Marathon Petroleum Corporation Reports Second-Quarter 2017 Results
(Thomson Reuters ONE) -
* Reported second-quarter earnings of $515 million, or $1.00 per diluted
share, including a net charge of $0.03 per diluted share related to
estimated losses for litigation matters partially offset by Sandpiper asset
liquidation gains
* Achieved record second-quarter segment income at Speedway
* Continuing execution of strategic actions, including next dropdown targeted
in third quarter of 2017
* Increased quarterly dividend by 11 percent, to $0.40 per share
* Returned $936 million of capital to shareholders, including $750 million in
share repurchases
FINDLAY, Ohio, July 27, 2017 - Marathon Petroleum Corporation (NYSE: MPC) today
reported 2017 second-quarter earnings of $515 million, or $1.00 per diluted
share. Second-quarter 2017 earnings include a charge of $0.05 per diluted share
related to estimated losses for ongoing litigation matters and a benefit of
$0.02 per diluted share related to the company's share of a gain on asset
liquidations related to its investment in the canceled Sandpiper Pipeline
project.
This compares with $801 million, or $1.51 per diluted share, in the second
quarter of 2016. Second-quarter 2016 earnings included 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. The 2016 earnings also included 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).
"We delivered strong operational and financial performance for our shareholders
in the second quarter," said Gary R. Heminger, chairman and chief executive
officer. "MPC continues to focus on driving results while delivering on the
strategic actions designed to further enhance shareholder value."
MPC completed the first of several planned strategic dropdowns in the first
quarter and utilized a substantial portion of after-tax cash proceeds from the
transaction to repurchase shares. In the third quarter, MPC is targeting the
dropdown of its joint-interest ownership in certain pipelines and storage
facilities to MPLX. These assets are projected to generate approximately $135
million of annual adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA).((1) )Work remains on schedule to prepare the remaining
assets, with annual EBITDA of approximately $1 billion, for dropdown to MPLX no
later than the end of the first quarter of 2018. MPC also expects to complete
the ongoing review of Speedway by the end of the third quarter.
Speedway reported record second-quarter segment income from operations of $239
million, $46 million higher than the previous record set in the second quarter
of 2016, and $71 million higher when excluding the LCM benefit. Record results
were driven by higher light-product and merchandise gross margins in the
quarter.
"Speedway delivered another exceptional quarter," Heminger said. "We expect to
continue driving marketing enhancement opportunities as we build new stores,
remodel stores and rebuild existing locations across our network."
The Midstream segment, including MPLX, contributed $332 million in income from
operations. The increase over the second quarter of last year was primarily due
to an increase in processing and fractionation activity in the Marcellus shale.
Total processed and fractionated volumes increased 14 percent and 20 percent,
respectively, in the second quarter versus prior year, setting new volume
records for the partnership.
In early July, the partnership's Utica build-out projects, including the newly
constructed Harpster-to-Lima pipeline, became fully operational. In combination
with the Cornerstone Pipeline, these projects create additional fee-based
revenue for the partnership and new access for Utica and Marcellus shale
producers by moving condensate and natural gasoline to refineries throughout the
Midwest. MPLX is currently constructing additional connectivity and expanding
pipelines to provide more optionality for Midwest refiners.
In addition to expansion in the Marcellus and Utica, where the partnership is
the largest processor and fractionator by volume, MPLX continues construction of
the Argo gas processing plant in the Delaware basin. In July, the partnership
began construction of an additional gas processing plant to support growth in
the STACK shale play of Oklahoma. The new facility, named the Omega plant, is
expected to enter service in mid-2018.
"We are very pleased with MPLX's financial and operational results, which
demonstrate the substantial and growing value the partnership represents to the
total enterprise," Heminger said. "MPLX is well-positioned with a robust
portfolio of organic projects in some of the most prolific and economic shale
plays in the United States. We remain confident in MPLX's compelling value
proposition to investors."
The Refining & Marketing segment reported second-quarter segment income from
operations of $562 million, driven by higher LLS-based blended crack spreads and
record throughput at MPC's Garyville and Galveston Bay refineries, enabled by
the significant turnaround work in the first quarter. These benefits were more
than offset by higher crude oil and feedstock acquisition costs, primarily due
to lower sweet/sour crude oil price differentials.
"Looking forward, we believe the U.S. and global macroeconomic picture remains
favorable and we expect good underlying economic growth will continue to support
strong demand for our products," Heminger said. "With top-tier, strategically
located assets with export access, MPC is well-positioned to meet the energy
needs of the markets and to continue to drive long-term value for shareholders."
During the second quarter, the company returned $936 million to shareholders
through dividends and share repurchases. As part of the strategic actions,
after-tax cash proceeds from the first-quarter dropdown supported substantial
share repurchase activity, including $750 million in the second quarter and $1.2
billion year-to-date.
On July 26, the MPC board of directors announced an 11 percent increase in the
quarterly dividend, to $0.40 per share. This represents a 26 percent compound
annual growth rate in the dividend since becoming an independent company six
years ago, demonstrating continued confidence in the cash-flow generation of the
business.
((1) ) Adjusted EBITDA with respect to anticipated joint-interest
acquisitions is calculated as cash distributions adjusted for maintenance
capital, growth capital and financing activities.
Segment Results
Total income from operations was $1.03 billion in the second quarter of 2017,
compared with $1.32 billion in the second quarter of 2016.
Three Months Ended
June 30
(In millions) 2017 2016
----------- ----------
Income from Operations by Segment
Refining & Marketing((a)) $ 562 $ 1,025
Speedway 239 193
Midstream((a)) 332 253
Items not allocated to segments:
Corporate and other unallocated items((a)) (83 ) (64 )
Pension settlement expenses (1 ) (2 )
Litigation (40 ) -
Impairments 19 (90 )
----------- ----------
Income from operations $ 1,028 $ 1,315
----------- ----------
((a) )In the first quarter of 2017, segment reporting was revised in
connection with the contribution of certain terminal, pipeline and storage
assets to MPLX. The results related to these assets are now presented in the
Midstream segment. Previously, these results were reported in the Refining &
Marketing segment. The results for the pipeline and storage assets were recast
effective Jan. 1, 2015, and the results for the terminal assets were recast
effective April 1, 2016. Prior to these dates these assets were not considered
businesses and therefore there are no financial results from which to recast
segment results.
Refining & Marketing
Refining & Marketing (R&M) segment income from operations was $562 million in
the second quarter of 2017, compared with $1.03 billion in the same quarter of
2016. The second quarter of 2016 includes a $360 million non-cash benefit
related to the reversal of the company's lower of cost or market (LCM) inventory
valuation reserve. Excluding the LCM benefit, the decrease in quarter-over-
quarter segment results was primarily due to a $1.41 per barrel decrease in the
R&M gross margin. The favorable effect of higher blended LLS-based crack spreads
was more than offset by unfavorable crude oil and feedstock acquisition costs,
primarily due to lower sweet/sour crude oil price differentials and less
favorable product price realizations as compared to spot market reference
prices.
The U.S. Gulf Coast (USGC) and Chicago LLS blended 6-3-2-1 crack spread
increased from $7.66 per barrel in the second quarter of 2016 to $9.18 per
barrel in the second quarter of 2017, primarily due to increases in USGC crack
spreads.
Speedway
Speedway segment income from operations was $239 million in the second quarter
of 2017, compared with $193 million in the second quarter of 2016. The second
quarter of 2016 includes a $25 million non-cash benefit related to the reversal
of the company's lower of cost or market (LCM) inventory valuation reserve.
Excluding the LCM benefit, the increase in quarter-over-quarter segment results
was primarily due to higher light product margin, reduced operating expenses and
higher merchandise gross margin. Segment results also benefited from Speedway's
new joint venture with Pilot Flying J, which commenced in the fourth quarter of
2016. Speedway's light product margin increased to 18.35 cents per gallon in the
second quarter of 2017 from 15.49 cents per gallon in the second quarter of
2016.
Midstream
Midstream segment income from operations, which includes MPLX as well as other
related operations, was $332 million in the second quarter of 2017, compared
with $253 million for the second quarter of 2016. The increase was primarily due
to increased earnings from natural gas and NGL processing and fractionation,
primarily driven by higher volumes and changes in natural gas and NGL prices;
earnings from the recently acquired Ozark pipeline system; and increased
earnings from pipeline equity method investments.
Items Not Allocated to Segments
Corporate and other unallocated expenses of $83 million in the second quarter of
2017 were $19 million higher than the second quarter of 2016, largely due to an
increase in certain employee benefit expenses along with lower allocation of
corporate costs to the segments.
In the second quarter of 2017, the company recognized estimated losses of $40
million related to ongoing litigation matters. Our assessment is subject to
change based on the current stage of these matters. Impairments in the second
quarter of 2017 included a benefit of $19 million related to MPC's share of a
gain on asset liquidations related to its investment in the canceled Sandpiper
Pipeline project.
Strong Financial Position and Liquidity
On June 30, 2017, the company had $1.2 billion of cash and cash equivalents,
excluding MPLX's cash and cash equivalents of $293 million, $2.5 billion
available under a revolving credit agreement expiring in July 2020, $1 billion
available under a 364-day bank revolving credit facility expiring in July 2017,
and full availability under its $750 million trade receivables securitization
facility. On July 21, 2017, the company replaced its existing bank revolving
credit facilities with a new five-year $2.5 billion bank revolving credit
facility expiring in July 2022 and a new 364-day $1 billion bank revolving
credit facility expiring in July 2018. 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 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 1-888-282-1746 (confirmation number
8778419) or by visiting MPC's website at
http://www.marathonpetroleum.com and clicking on the "2017 Second-Quarter
Financial Results" link. Replays of the conference call will be available on the
company's website through Thursday, Aug. 10. 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 5,600 independently owned
retail outlets across 19 states. In addition, Speedway LLC, an MPC subsidiary,
owns and operates the nation's second-largest convenience store chain, with
approximately 2,730 convenience stores in 21 states. MPC owns, leases or has
ownership interests in approximately 10,800 miles of crude and light product
pipelines. Through subsidiaries, MPC owns the general partner of MPLX LP, a
midstream master limited partnership. Through MPLX, MPC has ownership interests
in gathering and processing facilities with approximately 5.6 billion cubic feet
per day of gathering capacity, 7.8 billion cubic feet per day of natural gas
processing capacity and 570,000 barrels per day of fractionation capacity. 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;
adverse results in litigation; 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, 2016, 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 an increase of the current yield on common units, 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; adverse results in litigation; 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, 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 could also
have material adverse effects on forward-looking statements. Copies of MPC's
Form 10-K are available on the SEC website, MPC's website at
http://ir.marathonpetroleum.com or by contacting MPC's Investor Relations
office. Copies of MPLX's Form 10-K are available on the SEC website, MPLX's
website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
Consolidated Statements of Income (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per- 2017 2016 2017 2016
share data)
------------ ------------ ------------ -----------
Revenues and other income:
Sales and other operating
revenues (including
consumer excise taxes) $ 18,033 $ 16,809 $ 34,167 $ 29,563
Sales to related parties 147 2 301 3
Income (loss) from equity
method investments 83 (50 ) 140 (28 )
Net gain on disposal of
assets 7 - 12 25
Other income 84 29 127 57
------------ ------------ ------------ -----------
Total revenues and other
income 18,354 16,790 34,747 29,620
Costs and expenses:
Cost of revenues (excludes
items below) 14,175 12,830 27,308 22,531
Purchases from related
parties 150 124 272 231
Inventory market valuation
adjustment - (385 ) - (370 )
Consumer excise taxes 1,926 1,893 3,739 3,719
Impairment expense - 1 - 130
Depreciation and
amortization 521 500 1,057 990
Selling, general and
administrative expenses 439 401 828 779
Other taxes 115 111 223 220
------------ ------------ ------------ -----------
Total costs and expenses 17,326 15,475 33,427 28,230
------------ ------------ ------------ -----------
Income from operations 1,028 1,315 1,320 1,390
Net interest and other
financial income (costs) (158 ) (137 ) (308 ) (279 )
------------ ------------ ------------ -----------
Income before income taxes 870 1,178 1,012 1,111
Provision for income taxes 264 395 305 406
------------ ------------ ------------ -----------
Net income 606 783 707 705
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 17 9 33 9
Noncontrolling interests 74 (27 ) 129 (106 )
------------ ------------ ------------ -----------
Net income attributable to
MPC $ 515 $ 801 $ 545 $ 802
------------ ------------ ------------ -----------
Per-share data
Basic:
Net income attributable to
MPC per share $ 1.00 $ 1.51 $ 1.05 $ 1.52
Weighted average shares: 513 528 519 528
Diluted:
Net income attributable to
MPC per share $ 1.00 $ 1.51 $ 1.04 $ 1.51
Weighted average shares: 517 531 523 531
Dividends paid $ 0.36 $ 0.32 $ 0.72 $ 0.64
Supplemental Statistics (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions) 2017 2016 2017 2016
----------- ----------- ----------- ----------
Income from Operations by
segment
Refining & Marketing((a)(b)) $ 562 $ 1,025 $ 492 $ 939
Speedway((b)) 239 193 374 360
Midstream((a)) 332 253 641 442
Items not allocated to
segments:
Corporate and other
unallocated items((a)) (83 ) (64 ) (165 ) (129 )
Pension settlement expenses (1 ) (2 ) (1 ) (3 )
Litigation (40 ) - (40 ) -
Impairments((c)) 19 (90 ) 19 (219 )
----------- ----------- ----------- ----------
Income from operations 1,028 1,315 1,320 1,390
Net interest and other financial
income (costs) (158 ) (137 ) (308 ) (279 )
----------- ----------- ----------- ----------
Income before income taxes 870 1,178 1,012 1,111
Provision for income taxes 264 395 305 406
----------- ----------- ----------- ----------
Net income 606 783 707 705
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 17 9 33 9
Noncontrolling interests 74 (27 ) 129 (106 )
----------- ----------- ----------- ----------
Net income attributable to MPC $ 515 $ 801 $ 545 $ 802
----------- ----------- ----------- ----------
Capital Expenditures and
Investments
Refining & Marketing $ 180 $ 262 $ 372 $ 505
Speedway 78 70 113 120
Midstream((d)) 494 419 1,564 769
Corporate and Other((e)) 32 36 60 77
----------- ----------- ----------- ----------
Total $ 784 $ 787 $ 2,109 $ 1,471
----------- ----------- ----------- ----------
((a) )In the first quarter of 2017, segment reporting was revised in
connection with the contribution of certain terminal, pipeline and storage
assets to MPLX. The results related to these assets are now presented in the
Midstream segment. Previously, these results were reported in the Refining &
Marketing segment. The results for the pipeline and storage assets were recast
effective January 1, 2015, and the results for the terminal assets were recast
effective April 1, 2016. Prior to these dates these assets were not considered
businesses and therefore there are no financial results from which to recast
segment results.
((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 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.
((c)) Includes MPC's share of a gain related to its investment in the
canceled Sandpiper pipeline project in the three and six months ended June 30,
2017, and impairments of an equity method investment and goodwill in the three
and six months ended June 30, 2016.
((d) )Includes $220 million for the acquisition of the Ozark pipeline and
an investment of $500 million in MarEn Bakken related to the Bakken Pipeline
system in the six months ended June 30, 2017.
((e) )Includes capitalized interest of $14 million, $15 million, $26
million and $32 million respectively.
Supplementary Statistics Three Months Ended Six Months Ended
(Unaudited) (continued) June 30 June 30
2017 2016 2017 2016
----------- ----------- ----------- ----------
MPC Consolidated Refined Product
Sales Volumes (thousands of
barrels per day (mbpd)((a)) 2,370 2,348 2,228 2,253
Refining & Marketing (R&M)
Operating Statistics
R&M refined product sales volume
(mbpd)((b)) 2,358 2,339 2,215 2,244
R&M gross margin (dollars per
barrel)((c)) $ 11.32 $ 12.73 $ 11.47 $ 11.35
Crude oil capacity utilization
(percent)((d)) 103 96 93 93
Refinery throughputs
(mbpd):((e))
Crude oil refined 1,864 1,728 1,688 1,665
Other charge and blendstocks 159 161 179 167
----------- ----------- ----------- ----------
Total 2,023 1,889 1,867 1,832
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 62 61 64 61
WTI-priced crude oil throughput
(percent) 20 21 18 20
Refined product yields
(mbpd):((e))
Gasoline 922 919 895 909
Distillates 665 628 605 599
Propane 38 36 33 34
Feedstocks and special
products 331 249 277 241
Heavy fuel oil 34 34 32 32
Asphalt 70 60 63 53
----------- ----------- ----------- ----------
Total 2,060 1,926 1,905 1,868
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((f))
Planned turnaround and major
maintenance $ 1.01 $ 1.16 $ 1.96 $ 1.77
Depreciation and amortization 1.39 1.43 1.50 1.48
Other manufacturing((g)) 3.84 3.95 4.24 4.05
----------- ----------- ----------- ----------
Total $ 6.24 $ 6.54 $ 7.70 $ 7.30
----------- ----------- ----------- ----------
R&M Operating Statistics by
Region - Gulf Coast
Refinery throughputs
(mbpd):((h))
Crude oil refined 1,147 1,104 999 1,048
Other charge and blendstocks 218 195 220 206
----------- ----------- ----------- ----------
Total 1,365 1,299 1,219 1,254
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 74 74 78 74
WTI-priced crude oil throughput
(percent) 12 9 8 6
Refined product yields
(mbpd):((h))
Gasoline 537 547 518 540
Distillates 432 434 371 404
Propane 27 28 24 26
Feedstocks and special
products 360 282 302 281
Heavy fuel oil 23 23 20 21
Asphalt 19 19 17 14
----------- ----------- ----------- ----------
Total 1,398 1,333 1,252 1,286
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((f))
Planned turnaround and major
maintenance $ 0.91 $ 0.98 $ 2.40 $ 1.77
Depreciation and amortization 1.10 1.08 1.21 1.12
Other manufacturing((g)) 3.45 3.44 3.96 3.59
----------- ----------- ----------- ----------
Total $ 5.46 $ 5.50 $ 7.57 $ 6.48
----------- ----------- ----------- ----------
Supplementary Statistics Three Months Ended Six Months Ended
(Unaudited) (continued) June 30 June 30
2017 2016 2017 2016
------------- ------------ ------------- -----------
R&M Operating Statistics
by Region - Midwest
Refinery throughputs
(mbpd):((h))
Crude oil refined 717 624 689 617
Other charge and
blendstocks 28 36 30 37
------------- ------------ ------------- -----------
Total 745 660 719 654
------------- ------------ ------------- -----------
Sour crude oil throughput
(percent) 42 38 43 39
WTI-priced crude oil
throughput (percent) 34 43 32 43
Refined product yields
(mbpd):((h))
Gasoline 385 372 377 369
Distillates 233 194 234 195
Propane 12 10 10 10
Feedstocks and special
products 56 35 45 34
Heavy fuel oil 12 11 12 11
Asphalt 51 41 46 39
------------- ------------ ------------- -----------
Total 749 663 724 658
------------- ------------ ------------- -----------
Refinery direct operating
costs ($/barrel):((f))
Planned turnaround and
major maintenance $ 1.06 $ 1.38 $ 1.02 $ 1.57
Depreciation and
amortization 1.76 1.98 1.84 2.01
Other manufacturing((g)) 4.13 4.53 4.31 4.44
------------- ------------ ------------- -----------
Total $ 6.95 $ 7.89 $ 7.17 $ 8.02
------------- ------------ ------------- -----------
Speedway Operating
Statistics((i))
Convenience stores at
period-end 2,729 2,773
Gasoline and distillate
sales (millions of
gallons) 1,475 1,547 2,868 3,030
Gasoline and distillate
gross margin (dollars per
gallon)((j)) $ 0.1835 $ 0.1549 $ 0.1704 $ 0.1614
Merchandise sales (in
millions) $ 1,271 $ 1,287 $ 2,398 $ 2,439
Merchandise gross margin
(in millions) $ 371 $ 369 $ 691 $ 699
Merchandise gross margin
percent 29.2 % 28.7 % 28.8 % 28.7 %
Same store gasoline sales
volume (period over
period) (0.5 )% 0.3 % (0.8 )% 0.7 %
Same store merchandise
sales (period over
period)((k)) 2.1 % 2.0 % 2.1 % 2.5 %
Midstream Operating
Statistics
Crude oil and refined
product pipeline
throughputs (mbpd)((l)) 3,439 2,940 3,165 2,873
Terminal throughput
(mbpd)((m)) 1,489 1,503 1,456 1,503
Gathering system
throughput (million cubic
feet per day)((n)) 3,326 3,288 3,255 3,316
Natural gas processed
(million cubic feet per
day)((n)) 6,292 5,529 6,212 5,582
C2 (ethane) + NGLs
fractionated (mbpd)((n)) 387 322 377 321
((a)) Total average daily volumes of refined product sales to wholesale,
branded and retail customers.
((b)) Includes intersegment sales.
((c)) Excludes LCM inventory valuation adjustments. Sales revenue less cost
of refinery inputs and purchased products, divided by total refinery
throughputs. Comparable prior period information for gross margin has been
recast in connection with the contribution of certain pipeline assets to MPLX on
March 1, 2017.
((d)) Based on calendar day capacity, which is an annual average that
includes downtime for planned maintenance and other normal operating activities.
((e)) Excludes inter-refinery volumes of 87 mbpd and 70 mbpd for second
quarter 2017 and 2016, respectively and 71 mbpd and 76 mbpd for the six months
ended June 30, 2017 and 2016, respectively.
((f)) Per barrel of total refinery throughputs.
((g)) Includes utilities, labor, routine maintenance and other operating
costs.
((h)) Includes inter-refinery transfer volumes.
((i) )Second quarter and year-to-date 2017 operating statistics do not
reflect any information for the 41 travel centers contributed to PFJ Southeast,
whereas they are reflected in the second quarter and year-to-date 2016 operating
statistics.
((j)) Excludes LCM inventory valuation adjustments. 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.
((l)) Includes common-carrier pipelines and private pipelines contributed
to MPLX, excluding equity method investments.
((m) )Includes the results of the terminal assets contributed to MPLX from
the date the assets became a business, April 1, 2016.
((n) )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 Six Months Ended
June 30 June 30
(In millions) 2017 2016 2017 2016
----------- ----------- ------------ ----------
Segment EBITDA((a))
Refining & Marketing((b)(c)) $ 834 $ 1,286 $ 1,031 $ 1,473
Speedway((c)) 304 262 503 492
Midstream((b)) 500 406 1,000 735
----------- ----------- ------------ ----------
Total Segment EBITDA((a)) 1,638 1,954 2,534 2,700
Total segment depreciation &
amortization (505 ) (483 ) (1,027 ) (959 )
Items not allocated to
segments((b)(d)) (105 ) (156 ) (187 ) (351 )
----------- ----------- ------------ ----------
Income from operations 1,028 1,315 1,320 1,390
Net interest and other
financial income (costs) (158 ) (137 ) (308 ) (279 )
----------- ----------- ------------ ----------
Income before income taxes 870 1,178 1,012 1,111
Income tax provision 264 395 305 406
----------- ----------- ------------ ----------
Net income 606 783 707 705
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 17 9 33 9
Noncontrolling interests 74 (27 ) 129 (106 )
----------- ----------- ------------ ----------
Net income attributable to MPC $ 515 $ 801 $ 545 $ 802
----------- ----------- ------------ ----------
((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)) In the first quarter of 2017, segment reporting was revised in
connection with the contribution of certain terminal, pipeline and storage
assets to MPLX. The results related to these assets are now presented in the
Midstream segment. Previously, these results were reported in the Refining &
Marketing segment. The results for the pipeline and storage assets were recast
effective January 1, 2015, and the results for the terminal assets were recast
effective April 1, 2016. Prior to these dates these assets were not considered
businesses and therefore there are no financial results from which to recast
segment results.
((c) )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.
((d) )Includes charges for estimated losses of $40 million related to
litigation and MPC's share of a gain related to its investment in the canceled
Sandpiper pipeline project of $19 million in the three and six months ended June
30, 2017 and 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
(In millions) 2017 2017
------------ -----------
Cash and cash equivalents $ 1,450 $ 2,167
MPLX debt 6,667 6,655
Total consolidated debt 12,606 12,598
Redeemable noncontrolling interest 1,000 1,000
Equity 19,596 19,797
Debt-to-total-capital ratio (percent) 38 38
Shares outstanding 506 519
Cash provided from operations (quarter ended) $ 849 $ 1,113
MPC Q2 2017 Earnings Release:
http://hugin.info/147922/R/2123418/809903.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: 27.07.2017 - 12:35 Uhr
Sprache: Deutsch
News-ID 554234
Anzahl Zeichen: 51065
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
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