Marathon Petroleum Corp Q3 FY2024 earnings call

• Committed to operational excellence, commercial performance, and profitability per barrel across regions, with focus on safe and reliable operations. • Global refined product demand growth expected, with 2024 likely a record year for consumption. • Refining margins volatile in Q3 due to light turnaround season, supply interruptions, and global economic uncertainties. • MPLX executing growth opportunities in Permian and Marcellus basins, with Preakness II in Permian and Harmon Creek III in Northeast. • MPC's total capital return since May 2021 reduced share count by over 50%, with 10% dividend increase and $5 billion share repurchase authorization. • Refining utilization at 94% in Q3, with capture improved by 2% vs peers.

Refining & Marketing segment generated $1.1 billion of adjusted EBITDA in the third quarter. Midstream segment delivered $1.6 billion of adjusted EBITDA. The Midstream segment, primarily MPLX, has grown adjusted EBITDA by over 6% annually over 3 years through 2023, with a 12.5% increase in quarterly distribution, expected to bring $2.5 billion annualized to MPC. Refining utilization was 94% in Q3, with West Coast and Mid-Con regions having upper 90s utilization.

• Fourth quarter outlook: crude throughput ~2.6 million bpd (90% utilization), turnaround expense ~$285M, operating costs $5.50/bbl, distribution costs ~$1.5B, corporate costs ~$200M. • Expect demand growth to exceed net impact of capacity additions and rationalizations through end of 2020s, supporting enhanced mid-cycle refining environment.

• Global macroeconomic uncertainties, particularly China's growth pace. • Refining margin volatility due to market dynamics. • Potential impact of market conditions on balance sheet and ability to maintain capital returns.

Q: Neil Mehta on capital returns and 2025 buyback run rate A: Maryann Mannen emphasized commitment to leading capital returns, leveraging midstream cash flow durability and long-term demand profile for strong through-cycle cash flow.

Q: Doug Leggate on balance sheet and debt limits A: Maryann Mannen stated comfort with MPC cash balance around $1 billion and debt to capital range of 25%-30%.

Q: Manav Gupta on midstream growth and bolt-on deals A: Maryann Mannen mentioned organic growth opportunities in MPLX, including JVs and potential bolt-ons, supported by wellhead-to-water strategy.

Q: Paul Cheng on turnaround performance and renewable diesel A: Timothy Aydt highlighted best-in-class turnaround procedures and John Quaid discussed Martinez refinery's path to profitability with full capacity ramp-up.

Q: Roger Read on West Coast imports and Gulf Coast crude availability A: Rick Hessling noted Asian barrels likely to impact West Coast and positive impact of Gulf Coast crude rebalancing on margins.

Q: John Royall on seasonality of capture rates A: Maryann Mannen referenced historical stronger 4Q capture rates aligning with seasonality.

Q: Jason Gabelman on cash balance timing and capture rate drivers A: John Quaid discussed comfort with $1 billion cash balance due to midstream distribution and MPC's competitive operations; Rick Hessling praised Specialty Products team's role in better capture than peers