Marathon Petroleum Corporation Reports Second-Quarter 2016 Results
(Thomson Reuters ONE) -
* Reported second-quarter earnings of $801 million, or $1.51 per diluted
share, including a net benefit of $0.44 per diluted share primarily related
to reversal of the company's lower of cost or market inventory valuation
reserve
* Achieved record second-quarter segment income at Speedway
* Increased quarterly dividend by 12.5 percent, to $0.36 per share
FINDLAY, Ohio, July 28, 2016 - Marathon Petroleum Corporation (NYSE: MPC) today
reported 2016 second-quarter earnings of $801 million, or $1.51 per diluted
share, compared with $826 million, or $1.51 per diluted share, in the second
quarter of 2015. Second-quarter 2016 earnings include a benefit of $0.47 per
diluted share related to the reversal of the company's lower of cost or market
(LCM) inventory valuation reserve due to increased refined product prices during
the quarter. Earnings also include a charge of $0.03 per diluted share related
to an impairment of an equity method investment held by MPC's sponsored master
limited partnership, MPLX LP (NYSE: MPLX).
"All segments of the business performed well in the second quarter," said Gary
R. Heminger, MPC chairman, president and chief executive officer. "Earnings
benefited from improving crack spreads, robust product demand entering the
summer driving and asphalt season, strong retail margins, and the inclusion of
MarkWest in our consolidated results. The efficiency and flexibility of our
integrated retail, logistics and refining system drives the diversified earnings
power of the business, and we remain confident in our ability to deliver long-
term value for our shareholders."
Speedway continued its outstanding performance with second-quarter segment
income of $193 million. Even before the LCM adjustment discussed below,
Speedway's segment income set a second-quarter record. In addition to higher
light-product sales volumes and margins, the business delivered higher
merchandise margins in the quarter. This improvement is consistent with its
strategy to drive marketing enhancement opportunities. "We are pleased with our
progress to realize synergies across the Speedway network earlier than
originally planned and believe this will be a continuing source of value to the
business," Heminger said.
Speedway provides significant and growing stable cash flow, complementing MPC's
integrated refining and distribution network. "Speedway is MPC's most ratable
distribution channel, provides a solid base to enhance overall supply
reliability and allows us to optimize our entire refining, pipeline and terminal
operations," Heminger said.
The midstream segment contributed $201 million of segment income in the second
quarter. MPLX, which is reported in MPC's midstream segment, delivered solid
results during the quarter and remains on target to achieve its 2016
distribution growth guidance without the need for additional dropdowns from MPC
during the year. MPLX expanded its midstream presence in the Southwest with the
completion of its Hidalgo gas processing complex in the Delaware Basin, where
utilization is exceeding initial expectations. Construction of the Cornerstone
Pipeline is also progressing as planned, with completion expected in the fourth
quarter. The Cornerstone Pipeline is designed to provide MPC's Canton, Ohio,
refinery with a direct supply of condensate out of the Marcellus and Utica
regions and to supply natural gasoline to MPC's Midwest refineries.
"As commodity prices recover, optimism is growing among MPLX's producer
customers, and with world-class midstream assets located in some of the best
resource plays in the country, the partnership is well-positioned to capitalize
on an exceptional set of opportunities along the entire hydrocarbon value
chain," Heminger said.
The refining and marketing segment delivered strong results despite less
favorable operating and market conditions during the quarter. "Our integrated
seven-refinery and extensive logistics network allows us to capture advantaged
feedstock and other raw materials, as well as enhanced price realizations
through our refined product distribution system," Heminger said. "Our unique
asset mix and flexibility position us to optimize operations even during
disruptions such as those caused in the second quarter by the Canadian wildfires
and refinery outages."
During the second quarter, the company returned $221 million to shareholders
through dividends and share repurchases. In addition, on July 27, the MPC board
of directors announced a 12.5 percent increase in the quarterly dividend, to
$0.36 per share. "The 29 percent compound annual growth rate in our dividend
since MPC became an independent company demonstrates our continuing confidence
in the cash-flow generation of the business. It also demonstrates our long-term
focus on capital returns while maintaining an investment-grade credit profile
and strong liquidity through the refining cycle," Heminger said.
"We remain encouraged by the long-term prospects of this business and the value
proposition for our investors," Heminger said.
Segment Results
Total income from operations was $1.32 billion in the second quarter of 2016,
compared with $1.34 billion in the second quarter of 2015.
Three Months Ended
June 30
(In millions) 2016 2015
----------- ----------
Income from Operations by Segment
Refining & Marketing((a)) $ 1,080 $ 1,181
Speedway 193 127
Midstream((a)) 201 103
Items not allocated to segments:
Corporate and other unallocated items((a)) (67 ) (75 )
Pension settlement expenses (2 ) (1 )
Impairments (90 ) -
----------- ----------
Income from operations $ 1,315 $ 1,335
----------- ----------
(a) In 2016, segment reporting was revised in connection with the
contribution of MPC's inland marine business to MPLX. The results of the inland
marine business are now presented in the Midstream segment. Previously, these
results were reported in the Refining & Marketing segment. Comparable prior
period information has been recast to reflect this revised segment presentation.
Refining & Marketing
Refining & Marketing segment income from operations was $1.08 billion in the
quarter, compared with $1.18 billion in the same quarter of 2015. The second-
quarter 2016 results include a $360 million non-cash benefit related to the
reversal of the company's LCM reserve. Excluding the LCM benefit, the decrease
in quarter-over-quarter results was mainly the result of lower crack spreads,
primarily in the Gulf Coast. The Chicago and Gulf Coast Light Louisiana Sweet
6-3-2-1 blended crack spread decreased from $10.24 per barrel in the second
quarter of 2015 to $7.66 per barrel in the second quarter of 2016.
Speedway
Speedway segment income from operations was $193 million in the second quarter
of 2016, compared with $127 million in the second quarter of 2015. The second-
quarter 2016 results include a $25 million non-cash benefit related to the
reversal of the company's LCM reserve. Excluding the LCM benefit, the increase
in segment income was primarily due to higher light product and merchandise
margins. Speedway's light product margin increased to 15.49 cents per gallon in
the second quarter of 2016 from 13.51 cents per gallon in the second quarter of
2015.
Midstream
Midstream segment income from operations, which includes MPLX as well as other
related operations, was $201 million in the second quarter of 2016, compared
with $103 million for the second quarter of 2015. The increase was primarily due
to the inclusion of MarkWest's operating results following the merger with MPLX
on Dec. 4, 2015, as well as the earnings from new and existing pipeline and
marine equity investments. Midstream segment results exclude the impairment
charge discussed below.
Items Not Allocated to Segments
Corporate and other unallocated expenses of $67 million in the second quarter of
2016 were $8 million lower than the second quarter of 2015 largely due to a
reduction in employee benefit expenses.
Impairments not allocated to segments totaled $90 million, of which $89 million
related to an equity method investment held by MPLX, our consolidated
subsidiary.
Strong Financial Position and Liquidity
On June 30, 2016, the company had $1.8 billion of cash and cash equivalents,
$2.5 billion available under a revolving credit agreement and approximately $758
million available under its $1 billion trade receivables securitization
facility.
On July 20, 2016, we extended our trade receivables securitization facility for
a new three-year term and reduced the capacity from $1 billion to $750 million
to reflect the lower refined-product price environment. We also replaced our
existing bank revolving credit facility with a four-year $2.5 billion bank
revolving credit facility and a 364-day $1 billion bank revolving credit
facility.
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.
Conference Call
At 9 a.m. EDT today, MPC will hold a webcast and conference call to discuss the
reported results and provide an update on company operations. Interested parties
may listen to the conference call by dialing 1-800-446-2782 (confirmation number
42834146) or by visiting MPC's website at http://www.marathonpetroleum.com by
clicking on the "2016 Second-Quarter Financial Results" link. Replays of the
conference call will be available on the company's website through Wednesday,
Aug. 10. Financial information, including the earnings release and other
investor-related materials 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 third-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 5,400 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 8,400 miles of crude and light product
pipelines and more than 5,000 miles of gas gathering and natural gas liquids
(NGL) pipelines. MPC also has ownership interests in 54 gas processing plants,
13 NGL fractionation facilities and two condensate stabilization facilities.
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, East Coast, Southeast and Gulf Coast
regions.
Investor Relations Contacts:
Lisa Wilson (419) 421-2071
Teresa Homan (419) 421-2965
Media Contacts:
Katie Merx (419) 672-5159
Chuck Rice (419) 421-2521
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") and
MPLX LP ("MPLX").These forward-looking 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," "design," "estimate," "expect," "forecast," "goal,"
"guidance," "imply," "intend," "objective," "opportunity," "outlook," "plan,"
"position," "pursue," "prospective," "predict," "project," "potential," "seek,"
"strategy," "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 and the MPLX/MarkWest
Energy Partners, L.P. ("MarkWest") merger; 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; compliance with federal and state environmental, economic, health
and safety, energy and other policies and regulations, including the cost of
compliance with the Renewable Fuel Standard, and/or enforcement actions
initiated thereunder; 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, 2015,
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 acquisition of
MarkWest by MPLX may not be fully realized or may take longer to realize than
expected; disruption from the MPLX/MarkWest merger 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 capital resources
and liquidity, including, but not limited to, availability of sufficient cash
flow to pay distributions, and the ability to successfully execute its business
plans and growth strategy; the timing and extent of changes in commodity prices
and demand for crude oil, refined products, feedstocks or other hydrocarbon-
based products; continued/further 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
drop-downs, 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; compliance with federal and state environmental, economic,
health and safety, energy and other policies and regulations and/or enforcement
actions initiated thereunder; changes to MPLX's capital budget; 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 Dec.
31, 2015, and Quarterly Report on Form 10-Q for the quarter ended March
31, 2016, 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 or Form 10-Q 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 and
Form 10-Q are available on the SEC website, MPLX's website at http://ir.mplx.com
or by contacting MPLX's Investor Relations office.
Consolidated Statements of Income (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per- 2016 2015 2016 2015
share data)
------------ ------------ ------------ -----------
Revenues and other income:
Sales and other operating
revenues (including consumer
excise taxes) $ 16,811 $ 20,537 $ 29,566 $ 37,728
Income (loss) from equity
method investments (50 ) 20 (28 ) 35
Net gain (loss) on
disposal of assets - (1 ) 25 4
Other income 29 25 57 54
------------ ------------ ------------ -----------
Total revenues and other
income 16,790 20,581 29,620 37,821
Costs and expenses:
Cost of revenues (excludes
items below) 12,830 16,366 22,531 29,410
Purchases from related
parties 124 82 231 158
Inventory market valuation
adjustment (385 ) - (370 ) -
Consumer excise taxes 1,893 1,939 3,719 3,771
Impairment expense 1 - 130 -
Depreciation and
amortization 500 362 990 725
Selling, general and
administrative expenses 401 393 779 751
Other taxes 111 104 220 201
------------ ------------ ------------ -----------
Total costs and expenses 15,475 19,246 28,230 35,016
------------ ------------ ------------ -----------
Income from operations 1,315 1,335 1,390 2,805
Net interest and other
financial income (costs) (137 ) (64 ) (279 ) (145 )
------------ ------------ ------------ -----------
Income before income taxes 1,178 1,271 1,111 2,660
Provision for income taxes 395 432 406 918
------------ ------------ ------------ -----------
Net income 783 839 705 1,742
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 9 - 9 -
Noncontrolling interests (27 ) 13 (106 ) 25
------------ ------------ ------------ -----------
Net income attributable to
MPC $ 801 $ 826 $ 802 $ 1,717
------------ ------------ ------------ -----------
Per-share data
Basic:
Net income attributable to
MPC per share $ 1.51 $ 1.52 $ 1.52 $ 3.16
Weighted average
shares:((a)) 528 541 528 543
Diluted:
Net income attributable to
MPC per share $ 1.51 $ 1.51 $ 1.51 $ 3.14
Weighted average
shares:((a)) 531 544 531 547
Dividends paid $ 0.32 $ 0.25 $ 0.64 $ 0.50
a. The number of weighted average shares for the period ended June 30, 2016,
reflects the impact of our share repurchases.
Supplemental Statistics (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
----------- ----------- ----------- ----------
Income from Operations by
segment
Refining & Marketing((a)) $ 1,080 $ 1,181 $ 1,018 $ 2,473
Speedway((a)) 193 127 360 295
Midstream((b)) 201 103 368 193
Items not allocated to
segments:
Corporate and other
unallocated items (67 ) (75 ) (134 ) (154 )
Pension settlement expenses (2 ) (1 ) (3 ) (2 )
Impairments (90 ) - (219 ) -
----------- ----------- ----------- ----------
Income from operations((a)) 1,315 1,335 1,390 2,805
Net interest and other financial
income (costs) (137 ) (64 ) (279 ) (145 )
----------- ----------- ----------- ----------
Income before income taxes 1,178 1,271 1,111 2,660
Provision for income taxes 395 432 406 918
----------- ----------- ----------- ----------
Net income 783 839 705 1,742
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 9 - 9 -
Noncontrolling interests (27 ) 13 (106 ) 25
----------- ----------- ----------- ----------
Net income attributable to MPC $ 801 $ 826 $ 802 $ 1,717
----------- ----------- ----------- ----------
Capital Expenditures and
Investments
Refining & Marketing $ 278 $ 207 $ 521 $ 430
Speedway 70 100 120 145
Midstream 403 157 753 244
Corporate and Other((c)) 36 49 77 78
----------- ----------- ----------- ----------
Total $ 787 $ 513 $ 1,471 $ 897
----------- ----------- ----------- ----------
(a) Includes non-cash LCM inventory valuation benefit of $385 million for the
second quarter 2016 and $370 million for the six months ended June 30, 2016. The
benefit increased Refining & Marketing and Speedway segment income by $360
million and $25 million, respectively, for the second quarter 2016 and $345
million and $25 million, respectively, for the six months ended June 30, 2016.
(b) Includes the results of MarkWest from the December 4, 2015 merger date.
(c) Includes capitalized interest of $15 million, $8 million, $32 million
and $16 million, respectively.
Supplementary Statistics (Unaudited) (continued)
Three Months Ended Six Months Ended
June 30 June 30
2016 2015 2016 2015
----------- ----------- ----------- ----------
MPC Consolidated Refined Product
Sales Volumes (thousands of
barrels per day (mbpd)((a)) 2,348 2,341 2,253 2,294
Refining & Marketing (R&M)
Operating Statistics
R&M refined product sales volume
(mbpd)((b)) 2,339 2,329 2,244 2,281
R&M gross margin (dollars per
barrel)((c)(d)) $ 12.82 $ 14.84 $ 11.44 $ 15.47
Crude oil capacity utilization
(percent)((e)) 96 103 93 100
Refinery throughputs
(mbpd):((f))
Crude oil refined 1,728 1,789 1,665 1,731
Other charge and blendstocks 161 162 167 171
----------- ----------- ----------- ----------
Total 1,889 1,951 1,832 1,902
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 61 55 61 55
WTI-priced crude oil throughput
(percent) 21 19 20 20
Refined product yields
(mbpd):((f))
Gasoline 919 896 909 904
Distillates 628 631 599 592
Propane 36 38 34 37
Feedstocks and special
products 249 331 241 315
Heavy fuel oil 34 28 32 29
Asphalt 60 58 53 53
----------- ----------- ----------- ----------
Total 1,926 1,982 1,868 1,930
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 1.16 $ 0.66 $ 1.77 $ 0.73
Depreciation and amortization 1.43 1.33 1.48 1.38
Other manufacturing((h)) 3.95 3.94 4.05 4.08
----------- ----------- ----------- ----------
Total $ 6.54 $ 5.93 $ 7.30 $ 6.19
----------- ----------- ----------- ----------
R&M Operating Statistics by
Region - Gulf Coast
Refinery throughputs
(mbpd):((i))
Crude oil refined 1,104 1,093 1,048 1,062
Other charge and blendstocks 195 172 206 176
----------- ----------- ----------- ----------
Total 1,299 1,265 1,254 1,238
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 74 67 74 68
WTI-priced crude oil throughput
(percent) 9 7 6 6
Refined product yields
(mbpd):((i))
Gasoline 547 511 540 517
Distillates 434 408 404 375
Propane 28 27 26 26
Feedstocks and special
products 282 320 281 314
Heavy fuel oil 23 11 21 13
Asphalt 19 14 14 14
----------- ----------- ----------- ----------
Total 1,333 1,291 1,286 1,259
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 0.98 $ 0.51 $ 1.77 $ 0.65
Depreciation and amortization 1.08 1.06 1.12 1.10
Other manufacturing((h)) 3.44 3.75 3.59 3.87
----------- ----------- ----------- ----------
Total $ 5.50 $ 5.32 $ 6.48 $ 5.62
----------- ----------- ----------- ----------
Supplementary Statistics (Unaudited) (continued)
Three Months Ended Six Months Ended
June 30 June 30
2016 2015 2016 2015
------------ ------------- ------------ ------------
R&M Operating Statistics
by Region - Midwest
Refinery throughputs
(mbpd):((i))
Crude oil refined 624 696 617 669
Other charge and
blendstocks 36 36 37 36
------------ ------------- ------------ ------------
Total 660 732 654 705
------------ ------------- ------------ ------------
Sour crude oil throughput
(percent) 38 36 39 35
WTI-priced crude oil
throughput (percent) 43 39 43 41
Refined product yields
(mbpd):((i))
Gasoline 372 385 369 387
Distillates 194 223 195 217
Propane 10 13 10 13
Feedstocks and special
products 35 54 34 39
Heavy fuel oil 11 18 11 17
Asphalt 41 44 39 39
------------ ------------- ------------ ------------
Total 663 737 658 712
------------ ------------- ------------ ------------
Refinery direct operating
costs ($/barrel):((g))
Planned turnaround and
major maintenance $ 1.38 $ 0.89 $ 1.57 $ 0.82
Depreciation and
amortization 1.98 1.72 2.01 1.78
Other manufacturing((h)) 4.53 4.00 4.44 4.24
------------ ------------- ------------ ------------
Total $ 7.89 $ 6.61 $ 8.02 $ 6.84
------------ ------------- ------------ ------------
Speedway Operating
Statistics
Convenience stores at
period-end 2,773 2,755
Gasoline and distillate
sales (millions of
gallons) 1,547 1,514 3,030 2,946
Gasoline and distillate
gross margin (dollars per
gallon)((d)(j)) $ 0.1549 $ 0.1351 $ 0.1614 $ 0.1652
Merchandise sales (in
millions) $ 1,287 $ 1,264 $ 2,439 $ 2,375
Merchandise gross margin
(in millions) $ 369 $ 359 $ 699 $ 670
Merchandise gross margin
percent 28.7 % 28.5 % 28.7 % 28.2 %
Same store gasoline sales
volume (period over
period) 0.3 % (0.2 )% 0.7 % (0.7 )%
Same store merchandise
sales (period over
period)((k)) 2.0 % 4.6 % 2.5 % 5.4 %
Midstream Operating
Statistics
Crude oil and refined
product pipeline
throughputs (mbpd)((l)) 2,279 2,326 2,230 2,217
Gathering system
throughput (million cubic
feet per day)((m)) 3,288 3,316
Natural gas processed
(million cubic feet per
day)((m)) 5,529 5,582
C2 (ethane) + NGLs
fractionated (mbpd)((m)) 322 321
(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 LCM inventory valuation adjustments.
(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 70 mbpd and 46 mbpd for second
quarter 2016 and 2015, respectively, and 76 mbpd and 41 mbpd for the six months
ended June 30, 2016, and June 30, 2015, 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) 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.
(k) Excludes cigarettes. Same store sales comparison includes only locations
owned at least 13 months.
(l) On owned common-carrier pipelines, excluding equity method investments.
(m) 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 Six Months Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
----------- ----------- ----------- ----------
Segment EBITDA((a))
Refining & Marketing((b)) $ 1,350 $ 1,442 $ 1,561 $ 2,995
Speedway((b)) 262 189 492 420
Midstream((c)) 345 129 652 245
----------- ----------- ----------- ----------
Total Segment EBITDA((a)(b)) 1,957 1,760 2,705 3,660
Total segment depreciation &
amortization (483 ) (349 ) (959 ) (699 )
Items not allocated to
segments((d)) (159 ) (76 ) (356 ) (156 )
----------- ----------- ----------- ----------
Income from operations 1,315 1,335 1,390 2,805
Net interest and other financial
income (costs) (137 ) (64 ) (279 ) (145 )
----------- ----------- ----------- ----------
Income before income taxes 1,178 1,271 1,111 2,660
Income tax provision 395 432 406 918
----------- ----------- ----------- ----------
Net income 783 839 705 1,742
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 9 - 9 -
Noncontrolling interests (27 ) 13 (106 ) 25
----------- ----------- ----------- ----------
Net income attributable to MPC $ 801 $ 826 $ 802 $ 1,717
----------- ----------- ----------- ----------
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.
b. Includes non-cash LCM inventory valuation benefit of $385 million for the
second quarter 2016 and $370 million for the six months ended June
30, 2016. The benefit increased Refining & Marketing and Speedway segment
EBITDA by $360 million and $25 million, respectively, for the second quarter
2016 and $345 million and $25 million, respectively, for the six months
ended June 30, 2016.
c. Includes the results of MarkWest from the December 4, 2015 merger date.
d. Includes impairment charges of $90 million and $219 million recorded by MPLX
in the second quarter of 2016 and the first six months of 2016,
respectively.
Select Financial Data (Unaudited)
June 30 March 31
(Dollars in millions) 2016 2016
------------ -----------
Cash and cash equivalents $ 1,754 $ 308
MPLX debt 4,401 4,716
Total consolidated debt 11,059 11,566
Equity 19,935 19,494
Debt-to-total-capital ratio (percent) 36 37
Debt to LTM pro forma adjusted EBITDA((a)) 2.0x 1.9x
Shares outstanding (millions) 528 530
Cash provided from operations (quarter ended) $ 2,263 $ 327
(a) Calculated using face value of total debt and pro forma adjusted
EBITDA, which is pro forma for the MarkWest acquisition. See reconciliation
below for pro forma adjusted EBITDA to pro forma net income attributable to MPC.
Adjusted EBITDA represents earnings before interest and financing costs,
interest income, income taxes, depreciation and amortization, impairment expense
and inventory market valuation adjustments. Adjusted EBITDA is used by some
investors and analysts to analyze and compare companies on the basis of
operating performance and also serves as the basis for a cash bonus metric for
eligible employees. Adjusted 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.
Adjusted EBITDA may not be comparable to similarly titled measures used by other
entities.
Pro forma Adjusted EBITDA Reconciliation to Pro forma Net Income Attributable to
MPC (Unaudited)
Twelve Months Ended
----------------------
June 30 March 31
(In millions) 2016 2016
----------- ----------
Pro forma net income attributable to MPC((a)) $ 1,970 $ 1,955
Less: Net interest and other financial income (costs) (549 ) (654 )
Add: Net income (loss) attributable to noncontrolling
interests (60 ) (72 )
Provision for income taxes 1,039 1,069
Depreciation and amortization 1,985 1,969
Impairment expense((b)) 363 273
Inventory market valuation adjustment - 385
----------- ----------
Pro forma adjusted EBITDA $ 5,846 $ 6,233
----------- ----------
(a) Pro forma for MarkWest acquisition
(b) Includes impairment charges of $90 million, $129 million and $144 million
recorded in the second quarter of 2016, the first quarter of 2016 and the third
quarter of 2015, respectively.
MPC Q2 2016 Earnings Release FINAL:
http://hugin.info/147922/R/2031293/755847.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#2031293]
Unternehmensinformation / Kurzprofil:
Datum: 28.07.2016 - 12:36 Uhr
Sprache: Deutsch
News-ID 486073
Anzahl Zeichen: 47272
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
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"Marathon Petroleum Corporation Reports Second-Quarter 2016 Results"
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