Marathon Petroleum Corp. Reports Third-Quarter 2017 Results
(Thomson Reuters ONE) -
* Reported third-quarter earnings of $903 million, or $1.77 per diluted share
* Achieved strong refining throughput in the third quarter despite Gulf Coast
hurricanes
* Reported record Midstream segment results, primarily driven by MPLX
* Continued execution of strategic actions, including completion of Speedway
evaluation and dropdown of joint-interest ownership in certain assets to
MPLX for $1.05 billion
* Offered remaining dropdown to MPLX; evaluation underway
* Returned $654 million of capital to shareholders, including $452 million in
share repurchases
FINDLAY, Ohio, Oct. 26, 2017 - Marathon Petroleum Corp. (NYSE: MPC) today
reported 2017 third-quarter earnings of $903 million, or $1.77 per diluted
share. This compares with $145 million, or $0.27 per diluted share, in the third
quarter of 2016.
"All segments of the business reported strong results in the quarter,
highlighting the earnings power of our integrated model," said Gary R. Heminger,
chairman and chief executive officer. "We operated very well and were able to
capture strong crack spreads. I am particularly proud of our dedicated employees
for operating our facilities safely and reliably to meet the needs of our
customers and the market under extremely challenging weather conditions during
the recent hurricanes.
"In addition to our continued focus on driving strong operational and financial
results, MPC is delivering on the strategic actions designed to further enhance
shareholder value over the long term," Heminger added.
Since the beginning of the year, MPC has contributed assets, including the
third-quarter dropdown transaction, to MPLX LP (NYSE: MPLX) with a combined
transaction value of $3.065 billion, resulting in consideration of $1.7 billion
in after-tax cash proceeds and 32 million MPLX units. The company used a
substantial portion of after-tax cash proceeds from the dropdowns to return $2.2
billion of capital to shareholders via dividends and share repurchases year-to-
date. As a continuing demonstration of this commitment to create long-term value
for shareholders, the company expects to repurchase at least $550 million of its
shares in the fourth quarter.
Also as part of the strategic actions, a full and thorough review of Speedway
has been completed. The company's board of directors, based on the
recommendation from its independent special committee, was unanimous in its
conclusion that the greatest long-term value for shareholders is optimized with
Speedway remaining a fully integrated business within MPC.
Continuing with the execution of its strategic actions, the company has offered
the remaining identified dropdown to MPLX and the offer is currently under
review by the conflicts committee of the MPLX board of directors. The dropdown
includes refining logistics assets and fuels distribution services, with total
projected annual earnings before interest, taxes, depreciation and amortization
(EBITDA) of $1 billion. The transaction is expected to close in the first
quarter of 2018. Further return of capital to shareholders is planned with the
after-tax cash proceeds from the remaining dropdown, consistent with maintaining
MPC's current investment grade credit profile. MPC also expects to exchange its
general partner (GP) economic interests in MPLX for newly issued MPLX common
units in conjunction with the closing of the dropdown. This exchange will
provide a clear valuation of MPC's GP interest and is expected to reduce MPLX's
cost of capital for the long term.
MPC's Midstream segment, which largely reflects the results of MPLX, reported
record financial results in the quarter, contributing $355 million in segment
income from operations. The increase over the third quarter of last year was
primarily due to record gathered, processed and fractionated volumes.
"MPLX delivered another exceptional quarter, continuing its track record of
operational excellence and strong financial results," Heminger said. "With
visibility to strong growth opportunities through a robust portfolio of organic
projects and strong distribution coverage, MPLX is well-positioned to be a
significant source of long-term value for our investors, which will be further
enhanced once the exchange of MPC's GP economic interests is complete."
MPLX continues to build on its strong footprint in the Marcellus, Permian and
STACK shale plays. Total Northeast processing capacity has increased to
approximately 5.8 billion cubic feet per day (cfd), up 400 million cfd, an
increase of 7 percent, since the beginning of the year. Additionally, the
partnership expects to add approximately 1.5 billion cfd of processing capacity,
an increase of 19 percent, in 2018. Approximately 1.2 billion cfd of that
increased capacity is in the Northeast, and approximately 300 million cfd is in
the Southwest.
On the retail side, Speedway reported strong third-quarter segment income from
operations of $209 million. Results were driven by solid light product and
merchandise gross margins. Speedway's new joint venture with Pilot Flying J also
favorably impacted the quarter.
"Speedway continues to deliver top-tier operational and financial performance
and has significant opportunities for growth over the long term," Heminger said.
"This performance, and its contribution to MPC, is further validation of
Speedway's importance to our integrated model and its ability to generate
substantial returns for our shareholders. We will continue to focus resources
and capital to Speedway to drive additional value over the long term."
The Refining & Marketing segment reported third-quarter segment income from
operations of $1.097 billion, an $845 million increase from the third quarter of
2016. Results were largely driven by higher LLS-based blended crack spreads and
the ability to maintain high utilization rates, with refinery throughputs
exceeding 2 million barrels per day. Multiple refinery production records,
including record crude throughput during the month of August, were achieved
during the quarter in spite of the hurricanes in the Gulf Coast. These benefits
were partially offset by less favorable product price realizations versus
benchmark spot prices.
"We are encouraged by improving market fundamentals and prospects for a more
balanced supply-and-demand environment going forward," Heminger said. "With our
fully integrated and flexible system, strategically located assets that provide
excellent optionality, and a focus on operational excellence, we believe we have
a sustainable long-term competitive advantage that drives real value for
shareholders over the long term. We also believe the execution of the final
steps in our strategic actions will be important sources of value and cash flow,
further supporting MPC's long-term value proposition for investors."
Segment Results
Total income from operations was $1.58 billion in the third quarter of 2017,
compared with $435 million in the third quarter of 2016.
Three Months Ended
September 30
(In millions) 2017 2016
----------- ---------
Income from Operations by Segment
Refining & Marketing((a)) $ 1,097 $ 252
Speedway 209 209
Midstream((a)) 355 310
Items not allocated to segments:
Corporate and other unallocated items((a)) (86 ) (65 )
Pension settlement expenses (1 ) (4 )
Litigation - -
Impairments 2 (267 )
----------- ---------
Income from operations $ 1,576 $ 435
----------- ---------
((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 $1.1 billion in
the third quarter of 2017, compared with $252 million in the same quarter of
2016. The increase in the segment results for the third-quarter 2017 from the
third-quarter of 2016 was primarily a result of a $3.47 per barrel increase in
the R&M gross margin. This favorable effect was due to significantly higher
blended LLS-based crack spreads partially offset by 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 to $12.69 per
barrel in the third quarter of 2017 from $8.08 per barrel in the third quarter
of 2016, primarily due to an increase in the USGC crack spread. Refinery
throughputs exceeded 2 million barrels per day in the third quarter of 2017 and
crude oil capacity utilization was 102 percent for the third quarter of 2017 as
compared to 100 percent for the third quarter of 2016.
Speedway
Speedway segment income from operations was $209 million in both the third
quarter of 2017 and the third quarter of 2016. The comparable third-quarter-to-
third-quarter segment results reflect the benefits of Speedway's new joint
venture with Pilot Flying J and reduced operating expenses, offset by lower
light product gross margin, primarily driven by lower sales volume, and lower
merchandise gross margin. Speedway's new joint venture with Pilot Flying J
commenced operations in the fourth quarter of 2016. Speedway's light product
margin was 17.72 cents per gallon in the third quarter of 2017 compared with
17.73 cents per gallon in the third quarter of 2016.
Midstream
Midstream segment income from operations, which primarily reflects the results
of MPLX, was $355 million in the third quarter of 2017, compared with $310
million for the third quarter of 2016. The increase was primarily due to record
gathered, processed and fractionated volumes at MPLX.
Items Not Allocated to Segments
Corporate and other unallocated expenses of $86 million in the third quarter of
2017 were $21 million higher than the third quarter of 2016, largely due to
higher corporate expenses and an increase in employee benefit expenses.
Impairments in the third quarter of 2016 included a non-cash charge of $267
million related to the impairment of MPC's equity investment in the canceled
Sandpiper Pipeline project.
Strong Financial Position and Liquidity
On Sept. 30, 2017, the company had $2.1 billion of cash and cash equivalents,
excluding MPLX's cash and cash equivalents of $3 million, $2.5 billion available
under a revolving credit agreement, $1 billion available under a 364-day bank
revolving credit facility and full availability under its $750 million trade
receivables securitization facility. The company's liquidity should provide it
with sufficient flexibility to meet its day-to-day operational needs and
continue its balanced approach to investing in the business and returning
capital to shareholders.
Conference Call
At 9 a.m. EDT today, MPC will hold a 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 1-888-989-4720 (confirmation number
4852094) or by visiting MPC's website at
http://www.marathonpetroleum.com and clicking on the "2017 Third-Quarter
Financial Results" link. Replays of the conference call will be available on the
company's website through Thursday, Nov. 9. 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 20 states and the District of Columbia. 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 oil 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 5.9 billion cubic feet per day of gathering capacity, 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 and our
value creation plans. 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; our ability to generate sufficient income and cash flow to effect the
intended share repurchases, including within the expected timeframe; our ability
to manage disruptions in credit markets or changes to our credit rating; the
potential impact on our share price if we are unable to effect the intended
share repurchases; 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
and/or the general partner economic interests; 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; the impact of adverse market conditions affecting MPC's
and MPLX's midstream businesses; 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 and/or the general partner economic interests; the
adequacy of MPLX's capital resources and liquidity, including, but not limited
to, availability of sufficient cash flow to pay distributions and access to debt
to fund anticipated dropdowns on commercially reasonable terms, 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 Nine Months Ended
September 30 September 30
(In millions, except per- 2017 2016 2017 2016
share data)
------------ ------------ ------------ -----------
Revenues and other income:
Sales and other operating
revenues (including
consumer excise taxes) $ 19,053 $ 16,616 $ 53,220 $ 46,179
Sales to related parties 157 2 458 5
Income (loss) from equity
method investments 84 (208 ) 224 (236 )
Net gain on disposal of
assets - 1 12 26
Other income 92 49 219 106
------------ ------------ ------------ -----------
Total revenues and other
income 19,386 16,460 54,133 46,080
Costs and expenses:
Cost of revenues (excludes
items below) 14,605 12,944 41,913 35,475
Purchases from related
parties 148 128 420 359
Inventory market valuation
adjustment - - - (370 )
Consumer excise taxes 2,012 1,914 5,751 5,633
Impairment expense - - - 130
Depreciation and
amortization 517 507 1,574 1,497
Selling, general and
administrative expenses 412 420 1,286 1,199
Other taxes 116 112 339 332
------------ ------------ ------------ -----------
Total costs and expenses 17,810 16,025 51,283 44,255
------------ ------------ ------------ -----------
Income from operations 1,576 435 2,850 1,825
Net interest and other
financial income (costs) (157 ) (141 ) (465 ) (420 )
------------ ------------ ------------ -----------
Income before income taxes 1,419 294 2,385 1,405
Provision for income taxes 415 75 706 481
------------ ------------ ------------ -----------
Net income 1,004 219 1,679 924
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 16 49 25
Noncontrolling interests 85 58 214 (48 )
------------ ------------ ------------ -----------
Net income attributable to
MPC $ 903 $ 145 $ 1,416 $ 947
------------ ------------ ------------ -----------
Per-share data
Basic:
Net income attributable to
MPC per share $ 1.79 $ 0.28 $ 2.75 $ 1.79
Weighted average shares: 504 527 514 528
Diluted:
Net income attributable to
MPC per share $ 1.77 $ 0.27 $ 2.73 $ 1.78
Weighted average shares: 508 530 518 531
Dividends paid $ 0.40 $ 0.36 $ 1.12 $ 1.00
Supplemental Statistics (Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In millions) 2017 2016 2017 2016
----------- ---------- ----------- ----------
Income from Operations by segment
Refining & Marketing((a)(b)) $ 1,097 $ 252 $ 1,589 $ 1,191
Speedway((b)) 209 209 583 569
Midstream((a)) 355 310 996 752
Items not allocated to
segments:
Corporate and other unallocated
items((a)) (86 ) (65 ) (251 ) (194 )
Pension settlement expenses (1 ) (4 ) (2 ) (7 )
Litigation - - (86 ) -
Impairments((c)) 2 (267 ) 21 (486 )
----------- ---------- ----------- ----------
Income from operations 1,576 435 2,850 1,825
Net interest and other financial
income (costs) (157 ) (141 ) (465 ) (420 )
----------- ---------- ----------- ----------
Income before income taxes 1,419 294 2,385 1,405
Provision for income taxes 415 75 706 481
----------- ---------- ----------- ----------
Net income 1,004 219 1,679 924
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 16 49 25
Noncontrolling interests 85 58 214 (48 )
----------- ---------- ----------- ----------
Net income attributable to MPC $ 903 $ 145 $ 1,416 $ 947
----------- ---------- ----------- ----------
Capital Expenditures and
Investments
Refining & Marketing $ 198 $ 251 $ 570 $ 756
Speedway 108 71 221 191
Midstream((d)) 453 410 2,017 1,179
Corporate and Other((e)) 32 29 92 106
----------- ---------- ----------- ----------
Total $ 791 $ 761 $ 2,900 $ 2,232
----------- ---------- ----------- ----------
((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.
((b) )Includes 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 income by $345 million and $25 million,
respectively, for the nine months ended September 30, 2016.
((c)) The three and nine months ended September 30, 2017, includes MPC's
share of gains related to the sale of assets remaining from the Sandpiper
pipeline project. The three and nine months ended September 30, 2016, includes
impairments of equity method investments. The nine months ended September 30,
2016, also includes an impairment of goodwill.
((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 nine months ended September 30, 2017.
((e) )Includes capitalized interest of $13 million, $15 million, $39
million and $47 million respectively.
Supplementary Statistics Three Months Ended Nine Months Ended
(Unaudited) (continued) September 30 September 30
2017 2016 2017 2016
----------- ----------- ----------- ----------
MPC Consolidated Refined Product
Sales Volumes (thousands of
barrels per day (mbpd)((a)) 2,357 2,316 2,272 2,274
Refining & Marketing (R&M)
Operating Statistics
R&M refined product sales volume
(mbpd)((b)) 2,357 2,307 2,263 2,265
R&M gross margin (dollars per
barrel)((c)) $ 14.14 $ 10.67 $ 12.42 $ 11.11
Crude oil capacity utilization
(percent)((d)) 102 100 96 95
Refinery throughputs
(mbpd):((e))
Crude oil refined 1,845 1,791 1,741 1,708
Other charge and blendstocks 172 135 176 156
----------- ----------- ----------- ----------
Total 2,017 1,926 1,917 1,864
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 57 59 61 60
WTI-priced crude oil throughput
(percent) 23 20 20 20
Refined product yields
(mbpd):((e))
Gasoline 939 907 910 908
Distillates 673 647 627 616
Propane 38 38 35 35
Feedstocks and special
products 298 253 285 245
Heavy fuel oil 45 43 36 36
Asphalt 67 70 64 58
----------- ----------- ----------- ----------
Total 2,060 1,958 1,957 1,898
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((f))
Planned turnaround and major
maintenance $ 1.20 $ 1.62 $ 1.69 $ 1.72
Depreciation and amortization 1.34 1.42 1.44 1.46
Other manufacturing((g)) 3.83 4.01 4.10 4.03
----------- ----------- ----------- ----------
Total $ 6.37 $ 7.05 $ 7.23 $ 7.21
----------- ----------- ----------- ----------
R&M Operating Statistics by
Region - Gulf Coast
Refinery throughputs
(mbpd):((h))
Crude oil refined 1,123 1,073 1,041 1,057
Other charge and blendstocks 217 185 219 199
----------- ----------- ----------- ----------
Total 1,340 1,258 1,260 1,256
----------- ----------- ----------- ----------
Sour crude oil throughput
(percent) 69 72 75 73
WTI-priced crude oil throughput
(percent) 14 8 10 7
Refined product yields
(mbpd):((h))
Gasoline 538 511 525 530
Distillates 438 411 393 407
Propane 25 27 25 26
Feedstocks and special
products 326 289 310 283
Heavy fuel oil 31 30 24 24
Asphalt 19 17 17 15
----------- ----------- ----------- ----------
Total 1,377 1,285 1,294 1,285
----------- ----------- ----------- ----------
Refinery direct operating costs
($/barrel):((f))
Planned turnaround and major
maintenance $ 0.90 $ 2.05 $ 1.86 $ 1.87
Depreciation and amortization 1.05 1.14 1.15 1.13
Other manufacturing((g)) 3.52 3.70 3.81 3.62
----------- ----------- ----------- ----------
Total $ 5.47 $ 6.89 $ 6.82 $ 6.62
----------- ----------- ----------- ----------
Supplementary Statistics Three Months Ended Nine Months Ended
(Unaudited) (continued) September 30 September 30
2017 2016 2017 2016
------------- ------------- ------------- -----------
R&M Operating Statistics
by Region - Midwest
Refinery throughputs
(mbpd):((h))
Crude oil refined 722 718 700 651
Other charge and
blendstocks 35 39 31 37
------------- ------------- ------------- -----------
Total 757 757 731 688
------------- ------------- ------------- -----------
Sour crude oil throughput
(percent) 38 39 41 39
WTI-priced crude oil
throughput (percent) 38 39 34 41
Refined product yields
(mbpd):((h))
Gasoline 401 396 385 378
Distillates 235 236 234 209
Propane 14 13 11 11
Feedstocks and special
products 50 51 47 40
Heavy fuel oil 15 13 13 12
Asphalt 48 53 47 43
------------- ------------- ------------- -----------
Total 763 762 737 693
------------- ------------- ------------- -----------
Refinery direct operating
costs ($/barrel):((f))
Planned turnaround and
major maintenance $ 1.60 $ 0.72 $ 1.22 $ 1.26
Depreciation and
amortization 1.72 1.72 1.80 1.90
Other
manufacturing((g)) 3.96 4.04 4.19 4.29
------------- ------------- ------------- -----------
Total $ 7.28 $ 6.48 $ 7.21 $ 7.45
------------- ------------- ------------- -----------
Speedway Operating
Statistics((i))
Convenience stores at
period-end 2,734 2,773
Gasoline and distillate
sales (millions of
gallons) 1,464 1,575 4,332 4,605
Gasoline and distillate
gross margin (dollars per
gallon)((j)) $ 0.1772 $ 0.1773 $ 0.1727 $ 0.1668
Merchandise sales (in
millions) $ 1,295 $ 1,338 $ 3,693 $ 3,777
Merchandise gross margin
(in millions) $ 374 $ 386 $ 1,065 $ 1,085
Merchandise gross margin
percent 28.9 % 28.9 % 28.8 % 28.7 %
Same store gasoline sales
volume (period over
period) (3.1 )% (0.6 )% (1.6 )% 0.2 %
Same store merchandise
sales (period over
period)((k)) 0.3 % 4.0 % 1.5 % 3.0 %
Midstream Operating
Statistics
Crude oil and refined
product pipeline
throughputs (mbpd)((l)) 3,562 3,113 3,299 2,953
Terminal throughput
(mbpd)((m)) 1,496 1,517 1,470 1,510
Gathering system
throughput (million cubic
feet per day)((n)) 3,729 3,306 3,415 3,313
Natural gas processed
(million cubic feet per
day)((n)) 6,581 5,906 6,336 5,691
C2 (ethane) + NGLs
fractionated (mbpd)((n)) 397 348 384 330
((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 80 mbpd and 89 mbpd for third
quarter 2017 and 2016, respectively and 74 mbpd and 80 mbpd for the nine months
ended September 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) )Third 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 third 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 Nine Months Ended
September 30 September 30
(In millions) 2017 2016 2017 2016
----------- ----------- ------------ -----------
Segment EBITDA((a))
Refining & Marketing((b)(c)) $ 1,363 $ 519 $ 2,394 $ 1,992
Speedway((c)) 277 280 780 772
Midstream((b)) 524 465 1,524 1,200
----------- ----------- ------------ -----------
Total Segment EBITDA((a)) 2,164 1,264 4,698 3,964
Total segment depreciation &
amortization (503 ) (493 ) (1,530 ) (1,452 )
Items not allocated to
segments((b)(d)) (85 ) (336 ) (318 ) (687 )
----------- ----------- ------------ -----------
Income from operations 1,576 435 2,850 1,825
Net interest and other
financial income (costs) (157 ) (141 ) (465 ) (420 )
----------- ----------- ------------ -----------
Income before income taxes 1,419 294 2,385 1,405
Income tax provision 415 75 706 481
----------- ----------- ------------ -----------
Net income 1,004 219 1,679 924
Less net income (loss)
attributable to:
Redeemable noncontrolling
interest 16 16 49 25
Noncontrolling interests 85 58 214 (48 )
----------- ----------- ------------ -----------
Net income attributable to MPC $ 903 $ 145 $ 1,416 $ 947
----------- ----------- ------------ -----------
((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 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.
((c) )Includes 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 income by $345 million and $25 million,
respectively, for the nine months ended September 30, 2016.
((d) )The three months ended September 30, 2017, includes MPC's share of
gains related to the sale of assets remaining from the Sandpiper pipeline
project of $2 million. The nine months ended September 30, 2017, includes
charges for estimated losses of $86 million related to litigation and MPC's
share of gains related to the sale of assets from the Sandpiper pipeline project
of $21 million. The three and nine months ended September 30, 2016, includes
impairment charges of $267 million and $486 million, respectively.
Select Financial Data (Unaudited)
September June 30
30 2017
(In millions) 2017
------------ -----------
Cash and cash equivalents $ 2,088 $ 1,450
MPLX debt 6,849 6,667
Total consolidated debt 12,782 12,606
Redeemable noncontrolling interest 1,000 1,000
Equity 19,802 19,564
Debt-to-total-capital ratio (percent) 38 38
Shares outstanding 498 506
Cash provided from operations (quarter ended) $ 1,901 $ 849
MPC Q3 2017 Earnings Release:
http://hugin.info/147922/R/2144739/822043.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: 26.10.2017 - 12:35 Uhr
Sprache: Deutsch
News-ID 565454
Anzahl Zeichen: 50943
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
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"Marathon Petroleum Corp. Reports Third-Quarter 2017 Results"
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