Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q4 2013 Earnings Presentation
22 slides from Marathon Petroleum's earnings presentation, Jan 29, 2014
Slide 1: Fourth Quarter 2013 Earnings Conference Call and Webcast
Fourth Quarter 2013 Earnings Conference Call and Webcast January 29, 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 Strong 4th quarter and full year 2013 earnings Investing in the business Galveston Bay acquisition completed February 1 Southern Access Extension and Sandpiper Pipeline Projects announced Speedway organic investments Returning capital to shareholders Returned $3.3 billion in
Slide 4: 4Q and Full Year 2013 Earnings
4Q and Full Year 2013 Earnings* 4Q 2013 4Q 2012 2013 2012 Earnings $626 MM $755 MM $2,112 MM $3,389 MM Adjusted Earnings $633 MM $760 MM $2,173 MM $3,352 MM Earnings per Diluted Share $2.07 $2.24 $6.64 $9.89 Adjusted Earnings per Diluted Share $2.10 $2.26 $6.84 $9.79 Adjusted Earnings Adjusted Earni
Slide 5: Adjusted Earnings
Adjusted Earnings* 4Q 2013 vs. 4Q 2012 Variance Analysis 800 760 (168) 700 45 (1) 633 6 (25) 16 600 500 $MM 400 300 200 100 0 4Q 2012 Refining & Speedway Pipeline Interest & Income Noncontrolling 4Q 2013 Marketing Transportation Other Taxes Interests *References to Earnings refer to Net Income attri
Slide 6: Refining and Marketing Segment Income
Refining and Marketing Segment Income 4Q 2013 vs. 4Q 2012 Variance Analysis 2,000 99 (301) 521 147 (476) 540 (574) 1,500 1,139 (40) 11 (89) (6) $MM 1,000 971 500 0 4Q 2012 *LLS *LLS *Sweet/ *Sweet/ *LLS/WTI *LLS/WTI *LLS *Market Other Direct Other 4Q 2013 6‐3‐2‐1 6‐3‐2‐1 Sour Diff. Sour Diff. Diff.
Slide 7: Refining and Marketing Segment Income
Refining and Marketing Segment Income 2013 vs. 2012 Variance Analysis 7,000 6,500 1,059 (1,208) 935 (998) 6,000 5,500 5,098 181 20 (350) 5,000 (133) 298 (1,621) 4,500 4,000 $MM 3,500 (75) 3,206 3,000 2,500 2,000 1,500 1,000 500 0 2012 *LLS *LLS *Sweet/ *Sweet/ *LLS/WTI *LLS/WTI *LLS *Market Other Di
Slide 8: Speedway Segment Income
Speedway Segment Income Variance Analysis 4Q 2013 vs. 4Q 2012 100 77 9 1 83 80 (4) $MM 60 40 20 0 4Q 2012 Light Merchandise Other 4Q 2013 Product Gross Margin Gross Margin 2013 vs. 2012 400 30 (19) 375 54 310 300 $MM 200 100 0 2012 Light Merchandise Other 2013 Product Gross Margin Gross Margin 8
Slide 9: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income Variance Analysis 4Q 2013 vs. 4Q 2012 80 72 1 (2) (6) (19) 60 1 47 $MM 40 20 0 4Q 2012 Trans. Depreciation Operating Pipeline Other 4Q 2013 Revenue Expenses Affiliates 2013 vs. 2012 300 67 (20) (54) 250 216 (19) 20 210 200 $MM 150 100 50 0 2012 Trans. Depreciat
Slide 10: Total Company Cash Flow
Total Company Cash Flow 4Q 2013 4,000 3,500 528 (511) 3,000 827 (126) (452) 2,500 8 2,292 2,018 $MM 2,000 1,500 1,000 500 0 9/30/13 Operating Working Cash Capital Dividends Share Other 12/31/13 Cash Cash Flow Capital Expenditures, Paid Repurchase Cash Balance before Acquisition, Balance Working and
Slide 11: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($MM) 2013 2013 2013 2013 4Q 3Q 2Q 1Q As of quarter ended: Cash and cash equivalents 2,292 2,018 3,069 4,737 Total debt 3,396 3,403 3,410 3,416 Equity 11,332 11,264 12,197 12,412 Debt‐to‐total‐capital ratio 23% 23% 22% 22% Last Twelve Months (LTM) EBITDA 4,645 4,7
Slide 12: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders LTM Ended 12/31/13 7,000 6,000 Dividends and share 5,000 repurchases* ~5.9x of 3,277 Free Cash 4,000 Flow** Cash capital expenditures, $MM acquisitions and investments Free Cash 3,000 Flow** $560 Net cash provided by 2,000 operations 3,405 2,845 1,000 0 * $4
Slide 13: 1Q 2014 Outlook
1Q 2014 Outlook Other Total Corporate Percent of Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI‐priced and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Maintenance Amortization Cost** Throughput* Costs Items in MMBD Refinery Direct Op
Slide 14: Appendix
Marathon oy), Petroleum Corporation Appendix
Slide 15: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2013 Budget * 4Q 2013 2013* 2014 Budget Refining & Marketing (R&M) 1,016 297 802 864 Midstream included in R&M 348 Speedway 255 119 296 327 Pipeline Transportation 184 61 164 760 Corporate and Other 160 31 137 133 Subtotal 1,615 508 1,399 2,432 Capitalized In
Slide 16: Reconciliation: Earnings to Adjusted Earnings
Reconciliation Earnings to Adjusted Earnings* ($MM) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Earnings 596 814 1,224 755 725 593 168 626 Pension settlement expenses** ‐ 53 22 5 ‐ 39 15 7 MN asset sale settlement gain** ‐ ‐ (117) ‐ ‐ ‐ ‐ ‐ Adjusted Earnings 596 867 1,129 760 725 632 183 633 *References to ea
Slide 17: Reconciliation: Free Cash Flow
Reconciliation Free Cash Flow to Net Cash Provided by (Used in) Operations ($MM) 2013 (Quarter to date) 1Q 2Q 3Q 4Q Net cash provided by (used in) operating activities 2,079 (436) 407 1,355 Additions to property, plant and equipment (195) (229) (309) (473) Acquisitions* (1,493) (22) ‐ ‐ Investments
Slide 18: Income
Income ($MM unless otherwise noted) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment income 943 1,325 1,691 1,139 1,105 903 227 971 Speedway segment income 50 107 76 77 67 123 102 83 Pipeline Transportation segment income 42 50 52 72 51 58 54 47 Corporate and other unallocated items (7
Slide 19: EBITDA Reconciliation to Net Income Attributable to MPC
EBITDA Reconciliation to Net Income Attributable to MPC ($MM) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Income attributable to MPC 596 814 1,224 755 725 593 168 626 Less: Net interest and other financial income (costs) (22) (17) (25) (45) (48) (45) (47) (39) Add: Net income attributable to noncontrollin
Slide 20: 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 (Quarter to date) 1Q 2Q 3Q 4Q Net cash provided by (used in) operations 2,079 (436) 407 1,355 Less changes in working capital: Changes in current receivables (884) (655)
Slide 21: Refining & Marketing Indicative Gross Margin – 4Q 2013
Refining & Marketing Indicative Gross Margin – 4Q 2013 3,000 658 2,590 (1,329) 2,500 96 40 (38) 2,000 708 $MM 1,500 (290) 1,126 971 1,000 500 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 Ma
Slide 22: Marathon Petroleum Corporation
Marathon oy), Petroleum Corporation