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2Q 2019 Earnings Presentation – Marathon Petroleum Corporation

Marathon Petroleum Corporation · Aug 1, 2019 · 32 slides

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Slides

  1. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 1
    Second Quarter 2019 Conference Call August 1, 2019
  2. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 2
    Strategic Overview & Updates 3
  3. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 3
    Midstream Strategic Update Successfully combined MPLX and ANDX into one public company Continue focus on portfolio optimization Streamline capex focusing on most attractive returns Advance development of integrated Permian crude oil…
  4. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 4
    Second Quarter Highlights Millions (unless otherwise noted) 2Q19 Adjusted Earnings per Share (/share)(a) 1.73 Adjusted EBITDA 3,221 Net Income 1,106 Cash from Operations, excluding Working Capital 2,823 Realized Synergies 270…
  5. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 5
    Second Quarter Highlights (contd) 2Q 2019 vs. 1Q 2019 Adjusted EBITDA Reconciliation to Net Income 3,500 +1,275 3,221 3,000 -20 -56 2,500 2,000 +327 -1,123 MM 1,658 1,500 -19 1,106 1,000 -936 500 0 1Q 2019…
  6. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 6
    Realized Synergies 2Q 2019 2Q19 realized synergies of 270 million, includes 34 million of one-time synergies (a) Refining & Marketing Retail Corporate ( MM) ( MM) ( MM) Total: 199 Total: 32 Total: 39 One-time(a): 23 One-time(a):…
  7. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 7
    Realized Synergies YTD (a) Capex Reduction Cost Reduction Profit Enhancement 403 288 199 89 68 47 39 32 29 15 1Q19 2Q19 YTD'19 1Q19 2Q19 YTD'19 1Q19 2Q19 YTD'19 YTD'19 Refining & Retail Corporate Total Marketing On…
  8. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 8
    Midstream EBITDA 2Q 2019 vs. 1Q 2019 1,400 MPLX gathered, processed, 1,215 1,196 +7 and fractionated volumes 1,200 -16 -10 up 13% versus 2Q18 1,000 Expect to add 600 MMcf/d 800 MM of processing capacity in second half of…
  9. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 9
    Retail EBITDA 2Q 2019 vs. 1Q 2019 800 Strong fuel margins +64 +12 623 6.3% year-over-year increase 600 +265 -14 in same store merchandise sales MM 400 Closed on acquisition of 33 296 stores in July 200 Converted 407…
  10. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 10
    Refining & Marketing Adjusted EBITDA 2Q 2019 vs 1Q 2019 Strong execution with 97% 1,800 utilization +25 +13 1,600 +398 1,554 Completed planned 1,400 -10 maintenance at Los Angeles, 1,200 +173 Martinez, and Garyville 1,000…
  11. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 11
    Total Consolidated Cash Flow 2Q 2019 4,000 +275 +2,823 3,500 -201 MPLX +203 3,000 ANDX + 97 MPC - 8 2,500 -1,448 MM 2,000 1,500 +88 -852 1,247 1,000 877 -315 500 0 3/31/2019 Operating Cash Working Net Debt…
  12. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 12
    Third-Quarter 2019 Outlook Other Crude Total Depreciation Charge/ Sweet Sour Operating Distribution Planned Throughput Throughput and Feedstocks Crude Crude Cost (b) Cost (c) Turnaround (a) (a) Amortization Throughput (a) /BBL…
  13. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 13
    Questions & Answers Strategic Overview
  14. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 14
    Appendix 15
  15. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 15
    Capitalization and Select Balance Sheet Data MPC As of June 30, 2019 MPC MPLX ANDX Excluding Consolidated Adjustments Adjustments(a) (a) MPLX & (MM except ratio data) ANDX Total Debt 28,407 14,036 5,229 9,142 Total Equity (b)…
  16. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 16
    Refining & Marketing Segment Income 2Q 2019 6,000 +254 +22 +375 5,000 4,680 4,347 4,000 -984 Volume 258 MM Product -547 3,000 Crude -695 -1,527 2,000 +11 -1,277 906 1,000 -648 0 Blended Sweet Sour Market Other…
  17. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 17
    Refining & Marketing Margins Market vs. Realized Total system capture of 82% vs. 90% historical average, key factors included: Non-transportation fuel pricing disconnect with gas crack West Coast turnaround work Higher Gulf…
  18. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 18
    Distribution Costs Components 2Q 2019 1,400 369 1,277 1,200 1,000 429 MM 800 600 479 400 200 0 Third Party MPLX/ANDX MPLX Fuels Distribution and 2Q 2019 Fees and Other Fees Refinery Logistics Fees Distribution…
  19. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 19
    Refining & Marketing Segment Income 2Q 2019 vs. 2Q 2018 Variance Analysis 4,000 Volume Effect 3,500 +2,3 +131 +35 3,000 2,500 -424 -622 MM 2,000 Volume -52 Product -314 1,500 Crude -256 -751 1,025 -503 1,000 -23 906…
  20. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 20
    Refining & Marketing Segment Income 2Q 2019 vs. 1Q 2019 Variance Analysis 2,000 Volume -48 +2,102 Product -599 Crude +7 1,500 -164 -37 -14 1,000 +25 +13 906 MM -640 -10 -35 500 0 (334) -500 1Q 2019 Blended Sour…
  21. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 21
    Midstream Segment Income 2Q 2019 vs. 2Q 2018 Variance Analysis 1,000 +223 878 -13 800 +51 617 600 MM 400 200 0 2Q 2018 MPLX ANDX Other 2Q 2019 (a) Midstream (a) Andeavor Logistics LP, acquired by Marathon on…
  22. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 22
    Retail Segment Income 2Q 2019 vs. 2Q 2018 Variance Analysis 800 +105 +455 600 +27 493 -196 -57 MM 400 200 159 0 2Q 2018 Fuel Merchandise Operating Depreciation Other 2Q 2019 Margin Expense (a) (a) Reflects…
  23. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 23
    Earnings 2018 2019 (MM unless otherwise noted) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income (loss) (133) 1,025 666 923 (334) 906 Retail segment income 95 159 161 613 170 493 Midstream segment income 567 617 679 889 908 878…
  24. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 24
    Reconciliation Net Income Attributable to MPC to Adjusted Net Income Attributable to MPC (MM) 2Q19 2Q18 Net income attributable to MPC 1,106 1,055 Pre-tax adjustments: Transaction-related costs 34 10 Litigation 22 - Impairments -…
  25. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 25
    Reconciliation Net Income Attributable to MPC to Adjusted EBITDA and LTM Adjusted Pro Forma EBITDA (MM) 3Q 18 4Q 18 1Q 19 2Q 19 LTM Net Income (loss) attributable to MPC 737 951 (7) 1,106 2,787 Add: Net interest and other financial…
  26. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 26
    Reconciliation MPLX Net Income to EBITDA Related to MPLX 2018 2019 (MM) LTM 1Q 2Q 3Q 4Q 1Q 2Q MPLX Net Income 423 456 516 439 509 488 1,952 Add: Net interest and other financial costs 130 151 153 227 171 170 721 Provision…
  27. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 27
    Reconciliation ANDX Net Income to EBITDA Related to ANDX 2018 2019 (MM) LTM 1Q 2Q 3Q 4Q 1Q 2Q ANDX Net Income 131 132 166 170 158 160 654 Add: Net interest and other financial costs 55 60 57 60 62 63 242 Depreciation and…
  28. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 28
    Reconciliation Cash Provided by Operations to Operating Cash Flow Before Changes in Working Capital 2018 2019 (MM) 2Q 3Q 4Q 1Q 2Q Cash provided by operations 2,386 1,182 2,727 1,623 2,622 Less changes in working capital: Changes…
  29. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 29
    Reconciliation Refining & Marketing Income from Operations to Refining & Marketing Margin 2018 2019 (MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing loss from operations (133) 1,025 666 923 (334) 906 Plus: Refining operating costs(a) 909…
  30. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 30
    Reconciliation Segment Income from Operations to Segment Adjusted EBITDA and Adjusted EBITDA 2018 2019 (MM) 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing Segment Segment income from operations (133) 1,025 666 923 (334) 906 Add:…
  31. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 31
    Reconciliation Retail Income from Operations to Retail Total Margin 2018 2019 (MM) 1Q 2Q 3Q 4Q 1Q 2Q Retail income from operations 95 159 161 613 170 493 Plus (Less): (a)Retail fuel margin is defined as the price paid by consumers or…
  32. 2Q 2019 Earnings Presentation – Marathon Petroleum Corporation – slide 32
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