Se c ond Quar te r 2020 Confe r e nc e Call Aug ust 3, 2020 F - - PowerPoint PPT Presentation

Se c ond Quar te r 2020 Confe r e nc e Call

Aug ust 3, 2020

2

F

• r

war d L

• oking State me nts

T his pre se nta tio n c o nta ins fo rwa rd-lo o king sta te me nts within the me a ning o f fe de ra l se c uritie s la ws re g a rding Ma ra tho n Pe tro le um Co rpo ra tio n (MPC). T he se fo rwa rd-lo o king sta te me nts re la te to , a mo ng o the r thing s, e xpe c ta tio ns, e stima te s a nd pro je c tio ns c o nc e rning the b usine ss a nd o pe ra tio ns, stra te g y a nd va lue c re a tio n pla ns o f MPC. In a c c o rda nc e with “sa fe ha rb o r” pro visio ns o f the Priva te Se c uritie s L itig a tio n Re fo rm Ac t o f 1995, the se sta te me nts a re a c c o mpa nie d b y c a utio na ry la ng ua g e ide ntifying impo rta nt fa c to rs, tho ug h no t ne c e ssa rily a ll suc h fa c to rs, tha t c o uld c a use future o utc o me s to diffe r ma te ria lly fro m tho se se t fo rth in the fo rwa rd-lo o king sta te me nts. Yo u c a n ide ntify fo rwa rd-lo o king sta te me nts b y wo rds suc h a s “a ntic ipa te ,” “b e lie ve ,” “c o mmitme nt,” “c o uld,” “de sig n,” “e stima te ,” “e xpe c t,” “fo re c a st,” “g o a l,” “g uida nc e ,” “imply,” “inte nd,” “ma y,” “o b je c tive ,” “o ppo rtunity,” “o utlo o k,” “pla n,“ “po lic y,” “po sitio n,” “po te ntia l,” “pre dic t,” “prio rity,” “pro je c t,” “pro po sitio n,” “pro spe c tive ,” “pursue ,” “se e k,” “sho uld,” “stra te g y,” “ta rg e t,” “wo uld,” “will” o r o the r simila r e xpre ssio ns tha t c o nve y the unc e rta inty o f future e ve nts o r o utc o me s. Suc h fo rwa rd-lo o king sta te me nts a re no t g ua ra nte e s o f future pe rfo rma nc e a nd a re sub je c t to risks, unc e rta intie s a nd o the r fa c to rs, so me o f whic h a re b e yo nd the c o mpa ny’ s c o ntro l a nd a re diffic ult to pre dic t. F a c to rs tha t c o uld c a use MPC’ s a c tua l re sults to diffe r ma te ria lly fro m tho se implie d in the fo rwa rd-lo o king sta te me nts inc lude b ut a re no t limite d to : the e ffe c ts o f the re c e nt o utb re a k o f COVID-19 a nd the a dve rse impa c t the re o f o n o ur b usine ss, fina nc ia l c o nditio n, re sults o f o pe ra tio ns a nd c a sh flo ws, inc luding , b ut no t limite d to , o ur g ro wth, o pe ra ting c o sts, la b o r a va ila b ility, lo g istic a l c a pa b ilitie s, c usto me r de ma nd fo r o urpro duc ts a nd industry de ma nd g e ne ra lly, ma rg ins, inve nto ry va lue , c a sh po sitio n, ta xe s, the pric e o f o ur se c uritie s a nd tra ding ma rke ts with re spe c t the re to , o ur a b ility to a c c e ss c a pita l ma rke ts, a nd the g lo b a l e c o no my a nd fina nc ia l ma rke ts g e ne ra lly; the e ffe c ts o f the re c e nt o utb re a k o f COVID-19, a nd the c urre nt e c o no mic e nviro nme nt g e ne ra lly, o n o ur wo rking c a pita l, c a sh flo ws a nd liq uidity, whic h c a n b e sig nific a ntly a ffe c te d b y de c re a se s in c o mmo dity pric e s; o ur a b ility to re duc e c a pita l a nd o pe ra ting e xpe nse s; with re spe c t to the pla nne d Spe e dwa y sa le , the a b ility to suc c e ssfully c o mple te the sa le within the e xpe c te d time fra me o r a t a ll, b a se d o n nume ro us fa c to rs, inc luding o ur a b ility to sa tisfy c usto ma ry c o nditio ns, inc luding o b ta ining re g ula to ry a ppro va ls o n the pro po se d te rms a nd sc he dule , a nd a ny c o nditio ns impo se d in c o nne c tio n with the c o nsumma tio n o f the tra nsa c tio n, o ur a b ility to utilize the pro c e e ds a s a ntic ipa te d, a nd o ur a b ility to c a pture va lue fro m the a sso c ia te d o ng o ing supply re la tio nship a nd re a lize the o the r e xpe c te d b e ne fits; the risk tha t the c o st sa ving s a nd a ny o the r syne rg ie s fro m the Ande a vo r tra nsa c tio n ma y no t b e fully re a lize d o r ma y ta ke lo ng e r to re a lize tha n e xpe c te d; disruptio n fro m the Ande a vo r tra nsa c tio n ma king it mo re diffic ult to ma inta in re la tio nships with c usto me rs, e mplo ye e s o r supplie rs; risks re la ting to a ny unfo re se e n lia b ilitie s o f Ande a vo r; risks re la te d to the a c q uisitio n o f Ande a vo r L

• g istic s L

P b y MPL X L P (MPL X), inc luding the risk tha t a ntic ipa te d o ppo rtunitie s a nd a ny o the r syne rg ie s fro m o r a ntic ipa te d b e ne fits o f the tra nsa c tio n ma y no t b e fully re a lize d o r ma y ta ke lo ng e r to re a lize tha n e xpe c te d, inc luding whe the rthe tra nsa c tio n will b e a c c re tive within the e xpe c te d time fra me o r a t a ll, o r disruptio n fro m the tra nsa c tio n ma king it mo re diffic ult to ma inta in re la tio nships with c usto me rs, e mplo ye e s o r supplie rs; the risk o f furthe r impa irme nts; the a b ility to c o mple te a ny dive stiture s o n c o mme rc ia lly re a so na b le te rms a nd/ o r within the e xpe c te d time fra me , a nd the e ffe c ts o f a ny suc h dive stiture s o n the b usine ss, fina nc ia l c o nditio n, re sults o f o pe ra tio ns a nd c a sh flo ws; future le ve ls o f re ve nue s, re fining a nd ma rke ting ma rg ins, o pe ra ting c o sts, re ta il g a so line a nd distilla te ma rg ins, me rc ha ndise ma rg ins, inc o me fro m

• pe ra tio ns, ne t inc o me a nd e a rning s pe r sha re ; the re g io na l, na tio na l a nd wo rldwide a va ila b ility a nd pric ing o f re fine d pro duc ts, c rude o il, na tura l g a s, NGL

s a nd o the r fe e dsto c ks; c o nsume r de ma nd fo r re fine d pro duc ts; the a b ility to ma na g e disruptio ns in c re dit ma rke ts o r c ha ng e s to c re dit ra ting s; future le ve ls o f c a pita l, e nviro nme nta l a nd ma inte na nc e e xpe nditure s; g e ne ra l a nd a dministra tive a nd o the r e xpe nse s; the suc c e ss o r timing o f c o mple tio n o f o ng o ing o r a ntic ipa te d c a pita l o r ma inte na nc e pro je c ts; the re lia b ility o f pro c e ssing units a nd o the r e q uipme nt; b usine ss stra te g ie s, g ro wth o ppo rtunitie s a nd e xpe c te d inve stme nt; sha re re purc ha se a utho riza tio ns, inc luding the timing a nd a mo unts o f suc h re purc ha se s; the a de q ua c y o f c a pita l re so urc e s a nd liq uidity, inc luding a va ila b ility, timing a nd a mo unts o f fre e c a sh flo w ne c e ssa ry to e xe c ute b usine ss pla ns a nd to e ffe c t a ny sha re re purc ha se s o r to ma inta in o r inc re a se the divide nd; the e ffe c t o f re struc turing o r re o rg a niza tio n o f b usine ss c o mpo ne nts; the po te ntia l e ffe c ts o f judic ia l o r o the r pro c e e ding s o n the b usine ss, fina nc ia l c o nditio n, re sults o f o pe ra tio ns a nd c a sh flo ws; c o ntinue d o r furthe r vo la tility in a nd/ o r de g ra da tio n o f g e ne ra l e c o no mic , ma rke t, industry o r b usine ss c o nditio ns a s a re sult o f the COVID-19 pa nde mic , o the r infe c tio us dise a se o utb re a ks o r o the rwise ; no n-pa yme nt o r no n-pe rfo rma nc e b y o ur pro duc e r a nd o the r c usto me rs; c o mplia nc e with fe de ra l a nd sta te e nviro nme nta l, e c o no mic , he a lth a nd sa fe ty, e ne rg y a nd o the r po lic ie s a nd re g ula tio ns, inc luding the c o st o f c o mplia nc e with the Re ne wa b le F ue l Sta nda rd, a nd/ o r e nfo rc e me nt a c tio ns initia te d the re unde r; the a ntic ipa te d e ffe c ts o f a c tio ns o f third pa rtie s suc h a s c o mpe tito rs, a c tivist inve sto rs o r fe de ra l, fo re ig n, sta te o r lo c a l re g ula to ry a utho ritie s o r pla intiffs in litig a tio n; the impa c t o f a dve rse ma rke t c o nditio ns o r o the r simila r risks to tho se ide ntifie d he re in a ffe c ting MPL X; a nd the fa c to rs se t fo rth unde r the he a ding “Risk F a c to rs” in MPC’ s Annua l Re po rt o n F

• rm 10-K fo r the ye a r e nde d De c . 31, 2019, a nd in F
• rms 10-Q a nd o the r filing s, file d with the SE
• C. Co pie s o f MPC's F
• rm 10-K, F
• rms 10-Q a nd o the r SE

C filing s a re a va ila b le o n the SE C’ s we b site , MPC's we b site a t https:/ / www.ma ra tho npe tro le um.c o m/ I nve sto rs/ o r b y c o nta c ting MPC's Inve sto r Re la tio ns o ffic e . Co pie s o f MPL X's F

• rm 10-K, F
• rms 10-Q a nd o the r SE

C filing s a re a va ila b le o n the SE C’ s we b site , MPL X's we b site a t http:/ / ir.mplx.c o m o r b y c o nta c ting MPL X's Inve sto r Re la tio ns o ffic e . We ha ve b a se d o ur fo rwa rd-lo o king sta te me nts o n o ur c urre nt e xpe c ta tio ns, e stima te s a nd pro je c tio ns a b o ut o ur b usine ss a nd industry. We c a utio n tha t the se sta te me nts a re no t g ua ra nte e s o f future pe rfo rma nc e a nd yo u sho uld no t re ly unduly

• n the m, a s the y invo lve risks, unc e rta intie s, a nd a ssumptio ns tha t we c a nno t pre dic t. In a dditio n, we ha ve b a se d ma ny o f the se fo rwa rd-lo o king sta te me nts o n a ssumptio ns a b o ut future e ve nts tha t ma y pro ve to b e ina c c ura te . While o ur

ma na g e me nt c o nside rs the se a ssumptio ns to b e re a so na b le , the y a re inhe re ntly sub je c t to sig nific a nt b usine ss, e c o no mic , c o mpe titive , re g ula to ry a nd o the r risks, c o nting e nc ie s a nd unc e rta intie s, mo st o f whic h a re diffic ult to pre dic t a nd ma ny

• f whic h a re b e yo nd o ur c o ntro l. Ac c o rding ly, o ur a c tua l re sults ma y diffe r ma te ria lly fro m the future pe rfo rma nc e tha t we ha ve e xpre sse d o r fo re c a st in o ur fo rwa rd-lo o king sta te me nts. We unde rta ke no o b lig a tio n to upda te a ny fo rwa rd-

lo o king sta te me nts e xc e pt to the e xte nt re q uire d b y a pplic a b le la w. Non-GAAP F inanc ial Me asure s Adjuste d e a rning s, E BIT DA, c a sh pro vide d fro m o pe ra tio ns b e fo re c ha ng e s in wo rking c a pita l, Re fining a nd Ma rke ting ma rg in a nd Re ta il to ta l ma rg in a re no n-GAAP fina nc ia l me a sure s pro vide d in this pre se nta tio n. Re c o nc ilia tio ns to the ne a re st GAAP fina nc ia l me a sure s a re inc lude d in the Appe ndix to this pre se nta tio n. T he se no n-GAAP fina nc ia l me a sure s a re no t de fine d b y GAAP a nd sho uld no t b e c o nside re d in iso la tio n o r a s a n a lte rna tive to ne t inc o me a ttrib uta b le to MPC, ne t c a sh pro vide d b y (use d in) o pe ra ting , inve sting a nd fina nc ing a c tivitie s, Re fining a nd Ma rke ting inc o me fro m o pe ra tio ns, Spe e dwa y inc o me fro m o pe ra tio ns o r o the r fina nc ia l me a sure s pre pa re d in a c c o rda nc e with GAAP.

3

Spe e dwa y Sa le : E xe c uting Str a te g ic Pr ior itie s

Ce rta inty of Va lue Re a liza tion

100% c ash transac tion $21 billion re pre se nts signific ant value unloc k Approximate ly $16.5 billion of antic ipate d afte r-tax c ash proc e e ds Stre ngthe ns balanc e she e t and e nable s re turn of c apital to share holde rs

Ba la nc e She e t Stre ng th & Ca pita l Re turn L

• ng - T

e rm Re la tionship

L

• ng-te rm fue l supply

agre e me nts up to 7.7 billion gallons pe r ye ar Pote ntial for inc re me ntal fue l supply for e xisting 7-E le ve n loc ations

De Demonstrates c commitment nt to execut ute on the strategic pr priorities out utline ned e earlier t this year

4

Str e ng the n Compe titive Position

• f our

Asse ts

Ac hie ve be st-in-c la ss c ost, ope r a ting, a nd fina nc ia l pe r for ma nc e F

• c us on c ontr

ibution

• f e a c h a sse t to

sha r e holde r r e tur n

MPC: Str ate gy for Continuing Value Cr e ation

1

Impr

• ve

Comme r c ia l Pe r for ma nc e

2

L e ve r a g e a dvantage d r a w ma te r ia l se le c tion E nha nc e c omme r c ia l skills a nd te c hnolog y impr

• ve me nts

L

• we r

Cost Str uc tur e

3

Str ic t c a pital disc ipline L

• we r

ing c osts a nd dr iving e ffic ie nc y

5

Busine ss Upda te

• Progress on tactical and strategic initiatives:
• Indefinitely idling Gallup and Martinez refineries;

evaluating strategic repositioning of Martinez to renewable diesel facility

• On track to achieve 2020 operating expense and

capital spending reductions

• Enhanced liquidity with new credit facility
• $7.7 billion of available borrowing capacity

Proactive s steps ps h help m lp maintain f financial s streng ngth, s suppo pport i investme ment gra rade cre credit ra rating, a and e enhance t through-cy cycl cle r resiliency cy

6

Se c ond Qua rte r Hig hlig hts

$ Millions

• ns (unless ot
• therwise n

not

• ted)

2Q20 2Q20 Adjusted Loss per Share ($/share) (a) $(1.33) Adjusted EBITDA $653 Cash from Operations, excluding Working Capital $172 Dividends $378

(a ) Ba se d o n we ig hte d a ve ra g e d ilute d sha re s

7

1,866

• 51
• 18
• 1,178

34 653 1,425

• 1,097
• 972

9 500 1,000 1,500 2,000 2,500

1Q 2020

• Adj. EBITDA

Midstream Retail Refining & Marketing Corporate 2Q 2020

• Adj. EBITDA

LCM Benefit and Other Turnaround and D&A Interest, Taxes, and Noncontrolling Interests 2Q 2020 Net Income

$ Millions

Se c ond Qua rte r Hig hlig hts (c ont’d)

2Q 2020 vs. 1Q 2020

Ad Adju justed E EBITD TDA Recon

• ncili

liation to N Net I Incom

• me

8

Midstre a m E BIT DA

2Q 2020 vs. 1Q 2020

1,250

• 69

18 1,199 500 1,000 1,500

1Q 2020 EBITDA MPLX Other Midstream 2Q 2020 EBITDA

$ Millions

• Through-cycle EBITDA

stability

• Fee-based with volume

protections across businesses

• Continued progress on
• rganic growth projects

9

Re ta il E BIT DA

2Q 2020 vs. 1Q 2020

• Fuel volumes down ~25% from

first quarter due to COVID-19 demand destruction; down ~36% year-over-year

• Fuel margins of nearly

40 cpg

• Seasonal growth in

merchandise vs. 1Q; year-over-year same store sales down 4% excluding cigarettes

(a ) Re fle c ts o pe ra ting , se lling , g e ne ra l a nd a d ministra tive e xpe nse s.

644

• 74

38 21

• 3

626 200 400 600 800

1Q 2020 EBITDA Fuel Merchandise Operating Expense (a) Other 2Q 2020 EBITDA

$ Millions

10

(a ) I

nc lud e s re fining ma jo r ma inte na nc e a nd o pe ra ting c o sts. Exc lud e s re fining pla nne d turna ro und a nd D&A e xpe nse . (b ) Exc lud e s D&A e xpe nse

154

• 516
• 540
• 547

366 76

• 17
• 1,024
• 1,600
• 1,400
• 1,200
• 1,000
• 800
• 600
• 400
• 200

200 400

1Q 2020 Adj, EBITDA Mid-Con Margin USGC Margin West Coast Margin Operating Costs (a) Distribution Costs (b) Other 2Q 2020 Adj, EBITDA

$ Millions

Re fining & Ma rke ting Adjuste d E BIT DA

2Q 2020 vs. 1Q 2020

• Full three month impact of

COVID-19 demand destruction

• 71% utilization during the

quarter

• Significantly weaker crack

spreads

• Strong expense control

11

1,690 172 366 531

• 1,062
• 378
• 300

72 1,091 500 1,000 1,500 2,000 2,500 3,000

3/31/2020 Cash Balance Operating Cash Flow before Working Capital Working Capital Net Debt Capital Expenditures, Investments Return of Capital to Shareholders (a) Net Distributions to Noncontrolling Interests Other 6/30/2020 Cash Balance

$ Millions

T

• ta l Consolida te d Ca sh F

low

2Q 2020

(a ) $378 MM d ivid e nds (b ) In la te Ap ril, the c o mp a ny issue d $2.5 b illio n o f se nio r no te s, the p ro c e e d s o f whic h we re use d to re p a y c e rta in a mo unts o utsta nd ing o n the five -ye ar re vo lving c re d it fa c ility

No te : Exc lude s re stric te d c a sh

MPC 457 (b) MPLX 74

12

Commitme nt to Cost Disc ipline

• Guided 2Q R&M operating

expenses to be ~$300 million lower than 1Q20

• 2Q20 R&M costs reduced

by $64 million more than guidance

1,636 1,334 1,270

1,000 1,200 1,400 1,600 1,800

1Q20 Actual 2Q20 Guidance 2Q20 Actual $ Millions

R&M O Operat ating E Expenses

Di Discipline ned appr pproach, on track t to meet consolidated $ $950 m million o n ope perating ng expe pense reduc uction t n target

13

Strong L iquidity Position

• March and April working capital

impacts partially reversed in May and June as crude prices increased

• Credit facility fully repaid in

second quarter

• $7.7 billion of available credit

capacity as of June 30, 2020

• Cash balance of $1.1 billion at

June 30, 2020

3.0 5.0 1.0 2.0 0.8 0.7 4.8 .8 7. 7.7

3/31/2020 6/30/2020

$ Billions

Credit Facili lity A Availa labili lity

Five-Year Revolver 364-Day Revolvers Receivables Facility

14

• Corporate & other unallocated items estimated

at ~$195 MM for 3Q20

T hird- Qua rte r 2020 Outlook

Crude Throughput (a) Other Charge/ Feedstocks Throughput (a) Total Throughput (a) Sweet Crude Sour Crude Operating Cost (b) Distribution Cost (c) Planned Turnaround Depreciation and Amortization in MBPD Percent of Throughput $/BBL of Total Throughput $MM $MM $MM Projected 3Q 2020

Gulf Coast Region

825 95 920 34% 66% $5.20 $40 $150

Mid-Con Region

1,000 45 1,045 73% 27% $5.30 $70 $170

West Coast Region

390 45 435 28% 72% $11.45 $160 $70

R&M Total

2,215 130 2,345 50% 50% $6.50 $1,285 $270 $440 (d) Retail Segment

Light Product Sales Volume (MMgal)

2,000 – 2,200

Merchandise Sales ($MM)

$1,700 – $1,800

(a ) Re g io n thro ug hput d a ta inc lud e s inte r-re fine ry tra nsfe rs, b ut MPC to ta ls e xc lud e tra nsfe rs (b ) I

nc lud e s re fining ma jo r ma inte na nc e a nd o pe ra ting c o sts. Exc lud e s re fining pla nne d turna ro und a nd D&A e xpe nse .

(c ) Exc lud e s D&A e xpe nse (d) I

nc lud e s D&A e xpe nse a sso c ia te d with d istrib utio n a sse ts

15

Recognized for Energy Efficiency with EPA Energy Star Partner Awards Targeting 30% GHG emissions intensity reduction by 2030 Investing in Renew ables

F

• c us on Susta ina bility a nd Corpora te L

e a de rship

Independent & Diverse Board of Directors Transparency in reporting through TCFD and SASB Sustainability Performance linked to compensation Committed to Diversity & Inclusion Established new Human Rights Policy in 2020 Supporting our communities with $18.7 million in donations

Environment Social Governance

Str ate gic Ove r vie w

Que stions & Answe r s

17

Appe ppendi dix

18

Highlights

20% reduction in GHG intensity since 2014 ~$470 million investment converting Dickinson refinery to renewable diesel plant 45% reduction in criteria emissions since 2002 Over 55,000 employee volunteer hours in

• ur communities in 2019

Recognitions

Included in Dow Jones Sustainability Index for North America EPA Energy Star Partner of the Year – Sustained Excellence Award 2020 2020 Human Rights Campaign Corporate Equality Index score of 100% AFPM Distinguished Safety Award

Publishe d 2019 Susta ina bility Re port

19

Ma na g e a ble L e ve ra g e a nd Ma turitie s

(a ) MPC De b t-to -L

T M Ad juste d EBI T DA c a lc ula te d using fa c e va lue o f to ta l d e b t a nd L T M a d juste d pro fo rma E BI T

• DA. Exc lud e s MPL

X d e b t a nd EBI T DA, inc lud e s MPL X d istrib utio ns to MPC; re fe r to a ppe nd ix fo r re c o nc ilia tio n

(b ) Se nio r No te s Ma turitie s a s o f 6/ 30/ 2020

$ M Milli lions

(unless o

• therwis

ise n noted) d)

YE18 18 YE19 2Q20

Total Debt (excl. MPLX) 9,114 9,125 11,607 LTM Adj. EBITDA (excl. MPLX) 6,893 5,506 3,022 LTM MPLX Distributions to MPC 1,590 1,823 1,774 Debt-to-Capital 22% 23% 35% MPC Debt-to-LTM Adj. EBITDA (a) 1.1x 1.2x 2.4x 0.0x 0.5x 1.0x 1.5x 2.0x

2011 2012 2013 2014 2015 2016 2017 2018 2019

Debt bt-to to-LTM TM Ad Adj.

• j. E

EBITD TDA (a)

0.0 1.0 2.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Senior N Not

• tes Maturities - Next

xt 1 10 0 Years rs (b)

b)

$B

20

Ca pita liza tion a nd Se le c t Ba la nc e She e t Da ta

MP MPC Consolid idat ated MP MPLX LX Adjustme ments(a)

a)

MPC E Excluding g MP MPLX LX

As of J June 3 30, 2 , 2020 ($MM except ratio data)

Total Debt 32,166 20,559 11,607 Total Equity(b) 31,817 10,437 21,380 Debt-to-Capital Ratio 50%

• 35%

Cash and cash equivalents 1,091 67 1,024 Debt to LTM Adjusted EBITDA(c) 4.1x

• 3.9x

Debt to LTM Adjusted EBITDA, w/ MPLX LP distributions(c) N/A

• 2.4x

(a ) Ad justme nts ma d e to e xc lud e MPL

X c a sh, d e b t (a ll no n-re c o urse ), a nd the pub lic po rtio ns o f MPL X e q uity (b ) I nc lud e s MPL X me zza nine e q uity o f $968 millio n (c ) Ca lc ula te d using fa c e va lue o f to ta l d e b t a nd L T M a d juste d pro fo rma EBI T DA

21

958 159 392 336

• 369

1,476

• 1,270
• 1,214
• 16
• 595
• 1,619
• 2,000
• 1,000

1,000 2,000 3,000

Blended Crack Spread (a) Sweet Differential (a) Sour Differential (a) Market Structure Other Margin R&M Margin Operating Costs (b) Distribution Costs (c) Other Turnaround and D&A R&M Segment Loss

$ Millions

Re fining & Ma rke ting Se g me nt L

• ss

2Q 2020

Volume 123 Product 464 Crude -956

(a ) Ba se d o n ma rke t ind ic a to rs using a c tua l vo lume s (b ) I

nc lud e s re fining ma jo r ma inte na nc e a nd o pe ra ting c o sts. Exc lud e s re fining pla nne d turna ro und a nd D&A e xpe nse . (c ) Exc lud e s D&A e xpe nse .

22

Re fining & Ma rke ting Ma rg ins – Ma rke t vs. Re a lize d

Total system capture of 80%, key factors included:

• Low crude flat price tightening

differentials

• Lower product flat price muting

impact of volumetric gain

• Lower West Coast utilization vs.

indicator with Martinez idling

• Market structure benefit included

in margin indicator

23

373 1,214 468 373 300 600 900 1,200 1,500

Third Party Fees and Other MPLX Fees MPLX Fuels Distribution and Refinery Logistics Fees 2Q 2020 Distribution Costs

$ Millions

2Q 2020

Total distribution fees of $841 million paid to MPLX and $458 million returned to MPC through distributions paid by MPLX(a)

(a ) Ba se d o n d istrib utio ns d e c la re d fo r 2Q 2020

Distribution Costs – Compone nts

24

• 622
• 1,307
• 214

69 343

• 494

366 76 164

• 1,619
• 2,500
• 2,000
• 1,500
• 1,000
• 500

1Q 2020 Segment Loss Blended Crack Spread (a) Sour Differential (a) Sweet Differential (a) Market Structure Other Margin Operating Costs (b) Distribution Costs (c) Turnaround, D&A and Other 2Q 2020 Segment Loss

$ Millions

Re fining & Ma rke ting Se g me nt L

• ss

2Q 2020 vs. 1Q 2020 Va ria nc e Ana lysis

Volume

• 93

Product - 425 Crude 24

(a ) Ba se d o n ma rke t ind ic a to rs using a c tua l vo lume s (b ) I

nc lude s re fining ma jo r ma inte na nc e a nd o pe ra ting c o sts. Exc lud e s re fining pla nne d turna ro und a nd D&A e xpe nse . (C) Exc lud e s D&A e xpe nse .

25

E a rning s

($MM unless otherwise noted) 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Refining & Marketing segment income (loss) (133) 1,025 666 923 (334) 906 883 912 (622) (1,619) Retail segment income 95 159 161 613 170 493 442 477 519 494 Midstream segment income 567 617 679 889 908 878 919 889 905 869 Corporate (89) (81) (99) (233) (191) (179) (198) (237) (227) (188) Income (loss) from operations before items not allocated to segments 440 1,720 1,407 2,192 553 2,098 2,046 2,041 575 (444) Items not allocated to segments: Equity method investment restructuring gains

• 207
• 52
• Transaction-related costs
• (10)

(4) (183) (91) (34) (22) (13) (35) (30) Litigation

• (22)
• Impairments
• 1
• 8
• (1,239)

(9,137) (25) LCM inventory valuation adjustment

• (3,220)

1,480 Income (loss) from operations 440 1,711 1,403 2,017 669 2,042 2,024 841 (11,817) 981 Net interest and other financing costs 183 195 240 385 306 322 317 302 338 345 Income (loss) before income taxes 257 1,516 1,163 1,632 363 1,720 1,707 539 (12,155) 636 Provision (benefit) for income taxes 22 281 222 437 104 353 340 277 (1,937) 360 Net income (loss) 235 1,235 941 1,195 259 1,367 1,367 262 (10,218) 276 Less net income (loss) attributable to: Redeemable noncontrolling interest 16 20 19 20 20 21 20 20 20 21 Noncontrolling interests 182 160 185 224 246 240 252 (201) (1,004) 246 Net income (loss) attributable to MPC 37 1,055 737 951 (7) 1,106 1,095 443 (9,234) 9 Effective tax rate (a) 9% 19% 19% 27% 29% 21% 20% 51% 16% 57%

(a ) 4Q19 ta x ra te impa c te d b y mid stre am impa irme nts, ne t o f the po rtio n a ttrib uta b le to no nc o ntro lling inte re sts, a nd the b io d ie se l ta x c re d it whic h a re la rg e ly no n-ta xa b le ite ms. 2Q20 ta x ra te impa c te d b y c ha ng e s in o ur

e stima te d a nnua l e ffe c tive ra te a pplie d to inc o me fo r the ye a r to d a te inte rim pe rio d .

26

Re c onc ilia tion

Ne t I nc o me Attrib uta b le to MPC to Adjuste d Ne t I nc o me (L

• ss) Attrib uta b le to MPC

($MM) 2Q20 2Q19 Net income attributable to MPC 9 1,106 Pre-tax adjustments: Transaction-related costs 30 34 Impairments 25

• LCM inventory valuation adjustment

(1,480)

• Litigation
• 22

Tax impact of adjustments (a) 548 (14) Adjusted net income (loss) attributable to MPC (868) 1,148 Diluted income per share $0.01 $1.66 Adjusted diluted income (loss) per share (b) $(1.33) $1.73

(a ) We g e ne ra lly ta x e ffe c t ta xa ble a d justme nts to re p o rte d e a rning s using a c o mbine d fe d e ra l a nd sta te sta tuto ry ra te o f a p p ro ximate ly 24 p e rc e nt. (b ) We ig hte d -a ve rag e d ilute d sha re s o utsta nding a nd inc o me a llo c ate d to p a rtic ipating se c uritie s, if a p plic able , in the a d juste d e a rning s p e r sha re c a lc ulatio n a re the sa me a s tho se use d in the GAAP d ilute d e a rning s p e r sha re c a lc ulatio n e xc e p t fo r the thre e mo nths e nd e d June 30, 2020 whic h a ssume s no d ilutio n a nd use s b a sic sha re s a s a re sult o f a n a d juste d lo ss a ttributable to MPC.

27

Re c onc ilia tion

Ne t Inc o me (L

• ss) Attrib uta b le to MPC to Adjuste d E

BI T DA a nd L T M Adjuste d Pro F

• rma E

BI T DA

($MM)

3Q ‘19 4Q ‘19 1Q ’20 2Q ’20 LTM

Net Income (loss) attributable to MPC 1,095 443 (9,234) 9 (7,687) Add: Net interest and other financial costs 317 302 338 345 1,302 Net income (loss) attributable to noncontrolling interests 272 (181) (984) 267 (626) Provision (benefit) for income taxes 340 277 (1,937) 360 (960) Depreciation and amortization 855 978 962 935 3,730 Refining planned turnaround costs 164 153 329 162 808 Transaction-related costs 22 13 35 30 100 Equity method investment restructuring gains

• (52)
• (52)

Impairments

• 1,239

9,137 25 10,401 LCM inventory valuation adjustment

• 3,220

(1,480) 1,740 Adjusted EBITDA 3,065 3,172 1,866 653 8,756 Credit Metric Adjustments: Less: Refining planned turnaround costs (808) LTM Adjusted EBITDA 7,948 Less: LTM Adjusted EBITDA related to MPLX (a) (4,926) LTM Adjusted EBITDA excluding MPLX 3,022 Add: Distributions to MPC from MPLX 1,774 LTM Adjusted EBITDA excluding MPLX EBITDA, including LP distributions to MPC 4,796

(a ) I

nc lud e s pro fo rma fina nc ia ls re la te d to ANDX

28

Re c onc ilia tion

Ne t Inc o me Attrib uta b le to MPC to E BIT DA, Ad juste d E BIT DA a nd Ad juste d Pro F

• rma E

BIT DA

($MM) 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net Income (loss) attributable to MPC 2,389 3,389 2,112 2,524 2,852 1,174 3,432 2,780 2,637 Add: Net interest and other financial costs 26 109 179 216 334 564 674 1,003 1,247 Net income attributable to noncontrolling interests

• 4

21 31 16 39 372 826 618 Provision for income taxes 1,330 1,845 1,113 1,280 1,506 609 (460) 962 1,074 Depreciation and amortization 891 995 1,220 1,326 1,502 2,001 2,114 2,490 3,638 EBITDA 4,636 6,342 4,645 5,377 6,210 4,387 6,132 8,061 9,214 Refining planned turnaround costs (a)

• 290

624 501 664 740 Purchase accounting inventory related effects

• 759
• Transaction related costs
• 197

160 Litigation

• 29
• 22

Equity method investment restructuring gains

• (259)

Minnesota Assets sale settlement gain

• (183)
• Impairment expense
• 144

486 (23) (9) 1,239 LCM inventory valuation adjustment

• 370

(370)

• Adjusted EBITDA

4,636 6,159 4,645 5,377 7,014 5,127 6,639 9,672 11,116 Pro Forma EBITDA related to ANDV

• 2,356
• Adjusted Pro Forma EBITDA

4,636 6,159 4,645 5,377 7,014 5,127 6,639 12,028 11,116 Less: Refining planned turnaround costs

• (290)

(624) (501) (664) (740) Adjusted Pro Forma EBITDA 4,636 6,159 4,645 5,377 6,724 4,503 6,138 11,364 10,376 MPLX income from operations (b)

• 204

213 245 381 902 1,191 3,336 3,616 Depreciation and amortization (b)

• 60

70 75 129 591 683 1,135 1,254 MPLX EBITDA (b)

• 264

283 320 510 1,493 1,874 4,471 4,870 EBITDA excluding MPLX 4,636 5,895 4,362 5,057 6,214 3,010 4,264 6,893 5,506 MLP Distributions

• 57

76 118 332 498 1,590 1,823 Adjusted EBITDA excluding MPLX, including distributions from MPC 4,636 5,895 4,419 5,133 6,332 3,342 4,762 8,483 7,329 Debt (face value): MPC Corp 3,299 3,355 3,395 6,657 12,475 11,069 13,418 27,980 29,282 MPLX/ANDX

• (11)

(11) (645) (5,736) (4,858) (7,362) (18,866) (20,119) Net of MPLX 3,299 3,344 3,384 6,012 6,739 6,211 6,056 9,114 9,163 Debt to adjusted EBITDA excluding MPLX, including LP distributions to MPC 0.7 0.6 0.8 1.2 1.1 1.8 1.3 1.1 1.2

(a ) Re fining & Ma rke ting se g me nt supple me nta l re po rting re vise d in the se c o nd q ua rte r o f 2019, inc lud ing a se pa ra te c a te g o ry fo r re fine ry pla nne d turna ro und c o sts. Da ta no t a va ila b le prio r to 2015. (b ) I

nc lud e s pro fo rma fina nc ia ls re la te d to ANDX

29

Re c onc ilia tion

MPL X Ne t I nc o me (L

• ss) to E

BI T DA Re la te d to MPL X

($MM)

3Q ’19 4Q ‘19 1Q ‘20 2Q ‘20 LTM

MPLX Net Income / (Loss) 689 (573) (2,716) 655 (1,945) Add: Net interest and other financial costs 233 229 230 223 915 Provision (benefit) for income taxes 4 (2)

• 2

Impairments

• 1,239

3,429

• 4,668

Depreciation and amortization 302 338 325 321 1,286 EBITDA related to MPLX 1,228 1,231 1,268 1,199 4,926

No te : I nc lud e s pro fo rma fina nc ia ls re la te d to ANDX

30

Re c onc ilia tion

Ca sh Pro vid e d b y (Use d in) Ope ra tio ns to Ope ra ting Ca sh F lo w Be fo re Cha ng e s in Wo rking Ca pita l ($MM) 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q

Net cash provided by (used in) operations 1,623 2,622 2,787 2,409 (768) 538 Less changes: Current receivables (1,018) (679) 280 (303) 1,899 1,218 Inventories (4) 744 (558) (548) (422) 839 Current accounts payable and accrued liabilities 1,483 (186) 645 560 (3,453) (1,767) Fair value of derivative instruments 29 (56) (7) 26 (47) 70 Right of use assets and operating lease liabilities, net (1) 10 11 (6) (4) 6 Total changes in working capital 489 (167) 371 (271) (2,027) 366 Operating cash flow before changes in working capital 1,134 2,789 2,416 2,680 1,259 172

31

Re c onc ilia tion

Se g me nt I nc o me (L

• ss) fro m Ope ra tio ns to Se g me nt Adjuste d E

BI T DA a nd Adjuste d E BI T DA

2018 2019 2020 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Refining & Marketing Segment Segment income (loss) from operations (133) 1,025 666 923 (334) 906 883 912 (622) (1,619) Add: Depreciation and amortization 252 252 257 413 427 411 397 430 447 433 Refining planned turnaround costs 173 62 197 232 186 237 164 153 329 162 Purchase accounting inventory effect, net of LIFO

• 759
• Segment Adjusted EBITDA

292 1,339 1,120 2,327 279 1,554 1,444 1,495 154 (1,024) Retail Segment Segment income from operations 95 159 161 613 170 493 442 477 519 494 Add: Depreciation and amortization 79 73 76 125 126 130 113 159 125 132 Segment EBITDA 174 232 237 738 296 623 555 636 644 626 Midstream Segment Segment income from operations 567 617 679 889 908 878 919 889 905 869 Add: Depreciation and amortization 181 191 205 308 307 318 300 342 345 330 Segment EBITDA 748 808 884 1,197 1,215 1,196 1,219 1,231 1,250 1,199 Segment Adjusted EBITDA 1,214 2,379 2,241 4,262 1,790 3,373 3,218 3,362 2,048 801 Corporate (89) (81) (99) (233) (191) (179) (198) (237) (227) (188) Add: Depreciation and amortization 16 17 17 28 59 27 45 47 45 40 Adjusted EBITDA 1,141 2,315 2,159 4,057 1,658 3,221 3,065 3,172 1,866 653

32

Re c onc ilia tion

Re fining & Ma rke ting I nc o me (L

• ss) fro m Ope ra tio ns to Re fining & Ma rke ting Ma rg in

2019 2020 ($MM) 1Q 2Q 1Q 2Q

Refining & Marketing income (loss) from operations (a) (334) 906 (622) (1,619) Plus (Less): Selling, general and administrative expenses 544 574 554 500 LCM inventory valuation adjustment

• (3,185)

1,470 (Income) loss from equity method investments (1) (3) 3 19 Net (gain) loss on disposal of assets (6)

• 1

Other Income (14) (8) (4) (4) Refining & Marketing gross margin 189 1,469 (3,254) 367 Plus (Less): Operating expenses (excluding depreciation and amortization) 2,605 2,610 2,822 2,231 LCM inventory valuation adjustment

• 3,185

(1,470) Depreciation and amortization 427 411 447 433 Gross margin excluded from Refining & Marketing margin (b) (117) (142) (97) (66) Other taxes included in Refining & Marketing margin (4) (1) (24) (19) Refining & Marketing margin (a, c) 3,100 4,347 3,079 1,476 Refining & Marketing margin by region: Gulf Coast 917 1,090 977 437 Mid-Continent 1,517 2,193 1,335 819 West Coast 666 1,064 767 220 Refining & Marketing margin 3,100 4,347 3,079 1,476

(a) LCM inventory valuation adjustments are excluded from Refining & Marketing income from operations and Refining & Marketing margin. (b) The gross margin, excluding depreciation and amortization, of

• perations that support Refining &

Marketing such as biodiesel and ethanol ventures, power facilities and processing of credit card transactions. (c) Refining & Marketing margin is defined as sales revenue less cost of refinery inputs and purchased products. We believe this non-GAAP financial measure is useful to investors and analysts to assess our

• ngoing 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.

33

Re c onc ilia tion

Re ta il I nc o me fro m Ope ra tio ns to Re ta il T

• ta l Ma rg in

2019 2020 ($MM) 1Q 2Q 3Q 4Q 1Q 2Q

Retail income from operations (a) 170 493 442 477 519 494 Plus (Less): Operating, selling, general and administrative expenses 583 597 644 632 598 577 LCM inventory valuation adjustment

• (35)

10 Income from equity method investments (17) (21) (20) (24) (22) (27) Net gain on disposal of assets (2)

• (2)

(27) (1)

• Other income

(2) (4) (3) (35) (49) (44) Retail gross margin 732 1,065 1,061 1,023 1,010 1,010 Plus (Less): LCM inventory valuation adjustment

• 35

(10) Depreciation and amortization 126 130 113 159 125 132 Retail margin (a) 858 1,195 1,174 1,182 1,170 1,132 Retail margin: (b) Fuel margin 429 694 649 706 731 657 Merchandise margin 407 471 498 451 414 452 Other margin 22 30 27 25 25 23 Retail margin 858 1,195 1,174 1,182 1,170 1,132 (a) LCM inventory valuation adjustments are excluded from Retail income from

• perations and Retail margin.

(b) Retail fuel margin is defined as the price paid by consumers or direct dealers less the cost of refined products, including transportation, consumer excise taxes and bank card processing fees (where applicable). Retail 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

• ngoing 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.

34

34