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NEW YORK, Dec 1, 2011 - (ACN Newswire) - Marathon Petroleum Corporation (MPC) hosted its Investor Day meeting here today, marking the company's first such presentation as an independent company. The presentation provided an in-depth look at MPC's operations, finances, and future plans. "We are well positioned from an operating perspective, we are in a strong financial position, and we intend to balance return of capital to shareholders with organic projects and other investments to create shareholder value," said MPC President and Chief Executive Officer Gary R. Heminger.
Heminger noted that MPC's ability to deliver shareholder value is rooted in the company's balanced long-term fundamentals. "Our financial performance has been top quartile for the last decade, through all cycles of the business," he said. "We are well positioned to take advantage of short-term and medium-term market conditions, but we believe our track record shows that our ability to generate positive returns throughout the entire business cycle is also a fundamental strength."
Heminger pointed to MPC's balanced approach as the foundation for some of the company's key strengths. Part of that balance is geographic, with a little over half of MPC's refining capacity in the attractive Midwest (PADD II), and the remainder on the U.S. Gulf Coast (PADD III) with access to export markets. Heminger noted that the company is also balanced in terms of its crude slate, refining about half sour crudes and half sweet, with the capability to alter the mix in response to market conditions.
Pipeline transportation, other logistics assets and retail comprise the third point of balance for MPC, Heminger said. "Our integrated model includes significant logistics assets that allow us to connect our refineries with feedstocks and refined product markets, and with our Speedway retail and Marathon brand marketing operations," he said. "These channels of distribution, along with our wholesale contractual arrangements, provide an assured outlet for approximately 60 percent of our refinery gasoline production."
In addition to the broader points noted by Heminger, other MPC officers provided new information about the company's plans for 2012. Richard D. Bedell, senior vice president of Refining, pointed out that the company's stated crude oil refining capacity would increase by about 50,000 barrels per calendar day (bpcd) at the beginning of next year, to a total of approximately 1.19 million bpcd. Donald C. Templin, senior vice president and chief financial officer, put MPC's capital expenditures estimate for 2012 at about $1.2 billion. Those capital expenditures will be directed primarily toward projects that increase the company's ability to refine difficult-to-process crudes such as Canadian heavy oil sands, increase its diesel yield, debottleneck its logistics to access additional inland crude oil, prepare to receive new crude oil production from eastern Ohio's Utica shale, and grow Speedway's retail presence in regions where MPC already has strong logistics in place.
Other MPC officers and executives who provided insight into the company's operations during the Investor Day presentation included Garry L. Peiffer, executive vice president of Corporate Planning and Investor & Government Relations; C. Michael Palmer, senior vice president of Supply, Distribution and Planning; Thomas M. Kelley, senior vice president of Marketing; Anthony R. Kenney, President of Speedway LLC; and Thomas P. Barney, chief economist.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, MPC's current expectations, estimates and projections concerning MPC business and operations. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "could," "may," "should," "will," "intend," or "would" or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include: the availability and pricing of crude oil and other feedstocks; slower than anticipated growth in domestic and Canadian crude supply; completion of pipeline capacity to areas outside the U.S. Midwest; consumer demand for refined products; changes in governmental regulations; transportation logistics; the availability of materials and labor, delays in obtaining necessary third-party approvals, and other risks customary to construction projects; the reliability of processing units and other equipment; our ability to successfully implement growth opportunities; other risk factors inherent to our industry; and the factors set forth under the heading "Risk Factors" in MPC's Registration Statement on Form 10 filed with the Securities and Exchange Commission (the "SEC"). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here or in MPC's Form 10 could also have material adverse effects on forward-looking statements. Copies of MPC's Form 10 are available on the SEC website, at http://ir.marathonpetroleum.com or by contacting MPC's Investor Relations Office.
About Marathon Petroleum Corporation
MPC is the nation's fifth-largest refiner with a crude capacity in excess of 1.1 million barrels per day in its six-refinery system. Marathon brand gasoline is sold through approximately 5,100 independently owned locations across 18 states. In addition, Speedway LLC, an MPC subsidiary, owns and operates the nation's fourth largest convenience store chain, with approximately 1,375 locations in seven states. MPC also owns, operates, leases or has ownership interest in approximately 9,600 miles of pipeline. MPC's fully integrated system provides operational flexibility to move crude oil, feedstocks and petroleum-related products efficiently through the company's distribution network in the Midwest, Southeast and Gulf Coast regions. For additional information about the company, please visit our website at http://www.marathonpetroleum.com .
Investor Relations Contacts:
Pamela Beall +1-419-429-5640
Beth Hunter +1-419-421-2559
Media Contacts:
Angelia Graves +1-419-421-2703
Shane Pochard +419-421-4327
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Marathon Petroleum Company via Thomson Reuters ONE
Copyright (c) Thomson Reuters 2011. All rights reserved.
Topic: Press release summary
Source: Marathon Petroleum Corporation
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