Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q4 2014 Earnings Presentation
25 slides from Marathon Petroleum's earnings presentation, Feb 4, 2015
Slide 1: Fourth Quarter 2014 Earnings Conference Call and Webcast
Marathon Tidy) Petroleum Corporation Fourth Quarter 2014 Earnings Conference Call and Webcast February 4, 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
Slide 3: Highlights
Highlights ®@ Reported fourth-quarter earnings of $798 million and full-year earnings of $2.52 billion ®@ Achieved record earnings for Speedway segment ®@ Executed first step in accelerated growth plan for MPLX ®@ Returned $2.7 billion of capital to shareholders in 2014, including $820 million in th
Slide 4: 4Q and Full Year 2014 Earnings
4Q and Full Year 2014 Earnings* 4Q 2014 4Q 2013 2014 2013 Earnings $798 MM $626 MM | $2,524 MM | $2,112 MM Earnings per Diluted Share $2.86 $2.07 $8.78 $6.64 Earnings Earnings per Diluted Share 3,000 ~ 10 ? 8.78 2,500 | aaa 3 - | 6.64 2 6 = 4 4 a 2 4 0 2013 2014 2013 2014 @1Q ©2Q §3Q 4Q *Earnings re
Slide 5: Earnings: 4Q 2014 vs. 4Q 2013 Variance Analysis
Earnings* 4Q 2014 vs. 4Q 2013 Variance Analysis 1,000 - 900 - 190 11 5 300 - (33) | 798 (44) (2) 700 - 45 626 $MM 8 200 - 100 - 4Q 2013 Refining & Speedway Pipeline Items not Interest Income Noncontrolling 4Q 2014 Marketing Transportation Allocated to Taxes Interests Segments *Earnings refer to Net
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 4Q 2014 vs. 4Q 2013 Variance Analysis 1,250 ~ 29 1,016 1,000 - 971 494 2 : 7 7 (197) = 4 13 —_— 500 - (240) 31 —) 250 - re} “ 4Q 2013 *uS *sweet/ *LLS/WTl *us *Market Other Direct Other 4Q 2014 6-3-2-1 Sour Diff Diff. Prompt Structure Gross Operating Crack vs. M
Slide 7: Refining and Marketing Segment Income
Refining and Marketing Segment Income 2014 vs. 2013 Variance Analysis 5,000 - 4,500 - 1,726 4,000 - 761 el. B.. 3,500 - ——] 3,206 (489) SS 284 (913) 3,000 - — i = 2500 - (695) (379) wn 2,000 - 1,500 - 1,000 - 500 - oO 4 2013 *ULS *Sweet/ *LLS/WTI *us *Market Other Direct Other 2014 6-3-2-1 Sour Diff
Slide 8: Speedway Segment Income
Speedway Segment Income Variance Analysis 4Q 2014 vs. 4Q 2013 350 5 800' 67 ini <= 273 = 200 | 5 150 - * 400 - 83 tT T T a T 4Q 2013 Hess Light Product Merchandise Other 4Q 2014 Gross Margin Gross Margin 2014 vs. 2013 om 55 600 - 500 - 113 —— =a9) ae | 375 = 300 - 200 - 100 - 0 - T T T T T 2013 Hess
Slide 9: Speedway Segment Income — 4Q 2014
Speedway Segment Income — 4Q 2014 800 700 99 «00 225 L_] 500 = = 400 197 > 300 273 (424) 200 176 100 ié) + + . - - - Legacy Light Product Hess Light Product Legacy Merchandise Hess Merchandise Operating, G&A Speedway Gross Margin Gross Margin Gross Margin Gross Margin Expense & Other Segment Income
Slide 10: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income Variance Analysis 4Q 2014 vs. 4Q 2013 100 - 80 11 60 11 Pe P| 2 47 aa (11) mB 40 - 20 - 0 4 T T T T 4Q 2013 Transportation Pipeline Other 4Q 2014 Revenue Affiliates 2014 vs. 2013 37 60 zz Lo (27) T T T T 2013 Transportation Pipeline Other 2014 Revenue Affiliate
Slide 11: Total Company Cash Flow
Total Company Cash Flow 4Q 2014 291 1,494 (682) 500 - 10) + r r . r ' . . : 9/30/14 Operating Working Long-term Cash Capital Dividends Share Other 12/31/14 Cash Cash Flow Capital Debt, Net Expenditures, Paid Repurchases Cash Balance before Acquisitions, and Balance Working Investments Capital
Slide 12: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data (SMM) As of quarter ended: Cash and cash equivalents Total debt Equity Debt-to-total-capital ratio Last Twelve Months (LTM) EBITDA Debt to LTM EBITDA For the Quarter: Cash provided by operations Cash provided by operations before changes in working capital 1,494 6
Slide 13: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders 8,000 - LTM Ended 12/31/14 7,000 6,000 - 5,000 - = 4,000 - Vi 3,000 \ 2,000 - 1,000 0 * $524 MM dividends plus $2,131 MM share repurchases $999 Free Cash Flow, Excluding Hess Acquisition*** @ Hess Retail Acquisition @ Dividends and share repurchases* @ Inves
Slide 14: 1Q 2015 Outlook
1Q 2015 Outlook Other men Total Corporate Cade charee/ Total Percentof Turnaround | Depreciation Other Direct SS Gten WTl-priced and Major Manufacturing 5 * * Throughput Feedstocks | Throughput Ginke Mointens A ization Cost** Operating Unallocated Throughput* Costs Items*** Refinery Direct Operating
Slide 15: Capital Expenditures & Investments
Capital Expenditures & Investments MM Refining & Marketing (R&M) Midstream included in R&M Speedway Pipeline Transportation Corporate and Other Total Capital Expenditures & Investments** 2015 Budget 864 266 711 1,042 348 109 341 234 327 165 318 452 760 125 543 659 133 23 83 140 2,432 688 1,996 2,527
Slide 16: 2015 Significant Capital Projects
2015 Significant Capital Projects @ Refining & Marketing — margin-enhancing projects Increase light crude capacity at Robinson Distillate growth at Garyville, Galveston Bay and Robinson Product export growth at Garyville and Galveston Bay Galveston Bay/Texas City synergy projects M@ Speedway - growt
Slide 17: Appendix
Marathon : Tay) Petroleum Corporation Appendix
Slide 18: Reconciliation: Free Cash Flow to Net Cash Provided by Operations
Reconciliation Free Cash Flow to Net Cash Provided by Operations isu te LP fFortheguarter) | ia | 2a | sa | aa | Net cash provided by operating activities Additions to property, plant and equipment Acquisitions* Investments Contingent Consideration Free cash flow Last twelve months free cash flow 76
Slide 19: Earnings
Earnings (SMM unless otherwise noted) | 208 2014 ra [a [20 [aa | sa [a | 20 | 3 227 971 362 1,260 971 Refining & Marketing segment income 1,105 90 1,016 Speedway segment income 67 123 102 83 58 94 119 273 Pipeline Transportation segment income 51 58 54 47 72 81 69 58 Corporate and other unallocated
Slide 20: Reconciliation: EBITDA to Net Income Attributable to MPC
Reconciliation EBITDA to Net Income Aftributable to MPC (SMM) 2013 2014 Pia | 20 | 3a | 20 | 10 | 20 | 30 | Net Income attributable to MPC 725 593 168 626 199 855 672 Less: Net interest and other financial pomeione) (48) (45) (47),—(39)- | (46) = (48) (50) (72) Add: Net income attributable to noncon
Slide 21: 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 a fre Ecc 766 878 (Ba) Net cash provided by operations 1,078 388 Less changes in working capital: Changes in current receivables 139 =©(300) 585 1,218 Changes in inventories (1,000) 77 1
Slide 22: Refining and Marketing Segment Income: 4Q 2014 vs. 3Q 2014
Refining and Marketing Segment Income 4Q 2014 vs. 3Q 2014 Variance Analysis 1,250 - 651 39 1,016 1,000 971 Zz = -F (67) 750 - = = wn 500 - 71 67s ZZ > _ ma oO 4 3Q 2014 *ULS *Sweet/ *LLS/WTI *us *Market Other Direct Other 4Q 2014 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack vs. Ma
Slide 23: Refining & Marketing Indicative Gross Margin — 4Q 2014
Refining & Marketing Indicative Gross Margin — 4Q 2014 3,000 - 1152 2,588 2,500 - 2,000 = 109 8 1,500 - — 2 469 — (79) ase) 1000 929 ,312) 1,016 (260) 500 - 0 + T 1 r r *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 S
Slide 24: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC 25 20.7 20 - — 19.7 _ _— 17.5 15.1 : 15 + 5 Bip | _98 Z 0 —— — i 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 @ LP Distributions m= GP Distributions, including IDRs MPC Proceeds from MPLX (SMM) GP Distributions, including IDRs LP Distributions 9.5 14.7 15.4 16
Slide 25: Marathon Petroleum Corporation
Marathon : Tay) Petroleum Corporation