Marathon Petroleum Corporation Reports Second-Quarter 2013 Results
(Thomson Reuters ONE) -
* Reported adjusted earnings of $632 million
* Delivered strong Speedway segment performance
* Increased dividend 20 percent to $0.42 per share
* Returned nearly $1 billion to shareholders
FINDLAY, Ohio, Aug. 1, 2013 - Marathon Petroleum Corporation (NYSE: MPC) today
reported second-quarter earnings of $593 million, or $1.83 per diluted share,
compared with $814 million, or $2.38 per diluted share, in the second quarter of
2012. For the second quarter of 2013, earnings adjusted for special items were
$632 million, or $1.95 per diluted share, compared with earnings adjusted for
special items of $867 million, or $2.53 per diluted share, for the second
quarter of 2012.
--------------------------------------------------------------------------------
Three Months Ended
June 30
(In millions, except per diluted share
data) 2013 2012
--------------------------------------------------------------------------------
Earnings((a)) $ 593 $ 814
Adjustments for special items (net of
taxes):
Pension settlement expenses 39 53
Earnings adjusted for special items((b)) $ 632 $ 867
--------------------------------------------------------------------------------
Earnings per diluted share $ 1.83 $ 2.38
Adjusted Earnings per diluted share $ 1.95 $ 2.53
Weighted average shares - diluted 324 341
Revenues and other income $ 25,703 $ 20,257
--------------------------------------------------------------------------------
(a) References to earnings refer to net income attributable to MPC. See
"References to Earnings" note below.
(b) Earnings adjusted for special items is a financial measure not in
accordance with generally accepted accounting principles (GAAP) and should not
be considered a substitute for earnings as determined in accordance with
accounting principles generally accepted in the United States. See below for
further discussion of earnings adjusted for special items.
"Our second-quarter earnings reflect a strong operating performance by our seven
refineries despite some challenging market conditions," said President and Chief
Executive Officer Gary R. Heminger. "Our upgraded Detroit refinery and our
recently acquired Galveston Bay refinery continue to operate well, and our
Speedway and Pipeline Transportation segments both had excellent quarters
financially."
Heminger said that although MPC's refinery throughputs and overall costs were in
line with the company's expectations, a number of factors reduced earnings
compared to the strong financial results for the second quarter of last year.
"Narrower crude oil price differentials affected our earnings," he said. "In
addition, our product price realizations compared to spot market values were
lower in the second quarter of this year due in part to volatility in the
Chicago market and compliance with the Renewable Fuel Standard."
Heminger also noted MPC's continuing shareholder focus in the second quarter.
"We paid $113 million in dividends and purchased $882 million of common stock
during the second quarter as part of our commitment to return capital to
shareholders," he said. "The recent announcement that we have increased our
dividend by 20 percent reflects our confidence in the business and further
underscores our commitment to total shareholder return over the long term."
MPC's remaining share repurchase authorization was approximately $1.3 billion as
of June 30.
Segment Results
Total income from operations was $960 million in the second quarter of 2013,
compared with $1.31 billion in the second quarter of 2012.
------------------------------------------------------------------------
Three Months Ended
June 30
(In millions) 2013 2012
------------------------------------------------------------------------
Income from Operations by Segment
Refining & Marketing $ 903 $ 1,325
Speedway 123 107
Pipeline Transportation 58 50
Items not allocated to segments:
Corporate and other unallocated items (64) (92)
Pension settlement expenses (60) (83)
------------------------------------------------------------------------
Income from operations $ 960 $ 1,307
------------------------------------------------------------------------
Refining & Marketing
Refining & Marketing segment income from operations was $903 million in the
second quarter of 2013, compared with $1.33 billion in the second quarter of
2012. The decrease was primarily due to a $4.95 per barrel reduction in the
Refining & Marketing gross margin, which was $6.18 per barrel in the second
quarter of 2013, compared with $11.13 per barrel in the second quarter of 2012.
MPC's benchmark Light Louisiana Sweet (LLS) crack spread was higher in the
second quarter of 2013 compared to the second quarter of 2012. However, MPC
experienced lower product price realizations compared to the spot market product
prices used in the LLS crack spread calculation. The company believes the
product price realizations were impacted by volatility in the Chicago market and
compliance with the Renewable Fuel Standard. In addition, MPC's average crude
oil acquisition discount narrowed compared to LLS in the second quarter of
2013. The decrease in the Refining & Marketing gross margin was partially offset
by higher refinery throughputs and sales volumes, attributable in large part to
the Galveston Bay refinery, which was acquired on Feb. 1, 2013. The Refining &
Marketing refined product sales volume was 2.13 million barrels per day (bpd) in
the second quarter of 2013, compared with 1.57 million bpd in the second quarter
of 2012.
---------------------------------------------------------------------------
Three Months Ended
June 30
(mbpd = thousands of barrels per day) 2013 2012
---------------------------------------------------------------------------
Key Refining & Marketing Statistics
Refinery throughputs (mbpd)
Crude oil refined 1,690 1,208
Other charge and blendstocks 174 131
Total 1,864 1,339
Refined product sales volume (mbpd)((a)) 2,125 1,571
Refining & Marketing gross margin ($/barrel)((b)) $ 6.18 $ 11.13
---------------------------------------------------------------------------
(a) Includes intersegment sales
(b) Sales revenue less cost of refinery inputs, purchased products and
refinery direct operating costs (including turnaround and major maintenance,
depreciation and amortization, and other manufacturing expenses), divided by
Refining & Marketing segment refined product sales volume.
Speedway
Speedway segment income from operations was $123 million in the second quarter
of 2013, compared with $107 million in the second quarter of 2012. The $16
million increase was primarily the result of a higher gasoline and distillate
gross margin and merchandise gross margin, partially offset by higher expenses
associated with the increase in the number of stores operated. Speedway gasoline
and distillate gross margin per gallon averaged 17.38 cents in the second
quarter of 2013, compared with 16.39 cents in the second quarter of 2012.
--------------------------------------------------------------------------------
Three Months Ended
June 30
2013 2012
--------------------------------------------------------------------------------
Key Speedway Statistics
Convenience stores at period-end 1,468 1,455
Gasoline and distillate sales (millions of 781 756
gallons)
Gasoline and distillate gross margin $ 0.1738 $ 0.1639
($/gallon)((a))
Merchandise sales (in millions) $ 806 $ 776
Merchandise gross margin (in millions) $ 212 $ 203
Same store gasoline sales volume (period
over period) 0.0% 2.1%
Same store merchandise sales excluding
cigarettes (period over period) 4.5% 10.1%
--------------------------------------------------------------------------------
(a) The price paid by consumers less the cost of refined products, including
transportation, consumer excise taxes and bankcard processing fees, divided by
gasoline and distillate sales volume.
Pipeline Transportation
Pipeline Transportation segment income from operations was $58 million in the
second quarter of 2013, compared with $50 million in the second quarter of
2012. The second-quarter 2013 segment income includes 100 percent of the
operations of MPLX LP (NYSE: MPLX), a midstream master limited partnership
formed by MPC in 2012. The increase in segment income was primarily due to an
increase in transportation revenue, partially offset by an increase in operating
and depreciation expenses.
------------------------------------------------------------------
Three Months Ended
June 30
2013 2012
------------------------------------------------------------------
Key Pipeline Transportation Statistics
Pipeline throughput (mbpd)((a))
Crude oil pipelines 1,334 1,193
Refined product pipelines 959 954
Total 2,293 2,147
------------------------------------------------------------------
(a) On owned common-carrier pipelines, excluding equity method investments.
Corporate and Special Items
Corporate and other unallocated expenses of $64 million in the second quarter of
2013 were $28 million lower than in the second quarter of 2012. The decrease was
primarily due to a reduction in net employee benefit expenses, including lower
pension expenses resulting from a pension plan amendment adopted in May 2012.
During the second quarter of 2013, MPC recorded pretax pension settlement
expenses of $60 million resulting from the level of employee lump sum retirement
distributions occurring in 2013, compared with $83 million of pension settlement
expenses in the second quarter of 2012.
Strong Financial Position and Liquidity
On June 30, 2013, the company had $3.1 billion in cash and cash equivalents, an
unused $2.5 billion revolving credit agreement and a $1 billion unused trade
receivables securitization facility. The company's credit facilities and cash
position should provide it with sufficient flexibility to meet its day-to-day
operational needs and continue its balanced approach to investing in the
business and returning capital to shareholders. As of June 30, 2013, the
company's strong financial position was further reflected by its debt-to-total-
capital ratio of 22 percent.
Conference Call
At 10 a.m. EDT today, MPC will hold a webcast and conference call to discuss the
earnings release and provide an update on company operations. Interested parties
may listen to the conference call on MPC's website at
http://www.marathonpetroleum.com by clicking on the "2013 Second-Quarter
Financial Results" link. Replays of the conference call will be available on the
company's website through Thursday, Aug. 15. Financial information, including
the earnings release and other investor-related material, will also be available
online prior to the webcast and conference call at
http://ir.marathonpetroleum.com in the Quarterly Investor Packet and Earnings
Capsule.
###
About Marathon Petroleum Corporation
MPC is the nation's fourth-largest refiner, with a crude oil refining capacity
of approximately 1.7 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,000
independently owned retail outlets across 17 states. In addition, Speedway LLC,
an MPC subsidiary, owns and operates the nation's fourth-largest convenience
store chain, with approximately 1,470 convenience stores in nine states. MPC
also owns, leases or has ownership interests in approximately 8,300 miles of
pipeline. Through subsidiaries, MPC owns the general partner of MPLX LP, a
midstream master limited partnership. MPC's fully integrated system provides
operational flexibility to move crude oil, feedstocks and petroleum-related
products efficiently through the company's distribution network in the Midwest,
Southeast and Gulf Coast regions. For additional information about the company,
please visit our website at http://www.marathonpetroleum.com.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Media Contacts:
Angelia Graves (419) 421-2703
Jamal Kheiry (419) 421-3312
References to Earnings
References to earnings mean net income attributable to Marathon Petroleum
Corporation (MPC) from the statements of income. Unless otherwise indicated,
references to earnings, earnings adjusted for special items and earnings per
share are MPC's share after excluding amounts attributable to noncontrolling
interests.
Non-GAAP Financial Information
In addition to earnings determined in accordance with GAAP, MPC has provided
supplemental "earnings adjusted for special items," a non-GAAP financial measure
that facilitates comparisons to earnings forecasts prepared by stock analysts
and other third parties. Such forecasts generally exclude the effects of items
that are considered non-recurring, are difficult to predict or to measure in
advance or that are not directly related to MPC's ongoing operations. A
reconciliation between GAAP earnings and "earnings adjusted for special items"
is provided in a table on page 1 of this release. "Earnings adjusted for special
items" should not be considered a substitute for earnings as reported in
accordance with GAAP. We believe certain investors use "earnings adjusted for
special items" to evaluate MPC's financial performance between periods.
Management also uses "earnings adjusted for special items" to compare MPC's
performance to certain competitors.
Forward-looking Statements
This press release 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 Dec. 31, 2012, filed with the
Securities and Exchange Commission (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.
--------------------------------------------------------------------------------
Consolidated Statements of
Income (Unaudited) Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per-
share data) 2013 2012 2013 2012
--------------------------------------------------------------------------------
Revenues and other income:
Sales and other operating
revenues (including consumer
excise taxes) $ 25,675 $ 20,240 $ 49,003 $ 40,504
Sales to related parties 2 3 4 4
Income from equity method
investments 7 9 7 11
Net gain on disposal of
assets 1 1 2 3
Other income 18 4 32 10
Total revenues and other
income 25,703 20,257 49,048 40,532
Costs and expenses:
Cost of revenues (excludes
items below) 22,320 16,800 42,354 34,121
Purchases from related
parties 79 57 151 120
Consumer excise taxes 1,596 1,428 3,054 2,808
Depreciation and amortization 302 236 589 466
Selling, general and
administrative expenses 358 365 607 616
Other taxes 88 64 177 138
Total costs and expenses 24,743 18,950 46,932 38,269
Income from operations 960 1,307 2,116 2,263
Net interest and other
financial income (costs) (45) (17) (93) (39)
Income before income taxes 915 1,290 2,023 2,224
Provision for income taxes 316 476 694 814
Net income 599 814 1,329 1,410
Less: Net income attributable
to noncontrolling interests 6 - 11 -
Net income attributable to
MPC $ 593 $ 814 $ 1,318 $ 1,410
--------------------------------------------------------------------------------
Per-share data
Basic:
Net income attributable to
MPC per share $ 1.84 $ 2.39 $ 4.03 $ 4.09
Weighted average shares((a)) 322 340 326 344
Diluted:
Net income attributable to
MPC per share $ 1.83 $ 2.38 $ 4.01 $ 4.07
Weighted average shares((a)) 324 341 328 346
Dividends paid $ 0.35 $ 0.25 $ 0.70 $ 0.50
--------------------------------------------------------------------------------
(a) The number of weighted average shares for the periods ended June
30, 2013, reflects the impact of our share repurchases.
--------------------------------------------------------------------------------
Supplemental Statistics
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(Dollars in millions) 2013 2012 2013 2012
--------------------------------------------------------------------------------
Income from Operations
by Segment
Refining & Marketing $ 903 $ 1,325 $ 2,008 $ 2,268
Speedway 123 107 190 157
Pipeline
Transportation 58 50 109 92
Items not allocated
to segments:
Corporate and
other unallocated items (64) (92) (131) (171)
Pension settlement
expenses (60) (83) (60) (83)
Income from operations 960 1,307 2,116 2,263
Net interest and other
financial income (costs) (45) (17) (93) (39)
Income before income
taxes 915 1,290 2,023 2,224
Income tax provision 316 476 694 814
Net income 599 814 1,329 1,410
Less: Net income
attributable to
noncontrolling interests 6 - 11 -
Net income attributable
to MPC $ 593 $ 814 $ 1,318 $ 1,410
Capital Expenditures and
Investments((a))
Refining & Marketing $ 134 $ 178 $ 1,554 $ 331
Speedway((b)) 76 187 112 198
Pipeline
Transportation 41 60 131 98
Corporate and
Other((c)) 32 56 60 94
Total $ 283 $ 481 $ 1,857 $ 721
--------------------------------------------------------------------------------
(a) The six months ended June 30, 2013, include $1.37 billion for the
acquisition of the Galveston Bay refinery and related assets, comprised of total
consideration, excluding inventory, of $1.16 billion plus assumed liabilities of
$210 million. The total consideration amount of $1.16 billion includes the base
purchase price and a fair-value estimate of $600 million for the contingent
consideration.
(b) Includes Speedway's acquisitions of convenience stores.
(c) Includes capitalized interest.
--------------------------------------------------------------------------------
Supplemental Statistics
(Unaudited) (continued)
Three Months Ended Six Months Ended
June 30 June 30
2013 2012 2013 2012
--------------------------------------------------------------------------------
MPC Consolidated Refined
Product Sales Volumes
(thousands of barrels
per day (mbpd))((a)(b)) 2,135 1,591 2,016 1,574
Refining & Marketing
(R&M) Operating
Statistics((b))
Refinery throughputs
(mbpd):
Crude oil refined 1,690 1,208 1,562 1,177
Other charge and
blendstocks 174 131 206 153
Total 1,864 1,339 1,768 1,330
Crude oil capacity
utilization
(percent)((c)) 99 101 96 99
Refined product yields
(mbpd):
Gasoline 923 724 906 720
Distillates 609 422 566 409
Propane 40 26 36 26
Feedstocks and special
products 240 102 212 116
Heavy fuel oil 31 18 31 17
Asphalt 54 71 50 62
Total 1,897 1,363 1,801 1,350
R&M refined product
sales volumes
(mbpd)((d)) 2,125 1,571 2,004 1,551
R&M gross margin
($/barrel)((e)) $ 6.18 $ 11.13 $ 6.99 $ 9.76
Refinery direct
operating costs in R&M
gross margin
($/barrel)((f)):
Turnaround and major
maintenance $ 0.73 $ 0.88 $ 0.93 $ 0.96
Depreciation and
amortization 1.28 1.39 1.35 1.39
Other manufacturing((g)) 4.06 3.05 3.94 3.11
Total $ 6.07 $ 5.32 $ 6.22 $ 5.46
Speedway Operating
Statistics
Convenience stores at
period end 1,468 1,455
Gasoline and distillate
sales (millions of
gallons) 781 756 1,526 1,462
Gasoline and distillate
gross margin
($/gallon)((h)) $ 0.1738 $ 0.1639 $ 0.1525 $ 0.1377
Merchandise sales (in
millions) $ 806 $ 776 $ 1,517 $ 1,471
Merchandise gross margin
(in millions) $ 212 $ 203 $ 396 $ 382
Same store gasoline
sales volume (period
over period) 0.0% 2.1% 0.3% 0.5%
Same store merchandise
sales excluding
cigarettes (period over
period) 4.5% 10.1% 2.8% 10.3%
Pipeline Transportation
Operating Statistics
Pipeline throughput
(mbpd)((i)):
Crude oil pipelines 1,334 1,193 1,303 1,157
Refined product
pipelines 959 954 939 935
Total 2,293 2,147 2,242 2,092
--------------------------------------------------------------------------------
(a) Total average daily volumes of refined product sales to wholesale,
branded and retail (Speedway segment) customers.
(b) Includes the impact of the Galveston Bay refinery and related assets
beginning on the Feb.1, 2013, acquisition date.
(c) Based on calendar day capacity, which is an annual average that includes
down time for planned maintenance and other normal operating activities.
(d) Includes intersegment sales.
(e) Sales revenue less cost of refinery inputs, purchased products and
refinery direct operating costs (including turnaround and major maintenance,
depreciation and amortization, and other manufacturing expenses), divided by
Refining & Marketing segment refined product sales volume.
(f) Per barrel of total refinery throughputs.
(g) Includes utilities, labor, routine maintenance and other operating costs.
(h) The price paid by consumers less the cost of refined products, including
transportation, consumer excise taxes and bankcard processing fees, divided by
gasoline and distillate sales volume.
(i) On owned common-carrier pipelines, excluding equity method investments.
--------------------------------------------------------------------------------
Segment Earnings Before Interest, Taxes, Depreciation & Amortization (Segment
EBITDA) (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(Dollars in millions) 2013 2012 2013 2012
--------------------------------------------------------------------------------
Segment EBITDA((a))
Refining & Marketing $ 1,155 $ 1,516 $ 2,496 $ 2,644
Speedway 150 135 244 212
Pipeline Transportation 76 62 145 116
Total Segment EBITDA((a)) 1,381 1,713 2,885 2,972
Total segment depreciation
& amortization (297) (231) (578) (455)
Items not allocated to
segments (124) (175) (191) (254)
Income from operations 960 1,307 2,116 2,263
Net interest and other
financial income (costs) (45) (17) (93) (39)
Income before income taxes 915 1,290 2,023 2,224
Income tax provision 316 476 694 814
Net income 599 814 1,329 1,410
Less: Net income
attributable to
noncontrolling interests 6 - 11 -
Net income attributable to
MPC $ 593 $ 814 $ 1,318 $ 1,410
--------------------------------------------------------------------------------
(a) Segment EBITDA represents segment earnings before interest and financing
costs, interest income, income taxes and depreciation and amortization expense.
Segment EBITDA is used by some investors and analysts to analyze and compare
companies on the basis of operating performance. Segment EBITDA should not be
considered as an alternative to net income attributable to MPC, income before
income taxes, cash flows from operating activities or any other measure of
financial performance presented in accordance with accounting principles
generally accepted in the United States. Segment EBITDA may not be comparable to
similarly titled measures used by other entities.
-------------------------------------------------------------------------------
Select Financial Data (Unaudited)
June 30 March 31
(Dollars in millions) 2013 2013
-------------------------------------------------------------------------------
( )
Cash and cash equivalents $ 3,069 $ 4,737
Total debt((a)) 3,410 3,416
Equity 12,197 12,412
Debt-to-total-capital ratio (percent) 22 22
Cash provided by (used in) operations (quarter ended) $ (436) $ 2,079
-------------------------------------------------------------------------------
(a) Includes long-term debt due within one year.
MPC 2013 2Q Results:
http://hugin.info/147922/R/1720458/572758.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Marathon Petroleum Corporation via Thomson Reuters ONE
[HUG#1720458]
Unternehmensinformation / Kurzprofil:
Datum: 01.08.2013 - 13:15 Uhr
Sprache: Deutsch
News-ID 283988
Anzahl Zeichen: 36509
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 160 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Marathon Petroleum Corporation Reports Second-Quarter 2013 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Marathon Petroleum Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
