Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q1 2014 Earnings Presentation
20 slides from Marathon Petroleum's earnings presentation, May 1, 2014
Slide 1: First Quarter 2014 Earnings Conference Call and Webcast
First Quarter 2014 Earnings Conference Call and Webcast May 1, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements relate to, among other things, MPC's expectations, estimates and projections concerning MPC business and operations. You can identify forwa
Slide 3: Highlights
Highlights Reported earnings of $199 million Completed refining turnarounds totaling approximately $470 million Acquired biodiesel facility Acquired additional interest in Explorer Pipeline Returned $812 million of capital to shareholders Encouraged by future outlook 3
Slide 4: 1Q 2014 Earnings
1Q 2014 Earnings* 1Q 2014 1Q 2013 Earnings $199 MM $725 MM Earnings per Diluted Share $0.67 $2.17 Earnings Earnings per Diluted Share $2,500 2,112 $8 6.64 $2,000 626 $6 2.07 $1,500 $MM 168 $4 0.54 $1,000 593 $/Share 1.83 $500 725 $2 199 2.17 $0 $0 0.67 2013 2014 2013 2014 1Q 2Q 3Q 4Q *References to
Slide 5: Earnings: 1Q 2014 vs. 1Q 2013 Variance Analysis
Earnings* 1Q 2014 vs. 1Q 2013 Variance Analysis $800 725 (743) $700 $600 $500 $400 $MM $300 270 (3) 199 $200 $100 (9) 21 (64) $0 2 -$100 -$200 1Q 2013 Refining & Speedway Pipeline Pension Interest & Income Noncontrolling 1Q 2014 Marketing Transportation Settlement Other Taxes Interests Expense *Refe
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 1Q 2014 vs. 1Q 2013 Variance Analysis 2,000 484 (320) 1,500 (397) 1,105 148 (605) $MM 1,000 11 (79) 500 15 362 0 1Q 2013 *LLS *Sweet/ *LLS/WTI *LLS *Market Other Direct Other 1Q 2014 6-3-2-1 Sour Diff. Diff. Prompt Structure Gross Operating Crack vs. Margin Cost
Slide 7: Speedway Segment Income
Speedway Segment Income 1Q 2014 vs. 1Q 2013 Variance Analysis $80 $70 67 (8) 8 (9) $60 58 $50 $MM $40 $30 $20 $10 $0 1Q 2013 Light Product Gross Merchandise Gross Expenses 1Q 2014 Margin Margin 7
Slide 8: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income 1Q 2014 vs. 1Q 2013 Variance Analysis $80 22 (1) (3) 5 (2) 72 $60 51 $MM $40 $20 $0 1Q 2013 Trans. Depreciation Operating Pipeline Other 1Q 2014 Revenue Expenses Affiliates 8
Slide 9: Total Company Cash Flow
Total Company Cash Flow 1Q 2014 $3,500 264 (390) 125 $3,000 641 (123) (689) $2,500 2,292 46 2,166 $2,000 $MM $1,500 $1,000 $500 $0 12/31/13 Operating Working Long-term Cash Capital Dividends Share Other 3/31/14 Cash Cash Flow Capital Debt, Net Expenditures, Paid Repurchases Cash Balance before Acqui
Slide 10: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($MM) 2014 2013 2013 2013 1Q 4Q 3Q 2Q As of quarter ended: Cash and cash equivalents 2,166 2,292 2,018 3,069 Total debt 3,659 3,396 3,403 3,410 Equity 10,758 11,332 11,264 12,197 Debt-to-total-capital ratio 25% 23% 23% 22% Last Twelve Months (LTM) EBITDA 3,883 4,6
Slide 11: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders LTM Ended 3/31/14 6,000 5,000 Dividends and share repurchases* 4,000 ~6.4x of Cash capital expenditures, 3,542 $MM Free Cash 3,000 Flow** acquisitions and investments 2,000 Net cash provided by Free Cash operations Flow** $550 1,000 2,092 1,542 0 * $491 MM d
Slide 12: 2Q 2014 Outlook
2Q 2014 Outlook Other Total Corporate Percent of Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Maintenance Amortization Cost** Throughput* Costs Items*** in MMBD Refinery Direct
Slide 13: Appendix
Marathon MARATHON § Petroleum Corporation Appendix
Slide 14: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2014 Budget 1Q 2014 Refining & Marketing (R&M) 864 143 Midstream included in R&M 348 35 Speedway 327 32 Pipeline Transportation 760 130 Corporate and Other 133 25 Subtotal 2,432 365 Capitalized Interest 38 6 Total Capital Expenditures & Investments 2,470 371
Slide 15: Reconciliation: Free Cash Flow to Net Cash Provided by Operations
Reconciliation Free Cash Flow to Net Cash Provided by (Used in) Operations ($MM) 2013 2014 (Quarter to date) 2Q 3Q 4Q 1Q Net cash provided by (used in) operating activities (436) 407 1,355 766 Additions to property, plant and equipment (229) (309) (473) (267) Acquisitions* (22) - - - Investments (6)
Slide 16: Income
Income ($MM unless otherwise noted) 2013 2014 1Q 2Q 3Q 4Q 1Q Refining & Marketing segment income 1,105 903 227 971 362 Speedway segment income 67 123 102 83 58 Pipeline Transportation segment income 51 58 54 47 72 Corporate and other unallocated items (67) (64) (59) (81) (67) Pension settlement expe
Slide 17: EBITDA Reconciliation to Net Income Attributable to MPC
EBITDA Reconciliation to Net Income Attributable to MPC ($MM) 2012 2013 2014 3Q 4Q 1Q 2Q 3Q 4Q 1Q Net Income attributable to MPC 1,224 755 725 593 168 626 199 Less: Net interest and other financial income (costs) (25) (45) (48) (45) (47) (39) (46) Add: Net income attributable to noncontrolling inter
Slide 18: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Cash Provided by (Used in) Operations ($MM) 2013 2014 (Quarter to date) 2Q 3Q 4Q 1Q Net cash provided by (used in) operations (436) 407 1,355 766 Less changes in working capital: Changes in current receivables (655) 56
Slide 19: Refining & Marketing Indicative Gross Margin – 1Q 2014
Refining & Marketing Indicative Gross Margin – 1Q 2014 2,500 318 2,146 (1,581) 2,000 156 (10) (14) 530 1,500 $MM 1,166 1,000 (203) 500 362 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 Margi
Slide 20: Marathon Petroleum Corporation
Marathon MARATHON § Petroleum Corporation