Second Quarter 2013 Earnings Conference Call and Webcast August 1, 2013.

Slides:



Advertisements
Similar presentations
1 FIRST QUARTER 2009 INVESTOR CONFERENCE CALL. 2 Today ’ s Hosts Steve Romano Chairman & Chief Executive Officer Jim Baumgardner President & Chief Operating.
Advertisements

JinkoSolar Holding Co., Ltd. Q Earnings Call Presentation June 7, 2013.
The LGL Group, Inc. (AMEX: LGL) Q Earnings Report August 4, :30 a.m. Eastern.
February 4, 2008, Atlas Copco Group Q4 Results February 4, 2008.
2 1 Financial results for H Zagreb July, 2014.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Statement of Cash Flows Chapter 13.
1 December 2003 Quarter Earnings January 20, 2004.
Western Financial Group Q Financial Results Conference Call August 18, 2009.
October 29, 2004 China Petroleum & Chemical Corporation 3Q 2004 Results Announcement.
Second Quarter Results Ended June 30, This presentation contains statements, including statements about future plans and expectations, which constitute.
Overview of Finance. Financial Management n The maintenance and creation of economic value or wealth.
Western Financial Group Q Financial Results Conference Call August 12, 2008.
Grattan Institute / MEI Energy Futures Event Dr Fiona Wild Vice President, Environment and Climate Change 5 March 2015 Newman, Iron Ore.
1 Chapter 2 Analysis of Financial Statements © 2007 Thomson/South-Western.
CITGO Petroleum Corporation Sheryll Dean ACG2021 Section 0H1 & 008
May 13, 2009 First Quarter 2009 Earnings Review. Highlights  First quarter 2009 net sales of $46.6 million -- within the Company’s forecasted range 
FY09 Q3 Conference Call April 21, Forward-Looking Statement Page 1 Statements in this release that are not historical are forward-looking and are.
inVentiv Health, Inc. (VTIV)
BSAD 221 Introductory Financial Accounting Donna Gunn, CA.
Intro to Financial Management Understanding Financial Statements and Cash Flows.
1 4Q 2003 Earnings October 21, Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities.
ABLE LABORATORIES, INC.. Safe Harbor Statement Except for historical facts, the statements in this presentation, as well as oral statements or other written.
1 April 30,2004 China Petroleum & Chemical Corporation Q Results Announcement.
Thirteenth Annual Global High Yield Conference September 2005.
Third Quarter 2012 Earnings Conference Call October 25, 2012.
Statement of Cash Flows Chapter 12 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
SAFE HARBOR Certain statements contained in this presentation regarding Rick's Cabaret future operating results or performance or business plans or prospects.
3 rd Quarter 2005 Conference Call September 8, 2005.
1 April 22, Q 2003 Earnings. 2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities.
1 April 29, 2005 China Petroleum & Chemical Corporation Q Results Announcement.
Third Quarter 2009 Earnings Conference Call October 26, 2009 Sunoco Logistics Partners L.P.
SECOND QUARTER 2004 EARNINGS John A. Luke, Jr. Chairman and CEO James A. Buzzard President Peter H. Vogel, Jr. Interim Principal Financial Officer July.
Chapter 2 Introduction to Financial Statement Analysis.
Smith Barney Citigroup Small & Mid-Cap Conference May 6, 2004 Allmerica Financial Corporation Ed Parry Executive Vice President Chief Financial Officer.
Statement of Cash Flows Chapter 13 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Western Financial Group Q Financial Results Conference Call November 17, 2008.
First Quarter Results Ended March 31, This presentation contains statements, including statements about future plans and expectations, which constitute.
Western Financial Group Q Financial Results Conference Call May 9, 2008.
Third Quarter Results Ended September 30, This presentation contains statements, including statements about future plans and expectations, which.
29 April 2009 China Petroleum & Chemical Corporation Q Results Announcement.
The Professional’s Source for Turf Care First Quarter /29/04.
1 1 st Quarter 2016 Earnings Call April 22, 2016.
First Quarter 2013 Earnings Conference Call April 18, 2013.
January 21, 2004 First Fiscal Quarter Earnings Conference.
ANNUAL SHAREHOLDERS MEETING February 27, 2007 TD AMERITRADE, Inc., member NASD/SIPC. TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company,
1 3Q 2003 Earnings July 22, Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities.
Fourth Quarter / Full Year Earnings 2008 Kimberly Ross Chief Financial Officer March 2, 2009.
Western Financial Group Q Financial Results Conference Call November 13, 2006.
Chapter 2 Asset and Liability Valuations and Income Recognition.
Third Quarter 2012 Earnings Conference Call October 18, 2012
First Quarter Fiscal Year 2009 Financial Results December 19, 2008
Tutorials week 48 Amsterdam Business School
Chapter 11 Statement of Cash Flows
Prepared by: Keri Norrie, Camosun College
Q3 Financial Performance
Q2 Financial Performance
2nd Quarter 2016 Earnings Call
Q1 Financial Performance
Q2 Financial Performance
First Quarter Fiscal Year 2016
Intro to Financial Management
Financial Statements and the Annual Report
Q results November 8, 2018.
4th Quarter 2016 Earnings Call
Q2 Financial Performance
2018 FIRST Quarter Results NASDAQ: fult
2018 THIRd Quarter Results NASDAQ: fult
1 Accounting in Action Learning Objectives
Q4 Financial Performance
Data as of September 30, 2019 unless otherwise noted
Presentation transcript:

Second Quarter 2013 Earnings Conference Call and Webcast August 1, 2013

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 forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "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 MPC’s control and are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include: 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; 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; impacts from our repurchases of shares of MPC common stock under our share repurchase authorization, 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 our 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, 2012 filed with the Securities and Exchange Commission (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 or in MPC's Form 10-K could also have material adverse effects on forward-looking statements. Copies of MPC's Form 10-K are available on the SEC website, MPC’s website at or by contacting MPC's Investor Relations Office. Other Information EBITDA, cash provided from operations before changes in working capital, adjusted earnings and free cash flow are non-GAAP financial measures provided in this presentation. EBITDA, cash provided from operations before changes in working capital, adjusted earnings 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, adjusted earnings 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 3 Achieved strong operating performance Delivered strong Speedway segment performance Impacted by changing market conditions Weaker USGC fundamentals Significant volatility in Chicago market Rapid escalation in price of RINs Returned nearly $1 billion to shareholders Announced a 20% increase in dividend to $0.42 per share

2Q 2013 Earnings* Adjusted Earnings Adjusted Earnings per Diluted Share 4 2Q 20132Q 2012 Earnings$593 MM$814 MM Adjusted Earnings$632 MM$867 MM Earnings per Diluted Share$1.83$2.38 Adjusted Earnings per Diluted Share$1.95$2.53 1Q2Q3Q4Q *References to Earnings refer to Net Income attributable to MPC 3,

Adjusted Earnings* 2Q 2013 vs. 2Q 2012 Variance Analysis 5 *References to Earnings refer to Net Income attributable to MPC

Refining & Marketing Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis 6 *Based on market indicators using actual volumes

Speedway Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis 7

Pipeline Transportation Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis 8

Total Company Cash Flow 2Q

Select Balance Sheet/Cash Flow Data ($MM) Q1Q4Q3Q As of quarter ended: Cash and cash equivalents3,0694,7374,8603,387 Total debt3,4103,4163,3613,349 Equity12,19712,41212,10511,467 Debt-to-total-capital ratio22% 23% Last Twelve Months (LTM) EBITDA6,3186,5996,3424,942 Debt to LTM EBITDA0.5x 0.7x Quarter to date: Cash provided by (used in) operations(436)2,0792,0431,833 Cash provided by operations before changes in working capital 8591,0461,1241,320 10

Focused Return of Capital to Shareholders 11 * $464 MM dividends plus $1,813 MM share repurchases ** Cash flow provided by operations less cash capital expenditures and acquisitions ~81% of Free Cash Flow** Free Cash Flow** $2,819 Net cash provided by operations $5,519

3Q 2013 Outlook Projected 3Q 20133Q 2012 Crude throughput1.65 MMBD 1.19 MMBD Total throughput1.85 MMBD1.35 MMBD Percent of WTI-priced crude22%26% Refinery direct operating costs in Refining & Marketing gross margin*: Turnaround and major maintenance $1.15$1.18 Depreciation & amortization Other manufacturing cost ** Total$6.60$5.78 Corporate and other unallocated items$75 million$74 million 12 * Per barrel of total throughput **Includes utilities, labor, routine maintenance and other operating costs

Appendix

Reconciliation Earnings to Adjusted Earnings* 14 ($MM) Q2Q3Q4Q1Q2Q Earnings , Pension settlement expenses** MN asset sale settlement gain**(117) Adjusted Earnings , *References to Earnings refer to Net Income attributable to MPC **Net of tax

Reconciliation 15 ($MM) (Quarter to date) 3Q4Q1Q 2Q Net cash provided by (used in) operating activities 1,8332,0432,079(436) Additions to property, plant and equipment (331)(403)(195)(229) Acquisitions*(27)-(1,493)(22) Free cash flow1,4751,640391(687) Last twelve months free cash flow2,819 Free Cash Flow to Net Cash Provided from Operations *Represents cash paid

Income 16 ($MM unless otherwise noted) Q2Q3Q4Q1Q2Q Refining & Marketing segment income Speedway segment income Pipeline Transportation segment income , , , , Corporate and other unallocated items (79)(92)(74)(91)(67)(64) Pension settlement expenses -(83)(33)(8)-(60) MN asset sale settlement gain Income from operations 956 (22) 1,307 (17) 1,895 (25) 1,189 (45) 1,156 (48) 960 (45) Net interest and other financing income (costs) Income before income taxes 9341,2901,8701,1441, Income tax provision Net income , Less net income attributable to noncontrolling interests Net income attributable to MPC , Effective tax rate 36%37%35%34% 35%

EBITDA Reconciliation to Net Income (Loss) Attributable to MPC 17 ($MM) Q1Q2Q3Q4Q1Q2Q Net Income (Loss) attributable to MPC (75) , Less: Net interest and other financial income (costs) (22) (17)(25)(45)(48)(45) Add: Net income attributable to noncontrolling interests Add: Provision (benefit) for income taxes (105) Add: Depreciation and amortization EBITDA 721,1861,5432,1411,4721,4431,262 Last Twelve Months EBITDA 4,9426,3426,5996,318

Cash Provided from Operations Before Changes in Working Capital Reconciliation to Cash Provided by (Used in) Operations 18 ($MM) (Quarter to date) 3Q4Q1Q2Q Net cash provided by (used in) operations1,8332,0432,079(436) Less changes in working capital: Changes in current receivables(393)491(884)(655) Changes in inventories142440(517)62 Changes in current accounts payable and accrued liabilities862(63)2,491(702) Changes in the fair value of derivative instruments(98)51(57)-- Total changes in working capital ,033(1,295) Cash provided from operations before changes in working capital1,3201,1241,046859

Capital Expenditures & Investments* 19 ($MM) 2013 Budget2Q YTD Refining & Marketing1, Speedway Pipeline Transportation Corporate and Other Subtotal1, Capitalized Interest4348 Total Capital Expenditures & Investments1, *Excludes $1.37 billion in capital expenditures and investments attributable to the acquisition of the Galveston Bay refinery and related assets

MPC Crude Slate 20

Refining & Marketing Indicative Gross Margin – 2Q *Based on market indicators using actual volumes