Delaware | 1-3473 | 95-0862768 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
19100 Ridgewood Pkwy San Antonio, Texas | 78259-1828 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Date: | August 6, 2018 | ||||
Andeavor | |||||
By: | /s/ BLANE W. PEERY | ||||
Blane W. Peery | |||||
Vice President and Controller |
• | Reported quarterly earnings of $515 million, or $3.38 per diluted share, consolidated net earnings of $582 million and EBITDA of $1,150 million |
• | Subject to approval of shareholders and customary closing conditions, expecting to close strategic combination with Marathon on October 1, 2018; Andeavor shareholder meeting scheduled for September 24, 2018 |
• | Announced participation in Gray Oak Pipeline and South Texas Gateway Terminal joint ventures on April 24, 2018 to transport Permian Basin crude oil to Corpus Christi, Texas |
• | Completed West Coast, Nevada and Arizona Asphalt Terminals Acquisition and Wamsutter Pipeline Acquisition |
• | Announced further strengthening of refined product supply into Mexico with construction of a new terminal and additional Pemex open season capacity awards |
• | Completed $1,550 million drop down to Andeavor Logistics on August 6, 2018, adding 2019 expected annual net earnings of $105 to $115 million and EBITDA of $195 to $205 million |
• | Announced project to convert Dickinson Refinery to 100% renewable diesel production |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Unaudited) ($ in millions, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Segment Operating Income | |||||||||||||||
Marketing | $ | 209 | $ | 240 | $ | 337 | $ | 373 | |||||||
Logistics | 193 | 163 | 381 | 313 | |||||||||||
Refining | 607 | 45 | 812 | 79 | |||||||||||
Total Segment Operating Income | $ | 1,009 | $ | 448 | $ | 1,530 | $ | 765 | |||||||
Net Earnings From Continuing Operations Attributable to Andeavor (a) | $ | 515 | $ | 40 | $ | 679 | $ | 90 | |||||||
Diluted EPS - Continuing Operations | $ | 3.38 | $ | 0.31 | $ | 4.43 | $ | 0.72 | |||||||
Diluted EPS - Discontinued Operations | — | — | 0.05 | — | |||||||||||
Total Diluted EPS | $ | 3.38 | $ | 0.31 | $ | 4.48 | $ | 0.72 |
(a) | Referred to in the body of this press release as “earnings.” |
Throughput (Mbpd) | |
California | 510 - 550 |
Inland | 385 - 415 |
Pacific Northwest | 180 - 190 |
Consolidated | 1,075 - 1,155 |
Manufacturing Cost ($/throughput barrel) | |
California | $6.25 - $6.75 |
Inland | $4.80 - $5.20 |
Pacific Northwest | $3.65 - $3.85 |
Consolidated | $5.30 - $5.70 |
($ millions) | |
Marketing depreciation and amortization | $20 - $25 |
Logistics depreciation and amortization | $85 - $90 |
Refining depreciation and amortization | $170 - $175 |
Corporate and other depreciation and amortization | $15 - $20 |
Corporate expense (before depreciation; excludes any acquisition and integration costs) | $135 - $140 |
Interest expense (before interest income) | $105 - $115 |
Noncontrolling interest (includes expected 2018 drop down impact) | $65 - $70 |
• | EBITDA - U.S. GAAP-based net earnings before interest, income taxes, and depreciation and amortization expenses; |
• | Segment EBITDA - a segment’s U.S. GAAP operating income before depreciation and amortization expenses plus equity in earnings (loss) of equity method investments and other income (expense), net; |
• | Fuel margin - the difference between total marketing revenues and marketing cost of fuels and other; |
• | Fuel margin per gallon - fuel margin divided by our total fuel sales volumes in gallons; |
• | Merchandise margin - the difference between merchandise sales and purchases of merchandise; |
• | Merchandise margin percentage - merchandise margin divided by merchandise sales; |
• | Average margin on NGL sales per barrel - the difference between the NGL sales revenues and the amounts recognized as NGL expenses divided by our NGL sales volumes in barrels presented in Mbpd multiplied by 1,000 and multiplied by the number of days in the period, (91 days for both the three months ended June 30, 2018 and 2017 and 181 days for both the six months ended June 30, 2018 and 2017); |
• | Refining margin - the difference between total refining revenues and total cost of materials and other; |
• | Refining margin per throughput barrel - refining margin divided by our total refining throughput in barrels multiplied by 1,000 and multiplied by the number of days in the period as stated above; |
• | Manufacturing costs (excluding depreciation and amortization) per throughput barrel - manufacturing costs divided by our total refining throughput in barrels multiplied by 1,000 and multiplied by the number of days in the period as stated above (representing direct operating expenses incurred by our Refining segment for the production of refined products); |
• | Total debt excluding Andeavor Logistics - our consolidated Andeavor debt less all debt owed by Andeavor Logistics (net of unamortized debt issuance costs); and |
• | our operating performance as compared to other publicly traded companies in the refining, logistics and marketing industries, without regard to historical cost basis or financing methods; |
• | our ability to incur and service debt and fund capital expenditures; and |
• | the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. |
June 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents (Andeavor Logistics: $44 and $75, respectively) | $ | 388 | $ | 543 | |||
Receivables, net of allowance for doubtful accounts (Andeavor Logistics: $200 and $219, respectively) | 2,623 | 1,961 | |||||
Inventories | 3,653 | 3,630 | |||||
Prepayments and other current assets | 496 | 749 | |||||
Total Current Assets | 7,160 | 6,883 | |||||
Property, Plant and Equipment, Net (Andeavor Logistics: $5,625 and $5,413, respectively) | 15,445 | 14,742 | |||||
Other Noncurrent Assets, Net (Andeavor Logistics: $2,244 and $2,251, respectively) | 7,469 | 6,948 | |||||
Total Assets | $ | 30,074 | $ | 28,573 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 3,799 | $ | 3,330 | |||
Current maturities of debt | 28 | 17 | |||||
Other current liabilities | 1,227 | 1,654 | |||||
Total Current Liabilities | 5,054 | 5,001 | |||||
Deferred Income Taxes | 1,777 | 1,591 | |||||
Debt, Net of Unamortized Issuance Costs (Andeavor Logistics: $4,372 and $4,127, respectively) | 8,698 | 7,668 | |||||
Other Noncurrent Liabilities | 978 | 898 | |||||
Total Equity | 13,567 | 13,415 | |||||
Total Liabilities and Equity | $ | 30,074 | $ | 28,573 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 12,472 | $ | 7,849 | $ | 22,772 | $ | 14,487 | |||||||
Costs and Expenses: | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 10,235 | 6,217 | 18,844 | 11,643 | |||||||||||
Lower of cost or market inventory valuation adjustment | — | 209 | — | 209 | |||||||||||
Operating expenses (excluding depreciation and amortization) | 918 | 740 | 1,784 | 1,395 | |||||||||||
Depreciation and amortization expenses | 292 | 240 | 574 | 466 | |||||||||||
General and administrative expenses | 179 | 247 | 352 | 382 | |||||||||||
(Gain) loss on asset disposals and impairments | 1 | (22 | ) | 1 | (21 | ) | |||||||||
Operating Income | 847 | 218 | 1,217 | 413 | |||||||||||
Interest and financing costs, net | (109 | ) | (96 | ) | (211 | ) | (194 | ) | |||||||
Equity in earnings of equity method investments | 11 | 3 | 21 | 3 | |||||||||||
Other income, net | — | 18 | 10 | 29 | |||||||||||
Earnings Before Income Taxes | 749 | 143 | 1,037 | 251 | |||||||||||
Income tax expense | 167 | 56 | 226 | 77 | |||||||||||
Net Earnings From Continuing Operations | 582 | 87 | 811 | 174 | |||||||||||
Earnings from discontinued operations, net of tax | — | — | 8 | — | |||||||||||
Net Earnings | 582 | 87 | 819 | 174 | |||||||||||
Less: Net earnings from continuing operations attributable to noncontrolling interest | 67 | 47 | 132 | 84 | |||||||||||
Net Earnings Attributable to Andeavor | $ | 515 | $ | 40 | $ | 687 | $ | 90 | |||||||
Net Earnings Attributable to Andeavor | |||||||||||||||
Continuing operations | $ | 515 | $ | 40 | $ | 679 | $ | 90 | |||||||
Discontinued operations | — | — | 8 | — | |||||||||||
Total | $ | 515 | $ | 40 | $ | 687 | $ | 90 | |||||||
Net Earnings per Share - Basic | |||||||||||||||
Continuing operations | $ | 3.41 | $ | 0.31 | $ | 4.47 | $ | 0.73 | |||||||
Discontinued operations | — | — | 0.05 | — | |||||||||||
Total | $ | 3.41 | $ | 0.31 | $ | 4.52 | $ | 0.73 | |||||||
Weighted average common shares outstanding - Basic | 151.1 | 130.8 | 152.0 | 124.0 | |||||||||||
Net Earnings per Share - Diluted | |||||||||||||||
Continuing operations | $ | 3.38 | $ | 0.31 | $ | 4.43 | $ | 0.72 | |||||||
Discontinued operations | — | — | 0.05 | — | |||||||||||
Total | $ | 3.38 | $ | 0.31 | $ | 4.48 | $ | 0.72 | |||||||
Weighted average common shares outstanding - Diluted | 152.6 | 131.7 | 153.5 | 125.0 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Earnings Before Income Taxes | |||||||||||||||
Marketing | $ | 209 | $ | 240 | $ | 337 | $ | 373 | |||||||
Logistics | 193 | 163 | 381 | 313 | |||||||||||
Refining | 607 | 45 | 812 | 79 | |||||||||||
Total Segment Operating Income | 1,009 | 448 | 1,530 | 765 | |||||||||||
Corporate and unallocated costs | (162 | ) | (228 | ) | (313 | ) | (350 | ) | |||||||
Intersegment eliminations | — | (2 | ) | — | (2 | ) | |||||||||
Operating Income | 847 | 218 | 1,217 | 413 | |||||||||||
Interest and financing costs, net | (109 | ) | (96 | ) | (211 | ) | (194 | ) | |||||||
Equity in earnings of equity method investments | 11 | 3 | 21 | 3 | |||||||||||
Other income, net | — | 18 | 10 | 29 | |||||||||||
Earnings Before Income Taxes | $ | 749 | $ | 143 | $ | 1,037 | $ | 251 | |||||||
Depreciation and Amortization Expenses | |||||||||||||||
Marketing | $ | 21 | $ | 15 | $ | 43 | $ | 28 | |||||||
Logistics | 83 | 68 | 162 | 126 | |||||||||||
Refining | 175 | 153 | 348 | 301 | |||||||||||
Corporate | 13 | 6 | 21 | 13 | |||||||||||
Intersegment eliminations | — | (2 | ) | — | (2 | ) | |||||||||
Total Depreciation and Amortization Expenses | $ | 292 | $ | 240 | $ | 574 | $ | 466 | |||||||
Segment EBITDA | |||||||||||||||
Marketing | $ | 227 | $ | 255 | $ | 379 | $ | 401 | |||||||
Logistics | 282 | 236 | 553 | 448 | |||||||||||
Refining | 782 | 206 | 1,169 | 387 | |||||||||||
Total Segment EBITDA | $ | 1,291 | $ | 697 | $ | 2,101 | $ | 1,236 | |||||||
Capital Expenditures | |||||||||||||||
Marketing | $ | 17 | $ | 7 | $ | 30 | $ | 13 | |||||||
Logistics | 104 | 49 | 187 | 94 | |||||||||||
Refining | 253 | 154 | 565 | 286 | |||||||||||
Corporate | 8 | 57 | 20 | 100 | |||||||||||
Total Capital Expenditures | $ | 382 | $ | 267 | $ | 802 | $ | 493 | |||||||
Turnaround Expenditures and Marketing Branding Costs | |||||||||||||||
Turnarounds and catalysts | $ | 156 | $ | 198 | $ | 359 | $ | 309 | |||||||
Marketing branding | 13 | 19 | 23 | 37 | |||||||||||
Total Turnaround Expenditures and Marketing Branding Costs | $ | 169 | $ | 217 | $ | 382 | $ | 346 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reconciliation of Net Earnings to EBITDA | |||||||||||||||
Net Earnings | $ | 582 | $ | 87 | $ | 819 | $ | 174 | |||||||
Depreciation and amortization expenses | 292 | 240 | 574 | 466 | |||||||||||
Interest and financing costs, net | 109 | 96 | 211 | 194 | |||||||||||
Income tax expense | 167 | 56 | 226 | 77 | |||||||||||
EBITDA | $ | 1,150 | $ | 479 | $ | 1,830 | $ | 911 | |||||||
Reconciliation of Marketing Segment Operating Income to Marketing Segment EBITDA | |||||||||||||||
Marketing Segment Operating Income | $ | 209 | $ | 240 | $ | 337 | $ | 373 | |||||||
Depreciation and amortization expenses | 21 | 15 | 43 | 28 | |||||||||||
Other expense, net | (3 | ) | — | (1 | ) | — | |||||||||
Marketing Segment EBITDA | $ | 227 | $ | 255 | $ | 379 | $ | 401 | |||||||
Reconciliation of Logistics Segment Operating Income to Logistics Segment EBITDA | |||||||||||||||
Logistics Segment Operating Income | $ | 193 | $ | 163 | $ | 381 | $ | 313 | |||||||
Depreciation and amortization expenses | 83 | 68 | 162 | 126 | |||||||||||
Equity in earnings of equity method investments | 5 | 3 | 8 | 5 | |||||||||||
Other income, net | 1 | 2 | 2 | 4 | |||||||||||
Logistics Segment EBITDA | $ | 282 | $ | 236 | $ | 553 | $ | 448 | |||||||
Reconciliation of Refining Segment Operating Income to Refining Segment EBITDA | |||||||||||||||
Refining Segment Operating Income | $ | 607 | $ | 45 | $ | 812 | $ | 79 | |||||||
Depreciation and amortization expenses | 175 | 153 | 348 | 301 | |||||||||||
Equity in earnings (loss) of equity method investments | 6 | — | 13 | (2 | ) | ||||||||||
Other income (expense), net | (6 | ) | 8 | (4 | ) | 9 | |||||||||
Refining Segment EBITDA | $ | 782 | $ | 206 | $ | 1,169 | $ | 387 |
Western Refining Acquisition - Summary of Integration, Acquisition and Deal-Related Costs (Consolidated) | ||||||||||||||||||||||||
Three Months Ended | Cumulative Total | |||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||||||
General and administrative expenses | $ | 13 | $ | 17 | $ | 11 | $ | 32 | $ | 124 | $ | 16 | $ | 3 | $ | 216 | ||||||||
Interest and financing costs, net | — | — | — | — | 11 | 17 | 21 | 49 | ||||||||||||||||
Total Before Income Taxes | $ | 13 | $ | 17 | $ | 11 | $ | 32 | $ | 135 | $ | 33 | $ | 24 | $ | 265 |
Components of Cash Flows | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cash Flows From (Used in): | |||||||||||||||
Operating activities | $ | 847 | $ | 670 | $ | 1,097 | $ | 770 | |||||||
Investing activities | (696 | ) | (519 | ) | (1,512 | ) | (1,448 | ) | |||||||
Financing activities | (196 | ) | (1,388 | ) | 260 | (1,556 | ) | ||||||||
Decrease in Cash and Cash Equivalents | $ | (45 | ) | $ | (1,237 | ) | $ | (155 | ) | $ | (2,234 | ) |
Other Financial Information | |||||||
June 30, 2018 | December 31, 2017 | ||||||
Total market value of Andeavor Logistics units held by Andeavor (a) | $ | 5,439 | $ | 5,907 |
Cash Distributions Received From Andeavor Logistics (b) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
For common units held | $ | 115 | $ | 32 | $ | 230 | $ | 63 | |||||||
For general partner units held | — | 39 | — | 85 | |||||||||||
Total Cash Distributions Received from Andeavor Logistics | $ | 115 | $ | 71 | $ | 230 | $ | 148 |
(a) | Represents market value of 127,889,386 common units held by Andeavor at both June 30, 2018 and December 31, 2017. The market values were $42.53 and $46.19 per unit based on the closing unit price at June 30, 2018 and December 31, 2017, respectively. |
(b) | Represents distributions received from Andeavor Logistics during the three and six months ended June 30, 2018 and 2017 on common units and general partner units held by Andeavor. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Marketing Segment | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues | $ | 6,854 | $ | 4,971 | $ | 12,519 | $ | 9,075 | |||||||
Expenses | |||||||||||||||
Cost of fuels and other (excluding items shown separately below) | 6,431 | 4,606 | 11,770 | 8,491 | |||||||||||
Operating expenses (excluding depreciation and amortization) | 178 | 105 | 345 | 173 | |||||||||||
Depreciation and amortization expenses | 21 | 15 | 43 | 28 | |||||||||||
Selling, general and administrative expenses | 14 | 5 | 23 | 10 | |||||||||||
Loss on asset disposals and impairments | 1 | — | 1 | — | |||||||||||
Segment Operating Income | $ | 209 | $ | 240 | $ | 337 | $ | 373 | |||||||
Fuel Sales (millions of gallons) | |||||||||||||||
Retail | 487 | 354 | 954 | 630 | |||||||||||
Branded | 915 | 866 | 1,772 | 1,681 | |||||||||||
Total Retail and Branded | 1,402 | 1,220 | 2,726 | 2,311 | |||||||||||
Unbranded | 1,509 | 1,217 | 2,941 | 2,223 | |||||||||||
Total Fuel Sales | 2,911 | 2,437 | 5,667 | 4,534 | |||||||||||
Marketing Margin | |||||||||||||||
Retail and Branded fuel margin | $ | 296 | $ | 282 | $ | 510 | $ | 471 | |||||||
Unbranded fuel margin | 42 | 40 | 80 | 52 | |||||||||||
Total Fuel Margin (c) | 338 | 322 | 590 | 523 | |||||||||||
Merchandise margin (c) | 58 | 20 | 108 | 23 | |||||||||||
Other margin | 27 | 23 | 51 | 38 | |||||||||||
Total Convenience Margin | 85 | 43 | 159 | 61 | |||||||||||
Total Marketing Margin (c) | $ | 423 | $ | 365 | $ | 749 | $ | 584 | |||||||
Fuel Margin (¢/gallon) (c) | |||||||||||||||
Retail and Branded Fuel Margin | 21.1 | ¢ | 23.2 | ¢ | 18.7 | ¢ | 20.5 | ¢ | |||||||
Unbranded Fuel Margin | 2.9 | ¢ | 3.2 | ¢ | 2.7 | ¢ | 2.3 | ¢ | |||||||
Total Fuel Margin | 11.6 | ¢ | 13.2 | ¢ | 10.4 | ¢ | 11.6 | ¢ | |||||||
Merchandise Margin % (c) | 28.9 | % | 28.3 | % | 28.5 | % | 28.8 | % | |||||||
Number of Branded Stations (at the end of the period) | June 30, 2018 | June 30, 2017 | |||||||||||||
Company operated | 574 | 457 | |||||||||||||
MSO operated | 510 | 595 | |||||||||||||
Total Retail Stations | 1,084 | 1,052 | |||||||||||||
Jobber/Dealer operated | 2,246 | 2,021 | |||||||||||||
Total Retail and Branded Stations | 3,330 | 3,073 |
(c) | Management uses fuel margin and fuel margin per gallon to compare fuel results and merchandise margin and merchandise margin percentage to compare retail results to other companies in the industry. There are a variety of ways to calculate fuel margin, fuel margin per gallon, merchandise margin and merchandise margin percentage. Different companies may calculate these measures in different ways. Refer to “Non-GAAP Measures” and “Non-GAAP Reconciliations” for further information regarding these non-GAAP measures. Fuel margin and fuel margin per gallon include the effect of intersegment purchases from the Refining segment. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Logistics Segment | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues | |||||||||||||||
Terminalling and transportation | |||||||||||||||
Terminalling | $ | 208 | $ | 159 | $ | 406 | $ | 304 | |||||||
Pipeline transportation | 40 | 33 | 71 | 63 | |||||||||||
Other revenues | 1 | 2 | 3 | 2 | |||||||||||
Gathering and processing | |||||||||||||||
NGL sales (d) | 95 | 81 | 199 | 164 | |||||||||||
Gas gathering and processing | 82 | 87 | 167 | 167 | |||||||||||
Crude oil and water gathering | 69 | 41 | 134 | 80 | |||||||||||
Pass-thru and other revenue | 48 | 33 | 89 | 76 | |||||||||||
Logistics Revenues (e) | 543 | 436 | 1,069 | 856 | |||||||||||
Expenses | |||||||||||||||
Terminalling and transportation | |||||||||||||||
Operating expenses (excluding depreciation and amortization) (f) | 79 | 62 | 153 | 111 | |||||||||||
Gathering and processing | |||||||||||||||
NGL expense (excluding items shown separately below) (e)(g) | 45 | 56 | 93 | 115 | |||||||||||
Operating expenses (excluding depreciation and amortization) (f) | 116 | 83 | 227 | 160 | |||||||||||
Depreciation and amortization expenses | 83 | 68 | 162 | 126 | |||||||||||
General and administrative expenses (f) | 26 | 29 | 52 | 56 | |||||||||||
(Gain) loss on asset disposals and impairments | 1 | (25 | ) | 1 | (25 | ) | |||||||||
Segment Operating Income | $ | 193 | $ | 163 | $ | 381 | $ | 313 | |||||||
Terminalling and transportation | |||||||||||||||
Terminalling throughput (Mbpd) | 1,768 | 1,263 | 1,719 | 1,142 | |||||||||||
Average terminalling revenue per barrel (h) | $ | 1.29 | $ | 1.39 | $ | 1.30 | $ | 1.47 | |||||||
Pipeline transportation throughput (Mbpd) | 1,030 | 918 | 954 | 876 | |||||||||||
Average pipeline transportation revenue per barrel (h) | $ | 0.43 | $ | 0.40 | $ | 0.41 | $ | 0.40 | |||||||
Gathering and processing | |||||||||||||||
NGL sales (Mbpd) (i) | 9.1 | 7.3 | 10.4 | 7.4 | |||||||||||
Average margin on NGL sales per barrel (e)(g)(h) | $ | 59.77 | $ | 37.45 | $ | 55.81 | $ | 38.30 | |||||||
Gas gathering and processing throughput (thousands of MMBtu/d) (j) | 784 | 952 | 807 | 952 | |||||||||||
Average gas gathering and processing revenue per MMBtu (h) | $ | 1.16 | $ | 1.00 | $ | 1.14 | $ | 0.97 | |||||||
Crude oil and water gathering volume (Mbpd) | 301 | 269 | 302 | 261 | |||||||||||
Average crude oil and water gathering revenue per barrel (h) | $ | 2.55 | $ | 1.64 | $ | 2.46 | $ | 1.68 |
(d) | The Logistics segment had 21.9 Mbpd and 20.9 Mbpd of gross natural gas liquids (“NGL”) sales under percent of proceeds (“POP”) and keep-whole arrangements for the three months ended June 30, 2018 and 2017,respectively, of which the Logistics segment retained 9.1 Mbpd and 7.3 Mbpd, respectively. The Logistics segment had 24.3 Mbpd and 21.0 Mbpd of gross NGL sales under POP and keep-whole arrangements for the six months ended June 30, 2018 and 2017,respectively, of which the Logistics segment retained 10.4 Mbpd and 7.4 Mbpd, respectively.The difference between gross sales barrels and barrels retained is reflected in NGL expense resulting from the gross presentation required for the POP arrangements associated with the North Dakota Gathering and Processing Assets. |
(e) | Included in our Refining segment’s cost of materials and other were Logistics segment revenues for services provided to our Refining segment of $379 million and $202 million for the three months ended June 30, 2018 and 2017, respectively, and $688 million and $405 million for the six months ended June 30, 2018 and 2017, respectively. These amounts are eliminated upon consolidation. |
(f) | Our Logistics segment operating expenses and general and administrative expenses include amounts billed by Andeavor for services provided to Andeavor Logistics under various operational contracts. Amounts billed by Andeavor included in operating expenses totaled $52 million and $44 million for the three months ended June 30, 2018 and 2017, respectively, and $103 million and $83 million for the six months ended June 30, 2018 and 2017, respectively. The net amounts billed include reimbursements of $3 million and $2 million for the three months ended June 30, 2018 and 2017, respectively, and $10 million and $5 million for the six months ended June 30, 2018 and 2017, respectively. Amounts billed by Andeavor included in general and administrative expenses totaled $18 million and $19 million for the three months ended June 30, 2018 and 2017, respectively, and $38 million and $39 million for the six months ended June 30, 2018 and 2017, respectively. All of these amounts are eliminated upon consolidation. Those expenses with third-parties related to the transportation of crude oil and refined products related to Andeavor’s sale of those refined products during the ordinary course of business are reclassified to cost of materials and other in our statements of consolidated operations upon consolidation. |
(g) | Included in NGL expense for the six months ended June 30, 2017 were approximately $2 million of crude costs related to crude oil volumes obtained in connection with the North Dakota Gathering and Processing Assets acquisition. The corresponding revenues were recognized in pass-thru and other revenue. As such, the calculation of the average margin on NGL sales per barrel for the six months ended June 30, 2017 excludes this amount. |
(h) | Our Logistics segment uses average margin per barrel, average revenue per MMBtu and average revenue per barrel to evaluate performance and compare profitability to other companies in the industry. Refer to “Non-GAAP Measures” and “Non-GAAP Reconciliations” for further information regarding these non-GAAP measures. |
(i) | Volumes represent barrels sold under Logistics’ keep-whole arrangements, net barrels retained under its POP arrangements and other associated products. |
(j) | The adoption of ASC 606 changed the presentation of our gas gathering and processing throughput volumes. Volumes processed internally to enhance our NGL sales are no longer reported in our throughput volumes as certain fees contained within our commodity contracts are now reported as a reduction of “NGL expense”. The impact of the adoption was 150 thousand MMBtu/d and 162 thousand MMBtu/d for the three and six months ended June 30, 2018, respectively, now being used internally and not reported in the throughput volumes used to calculate our average gas gathering and processing revenue per MMBtu. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Refining Segment | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues | |||||||||||||||
Refined products (k) | $ | 10,362 | $ | 6,658 | $ | 19,033 | $ | 12,470 | |||||||
Crude oil resales and other | 1,299 | 391 | 2,272 | 635 | |||||||||||
Refining Revenues | 11,661 | 7,049 | 21,305 | 13,105 | |||||||||||
Refining Cost of Materials and Expense | |||||||||||||||
Cost of materials and other (excluding items shown separately below) (d) | 10,225 | 6,072 | 18,856 | 11,427 | |||||||||||
Lower of cost or market adjustments | — | 209 | — | 209 | |||||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs | 511 | 460 | 1,033 | 881 | |||||||||||
Other operating expenses | 141 | 104 | 250 | 199 | |||||||||||
Total operating expenses | 652 | 564 | 1,283 | 1,080 | |||||||||||
Depreciation and amortization expenses | 175 | 153 | 348 | 301 | |||||||||||
General and administrative expenses | 3 | 3 | 7 | 5 | |||||||||||
(Gain) loss on asset disposals and impairments | (1 | ) | 3 | (1 | ) | 4 | |||||||||
Segment Operating Income (Loss) | $ | 607 | $ | 45 | $ | 812 | $ | 79 | |||||||
Refining margin (l) | $ | 1,436 | $ | 768 | $ | 2,449 | $ | 1,469 | |||||||
Refining margin ($/throughput barrel) (l) | $ | 14.26 | $ | 9.45 | $ | 12.62 | $ | 9.45 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l) | $ | 5.07 | $ | 5.67 | $ | 5.32 | $ | 5.67 | |||||||
Total Refining Segment | |||||||||||||||
Throughput (Mbpd) | |||||||||||||||
Heavy crude | 197 | 186 | 202 | 172 | |||||||||||
Light crude | 837 | 649 | 796 | 628 | |||||||||||
Other feedstocks | 72 | 58 | 74 | 59 | |||||||||||
Total Throughput | 1,106 | 893 | 1,072 | 859 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 567 | 461 | 567 | 454 | |||||||||||
Diesel fuel | 272 | 205 | 258 | 192 | |||||||||||
Jet fuel | 130 | 133 | 131 | 123 | |||||||||||
Other | 148 | 147 | 126 | 141 | |||||||||||
Total Yield | 1,117 | 946 | 1,082 | 910 | |||||||||||
Refined Product Sales (Mbpd) (m) | |||||||||||||||
Gasoline and gasoline blendstocks | 692 | 580 | 693 | 541 | |||||||||||
Diesel fuel | 275 | 199 | 264 | 195 | |||||||||||
Jet fuel | 154 | 156 | 149 | 148 | |||||||||||
Other | 153 | 157 | 135 | 136 | |||||||||||
Total Refined Product Sales | 1,274 | 1,092 | 1,241 | 1,020 |
(k) | Refined product sales include intersegment sales to our Marketing segment of $6.2 billion and $4.4 billion for the three months ended June 30, 2018 and 2017, respectively, and $11.4 billion and $8.1 billion for the six months ended June 30, 2018 and 2017, respectively. |
(l) | Management uses various measures to evaluate performance and efficiency and to compare profitability to other companies in the industry, including refining margin, refining margin per throughput barrel and manufacturing costs before depreciation and amortization expenses per throughput barrel. Refer to “Non-GAAP Measures” and “Non-GAAP Reconciliations” for further information regarding these non-GAAP measures. |
(m) | Sources of total refined product sales include refined products manufactured at our refineries and refined products purchased from third parties. Total refined product sales include sales of manufactured and purchased refined products. Refined product sales include all sales through our Marketing segment as well as in bulk markets and exports through our Refining segment. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Refining By Region | 2018 | 2017 | 2018 | 2017 | |||||||||||
California (Los Angeles and Martinez) | |||||||||||||||
Revenues | |||||||||||||||
Refined products (k) | $ | 5,128 | $ | 4,048 | $ | 9,430 | $ | 7,972 | |||||||
Crude oil resales and other | 267 | 77 | 403 | 221 | |||||||||||
Regional Revenue | 5,395 | 4,125 | 9,833 | 8,193 | |||||||||||
Refining Cost of Materials and Expenses | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 4,781 | 3,506 | 8,839 | 7,100 | |||||||||||
Lower of cost or market adjustments | — | 98 | — | 98 | |||||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs | 284 | 291 | 565 | 586 | |||||||||||
Other operating expenses | 74 | 59 | 133 | 115 | |||||||||||
Total operating expenses | 358 | 350 | 698 | 701 | |||||||||||
Depreciation and amortization expenses | 95 | 93 | 186 | 187 | |||||||||||
General and administrative expenses | 1 | 2 | 2 | 4 | |||||||||||
(Gain) loss on asset disposals and impairments | (1 | ) | 3 | (1 | ) | 4 | |||||||||
Operating Income | $ | 161 | $ | 73 | $ | 109 | $ | 99 | |||||||
Refining margin (l) | $ | 614 | $ | 521 | $ | 994 | $ | 995 | |||||||
Refining margin per throughput barrel (l) | $ | 12.18 | $ | 10.78 | $ | 11.05 | $ | 10.65 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l) | $ | 5.62 | $ | 6.02 | $ | 6.28 | $ | 6.27 | |||||||
Capital expenditures | $ | 80 | $ | 77 | $ | 218 | $ | 141 | |||||||
Throughput (Mbpd) | |||||||||||||||
Heavy crude | 157 | 168 | 161 | 159 | |||||||||||
Light crude | 343 | 326 | 283 | 318 | |||||||||||
Other feedstocks | 55 | 37 | 53 | 39 | |||||||||||
Total Throughput | 555 | 531 | 497 | 516 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 305 | 287 | 285 | 287 | |||||||||||
Diesel fuel | 125 | 119 | 110 | 111 | |||||||||||
Jet fuel | 69 | 80 | 61 | 71 | |||||||||||
Other | 70 | 88 | 54 | 88 | |||||||||||
Total Yield | 569 | 574 | 510 | 557 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Inland (Texas, Minnesota, North Dakota, Utah, and New Mexico) | |||||||||||||||
Revenues | |||||||||||||||
Refined products (k) | $ | 3,730 | $ | 1,436 | $ | 6,913 | $ | 2,232 | |||||||
Crude oil resales and other | 942 | 249 | 1,732 | 296 | |||||||||||
Regional Revenue | 4,672 | 1,685 | 8,645 | 2,528 | |||||||||||
Refining Cost of Materials and Expenses | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 3,927 | 1,446 | 7,387 | 2,190 | |||||||||||
Lower of cost or market adjustments | — | 65 | — | 65 | |||||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs | 171 | 96 | 345 | 155 | |||||||||||
Other operating expenses | 50 | 25 | 78 | 46 | |||||||||||
Total operating expenses | 221 | 121 | 423 | 201 | |||||||||||
Depreciation and amortization expenses | 59 | 33 | 116 | 60 | |||||||||||
General and administrative expenses | 2 | 1 | 5 | 1 | |||||||||||
Operating Income | $ | 463 | $ | 19 | $ | 714 | $ | 11 | |||||||
Refining margin (l) | $ | 745 | $ | 174 | $ | 1,258 | $ | 273 | |||||||
Refining margin per throughput barrel (l) | $ | 19.56 | $ | 9.96 | $ | 16.85 | $ | 9.14 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l) | $ | 4.48 | $ | 5.49 | $ | 4.61 | $ | 5.19 | |||||||
Capital expenditures | $ | 130 | $ | 43 | $ | 267 | $ | 80 | |||||||
Throughput (Mbpd) | |||||||||||||||
Heavy Crude | 31 | 10 | 30 | 5 | |||||||||||
Light crude | 375 | 175 | 370 | 155 | |||||||||||
Other feedstocks | 12 | 7 | 12 | 5 | |||||||||||
Total Throughput | 418 | 192 | 412 | 165 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 219 | 103 | 220 | 90 | |||||||||||
Diesel fuel | 129 | 58 | 122 | 50 | |||||||||||
Jet fuel | 29 | 15 | 34 | 14 | |||||||||||
Other | 40 | 19 | 36 | 14 | |||||||||||
Total Yield | 417 | 195 | 412 | 168 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Pacific Northwest (Washington and Alaska) | |||||||||||||||
Revenues | |||||||||||||||
Refined products (k) | $ | 1,504 | $ | 1,174 | $ | 2,690 | $ | 2,266 | |||||||
Crude oil resales and other | 90 | 65 | 137 | 118 | |||||||||||
Regional Revenue | 1,594 | 1,239 | 2,827 | 2,384 | |||||||||||
Refining Cost of Materials and Expenses | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 1,517 | 1,120 | 2,630 | 2,137 | |||||||||||
Lower of cost or market adjustments | — | 46 | — | 46 | |||||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs | 56 | 73 | 123 | 140 | |||||||||||
Other operating expenses | 17 | 20 | 39 | 38 | |||||||||||
Total operating expenses | 73 | 93 | 162 | 178 | |||||||||||
Depreciation and amortization expenses | 21 | 27 | 46 | 54 | |||||||||||
General and administrative expenses | — | — | — | — | |||||||||||
Operating Loss | $ | (17 | ) | $ | (47 | ) | $ | (11 | ) | $ | (31 | ) | |||
Refining margin (l) | $ | 77 | $ | 73 | $ | 197 | $ | 201 | |||||||
Refining margin per throughput barrel (l) | $ | 6.31 | $ | 4.72 | $ | 6.70 | $ | 6.24 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l) | $ | 4.66 | $ | 4.72 | $ | 4.20 | $ | 4.35 | |||||||
Capital expenditures | $ | 43 | $ | 34 | $ | 80 | $ | 65 | |||||||
Throughput (Mbpd) | |||||||||||||||
Heavy crude | 9 | 8 | 11 | 8 | |||||||||||
Light crude | 119 | 148 | 143 | 155 | |||||||||||
Other feedstocks | 5 | 14 | 9 | 15 | |||||||||||
Total Throughput | 133 | 170 | 163 | 178 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 43 | 71 | 62 | 77 | |||||||||||
Diesel fuel | 18 | 28 | 26 | 31 | |||||||||||
Jet fuel | 32 | 38 | 36 | 38 | |||||||||||
Other | 38 | 40 | 36 | 39 | |||||||||||
Total Yield | 131 | 177 | 160 | 185 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Segment Operating Income | $ | 128 | $ | 209 | $ | 240 | $ | 337 | $ | 373 | |||||||||
Add back: | |||||||||||||||||||
Operating expenses | 167 | 178 | 105 | 345 | 173 | ||||||||||||||
Depreciation and amortization expenses | 22 | 21 | 15 | 43 | 28 | ||||||||||||||
Selling, General and administrative expenses | 9 | 14 | 5 | 23 | 10 | ||||||||||||||
Loss on asset disposals | — | 1 | — | 1 | — | ||||||||||||||
Marketing Margin | $ | 326 | $ | 423 | $ | 365 | $ | 749 | $ | 584 | |||||||||
Revenues | |||||||||||||||||||
Retail and Branded fuel sales | $ | 2,924 | $ | 3,555 | $ | 2,676 | $ | 6,479 | $ | 5,000 | |||||||||
Unbranded fuel sales | 2,527 | 3,053 | 2,197 | 5,580 | 3,956 | ||||||||||||||
Total fuel sales | 5,451 | 6,608 | 4,873 | 12,059 | 8,956 | ||||||||||||||
Merchandise | 176 | 204 | 71 | 380 | 77 | ||||||||||||||
Other sales | 38 | 42 | 27 | 80 | 42 | ||||||||||||||
Total Revenues | 5,665 | 6,854 | 4,971 | 12,519 | 9,075 | ||||||||||||||
Cost of Fuel and Other (excluding depreciation and amortization) | |||||||||||||||||||
Retail and Branded fuel costs | 2,710 | 3,259 | 2,394 | 5,969 | 4,529 | ||||||||||||||
Unbranded fuel costs | 2,489 | 3,011 | 2,157 | 5,500 | 3,904 | ||||||||||||||
Total fuel costs | 5,199 | 6,270 | 4,551 | 11,469 | 8,433 | ||||||||||||||
Purchases of merchandise | 126 | 146 | 51 | 272 | 54 | ||||||||||||||
Other costs | 14 | 15 | 4 | 29 | 4 | ||||||||||||||
Total Cost of Fuel and Other | 5,339 | 6,431 | 4,606 | 11,770 | 8,491 | ||||||||||||||
Marketing Margin | |||||||||||||||||||
Retail and Branded fuel margin | 214 | 296 | 282 | 510 | 471 | ||||||||||||||
Unbranded fuel margin | 38 | 42 | 40 | 80 | 52 | ||||||||||||||
Total fuel margin | 252 | 338 | 322 | 590 | 523 | ||||||||||||||
Merchandise margin | 50 | 58 | 20 | 108 | 23 | ||||||||||||||
Other margin | 24 | 27 | 23 | 51 | 38 | ||||||||||||||
Total Convenience Margin | 74 | 85 | 43 | 159 | 61 | ||||||||||||||
Marketing Margin | $ | 326 | $ | 423 | $ | 365 | $ | 749 | $ | 584 | |||||||||
Merchandise Margin Percentage (n) | 28.0 | % | 28.9 | % | 28.3 | % | 28.5 | % | 28.8 | % | |||||||||
Fuel Sales (millions of gallons) | |||||||||||||||||||
Retail and Branded fuel sales | 1,324 | 1,402 | 1,220 | 2,726 | 2,311 | ||||||||||||||
Unbranded fuel sales | 1,432 | 1,509 | 1,217 | 2,941 | 2,223 | ||||||||||||||
Total Fuel Sales | 2,756 | 2,911 | 2,437 | 5,667 | 4,534 | ||||||||||||||
Retail and Branded Fuel Margin (¢/gallon) (n) | 16.2 | ¢ | 21.1 | ¢ | 23.2 | ¢ | 18.7 | ¢ | 20.5 | ¢ | |||||||||
Unbranded Fuel Margin (¢/gallon) (n) | 2.6 | ¢ | 2.9 | ¢ | 3.2 | ¢ | 2.7 | ¢ | 2.3 | ¢ | |||||||||
Total Fuel Margin (¢/gallon) (n) | 9.1 | ¢ | 11.6 | ¢ | 13.2 | ¢ | 10.4 | ¢ | 11.6 | ¢ |
(m) | Amounts may not recalculate due to rounding of dollar and volume information. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Segment Operating Income | $ | 193 | $ | 163 | $ | 381 | $ | 313 | |||||||
Add back: | |||||||||||||||
Operating expenses | 195 | 145 | 380 | 271 | |||||||||||
Depreciation and amortization expenses | 83 | 68 | 162 | 126 | |||||||||||
General and administrative expenses | 26 | 29 | 52 | 56 | |||||||||||
(Gain) loss on asset disposals and impairments | 1 | (25 | ) | 1 | (25 | ) | |||||||||
Other commodity purchases | — | — | — | 2 | |||||||||||
Subtract: | |||||||||||||||
Terminalling revenues | (208 | ) | (159 | ) | (406 | ) | (304 | ) | |||||||
Pipeline transportation revenues | (40 | ) | (33 | ) | (71 | ) | (63 | ) | |||||||
Other terminalling revenues | (1 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||
Gas gathering and processing revenues | (82 | ) | (87 | ) | (167 | ) | (167 | ) | |||||||
Crude oil gathering revenues | (69 | ) | (41 | ) | (134 | ) | (80 | ) | |||||||
Pass-thru and other revenues | (48 | ) | (33 | ) | (89 | ) | (76 | ) | |||||||
Margin on NGL Sales | $ | 50 | $ | 25 | $ | 106 | $ | 51 | |||||||
Divided by Total Volumes for the Period: | |||||||||||||||
NGLs sales volumes (Mbpd) | 9.1 | 7.3 | 10.4 | 7.4 | |||||||||||
Number of days in the period | 91 | 91 | 181 | 181 | |||||||||||
Total volumes for the period (thousands of barrels) (n) | 828 | 664 | 1,882 | 1,339 | |||||||||||
Average Margin on NGL Sales per Barrel (n) | $ | 59.77 | $ | 37.45 | $ | 55.81 | $ | 38.30 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Segment Operating Income (Loss) | $ | 607 | $ | 45 | $ | 812 | $ | 79 | |||||||
Add back: | |||||||||||||||
Manufacturing costs (excluding depreciation and amortization) | 511 | 460 | 1,033 | 881 | |||||||||||
Other operating expenses (excluding depreciation and amortization) | 141 | 104 | 250 | 199 | |||||||||||
Depreciation and amortization expenses | 175 | 153 | 348 | 301 | |||||||||||
General and administrative expenses | 3 | 3 | 7 | 5 | |||||||||||
(Gain) loss on asset disposals and impairments | (1 | ) | 3 | (1 | ) | 4 | |||||||||
Refining Margin | $ | 1,436 | $ | 768 | $ | 2,449 | $ | 1,469 | |||||||
Divided by Total Volumes: | |||||||||||||||
Total refining throughput (Mbpd) | 1,106 | 893 | 1,072 | 859 | |||||||||||
Number of days in the period | 91 | 91 | 181 | 181 | |||||||||||
Total volumes for the period (millions of barrels) (n) | 100.6 | 81.3 | 194.0 | 155.5 | |||||||||||
Refining Margin per Throughput Barrel (n) | $ | 14.26 | $ | 9.45 | $ | 12.62 | $ | 9.45 |
Three Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
California (Los Angeles and Martinez) | Inland (Texas, Minnesota, North Dakota, Utah and New Mexico) | Pacific Northwest (Washington and Alaska) | |||||||||||||||||||||
Segment Operating Income (Loss) | $ | 161 | $ | 73 | $ | 463 | $ | 19 | $ | (17 | ) | $ | (47 | ) | |||||||||
Add back: | |||||||||||||||||||||||
Manufacturing costs (excluding depreciation and amortization) | 284 | 291 | 171 | 96 | 56 | 73 | |||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | 74 | 59 | 50 | 25 | 17 | 20 | |||||||||||||||||
Depreciation and amortization expenses | 95 | 93 | 59 | 33 | 21 | 27 | |||||||||||||||||
General and administrative expenses | 1 | 2 | 2 | 1 | — | — | |||||||||||||||||
(Gain) loss on asset disposals and impairments | (1 | ) | 3 | — | — | — | — | ||||||||||||||||
Refining Margin | $ | 614 | $ | 521 | $ | 745 | $ | 174 | $ | 77 | $ | 73 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 555 | 531 | 418 | 192 | 133 | 170 | |||||||||||||||||
Number of days in the period | 91 | 91 | 91 | 91 | 91 | 91 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 50.5 | 48.3 | 38.0 | 17.5 | 12.1 | 15.5 | |||||||||||||||||
Refining Margin per Throughput Barrel (n) | $ | 12.18 | $ | 10.78 | $ | 19.56 | $ | 9.96 | $ | 6.31 | $ | 4.72 | |||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
California (Los Angeles and Martinez) | Inland (Texas, Minnesota, North Dakota, Utah and New Mexico) | Pacific Northwest (Washington and Alaska) | |||||||||||||||||||||
Segment Operating Income (Loss) | $ | 109 | $ | 99 | $ | 714 | $ | 11 | $ | (11 | ) | $ | (31 | ) | |||||||||
Add back: | |||||||||||||||||||||||
Manufacturing costs (excluding depreciation and amortization) | 565 | 586 | 345 | 155 | 123 | 140 | |||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | 133 | 115 | 78 | 46 | 39 | 38 | |||||||||||||||||
Depreciation and amortization expenses | 186 | 187 | 116 | 60 | 46 | 54 | |||||||||||||||||
General and administrative expenses | 2 | 4 | 5 | 1 | — | — | |||||||||||||||||
(Gain) loss on asset disposals and impairments | (1 | ) | 4 | — | — | — | — | ||||||||||||||||
Refining Margin | $ | 994 | $ | 995 | $ | 1,258 | $ | 273 | $ | 197 | $ | 201 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 497 | 516 | 412 | 165 | 163 | 178 | |||||||||||||||||
Number of days in the period | 181 | 181 | 181 | 181 | 181 | 181 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 90.0 | 93.4 | 74.6 | 29.9 | 29.5 | 32.2 | |||||||||||||||||
Refining Margin per Throughput Barrel (n) | $ | 11.05 | $ | 10.65 | $ | 16.85 | $ | 9.14 | $ | 6.70 | $ | 6.24 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total Refining Segment operating expenses (excluding depreciation and amortization) | $ | 652 | $ | 564 | $ | 1,283 | $ | 1,080 | |||||||
Subtract: | |||||||||||||||
Other operating expenses (excluding depreciation and amortization) | (141 | ) | (104 | ) | (250 | ) | (199 | ) | |||||||
Manufacturing Costs (excluding depreciation and amortization) | $ | 511 | $ | 460 | $ | 1,033 | $ | 881 | |||||||
Divided by Total Volumes: | |||||||||||||||
Total refining throughput (Mbpd) | 1,106 | 893 | 1,072 | 859 | |||||||||||
Number of days in the period | 91 | 91 | 181 | 181 | |||||||||||
Total volumes for the period (millions of barrels) (n) | 100.6 | 81.3 | 194.0 | 155.5 | |||||||||||
Manufacturing Costs (excluding depreciation and amortization) per Throughput Barrel (n) | $ | 5.07 | $ | 5.67 | $ | 5.32 | $ | 5.67 |
Three Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
California (Los Angeles and Martinez) | Inland (Texas, Minnesota, North Dakota, Utah and New Mexico) | Pacific Northwest (Washington and Alaska) | |||||||||||||||||||||
Total operating expenses | $ | 358 | $ | 350 | $ | 221 | $ | 121 | $ | 73 | $ | 93 | |||||||||||
Subtract: | |||||||||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | (74 | ) | (59 | ) | (50 | ) | (25 | ) | (17 | ) | (20 | ) | |||||||||||
Manufacturing Costs (excluding depreciation and amortization) | $ | 284 | $ | 291 | $ | 171 | $ | 96 | $ | 56 | $ | 73 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 555 | 531 | 418 | 192 | 133 | 170 | |||||||||||||||||
Number of days in the period | 91 | 91 | 91 | 91 | 91 | 91 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 50.5 | 48.3 | 38.0 | 17.5 | 12.1 | 15.5 | |||||||||||||||||
Manufacturing Costs (excluding depreciation and amortization) per Throughput Barrel (n) | $ | 5.62 | $ | 6.02 | $ | 4.48 | $ | 5.49 | $ | 4.66 | $ | 4.72 | |||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
California (Los Angeles and Martinez) | Inland (Texas, Minnesota, North Dakota, Utah and New Mexico) | Pacific Northwest (Washington and Alaska) | |||||||||||||||||||||
Total operating expenses | $ | 698 | $ | 701 | $ | 423 | $ | 201 | $ | 162 | $ | 178 | |||||||||||
Subtract: | |||||||||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | (133 | ) | (115 | ) | (78 | ) | (46 | ) | (39 | ) | (38 | ) | |||||||||||
Manufacturing Costs (excluding depreciation and amortization) | $ | 565 | $ | 586 | $ | 345 | $ | 155 | $ | 123 | $ | 140 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 497 | 516 | 412 | 165 | 163 | 178 | |||||||||||||||||
Number of days in the period | 181 | 181 | 181 | 181 | 181 | 181 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 90.0 | 93.4 | 74.6 | 29.9 | 29.5 | 32.2 | |||||||||||||||||
Manufacturing Costs (excluding depreciation and amortization) per Throughput Barrel (n) | $ | 6.28 | $ | 6.27 | $ | 4.61 | $ | 5.19 | $ | 4.20 | $ | 4.35 |
June 30, 2018 | December 31, 2017 | ||||||
Total debt excluding Andeavor Logistics: | |||||||
Andeavor consolidated debt (o) | $ | 8,726 | $ | 7,685 | |||
Andeavor Logistics debt (o) | 4,373 | 4,128 | |||||
Andeavor Total Debt Excluding Andeavor Logistics (o) | $ | 4,353 | $ | 3,557 |
(o) | Shown net of unamortized issuance costs. |
Projected Annual EBITDA | |||||||
LA Refinery Integration and Compliance Project | Anacortes Isomerization | ||||||
Projected Net Earnings | $ | 75 | $ | 20 | |||
Add: Projected depreciation and amortization expense | 20 | 10 | |||||
Add: Projected interest and financing costs, net | 5 | — | |||||
Add: Projected income tax expense | 25 | 10 | |||||
Projected Annual EBITDA | $ | 125 | $ | 40 |
Projected Annual EBITDA Contribution 2019E | ||
2018 Drop Down | ||
Projected Net Earnings | $ 105-115 | |
Add: Projected depreciation and amortization expense | 78 | |
Add: Projected interest and financing costs, net | 12 | |
Projected EBITDA | $ 195-205 |
Permian Gathering Assets Reconciliation of Projected Annual EBITDA | |||
Run Rate | |||
Projected Net Earnings | $ | 90 | |
Add: Projected depreciation and amortization expense | 35 | ||
Add: Projected interest and financing costs, net | 25 | ||
Projected EBITDA | $ | 150 |
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