Marathon Petroleum Corporation Reports Third-Quarter 2016 Results
(Thomson Reuters ONE) -
* Reported third-quarter earnings of $145 million, or $0.27 per diluted share
* Results include a $267 million impairment charge (or $0.31 per diluted
share) related to the Sandpiper Pipeline project
* Announced strategic initiatives to enhance shareholder value
FINDLAY, Ohio, Oct. 27, 2016 - Marathon Petroleum Corporation (NYSE: MPC) today
reported 2016 third-quarter earnings of $145 million, or $0.27 per diluted
share, compared with $948 million, or $1.76 per diluted share, a year ago.
Third-quarter 2016 earnings include a $267 million impairment charge, or $0.31
per diluted share, to impair MPC's investment in the Sandpiper Pipeline project
due to the withdrawal of regulatory applications for the project.
"MPC continues to benefit from the diversified nature of its business," said
Gary R. Heminger, MPC chairman, president and chief executive officer. "Our
Speedway and midstream businesses contributed more than $450 million of combined
segment income in the third quarter, demonstrating the importance of this stable
earnings base to our results."
Consistent with its long-term focus on value creation, in a separate release
this morning, MPC announced several strategic actions to enhance shareholder
value, primarily focused on its portfolio of high-quality midstream assets. The
strategic initiatives include an aggressive dropdown strategy to support
increased limited and general partner distributions from MPLX LP (NYSE: MPLX),
the master limited partnership sponsored by MPC, and to create value for
investors. MPC will also evaluate other opportunities to highlight and capture
the value in its general partner interest in MPLX and optimize the cost of
capital for the partnership. In addition, MPC plans to review changes to its
segment reporting in connection with these actions.
"The initiatives announced today are designed to unlock additional value from
our robust portfolio of midstream assets and to further benefit from the value-
enhancing platform we have established with MPLX. We will be moving ahead
expeditiously on each of these actions, while continuing to capture the
compelling benefits of MPC's integrated and diversified model," said Heminger.
A copy of the press release can be found at http://ir.marathonpetroleum.com.
For the third quarter, the midstream segment, which includes MPLX, delivered
solid results supported by increases in gathering, processing and fractionation
volumes. MPLX continues to drive exceptional growth opportunities, supporting a
diverse set of producer customers in some of the nation's most prolific shale
plays and positioning it well to benefit from a rising commodity price
environment.
Additionally, in October, MPLX commenced operations of the Cornerstone Pipeline
on schedule and under budget. The pipeline has been designed to transport
condensate and natural gasoline from the Marcellus and Utica regions to MPC's
Canton, Ohio, refinery. The partnership is now in the process of expanding the
capacity of existing pipelines, as well as constructing new pipelines as part of
a larger build-out of Utica Shale infrastructure. "With this mix of new and
existing pipelines, we are seizing a unique opportunity to connect natural gas
liquids to downstream markets in the Midwest and Canada through our extensive
distribution network," Heminger said.
Speedway continues to be a top performer in the convenience store industry. In
the third quarter, Speedway delivered strong light product sales volume and
record merchandise margin dollars. The higher merchandise margin is consistent
with its strategy to realize marketing enhancement opportunities.
As MPC's most ratable distribution channel, Speedway supports MPC's overall
supply reliability and allows MPC to optimize the integration value created by
synergies with refining, pipeline and terminal operations. In addition, Speedway
benefits from its integration in MPC's broader refining and logistics system in
times of supply disruptions, such as the Colonial Pipeline outage in September.
The refining and marketing segment results are down from a year ago on lower
crack spreads and compressed product price realizations. "Despite a challenging
quarter, we remain optimistic as we move forward into 2017, given the signs of
market rebalancing and sustained strong demand," Heminger said. "The combination
of our niche inland refineries and large Gulf Coast refineries with optimization
potential and export access positions us well for the future."
During the third quarter, MPC returned $241 million to shareholders, which
included a 12.5 percent increase in the company's quarterly dividend, to $0.36
per share. The dividend has increased at a 28 percent compound annual growth
rate since MPC's spinoff in 2011, demonstrating its ongoing strategy to return
capital to shareholders.
"The third quarter marked our fifth year as a stand-alone company. Since the
spinoff, we have demonstrated a track record of creating value for and returning
capital to our shareholders," Heminger said. "The strength of our integrated
platform and our operational performance has enabled us to return over $10
billion to shareholders since 2011 through share repurchases and dividends while
continuing to reinvest for future growth."
Segment Results
Total income from operations was $435 million in the third quarter of 2016,
compared with $1.55 billion in the third quarter of 2015.
Three Months Ended
September 30
(In millions) 2016 2015
---------- ----------
Income from Operations by Segment
Refining & Marketing((a)) $ 306 $ 1,434
Speedway 209 243
Midstream((a)) 258 93
Items not allocated to segments:
Corporate and other unallocated items((a)) (67 ) (75 )
Pension settlement expenses (4 ) (2 )
Impairments (267 ) (144 )
---------- ----------
Income from operations $ 435 $ 1,549
---------- ----------
(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 $306 million in the
third quarter of 2016, compared with $1.43 billion in the same quarter of 2015.
The decrease in the quarter-over-quarter results was due to a $6.52 per barrel
decrease in gross margin, primarily resulting from lower crack spreads in both
Gulf Coast and Chicago markets and lower product price realizations compared to
the spot market product prices used in the Light Louisiana Sweet (LLS) crack
spread calculation. The Chicago and Gulf Coast Light Louisiana Sweet 6-3-2-1
blended crack spread decreased from $12.18 per barrel in the third quarter of
2015 to $8.08 per barrel in the third quarter of 2016.
Speedway
Speedway segment income from operations was $209 million in the third quarter of
2016, compared with $243 million in the third quarter of 2015. The decrease in
segment income was primarily the result of a lower light product margin and
increased depreciation expense, partially offset by increases in merchandise
margin and light product sales volume. Speedway's light product margin decreased
from 21.46 cents per gallon in the third quarter of 2015 to 17.73 cents per
gallon in the third quarter of 2016, while merchandise gross margin as a percent
of merchandise sales increased to 28.9% in the third quarter of 2016 compared
with 27.7% in the third quarter of 2015. The increase in depreciation is
primarily related to the recent investments made in the business, including
capital spending related to the Hess Retail acquisition in late 2014.
Midstream
Midstream segment income from operations, which includes MPLX as well as other
related operations, was $258 million in the third quarter of 2016, compared with
$93 million for the third 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 pipelines and marine
equity investments.
Items Not Allocated to Segments
Corporate and other unallocated expenses of $67 million in the third quarter of
2016 were $8 million lower than the third quarter of 2015 largely due to a
reduction in corporate expenses.
Impairments not allocated to segments totaled $267 million in the third quarter
of 2016. This non-cash charge related to the impairment of our equity investment
in the Sandpiper Pipeline project as a result of the withdrawal of regulatory
applications for the project. The third quarter of 2015 included a $144 million
impairment charge related to the cancellation of the ROUX (residual oil upgrade
expansion) project at our Garyville refinery.
Strong Financial Position and Liquidity
On Sept. 30, 2016, the company had $709 million of cash and cash equivalents.
The company has $2.5 billion available under a revolving credit agreement, $1
billion available under a 364-day bank revolving credit facility and
approximately $740 million available under its $750 million trade receivables
securitization facility, for total liquidity of $4.9 billion.
During the quarter, MPC chose to prepay $500 million under its term loan
agreement with available cash on hand.
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. The company remains
committed to maintaining an investment-grade credit profile.
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 1-800-447-0521 (confirmation number
43396863) or by visiting MPC's website at http://www.marathonpetroleum.com by
clicking on the "2016 Third-Quarter Financial Results" link. Replays of the
conference call will be available on the company's website through Wednesday,
Nov. 9. 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 5,500 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
Doug Wendt (419) 421-2423
Media Contacts:
Chuck Rice (419) 421-2521
Katie Merx (419) 672-5159
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, including proposed strategic initiatives. 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:
the time, costs and ability to obtain regulatory or other approvals and consents
and otherwise consummate the strategic initiatives discussed herein; the
satisfaction or waiver of conditions in the agreements governing the strategic
initiatives discussed herein; our ability to achieve the strategic and other
objectives related to the strategic initiatives discussed herein; adverse
changes in laws including with respect to tax and regulatory matters; inability
to agree with the MPLX conflicts committee with respect to the timing of and
value attributed to assets identified for dropdown; 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 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 time, costs and
ability to obtain regulatory or other approvals and consents and otherwise
consummate the strategic initiatives discussed herein and other proposed
transactions; the satisfaction or waiver of conditions in the agreements
governing the strategic initiatives discussed herein and other proposed
transactions; our ability to achieve the strategic and other objectives related
to the strategic initiatives discussed herein and other proposed transactions;
adverse changes in laws including with respect to tax and regulatory matters;
inability to agree with respect to the timing of and value attributed to assets
identified for dropdown; 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; changes to the expected construction costs and timing of projects;
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;
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 Nine Months Ended
September 30 September 30
(In millions, except per- 2016 2015 2016 2015
share data)
------------ ------------ ------------ -----------
Revenues and other income:
Sales and other operating
revenues (including consumer
excise taxes) $ 16,618 $ 18,716 $ 46,184 $ 56,444
Income (loss) from equity
method investments (208 ) 23 (236 ) 58
Net gain on disposal of
assets 1 2 26 6
Other income 49 17 106 71
------------ ------------ ------------ -----------
Total revenues and other
income 16,460 18,758 46,080 56,579
Costs and expenses:
Cost of revenues (excludes
items below) 12,944 14,165 35,475 43,575
Purchases from related
parties 128 61 359 219
Inventory market valuation
adjustment - - (370 ) -
Consumer excise taxes 1,914 1,988 5,633 5,759
Impairment expense - 144 130 144
Depreciation and
amortization 507 364 1,497 1,089
Selling, general and
administrative expenses 420 392 1,199 1,143
Other taxes 112 95 332 296
------------ ------------ ------------ -----------
Total costs and expenses 16,025 17,209 44,255 52,225
------------ ------------ ------------ -----------
Income from operations 435 1,549 1,825 4,354
Net interest and other
financial income (costs) (141 ) (70 ) (420 ) (215 )
------------ ------------ ------------ -----------
Income before income taxes 294 1,479 1,405 4,139
Provision for income taxes 75 521 481 1,439
------------ ------------ ------------ -----------
Net income 219 958 924 2,700
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 - 25 -
Noncontrolling interests 58 10 (48 ) 35
------------ ------------ ------------ -----------
Net income attributable to
MPC $ 145 $ 948 $ 947 $ 2,665
------------ ------------ ------------ -----------
Per-share data
Basic:
Net income attributable to
MPC per share $ 0.28 $ 1.77 $ 1.79 $ 4.93
Weighted average
shares:((a)) 527 535 528 540
Diluted:
Net income attributable to
MPC per share $ 0.27 $ 1.76 $ 1.78 $ 4.90
Weighted average
shares:((a)) 530 538 531 544
Dividends paid $ 0.36 $ 0.32 $ 1.00 $ 0.82
a. The number of weighted average shares for the period ended September
30, 2016, reflects the impact of our share repurchases.
Supplemental Statistics (Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In millions) 2016 2015 2016 2015
---------- ----------- ----------- ----------
Income from Operations by segment
Refining & Marketing((a)(b)) $ 306 $ 1,434 $ 1,324 $ 3,907
Speedway((a)) 209 243 569 538
Midstream((b)(c)) 258 93 626 286
Items not allocated to
segments:
Corporate and other unallocated
items((b)) (67 ) (75 ) (201 ) (229 )
Pension settlement expenses (4 ) (2 ) (7 ) (4 )
Impairments((d)) (267 ) (144 ) (486 ) (144 )
---------- ----------- ----------- ----------
Income from operations((a)) 435 1,549 1,825 4,354
Net interest and other financial
income (costs) (141 ) (70 ) (420 ) (215 )
---------- ----------- ----------- ----------
Income before income taxes 294 1,479 1,405 4,139
Provision for income taxes 75 521 481 1,439
---------- ----------- ----------- ----------
Net income 219 958 924 2,700
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 - 25 -
Noncontrolling interests 58 10 (48 ) 35
---------- ----------- ----------- ----------
Net income attributable to MPC $ 145 $ 948 $ 947 $ 2,665
---------- ----------- ----------- ----------
Capital Expenditures and
Investments
Refining & Marketing((b)) $ 267 $ 256 $ 788 $ 686
Speedway 71 130 191 275
Midstream((b)(c)) 394 156 1,147 400
Corporate and Other((e)) 29 43 106 121
---------- ----------- ----------- ----------
Total $ 761 $ 585 $ 2,232 $ 1,482
---------- ----------- ----------- ----------
(a) Includes a non-cash lower-of-cost-or-market ("LCM") inventory valuation
benefit of $370 million for the nine months ended September 30, 2016. The
benefit increased Refining & Marketing and Speedway segment income by $345
million and $25 million, respectively, for the nine months ended September 30,
2016.
(b) 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.
(c) Includes the results of MarkWest from the December 4, 2015 merger date.
(d) 2016 relates to impairments of goodwill and equity method investments.
2015 relates to the cancellation of the ROUX project.
(e) Includes capitalized interest of $15 million, $10 million, $47 million
and $26 million, respectively.
Supplementary Statistics Three Months Ended Nine Months Ended
(Unaudited) (continued) September 30 September 30
2016 2015 2016 2015
----------- ----------- ----------- ----------
MPC Consolidated Refined Product
Sales Volumes (thousands of
barrels per day (mbpd)((a)) 2,316 2,359 2,274 2,316
Refining & Marketing (R&M)
Operating Statistics
R&M refined product sales volume
(mbpd)((b)) 2,307 2,345 2,265 2,303
R&M gross margin (dollars per
barrel)((c)(d)) $ 10.75 $ 17.27 $ 11.20 $ 16.08
Crude oil capacity utilization
(percent)((e)) 100 101 95 100
Refinery throughputs
(mbpd):((f))
Crude oil refined 1,791 1,744 1,708 1,735
Other charge and blendstocks 135 168 156 170
----------- ----------- ----------- ----------
Total 1,926 1,912 1,864 1,905
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 59 56 60 55
WTI-priced crude oil throughput
(percent) 20 20 20 20
Refined product yields
(mbpd):((f))
Gasoline 907 911 908 906
Distillates 647 611 616 598
Propane 38 33 35 36
Feedstocks and special
products 253 292 245 307
Heavy fuel oil 43 32 36 30
Asphalt 70 66 58 58
----------- ----------- ----------- ----------
Total 1,958 1,945 1,898 1,935
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 1.62 $ 1.37 $ 1.72 $ 0.94
Depreciation and amortization 1.42 1.36 1.46 1.37
Other manufacturing((h)) 4.01 4.17 4.03 4.12
----------- ----------- ----------- ----------
Total $ 7.05 $ 6.90 $ 7.21 $ 6.43
----------- ----------- ----------- ----------
R&M Operating Statistics by
Region - Gulf Coast
Refinery throughputs
(mbpd):((i))
Crude oil refined 1,073 1,072 1,057 1,065
Other charge and blendstocks 185 180 199 177
----------- ----------- ----------- ----------
Total 1,258 1,252 1,256 1,242
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 72 68 73 68
WTI-priced crude oil throughput
(percent) 8 6 7 6
Refined product yields
(mbpd):((i))
Gasoline 511 544 530 526
Distillates 411 408 407 386
Propane 27 25 26 26
Feedstocks and special
products 289 271 283 299
Heavy fuel oil 30 16 24 14
Asphalt 17 19 15 16
----------- ----------- ----------- ----------
Total 1,285 1,283 1,285 1,267
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 2.05 $ 0.80 $ 1.87 $ 0.70
Depreciation and amortization 1.14 1.07 1.13 1.09
Other manufacturing((h)) 3.70 4.00 3.62 3.92
----------- ----------- ----------- ----------
Total $ 6.89 $ 5.87 $ 6.62 $ 5.71
----------- ----------- ----------- ----------
Supplementary Statistics (Unaudited) (continued)
Three Months Ended Nine Months Ended
September 30 September 30
2016 2015 2016 2015
------------- ------------ ------------ ------------
R&M Operating Statistics
by Region - Midwest
Refinery throughputs
(mbpd):((i))
Crude oil refined 718 672 651 670
Other charge and
blendstocks 39 28 37 33
------------- ------------ ------------ ------------
Total 757 700 688 703
------------- ------------ ------------ ------------
Sour crude oil throughput
(percent) 39 36 39 35
WTI-priced crude oil
throughput (percent) 39 43 41 42
Refined product yields
(mbpd):((i))
Gasoline 396 367 378 380
Distillates 236 203 209 212
Propane 13 10 11 11
Feedstocks and special
products 51 59 40 46
Heavy fuel oil 13 16 12 17
Asphalt 53 47 43 42
------------- ------------ ------------ ------------
Total 762 702 693 708
------------- ------------ ------------ ------------
Refinery direct operating
costs ($/barrel):((g))
Planned turnaround and
major maintenance $ 0.72 $ 2.30 $ 1.26 $ 1.32
Depreciation and
amortization 1.72 1.80 1.90 1.79
Other manufacturing((h)) 4.04 4.25 4.29 4.24
------------- ------------ ------------ ------------
Total $ 6.48 $ 8.35 $ 7.45 $ 7.35
------------- ------------ ------------ ------------
Speedway Operating
Statistics
Convenience stores at
period-end 2,773 2,756
Gasoline and distillate
sales (millions of
gallons) 1,575 1,555 4,605 4,501
Gasoline and distillate
gross margin (dollars per
gallon)((d)(j)) $ 0.1773 $ 0.2146 $ 0.1668 $ 0.1822
Merchandise sales (in
millions) $ 1,338 $ 1,294 $ 3,777 $ 3,669
Merchandise gross margin
(in millions) $ 386 $ 358 $ 1,085 $ 1,028
Merchandise gross margin
percent 28.9 % 27.7 % 28.7 % 28.0 %
Same store gasoline sales
volume (period over
period) (0.6 )% 0.5 % 0.2 % (0.3 )%
Same store merchandise
sales (period over
period)((k)) 4.0 % 3.6 % 3.0 % 4.7 %
Midstream Operating
Statistics
Crude oil and refined
product pipeline
throughputs (mbpd)((l)) 2,433 2,259 2,298 2,231
Gathering system
throughput (million cubic
feet per day)((m)) 3,306 3,313
Natural gas processed
(million cubic feet per
day)((m)) 5,906 5,691
C2 (ethane) + NGLs
fractionated (mbpd)((m)) 348 330
(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 89 mbpd and 40 mbpd for third quarter
2016 and 2015, respectively, and 80 mbpd and 40 mbpd for the nine months ended
September 30, 2016, and September 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 Nine Months Ended
September 30 September 30
(In millions) 2016 2015 2016 2015
----------- ----------- ------------ -----------
Segment EBITDA((a))
Refining & Marketing((b)) $ 583 $ 1,696 $ 2,144 $ 4,691
Speedway((b)) 280 306 772 726
Midstream((c)) 403 120 1,055 365
----------- ----------- ------------ -----------
Total Segment EBITDA((a)(b)) 1,266 2,122 3,971 5,782
Total segment depreciation &
amortization (493 ) (352 ) (1,452 ) (1,051 )
Items not allocated to
segments((d)) (338 ) (221 ) (694 ) (377 )
----------- ----------- ------------ -----------
Income from operations 435 1,549 1,825 4,354
Net interest and other
financial income (costs) (141 ) (70 ) (420 ) (215 )
----------- ----------- ------------ -----------
Income before income taxes 294 1,479 1,405 4,139
Income tax provision 75 521 481 1,439
----------- ----------- ------------ -----------
Net income 219 958 924 2,700
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 - 25 -
Noncontrolling interests 58 10 (48 ) 35
----------- ----------- ------------ -----------
Net income attributable to MPC $ 145 $ 948 $ 947 $ 2,665
----------- ----------- ------------ -----------
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 a non-cash LCM inventory valuation benefit of $370 million for the
nine months ended September 30, 2016. The benefit increased Refining &
Marketing and Speedway segment EBITDA by $345 million and $25 million,
respectively, for the nine months ended September 30, 2016.
c. Includes the results of MarkWest from the December 4, 2015 merger date.
d. Includes impairment charges of $267 million, $144 million, $486 million and
$144 million, respectively.
Select Financial Data (Unaudited)
September June 30
30 2016
(In millions) 2016
------------ -----------
Cash and cash equivalents $ 709 $ 1,754
MPLX debt 4,412 4,401
Total consolidated debt 10,566 11,059
Redeemable noncontrolling interest 1,000 993
Equity 19,957 19,935
Total capitalization 31,523 31,987
Debt-to-total-capital ratio (percent) 34 35
Shares outstanding 528 528
Cash provided from operations (quarter ended) $ 405 $ 2,263
MPC Q3 2016 Earnings Release:
http://hugin.info/147922/R/2051955/767979.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Marathon Petroleum Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 27.10.2016 - 12:32 Uhr
Sprache: Deutsch
News-ID 503301
Anzahl Zeichen: 46905
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 216 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Marathon Petroleum Corporation Reports Third-Quarter 2016 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).
