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Marathon Petroleum Corporation : Marathon Petroleum Corporation Reports Fourth-Quarter and Full-Year 2012 Results



   Marathon Petroleum Corporation : Marathon Petroleum Corporation Reports
                  Fourth-Quarter and Full-Year 2012 Results

  o Reported fourth-quarter earnings of $755 million, or $2.24 per diluted
    share, and full-year earnings of $3.39 billion, or $9.89 per diluted share
     
  o $1.76 billion of capital returned to shareholders in 2012
     
  o Initial public offering of MPLX LP completed
     
  o $2.2 billion Detroit Heavy Oil Upgrade Project completed
     
  o Galveston Bay refinery and associated assets acquisition planned for Feb.
    1
     
  o Capital expenditures of $1.6 billion authorized for 2013, excluding
    Galveston Bay purchase price
     
  o Board increases outstanding share repurchase authorization to $2.65
    billion

FINDLAY, Ohio, Jan. 30, 2013 - Marathon Petroleum Corporation (NYSE: MPC)
today reported 2012 fourth-quarter earnings of $755 million, or $2.24 per
diluted share, compared with a loss of $75 million, or $0.21 per diluted
share, in the fourth quarter of 2011. For the fourth quarter of 2012, earnings
adjusted for special items were $760 million, or $2.26 per diluted share,
compared with a loss adjusted for special items of $75 million, or $0.21 per
diluted share, in the fourth quarter of 2011.

Earnings were $3.39 billion, or $9.89 per diluted share, in 2012, compared
with $2.39 billion, or $6.67 per diluted share, in 2011. For 2012, earnings
adjusted for special items were $3.35 billion, or $9.79 per diluted share,
compared with $2.41 billion, or $6.72 per diluted share, in 2011.  

"Marathon Petroleum Corporation's commitment to safety, operational excellence
and strong financial performance enabled us to continue to enhance shareholder
value through strategic investments in the business and return of capital to
our investors," said Gary R. Heminger, president and chief executive officer.
"The expansion of our share repurchase authorization announced earlier today
reflects our strategic intent to achieve balance and discipline in our use of
investor capital. We will continue to drive value by making carefully
considered investments that position us to take advantage of evolving crude
oil and product opportunities, along with a consistent and focused return of
capital to our shareholders."

 ^                          Three Months Ended              Year Ended
                                December 31                December 31
(In millions, except        2012          2011          2012          2011
per diluted share data)
Earnings (loss)^(a)     $         755 $        (75)  $      3,389 $      2,389
Adjustments for special
items (net of taxes):
  Minn. assets sale
settlement gain                     -             -         (117)            -
  Pension settlement                                                          
expenses                            5             -            80            -
  Income tax law                                                              
changes                             -             -             -           17
Earnings (loss)
adjusted for special
items^(b)               $         760 $        (75)  $      3,352 $      2,406
Earnings per diluted                                                   $      
share                   $        2.24 $       (.21) $        9.89         6.67
Adjusted earnings per                                                  $      
diluted share           $        2.26 $       (.21) $        9.79         6.72
Weighted average shares
- diluted                         336           356           342          357
Revenues and other
income                    $    20,711   $    19,441   $    82,492  $    78,759

(a)   References to earnings (loss) refer to net income (loss) attributable to
MPC. See below for further discussion of earnings (loss).
(b)   Earnings (loss) adjusted for special items is a financial measure not in
accordance with generally accepted accounting principles (GAAP) and should not
be considered a substitute for earnings (loss) as determined in accordance
with accounting principles generally accepted in the United States. See below
for further discussion of earnings (loss) adjusted for special items.

Heminger noted that in 2012, MPC returned $1.35 billion to shareholders
through two accelerated share repurchase programs and another $407 million
through dividends. MPC's stock at year-end 2012 reflected an 89 percent
increase in value relative to year-end 2011. With dividends, total shareholder
return for 2012 was 93 percent.

Significant Accomplishments

Heminger said that MPC's excellent financial results in 2012 were matched by
its safety performance. "At MPC, we regard health and safety as core values,"
he said. "When our operations are safe and our people healthy, we know our
results will be that much better. That certainly has held true as MPC
employees and contractors helped us achieve our best-ever safety performance
in 2012, an accomplishment of which we are all very proud."

Heminger highlighted the initial public offering (IPO) of midstream master
limited partnership MPLX LP (MPLX) as an important milestone for MPC in 2012.
MPLX common units began trading on the New York Stock Exchange on Oct. 26.
"With its ownership of a majority interest in some of MPC's core midstream
assets, MPLX represents an attractive investment for unitholders and MPC
shareholders alike," he said. "With multiple avenues for expansion, MPLX will
be our primary vehicle to grow our midstream business and to participate in
the infrastructure investments needed to address the changing North American
energy landscape. MPC's ownership interest in MPLX will allow MPC shareholders
to participate in the value created by growing the fee-based, stable cash-flow
business of MPLX."

As 2012 came to a close, MPC's Detroit Heavy Oil Upgrade Project (DHOUP) was
complete and fully operational. "DHOUP represents a landmark achievement for
MPC," Heminger said. "This $2.2 billion investment increases our capacity to
process heavy crude oils, which are expected to be price-advantaged well into
the future, and enhances our flexibility to process a wide slate of crude
oils."

Heminger also remarked on DHOUP's execution as notable. "We completed this
project not only on budget and on schedule, but with world-class safety
performance, including no lost-time injuries since we started construction in
mid-2008," he said. "I am proud of the project team and all our employees and
contractors whose sustained effort over the years resulted in such a
successful outcome."

In October, MPC announced that it had signed a definitive agreement with BP to
acquire its 451,000 barrel-per-calendar-day refinery near Galveston Bay in
Texas City, Texas, and related midstream assets and branded jobber contracts
for approximately $598 million, plus inventories estimated at $1.1 billion.
The agreement also contains an earnout provision under which MPC could pay up
to an additional $700 million over six years, subject to financial performance
and other conditions. The transaction will be funded with cash on hand, and is
expected to be accretive to earnings in the first year of operation. "The
Galveston Bay asset acquisition will be an excellent complement to our
existing business," Heminger said. "It will augment our ability to process a
wide variety of crude oils, provide us additional access to refined product
markets and give us a significant refining presence in the western Gulf of
Mexico region, which will provide additional balance to our system. It also
will increase our brand presence in the Southeast and significantly increase
our participation in the chemicals value chain." The refinery is one of the
largest and most complex in the U.S., with a Nelson Complexity Index of 15.3.
This will make it the most complex in MPC's refining system.

Acquisition of the refinery and related assets is planned for completion Feb.
1.

MPC's Speedway retail segment increased its store-count by about 7 percent in
2012 after acquiring 97 convenience stores in Indiana, Ohio and Kentucky. The
acquisitions included 87 GasAmerica stores and 10 Road Ranger stores, bringing
its total count to approximately 1,460 stores. "We continue to invest in this
channel of distribution, which provides assured sales of gasoline manufactured
at our refineries, and has generated stable cash flow from food and
merchandise sales," said Heminger. "In addition to strengthening its presence
in key marketing areas, Speedway also achieved record segment income and
EBITDA per store. At the same time, Speedway grew its merchandise same-store
sales for the 15^th consecutive year and achieved its best-ever safety
record."

2013 Capital Plan

MPC's capital investment plan for 2013 totals $1.6 billion, excluding the
acquisition purchase price of the Galveston Bay refinery and related assets.
The capital allocated to the Refining & Marketing segment is $1.02 billion for
maintenance and value-accretive projects intended to capture additional value
from changes in the market for crude oil, other feedstocks and refined
products. The capital for these projects includes approximately $400 million
for maintenance and synergy capital for the Galveston Bay refinery and related
assets.

Capital allocated to the Speedway segment is $255 million, primarily for new
stores, rebuilds, remodels and site acquisitions. Capital allocated to the
Pipeline Transportation segment is $184 million, including MPLX. Capital
allocated to corporate support activities is $160 million, primarily for
upgrades to information technology systems.

Segment Results

Total income from operations was $1.19 billion in the fourth quarter of 2012
and $5.35 billion for full-year 2012, compared with a loss of $158 million and
income of $3.75 billion in the fourth quarter of 2011 and full-year 2011,
respectively.

                                Three Months Ended           Year Ended
                                   December 31               December 31
(In millions)                   2012         2011         2012        2011
Income (loss) from
Operations by Segment
                                 $                          $    
  Refining & Marketing             1,139 $       (182)      5,098 $      3,591
                                        
  Speedway                            77            73        310          271
                                                                 
  Pipeline Transportation             72            38        216          199
  Items not allocated to
segments:
    Corporate and other
unallocated items                   (91)          (87)      (336)        (316)
    Minn. assets sale
settlement gain                        -             -        183            -
    Pension settlement                                                        
expenses                             (8)             -      (124)            -
       Income (loss) from        $             $            $    
operations                        1,189         (158)       5,347 $      3,745

Refining & Marketing

Refining & Marketing segment income from operations was $1.14 billion in the
fourth quarter of 2012 and $5.10 billion for full-year 2012, compared with a
loss of $182 million and income of $3.59 billion in the fourth quarter of 2011
and full-year 2011, respectively.

The $1.32 billion and $1.51 billion increases in Refining & Marketing segment
income from operations for the fourth quarter of 2012 and full-year 2012
compared to the same periods in 2011 were primarily the result of a higher
refining and marketing gross margin. The refining and marketing gross margin
averaged $9.17 per barrel and $10.45 per barrel for the fourth quarter of 2012
and full-year 2012, respectively, compared with $0.39 per barrel and $7.75 per
barrel for the fourth quarter of 2011 and full-year 2011, respectively. The
main factors contributing to the increase in the gross margin were higher
crack spreads and favorable crude oil acquisition costs. The favorable crude
oil acquisition costs resulted primarily from a widening of the sweet/sour
differential in the fourth quarter of 2012 and full-year 2012 compared to the
same periods in 2011.

                                     Three Months Ended       Year Ended
                                         December 31          December 31
(mbpd = thousands of barrels per       2012      2011       2012       2011
day)
Key Refining & Marketing Statistics
Refinery throughputs (mbpd)
  Crude oil refined                      1,242     1,195       1,195     1,177
  Other charge & blendstocks                                                  
                                           206       176         168       181
       Total                             1,448     1,371       1,363     1,358
Refined product sales volume             1,686     1,611       1,599     1,581
(mbpd)^(a)
Refining & Marketing gross margin      $         $           $         $      
($/barrel)^(b)                            9.17      0.39       10.45      7.75

(a)   Includes intersegment sales
(b)   Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation and amortization, divided by
Refining & Marketing segment refined product sales volumes.

Speedway

Speedway segment income from operations was $77 million in the fourth quarter
of 2012 and $310 million for full-year 2012, compared with $73 million in the
fourth quarter of 2011 and $271 million for full-year 2011. The increases were
primarily the result of a higher merchandise gross margin and a higher
gasoline and distillates gross margin, partially offset by higher expenses
associated with an increase in the number of stores.

                                    Three Months Ended        Year Ended
                                        December 31           December 31
                                      2012       2011       2012       2011
Key Speedway Statistics
Convenience stores at period end        1,464      1,371
Gasoline and distillates sales
(million gallons)                         786        745      3,027      2,938
Gasoline and distillates gross
margin ($/gallon)^(a)                $ 0.1424   $ 0.1400    $0.1318    $0.1308
Merchandise sales (in millions)    $      761 $      721   $  3,058   $  2,924
Merchandise gross margin (in
millions)                          $      196 $      183  $     795  $     719
Same-store gasoline sales volume
(period over period)                   (0.2)%     (0.4)%     (0.8)%     (1.7)%
Same-store merchandise sales
(period over period)                     0.2%       0.7%       0.9%       1.1%
Same-store merchandise sales
excluding cigarettes (period over
period)                                  4.0%       7.2%       7.0%       6.7%

(a)   The price paid by consumers less the cost of refined products, including
transportation, consumer excise taxes and  bankcard processing fees, divided
by gasoline and distillates sales volumes.

Pipeline Transportation

Pipeline Transportation segment income from operations, including 100 percent
of MPLX's operations, was $72 million in the fourth quarter of 2012 and $216
million for full-year 2012, $34 million higher than in the fourth quarter of
2011 and $17 million higher than in full-year 2011, respectively. The increase
in the fourth quarter of 2012 compared to the fourth quarter of 2011 was
primarily due to an increase in transportation tariffs and pipeline affiliate
income, partially offset by higher mechanical integrity expenses. The increase
in full-year 2012 segment income from operations compared to 2011 primarily
resulted from an increase in transportation tariffs, partially offset by
higher mechanical integrity expenses and lower pipeline affiliate income.

                                  Three Months Ended          Year Ended
                                     December 31             December 31
                                   2012        2011         2012       2011
Key Pipeline Transportation
Statistics
Pipeline throughput (mbpd)^(a)
  Crude oil pipelines                 1,309       1,137        1,190     1,184
  Refined product pipelines                                                   
                                      1,003       1,007          980     1,031
       Total                          2,312       2,144        2,170          
                                                                      2,215

(a)    On owned common-carrier pipelines, excluding equity method investments.

Corporate and Special Items

Corporate and other unallocated expenses of $91 million in the fourth quarter
of 2012 and $336 million for full-year 2012 were $4 million higher than in the
fourth quarter of 2011 and $20 million higher than in the full-year 2011,
respectively. The increase for the fourth quarter of 2012 compared to the
fourth quarter of 2011 was primarily due to an increase in employee incentive
compensation and nonrecurring project-related expenses, partially offset by a
decrease in pension expenses associated with a pension plan amendment
announced in the second quarter of 2012. The increase for full-year 2012
compared to full-year 2011 was primarily due to higher costs associated with
being a stand-alone company for a full year in 2012, compared to half of the
year in 2011, partially offset by a decrease in pension expenses associated
with the pension plan amendment.

During the fourth quarter of 2012 and full-year 2012, MPC recorded pretax
pension settlement expenses of $8 million and $124 million, respectively,
resulting from the level of employee lump-sum retirement distributions
occurring during the year. In addition, MPC recognized a pretax gain of $183
million in 2012 related to the sale of the company's Minnesota assets in 2010.

Strong Financial Position and Liquidity

On Dec. 31, 2012, the company had $4.9 billion in cash and cash equivalents,
an unused $2 billion revolving credit agreement and a $1 billion unused trade
receivables securitization facility. The borrowing capacity on the revolving
credit agreement will increase to $2.5 billion upon the acquisition of the
Galveston Bay refinery and related assets to support additional core liquidity
needs of the company. MPC intends to fund the Galveston Bay acquisition with
cash on hand. The company's credit facilities and cash position should provide
it with sufficient flexibility to meet its day-to-day operational needs, and
its strong performance should enable it to continue its balanced and
disciplined approach to investing in the business and returning capital to
shareholders. As of Dec. 31, 2012, the company's strong financial position was
reflected by its debt-to-total capital ratio of 22 percent.

Incremental Share Repurchase Authorization

MPC's board of directors today approved an additional $2 billion share
repurchase authorization. The board also extended the remaining $650 million
share repurchase authorization announced on Feb. 1, 2012, for a total
outstanding authorization of $2.65 billion through December 2014.

Conference Call

At 10 a.m. EST today, MPC will hold a webcast and conference call to discuss
reported results and provide an update on company operations. Interested
parties may listen to the conference call on MPC's website at
http://www.marathonpetroleum.com by clicking on the "2012 Fourth-Quarter
Financial Results" link. Replays of the conference call will be available on
the company's website through Wednesday, Feb. 13. Financial information,
including the earnings release and other investor-related material, will also
be available online prior to the webcast and conference call at
http://ir.marathonpetroleum.com in the Quarterly Investor Packet.

                                     ###

About Marathon Petroleum Corporation

MPC is the nation's fifth-largest refiner with a crude oil refining capacity
of approximately 1.2 million barrels per day in its six-refinery system.
Marathon brand gasoline is sold through approximately 5,000 independently
owned retail outlets across 17 states. In addition, Speedway LLC, an MPC
subsidiary, owns and operates the nation's fourth-largest convenience store
chain, with approximately 1,460 convenience stores in seven states. MPC also
owns, leases or has ownership interests in approximately 8,300 miles of
pipeline. Through subsidiaries, MPC owns the general partner of MPLX LP, a
midstream master limited partnership. 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 (419) 429-5640
Beth Hunter (419) 421-2559
         
Media Contacts:
Angelia Graves (419) 421-2703
Jamal Kheiry (419) 421-3312
           

References to Earnings
References to earnings or loss mean net income (loss) attributable to Marathon
Petroleum Corporation (MPC) from the statements of income. Unless otherwise
indicated, references to earnings, earnings adjusted for special items and
earnings per share are MPC's share after excluding amounts attributable to
noncontrolling interest.

 

Non-GAAP Financial Information
In addition to earnings (loss) determined in accordance with GAAP, MPC has
provided supplemental "earnings (loss) adjusted for special items," a non-GAAP
financial measure that facilitates comparisons to earnings forecasts prepared
by stock analysts and other third parties. Such forecasts generally exclude
the effects of items that are considered non-recurring, are difficult to
predict or to measure in advance or that are not directly related to MPC's
ongoing operations. A reconciliation between GAAP earnings (loss) and
"earnings (loss) adjusted for special items" is provided in a table on page 1
of this release. "Earnings (loss) adjusted for special items" should not be
considered a substitute for earnings (loss) as reported in accordance with
GAAP. We believe certain investors use "earnings (loss) adjusted for special
items" to evaluate MPC's financial performance between periods. Management
also uses "earnings (loss) adjusted for special items" to compare MPC's
performance to certain competitors.

 

Forward-looking Statements
This press release contains forward-looking statements within the meaning of
federal securities laws. These forward-looking statements relate to, among
other things, MPC's 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," "would," "will" 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 issuer's control
and are difficult to predict. Factors that could cause actual results to
differ materially from those in the forward-looking statements include:
volatility in and/or degradation of market and industry conditions; the
availability and pricing of crude oil and other feedstocks; slower growth in
domestic and Canadian crude supply; completion of pipeline capacity to areas
outside the U.S. Midwest; consumer demand for refined products; transportation
logistics; the reliability of processing units and other equipment; our
ability to successfully implement growth opportunities; impacts from our
repurchases of shares of MPC common stock under our stock repurchase
authorization, including the timing and amounts of any common stock
repurchases; our ability to successfully complete the acquisition of BP's
Texas City, Texas, refinery and related logistics and marketing assets; state
and federal environmental, economic, health and safety, energy and other
policies and regulations;other risk factors inherent to our industry; and the
factors set forth under the heading "Risk Factors" in MPC's Annual Report on
Form 10-K for the year ended December 31, 2011 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-K could also have material adverse effects
on forward-looking statements. Copies of MPC's Form 10-K are available on the
SEC website, at http://ir.marathonpetroleum.com or by contacting MPC's
Investor Relations Office.

Consolidated Statements of
Income (Unaudited)
                              Three Months Ended            Year Ended
                                  December 31               December 31
(In millions, except          2012         2011          2012        2011 
per-share data)
Revenues and other income:
  Sales and other
operating revenues
    (including consumer
excise taxes)                $   20,684   $   19,418   $   82,235   $   78,583
  Sales to related parties                          
                                      2            2            8           55
  Income from equity                                
method investments                    8            9           26           50
  Net gain (loss) on                                
disposal of assets                  (1)            2          177           12
  Other income                                                                
                                     18           10           46           59
       Total revenues and
other income                     20,711       19,441       82,492       78,759
Costs and expenses:
  Cost of revenues
(excludes items below)           17,380       17,655       68,668       65,795
  Purchases from related
parties                              76           70          280        1,916
  Consumer excise taxes           1,438        1,307        5,709        5,114
  Depreciation and
amortization                        283          230          995          891
  Selling, general and
administrative expenses             279          288        1,223        1,059
  Other taxes                                                                 
                                     66           49          270          239
       Total costs and
expenses                         19,522       19,599       77,145       75,014
Income (loss) from
operations                        1,189        (158)        5,347        3,745
  Related party net
interest and other
financial income                      -            -            1           35
  Net interest and other                                                      
financial income (costs)           (45)         (22)        (110)         (61)
Income (loss) before
income taxes                      1,144        (180)        5,238        3,719
  Provision (benefit) for                           
income taxes                        385        (105)        1,845        1,330
                                       
Net income (loss)                   759         (75)        3,393        2,389
Less: Net income
attributable to
noncontrolling
                                                                              
  interest                            4            -            4            -
Net income (loss)                            $      
attributable to MPC        $        755         (75)  $     3,389  $     2,389
Per-share data
Basic:
  Net income (loss)
attributable to MPC        $       2.26 $     (0.21) $       9.95 $       6.70
  Weighted average
shares:^(a)                         334          356          340          356
Diluted:
  Net income (loss)
attributable to MPC        $       2.24 $     (0.21) $       9.89 $       6.67
  Weighted average
shares:^(a)                         336          356          342          357
Dividends paid             $       0.35 $       0.25 $       1.20 $       0.45

(a)   The number of weighted average shares for the periods ended Dec. 31,
2012, reflects the impact of shares received in 2012 under our share
repurchase program.

Supplemental Statistics
(Unaudited)
 ^ 
 ^                               Three Months Ended          Year Ended
                                    December 31              December 31
 ^ (Dollars in millions)          2012        2011        2012        2011 
 ^ 
Income (loss) from Operations
by Segment
                                   $         $             $           $      
    Refining & Marketing             1,139       (182)       5,098       3,591
                                                                              
    Speedway                            77          73         310         271
    Pipeline                                                                  
Transportation^(a)                      72          38         216         199
    Items not allocated to
segments:
       Corporate and other                            
unallocated items^(a)                 (91)        (87)       (336)       (316)
       Minn. assets sale
settlement gain                          -           -         183           -
       Pension settlement                                                     
expenses                               (8)           -       (124)           -
Income (loss) from operations        1,189       (158)       5,347       3,745
Net interest and other                                                        
financial income (costs)              (45)        (22)       (109)        (26)
Income (loss) before income                                                   
taxes                                1,144       (180)       5,238       3,719
Income tax provision                                                          
(benefit)                              385       (105)       1,845       1,330
                                                                              
Net income (loss)                      759        (75)       3,393       2,389
Less: Net income attributable
to noncontrolling
                                                                              
   interest                              4           -           4           -
Net income (loss)              $           $               $           $      
attributable to MPC                    755        (75)       3,389       2,389
Capital Expenditures and
Investments^(b)
                               $           $           $           $          
  Refining & Marketing                 192         300         705         900
                                                                              
  Speedway^(c)                          83          43         340         164
                                                                              
  Pipeline Transportation               42          52         211         121
                                                                              
  Corporate and Other^(d)               62          34         204         138
                               $           $               $           $      
       Total                           379         429       1,460       1,323

(a)   Included in the Pipeline Transportation segment is $4 million of
corporate overhead allocations and pension settlement expenses attributable to
MPLX subsequent to MPLX's October 31, 2012 initial public offering, which were
included in items not allocated to segments prior to MPLX's initial public
offering.  These expenses are not currently allocated to other segments.
(b)   Capital expenditures include changes in capital accruals.
(c)   Includes acquisitions of 97 convenience stores in 2012 and 23
convenience stores in 2011.
(d)   Includes capitalized interest.

Supplemental Statistics
(Unaudited) (continued)
 ^                               Three Months Ended          Year Ended
                                     December 31             December 31
                                   2012        2011       2012        2011
 ^ 
MPC Consolidated Refined
Product Sales Volumes
(thousands of barrels per day
(mbpd))^(a)                           1,702      1,630       1,618       1,599
Refining & Marketing (R&M)
Operating Statistics
Refinery throughputs (mbpd):
  Crude oil refined                   1,242      1,195       1,195       1,177
  Other charge and blendstocks          206        176         168         181
       Total                          1,448      1,371       1,363       1,358
Crude oil capacity utilization
(percent)^(b)                           103        105         100         103
Refined product yields (mbpd):
  Gasoline                              788        754         738         739
  Distillates                           475        462         433         433
  Propane                                27         26          26          25
  Feedstocks and special
products                                112         80         109         109
  Heavy fuel oil                         16         24          18          21
                                                      
  Asphalt                                57         53          62          56
       Total                          1,475      1,399       1,386       1,383
R&M refined product sales
volumes (mbpd)^(c)                    1,686      1,611       1,599       1,581
R&M gross margin
($/barrel)^(d)                    $    9.17  $    0.39    $  10.45    $   7.75
Direct operating costs in R&M
gross margin ($/barrel)^(e):
  Planned turnaround and major
maintenance                       $    0.91  $    0.87   $    1.00    $   0.78
  Depreciation and                                                
amortization                           1.53       1.30        1.44        1.29
  Other manufacturing^(f)              3.22       3.10        3.15        3.16
       Total                      $    5.66  $    5.27   $    5.59    $   5.23
Speedway Operating Statistics
  Convenience stores at period
end                                   1,464      1,371
  Gasoline and distillates
sales (million gallons)                 786        745       3,027       2,938
  Gasoline and distillates
gross margin ($/gallon)^(g)         $0.1424    $0.1400     $0.1318     $0.1308
  Merchandise sales (in
millions)                         $     761  $     721    $  3,058    $  2,924
  Merchandise gross margin (in
millions)                         $     196  $     183   $     795   $     719
  Same-store gasoline sales
volume (period over period)          (0.2)%     (0.4)%      (0.8)%      (1.7)%
  Same-store merchandise sales
(period over period)                   0.2%       0.7%        0.9%        1.1%
  Same-store merchandise sales
excluding
     cigarettes (period over
period)                                4.0%       7.2%        7.0%        6.7%
Pipeline Transportation
Operating Statistics
Pipeline throughput
(mbpd):^(h)
  Crude oil pipelines                 1,309      1,137       1,190       1,184
  Refined product pipelines           1,003      1,007         980       1,031
       Total                          2,312      2,144       2,170       2,215

(a)   Total average daily volumes of refined product sales to wholesale,
branded and retail (Speedway segment) customers.
(b)   Based on calendar day capacity, which is an annual average that includes
downtime for planned maintenance and other normal operating activities.
(c)   Includes intersegment sales.
(d)   Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation and amortization, divided by
R&M segment refined product sales volume.
(e)   Per barrel of total refinery throughputs.
(f)   Includes utilities, labor, routine maintenance and other operating
costs.
(g)   The price paid by consumers less the cost of refined products, including
transportation, consumer excise taxes and  bankcard processing fees, divided
by gasoline and distillates sales volumes.
(h)   On owned common-carrier pipelines, excluding equity method investments.

Segment Earnings Before Interest, Taxes, Depreciation & Amortization (Segment
EBITDA) (Unaudited)
                              Three Months Ended            Year Ended
                                  December 31               December 31
 ^ (Dollars in millions)       2012         2011         2012         2011
 ^ 
Segment EBITDA^(a)                      
                                         $                $            $      
  Refining & Marketing     $       1,369           2        5,902        4,309
  Speedway                           107         101          424          381
                                                                              
  Pipeline Transportation             89          49          270          244
       Total Segment
EBITDA^(a)                         1,565         152        6,596        4,934
Total segment depreciation
& amortization                       277         223          972          873
Items not allocated to
segments:
  Corporate and other                               
unallocated items                   (91)        (87)        (336)        (316)
  Minn. assets sale
settlement gain                        -           -          183            -
  Pension settlement                                                          
expenses                             (8)           -        (124)            -
Income (loss) from                                  
operations                         1,189       (158)        5,347        3,745
Net interest and other                                                        
financial income (costs)            (45)        (22)        (109)         (26)
Income (loss) before
income taxes                       1,144       (180)        5,238        3,719
Income tax provision                                                          
(benefit)                            385       (105)        1,845        1,330
                                                    
Net income (loss)                    759        (75)        3,393        2,389
Less: Net income
attributable to
noncontrolling
                                                                              
   interest                            4           -            4            -
Net income (loss)              $           $              $            $      
attributable to MPC                  755        (75)        3,389        2,389

(a)   Segment EBITDA represents segment earnings before interest and financing
costs, interest income, income taxes and depreciation and amortization
expense. Segment EBITDA is used by some investors and analysts to analyze and
compare companies on the basis of operating performance. Segment EBITDA should
not be considered as an alternative to net income (loss) attributable to MPC,
income (loss) before income taxes, cash flows from operating activities or any
other measure of financial performance presented in accordance with accounting
principles generally accepted in the United States. Segment EBITDA may not be
comparable to similarly titled measures used by other entities.

Select Financial Data (Unaudited)
                                               December 31,    September 30,
(Dollars in millions)                              2012            2012 
 ^ 
Cash and cash equivalents                        $      4,860   $       3,387
Total debt^(a)                                          3,361           3,349
Equity                                                 12,105          11,467
Debt-to-total-capital ratio (percent)                      22              23
Cash provided from operations (quarter ended)    $      2,043   $       1,833

(a)   Includes long-term debt due within one year.
 
MPC 4Q and 2012 Results

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Source: Marathon Petroleum Corporation via Thomson Reuters ONE
HUG#1672499
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