Marathon Petroleum Corporation

Welcome to the MPC second quarter 2022 earnings call. My name is Sheila and I will be your operator for today's call. At this time all participants are in a listen only mode. Later we will conduct a question and answer session. Press star 1 on your touch tone phone to enter the queue. Please note that this conference is being recorded. I will now turn the call over to Christina Kazarian. Christina you may begin.

Welcome to Marathon Petroleum Corporation's second quarter 2022 earnings conference call. The slides that accompany this call can be found on our website at MarathonPetroleum.com under the Investor tab. Joining me on the call today are Mike Hennigan, CEO, Mary Ann Mannen, CFO, and other members of the executive team. We invite you to read the safe harbor statements on slide two. We will be making forward-looking statements today. Actual results may differ, and factors that could cause actual results to differ are included there as well as in our SEC filings. With that, I'll turn the call over to Mike.

Thanks, Christina. Good morning, everyone. In the second quarter, our operational activity was driven by strong market demand for transportation fuels we manufacture. Demand remains resilient, largely driven by the removal of globally imposed mobility restrictions and the pent-up desire to travel. Jet fuel demand continued its recovery up nearly 20% from the same quarter last year, with the increased resumption of travel. Gasoline demand remained very resilient through the quarter in part due to the start of the summer driving season. Diesel demand, after a strong beginning to the year, softened a bit in the second quarter due to lower trucking volumes. During the second quarter, in order to meet robust customer demand, we ran our refining system at full utilization. We optimized our system to provide as much transportation fuel to the market as possible. we optimized around our scale, footprint, and feedstock slate to meet this customer demand. This resulted in an adjusted EBITDA of $9.1 billion as we saw crack spreads this quarter respond to uncertainty in the product markets driven by the potential for sanction impacts on top of an already tight supply and related inventory levels. Marianne will walk you through the details of our results. But looking forward, we expect tight supply low inventory levels, and strong global demand to continue to incentivize high refining runs into the third quarter. We will continue to execute on what we can control, running a safe, reliable, low-cost system, improving our commercial performance, and strengthening the competitive performance of our assets. On capital allocation, we remain committed to the four priorities we've previously outlined. First, we're going to take care of our assets by deploying maintenance capital. We want to ensure we can safely operate our assets, protect the health and safety of our employees, and support the communities in which we operate. Second, we're committed to a secure, competitive, and growing dividend. And as we stated in the past, once we complete the $15 billion capital return program, the result from the Speedway sale, we will reassess the level of our dividend. We see this as a return on as well as a return of capital business. As we enter the second half of the year, our capital spending outlook remains on track. We continue to progress our Martinez Renewable Fuels Facility with the first phase of the facility currently targeted to be mechanically complete by year end. Once completed, the facility is expected to be capable of bringing nearly 50,000 barrels a day of renewable diesel supply into the market. We also expect to be able to close our JV with nest day in the coming months. The timeframe for completing the facility and closing the JV are dependent upon the timing of obtaining the air quality permit. We'll continue to look for other opportunities to generate a return on capital, such as cost reduction projects and opportunities that build out our competencies and increase our competitive advantages to drive returns and shareholder value. And fourth, After executing against the first three objectives, we look to return capital to shareholders. In the three months since our last earnings call, we have repurchased $4.1 billion of shares. And today, we announced a separate and incremental $5 billion share repurchase authorization. At this point, I'd like to turn the call over to Mary Ann.