Marathon Petroleum Corporation Reports Fourth-Quarter and Full-Year 2016 Results
(Thomson Reuters ONE) -
* Reported fourth-quarter earnings of $227 million ($0.43 per diluted share);
full-year earnings of $1.17 billion ($2.21 per diluted share)
* Speedway achieved record full-year segment results
* Announced 2017 capital investment plan focused on growth and margin-
enhancing investments
* Executing strategic actions announced on Jan. 3 to enhance shareholder value
FINDLAY, Ohio, Feb. 1, 2017 - Marathon Petroleum Corporation (NYSE: MPC) today
reported 2016 fourth-quarter earnings of $227 million, or $0.43 per diluted
share, compared with $187 million, or $0.35 per diluted share, in the fourth
quarter of 2015.
Earnings were $1.17 billion, or $2.21 per diluted share, for the full-year
2016, compared with $2.85 billion, or $5.26 per diluted share, for the full-year
2015.
"Our fourth-quarter and full-year 2016 results reflect solid operational and
financial performance across the business despite a challenging commodity price
and margin environment," said Gary R. Heminger, chairman, president and chief
executive officer. "One year following the strategic combination of MPLX and
MarkWest, we are pleased with MPLX's 2016 results and are encouraged by the
robust portfolio of growth opportunities, which will continue to contribute to
long-term value for our investors."
Speedway continued its exceptional performance in the quarter and set multiple
records for the full-year 2016 while maintaining tight control on expenses.
Speedway surpassed segment all-time highs in income from operations, light
product gallons sold, merchandise sales, and merchandise gross margin on a
percentage and absolute dollar basis. "Speedway continues to exceed our
expectations by driving marketing-enhancement opportunities and continuing to
realize acquisition synergies across the network," Heminger said. "Speedway's
performance highlights the strong value our team is creating for investors."
MPC announced its 2017 capital investment plan, which remains focused on
strengthening the sustained earnings power of its business, through growth and
margin-enhancing investments across the enterprise. MPC's investment plan,
excluding MPLX LP (NYSE: MPLX), totals approximately $1.7 billion. The plan
includes nearly $1.2 billion for MPC's refining and marketing segment, with
approximately $325 million for margin-enhancing projects and approximately $840
million for sustaining capital, related to regulatory spending including Tier 3
gasoline. It also includes approximately $380 million for MPC's Speedway
segment, primarily to build new stores and to remodel and rebuild existing
retail locations in its core markets; approximately $90 million for MPC's
midstream segment, excluding MPLX; and approximately $100 million to support
corporate activities.
MPC also announced it has reduced total planned investments in the South Texas
Asset Repositioning (STAR) project to $1.5 billion from $2 billion. The high-
return staged investments planned for the STAR project through 2021 are designed
to enhance profitability and reliability while integrating the Galveston Bay and
Texas City refineries, creating the second-largest refining complex in the
United States. The $500 million reduction in the total planned investments
reflects a substantial preservation of the project's scope and projected rate of
return. MPC anticipates spending approximately $85 million on the STAR project
this year.
MPLX announced its 2017 capital investment plan, which includes $1.4 billion to
$1.7 billion of organic growth capital and approximately $100 million of
maintenance capital. Approximately $1 billion to
$1.3 billion of these growth investments are for the development of natural gas
and gas liquids infrastructure to support MPLX's producer customers, primarily
in the prolific Marcellus Shale. The remaining $400 million of growth capital is
planned for the development of various crude oil and refined petroleum products
infrastructure projects, including a build-out of Utica Shale infrastructure in
connection with the recently completed Cornerstone Pipeline, a butane cavern in
Robinson, Illinois, and a tank farm expansion in Texas City, Texas.
Additionally on Jan. 3, MPC provided an update on its strategic actions to
enhance shareholder value. MPC is executing plans to significantly accelerate
the dropdown to MPLX of assets with approximately $1.4 billion of annual
earnings before interest, taxes, depreciation and amortization (EBITDA) now
planned for 2017, including $250 million by the end of the first quarter.
In conjunction with the completion of the dropdowns, MPC expects to exchange its
economic interests in the general partner, including incentive distribution
rights, for newly issued MPLX common (LP) units. All transactions are subject to
requisite approvals, market and other conditions, including tax and other
regulatory clearances. Additionally, a special committee of the Board has been
formed and it has selected an independent financial advisor to assist in the
full and thorough review of Speedway to ensure optimum value is delivered to
shareholders over the long term. We expect to provide an update on the review by
mid-2017.
Cash proceeds from the dropdowns and ongoing LP distributions are expected to
fund the substantial ongoing return of capital to MPC shareholders in a manner
consistent with maintaining an investment-grade credit profile.
"Moving into 2017, we are executing our strategic plan to unlock the tremendous
value in our best-in-class midstream platform for the benefit of all investors,"
Heminger said. "We are well-positioned across the business to take advantage of
strengthening commodity prices, recovering refinery spreads and robust demand
for our products."
Segment Results
Total income from operations was $553 million in the fourth quarter of 2016 and
$2.38 billion for full-year 2016, compared with $338 million in the fourth
quarter of 2015 and $4.69 billion for full-year 2015. The results of MarkWest
are included in the Midstream segment from the Dec. 4, 2015, merger date.
Three Months Twelve Months Ended
Ended December 31,
December 31,
(In millions) 2016 2015 2016 2015
--------- --------- ----------------------
Income from Operations by Segment
Refining & Marketing((a)(b)) $ 219 $ 179 $ 1,543 $ 4,086
Speedway((b)) 165 135 734 673
Midstream((a)) 245 94 871 380
Items not allocated to segments:
Corporate and other unallocated
items((a)) (76 ) (70 ) (277 ) (299 )
Pension settlement expenses - - (7 ) (4 )
Impairments - - (486 ) (144 )
--------- --------- ----------- ----------
Income from operations $ 553 $ 338 $ 2,378 $ 4,692
--------- --------- ----------------------
((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.
((b) )Fourth-quarter and full-year 2015 income from operations includes
a non-cash charge of $370 million to value inventory at lower of cost or market
(LCM). The charge reduced our Refining & Marketing and Speedway segment results
by $345 million and $25 million, respectively. Based on increases in refined
product prices in 2016, this LCM inventory valuation reserve was reversed
resulting in a non-cash benefit to 2016 segment results.
Refining & Marketing
Refining & Marketing segment income from operations was $219 million in the
fourth quarter of 2016 and $1.54 billion for full-year 2016, compared with $179
million and $4.09 billion in the fourth quarter of 2015 and full-year 2015,
respectively.
Excluding the lower of cost or market (LCM) charge in the fourth quarter of
2015, the decrease in quarter-over-quarter segment results was primarily due to
the effect of lower product price realizations compared with the spot market
product prices used in the Light Louisiana Sweet (LLS) crack spread and
increased direct operating costs primarily related to refinery turnarounds.
These negative impacts were partially offset by higher blended crack spreads.
The U.S. Gulf Coast (USGC) and Chicago LLS blended 6-3-2-1 crack spread
increased from $6.65 per barrel in the fourth quarter of 2015 to $7.39 per
barrel in the fourth quarter of 2016, as an increase in the USGC crack spread
more than offset a decrease in the Chicago crack spread.
Excluding the effects of LCM adjustments, the decrease in Refining & Marketing
segment income from operations for full-year 2016 compared to full-year 2015
primarily resulted from lower crack spreads in both the Gulf Coast and Chicago
markets and higher direct operating costs due to refinery turnarounds. The
blended 6-3-2-1 crack spread for the full year decreased from $9.70 per barrel
in 2015 to $6.96 per barrel in 2016.
Speedway
Speedway segment income from operations was $165 million in the fourth quarter
of 2016 and $734 million for full-year 2016, compared with $135 million in the
fourth quarter of 2015 and $673 million for full-year 2015.
Excluding the LCM charge in 2015, the increase in segment income from operations
for the fourth quarter was primarily due to lower operating costs and an
increase in merchandise margin, substantially offset by lower light product
margin. Speedway's light product margin decreased from 18.23 cents per gallon in
the fourth quarter of 2015 to 16.17 cents per gallon in the fourth quarter of
2016.
Excluding LCM adjustments, the increase in segment results for the full-year
2016 was primarily due to higher merchandise margin and gains from asset sales,
partially offset by lower light product margin which decreased from 18.23 cents
per gallon in 2015 to 16.56 cents per gallon in 2016.
Midstream
Midstream segment income from operations, which includes 100 percent of MPLX's
operations as well as other related operations, was $245 million in the fourth
quarter of 2016 and $871 million for full-year 2016, compared with $94 million
and $380 million for the fourth quarter and full-year 2015, respectively. The
increase in Midstream segment income from operations for the fourth quarter and
full-year of 2016 compared with 2015 was primarily due to the inclusion of
MarkWest's results from the Dec. 4, 2015, merger date as well as the earnings
from new pipeline and marine equity investments.
Items Not Allocated to Segments
Corporate and other unallocated expenses of $76 million in the fourth quarter of
2016 and $277 million for full-year 2016 compared with $70 million and $299
million for the full-year 2015. The decrease for the full year was largely due
to increased allocations of corporate costs to the segments.
Full-year 2016 impairments not allocated to segments of $486 million included
non-cash charges of $356 million related to equity method investments and $130
million related to goodwill. Full-year 2015 impairments not allocated to
segments of $144 million related to a cancelled capital project.
Strong Financial Position and Liquidity
On Dec. 31, 2016, the company had $887 million in 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 $684 million
available under its $750 million trade receivables securitization facility, for
total liquidity of $5.1 billion.
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. 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 1-800-447-0521 (confirmation
#44084607) or by visiting MPC's website at http://www.marathonpetroleum.com and
clicking on the "2016 Fourth-Quarter and Full-Year Financial Results" link.
Replays of the conference call will be available on the company's website
through Wednesday, Feb. 15. 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 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 5,500 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 2,730 convenience stores in 21 states. MPC owns, leases or has
ownership interests in approximately 8,400 miles of crude and light product
pipelines and more than 5,600 miles of gas gathering and natural gas liquids
(NGL) pipelines. MPC also has ownership interests in 54 gas processing plants,
14 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
Denice Myers (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; 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, and other risks described below with respect to MPLX; 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; 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 Twelve Months Ended
December 31, December 31,
(In millions, except per- 2016 2015 2016 2015
share data)
------------ ------------ ------------ -----------
Revenues and other income:
Sales and other operating
revenues (including consumer
excise taxes) $ 17,155 $ 15,607 $ 63,339 $ 72,051
Income (loss) from equity
method investments 51 30 (185 ) 88
Net gain on disposal of
assets 6 1 32 7
Other income 72 41 178 112
------------ ------------ ------------ -----------
Total revenues and other
income 17,284 15,679 63,364 72,258
Costs and expenses:
Cost of revenues (excludes
items below) 13,695 12,008 49,170 55,583
Purchases from related
parties 150 89 509 308
Inventory market valuation
charges - 370 (370 ) 370
Consumer excise taxes 1,873 1,933 7,506 7,692
Impairment expense - - 130 144
Depreciation and
amortization 504 413 2,001 1,502
Selling, general and
administrative expenses 406 433 1,605 1,576
Other taxes 103 95 435 391
------------ ------------ ------------ -----------
Total costs and expenses 16,731 15,341 60,986 67,566
------------ ------------ ------------ -----------
Income from operations 553 338 2,378 4,692
Net interest and other
financial income (costs) (136 ) (103 ) (556 ) (318 )
------------ ------------ ------------ -----------
Income before income taxes 417 235 1,822 4,374
Provision for income taxes 128 67 609 1,506
------------ ------------ ------------ -----------
Net income 289 168 1,213 2,868
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 - 41 -
Noncontrolling interests 46 (19 ) (2 ) 16
------------ ------------ ------------ -----------
Net income attributable to
MPC $ 227 $ 187 $ 1,174 $ 2,852
------------ ------------ ------------ -----------
Per-share data
Basic:
Net income attributable to
MPC per share $ 0.43 $ 0.35 $ 2.22 $ 5.29
Weighted average
shares:((a)) 526 531 528 538
Diluted:
Net income attributable to
MPC per share $ 0.43 $ 0.35 $ 2.21 $ 5.26
Weighted average
shares:((a)) 529 535 530 542
Dividends paid $ 0.36 $ 0.32 $ 1.36 $ 1.14
((a)) The number of weighted average shares for the periods ended Dec.
31, 2016, and 2015, reflects the impact of our share repurchases.
Supplemental Statistics (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions) 2016 2015 2016 2015
---------- ------------ ----------- -----------
Income from Operations by
segment
Refining & Marketing((a)(b)) $ 219 $ 179 $ 1,543 $ 4,086
Speedway((a)) 165 135 734 673
Midstream((b)(c)) 245 94 871 380
Items not allocated to
segments:
Corporate and other
unallocated items (76 ) (70 ) (277 ) (299 )
Pension settlement expenses - - (7 ) (4 )
Impairments((d)) - - (486 ) (144 )
---------- ------------ ----------- -----------
Income from operations((a)) 553 338 2,378 4,692
Net interest and other
financial income (costs) (136 ) (103 ) (556 ) (318 )
---------- ------------ ----------- -----------
Income before income taxes 417 235 1,822 4,374
Provision for income taxes 128 67 609 1,506
---------- ------------ ----------- -----------
Net income 289 168 1,213 2,868
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 - 41 -
Noncontrolling interests 46 (19 ) (2 ) 16
---------- ------------ ----------- -----------
Net income attributable to MPC $ 227 $ 187 $ 1,174 $ 2,852
---------- ------------ ----------- -----------
Capital Expenditures and
Investments((e))
Refining & Marketing $ 313 $ 359 $ 1,101 $ 1,045
Speedway 112 226 303 501
Midstream((b)(c)) 374 14,145 1,521 14,545
Corporate and Other((f)) 38 71 144 192
---------- ------------ ----------- -----------
Total $ 837 $ 14,801 $ 3,069 $ 16,283
---------- ------------ ----------- -----------
((a) )Fourth-quarter and full-year 2015 income from operations includes a
non-cash LCM charge of $370 million to value inventory at lower of cost or
market (LCM). The charge reduced our Refining & Marketing and Speedway segment
results by $345 million and $25 million, respectively. The company reversed this
LCM inventory valuation reserve due to increased refined product prices during
the second quarter of 2016 resulting in a $370 non-cash benefit to income from
operations for the full year 2016, which increased Refining & Marketing and
Speedway segment results by $345 million and $25 million, respectively.
((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 Dec. 4, 2015, merger
date.
((d) )Full-year 2016 impairments included non-cash charges of $267
million related to our equity method investment in the Sandpiper Pipeline
project resulting from the indefinite deferral of this project, $130 million
related to the goodwill recognized in connection with the MarkWest merger and
$89 million related to an MPLX equity method investment. Full-year 2015 relates
to the cancellation of the ROUX project.
((e) )The three months and year ended Dec. 31, 2015, includes $13.85
billion for the MarkWest merger.
((f) )Includes capitalized interest of $16 million, $11 million, $63
million and $37 million, respectively.
Supplementary Statistics Three Months Ended Twelve Months Ended
(Unaudited) (continued) December 31, December 31,
2016 2015 2016 2015
----------- ----------- ----------- ----------
MPC Consolidated Refined Product
Sales Volumes (thousands of
barrels per day (mbpd)((a)) 2,252 2,257 2,269 2,301
Refining & Marketing (R&M)
Operating Statistics
R&M refined product sales volume
(mbpd)((b)) 2,240 2,248 2,259 2,289
R&M gross margin (dollars per
barrel)((c)(d)) $ 11.41 $ 12.70 $ 11.26 $ 15.25
Crude oil capacity utilization
(percent)((e)) 93 95 95 99
Refinery throughputs
(mbpd):((f))
Crude oil refined 1,672 1,638 1,699 1,711
Other charge and blendstocks 138 201 151 177
----------- ----------- ----------- ----------
Total 1,810 1,839 1,850 1,888
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 61 55 60 55
WTI-priced crude oil throughput
(percent) 18 20 19 20
Refined product yields
(mbpd):((f))
Gasoline 877 934 900 913
Distillates 621 615 617 603
Propane 34 35 35 36
Feedstocks and special
products 227 204 241 281
Heavy fuel oil 19 34 32 31
Asphalt 58 49 58 55
----------- ----------- ----------- ----------
Total 1,836 1,871 1,883 1,919
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 2.16 $ 1.71 $ 1.83 $ 1.13
Depreciation and amortization 1.48 1.43 1.47 1.39
Other manufacturing((h)) 4.29 4.25 4.09 4.15
----------- ----------- ----------- ----------
Total $ 7.93 $ 7.39 $ 7.39 $ 6.67
----------- ----------- ----------- ----------
R&M Operating Statistics by
Region - Gulf Coast
Refinery throughputs
(mbpd):((i))
Crude oil refined 986 1,043 1,039 1,060
Other charge and blendstocks 184 206 195 184
----------- ----------- ----------- ----------
Total 1,170 1,249 1,234 1,244
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 73 69 73 68
WTI-priced crude oil throughput
(percent) 10 4 8 6
Refined product yields
(mbpd):((i))
Gasoline 466 557 514 534
Distillates 377 408 399 392
Propane 24 26 26 26
Feedstocks and special
products 294 247 286 286
Heavy fuel oil 10 19 21 15
Asphalt 16 18 15 16
----------- ----------- ----------- ----------
Total 1,187 1,275 1,261 1,269
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((g))
Planned turnaround and major
maintenance $ 2.82 $ 1.12 $ 2.09 $ 0.81
Depreciation and amortization 1.16 1.08 1.14 1.09
Other manufacturing((h)) 3.94 3.78 3.70 3.88
----------- ----------- ----------- ----------
Total $ 7.92 $ 5.98 $ 6.93 $ 5.78
----------- ----------- ----------- ----------
Supplementary Statistics Three Months Ended Twelve Months Ended
(Unaudited) (continued) December 31, December 31,
2016 2015 2016 2015
------------- ------------- ------------- ------------
R&M Operating Statistics
by Region - Midwest
Refinery throughputs
(mbpd):((i))
Crude oil refined 686 595 660 651
Other charge and
blendstocks 44 56 39 39
------------- ------------- ------------- ------------
Total 730 651 699 690
------------- ------------- ------------- ------------
Sour crude oil
throughput (percent) 43 31 40 34
WTI-priced crude oil
throughput (percent) 29 48 38 43
Refined product yields
(mbpd):((i))
Gasoline 411 377 386 379
Distillates 244 207 218 211
Propane 12 11 11 12
Feedstocks and special
products 20 15 35 38
Heavy fuel oil 10 16 12 17
Asphalt 42 31 43 39
------------- ------------- ------------- ------------
Total 739 657 705 696
------------- ------------- ------------- ------------
Refinery direct
operating costs
($/barrel):((g))
Planned turnaround and
major maintenance $ 0.84 $ 2.69 $ 1.15 $ 1.64
Depreciation and
amortization 1.81 1.97 1.88 1.83
Other
manufacturing((h)) 4.31 4.72 4.29 4.36
------------- ------------- ------------- ------------
Total $ 6.96 $ 9.38 $ 7.32 $ 7.83
------------- ------------- ------------- ------------
Speedway Operating
Statistics
Convenience stores at
period-end((j)) 2,733 2,766
Gasoline and distillate
sales (millions of
gallons) 1,489 1,537 6,094 6,038
Gasoline and distillate
gross margin (dollars
per gallon)((d)(k)) $ 0.1617 $ 0.1823 $ 0.1656 $ 0.1823
Merchandise sales (in
millions) $ 1,230 $ 1,210 $ 5,007 $ 4,879
Merchandise gross margin
(in millions) $ 350 $ 340 $ 1,435 $ 1,368
Merchandise gross margin
percent 28.4 % 28.0 % 28.7 % 28.0 %
Same store gasoline
sales volume (period
over period) (2.4 )% (0.3 )% (0.4 )% (0.3 )%
Same store merchandise
sales (period over
period)((l)) 3.7 % 2.7 % 3.2 % 4.1 %
Midstream Operating
Statistics
Crude oil and refined
product pipeline
throughputs (mbpd)((m)) 2,346 2,071 2,311 2,191
Gathering system
throughput (million
cubic feet per day)((n)) 3,164 3,075 3,275 3,075
Natural gas processed
(million cubic feet per
day)((n)) 5,970 5,468 5,761 5,468
C2 (ethane) + NGLs
fractionated (mbpd)((n)) 346 307 335 307
((a)) Total average daily volumes of refined product sales to wholesale,
branded and retail 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 90 mbpd and 61 mbpd for fourth
quarter 2016 and 2015, respectively, and 83 mbpd and 46 mbpd for the full-year
2016 and 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) ) Includes Marathon brand locations operated by Speedway. Decrease
primarily due to the contribution of 41 travel centers to the Pilot joint
venture in 4Q 2016.
((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.
((m)) On owned common-carrier pipelines, excluding equity method
investments.
((n) )Includes the MarkWest results beginning on the Dec. 4, 2015,
merger date. Includes amounts related to unconsolidated equity method
investments on a 100% basis.
Segment Earnings Before Interest, Taxes, Depreciation & Amortization (Segment
EBITDA) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In millions) 2016 2015 2016 2015
----------- ---------- ------------ -----------
Segment EBITDA((a))
Refining & Marketing((b)) $ 491 $ 447 $ 2,635 $ 5,138
Speedway((b)) 235 201 1,007 927
Midstream 392 159 1,447 524
----------- ---------- ------------ -----------
Total Segment EBITDA((a)(b)) 1,118 807 5,089 6,589
Total segment depreciation &
amortization (489 ) (399 ) (1,941 ) (1,450 )
Items not allocated to
segments((d)) (76 ) (70 ) (770 ) (447 )
----------- ---------- ------------ -----------
Income from operations 553 338 2,378 4,692
Net interest and other
financial income (costs) (136 ) (103 ) (556 ) (318 )
----------- ---------- ------------ -----------
Income before income taxes 417 235 1,822 4,374
Income tax provision 128 67 609 1,506
----------- ---------- ------------ -----------
Net income 289 168 1,213 2,868
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 - 41 -
Noncontrolling interests 46 (19 ) (2 ) 16
----------- ---------- ------------ -----------
Net income attributable to MPC $ 227 $ 187 $ 1,174 $ 2,852
----------- ---------- ------------ -----------
((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) )Fourth-quarter and full-year 2015 income from operations includes a
non-cash charge of $370 million to value inventory at lower of cost or market
(LCM). The charge reduced our Refining & Marketing and Speedway segment results
by $345 million and $25 million, respectively. The company reversed this LCM
inventory valuation reserve due to increased refined product prices during the
second quarter of 2016 resulting in a $370 non-cash benefit to income from
operations for the full year 2016, which increased Refining & Marketing and
Speedway segment results by $345 million and $25 million, respectively.
((c) )Includes the results of MarkWest from the December 4, 2015 merger
date.
((d) )Includes impairment charges of $486 million and $144 million for
the full-years 2016 and 2015, respectively.
Select Financial Data (Unaudited)
December September
31, 2016 30
(In millions) 2016
--------------- -----------
Cash and cash equivalents $ 887 $ 709
MPLX debt 4,423 4,412
Total consolidated debt 10,572 10,566
Redeemable noncontrolling interest 1,000 1,000
Equity 20,203 19,957
Debt-to-total-capital ratio (percent) 33 34
Shares outstanding 528 528
Cash provided from operations (quarter ended) $ 991 $ 405
MPC reports fourth-quarter and full-year 2016 results:
http://hugin.info/147922/R/2074996/780138.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: 01.02.2017 - 12:35 Uhr
Sprache: Deutsch
News-ID 521326
Anzahl Zeichen: 50099
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
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"Marathon Petroleum Corporation Reports Fourth-Quarter and Full-Year 2016 Results"
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