Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2017 Earnings Presentation
22 slides from Marathon Petroleum's earnings presentation, Apr 27, 2017
Slide 1: First-Quarter 2017 Earnings Conference Call and Webcast
First-Quarter 2017 Earnings Conference Call and Webcast April 27, 2017
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 $30 million, or $0.06 per diluted share Completed the largest slate of quarterly turnaround activity in MPC history Executed first dropdown of strategic plan with contribution of terminal, pipeline and storage assets to MPLX Returned $610 million
Slide 4: 1Q 2017 Earnings
1Q 2017 Earnings* 1Q 2017 1Q 2016 Earnings* $30 MM $1 MM Earnings per Diluted Share $0.06 $0.003 Earnings* Earnings per Diluted Share 1,250 $1,174 3 $2.21 227 1,000 2 0.43 145 0.27 $/Share 750 2 $MM 500 1 801 1.51 250 1 $30 $0.06 0 0 2016 2017 2016 2017 1Q 2Q 3Q 4Q *Earnings refer to Net Income attr
Slide 5: Earnings: 1Q 2017 vs. 1Q 2016 Variance Analysis
Earnings* 1Q 2017 vs. 1Q 2016 Variance Analysis 250 129 200 (8) (30) 150 120 100 $MM (16) 50 30 16 1 (150) 0 (32) -50 1Q 2016 Refining & Speedway Midstream** Items not Impairment Interest and Income Noncontrolling 1Q 2017 Marketing** Allocated to Expense Other Taxes Interests Segments Financing *Ear
Slide 6: Refining & Marketing Segment Income
Refining & Marketing Segment Income 1Q 2017 vs. 1Q 2016 Variance Analysis 450 27 15 441 (12) Crude 72 (1) Product (325) 300 15 Volumetric 91 (110) $MM 150 (162) 0 (144) (86) (53) (70) -150 *1Q 2016 **LLS **RIN/CBOB **Sweet/ **LLS/WTI **LLS **Market Lower of Other Direct Other 1Q 2017 6-3-2-1 Adjustm
Slide 7: Speedway Segment Income
Speedway Segment Income 1Q 2017 vs. 1Q 2016 Variance Analysis 180 167 160 140 30 135 (31) 120 (10) 100 (21) $MM 80 60 40 20 0 1Q 2016 Light Product Merchandise Sale of Retail Other** 1Q 2017 Gross Margin Gross Margin Locations* *Represents the impact of a $24 MM gain on sale of a retail location in
Slide 8: Midstream Segment Income
Midstream Segment Income 1Q 2017 vs. 1Q 2016 Variance Analysis 350 25 9 309 300 86 250 200 189 $MM 150 100 50 0 *1Q 2016 MPLX Equity and Other Affiliates Other 1Q 2017 *In the first quarter of 2017, segment reporting was revised in connection with the contribution of certain terminal, pipeline and s
Slide 9: Total Consolidated Cash Flow
Total Consolidated Cash Flow 1Q 2017 4,500 2,013 4,000 3,500 3,000 148 2,500 $MM (1,396) 170 2,167 410 2,000 (610) 703 (158) 1,500 1,000 887 500 0 12/31/2016 Operating Working Net Debt Cash Capital Issuance of Return of Distributions to Other 3/31/2017 Cash Cash Flow Capital Expenditures, MPLX LP Ca
Slide 10: Liquidity and Capitalization/Select Cash-Flow Data
Liquidity and Capitalization/Select Cash-Flow Data MPC MPLX As of March 31, 2017 MPC Consolidated Excluding Adjustments(a) ($MM except ratio data) MPLX Debt 12,598 6,655 5,943 Mezzanine equity 1,000 1,000 - Equity 19,797 8,280 11,517 Total capitalization 33,395 15,935 17,460 Debt-to-capital ratio (b
Slide 11: 2Q 2017 Outlook
2Q 2017 Outlook Other Total Corporate Percent of Sour Crude Oil Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced Throughput and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Percentage Maintenance Amortization Cost** Throughput* C
Slide 12: Appendix
Appendix 12
Slide 13: 2017 Capital Outlook
2017 Capital Outlook Excluding Acquisitions 10% 3% Speedway Corporate & Other MPC excluding MPLX ~$1.6 B Refining & Marketing (R&M) – $1,085 MM Midstream – $65 MM 22% Speedway – $380 MM R&M Sustaining Corporate & Other – $100 MM 56% Capital MPLX MPLX ~$2.1 B 7% R&M Margin Growth – $1,900 M
Slide 14: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2017 Revised 1Q 2017 Plan Refining & Marketing (R&M) 192 1,085 Speedway 35 380 Midstream, including MPLX(a) 350 2,115 Corporate and Other 16 100 Total Capital Expenditures & Investments(b) 593 3,680 (a)2017 revised plan reflect the midpoint of the range for o
Slide 15: Earnings
Earnings ($MM unless otherwise noted) 2016 2017 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income* (86) 1,025 252 166 (70) Speedway segment income** 167 193 209 165 135 Midstream segment income 189 253 310 296 309 Corporate and other unallocated items (65) (64) (65) (74) (82) Pension settlement exp
Slide 16: Reconciliation: Adjusted EBITDA to Net Income Attributable to MPC
Reconciliation Adjusted EBITDA to Net Income Attributable to MPC ($MM) 2016 2017 LTM 2Q 3Q 4Q 1Q Net Income attributable to MPC 801 145 227 30 1,203 Less: Net interest and other financial income (costs) (137) (141) (136) (150) (564) Add: Net income (loss) attributable to inco noncontrolling interest
Slide 17: Reconciliation: Adjusted EBITDA Related to MPLX
Reconciliation Adjusted EBITDA Related to MPLX to MPLX Net Income ($MM) 2016 2017 LTM 2Q 3Q 4Q 1Q MPLX Net Income 72 194 182 187 635 Less: Net interest and other financial income (costs) (64) (64) (65) (78) (271) Add: Provision for income taxes (8) - - - (8) Depreciation and amortization 151 151 153
Slide 18: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations ($MM) 2016 2017 (For the Quarter) 2Q 3Q 4Q 1Q Net cash provided by operations 2,267 405 993 1,113 Less changes in working capital: Changes in current receivables (601) 67 (465) 333 Chang
Slide 19: Refining & Marketing Segment Income: 1Q 2017 vs. 4Q 2016
Refining & Marketing Segment Income 1Q 2017 vs. 4Q 2016 Variance Analysis 450 Crude (144) Product (221) 38 4 2 Volumetric 80 193 (3) 300 166 $MM 150 (42) (285) 0 (134) (9) (70) -150 *4Q 2016 **LLS **RIN/CBOB **Sweet/ **LLS/WTI **LLS **Market Other Direct Other 1Q 2017 6-3-2-1 Adjustment Sour Diff. D
Slide 20: Refining & Marketing Indicative Gross Margin
Refining & Marketing Indicative Gross Margin 1Q 2017 2,000 320 1,791 1,500 1 89 619 32 Crude (439) 1,188 Product 538 Volumetric 221 1,000 $MM (458) 500 (1,453) 0 (408) (70) -500 *LLS *RIN/CBOB *Sweet/ *LLS/WTI *LLS *Market Other R&M Direct Other R&M 6-3-2-1 Adjustment Sour Diff. Diff. Prompt vs. Str
Slide 21: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 150 $91 $99 $102 100 $73 $MM $69 50 $27 $32 $35 $18 $18 $20 $20 $24 $10 $15 $16 $16 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 LP Distributions GP Distributions, including IDRs Cash Distribution and Asset 2013
Slide 22: Marathon
MARATHON ®