220 likes | 375 Views
Second Quarter 2013 Earnings Conference Call and Webcast . August 1, 2013. Forward-Looking Statements .
E N D
Second Quarter 2013Earnings 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 http://ir.marathonpetroleum.com 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.
Highlights • 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 3,352 9.79 1Q 2Q 3Q 4Q *References to Earnings refer to Net Income attributable to MPC
Adjusted Earnings* 2Q 2013 vs. 2Q 2012 Variance Analysis *References to Earnings refer to Net Income attributable to MPC
Refining & Marketing Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis *Based on market indicators using actual volumes
Speedway Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis
Pipeline Transportation Segment Income 2Q 2013 vs. 2Q 2012 Variance Analysis
Total Company Cash Flow 2Q 2013
Focused Return of Capital to Shareholders Net cash provided by operations $5,519 ~81%of Free Cash Flow** Free CashFlow** $2,819 * $464 MM dividends plus $1,813 MM share repurchases • ** Cash flow provided by operations less cash capital expenditures and acquisitions
3Q 2013 Outlook * Per barrel of total throughput ** Includes utilities, labor, routine maintenance and other operating costs
Reconciliation Earnings to Adjusted Earnings* *References to Earnings refer to Net Income attributable to MPC **Net of tax
Reconciliation Free Cash Flow to Net Cash Provided from Operations *Represents cash paid
EBITDA Reconciliation to Net Income (Loss) Attributable to MPC
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Cash Provided by (Used in) Operations
Capital Expenditures & Investments* *Excludes $1.37 billion in capital expenditures and investments attributable to the acquisition of the Galveston Bay refinery and related assets
Refining & Marketing Indicative Gross Margin – 2Q 2013 *Based on market indicators using actual volumes