Marathon Petroleum Corporation

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 Marianne Manin, CEO, John Quaid, 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. Factors that could cause actual results to differ are included there as well as in our filings with the SEC. With that, I'll turn the call over to Marianne.

Thanks, Christina, and good morning, everyone. I want to take a moment to recognize Mike Hennigan's leadership as CEO of MPC over the last four years. Mike's record of accomplishment has been tremendously valuable. During his tenure, Mike delivered its transformative strategic priorities and returned a peer-leading $40 billion to shareholders. We're fortunate to have Mike as executive chairman of MPC's board going forward. Moving to the global macro environment, in the second quarter, supply of refined products reached all-time seasonal highs. The margin environment, supported assets running at high utilization, and new capacity additions continue to ramp. At the same time, demand for refined products set new records globally. We expect 2024 will be another year of record refined product consumption. Within MPC's domestic and export businesses, We are seeing steady demand year over year for gasoline and diesel and growing demand for jet fuel. As we look forward, demand growth is expected to outpace near-term capacity additions over time with limited global refining capacity additions expected through the end of the decade. These fundamentals still support an enhanced mid-cycle environment for refining. The U.S. refining industry is expected to remain structurally advantaged over the rest of the world we believe our assets will remain the most competitive in each region in which we operate. Our fully integrated refining system and geographic diversification across the Gulf Coast, MidCon, and West Coast regions provide us with a competitive advantage. We are steadfast in our commitment to safely operate our assets and protect the health and safety of our employees. Operational excellence, and commercial execution have driven sustainable structural benefits, uniquely positioning us to capture market opportunities. Our execution remains core to our value delivery. Our disciplined capital investments are focused on high return projects. In refining, we are making investments predominantly in our large, competitively advantaged facilities to optimize our assets and position MPC well into the future. In midstream, MPLX continues to execute attractive growth opportunities focused on bringing in incremental third-party cash flows. We continue to grow our natural gas and NGL value chains. In the second quarter, MPLX closed the Whistler transaction. Last week, MPLX and its partners reached FID on the Blackcomb natural gas pipeline. It will be a 2.5 BCF pipeline connecting supply in the Permian to domestic and export markets along the Gulf Coast. This project offers a compelling value proposition while providing shippers with flexible market access. Blackcomb is expected to be in service in the second half of 2026. Additionally, MPLX recently increased its ownership in Bengal. This pipeline transports NGLs from the Permian to Sweeney, Texas, and it is currently expanding its capacity to 250,000 barrels a day. This transaction is immediately accretive and enhances MPLX's Permian NGO value chain as part of its developing wellhead-to-water strategy. MPLX is strategic to MPC's portfolio, providing a $2.2 billion annualized cash distribution to MPC. This fully covers MPC's dividend and nearly all of our 2024 capital program. And our midstream segment, which is primarily comprised of MPLX, has grown its adjusted EBITDA at nearly 7 percent compound annual growth rate over the last three years. Strong coverage, low leverage, and growing cash flows provide MPLX financial flexibility, placing it in an excellent position to continue to significantly grow its distributions, further enhancing the value of this strategic relationship. MPLX, sorry, MPC's total capital return since May 2021 has reduced MPC's share count by nearly 50%. Cash generation will continue to influence buyback capacity as we return to a normalized balance sheet. Given our highly advantaged refining business and the $2.2 billion annualized distribution from MPLX, we believe we can lead peers in capital returns through all parts of the cycle. MPC generated second quarter adjusted earnings per share of $4.12, Our operational excellence and commercial performance support our quarterly results. This quarter, we delivered refining utilization at 97 percent, capture of 94 percent, up 2 percent, while other refining peers reported sequential declines. Adjusted R&M EBITDA per barrel of $7.07 in cash from operations, excluding the impacts of working capital of $2.7 billion, both of which led refining peers. And we returned $3.2 billion to our shareholders. The capabilities we have built provide a sustainable advantage, and we expect to continue to see the impact on our quarterly results. Let me turn the call over to John.

Thanks, Mary Ann. Slide five shows the sequential change in adjusted EBITDA from first quarter 2024 to second quarter 2024, as well as the reconciliation between net income and adjusted EBITDA for the quarter. Adjusted EBITDA was higher sequentially by $133 million driven by increased results in both our refining and marketing and midstream segments. The tax rate for the quarter was 16 percent, resulting in a tax provision of $373 million. The second quarter tax rate largely reflects the earnings mix between our R&M and midstream businesses. Moving to our segment results, slide six provides an overview of our refining and marketing segment for the second quarter. Following significant turnaround activity in the first quarter, our refineries ran at 97 percent utilization, processing nearly 2.9 million barrels of crude per day. Refining operating costs were $4.97 per barrel in the second quarter, lower sequentially primarily due to higher throughputs, lower project-related expenses associated with reduced turnaround activity, and lower energy costs. In our largest region, the U.S. Gulf Coast, our operating costs were $3.73 per barrel, demonstrating our cost competitiveness. Sequentially, per barrel margins were down, primarily due to lower crack spreads. Slide seven provides an overview of our refining and marketing margin capture of 94% for the quarter. Capture in the quarter reflected tailwinds from gasoline margins offset by increased headwinds from secondary product pricing, which was driven by high refining industry utilization. Gasoline margins were supported by a falling price environment during the quarter. And in addition, our integrated system and realized demand across our multiple sales channels was a competitive differentiator to our capture performance. Slide eight shows the changes in our midstream segment adjusted EBITDA versus the first quarter of 2024. Our midstream segment is generating strong cash flows. This quarter, MPLX distributions contributed $550 million in cash flow to MPC. The two midstream transactions Marianne discussed earlier further enhance our Permian value chains for both natural gas and NGLs. Through organic growth and disciplined investments, MPLX continues to provide growing cash flows to MPC. MPLX is a differentiator in the MPC portfolio and remains a source of durable earnings growth. Slide nine presents the elements of change in our consolidated cash position for the second quarter. Operating cash flow excluding changes in working capital was $2.7 billion in the quarter, driven by both our refining and midstream businesses. Working capital was a $541 million source of cash for the quarter, primarily driven by the decrease in refined product prices. This quarter, capital expenditures and investments were $541 million. And during the second quarter, MPLX issued $1.65 billion in tenured senior notes, the proceeds of which MPLX expects to use to retire senior notes maturing in December of this year and February of next year. MPC returned $2.9 billion through share repurchases and $290 million in dividends during the quarter. And in July, we've repurchased just over $900 million of MPC shares, leaving $5.8 billion remaining under our current share repurchase authorizations and highlighting our commitment to superior shareholder returns. At the end of the second quarter, MPC had approximately $6 billion in consolidated cash and short-term investments, excluding cash at MPLX. Turning to guidance on slide 10 we provide our third quarter outlook. We are projecting crude throughput volumes of just over 2.6 million barrels per day representing utilization of 90 percent. Planned turnaround expense is projected to be approximately 330 million dollars in the third quarter with activity focused in the MidCon and Gulf Coast regions. Turnaround expense for the full year is anticipated to be approximately $1.4 billion. Operating costs are projected to be $5.35 per barrel in the third quarter. Distribution costs are expected to be approximately $1.55 billion. And corporate costs are expected to be $200 million. In summary, our second quarter results reflect strong cash generation and disciplined capital allocation. The RNM segment generated $2 billion of adjusted EBITDA, and MPLX distributed $550 million to MPC. This supported investments of over $500 million and capital return of approximately $3.2 billion. With that, let me pass it back to Marianne.