Marathon Petroleum Corporation (NYSE:MPC) Q4 2019 Earnings Conference Call - Final Transcript

Jan 29, 2020 • 09:30 am ET


Marathon Petroleum Corporation (NYSE:MPC) Q4 2019 Earnings Conference Call - Final Transcript


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Welcome to the MPC Fourth Quarter 2019 Earnings Call. My name is Jacqueline 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 Doug Wendt, Doug, you may begin.

Doug Wendt

Thank you, Jacqueline. Welcome to Marathon Petroleum Corporation's Fourth Quarter 2019 Earnings Conference Call. The slides that accompany this call can be found on our website at under the Investors tab.

On the call today are Gary Heminger, Chairman and CEO; Don Templin, CFO; Mike Hennigan, CEO of MPLX; as well as other members of the Executive Team.

As you know, Kristina Kazarian typically hosts this call. I'm doing that today because Kristina is celebrating the arrival of a baby girl a week-and-a-half ago. Both Kristina and baby Agnes are doing well.

We invite you to read the Safe Harbor statements on Slide 2. It's a reminder that we will be making forward-looking statements during the call and during the question-and-answer session. Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there as well as in our filings with the SEC.

Now, I will turn the call over to Gary Heminger for some opening remarks and highlights on Slide 3.

Gary R. Heminger

Thanks, Doug, and good morning, and thank you everyone for joining us. I too would like to congratulate Kristina and look forward to her return in a few weeks.

If you please return to Slide number 3. Earlier today, we reported adjusted net income of $1 billion or $1.56 per diluted share. This quarter's performance demonstrates our continued ability to execute across all aspects of our business and capture incremental synergies at an accelerated pace.

In Refining & Marketing, the team's commercial acumen coupled with our geographically diverse footprint drove tremendous capture results of 105%. Key drivers of capture for the quarter included strong gasoline price realizations, leveraging our integrated assets and scale to capture geographic base prices dislocations compared to broader market benchmarks and the impact of our strong synergy delivery.

Our Refining team executed turnarounds, performed engineering projects and completed major maintenance at multiple refineries. At Garyville, the crude revamp project and the first phase of the coker expansion project were commissioned, allowing us to realize higher coker unit rates from the expanded drum size. The second phase of the coker project is on schedule to be completed in the first quarter of 2020.

Early operating results on the first quarter coker have been very positive and we have been able to achieve a 17% capacity increase, exceeding our original project expectations. We expect -- anticipate the second phase of the project to achieve a similar rate increase.

Our Speedway team also executed well this quarter. They delivered strong results while also exceeding our cumulative store conversion target with over 700 stores converted to the Speedway platform since the combination.

In the Midstream segment, we progressed strategic long-haul pipeline projects that