Fourth-Quarter 2017 Earnings Conference Call and Webcast. February 1, 2018

Transcription

1 Fourth-Quarter 2017 Earnings Conference Call and Webcast February 1,

2 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 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 ability to consummate the strategic initiatives discussed herein; our ability to achieve the strategic and other objectives related to the strategic initiatives discussed herein; our ability to manage disruptions in credit markets or changes to our credit rating; adverse changes in laws including with respect to tax and regulatory matters; 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 ability to consummate the strategic initiatives discussed herein; 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; 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; our ability to manage disruptions in credit markets or changes to our credit rating; 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 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 or by contacting MPLX s Investor Relations office. Non-GAAP Financial Measures Adjusted EBITDA, cash provided from operations before changes in working capital, refining marketing margin, Speedway total margin and Speedway segment EBITDA are non-gaap financial measures provided in this presentation. Reconciliations to the nearest GAAP financial measures are included in the Appendix to this presentation. These non-gaap financial measures are not defined by GAAP and should not be considered in isolation or as an alternative to net income attributable to MPC, net cash provided by (used in) operating, investing and financing activities, Refining and Marketing income from operations, Speedway income from operations or other financial measures prepared in accordance with GAAP. The EBITDA forecasts related to certain projects were determined on an EBITDA-only basis. Accordingly, information related to the elements of net income, including tax and interest, are not available and, therefore, reconciliations of these non-gaap financial measures to the nearest GAAP financial measures have not been provided. 2

3 Opening Comments Reported strong financial and operational performance across the business Announced closing of transactions with MPLX completing planned strategic actions Announced 2018 capital plans including investments to grow Midstream and Speedway and margin-enhancing investments in Refining and Marketing Expectations for 2018 macro environment Increased quarterly dividend by 15 percent, to $0.46 per share Returned $3.1 billion of capital to shareholders in 2017; with $945 million returned in the fourth quarter, including $750 million in share repurchases 3

4 Fourth-Quarter and Full-Year Highlights Fourth-quarter earnings of $2.02 billion ($4.09 per diluted share); full-year earnings of $3.43 billion ($6.70 per diluted share) Fourth-quarter earnings reflect a net benefit of $1.5 billion due to tax reform Midstream reported record segment results, primarily driven by MPLX Speedway achieved record full-year performance Refining and Marketing reported strong full-year segment income largely driven by favorable crack spreads and high utilization rates 4

5 Fourth-Quarter and Full-Year 2017 Earnings $MM 3,500 3,000 2,500 2,000 1,500 1, $1, Earnings* $3,432 2,016 1, Q Q Earnings* $2,016 MM $227 MM $3,432 MM $1,174 MM Earnings per Diluted Share* $4.09 $0.43 $6.70 $2.21 $/Share 3Q YTD Q Earnings per Diluted Share* $6.70 $ *Earnings refer to Net Income attributable to MPC. Earnings for the fourth quarter include a tax benefit of approximately $1.5 billion (or $3.04 and $2.93 per diluted share for the fourth quarter and full year, respectively) as a result of re-measuring certain net deferred tax liabilities using the lower corporate tax rate enacted in the fourth quarter. Earnings also include pretax benefits/(charges) of $9 MM, $1 MM, ($68) MM, ($271) MM, ($92) MM and ($130) MM in 4Q 2017, 3Q 2017, 2Q 2017, 3Q 2016, 2Q 2016 and 1Q 2016, respectively, related to items not allocated to segment results including pension, litigation and impairment. In addition, earnings include pretax lower-of-cost or market inventory benefits /(charges) of $385 MM and ($15) MM in 2Q 2016 and 1Q 2016, respectively. 5

6 Earnings* 4Q 2017 vs. 4Q 2016 Variance Analysis 2,200 1,201 2,000 1,499 2,016 $MM 1,001 1, (16) 47 (31) (24) (205) (47) 1 4Q 2016 Refining & Marketing** Speedway Midstream** Items not Allocated to Segments** Interest and Other Financing Costs Income Taxes Noncontrolling Interests Tax Legislation*** 4Q 2017 *Earnings refer to Net Income attributable to MPC. **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, Prior to these dates, these assets were not considered businesses and therefore there are no financial results from which to recast segment results. ***Earnings for the fourth quarter include a tax benefit of approximately $1.5 billion (or $3.04 and $2.93 per diluted share for the fourth quarter and full year, respectively) as a result of re-measuring certain net deferred tax liabilities using the lower corporate tax rate enacted in the fourth quarter. 6

7 Refining & Marketing Segment Income 4Q 2017 vs. 4Q 2016 Variance Analysis 1, $MM (53) (37) (47) (113) (23) Crude 0 Product (294) Volumetric *4Q 2016 **LLS Crack **RIN/CBOB Adjustment **Sweet/ Sour Diff. **LLS/WTI Diff. **LLS Prompt vs. Delivered **Market Structure Other Margin Direct Operating Costs Other 4Q 2017 *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, Prior to these dates, these assets were not considered businesses and therefore there are no financial results from which to recast segment results. **Based on market indicators using actual volumes. 7

8 Refining & Marketing Segment Income 2017 vs Variance Analysis 4,000 3,500 3,000 2,271 (153) (188) (350) $MM 2,500 2,000 1,500 1,357 (505) Crude (39) Product (827) Volumetric 361 (345) (125) 50 2,321 1, * **LLS Crack **RIN/CBOB Adjustment **Sweet/ Sour Diff. **LLS/WTI Diff. **LLS Prompt vs. Delivered **Market Structure Other Margin Lower of Cost or Market Direct Operating Costs Other 2017 *We changed our operating segment presentation in the first quarter of 2016 in connection with the contribution of our inland marine business to MPLX; our inland marine business, which was previously included in Refining & Marketing, is now included in Midstream. Comparable prior period information has been recast to reflect our revised segment presentation. **Based on market indicators using actual volumes 8

9 Speedway Segment Income Variance Analysis $MM Q 2017 vs. 4Q 2016 (13) (22) Q 2016 Light Product Margin Merchandise Margin Other* 4Q vs (1) (33) (25) $MM Light Product Margin Merchandise Margin Lower of Cost or Market Other* 2017 *Primarily includes income from equity investment and operating expenses. 9

10 Midstream Segment Income Variance Analysis $MM Q 2017 vs. 4Q Q 2016 MPLX* MPC Retained Equity and Other Affiliates* (26) (15) 343 Other** 4Q 2017 $MM 1,500 1, , vs (8) 11 1, MPLX* MPC Retained Equity and Other Affiliates* Other** 2017 *In the 4Q and full-year results, MPLX includes approximately $21 million of equity method income that prior to September 1, 2017 would have been included in the MPC Retained Equity and Other Affiliates column. **Primarily reflects results of MPC retained undivided interests in pipeline systems. 10

11 Total Consolidated Cash Flow 4Q ,000 5,000 1, $MM 4,000 3,000 2,000 1,425 (879) (945) 2,088 (189) 117 3,011 1, /30/2017 Cash Balance Operating Cash Flow before Working Capital Working Capital Net Debt Cash Capital Expenditures and Investments Return of Capital to Shareholders* Distributions to Noncontrolling Interests Other 12/31/2017 Cash Balance *$195 MM dividends plus $750 MM share repurchases 11

12 Liquidity and Capitalization/Select Cash-Flow Data As of December 31, 2017 ($MM except ratio data) ($MM) 2017 For the Quarter: 4Q 3Q 2Q 1Q Cash provided by operations 2,746 1, ,113 Cash provided by operations before changes in working capital (c) 1,425 1, (a) Adjustments made to exclude MPLX debt (all non-recourse) and the public portion of MPLX equity (b) Calculated using face value of total debt and adjusted EBITDA. Refer to appendix for reconciliation (c) Non-GAAP. Refer to appendix for reconciliation MPC Consolidated MPLX Adjustments (a) MPC Excluding MPLX Debt 12,946 6,946 6,000 Mezzanine equity 1,000 1,000 - Equity 20,828 8,379 12,449 Total capitalization 34,774 16,325 18,449 Debt-to-capital ratio (book) 37% - 33% Cash and cash equivalents 3, ,006 Debt to LTM Adjusted EBITDA (b) 2.2x - 1.4x Debt to LTM Adjusted EBITDA, w/ MPLX LP distributions (b) N/A - 1.3x 12

13 Illustrative Impact to Refining & Marketing Segment Fuels Distribution and Refinery Logistics Dropdown Direct Operating Costs to exclude costs related to refining logistics assets Other R&M Expenses to include fees paid to MPLX for fuels distribution services and refinery logistics assets; corresponding income to be reflected in Midstream segment No change to R&M Margin Net annual increase in total R&M expenses of ~$1 B expected; corresponding income to be reflected in Midstream segment 13

14 First-Quarter 2018 Outlook Crude Throughput* Other Charge/ Feedstocks Throughput* Total Throughput* Percent of WTI-priced Crude Sour Crude Oil Throughput Percentage Turnaround and Major Maintenance Depreciation and Amortization Other Manufacturing Cost** Total Direct Operating Costs Corporate and Other Unallocated Items*** in MBPD Refinery Direct Operating Costs ($/BBL of total throughput) Projected 1Q Q 2017 GC Region 1, ,225 17% 61% $3.25 $1.10 $3.85 $8.20 MW Region % 37% $1.15 $1.85 $4.20 $7.20 MPC Total 1, ,900 28% 51% $2.50 $1.40 $4.00 $7.90 $90 MM GC Region ,072 4% 84% $4.31 $1.35 $4.62 $10.28 MW Region % 45% $0.98 $1.93 $4.50 $7.41 MPC Total 1, ,708 15% 67% $3.10 $1.63 $4.72 $9.45 $82 MM 1Q 2018 projections in the table above for Total Direct Operating Costs have been adjusted for the February 1 dropdown While guidance is not provided for Other R&M expenses, for 1Q 2018 we expect a net increase of ~$230 MM resulting from the February 1 dropdown, including fees paid to MPLX 1Q 2017 has not been recast for the February 1, 2018 dropdown *Region throughput data includes inter-refinery transfers, but MPC totals exclude transfers **Includes utilities, labor, routine maintenance and other operating costs ***Actuals have been recast in connection with the contribution of certain terminal, pipeline and storage assets to MPLX on March 1,

15 Appendix 15

16 2018 Capital Outlook Excluding Potential Future Acquisitions 60% MPLX 24% Refining & Marketing MPC excluding MPLX ~$1.6 B Refining & Marketing (R&M) $950 MM Maintenance ~$550 MM Speedway $530 MM Other $100 MM 3% Other 13% Speedway MPLX ~$2.4 B Growth ~$2.2 B Maintenance $190 MM 16

17 2018 Speedway Capital Plan Industry Leader with Significant Growth Opportunities Planned investment of ~$530 MM Build upon competitive position to grow fuel and merchandise sales Focus on expanding food service sales and margin on remodels and rebuilds Target growth opportunities in existing and contiguous markets 17

18 2018 Refining and Marketing Capital Plan ~$400 MM of growth and margin enhancing investments with estimated returns in excess of 20% STAR Program $1.5 B multi-year staged investment ~$150 MM spent to date with ~$155 MM planned in 2018 Increase residual oil processing, revamp crude unit, supports full integration of Galveston Bay and Texas City refineries Completed in phases between Additional $190 MM for growth and margin enhancing projects with strong returns, such as: Garyville diesel maximization Garyville crude processing and optionality Robinson FCC/Alky optimization Garyville coker project ~$207 MM total investment, ~$55 MM in 2018 Installing larger drums to increase coking capacity 2020 est. completion 18

19 MPLX 2018 Capital Outlook Forecast organic growth capital of ~$2.2 B* ~60% Marcellus ~5% Utica ~20% Southwest Natural gas, gas liquids and crude oil infrastructure (Marcellus, Utica and Southwest) Eleven additional plants expected to complete by end of 2018 ~1.5 Bcf/d processing capacity ~100 MBPD fractionation capacity Northeast and Southwest gathering ~15% Crude oil and refined product infrastructure Crude Oil and refined product infrastructure Ozark and Wood River-to-Patoka Pipeline expansions Robinson butane cavern Texas City and Patoka tank farm expansions Marine fleet expansion *Excludes ~$190 million of maintenance capital and any potential future acquisitions 19

20 Capital Expenditures & Investments ($MM) 2017 Revised Plan 4Q Outlook Refining & Marketing (R&M) 1, Speedway Midstream, including MPLX (a) 2, ,756 2,405 Corporate and Other Total Capital Expenditures & Investments (b)(c) 3, ,052 3,970 (a) 2017 revised plan reflects the midpoint of the range for organic growth capital for MPLX of $1.8 to $2.0 B. (b) 2017 plan and actual excludes $220 MM for the Ozark Pipeline acquisition, and $500 million for the investment in the Bakken Pipeline system. (c) 2017 plan, actuals and 2018 outlook excludes capitalized interest. 20

21 MPC Annual Price and Margin Sensitivities Refining and Marketing Segment $MM (After Tax) LLS Crack Spread* Sensitivity ~$590 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$300 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$90 (per $1.00/barrel change) Natural Gas Price Sensitivity ~$200 (per $1.00/MMbtu change in Henry Hub) *Weighted 40% Chicago and 60% USGC LLS crack spreads and assumes all other differentials and pricing relationships remain unchanged **Light Louisiana Sweet (prompt) - [Delivered cost of sour crudes: Arab Light + Kuwait + Maya + Western Canadian Select + Mars] and assumes approximately 58% of crude throughput volumes are sour-based crudes ***Assumes approximately 17% of crude throughput volumes are WTI-based domestic crudes 21

22 Earnings ($MM unless otherwise noted) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Refining & Marketing segment income (a,b) (86) 1, (70) 562 1, Speedway segment income (c) Midstream segment income (b) Corporate and other unallocated items (b) (65) (64) (65) (74) (82) (83) (86) (114) Pension settlement expenses (1) (2) (4) - - (1) (1) (50) Litigation (86) - 57 Impairments (d) (129) (90) (267) Income from operations 75 1, ,576 1,119 Net interest and other financing income (costs) (142) (137) (141) (136) (150) (158) (157) (160) Income (loss) before income taxes (67) 1, , Income tax provision (benefit) (e) (1,166) Net income (loss) (78) ,004 2,125 Less net income (loss) attributable to: Redeemable noncontrolling interest Noncontrolling interests (79) (27) Net income attributable to MPC ,016 Effective tax rate (e) (17%) 33% 26% 31% 29% 30% 29% (122%) (a) Includes non-cash LCM inventory valuation benefit/(charge) of $360 MM and ($15 MM) in 2Q 2016 and 1Q 2016, respectively (b) Actuals have been recast in connection with the contribution of certain terminal, pipeline and storage assets to MPLX on March 1, 2017 (c) Includes non-cash LCM inventory valuation benefit of $25 MM in 2Q 2016 (d) Reflects MPC s share of gains related to the sale of assets remaining from the Sandpiper Pipeline project in 2Q,3Q and 4Q Also reflects equity method investment impairments recorded in 2Q 2016, 3Q 2016, and a goodwill impairment recorded 1Q 2016 (e) Earnings for the fourth quarter include a tax benefit of approximately $1.5 billion as a result of re-measuring certain net deferred tax liabilities using the lower corporate tax rate enacted in the fourth quarter. 22

23 Reconciliation Adjusted EBITDA to Net Income Attributable to MPC ($MM) Q 2Q 3Q 4Q LTM Net Income attributable to MPC ,016 3,432 Less: Net interest and other financial income (costs) (150) (158) (157) (160) (625) Add: Net income (loss) attributable to inco noncontrolling interests Provision (benefit) for income taxes (1,166) (460) Depreciation and amortization ,114 Litigation (57) 29 Impairments - (19) (2) (2) (23) Adjusted EBITDA 828 1,570 2,091 1,600 6,089 Less: Adjusted EBITDA related to MPLX 1,874 Adjusted EBITDA excluding MPLX 4,215 Add: Distributions from MPLX to MPC 498 Adjusted EBITDA excluding MPLX, including LP distributions to MPC 4,713 23

24 Reconciliation Adjusted EBITDA Related to MPLX to MPLX Net Income (a) ($MM) Q 2Q 3Q 4Q LTM MPLX Net Income Less: Net interest and other financial income (costs) (78) (87) (93) (96) (354) Add: Provision (benefit) for income taxes (2) 1 Depreciation and amortization Adjusted EBITDA related to MPLX ,874 (a) Actuals have been recast in connection with the contribution of certain terminal, pipeline and storage assets to MPLX on March 1,

25 Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations ($MM) Q 2Q 3Q 4Q Net cash provided by operations 1, ,901 2,746 Less changes in working capital: Changes in current receivables (640) (797) Changes in inventories 264 (157) 56 (57) Changes in current accounts payable and accrued liabilities (215) ,160 Changes in the fair value of derivative instruments Total changes in working capital 410 (108) 320 1,321 Cash provided from operations before changes in working capital ,581 1,425 25

26 Reconciliation of Refining & Marketing Margin to Refining & Marketing Income from Operations ($MM) 4Q Q Q Refining & Marketing income from operations 732 1, ,321 1,357 Plus (Less): Refinery direct operating costs (a) 1, ,072 4,113 4,007 Refinery depreciation & amortization , Other: Operating expenses (a)(b) ,924 1,835 Segment (income) expense, net (a) (149) (154) (111) (499) (360) Depreciation and amortization Inventory market valuation adjustment (345) Refining & Marketing margin (c) 2,443 2,624 1,883 8,941 7,557 (a)excludes depreciation and amortization. (b)includes fees paid to MPLX for various midstream services, which includes marine and pipeline transportation and terminal and storage services, but excludes costs related to delivery of crude and feedstocks to our refineries. (c)refining & Marketing margin is defined as sales revenue less cost of refinery inputs and purchased products, excluding any LCM inventory market adjustment. We believe this non-gaap financial measure is useful to investors and analysts to assess our ongoing financial performance because, when reconciled to its most comparable GAAP measure, it provides improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. This measure should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. 26

27 Reconciliation of Speedway Total Margin to Speedway Income from Operations ($MM) 4Q Q Speedway income from operations Plus (Less): Operating, selling, general and administrative expenses (a) ,530 1,554 Depreciation and amortization (a) Income from equity method investments (15) (5) (69) (5) Net gain on disposal of assets (2) (5) (14) (30) Other income (a) (5) (10) (14) (18) Inventory market valuation adjustment (25) Speedway total margin ,440 2,483 Speedway total margin: (a)(b) Gasoline and distillate margin ,008 1,009 Merchandise margin ,402 1,435 Other margin Speedway total margin ,440 2,483 (a) Fourth-quarter and year-to-date 2017 margin and expenses do not reflect any results from the 41 travel centers contributed to PFJ Southeast, whereas they are reflected in the fourth-quarter and year-to-date 2016 information. Our share of the net results from the joint venture is reflected in income from equity method investments. (b) Speedway gasoline and distillate margin is defined as the price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees and excluding any LCM inventory market adjustment. Speedway merchandise margin is defined as the price paid by consumers less the cost of merchandise. We believe these non- GAAP financial measures are useful to investors and analysts to assess our ongoing financial performance because, when reconciled to the most comparable GAAP measures, they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. 27

28 Speedway Reconciliation Segment EBITDA to Segment Income from Operations ($MM) Speedway Income from Operations Plus: Depreciation and Amortization Speedway Segment EBITDA 1,007 1,007 28

29 Refining & Marketing Segment Income 4Q 2017 vs. 3Q 2017 Variance Analysis 1,500 1,000 1, $MM 500 (538) (35) 12 Crude 88 Product 48 Volumetric 68 (161) (23) Q 2017 *LLS Crack *RIN/CBOB Adjustment *Sweet/ Sour Diff. *LLS/WTI Diff. *LLS Prompt vs. Delivered *Market Structure Other Margin Direct Operating Costs Other 4Q 2017 *Based on market indicators using actual volumes. 29

30 Refining & Marketing Indicative Margin 4Q ,000 2, ,443 $MM 2,000 1,500 1, Crude (294) Product 464 Volumetric 321 1,000 (704) (1,342) (369) 0 *LLS Crack *RIN/CBOB Adjustment *Sweet/ Sour Diff. *LLS/WTI Diff. *LLS Prompt vs. Delivered *Market Structure Other Margin R&M Margin Direct Operating Costs Other R&M Segment Income *Based on market indicators using actual volumes 30

31 MPLX Distributions and Sales Proceeds to MPC* $MM $10 $15 $16 $16 $18 $18 $20 $20 $24 $27 $32 $35 $69 $73 $132 $150 $91 $99 $102 $114 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 LP Distributions GP Distributions, including IDRs Cash Distribution and Asset Sales Proceeds from MPLX ($MM) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q GP Distributions, including IDRs LP Distributions Total Cash Distributions Received Cash Sales Proceeds , Equity Value from MPLX Total Asset Sales Proceeds** ,015-1,050 - *Based on quarter in which distributions were received **$630 MM, $504 MM and $600 MM in 3Q 2017, 1Q 2017 and 1Q 2016 were based on the number of units received valued at the volume weighted average price for MPLX units for the 10 trading days preceding the closing dates. 31

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