Marathon Petroleum Corporation Reports Fourth-Quarter and Full-Year 2015 Results
(Thomson Reuters ONE) -
* Reported fourth-quarter earnings of $187 million ($0.35 per diluted share),
including a pretax charge of $370 million ($0.44 per diluted share) to value
inventories at the lower of cost or market; full-year earnings of $2.85
billion ($5.26 per diluted share)
* Completed strategic combination between MPLX and MarkWest
* Returned $1.6 billion to shareholders in 2015, including $362 million in the
fourth quarter
FINDLAY, Ohio, Feb. 3, 2016 - Marathon Petroleum Corporation (NYSE: MPC) today
reported 2015 fourth-quarter earnings of $187 million, or $0.35 per diluted
share, compared with $798 million, or $1.43 per diluted share, in the fourth
quarter of 2014. Fourth-quarter 2015 earnings include a pretax charge of $370
million, or $0.44 per diluted share, to value inventories at lower of cost or
market (LCM). The results of MarkWest are included from the Dec. 4, 2015, merger
date.
Earnings were $2.85 billion, or $5.26 per diluted share, for the full-year
2015, compared with $2.52 billion, or $4.39 per diluted share, in 2014.
"In addition to our strong financial and operational results, we also made
tremendous progress on our strategic objectives of growing the more stable cash-
flow segments of our business and enhancing our refining margins," said MPC
President and Chief Executive Officer Gary R. Heminger. "Product price
realizations and continued strong gasoline demand supported crack spreads in the
fourth quarter. In addition, Speedway continued its strong performance during
the fourth quarter, finishing the year with segment income of $673 million and
nearly $1 billion of EBITDA [earnings before interest, taxes, depreciation and
amortization]," Heminger said. He also added that Speedway LLC, MPC's retail
division, has substantially completed the planned conversions of its new East
Coast and Southeast retail locations to the Speedway brand well ahead of
schedule. "The acquisition of these retail locations has exceeded our
expectations and has been a tremendous value driver for MPC."
The merger of MarkWest Energy Partners, L.P., and MPC's sponsored master limited
partnership (MLP) MPLX LP (NYSE: MPLX) on Dec. 4, 2015, was a significant
accomplishment in the company's strategy, highlighted Heminger. "This
combination creates a diversified, large-cap MLP with compelling long-term
growth opportunities. MPLX creates substantial value to MPC shareholders through
its general partner interest." He noted that MPC has offered to contribute its
inland marine business to MPLX at a supportive valuation in exchange for MPLX
equity. "This drop-down of additional logistics assets to the partnership
further diversifies its high-quality earnings stream. While MPC takes into
consideration the capital allocation needs of both companies in determining
sponsor support, the marine transaction demonstrates the flexible ways in which
MPC can provide support to MPLX." The transaction is expected to close in the
second quarter of 2016, pending requisite approvals.
Heminger noted that the continued decline in commodity prices, and the market's
increasing belief that these conditions will persist for some period of time,
has resulted in a challenging valuation and a higher yield environment within
the MLP space. "Given current market conditions, more modest growth in volumes
of natural gas and natural gas liquids, the increase in MPLX's yield and the
impacts to its valuation, MPLX is now forecasting distribution growth of 12 to
15 percent for 2016, which is among the highest for large-cap, diversified
MLPs," Heminger said, also noting that MPLX expects to provide 2017 distribution
growth guidance later this year.
MPC is focused on strengthening the earnings power of all aspects of its
business, with expanded, margin-enhancing investments across the enterprise. MPC
recently announced plans to invest $2 billion in the Galveston Bay refinery over
the next five years, an investment program collectively referred to as the South
Texas Asset Repositioning (STAR) program. "The investments planned as part of
the STAR program are intended to increase production of higher-value products
and improve the facility's reliability, as well as increase processing capacity.
These high-return investments will also fully integrate our Galveston Bay
refinery with our Texas City refinery, making it the second-largest refinery in
the U.S.," said Heminger. "We expect a rapid payback on the staged investments
planned for the STAR program."
Heminger stated that MPC's investments in the business are balanced with
returning capital to shareholders. Through share buyback programs and dividends,
MPC returned a total of $1.6 billion of capital to shareholders in 2015,
including $362 million during the fourth quarter. "Returning capital to our
shareholders continues to be an instrumental part of our strategy," he said,
noting that MPC has repurchased approximately 28 percent of the shares that were
outstanding when it became a standalone company. "Through disciplined, strategic
investments in our business and returning capital to shareholders, we remain
focused on the long-term value proposition for our investors."
"By optimizing our logistics and transportation network, and using the
flexibility inherent in our refining system, we continue to meet market needs
quickly and efficiently as margin opportunities present themselves," said
Heminger. "As our earnings demonstrate, our business produces strong results in
a wide variety of market conditions."
Segment Results
Following the merger of MPLX and MarkWest, the name of MPC's Pipeline
Transportation segment, which includes the operations of MPLX, was changed to
Midstream to reflect its expanded business activities. The results of MarkWest
are included from the Dec. 4, 2015, merger date.
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions) 2015 2014 2015 2014
--------- ----------- ----------------------
Income from Operations by Segment
Refining & Marketing $ 207 $ 1,016 $ 4,186 $ 3,609
Speedway 135 273 673 544
Midstream 71 58 289 280
Items not allocated to segments:
Corporate and other unallocated
items (75 ) (82 ) (308 ) (286 )
Pension settlement expenses - (6 ) (4 ) (96 )
Impairment - cancellation of
ROUX project - - (144 ) -
--------- ----------- ----------- ----------
Income from operations $ 338 $ 1,259 $ 4,692 $ 4,051
--------- ----------- ----------------------
Fourth-quarter and full-year 2015 segment results include a non-cash charge of
$370 million to value inventory at lower of cost or market. The charge reduced
our Refining & Marketing segment and Speedway segment results by $345 million
and $25 million, respectively. MPC assesses its inventory quarterly for a
potential LCM adjustment. Based on movements of refined product prices, future
adjustments could have a positive or negative effect to MPC's segment results
and earnings.
Refining & Marketing
Refining & Marketing segment income from operations was $207 million in the
fourth quarter of 2015 and $4.19 billion for full-year 2015, compared with $1.02
billion and $3.61 billion in the fourth quarter of 2014 and full-year 2014,
respectively.
The decrease in quarter-over-quarter results was primarily due to the effects of
the $345 million LCM charge and a last-in, first-out (LIFO) inventory accounting
charge of approximately $45 million in the fourth quarter of 2015 compared to a
LIFO benefit of approximately $240 million in the fourth quarter of 2014. In
addition, segment results were negatively impacted by the effect of lower
overall commodity prices on volumetric gains and unfavorable crude oil and
feedstock acquisition costs relative to benchmark Light Louisiana Sweet (LLS)
crude oil. These negative impacts were partially offset by higher crack spreads
and the favorable effects of changes in market structure on crude oil
acquisition prices.
The U.S. Gulf Coast (USGC) and Chicago LLS blended 6-3-2-1 crack spread
increased from $5.43 per barrel in the fourth quarter of 2014 to $6.65 per
barrel in the fourth quarter of 2015, primarily due to an increase in the USGC
crack spread.
The increase in Refining & Marketing segment income from operations for full-
year 2015 compared to full-year 2014 was primarily due to higher crack spreads,
favorable effects of changes in market structure on crude oil acquisition
prices, more favorable net product price realizations compared to spot market
reference prices and lower direct operating costs. These positive impacts were
partially offset by unfavorable crude oil and feedstock acquisition costs
relative to benchmark LLS crude oil, the unfavorable effect of lower commodity
prices on volumetric gains and the LCM inventory valuation charge.
The blended 6-3-2-1 crack spread for the full year increased from $8.11 per
barrel in 2014 to $9.70 per barrel in 2015.
Speedway
Speedway segment income from operations was $135 million in the fourth quarter
of 2015 and $673 million for full-year 2015, compared with $273 million in the
fourth quarter of 2014 and $544 million for full-year 2014. The decrease in
segment income for the fourth quarter is primarily due to a lower light product
gross margin, a $25 million non-cash LCM charge and an increase in operating
expenses, partially offset by an increase in merchandise margin. Speedway's
light product margin decreased to 18.23 cents per gallon in the fourth quarter
of 2015 from 24.51 cents per gallon in the fourth quarter of 2014, which was a
record quarter.
The increase for the full-year 2015 was primarily due to the full-year benefit
from the locations acquired along the East Coast and Southeast on Sept.
30, 2014, as well as higher light product margins. Speedway's light product
margin increased to 18.23 cents per gallon in 2015 from 17.75 cents per gallon
in 2014.
Midstream
Midstream segment income from operations, which includes 100 percent of MPLX's
operations as well as other related operations, was $71 million in the fourth
quarter of 2015 and $289 million for full-year 2015, compared with $58 million
and $280 million for the fourth quarter and full-year 2014, respectively. The
increase in Midstream segment income for the fourth quarter and full-year of
2015 compared to 2014 was primarily due to the inclusion of MarkWest from the
Dec. 4, 2015, merger date, partially offset by approximately $26 million and $30
million of merger transaction costs for the fourth-quarter and full-year 2015,
respectively.
Items Not Allocated to Segments
Corporate and other unallocated expenses of $75 million in the fourth quarter of
2015 and $308 million for full-year 2015 were $7 million lower than the fourth
quarter of 2014 and $22 million higher than full-year 2014. The reduction for
the fourth quarter was primarily due to various lower corporate expenses while
the increase for the full year is largely due to a lower allocation of employee
benefit costs to the segments.
For full-year 2015, MPC recorded pretax pension settlement expenses of $4
million compared with $96 million of pretax pension settlement expenses in 2014.
Full-year 2015 unallocated expenses also included the $144 million impairment
charge recorded in the third quarter of 2015 related to the cancellation of the
ROUX project at our refinery in Garyville, La. The charge reflects the write-off
of costs capitalized on the project through Sept. 30, 2015, including front-end
engineering and long lead-time equipment.
Strong Financial Position and Liquidity
On Dec. 31, 2015, the company had $1.1 billion in cash and cash equivalents, an
unused $2.5 billion revolving credit agreement and a $0.7 billion unused trade
receivables securitization facility. Availability under the trade receivables
securitization facility is a function of refined product selling prices, which
will be lower in a sustained lower price environment. The company's liquidity
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.
On Dec. 14, 2015, we completed a public offering of $1.5 billion in aggregate
principal amount of unsecured senior notes. On Dec. 21, we used approximately
$763 million of the net proceeds from this offering to fund the extinguishment
of our obligation for the $750 million aggregate principal amount of 3.5 percent
senior notes due in March of 2016, including remaining interest to maturity. As
a result, we recorded a loss on extinguishment of debt of $5 million, which is
reflected in net interest and other financial income (costs).
Conference Call
At 10 a.m. EST today, MPC will hold a conference call and webcast to discuss the
reported results and provide an update on company operations. Interested parties
may listen to the conference call by dialing 1-800-446-1671 (confirmation
#41539370) or by visiting MPC's website at http://www.marathonpetroleum.com and
clicking on the "2015 Fourth-Quarter Financial Results" link. Replays of the
conference call will be available on the company's website through Wednesday,
Feb. 17. Financial information, including the earnings release and other
investor-related material, will also be available online prior to the conference
call and webcast 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 1.8 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,600
independently owned retail outlets across 19 states. In addition, Speedway LLC,
an MPC subsidiary, owns and operates the nation's second-largest convenience
store chain, with approximately 2,770 convenience stores in 22 states. MPC owns,
leases or has ownership interests in approximately 8,300 miles of crude and
light product pipelines and 5,000 miles of gas gathering and natural gas liquids
(NGL) pipelines. MPC also has ownership interests in more than 50 gas processing
plants, more than 10 NGL fractionation facilities and a condensate stabilization
facility. 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, NGLs, feedstocks and petroleum-
related products efficiently through the company's distribution network and
midstream service businesses in the Midwest, Northeast, Southeast and Gulf Coast
regions.
Investor Relations Contacts:
Lisa Wilson (419) 421-2071
Teresa Homan (419) 421-2965
Media Contacts:
Chuck Rice (419) 421-2521
Brandon Daniels (419) 421-3127
References to Earnings
References to earnings mean net income attributable to MPC from the statements
of income. Unless otherwise indicated, references to earnings and earnings per
share are MPC's share after excluding amounts attributable to noncontrolling
interests.
Forward-looking Statements
This press release 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 things, expectations, estimates and
projections concerning the business and operations of MPC, MPLX, and MarkWest.
You can identify forward-looking statements by words such as "anticipate,"
"believe," "design," "estimate," "objective," "expect," "forecast," "goal,"
"guidance," "imply," "intend," "objective," "opportunity," "outlook," "plan,"
"position," "potential," "predict," "project," "seek," "target," "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 implied in the forward-looking statements include: risks described
below relating to MPLX, MarkWest and the MPLX/MarkWest merger transaction;
changes to the expected construction costs and timing of pipeline projects;
continued/further 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; the effects of the 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; MPC's
ability to successfully implement growth opportunities; modifications to MPLX
earnings and distribution growth objectives; federal and state environmental,
economic, health and safety, energy and other policies and regulations,
including the cost of compliance with the Renewable Fuel Standard; MPC's ability
to successfully integrate the acquired Hess retail operations and achieve the
strategic and other expected objectives relating to the acquisition; changes to
MPC's capital budget; 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 Dec. 31, 2014, filed with Securities and Exchange
Commission (SEC). Factors that could cause MPLX's actual results to differ
materially from those implied in the forward-looking statements include:
negative capital market conditions, including a persistence or increase of the
current yield on common units, which is higher than historical yields, adversely
affecting MPLX's ability to meet its distribution growth guidance; risk that the
synergies from the MPLX/MarkWest merger transaction may not be fully realized or
may take longer to realize than expected; disruption from the MPLX/MarkWest
merger transaction making it more difficult to maintain relationships with
customers, employees or suppliers; risks relating to any unforeseen liabilities
of MarkWest; the adequacy of MPLX's respective capital resources and liquidity,
including, but not limited to, availability of sufficient cash flow to pay
MPLX's distributions, and the ability to successfully execute their business
plans and growth strategies; 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 midstream infrastructure 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 MPLX's commercial agreements; modifications to earnings
and distribution growth objectives; the level of support from MPC, including
dropdowns, alternative financing arrangements, taking equity units, and other
methods of sponsor support, as a result of the capital allocation needs of the
enterprise as a whole and its ability to provide support on commercially
reasonable terms; federal and state environmental, economic, health and safety,
energy and other policies and regulations; changes to MPLX's capital budget;
other risk factors inherent to MPLX or MarkWest'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 Dec. 31, 2014, filed with the SEC; and the factors set forth
under the heading "Risk Factors" in MarkWest's Annual Report on Form 10-K for
the year ended Dec. 31, 2014, and Quarterly Report on Form 10-Q for the quarter
ended Sept. 30, 2015, filed with the SEC (former ticker symbol: MWE). These
risks, as well as other risks associated with MPLX, MarkWest and the merger
transaction, are also more fully discussed in the joint proxy statement and
prospectus included in the registration statement on Form S-4 filed by MPLX and
declared effective by the SEC on Oct. 29, 2015, as supplemented. 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, in MPLX's Form 10-K, or
in MarkWest's Form 10-K and Form 10-Qs 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. Copies of MPLX's Form 10-K are available on the
SEC website, MPLX's website at http://ir.mplx.com or by contacting MPLX's
Investor Relations office. Copies of MarkWest's Form 10-K and Form 10-Qs are
available on the SEC website (former ticker symbol: MWE), MarkWest's website at
http://investor.markwest.com or by contacting MPLX's Investor Relations office.
Consolidated Statements of Income (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions, except per- 2015((a)) 2014 2015((a)) 2014
share data)
------------- ------------ ------------- -----------
Revenues and other income:
Sales and other
operating revenues
(including consumer excise
taxes) $ 15,607 $ 22,250 $ 72,051 $ 97,817
Income from equity
method investments 30 32 88 153
Net gain on disposal of
assets 1 7 7 21
Other income 41 54 112 111
------------- ------------ ------------- -----------
Total revenues and other
income 15,679 22,343 72,258 98,102
Costs and expenses:
Cost of revenues
(excludes items below) 12,008 18,199 55,583 83,770
Purchases from related
parties 89 104 308 505
Inventory market
valuation charges 370 - 370 -
Consumer excise taxes 1,933 1,949 7,692 6,685
Depreciation and
amortization 413 359 1,646 1,326
Selling, general and
administrative expenses 433 371 1,576 1,375
Other taxes 95 102 391 390
------------- ------------ ------------- -----------
Total costs and expenses 15,341 21,084 67,566 94,051
------------- ------------ ------------- -----------
Income from operations 338 1,259 4,692 4,051
Net interest and other
financial income (costs) (103 ) (72 ) (318 ) (216 )
------------- ------------ ------------- -----------
Income before income taxes 235 1,187 4,374 3,835
Provision for income
taxes 67 382 1,506 1,280
------------- ------------ ------------- -----------
Net income 168 805 2,868 2,555
Less net income (loss)
attributable to
noncontrolling interests (19 ) 7 16 31
------------- ------------ ------------- -----------
Net income attributable to
MPC $ 187 $ 798 $ 2,852 $ 2,524
------------- ------------ ------------- -----------
Per-share data
Basic:
Net income attributable
to MPC per share $ 0.35 $ 1.44 $ 5.29 $ 4.42
Weighted average
shares:((b)) 531 554 538 570
Diluted:
Net income attributable
to MPC per share $ 0.35 $ 1.43 $ 5.26 $ 4.39
Weighted average
shares:((b)) 535 558 542 574
Dividends paid $ 0.32 $ 0.25 $ 1.14 $ 0.92
((a) )Includes the results of MarkWest from the Dec. 4, 2015, merger
date.
((b) )The number of weighted average shares for the periods ended Dec.
31, 2015, and 2014, reflects the impact of our share repurchases.
Supplemental Statistics (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions) 2015 2014 2015 2014
------------ ----------- ------------ ----------
Income from Operations by
segment
Refining & Marketing((a)) $ 207 $ 1,016 $ 4,186 $ 3,609
Speedway((a)) 135 273 673 544
Midstream((b)(c)) 71 58 289 280
Items not allocated to
segments:
Corporate and other
unallocated items (75 ) (82 ) (308 ) (286 )
Pension settlement expenses - (6 ) (4 ) (96 )
Impairment((d)) - - (144 ) -
------------ ----------- ------------ ----------
Income from operations((a)) 338 1,259 4,692 4,051
Net interest and other
financial income (costs)((c)) (103 ) (72 ) (318 ) (216 )
------------ ----------- ------------ ----------
Income before income taxes 235 1,187 4,374 3,835
Provision for income taxes 67 382 1,506 1,280
------------ ----------- ------------ ----------
Net income 168 805 2,868 2,555
Less net income (loss)
attributable to noncontrolling
interests (19 ) 7 16 31
------------ ----------- ------------ ----------
Net income attributable to MPC $ 187 $ 798 $ 2,852 $ 2,524
------------ ----------- ------------ ----------
Capital Expenditures and
Investments((e))
Refining & Marketing $ 409 $ 373 $ 1,143 $ 1,104
Speedway 226 198 501 2,981
Midstream 14,080 125 14,432 543
Corporate and Other((f)) 71 30 192 110
------------ ----------- ------------ ----------
Total $ 14,786 $ 726 $ 16,268 $ 4,738
------------ ----------- ------------ ----------
((a) )Includes non-cash LCM inventory valuation charge of $370 million,
which reduced Refining & Marketing and Speedway segment income by $345 million
and $25 million, respectively for the fourth-quarter and full-year 2015.
((b) )Includes the results of MarkWest from the Dec. 4, 2015, merger
date.
((c) )The three months and year ended Dec. 31, 2015, includes transaction
costs of $32 million and $36 million, respectively, related to the MarkWest
merger. The Midstream segment results for the three months and year ended Dec.
31, 2015, reflect $26 million and $30 million of these costs, respectively. The
remaining $6 million is included in net interest and other financial income
(costs) in both periods.
((d) )Reflects an impairment charge resulting from the cancellation of
the ROUX project in the third quarter 2015.
((e) )The three months and year ended Dec. 31, 2015, includes $13.84
billion for the MarkWest merger. The three months and year ended Dec. 31, 2014,
includes $31 million and $2.71 billion, respectively, for the acquisition of
Hess' retail operations and related assets.
((f) )Includes capitalized interest.
Supplementary Statistics (Unaudited) (continued)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
----------- ----------- ----------- ----------
MPC Consolidated Refined Product
Sales Volumes (thousands of
barrels per day (mbpd)((a)) 2,257 2,275 2,301 2,138
Refining & Marketing (R&M)
Operating Statistics
R&M refined product sales volume
(mbpd)((b)) 2,248 2,263 2,289 2,125
R&M gross margin (dollars per
barrel)((c)(d)) $ 12.70 $ 15.12 $ 15.25 $ 15.05
Crude oil capacity utilization
(percent)((e)) 95 96 99 95
Refinery throughputs
(mbpd):((f))
Crude oil refined 1,638 1,643 1,711 1,622
Other charge and blendstocks 201 217 177 184
----------- ----------- ----------- ----------
Total 1,839 1,860 1,888 1,806
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 55 51 55 52
WTI-priced crude oil throughput
(percent) 20 22 20 19
Refined product yields
(mbpd):((f))
Gasoline 934 921 913 869
Distillates 615 599 603 580
Propane 35 32 36 35
Feedstocks and special
products 204 265 281 276
Heavy fuel oil 34 21 31 25
Asphalt 49 58 55 54
----------- ----------- ----------- ----------
Total 1,871 1,896 1,919 1,839
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 1.71 $ 1.77 $ 1.13 $ 1.80
Depreciation and amortization 1.43 1.37 1.39 1.41
Other manufacturing((h)) 4.25 4.52 4.15 4.86
----------- ----------- ----------- ----------
Total $ 7.39 $ 7.66 $ 6.67 $ 8.07
----------- ----------- ----------- ----------
R&M Operating Statistics by
Region - Gulf Coast
Refinery throughputs
(mbpd):((i))
Crude oil refined 1,043 996 1,060 991
Other charge and blendstocks 206 205 184 182
----------- ----------- ----------- ----------
Total 1,249 1,201 1,244 1,173
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 69 64 68 64
WTI-priced crude oil throughput
(percent) 4 5 6 3
Refined product yields
(mbpd):((i))
Gasoline 557 539 534 508
Distillates 408 376 392 368
Propane 26 20 26 23
Feedstocks and special
products 247 272 286 274
Heavy fuel oil 19 12 15 13
Asphalt 18 11 16 13
----------- ----------- ----------- ----------
Total 1,275 1,230 1,269 1,199
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 1.12 $ 1.98 $ 0.81 $ 1.82
Depreciation and amortization 1.08 1.11 1.09 1.15
Other manufacturing((h)) 3.78 4.37 3.88 4.73
----------- ----------- ----------- ----------
Total $ 5.98 $ 7.46 $ 5.78 $ 7.70
----------- ----------- ----------- ----------
Supplementary Statistics (Unaudited) (continued)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
------------- ------------ ------------- ------------
R&M Operating Statistics
by Region - Midwest
Refinery throughputs
(mbpd):((i))
Crude oil refined 595 647 651 631
Other charge and
blendstocks 56 48 39 45
------------- ------------ ------------- ------------
Total 651 695 690 676
------------- ------------ ------------- ------------
Sour crude oil throughput
(percent) 31 32 34 33
WTI-priced crude oil
throughput (percent) 48 48 43 44
Refined product yields
(mbpd):((i))
Gasoline 377 382 379 361
Distillates 207 223 211 212
Propane 11 13 12 13
Feedstocks and special
products 15 27 38 43
Heavy fuel oil 16 10 17 13
Asphalt 31 47 39 41
------------- ------------ ------------- ------------
Total 657 702 696 683
------------- ------------ ------------- ------------
Refinery direct operating
costs ($/barrel):((g))
Planned turnaround and
major maintenance $ 2.69 $ 1.30 $ 1.64 $ 1.66
Depreciation and
amortization 1.97 1.73 1.83 1.78
Other
manufacturing((h)) 4.72 4.59 4.36 4.76
------------- ------------ ------------- ------------
Total $ 9.38 $ 7.62 $ 7.83 $ 8.20
------------- ------------ ------------- ------------
Speedway Operating
Statistics((j))
Convenience stores at
period-end 2,766 2,746
Gasoline and distillate
sales (millions of
gallons) 1,537 1,521 6,038 3,942
Gasoline and distillate
gross margin (dollars per
gallon)((d)(k)) $ 0.1823 $ 0.2451 $ 0.1823 $ 0.1775
Merchandise sales (in
millions) $ 1,210 $ 1,189 $ 4,879 $ 3,611
Merchandise gross margin
(in millions) $ 340 $ 324 $ 1,368 $ 975
Merchandise gross margin
percent 28.0 % 27.2 % 28.0 % 27.0 %
Same store gasoline sales
volume (period over
period) (0.3 )% 0.3 % (0.3 )% (0.7 )%
Same store merchandise
sales (period over
period)((l)) 2.7 % 5.4 % 4.1 % 5.0 %
Supplementary Statistics (Unaudited) (continued)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
----------- ----------- ----------- ----------
Midstream Operating Statistics
Crude oil and refined product
pipeline throughputs (mbpd)((m)) 2,071 2,215 2,191 2,119
Gathering system throughput
(million cubic feet per
day)((n)) 3,075 3,075
Natural gas processed (million
cubic feet per day)((n)) 5,468 5,468
C2 (ethane) + NGLs (natural gas
liquids) fractionated
(mbpd)((n)) 307 307
((a)) Total average daily volumes of refined product sales to wholesale,
branded and retail (Speedway segment) customers.
((b)) Includes intersegment sales.
((c)) Sales revenue less cost of refinery inputs and purchased products,
divided by total refinery throughputs.
((d) )Excludes the LCM inventory valuation charge of $345 million for
R&M and $25 million for Speedway for fourth-quarter and full-year 2015.
((e)) Based on calendar day capacity, which is an annual average that
includes downtime for planned maintenance and other normal operating activities.
((f)) Excludes inter-refinery volumes of 61 mbpd and 36 mbpd for fourth
quarter 2015 and 2014, respectively, and 46 mbpd and 43 mbpd for the full-year
2015 and 2014, respectively.
((g)) Per barrel of total refinery throughputs.
((h)) Includes utilities, labor, routine maintenance and other operating
costs.
((i)) Includes inter-refinery transfer volumes.
((j) )Includes the results of Hess' retail operations and related
assets beginning on the Sept. 30, 2014, acquisition date.
((k)) 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 volumes.
((l)) Excludes cigarettes. Same store comparison includes only locations
owned at least 13 months.
((m)) On owned common-carrier pipelines, excluding equity method
investments.
((n) )Includes amounts related to unconsolidated equity method
investments. Includes the MarkWest results beginning on the Dec. 4, 2015, merger
date.
Segment Earnings Before Interest, Taxes, Depreciation & Amortization (Segment
EBITDA) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions) 2015 2014 2015 2014
---------- ----------- ------------ -----------
Segment EBITDA((a))
Refining & Marketing((b)) $ 482 $ 1,279 $ 5,265 $ 4,654
Speedway((b)) 201 335 927 696
Midstream 129 77 406 357
---------- ----------- ------------ -----------
Total Segment EBITDA((a)(b)) 812 1,691 6,598 5,707
Total segment depreciation &
amortization (399 ) (344 ) (1,450 ) (1,274 )
Items not allocated to segments (75 ) (88 ) (456 ) (382 )
---------- ----------- ------------ -----------
Income from operations 338 1,259 4,692 4,051
Net interest and other
financial income (costs) (103 ) (72 ) (318 ) (216 )
---------- ----------- ------------ -----------
Income before income taxes 235 1,187 4,374 3,835
Income tax provision 67 382 1,506 1,280
---------- ----------- ------------ -----------
Net income 168 805 2,868 2,555
Less: Net income (loss)
attributable to noncontrolling
interests (19 ) 7 16 31
---------- ----------- ------------ -----------
Net income attributable to MPC $ 187 $ 798 $ 2,852 $ 2,524
---------- ----------- ------------ -----------
((a) )Segment EBITDA represents segment earnings before interest and
financing costs, interest income, income taxes, 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.
((b) )Includes non-cash LCM inventory valuation charge of $370 million,
which reduced Refining & Marketing and Speedway EBITDA by $345 million and $25
million, respectively for the fourth-quarter and full-year 2015.
Select Financial Data (Unaudited)
December September
31, 2015 30
(Dollars in millions) 2015
--------------- -----------
Cash and cash equivalents $ 1,127 $ 2,044
Total debt((a)) 11,925 6,692
Equity 19,678 12,925
Debt-to-total-capital ratio (percent) 38 34
Shares outstanding (millions) 531 534
Cash provided from operations (quarter ended) $ 808 $ 1,069
((a)) Includes long-term debt due within one year.
MPC 4Q2015 Financial Results:
http://hugin.info/147922/R/1983232/726851.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1983232]
Unternehmensinformation / Kurzprofil:
Datum: 03.02.2016 - 12:39 Uhr
Sprache: Deutsch
News-ID 448428
Anzahl Zeichen: 49830
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
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"Marathon Petroleum Corporation Reports Fourth-Quarter and Full-Year 2015 Results"
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