EX-99.1 2 feb1dropdownimpactto1q20.htm EXHIBIT 99.1
Feb. 1 Dropdown Impact to First-Quarter 2018 Outlook April 2, 2018

2 ($MM) 1Q 2018 Net Impact Income from operations by segment: Refining & Marketing (167) Midstream 167 Income from operations - Net interest and other financial costs(1) (38) Income tax provision(2) - Net Loss (38) Less: Noncontrolling interests (NCI)(3) 47 Net loss attributable to MPC (85) Impact to MPC’s earning per share(4) ($0.17) (1)Assumes coupon rate of ~4.5% (2)Does not reflect the reduction in effective tax rate resulting from Feb. 1 dropdown (3)Calculated as net income attributable to MPLX less incremental net interest, multiplied by assumed NCI ownership percentage of MPLX of 36.4% (4)Assumes fourth-quarter 2017 weighted average diluted shares of 493 MM and does not reflect any 1Q 2018 share repurchases  First-quarter impacts: – Reduction to R&M “Direct Operating Costs” has been factored in $/BBL guidance – We expect a net increase of ~$230 MM to “Other” R&M expenses – Corresponding income to be reflected in Midstream segment – Net MPLX debt increase of ~$5 B  Annual impacts: – R&M Segment - Feb.1 dropdown results in expected net annual decrease of $1 B in segment income – Midstream Segment - Corresponding ~$1 B to be reflected as a net annual increase in segment income – Prorate net annual impact for quarterly estimate – ~$167 MM Illustrative Impact of Feb. 1 Dropdown Based on guidance provided on fourth-quarter earnings call – Feb. 1, 2018

3 Appendix

4 *Region throughput data includes inter-refinery transfers, but MPC totals exclude transfers **Includes utilities, labor, routine maintenance and other operating costs ***Actuals have been recast in connection with the contribution of certain terminal, pipeline and storage assets to MPLX on March 1, 2017 Crude Throughput* Other Charge/ Feedstocks Throughput* Total Throughput* Percent of WTI-priced Crude Sour Crude Oil Throughput Percentage Turnaround and Major Maintenance Depreciation and Amortization Other Manufacturing Cost** Total Direct Operating Costs Corporate and Other Unallocated Items*** in MBPD Refinery Direct Operating Costs ($/BBL of total throughput) P ro je c te d 1 Q 2 0 1 8 GC Region 1,025 200 1,225 17% 61% $3.25 $1.10 $3.85 $8.20 MW Region 650 50 700 47% 37% $1.15 $1.85 $4.20 $7.20 MPC Total 1,675 225 1,900 28% 51% $2.50 $1.40 $4.00 $7.90 $90 MM 1 Q 2 0 1 7 GC Region 850 222 1,072 4% 84% $4.31 $1.35 $4.62 $10.28 MW Region 661 30 691 29% 45% $0.98 $1.93 $4.50 $7.41 MPC Total 1,511 197 1,708 15% 67% $3.10 $1.63 $4.72 $9.45 $82 MM • 1Q 2018 projections in the table above for Total “Direct Operating Costs” have been adjusted for the Feb. 1 dropdown • While guidance is not provided for “Other” R&M expenses, for 1Q 2018 we expect a net increase of ~$230 MM resulting from the Feb. 1 dropdown, including fees paid to MPLX • 1Q 2017 has not been recast for the Feb. 1, 2018 dropdown First-Quarter 2018 Outlook As presented on fourth-quarter earnings call – Feb. 1, 2018

5 Illustrative Impact to Refining & Marketing Segment Fuels Distribution and Refinery Logistics Dropdown “Other” R&M Expenses to include fees paid to MPLX for fuels distribution services and refinery logistics assets; corresponding income to be reflected in Midstream segment “Direct Operating Costs” to exclude costs related to refining logistics assets Net annual increase in total R&M expenses of ~$1 B expected; corresponding income to be reflected in Midstream segment No change to “R&M Margin” As presented on fourth-quarter earnings call – Feb. 1, 2018