Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Q4 2015 Earnings Presentation
24 slides from Marathon Petroleum's earnings presentation, Feb 3, 2016
Slide 1: Fourth Quarter 2015 Earnings Conference Call and Webcast
Fourth Quarter 2015 Earnings Conference Call and Webcast February 3, 2016
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”), MPLX LP (“MPLX”), and MarkWest Energy Partners, L.P. ("MarkWest").These forward-looking statements relate to, among other t
Slide 3: Highlights
Highlights Reported fourth-quarter earnings of $187 million; full-year earnings of $2.85 billion Substantial progress on the integration of acquired retail locations Completed strategic combination between MPLX and MarkWest Returned $1.6 billion to shareholders in 2015, including $362 millio
Slide 4: 4Q and Full Year 2015 Earnings
4Q and Full Year 2015 Earnings* 4Q 2015 4Q 2014 2015 2014 Earnings $187 MM $798 MM $2,852 MM $2,524 MM Earnings per Diluted Share** $0.35 $1.43 $5.26 $4.39 Earnings Earnings per Diluted Share** 3,000 $2,852 6 $2,524 187 $5.26 2,500 5 $4.39 0.35 798 948 2,000 4 1.76 $/Share 1.43 $MM 1,500 672 3 826 1
Slide 5: Earnings: 4Q 2015 vs. 4Q 2014 Variance Analysis
Earnings* 4Q 2015 vs. 4Q 2014 Variance Analysis 1,000 798 800 600 400 $MM 200 315 26 187 0 (809) 13 13 -200 (138) (31) -400 4Q 2014 Refining & Speedway Midstream Items not Interest and Income Noncontrolling 4Q 2015 Marketing Allocated to Other Taxes Interests Segments Financing Costs *Earnings refer
Slide 6: Refining and Marketing Segment Income: 4Q 2015 vs. 4Q 2014
Refining and Marketing Segment Income 4Q 2015 vs. 4Q 2014 Variance Analysis 1,600 1,400 192 65 196 1,200 (70) 1,016 (38) 1,000 (345) $MM 800 600 400 62 207 200 (784) (87) 0 4Q 2014 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other Direct Other 4Q 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost o
Slide 7: Refining and Marketing Segment Income: 2015 vs. 2014
Refining and Marketing Segment Income 2015 vs. 2014 Variance Analysis 7,000 6,000 869 1,340 5 (345) 5,000 726 (27) (50) 4,186 4,000 3,609 (396) $MM (1,545) 3,000 2,000 1,000 0 2014 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other Direct Other 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost or G
Slide 8: Speedway Segment Income
Speedway Segment Income Variance Analysis 4Q 2015 vs. 4Q 2014 300 273 200 16 $MM (93) (25) 135 100 (36) 0 4Q 2014 Light Product Merchandise Lower of Other 4Q 2015 Gross Margin Gross Margin Cost or Market 2015 vs. 2014 1,500 393 (25) 1,000 401 $MM 673 544 500 (640) 0 2014 Light Product Merchandise Lo
Slide 9: Midstream Segment Income
Midstream Segment Income Variance Analysis 4Q 2015 vs. 4Q 2014 150 32 100 71 $MM 58 1 10 50 (26) (4) 0 4Q 2014 Transportation Pipeline MarkWest MarkWest Operating 4Q 2015 Revenue Affiliates Transaction Expenses Costs 2015 vs. 2014 400 32 31 2 289 300 280 (30) (26) $MM 200 100 0 2014 Transportation P
Slide 10: Total Company Cash Flow
Total Company Cash Flow 4Q 2015 655 3,500 1,151 3,000 (343) 2,500 (831) 2,044 2,000 $MM 1,500 (1,218) 31 1,127 1,000 (362) 500 0 9/30/2015 Operating Working Long-term Cash Capital MarkWest Return of Other 12/31/2015 Cash Cash Flow Capital Debt, Net Expenditures, Acquisition** Capital to Cash Balance
Slide 11: Substantial Dividend Growth Since Spin-Off
Substantial Dividend Growth Since Spin-Off 0.35 +28% 350 $0.32 0.30 300 +19% $0.25 0.25 +20% 250 $0.21 +40% 0.20 200 $/Share $MM $0.175 $171 $170 $170 +25% $141 $138 $136 $136 0.15 $0.125 $129 $126 $123 $122 150 $119 $116 $116 $113 $0.10 $89 $87 0.10 $85 100 $71 0.05 50 0.00 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 12: Select Balance Sheet / Cash-Flow Data
Select Balance Sheet / Cash-Flow Data ($MM) 2015 4Q 3Q 2Q 1Q As of quarter ended: Cash and cash equivalents 1,127 2,044 1,881 2,078 Total debt(a) 11,925 6,692 6,698 6,704 Equity 19,678 12,925 12,290 11,980 Debt-to-total-capital ratio (book) 38% 34% 35% 36% Last Twelve Months (LTM) EBITDA 6,338 7,205
Slide 13: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2016 Revised 4Q 2015 2015 Plan Refining & Marketing (R&M) 318 868 1,145 Midstream R&M 91 275 351 Total Refining & Marketing Segment 409 1,143 1,496 Speedway 226 501 361 Midstream, including MPLX* 241 593 1,727 Corporate and Other 60 155 115 Total Capital Expe
Slide 14: 1Q 2016 Outlook
1Q 2016 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 MBD Refinery Direct
Slide 15: Appendix
Appendix 15
Slide 16: Focused Return of Capital to Shareholders
Focused Return of Capital to Shareholders LTM Ended 12/31/15 6,000 Dividends and share 5,000 repurchases ~1.0x of Adj. Free Cash Flow*** 1,218 MarkWest Cash Consideration 4,000 $1,557 Adjusted Free Cash Flow, Dividends and share $MM 1,578 Excluding repurchases* 3,000 MarkWest*** Investments** 2,000
Slide 17: Reconciliation: Adjusted Free Cash Flow
Reconciliation Adjusted Free Cash Flow to Net Cash Provided by Operations ($MM) 2015 LTM (For the Quarter) 1Q 2Q 3Q 4Q Net cash provided by operating activities 1,190 994 1,069 808 4,061 Additions to property, plant and equipment (389) (375) (513) (721) (1,998) Investments (42) (107) (72) (110) (331
Slide 18: Earnings
Earnings ($MM unless otherwise noted) 2014 2015 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment income* 362 1,260 971 1,016 1,316 1,206 1,457 207 Speedway segment income* 58 94 119 273 168 127 243 135 Midstream segment income 72 81 69 58 67 79 72 71 Corporate and other unallocated items (67) (6
Slide 19: Reconciliation: EBITDA to Net Income
Reconciliation EBITDA to Net Income Attributable to MPC ($MM) 2014 2015 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Income attributable to MPC 199 855 672 798 891 826 948 187 Less: Net interest and other financial inco income (costs) (46) (48) (50) (72) (81) (64) (70) (103) Add: Net income (loss) attributable to in
Slide 20: 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) 2015 (For the Quarter) 1Q 2Q 3Q 4Q Net cash provided by operations 1,190 994 1,069 808 Less changes in working capital: Changes in current receivables 691 (512) 752 361 Changes in
Slide 21: Refining and Marketing Segment Income: 4Q 2015 vs. 3Q 2015
Refining and Marketing Segment Income 4Q 2015 vs. 3Q 2015 Variance Analysis 1,500 1,457 1,000 $MM 500 7 37 (345) (1,018) (82) (24) 192 19 207 (36) 0 3Q 2015 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other Direct Other 4Q 2015 6-3-2-1 Sour Diff. Diff. Prompt Structure Cost or Gross Operating Crack
Slide 22: Refining and Marketing Indicative Gross Margin
Refining and Marketing Indicative Gross Margin 4Q 2015 2,000 112 368 1,803 534 40 (30) 1,500 (345) 1,124 $MM 1,000 500 (1,249) 207 (347) 0 *LLS *Sweet/ *LLS/WTI *LLS *Market Lower of Other R&M Direct Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Cost or Gross Gross Operating Segment Crack
Slide 23: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* 40 $35.5 $31.3 30 $27.3 $24.1 $19.7 $20.7 $MM 20 $16.6 $17.5 $18.5 $15.1 $15.8 $9.8 10 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 LP Distributions GP Distributions, including IDRs Cash Distribution and Asset Sales 2013 2014 2015 Procee
Slide 24: Marathon
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