8-KRegulation FD

Marathon Petroleum Corp 8-K Report, Regulation FD Disclosure (Jul 3, 2012)

Filed July 3, 2012For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) filed an 8-K on July 3, 2012, to disclose an accelerated turnaround at its Robinson, Illinois refinery. This proactive maintenance, which began in early June instead of July, is expected to result in a revised second-quarter 2012 total throughput volume of approximately 1.34 million barrels per day (a reduction of 60,000 bpd from previous guidance) and crude throughput of approximately 1.21 million barrels per day (a reduction of 90,000 bpd). This acceleration of planned maintenance will also lead to an increase in operating costs for the second quarter. MPC now anticipates direct operating costs in its Refining & Marketing segment gross margin to be approximately $5.45 per barrel, up from the previously forecasted $4.87 per barrel. The company expects the impacted units at the Robinson facility to return to service by mid-July 2012.

Key Highlights

  • 1Marathon Petroleum accelerated planned maintenance at its Robinson, Illinois refinery, commencing in early June 2012, ahead of its original July schedule.
  • 2The company anticipates a reduction in its second quarter 2012 total throughput volume by approximately 60,000 barrels per day, to around 1.34 million bpd.
  • 3Crude throughput volume for Q2 2012 is expected to be approximately 90,000 barrels per day lower than previously forecasted, settling around 1.21 million bpd.
  • 4The accelerated turnaround is expected to increase operating costs for the second quarter of 2012.
  • 5Direct operating costs per barrel in the Refining & Marketing segment gross margin are now projected to be $5.45, an increase from the prior forecast of $4.87 per barrel.
  • 6The affected processing units at the Robinson refinery are scheduled to resume operations by mid-July 2012.

Frequently Asked Questions

The filing indicates that the turnaround activities were accelerated, and certain processing units began undergoing planned maintenance earlier than initially scheduled. While the exact reason for acceleration isn't detailed, it's presented as a proactive measure.

The accelerated turnaround will negatively impact Q2 2012 performance due to reduced throughput volumes and increased operating costs. Total throughput is expected to be 60,000 bpd lower, and crude throughput 90,000 bpd lower than previously guided. Operating costs per barrel are also projected to rise from $4.87 to $5.45.

The company anticipates that the impacted processing units at the Robinson refinery will return to service by mid-July 2012.

No, the information in this Current Report on Form 8-K is being furnished pursuant to Item 7.01 (Regulation FD Disclosure) and is not considered 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934, nor is it deemed incorporated by reference into other SEC filings.