Marathon Petroleum Corporation Reports First-Quarter 2012 Results
(Thomson Reuters ONE) -
* Strong quarterly performance driven by wider crack spreads and crude oil
differentials
* Merchandise margins grow period-over-period in Speedway retail segment
* $850 million accelerated share repurchase program being executed as part of
$2 billion authorization
* Strategic evaluation of alternatives for midstream assets progressing
* 88 GasAmerica stores to be acquired in Indiana and Ohio
* Detroit Heavy Oil Upgrade Project on budget and on schedule
FINDLAY, Ohio, May 1, 2012 - Marathon Petroleum Corporation (NYSE:MPC) today
reported first quarter net income of $596 million, or $1.70 per diluted share,
compared with net income of $529 million, or $1.48 per diluted share, in the
first quarter of 2011.
----------------------------------------------------------------------------
Three Months Ended
March 31
(In millions, except per-diluted-share data) 2012 2011
----------------------------------------------------------------------------
Net income $ 596 $ 529
----------------------------------------------------------------------------
Net income - per diluted share $ 1.70 $ 1.48
Weighted average shares - diluted((a)) 350 358
Revenues and other income $ 20,275 $ 17,871
----------------------------------------------------------------------------
(a) For comparative purposes, it has been assumed that the shares outstanding
as of the June 30, 2011, spinoff date were also outstanding for the three months
ended March 31, 2011.
"Our first-quarter results reflect excellent performance by our Refining &
Marketing segment as well as solid earnings contributions from our Speedway and
Pipeline Transportation businesses," said MPC President and Chief Executive
Officer Gary R. Heminger. He attributed the strong Refining & Marketing segment
results to the company's ability to capture value from changing market dynamics
and acquire price-advantaged crude oil and feedstocks. "Our operational
flexibility and efficiency, coupled with the location of our processing
capacity, allowed us to take advantage of changing crude differentials in the
quarter," Heminger stated.
Heminger pointed to MPC's Speedway convenience store subsidiary as another
strong contributor during the first quarter, noting that the retail segment had
increased its volumes and margins in both fuels and merchandise sales.
Also during the first quarter, the company commenced the $2 billion share
repurchase program authorized by its board of directors in January. "We have
received a majority of the shares from our $850 million accelerated share
repurchase program, and expect to complete this initial tranche in the coming
months," Heminger said. "This is a significant component of our plans to return
capital to shareholders as we continue to pursue our balanced and disciplined
approach to capital allocation."
Heminger noted that other MPC initiatives to enhance value are also well under
way. "Our separate announcement earlier today, providing an update on the status
of our evaluation of strategic alternatives relative to our midstream assets,
further demonstrates our commitment to pursuing opportunities to create near-
and long-term value for our shareholders," he said. "On the retail side, we are
moving forward with Speedway's acquisition of 88 GasAmerica convenience stores,
which is expected to be finalized in the second quarter, solidifying our
presence along major transportation corridors in Ohio and Indiana. The Speedway
team continues to operate very well, and we expect they will generate solid
value with these new assets. Our Detroit Heavy Oil Upgrade Project, which is
designed to lower feedstock costs and capture value from crude oil
differentials, is on budget and on schedule for completion in the third quarter.
At the same time, we are working to enhance our infrastructure to be able to
move crude oil and feedstocks from the Utica Shale play to our Canton and
Catlettsburg refineries."
Segment Results
Total income from operations was $956 million in the first quarter of 2012,
compared with $819 million in the first quarter of 2011.
---------------------------------------------------------------------
Three Months Ended
March 31
(In millions) 2012 2011
---------------------------------------------------------------------
Income from Operations by Segment
Refining & Marketing $ 943 $ 802
Speedway 50 33
Pipeline Transportation 42 51
Items not allocated to segments (79) (67)
Income from operations $ 956 $ 819
---------------------------------------------------------------------
Refining & Marketing
Refining & Marketing segment income from operations was $943 million in the
first quarter of 2012, compared with $802 million in the first quarter of 2011.
The $141 million increase was primarily the result of a higher Refining &
Marketing gross margin, which increased to $8.36 per barrel in the first quarter
of 2012 from $6.73 per barrel in the first quarter of 2011. The primary factors
contributing to the increase in the gross margin were higher U.S. Gulf Coast
crack spreads and favorable crude oil acquisition costs resulting from a wider
differential between West Texas Intermediate and Light Louisiana Sweet crude
oils. Refining & Marketing crude oil capacity utilization was lower in the first
quarter of 2012; however, total throughputs were relatively unchanged.
As of March 31, 2012, the Detroit Heavy Oil Upgrade Project was 92 percent
complete and remains on budget and on schedule for an expected construction
completion in the third quarter of 2012. Immediately following, there will be a
70-day turnaround with the expanded refinery anticipated to be online by year-
end.
------------------------------------------------------------------------------
Three Months Ended
March 31
(mbpd = thousand barrels per day) 2012 2011
------------------------------------------------------------------------------
Key Refining & Marketing Statistics
Refinery throughputs (mbpd)
Crude oil refined 1,146 1,114
Other charge & blendstocks 174 207
Total 1,320 1,321
Refined product sales volume (mbpd)((a)) 1,532 1,541
Refining & Marketing gross margin ($/barrel)((b)) $ 8.36 $ 6.73
------------------------------------------------------------------------------
(a) Includes intersegment sales
(b) Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation and amortization, divided by
Refining & Marketing segment refined product sales volume.
Speedway
Speedway segment income from operations was $50 million in the first quarter of
2012, compared with $33 million in the first quarter of 2011. The $17 million
increase was primarily the result of a higher merchandise gross margin. Speedway
same-store merchandise sales increased 2 percent in the first quarter of 2012,
compared with an increase of 1.7 percent in the first quarter of 2011.
Speedway gasoline and distillate gross margin per gallon averaged 10.96 cents in
the first quarter of 2012, compared with 10.64 cents in the first quarter of
2011. Same-store gasoline sales volume at Speedway decreased 1.1 percent in the
first quarter of 2012, compared with a decrease of 0.2 percent in the first
quarter of 2011.
------------------------------------------------------------------------------
Three Months Ended
March 31
2012 2011
------------------------------------------------------------------------------
Key Speedway Statistics
Gasoline and distillates sales (million gallons) 706 693
Gasoline and distillates gross margin ($/gallon)((a)) $ 0.1096 $ 0.1064
Merchandise sales (in millions) $ 695 $ 663
Merchandise gross margin (in millions) $ 179 $ 158
Convenience stores at period end 1,370 1,353
Same-store gasoline sales volume (period over period) -1.1% -0.2%
Same-store merchandise sales (period over period) 2.0% 1.7%
------------------------------------------------------------------------------
(a) The price paid by consumers less the cost of refined products, including
transportation and consumer excise taxes, and the cost of bankcard processing
fees, divided by gasoline and distillates sales volume.
Pipeline Transportation
Pipeline Transportation segment income from operations of $42 million in the
first quarter of 2012 was $9 million lower than the first quarter of 2011. The
decrease was primarily due to a decrease in pipeline affiliate income.
------------------------------------------------------------------------
Three Months Ended
March 31
2012 2011
------------------------------------------------------------------------
Key Pipeline Transportation Statistics
Pipeline barrels handled (mbpd)((a))
Crude oil trunk lines 1,121 1,174
Refined product trunk lines 917 972
Total 2,038 2,146
------------------------------------------------------------------------
(a) On owned common-carrier pipelines, excluding equity method investments.
Corporate Items
Corporate and other expenses increased $12 million in the first quarter of 2012
to $79 million, compared with the first quarter of 2011. The increase is
primarily due to higher employee benefits, incentive compensation and
information technology expenses, which are partially the result of additional
costs associated with being a stand-alone public company.
Strong Financial Position and Liquidity
On March 31, 2012, the company had $2.2 billion in cash and cash equivalents, an
unused $2 billion revolving credit agreement and a $1 billion unused trade
receivables securitization facility. The company's credit facilities and cash
position should provide the company with significant flexibility to meet its
day-to-day operational needs and continue its balanced approach to investing in
the business and returning capital to shareholders. As of March 31, 2012, the
company's strong financial position was further reflected by its debt-to-total-
capital ratio of 26 percent.
Conference Call
At 10 a.m. EDT today, MPC will hold a webcast and conference call to discuss the
earnings release and provide an update on company operations. Interested parties
may listen to the conference call on MPC's website at
http://www.marathonpetroleum.com by clicking on the "2012 First-Quarter
Financial Results" link. Replays of the conference call will be available on the
company's website through Wednesday, May 16. Financial information, including
the earnings release and other investor-related material, will also be available
online prior to the webcast and conference call at
http://ir.marathonpetroleum.com in the Quarterly Investor Packet and Earnings
Capsule.
###
About Marathon Petroleum Corporation
MPC is the nation's fifth-largest refiner, with a crude capacity of
approximately 1.2 million barrels per calendar day in its six-refinery system.
Marathon brand gasoline is sold through more than 5,000 independently owned
retail outlets across 18 states. In addition, Speedway LLC, an MPC subsidiary,
owns and operates the nation's fourth largest convenience store chain, with
approximately 1,370 convenience stores in seven states. MPC also owns, leases or
has ownership interests in approximately 8,300 miles of pipeline. MPC's fully
integrated system provides operational flexibility to move crude oil, feedstocks
and petroleum-related products efficiently through the company's distribution
network in the Midwest, Southeast and Gulf Coast regions. For additional
information about the company, please visit our website at
http://www.marathonpetroleum.com.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Media Contacts:
Angelia Graves (419) 421- 2703
Jamal Kheiry (419) 421-3312
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements relate to, among other things, MPC's current expectations, estimates
and projections concerning MPC business and operations. You can identify
forward-looking statements by words such as "anticipate," "believe," "estimate,"
"expect," "forecast," "project," "could," "may," "should," "would" 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
company's control and are difficult to predict. Factors that could cause actual
results to differ materially from those in the forward-looking statements
include: 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; completion of pipeline
capacity to areas outside the U.S. Midwest; consumer demand for refined
products; changes in governmental regulations; transportation logistics; the
availability of materials and labor, delays in obtaining necessary third-party
approvals, and other risks customary to construction projects; the reliability
of processing units and other equipment; our ability to successfully implement
growth opportunities; impacts from our repurchases of shares of MPC common stock
under our stock repurchase program, including the timing and amounts of any
common stock repurchases; the risk that the midstream asset evaluation may not
result in the pursuit or consummation of any transaction; other risk factors
inherent to our industry; and the factors set forth under the heading "Risk
Factors" in MPC's Annual Report on Form 10-K for the year ended December
31, 2011 filed with the Securities and Exchange Commission (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 or in MPC'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, at
http://www.ir.marathonpetroleum.com or by contacting MPC's Investor Relations
Office.
--------------------------------------------------------------------------------
Three Months Ended
March 31
(In millions, except per-share data) 2012 2011
--------------------------------------------------------------------------------
Revenues and other income:
Sales and other operating revenues
(including consumer excise taxes) $ 20,264 $ 17,819
Sales to related parties 1 23
Income from equity method investments 2 9
Net gain on disposal of assets 2 1
Other income 6 19
Total revenues and other income 20,275 17,871
Costs and expenses:
Cost of revenues (excludes items below) 17,309 14,557
Purchases from related parties 63 785
Consumer excise taxes 1,380 1,209
Depreciation and amortization 230 216
Selling, general and administrative expenses 263 217
Other taxes 74 68
Total costs and expenses 19,319 17,052
Income from operations 956 819
Related party net interest and other financial
income - 17
Net interest and other financial income (costs) (22) (14)
Income before income taxes 934 822
Provision for income taxes 338 293
Net income $ 596 $ 529
Per-share data
Basic:
Net income $ 1.71 $ 1.49
Weighted average shares:((a)) 348 356
Diluted:
Net income $ 1.70 $ 1.48
Weighted average shares:((a)) 350 358
Dividends paid $ 0.25 $ -
--------------------------------------------------------------------------------
(a) The number of weighted average shares for the three months ended March
31, 2012, reflects the impact of the share repurchase program. For comparative
purposes, it has been assumed that the 356 million (basic) and 358 million
(diluted) shares outstanding as of the June 30, 2011, spinoff date were also
outstanding for the three months ended March 31, 2011.
--------------------------------------------------------------------------------
Supplemental Statistics (Unaudited)
Three Months Ended
March 31
(Dollars in millions) 2012 2011
--------------------------------------------------------------------------------
Income from Operations by Segment
Refining & Marketing $ 943 $ 802
Speedway 50 33
Pipeline Transportation 42 51
Items not allocated to segments (79) (67)
Income from operations 956 819
Net interest and other financial income
(costs) (22) 3
Income before income taxes 934 822
Income tax provision 338 293
Net income $ 596 $ 529
Capital Expenditures and Investments((a))
Refining & Marketing $ 153 $ 156
Speedway 11 5
Pipeline Transportation 38 14
Corporate and Other((b)) 38 29
Total $ 240 $ 204
--------------------------------------------------------------------------------
(a) Capital expenditures include changes in capital accruals.
(b) Includes capitalized interest.
--------------------------------------------------------------------------------
Supplemental Statistics (Unaudited) (continued)
Three Months Ended
March 31
2012 2011
--------------------------------------------------------------------------------
MPC Consolidated Refined Product Sales
Volumes (thousands of barrels per day
(mbpd))((a)) 1,558 1,562
Refining & Marketing (R&M) Operating Statistics
Refinery throughputs (mbpd):
Crude oil refined 1,146 1,114
Other charge and blendstocks 174 207
Total 1,320 1,321
Crude oil capacity utilization (percent)((b)) 96 98
Refined product yields (mbpd):
Gasoline 717 731
Distillates 397 408
Propane 25 24
Feedstocks and special products 130 116
Heavy fuel oil 15 21
Asphalt 54 49
Total 1,338 1,349
R&M refined product sales volume (mbpd)((c)) 1,532 1,541
R&M gross margin ($/barrel)((d)) $ 8.36 $ 6.73
Direct operating costs in R&M gross margin
($/barrel)((e)):
Planned turnaround and major maintenance $ 1.05 $ 1.24
Depreciation and amortization 1.38 1.32
Other manufacturing((f)) 3.16 3.54
Total $ 5.59 $ 6.10
Speedway Operating Statistics
Convenience storesat period end 1,370 1,353
Gasoline and distillates sales (million
gallons) 706 693
Gasoline and distillates gross margin
($/gallon)((g)) $ 0.1096 $ 0.1064
Merchandise sales (millions) $ 695 $ 663
Merchandise gross margin (millions) $ 179 $ 158
Pipeline Transportation Operating Statistics
Pipeline barrels handled (mbpd)((h)):
Crude oil trunk lines 1,121 1,174
Refined product trunk lines 917 972
Total 2,038 2,146
--------------------------------------------------------------------------------
(a) Total average daily volumes of refined product sales to wholesale,
branded and retail (Speedway segment) customers.
(b) Based on calendar day capacity.
(c) Includes intersegment sales.
(d) Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation and amortization, divided by R&M
segment refined product sales volume.
(e) Per barrel of total refinery throughputs.
(f) Includes utilities, labor, routine maintenance and other operating costs.
(g) The price paid by consumers less the cost of refined products, including
transportation and consumer excise taxes, and the cost of bankcard processing
fees, divided by gasoline and distillates sales volume.
(h) On owned common-carrier pipelines, excluding equity method investments.
--------------------------------------------------------------------------------
Segment Earnings Before Interest, Taxes, Depreciation & Amortization (Segment
EBITDA)
Three Months Ended
March 31
(Dollars in millions) 2012 2011
--------------------------------------------------------------------------------
Segment EBITDA((a))
Refining & Marketing $ 1,128 $ 981
Speedway 77 59
Pipeline Transportation 54 62
Total Segment EBITDA((a)) 1,259 1,102
Total segment depreciation & amortization (224) (216)
Items not allocated to segments (79) (67)
Income from operations 956 819
Net interest and other financial income
(costs) (22) 3
Income before income taxes 934 822
Income tax provision 338 293
Net income $ 596 $ 529
--------------------------------------------------------------------------------
(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 management to assess our operating performance and
also 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, 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.
--------------------------------------------------------------------------------
Select Financial Data (Unaudited)
March 31, December 31,
(Dollars in millions) 2012 2011
--------------------------------------------------------------------------------
( )
Cash and cash equivalents $ 2,205 $ 3,079
Total debt((a)) 3,321 3,307
Stockholders' equity 9,216 9,505
Debt-to-total-capital ratio (percent) 26 26
Cash provided from operations (quarter- $ 347 $ 638
ended)
--------------------------------------------------------------------------------
(a) Includes long-term debt due within one year.
MPC 1Q 2012 Results:
http://hugin.info/147922/R/1607700/510049.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Marathon Petroleum Corporation via Thomson Reuters ONE
[HUG#1607700]
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 01.05.2012 - 07:20 Uhr
Sprache: Deutsch
News-ID 1109109
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
Findlay, Ohio
Phone:
Kategorie:
Business News
Anmerkungen:
Diese Pressemitteilung wurde bisher 49 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Marathon Petroleum Corporation Reports First-Quarter 2012 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Marathon Petroleum Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
