Third Quarter 2014 Earnings Conference Call and Webcast October 30, 2014 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding both MPC and MPLX. These forwardlooking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPC and MPLX. You can identify forward-looking statements by words such as “anticipate,” “believe,” “estimate,” "objective," “expect,” “forecast,” "plan," “project,” "potential," “could,” “may,” “should,” “would,” “will” or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the companies’ control and are difficult to predict. Factors that could cause MPC’s actual results to differ materially from those in the forward-looking statements include: our ability to successfully integrate the acquired Hess retail operations and achieve the strategic and other expected objectives relating to the acquisition, including any expected synergies; changes to the expected construction costs and timing of pipeline projects; volatility in and/or degradation of market and industry conditions; the availability and pricing of crude oil and other feedstocks; slower growth in domestic and Canadian crude supply; an easing or lifting of the U.S. crude oil export ban; completion of pipeline capacity to areas outside the U.S. Midwest; consumer demand for refined products; transportation logistics; the reliability of processing units and other equipment; our ability to successfully implement growth opportunities; modifications to MPLX earnings and distribution growth objectives; impacts from our repurchases of shares of MPC common stock under our share repurchase authorizations, including the timing and amounts of any common stock repurchases; state and federal environmental, economic, health and safety, energy and other policies and regulations, including the cost of compliance with the Renewable Fuel Standard; other risk factors inherent to MPC’s industry; and the factors set forth under the heading "Risk Factors" in MPC's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission (SEC). Factors that could cause MPLX actual results to differ materially from those in the forward-looking statements include: the adequacy of MPLX capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions and execute business plans; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; volatility in and/or degradation of market and industry conditions; completion of pipeline capacity by competitors; disruptions due to equipment interruption or failure, including electrical shortages and power grid failures; the suspension, reduction or termination of MPC's obligations under commercial agreements; the ability to successfully implement growth strategies, whether through organic growth or acquisitions; state and federal environmental, economic, health and safety, energy and other policies and regulations; other risk factors inherent to MPLX’s industry; and the factors set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC. In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here, in MPC’s Form 10-K or in MPLX’s Form 10-K could also have material adverse effects on forward-looking statements. Other Information EBITDA, cash provided from operations before changes in working capital and free cash flow are non-GAAP financial measures provided in this presentation. EBITDA, cash provided from operations before changes in working capital and free cash flow reconciliations to the nearest GAAP financial measures are included in the Appendix to this presentation. EBITDA, cash provided from operations before changes in working capital and free cash flow are not defined by GAAP and should not be considered in isolation or as an alternative to net income attributable to MPC, net cash provided by (used in) operating, investing and financing activities or other financial measures prepared in accordance with GAAP. 2 Highlights Reported earnings of $672 million Closed Speedway acquisition of Hess’ retail operations Returned $442 million of capital to shareholders, including $301 million of share repurchases Announced plans to substantially accelerate the growth of MPLX, and authorized sale of remaining 31 percent interest in MPLX Pipe Line Holdings to MPLX, representing approximately $80 million of annual EBITDA 3 Substantial Acceleration of MPLX Growth Grow MPLX to ~$450 MM of runrate EBITDA (December 2015 annualized), from current ~$160 MM run-rate (3Q 2014 annualized) Evolve MPLX into large-cap, diversified logistics MLP Drop the remaining 31% interest in MPLX Pipe Line Holdings to MPLX, representing ~$80MM of annual EBITDA Adjusted EBITDA attributable to MPLX 450 400 ~3x 3Q 2014 annualized EBITDA 300 $MM Accelerate MPLX’s annual LP distribution growth rate to average mid-20% over next five years 500 200 160 111 100 - 4 Substantial Acceleration of MPLX Growth Rapidly changing midstream business environment creates multiple opportunities where size matters Hess retail acquisition has expanded MPC’s opportunity set and strategic options Identified fuels distribution EBITDA source Expands retained MLP-qualifying EBITDA to $1.7 billion Market has not appropriately reflected MPLX contribution to total value of MPC enterprise 5 3Q 2014 Earnings* 3Q 2014 Earnings $672 MM $168 MM $2.36 $0.54 Earnings per Diluted Share Earnings $MM 2,000 1,500 8 2,112 626 1,726 168 672 1,000 593 500 725 0 Earnings per Diluted Share 2013 6.64 6 $/Share 2,500 3Q 2013 855 199 2.07 0.54 1.83 4 2 2.17 0 2014 1Q 2013 2Q 3Q 5.95 2.36 2.95 0.67 2014 4Q *References to Earnings refer to Net Income attributable to MPC 6 Earnings* 3Q 2014 vs. 3Q 2013 Variance Analysis 1,000 744 900 17 15 (15) (3) 800 700 $MM 600 (252) (2) Income Taxes Noncontrolling Interests 672 500 400 300 200 168 100 0 3Q 2013 Refining & Marketing Speedway Pipeline Transportation Items not Allocated to Segments Interest 3Q 2014 *References to Earnings refer to Net Income attributable to MPC 7 Refining and Marketing Segment Income 3Q 2014 vs. 3Q 2013 Variance Analysis 1,250 548 1,000 (152) 750 $MM 379 250 0 (22) 118 8 (95) (40) 500 971 227 3Q 2013 *LLS 6-3-2-1 Crack *Sweet/ Sour Diff. *LLS/WTI Diff. *LLS Prompt vs. Delivered *Market Structure Other Gross Margin Direct Operating Costs Other 3Q 2014 *Based on market indicators using actual volumes 8 Refining and Marketing Segment Income 3Q 2014 vs. 2Q 2014 Variance Analysis 1,500 1,250 1,260 $MM 1,000 (229) 20 30 24 34 (33) (62) (73) 971 750 500 250 0 2Q 2014 *LLS 6-3-2-1 Crack *Sweet/ Sour Diff. *LLS/WTI Diff. *LLS Prompt vs. Delivered *Market Structure Other Gross Margin Direct Operating Costs Other 3Q 2014 *Based on market indicators using actual volumes 9 Speedway Segment Income 3Q 2014 vs. 3Q 2013 Variance Analysis 160 11 140 22 $MM 120 100 (16) 102 119 80 60 40 20 0 3Q 2013 Light Product Gross Margin Merchandise Gross Margin Other 3Q 2014 10 Pipeline Transportation Segment Income 3Q 2014 vs. 3Q 2013 Variance Analysis 100 9 80 15 $MM 60 (9) 69 54 40 20 0 3Q 2013 Transportation Revenue Pipeline Affiliates Other 3Q 2014 11 Total Company Cash Flow 3Q 2014 2,608 6,000 5,000 (736) $MM 4,000 1,010 3,000 2,000 68 2,125 (2,785) (141) (301) 6 1,854 Other 9/30/14 Cash Balance 1,000 0 6/30/14 Cash Balance Operating Cash Flow before Working Capital Working Capital Long-term Debt, Net Cash Capital Hess Acquisition, Expenditures, Net of Cash Acquisitions, Acquired Investments, and Contingent Consideration* Dividends Paid Share Repurchases * Excludes acquisition of Hess’ retail operations and related assets 12 Select Balance Sheet/Cash Flow Data 2014 2014 2014 2013 3Q 2Q 1Q 4Q Cash and cash equivalents 1,854 2,125 2,166 2,292 Total debt 6,264 3,638 3,659 3,396 Equity 11,266 11,037 10,758 11,332 Debt-to-total-capital ratio 36% 25% 25% 23% Last Twelve Months (LTM) EBITDA 5,099 4,315 3,883 4,645 Debt to LTM EBITDA 1.2x 0.8x 0.9x 0.7x Cash provided by operations 1,078 878 766 1,355 Cash provided by operations before changes in working capital 1,010 1,095 641 827 ($MM) As of quarter ended: For the Quarter: 13 Focused Return of Capital to Shareholders 8,000 LTM Ended 9/30/14 7,000 6,000 2,785 Hess Retail Acquisition $MM 5,000 Dividends and share repurchases* 4,000 ~1.2x of Free Cash Flow*** 3,000 2,000 1,000 2,413 4,077 $2,055 Free Cash Flow, Excluding Hess Acquisition*** Investments, Excluding Hess Acquisition** Net cash provided by operations 2,022 0 * $512 MM dividends plus $1,901 MM share repurchases ** Includes cash capital expenditures, acquisitions, investments and contingent consideration, excluding $2.785 billion for the acquisition of Hess’ retail operations and related assets. *** Cash flow provided by operations less cash used for investments, excluding $2.785 billion for the acquisition of Hess’ retail operations and related assets. 14 4Q 2014 Outlook Other Crude Charge/ Throughput* Feedstocks Throughput* Total Throughput* Total Percent of Turnaround Depreciation Other Direct WTI-priced and Major and Manufacturing Operating Crude Maintenance Amortization Cost** Costs 4Q 2013 Projected 4Q 2014 in MBD Gulf Coast Region Midwest Region MPC Total Corporate and Other Unallocated Items*** Refinery Direct Operating Costs**** 1,000 200 1,200 6% $2.00 $1.10 $4.60 $7.70 650 50 700 44% $1.40 $1.75 $4.25 $7.40 1,650 200 1,850 21% $1.85 $1.35 $4.60 $7.80 Gulf Coast Region Midwest Region 943 238 1,181 5% $1.67 $1.24 $4.44 $7.35 604 51 655 41% $2.40 $1.82 $4.56 $8.78 MPC Total 1,547 247 1,794 19% $1.98 $1.48 $4.59 $8.05 $85MM $93MM *Region throughput data includes inter-refinery transfers, but MPC totals exclude transfers **Includes utilities, labor, routine maintenance and other operating costs ***Includes pension settlement expense ($6MM and $12MM pension settlement expense included in 4Q 2014 and 4Q 2013, respectively) ****$/barrel throughput 15 Illustrative Value of MPC Ownership in MPLX* Illustrative Value of MPC Ownership based on 2019E Distributions** Total Distributions to MPC 600 500 389 300 267 15 10 187 200 16.0 GP Distributions $B $MM 20.4 20 400 124 100 24.8 25 557 LP Distributions CAGR 25% 82 2014E 2015E 2016E 2017E 2018E 2019E 5 0 - MPLX Value per MPC Share GP @ 35x LP @ 20x 1 $41.26 $56.93 GP @ 45x LP @ 25x 2 $56.93 $72.62 GP @ 55x LP @ 30x 3 $72.62 $88.29 *Represents cash distributions applicable to the period in which the distributions were earned. GP distributions include incentive distribution rights. **Graph shows estimated valuations for MPC’s LP and GP interests in MPLX. See MPLX LP and GP Illustrative Valuation slide in appendix for underlying assumptions. 16 Appendix MPLX LP and GP Illustrative Valuation MPC Distributions & Asset Sales Proceeds from MPLX ($MM) GP Distributions, including IDRs 3Q 2013 YTD 1 3Q 2014 YTD 3 LP Distributions 40 53 Total Cash Distribution Received from MPLX Asset Sales Proceeds from MPLX 41 100 56 310 Illustrative MPLX Value to MPC* Multiple of LP distributions LP Valuation ($MM) 20x 2014 25x 30x 20x 2019 25x 30x $1,523 $1,904 $2,285 $4,644 $5,805 $6,966 Multiple of GP distributions 35x 45x 55x 35x 45x 55x GP Valuation ($MM) $202 $260 $318 $11,355 $14,600 $17,844 MPLX Value to MPC ($MM) $1,725 $2,164 $2,603 $15,999 $20,405 $24,810 MPLX Value per MPC Share $6.14 $7.70 $9.26 $56.93 $72.62 $88.29 Value Assumptions - Used 25% for mid-20% Distribution Growth - MPC maintains 54MM LP units, 2% GP Interest - Acquired EBITDA financed 50/50 Debt/Equity - MPC shares outstanding as of 9/30/2014 *Represents cash distributions applicable to the period in which the distributions were earned. 18 MPC’s Currently Identified Eligible MLP EBITDA Sources of ~ $1.7 B NewNew Pipelines Retained by MPC ~ 5,400 miles of additional crude and products pipelines – Owns, leases or has an ownership interest in these pipelines – 31% of MPLX Pipe Line Holdings LP Southern Access Extension, Sandpiper and Utica investments Marine 200 owned and 12 leased inland barges; 5.3 MMBBL capacity 17 owned and one leased inland towboats Terminals 63 light product; ~ 23 MMBBL storage; 192 loading lanes 18 asphalt; ~ 4 MMBBL storage; 65 loading lanes Railcars 27 owned and 2,138 leased 763 general service; 1,166 high pressure; 236 open-top hoppers Refineries 59 MMBBL storage (tanks and caverns) 25 rail loading racks and 24 truck loading racks 7 owned and 11 non-owned docks 2 condensate splitter investments Fuels Distribution 20 B gallons of fuels distribution volume – Existing MPC and Speedway volumes; ~ 17 B gallons refined products – Acquisition of Hess’ retail operations adds ~ 3 B gallons refined products 19 Capital Expenditures & Investments* ($MM) 2014 Budget 3Q 2014 2014 YTD Refining & Marketing (R&M) 864 151 445 Midstream included in R&M 348 113 232 Speedway 327 77 153 Pipeline Transportation 760 224 418 Corporate and Other 133 22 60 2,432 587 1,308 38 7 20 2,470 594 1,328 Subtotal Capitalized Interest Total Capital Expenditures & Investments * Excludes capital expenditures and investments attributable to the acquisition of $2.68B for Hess’ retail operations and related assets. 20 MPLX Adjusted EBITDA Reconciliation from Net Income ($MM) Net income Less: Net income attributable to MPCretained interest Net income attributable to MPLX LP Plus: Net income attributable to MPCretained interest Depreciation Provision for income taxes Non-cash equity-based compensation Net interest and other financial costs Adjusted EBITDA Less: Adjusted EBITDA attributable to MPCretained interest Adjusted EBITDA attributable to MPLX LP 3Q 2014 Dec. 2015 Annualized Annualized 146 172 304 2013 68 56 - 78 116 304 68 49 1 1 197 56 50 2 4 228 71 4 71 450 86 68 - 111 160 450 21 Reconciliation Free Cash Flow to Net Cash Provided by Operations 2013 ($MM) (For the Quarter) 2014 4Q 1Q 2Q 3Q Net cash provided by operating activities 1,355 766 878 1,078 Additions to property, plant and equipment (473) (267) (302) (383) Acquisitions* - - (42) (4) Investments (38) (123) (41) (177) - - - (172) 844 376 493 342 Contingent Consideration Free cash flow Last twelve months free cash flow 2,055 *Represents cash paid, excludes acquisition of Hess’ retail operations and related assets. 22 Earnings ($MM unless otherwise noted) 2013 2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1,105 903 227 971 362 1,260 971 Speedway segment income 67 123 102 83 58 94 119 Pipeline Transportation segment income 51 58 54 47 72 81 69 (67) (64) (59) (81) (67) (61) (76) - (60) (23) (12) (64) (5) (21) 1,156 960 301 1,008 361 1,369 1,062 (48) (45) (47) (39) (46) (48) (50) 1,108 915 254 969 315 1,321 1,012 Income tax provision 378 316 81 338 108 457 333 Net income 730 599 173 631 207 864 679 5 6 5 5 8 9 7 Net income attributable to MPC 725 593 168 626 199 855 672 Effective tax rate 34% 35% 32% 35% 34% 35% 33% Refining & Marketing segment income Corporate and other unallocated items Pension settlement expenses Income from operations Net interest and other financing income (costs) Income before income taxes Less net income attributable to noncontrolling interests 23 Reconciliation EBITDA to Net Income Attributable to MPC ($MM) 2013 2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net Income attributable to MPC 725 593 168 626 199 855 672 Less: Net interest and other financial income (costs) (48) (45) (47) (39) (46) (48) (50) Add: Net income attributable to noncontrolling interests 5 6 5 5 8 9 7 Add: Provision for income taxes 378 316 81 338 108 457 333 Add: Depreciation and amortization 287 302 299 332 320 325 322 1,443 1,262 600 1,340 681 1,694 1,384 4,645 3,883 4,315 5,099 EBITDA Last Twelve Months EBITDA 24 Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations ($MM) 2013 2014 4Q 1Q 2Q 3Q 1,355 766 878 1,078 34 139 (300) 585 Changes in inventories 1,025 (1,000) 77 192 Changes in current accounts payable and accrued liabilities (564) 1,011 (17) (676) 33 (25) 23 (33) 528 125 (217) 68 827 641 1,095 1,010 (For the Quarter) Net cash provided by operations Less changes in working capital: Changes in current receivables Changes in the fair value of derivative instruments Total changes in working capital Cash provided from operations before changes in working capital 25 Refining & Marketing Indicative Gross Margin – 3Q 2014 3,000 501 2,500 $MM 2,000 1,500 95 546 2,516 19 (150) 1,505 (1,245) 1,000 (300) 971 500 0 *LLS 6-3-2-1 Crack *Sweet/ Sour Diff. *LLS/WTI *LLS *Market Diff. Prompt vs. Structure Delivered Other Gross Margin R&M Gross Margin Direct Operating Costs Other R&M Segment Income *Based on market indicators using actual volumes 26
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