MPC - Earnings call 3 2023 | Marathon Petroleum Corporation

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Operator

Welcome to the MPC Third Quarter 2023 Earnings Call. My name is Sheila, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Kristina Kazarian

Petroleum Quarter Marathon Call. Earnings the to Corporation XXXX Third Conference Welcome slides can under at call accompany the found tab. The this website be that on our Investors marathonpetroleum.com

Maryann call executive the We on invite the Michael on Slide members read team. today to harbor me and other the Hennigan, Joining CEO; safe Mannen, you X. CFO of are statements

filings quarter guidance barrels addition third differ We to with the as could as related Gulf cause that include may well of differ. I'll day will with Factors quarter as well to References to XX,XXX over be now turn approximately making SEC. region. And as in results call the our forward-looking are to MPC's fourth Coast statements Mike. of in for there capacity STAR today. our Actual the results [indiscernible] a that, included actual refining the

Michael Hennigan

seasonal the a reliable supply morning. you, increased and the across remain margins. with have where slow additions grow. Global our the led gasoline inventories both the blending and view to tight and export for at on and Beginning a Kristina. operate, energy and capacity. fuel steady for supply. world. constrained the we within continues the ran Globally, distillate year-over-year throughout diesel pace. system, at domestically Diesel Thank and regions global business, seeing progressed for as strong gasoline below and call. has affordable In increases In our we demand record we quarter, Good jet demand joining need remains supporting are oil In production capacity our butane barrels refining demand our supply third tightness is saw environment. high Thank refining cracks you European the global demand

has several inventory reduced supportive U.S. Plus past be that over system we to pressure medium barrels gasoline the we production of X.X cracks. sour to To typical turnarounds seasonal weeks. out end, drawn of have differentials. However, seen of OPEC million expect adding the

widen X. and Canadian our crude been While and have situated heavy generally refineries differentials strategically at X, we're have seen across X pads to WCS run narrowing, we crude

look supply-demand to the an over supply, mid-cycle and in enhanced relative we global complexity. international due feedstock the the refinery continue including towards we U.S. fundamentals sources acquisition As advantages environment costs, XXXX, energy costs and believe of will

$XX.XX and we Turning across of cash quarter, to our EBITDA to Marketing, results. In performance adjusted or led & third delivered Refining utilization barrel. our generation the solid In segment business. per strong margins, strong commercial billion $X.X XX%

durable growing delivered midstream segment earnings. and Our

over year MPLX expected to generated quarter, segment pace MPC our The distribution EBITDA from another current our distributions increase, compared distributions its With $X.X is MPLX This decision to this billion X% segment cash adjusted dividend of MPC's is is period. the MPC's of more program. XX%. of it receive than midstream its cash MPLX's annually. strategic and prior to half capital XXXX planned covers of Its portfolio. fully flows by supported of $X.X EBITDA to increase strength billion. quarterly Year-to-date, up

a over dividend. past annual an our quarterly over quarterly rate to announced $X additional XX% shareholders further authorization MPC's With has share third expect have repurchases. are compound priorities distribution capital value cash share and for Last and dividend XX% which MPLX's $X.X opportunities, MPC growth this shareholders. this the optimal of peers. growing dividends pursues grown continue increase, our relationship. via current we allocation believe we will increase years, refining billion enhance We which In to MPC's We to it billion returned the as led X at repurchase week, our strategic the quarter, we

remains allocation Our framework consistent. capital overall

the grow returning and priorities, share count. competitive asset committed invest these to capital We to intend sustaining we are beyond company's capital we repurchases exercise earnings will base growing X and while share paying lower secure, in a our excess dividend, through firmly our discipline. to will strict we And meaningfully

strategic progress fuels on some time initiatives. Let of facility produce million our slate gallons The with Neste. of operating delivered advantaged relationship largest among point, and At me the budget. per diesel that should the Martinez safely, and XXXX, be renewable facility robust being on year. Martinez is the is benefit and facilities flexibility feedstock renewable by profile, competitive low-carbon the And the logistics XXX from expected will also to a share end global on with

XX% plant, facility to which with expected third year gallons deliver in diesel. facility Spiritwood to oil diesel owned is The approximately processed vegetable Our is well. renewable the through nearby operating ADM is million quarter. XX per enough feed Dickinson produce a venture renewable of advantaged processing The soybean joint

deliver to carbon I'll through and Additionally, we RNG small-scale through a steps our intensity and we products early-stage over Maryann. are interest other to advancing advance asset evolving flow these to the growing call goal developments our turn taking intensity operations our We low market, manufacture carbon lower disciplined the base our in we're projects, investments. supply to cash current and and superior of believe to operating demands. At meet a while and the this point,

Maryann Mannen

Mike. Thanks,

reported financial a earnings This share of our third provides adjusted highlights. results. Moving $X.XX. to quarter morning, we summary Slide of X per

favorable MPC's changes, a from Gateway reported $X.XX response billion. EBITDA outage unplanned $X.X of working adjusted exclude our operations, quarter, to our on $X.X adjusted the over at was share. Adjusted associated These adjustments per cash costs billion interest XX% for was Garyville. well $XXX earnings reduced $XX South as capital excluding gain were Terminal by and flow of million sale million with the results in as quarter's Texas This

EBITDA, EBITDA we XXXX. adjusted and and and sequential XX% sequentially we shows primarily the May the million, third XXXX million net higher shares million to of was repurchased the shares compensation of shareholders $X.X dividend or have over our billion due quarter adjusted XX, shares. expenses XXX as tax quarter, a the performance-based charge R&M to payments $XXX approximately $X.X of rate returned between repurchased from by XXXX the to The through outstanding. Slide Adjusted During provision October of a driven $XX from as well in valuation EBITDA billion in higher through reconciliation approximately resulting for by And change income approximately quarter third by existing sequentially were related stock expense. $X was quarter to margins. Corporate XX%, second tax higher billion. X

overview segment. Moving of X Refining segment & Marketing provides results. to an our our Slide

refineries XX higher XX% was crack Our XX%. higher Refining were Capture processing barrels driven sequentially. which million per barrels Sequentially, ran nearly at in all did throughput downtime barrel refining in costs the regions quarter, X Garyville. X.X during million unplanned outage third spread. We assets $X.XX X.X quarter, operating and of barrels by our crude per margins of reformer to million at lost day impacting per X.X resulted have the at due our Bay refineries. flat the Galveston barrel were utilization, crude across largest

quarters overall resulted had this of quarter, our we the months we an margin outage, this We then, repair pulled headwind fourth first reform on and forward to and repairs the activities regulators of and was finalize capture repairs. construction in event, the us and XXXX. Slide able our in X scheduled Additionally, began Since clearance turnaround refining capture. marketing the downtime been gave once overview progressed were X after to which a as or during quarter planned which required the have work XX%. third into this provides about

provide built fluctuate Our commercial will this change based segment the expect to over second EBITDA on continue product in will pricing our which We the weighed quarter. have Capture X Midstream commercial advantage. adjusted dynamics. capture weak a versus results and team to foundational, on effectively that believe the the executed years to despite the of secondary is downtime, few see and This shows results. Slide we last refinery sustainable quarter commitment XXXX. capabilities performance we market

quarter delivered year Segment to segment is midstream EBITDA to adjusted EBITDA rates. X% Year-to-date, prior and up flat Our was X% midstream our the sequentially higher segment period. due primarily results. third and throughput compared year-over-year, higher strong

to receive earnings billion on annual earlier, As cash its unit supported increase XX% expects per decision its basis. $X.X $X.XX from Mike quarterly MPLX growth MPLX' to an and MPC by distribution to mentioned the another in of

generate grow Our cash strong midstream continues flows. business and to

in represents advancing Permian This in driven commitment the and cash cash source excluding was Operating and are the was our XX increases change approximately via of high-return returned in to flow, changes $X.X by tailwind Capital primarily in elements been billion $XXX $X.X $X.X $XXX projects with dividends working flow, nearly our the the has quarter, Marcellus totaled for the this prices. our capital, presents excluding quarter. shareholder consistent working Basin. Slide billion working in We oil of billion capital growth position for investments million quarter. operating expenditures Year-to-date, repurchases the and anchored payout XX% share highlighting capital cash. capital, the in changes billion XXXX a million superior crude during outlook. cash quarter. MPC returns. consolidated Working quarter, $X.X of of an over

third billion short-term under the our of current $X As billion of week. billion MPLX in quarter, consolidated approximately October remaining includes This repurchase $XX.X which cash authorization, At have last the of we billion and $X had the XX, approximately end announced $X.X approval includes share investments. MPC approximately additional cash.

provide We on guidance our XX. outlook. Slide to Turning quarter fourth

mid-December XX%. Utilization unit anticipate the was over X.X day, a repairs to we units work several XXXX. is per quarter impact In over guidance to have this following than to continue full be by million Production next crude crude earlier, on of anticipates rates ramp expect we And is operating to mid-November. progressing third advanced I turnaround respect with to and Bay We higher of forecasted turnaround for Gulf returning fourth complete that the mentioned planned, during volumes quarter. outage, due up reformer, progressed turnaround the starting utilization expected back as plan barrels Coast, Galveston the levels scheduled previously representing throughput activity, having to weeks. as lower the activity. And in in

cost now $XXX are expected the activity. to planned have we be planned project-related for are cost, as turnaround higher expected quarter. made expected fourth a costs quarter. to approximately pass this energy projected on to expense higher in me to quarter to turnaround million, barrel sustained be be approximately due it higher as in Corporate representing well As fourth that, to with Distribution million fourth back costs are billion that sequentially [ $X.XX area. With the reductions $X.X West Mike. $XXX result, ] is in and Coast Operating the be per let the the associated expenses particularly

Michael Hennigan

in billion of we where third on believe In projects and to investments there which reliable continue million summary, in we've maintenance the million performance attractive refinery invested as over to quarter, our invest $X.X Through of well and XXXX. assets. we capital safe in $XXX are also as capital the capital prioritize ensure will returns. investment, $XXX includes We'll over turnarounds

its we cash the and capture focus capital. With choice strongest commercial that, longer positioned sources on capacity our position We sustained believe shareholders, by will term, the our investment to mid-cycle enhanced is its Our supply source a to over in expected returns and continue back let refiner remains of to ability over through-cycle the environment, expect Partnerships global improvement MPC. us advantages the and to continues Kristina. distributions to it operational turn return $X.X commitment will to demand. grow deliver firm portfolio. cash to billion which excellence free and our we generation marginal is given of MPC have supported as MPLX MPLX growth over believe is distribute flow me of to annually growing our the superior to to increase to call with MPC continue to safety, cash

Kristina Kazarian

Mike. ready with that, Thanks, for [Operator Instructions] Sheila, them. we're And

Operator

Instructions] [Operator with UBS. from question Manav come will first Gupta Our

Manav Gupta

and they themselves Mike look on performance metrics. perform different the and when refiners, Maryann, we at look at

at look refining Some capture.

top You it row, that EBITDA we be your margin really on table year at a guys barrel. you focus on that peers. of looks second look And will in when outperforming like metric, per a for

deliver to to per you drive comes EBITDA understand it such So outperformance better refining system? when margin and in a help this your little allowing strong us barrel results what's

Rick Hessling

Rick. Manav, it's

you're appreciate are First call compared now, they've over all, pull we you through been will certainly EBITDA you, greatly the on and perceptive working on results thank for call on our as and this our team consistently I this it of results. out. our others, for focused and to your to out Manav, years will tell seeing

And capture our and improvements value So from more calculated we a approach chain Manav, see we everything. kudos front under what's that with rock the throughout the I we creating risk at a and we're team quarters, I mindset, doing And will -- the not entire say, stated of end, made structural it to look taking I we're mindset pivot everything teams. you you And of in that things. of back in we've past. In can how at lot would there. all the Manav, it. kind do our way within couple we've end. is And There state value things really backtrack the commercial that to past value a wrong. with at a today assuming we're our through Midwest, a change on in to looked looking in is will specifically, create the way overturning so are, haven't what isn't specifically,

system. integrated fully a have We

know, ran Midwest. in third feedstocks, Brian's Canadian both team well. In refineries optionality and very quarter, for domestic. advantaged you they has exceptional to placement. access as great product X And have We created then the have we the

those together, quarters, result has So when an Manav, we been continue. expect last you that to and get the you it combine stated all factors over several to as really you end consistent,

Michael Hennigan

give about care are amount I start I to only run the as cash EBITDA is the Manav, cash significant generating most add I we can we what a said flexibility shareholder want We the bottom to starts drive EBITDA line though, mean assets. it we returns. per thing of per make sure Ultimately, we barrel. as but to the would barrel, generation. generating with as with it's Mike. we're The earnings our is, much us Rick to

you think having barrel, ending then per the I starting with hit the point is cash generating flexibility. EBITDA So and point that

Manav Gupta

Perfect. A quick here. follow-up

known a strong was for are your performance. unusual. guys little operational You

say, strong got had stronger understand, You that. have have trying incidents. about let's a would not but happened. those you we I'm And even some those unplanned incidents despite delivered beat, talk quarter, who if Would pretty could a to

Maryann Mannen

and thanks question. Thank It's Yes. Maryann, you. for the

right. You're

share Gulf shared As quarter Galveston the of a we lion's being And terms the obviously, we is had its reformer. we capture would a had more our have not Bay X impacts in of those you, One, here. been then than that those Had what most to reported, contribution bit obviously, couple and the our Coast. we we with the capture higher downtime little moment a have impacted happy did the with share events in Garyville. in reformer. unplanned significant about event, X% the of that

their the all to us then able a through months be. And As Bay I for about us mentioned, on barrels million to to about just It X took X.X operated million barrels rate we -- took at about for got we in under the regulators week. quarter begin moment, Garyville, we back that work half our as repairs Galveston it a needed were -- about we as before then where determined work as lost. X.X we and the it's just

to we question. that getting start activities those hope the answers were So of the about launched? X I months

Operator

Bank will with Doug we from hear America. of Next, Leggate

Douglas Leggate

oNeste things we Maryann, that response key was of hit. wanted actually to last the

may. So try let X me I more, if

in First fairly remarks, export in factor particular. of talked a the isolate demand pretty obviously, wonder for outlook I you Mike, demand could system system? U.S. opening does ask market about I in all, your is big to that's your you if strong. in that because swing to your How

Michael Hennigan

on comment that. Brian let I'll Doug, Yes,

Unknown Executive

is this Doug, Brian. question. Good

distillate. center million of is Caribbean The The XX% import The course, exported in year. Coast X/X America They our as our gasoline. a and of into domestically quarter, In system. So despite roughly a in is the has really Latin out been steady. been day demand been operational U.S. some challenges the internationally, X.X strong XXX,XXX both the stable the that. that throughout resilient and growing balance, throughout on that barrels theme It's day system barrels the about noted. way Gulf roughly About the really really of and and of is has demand, year. we and

Europe. come share share America the We in in bit and have into for into little of a off our Caribbean exchange terms Latin

European cautionary which throughout day the XXX,XXX see one So growth quarter distillate imports, seen well, in the U.S. weakest you've Europe. probably The seeing spot there, it tail that in from we is are roughly a one demand the our is barrels as as into in we Europe. network,

see weather that spot Our X% as pickup expectations team that we'll one is sees season this the it year, of roughly soft is off with to a the into man year-to-year later bit we're colder Europe. in seeing. X% that and get in we a hope here But

Douglas Leggate

I for I guess ask Okay. to somebody That's but And apologize got this one, Mike, it. helpful. has

So [ been ] Citgo as a process the speculation about and is overnight mentioned bidder. there Marathon potential

frame like wonder with you what that would that your the would I high-grading in is, fact, you've that years? the be portfolio and that rationale you if over So how last whether about consideration in you several had thought a could focus something fitting see

Michael Hennigan

come start, I'm then going back . afterwards. to Doug. let Dave I'll Thanks, and

Unknown Executive

anticipated Doug, question. I so appreciate that. the We

to when and refinery existing that, advantages value said Mike out and touched along And -- our and build our to a at this and competencies a MPC comment. general little we on focused way we think past, increase bit to wheel so it. So as as everything do chains. that's on our like opportunities well in on look we're Rick But MPLX, and more there competitive from about say inclusive head currently a think I the out of to

Citco I the said, [ current us So believe or refining, ways with anticipate assets. participating shouldn't M&A environment, all And for process M&A ] you create in the the that us challenging auction more that refining that is the would of to within not one anticipate current said and we with on value.

Douglas Leggate

follow-up? Mike, have you a did

Michael Hennigan

from, in rumor process... where came I the we're don't not but the know interested auction

Operator

question next with come Cheng will from Our Paul Scotiabank.

Paul Cheng

Rich. Maybe maybe Maryann or this is for

be the [indiscernible] do Coast you have network a margin marketing For West there. strong, that seems to and condition very

So what's just business? your plan curious is the the it how West -- from over piece much that growing? that Is the in Coast contribution the that there? question. third of coming quarter, That's first Or

Unknown Executive

I'll increase occurs, is business on the in the Paul, the Coast in in Really, very Yes, Coast. Coast out the limited quarter saw just we the due that other from that actually this West our see the West prices Brian. in of quarter substantially We marketing to markets. one. take some when pretty West impact the We And pressure lot see the margin on actually outages unplanned system. and a opposite. on

So not in a contributor there big the quarter.

strategic as Now and some up see component we comes in quarter. really market of look to position off, and as it that ahead to growing expansion year. We've network. question, and would margin XQ we your recovery absolutely we to engaged put good last continuing Coast. our in look other West the actively a and out numbers grow to expect fourth and year the some as this at But are

Paul Cheng

you over stations basis on have any that grow next the you're an estimate annual share can many there? it what to you that trying [indiscernible] how several years

Unknown Executive

growth Really on don't growth. value a station to really want Paul. We're forecast focused expectation,

and optimization, So it's at really PV -- looking margin. it's a volume

volume driven station alone. So it's growth not by or

Paul Cheng

both maybe refining or Are or program year. in in it's reducing the Okay. of steady opportunity comparing improving to next still outlook the energy for bit the know talk Can [ expecting to Mike terms we you on early. ] MPLX. and this the several the for are yield parts years maybe for minuses you grow the -- that valuable that a the about and I a little looking

some just like how So look to and idea CapEx can trend level? that in give the us going the you [indiscernible] is

Maryann Mannen

It's Maryann. Paul. Sure,

look then he'll as pass CapEx I Let a you And about XXXX, billion. principles, the implemented principal years. And I'll well. to if will, me When and our billion. few our ] as that 'XX little strategic thoughts CapEx hopefully, last that capital of strict consolidated think incremental well over Mike, that have talk and that's [ you at you share one in 'XX, you've it some has But you is -- discipline. as know, up to average pillars look seen our $X.X XXXX to averaged general, $X.X we bit

So the discipline, ensuring again, strict been we're delivering been piece that has important that returns premise an we've of work that doing. the capital of

margin continuing refining, in we that continue look those I several evaluate. type of would projects we'll enhance projects projects, think And be type that enhancement that there evaluate. cost reduction to for we can to are reliability, those

XXXX, In But frankly, because it. how give timing, incremental to color we're guidance. terms on let even thinking wants Mike pass I you me of he's the some a think early for XXXX he to it about bit

Michael Hennigan

it I cash MPLX been billion about think, answered flows. the the house, we've side well. way and on roughly think growing Maryann, you about the is it Paul, very of those we spending $X

And very If you flows MPLX said cash will continue we're the to kick via it listen to Maryann growing over to MPC with that then call, comfortable those distribution. still well.

the we the bottom On have of still will about such we optimistic increase that that EBITDA margins barrel. talked a way will per that either reliability, enable the house, which earlier hit projects generate in our good line very some that enhance us more side refining or to we're

flow DNA we in can capital we we look enhanced return margin look spending that's cash basis. couple going around $X on have. of that numbers to a to that. capital this sufficient billion think just So return over Mary last the We the case at billion base years, consolidated that's fulsome have a overall we optimize do you've And to and generate where part via you're gave of a always as buybacks. to to invest shareholders. dividends we that, free And you nice think pretty seen to then still we're $X and environment, we like When

Operator

Margolin comes Wolfe Research. Our Sam question from with next

Sam Margolin

kind think represent of it about representative is looking internal of company to process. the Or the you? how parent when Is are sort you of Questions just and buyback, where it's MPLX view XX% like important. I about the think you analyze is you it? MPLX does maybe price distributions? a do because the question how it lot the methodology is do kind of and do reason like for do Or when the stock questions repository And the sort of it you a really it in -- share, an your as we get And on sensitivity But consolidated is something of share. conceptual of what I asked at entity buyback. your just MPC you a a synthetic

Maryann Mannen

Maryann. Sam, it's

Let me mean we several to give that, at and of share thoughts look I you intrinsic level at And got few case there's are pass the looking of value, he's decisions a in a as it Mike can are couple that on I making certainly, we're some added there about we buyback. value. approaches. when things

we'll evaluate So shared. series are is a the several obviously, looking the buyback try it diligently when multiples at that of pretty here. seen we've their the of to to time But market use look cash we outperform the you've about of our be cash worked typically, back we do we where significance value over just quarter are. of flows, that we where There at of as in And discounted our flows, look done. is the at that respective which holistic stock, to buy obviously constraints go reviews, We'll at think we are businesses. going each to balances parts. But as cash flows, look some cash least the think we a the none that EBITDA discounted approach. making look I we've the an market, at assumes Hopefully, we decision intrinsic MPC buyback, that, we

color. back Let see to he and Mike me wants pass add that if any to

Michael Hennigan

about the think I it. Yes, Sam, here's way

control margins. we As you the know, don't

that traded do the x to volume puts in been progresses, as constraints going to or limitations don't aggressive quarter, quarter can possibly periods, et the et amount have specified So we on cetera, as SEC the as we've within us, we're blackout cetera. a this trying that we such than other says be as daily

invest trying we've question, consistent of once the -- our we like to been been as try then possible, beat it's we that because also be So can. At we we've aggressive kind the it been will I time, quickly shareholders as to looks we to to have want cash, to because we talk want as that be Paul's tell as we dedication we just capital market. in. And to as capital still the returning you generate same

aggressive be rough goals as can we of that the we've And volatility beat $X. started quarter. program, our count of capital, advantage of within And process, take the by since the by ended about One that's share but return is kind a up as It's during the to number. we reducing this XX%. about we've market

starts So during if we've $X you it about execution. that hey, I helps. then best to beat billion around figure out our roughly obviously, market try with, around say, as execution. creation reduced in how it's somewhere much shares we and constraints generate But cash, that $X, XXX at value hope can return million of just to shareholders as the quickly we those can within our

Sam Margolin

be much up, it And but Yes, about so. ops it's on shipper with question, a how is TMX just fundamentals of And able status follow-up straightforward because And more Coast. WCS impactful it might once it delayed. seems for move has to integrated my system been Coast. your But very starts Midwest the West of West this to comments about things and noteworthy you're around. the is the

if you out full or integrated building of analogs wonder I value TMX, the commercial with a of see if chain in platform. context -- sort so there's there any And

Rick Hessling

Rick. it's Sam,

on. spot is analogy Your

in only online, see Northwest, and L.A. at benefits specifically Anacortes ] the [ TMX Pacific when we'll at So ]. [ not comes

to compete that more well-publicized transportation And We having get be on So what way the They sitting Coast, believe to you some barrel need that clear And with difficult. TMX very Asia the way marine have said, a will And will we so advantaged start-up look Coast. from cost do hurdles today. West issues. structural the on some a barrel that perspective. being advantage they have over. at West all it we will is the an you're access going than to to we believe well, barrel especially have get

the So both our we Coast. on Northwest do and assets, in see the that one West L.A. of into playing Pacific

Operator

with from hear Read Fargo. will you Wells Next, Roger

Roger Read

right? Okay. you all me Can hear

Maryann Mannen

got We you, Roger.

Roger Read

All the come on permit from right. diesel. We I'd back some and others about seen stories like to heard renewable around issues.

Just walk head of be curious as way you can thinking kind start-up and about kind us that 'XX. in year-end into we should the of early part we of through

Unknown Executive

Wilkins. resolution one to to is will with this That working to related Roger, resolved on operate related won't construct ability of in land The our impact months, that our matter upcoming use facility. issue, We're county Jim and odor get our the we it's the or permit. the plan. expect mitigation issue

Roger Read

change that to feedstock able early all use at it on. you'd Does be the

Unknown Executive

No.

Roger Read

I'm but some not just of I with I -- guess. want would know the let's not are you to say feedstocks smell, terribly experienced what they're well, this, that

Unknown Executive

No, Roger.

actually an approved the we're approved. back mitigation plan we embedding odor have permit mitigation where So is we'd plan been what actually, land order to Quality Air use division. with And the an and already that's develop doing we said circling the plan

Roger Read

Perfect. Okay.

need just no hurdles that cleared to for startup. regulatory So other to -- be absolutely and clear, be

Unknown Executive

Correct.

Operator

with Our next John question Royall JPMorgan. comes from

John Royall

follow-up I first on buyback. -- the one my had So is a

doing $X.X in to as And a aren't the longer environment And talked Mike crack XQ. through about, with where in talked more quarter $X gotten problem environment which worsening by another by you've the to you drawing And balance about now really getting You've constraints but cash. think, fact, a build I characterize any on billion in down seeing now term. you cash solid that cash stretch, I another XQ and we're about quarter any closer buyback. wouldn't a billion

would environment? all think not sensitive to the your from you the So drawing to And expect should is excess crack my start we here? question about buyback cash given is, particularly cash,

Maryann Mannen

Maryann. John, it's

you're So a right. absolutely Yes, things. of couple

to and be we're and remain priorities, an put any amount Mike efficient sheet of obviously, to the little nice some We'll looking ago it said as bit the gets working happen the liability fact unwind expect I our As sheet quarter. our keeping capital. got we've some year first. buyback see share we your to The $XX well, that work return fourth looking normal. several want over $X.X continue a with you committed just billion at earn a to of Having safe accurate. cash. Certainly, articulated when that that, We've think we're there got to again of you. And balance of operation share if a said to we sheet. timing a to of period holding of that of belongs assets point close in that the to you and looking as would part to then And that We mind, in of our at opportunities interest MPLX. the payments. And is on think, do the shared we then dividend, see, We're income billion We've is time, $X in we're of we that on is capital. we just We the some versus to see about have we're is generating The allow capital the and sitting that buyback are in particular for cash business obviously, we we're expect. I $X sensitivity as see quarter. return share of quarter said plus. advantage as first of cash quite of volatility, And that to at billion the again, having on types the it committed end balance capital to about order returns and billion we to in were on to reliable with as take able balance our all us today repurchase grow here as particularly the comfortable factors. in

as all look particular factors to head advantage market volatility the So to try and of as we at quarter and beat we'll as best any sure be into taking we where doing are can. can that and opportunistic we the again, we our be

John Royall

Great. to And work the then Maryann turnaround called year. of second in out this pulled some next from half year

about year, early what from look on next perspective. turnaround thinking any just a like XXXX look And so could

and I now the pulled X think 'XX. past catch-up you had this some into work years, over

it a reasonable it year? might kind average below is think So be to of

Maryann Mannen

John, Maryann again.

our of every an refineries, at we're similar notwithstanding time, some there you is So diesel. time, COVID, renewable turnaround. in pretty and operating And impact fossil point if look period average turnaround level the of general, fuel XX of in X over is

right. absolutely You're

of is in we utilization may notwithstanding X that do activity do the guidance, In the things in One XXXX fourth that the we you you the on forward West turnaround similar plans have pretty also, of unplanned downtime reformer have our turnaround Coast level did, absent again, to some there. our the LAR. pull the But locations in noticed watching expected into we We've of got XXXX. see period can those. COVID, turnaround quarter being

an quarter get looking trying I'll those you're ahead in as at are as the to example, if pause next fourth season the We well. done there. turnarounds year, just driving activity of

Operator

Our Gabelman with TD from next question Jason comes Cowen.

Jason Gabelman

incremental dividend had about higher on with buyback. of XX%. months A also, of over lower higher dividend this repurchased the their ask guess, the with and to amount year, decent trailing be year, raise -- the XX the receiving that Last distribution. amount line than focus wanted MPLX was case in the you it's cash raise from you'll I the I the wasn't

moving the XX%? market. then way of a think up raise? about How the the refining would with to earnings good be moving commentary light be you and question message about higher that you kind that And think dividend do higher, dividend do you expect come is, especially that you power that the how how it forward, would environment, did in expect So the environment I mid-cycle the to of to

Michael Hennigan

we during jump it is our paused I'll what way Mike. that Nir referring bigger it's Jason, around because to you're a before of think [ Yes, ] COVID the we in. year industry at let in most looked is cash. kind and I start, increase of had I'll tough

more same share be But a through growing allocation is of we're what is showing is pretty efficient to the go competitive. at want it we're repurchases. we of capital to tax So in the sheer different. made our return year market time, I believe case we trying And that this And that dividend part in bigger a show to quantum jump. it's we now dollars each often the capital say that

We at We market want competitive. dividend. going the So going want know, to yes, to we're to side think way we're all going the the share back we repurchases it's overall, it investing the want can consistently to to better We're because But capital. we're efficient return a that comes on and to be and we more going we show tax self-help capital more grow to do the that. grow time, do. to of to earn same earnings, that that

Maryann Mannen

dividend that, But the over Mike's X add Jason, said I at it's are Maryann. last strategy. peer capital said, one comments leading The only the think part, is the is of as increase this you to having thing XX% only that would we years. CAGR allocation

So well. that we hope you it as see

Jason Gabelman

there? the contribute Got that Marathon's get it. the And next you more on exactly project, I in could have thoughts for selected follow-up the spending what how think to the that then capital that of just on project to company? growth from my for you was participation color one is have that hydrogen funding it projects would I hoping is year, benefit DOE. hub was around Any

Unknown Executive

on I'll Yes, touch Jason, is that. Dave. this

high DOE that involved approved start them. mean We for were hubs in for from billion. X of the funding level. So $X X there with Number one, we're are MPC/MPLX

Heartland Appalachia area. in X So and the X in

we MPLX, a MPC when the So little of think they're and bit different. about involvement

transportation very around our very when the and the Dickinson it pipelines. lowering MPC about facility. -- renewable close it via it the think story area COX is inclusive Heartland of production. more hydrogen on On intensity in it's to From MPLX the of of an diesel proximity of you hydrogen perspective, And location carbon of do side, the

So anytime get CI of product can that pull-through of renewable the you that you're value invested of lower diesel, we you from asset base already that the can making course, in.

way So the about type like create value are we investments the can and up think that to do it, bolt-on best value chains. these down everything,

Jason Gabelman

those to Okay. do When projects come start the should accrue we when see online? benefits

Unknown Executive

Yes.

that's So great.

us early it's the in funding DOE for major So a granted, milestone some -- very while that we this, are stages. funding from was this of got all

it, to next funding the the the you've phase and about So to DOE design that on this commitments around requirement, the then build of is funding facility. a think and got contractual negotiation with

from the time think XXXX a benefit you're an company, associated frame. I looking capital So to into and spend XXXX, late

a still it's there. ways out So

Operator

Barclays. next question Our Chen Theresa from comes with

Theresa Chen

really with which TMX may could think you us at to wondering a toll discussion that if pipeline your I do has much just the bid U.S. wanted was differentials to Burnaby? WCS the currently? to given you owner commitment. And for ask the for holds given to going and think tighten known And Coast follow up MPC Gulf the on how Sam's question related where it are Mid-Con with that, you settle related can comparable the I Coast to assets versus update

Rick Hessling

Rick. it's Theresa, Yes.

at. I'm not end position part or on on what comment just of to first your it may a really in the up So the speculate question, toll

second the at that. market QX, discount. on And TMX curve The in so look QX, comes the at plus on about sits we is WCS your a there, the In think On today, $XX. part you I or of questionable I'd it's and online to $XX still forward forward question, curves the $XX WCS, as guidance is discount. give if $XX minus

we'll significant pretty goes just from a discount, it see still So have to and where there.

Theresa Chen

being a Mike's you the Got after investment additional an And RNG us that's from to to LF more as do RNG up roll Can additional pad of expect going assets strategy the this Bioenergy on to going X comments QX it. use launch a acquisition progress back update be just you here? them. about trending? give related for earlier opportunities, one And to is of investments? Or announcement, how this

Unknown Executive

that. Yes, again. I'll Teresa, on this touch Dave is

that Energy venture the joint investment, planned. yes, Bio progressing as LF So we is

diesel base plan bit the The CI lower those that, dairy and that low renewable is and renewable build on will facilities. product. then to out the again, as with that RNG out XX diesel monetizing as of building collecting Martinez, the Dickinson a CI very RNG are of facilities I such a We taking into our little touched hydrogen hub facilities RNG

they're relative runway identifying coming happy investment, projects the got -- ] they're that the we're and projects team to we've as good the investment, a with relationship So of very planned. there, the the [ online and management they've portfolio

your the a natural space second for or the one-off question, renewable gas part foundation renewable of and diesel -- investments in is So this or space. a subsequent

So system. we we was continue, lot didn't a overpay at the -- I some we built-out we a in got this But one early. said look opportunities there. earlier, are to There as key for out of stuff. And

think one paying subsequent and the opportunities. integrate that we'll there's continue early of them we investments, a than participate system, those of build-out So when that the of infrastructure for with our it rather business step in If we can built-out in I evaluate and think way. to

Operator

Our next Matthew question TPH. comes from Blair with

Matthew Blair

Maybe sticking the with renewables.

leg RD of option thoughts add operators, into an some if that so, the is the [ flexibility? SAF, that to ] For story any And or for is next Martinez? cost on moving timing

Unknown Executive

Yes, is Matthew, Dave this again.

now, that to SAF scale be determined for the communicated, of the to far the it, documented in also basis to associated but is And have said, benefit relative to question the needs And from relative is convert has there's justify long-term not IRA the the clarity a Dickinson challenge both of cost a barrel both competitive and no of So of of unknowns a production. SAF and the IRA, and lot yes, to to investment. from most duration. per XXXX, out premium in as the SIF been still there sliding is Right only a CI those while CapEx there that. the it on Martinez, the the lot SAF. that ends opportunity one incentives as With

multi-hundred that clarity ] forward. without going million dollar to it's [ So hard investments make

to very of lack So difficult and investments lack it from this time. premium clarity makes those industry justify at of airline

Michael Hennigan

Mike. it's I'll and Matthew, question. just Theresa's to your add to

seeing But period going when RNG, bit said, wrangling [ those optimize SAF, to around us, ] Dave as this a point. attentive we're what to opportunities to of I at you're just in is you're economics world, we'll is of about -- to or hopefully, at think it's as some little Theresa or my whole portfolio. whether mentioned, opinion, the us low-carbon from in like this investment what continue happen there's it trying our present Dave talked themselves

there. those with are make things something we'll constantly other if and So it, is over of conscious at the time, a that at ourselves and base and we're said, you're same stair to the some But time, we're do. areas, we investment, to whether get major build-out looking continue that's splash a big buy we're not see look, as continue in to majority of Dave to what opportunities. whether investment team We're you recognizing to it's whether I that, not continued continue some going proven it's time, evaluate. going take still Dave his to But looking looking in for of that those be SAF, the already us looking business step is grow we think to just out. been the over it's RNG,

Matthew Blair

least from of have then fourth quarter. Sounds part quarter? the you like tailwinds refining on the margin be early on the for up you good. butane at any think reformer blending Do thoughts back capture and getting do it And things into would

Maryann Mannen

that reflects we secondary capture. headwinds. will about shared, back changing. mid-November, begin We reformer Matthew, up the obviously, guidance planned I project things mid-December. to Yes, for operational the us rates think it's some Maryann. about you the hard We you expect talked did, will it come when margins it's as about But talked marketing at be we our talk fact to

Those things to on go. to you otherwise influence clearly things as know, You But difficult positive it's those as heard capture. well. what improving quarter. But capture capture where have predict the from point a that about Brian third talk certainly,

Operator

from Our Sandler. last question Ryan Todd will Piper with come

Ryan Todd

terms point conversion in Martinez of And project? maybe Phase I quarter throughput where Maybe from third the there? their end follow-up Great. of project. of in we the had we one way Maybe during I that the that have of or an you if this view total any how talk system. associate ramp could terms X you Phase either into on by think of it, from the fees anticipate of of about that in X project the operational there much as type of should are with the about you Can throughput startup working year, you is

about we from asset? view think for So operational that -- how an point the from of progress should

Timothy Aydt

it that going quarter, is production We're to production be operating by the Okay. very really I and Martinez comes is project the coming with want now on-budget as you safety to done on should we're execute the Maryann both pretreatment able end they on-time with a the end great to Marathon's going did, one do of key I a the and the kind Ryan, them the would well, complex XXX said well. to and start the RD Tim project. that's of ramp The that's shout a question up that looking project, finish project. really the Aydt. out to million gallons annually, year demonstrated the pretreatment that happen this because entire team's Thanks the to And do late and know, a as of here earlier, that standpoint. And lot when be year. about able on exceptionally pretreat second it Phase capacity strengths the job, likely off, is we in and we're can that, of say there. produce for when toward going first a and X from we we finish capacity. We unit of give

at it in of wrapping we'll end and moving project and be all the year. up, forward, wise, the all, So we're operationally ready

Kristina Kazarian

interest out, With or All joining topics for today right. be take your Corporation. reach additional Petroleum available Thanks you Should this and your have that, much, thank morning, so questions so discussed please will for to much like us. you team everyone, you clarification on our Marathon would calls. in

Operator

does Thank you for Thank conference. That conclude participating. you. today's

You may disconnect at this time.

Marathon Petroleum (MPC) 31 Oct 232023 Q3 Earnings call transcript