj. EBITDA and D&A Taxes, and Net
Slide 7: Refining & Marketing 2Q 2023 vs. 1Q 2023
Refining & Marketing 2Q 2023 vs. 1Q 2023 4,000 3,853 93% utilization -392 79 52 3,163 3,000 -309 -27 97% capture -93 $ Millions 2,000 Continued commercial execution 1,000 0 1Q 2023 USGC Mid-Con West Coast Operating Distribution Other 2Q 2023 Segment Margin Margin Margin Costs Costs Segment Adj
Slide 8: Refining & Marketing Margins – Market vs. Realized
Refining & Marketing Margins – Market vs. Realized 6,046 6,000 5,883 Total system capture(a) of 97%, key factors -163 included: Solid commercial execution $ Millions 100% 97% 5,000 Gasoline and distillate margin tailwinds Secondary product headwinds 4,000 R&M Margin Capture R&M Margin Indicato
Slide 9: Midstream 2Q 2023 vs. 1Q 2023
Midstream 2Q 2023 vs. 1Q 2023 1,530 9 1,532 1,500 Segment Adj. EBITDA flat -7 sequentially; up 5% year over year 1,000 $ Millions $502 million distribution received from MPLX 500 Continued focus on disciplined, high return projects 0 1Q 2023 MPLX Other 2Q 2023 Segment Midstream Segment Adj. EB
Slide 10: Total Consolidated Cash Flow 2Q 2023
Total Consolidated Cash Flow 2Q 2023 854 15,000 3,130 278 -570 -306 -316 $ Millions 11,452 11,454 -3,068 10,000 5,000 3/31/2023 Cash Flow Changes in Capital Return of Other Dividends Share 6/30/2023 Cash + from Operations, Working Capital Expenditures, Capital to (b) Repurchases Cash + Short Term ex
Slide 11: Third-Quarter 2023 Outlook
Third-Quarter 2023 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 12: Continued Focus to Drive Superior Returns
Continued Focus to Drive Superior Returns Second Quarter Recap Strengthen Competitive Position $3.2 Billion $570 Million of our Assets R&M Segment Value Creation Adj. EBITDA Investments(a) Foster Low-Cost Culture $502 Million $3.4 Billion Improve Cash Distribution Commercial Capital Returned from MP
Slide 13: Questions & Answers
Questions & Answers
Slide 14: Appendix
Appendix 14
Slide 15: Balance Sheet: Foundation for Strategy Execution
Balance Sheet: Foundation for Strategy Execution Senior Notes Maturities - Next 10 Years (a) 3.0 MPC Excluding MPLX MPC As of June 30, 2023 MPLX Adjustments (c) Consolidated $ Billions 2.0 ($ Millions except ratio data) Cash(d) 10,699 755 11,454 1.0 Total Debt 6,877 20,406 27,283 0.0 2023 2024 2025
Slide 16: Refining & Marketing Segment Adjusted EBITDA 2Q 2023
Refining & Marketing Segment Adjusted EBITDA 2Q 2023 8,000 651 5,883 6,000 5,357 45 -7 -163 Volume + 377 $ Millions Product + 284 4,000 Crude - 824 -1,371 22 3,163 -1,371 2,000 0 Blended Sweet Sour Market Other R&M Margin Operating Distribution Other R&M Crack Differential Differential Structure Mar
Slide 17: Refining & Marketing Segment Adjusted EBITDA Variance Analysis
Refining & Marketing Segment Adjusted EBITDA 2Q 2023 vs. 1Q 2023 Variance Analysis 4,000 3,853 83 79 52 3,163 -609 -27 -22 -21 -225 Volume + 69 $ Millions Product - 364 Crude + 274 2,000 0 1Q 2023 Blended Sour Sweet Market Other Operating Distribution Other 2Q 2023 Segment Crack Differential Differe
Slide 18: Income Summary for Operations
Income Summary for Operations 2022 2023 ($MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income 768 7,134 4,625 3,910 3,032 2,287 Midstream segment income 1,072 1,126 1,176 1,088 1,213 1,201 Corporate (151) (170) (173) (259) (184) (183) Income from continuing operations be
Slide 19: Reconciliation: Cash Flow from Operations
Reconciliation Cash Flow from Operations, Excluding Changes in Working Capital ($MM) 2Q23 Cash provided by operating activities 3,984 Less changes: Current receivables (112) Inventories 733 Current accounts payable and accrued liabilities 239 Fair value of derivative instruments (7) Right of use ass
Slide 20: Reconciliation: Segment Income to Adjusted EBITDA
Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing Segment Segment income from operations 768 7,134 4,625 3,910 3,032 2,287 Add: Depreciation and amortization 461 475 459 455 464 484 Refining planned tur
Slide 21: Reconciliation: Net Income to Adjusted EBITDA
Reconciliation Net Income Attributable to MPC to Adjusted EBITDA 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Net income attributable to MPC 845 5,873 4,477 3,321 2,724 2,226 Net income attributable to noncontrolling interest 327 344 543 320 360 354 Income from discontinued operations, net of tax - - - (72) -
Slide 22: Reconciliation: R&M Adjusted EBITDA to R&M Margin
Reconciliation Refining & Marketing Segment Adjusted EBITDA to Refining & Marketing Margin 2022 2023 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment adjusted EBITDA 1,374 7,760 5,496 4,631 3,853 3,163 Plus (Less): Depreciation and amortization (461) (475) (459) (455) (464) (484) Refining planne