Andeavor Reports Fourth Quarter and Full Year 2017 Results
Financial Highlights
Reported full year earnings of $1.5 billion, or $10.81 per diluted share, consolidated net earnings of $1.7 billion and EBITDA of $2.6 billion, which includes $222 million of acquisition and integration costs
Reported quarterly earnings of $879 million, or $5.61 per diluted share, consolidated net earnings of $908 million and EBITDA of $445 million, which includes $34 million of acquisition and integration costs
Returned over $1 billion to shareholders in 2017 in dividends and share repurchases; returned $383 million to shareholders in fourth quarter including $292 million in share repurchases
Delivered approximately $505 million of annual improvements to operating income in 2017
Business Highlights
Completed Western Refining and Western Refining Logistics acquisitions
Exited the year with $190 million in annual run-rate Western Refining synergies
Achieved investment grade credit rating at Andeavor and Andeavor Logistics
Expanded Marketing footprint by successfully entering into Mexico
Increased total retail and branded stores 31% year-over-year to 3,255 stores
Grew full year Logistics segment operating income 37% from last year to $665 million
Communicated 2018-2020 business plan at its December Investor and Analyst Day that grows net earnings by $1.0 billion and delivers $1.4 billion of EBITDA growth
San Antonio, Texas - February 15, 2018 - Andeavor (ANDV) today reported fourth quarter earnings of $879 million, or $5.61 per diluted share, compared to $78 million, or $0.66 per diluted share a year ago. Consolidated net earnings were $908 million for the fourth quarter 2017 compared to $101 million for the same period last year. EBITDA for the fourth quarter 2017 was $445 million compared to $468 million last year.
Fourth quarter 2017 results included the following pre-tax items totaling $151 million: costs related to Andeavor Logistics` (ANDX) debt refinancing, an asset impairment charge related to the Vancouver Energy project, acquisition costs related to Andeavor Logistics` acquisition of Western Refining Logistics, LP (WNRL) and the IDR Buy-In transaction and integration costs related to the Western Refining (Western) acquisition. Fourth quarter 2017 results also included a benefit of $918 million related to the re-measurement of the Company`s net deferred tax liabilities due to the recently enacted Tax Cuts and Jobs Act. Fourth quarter 2016 results included a pre-tax benefit related to a lower of cost or market (LCM) inventory adjustment of $123 million.
"2017 was an excellent year for Andeavor; we closed the Western and WNRL acquisitions, expanded into Mexico and achieved investment grade credit ratings at both companies," said Greg Goff, Chairman and CEO. "We delivered $505 million of improvements to operating income and returned over $1 billion to shareholders in the form of dividends and share repurchases in 2017."
"Looking ahead, we remain well-positioned to deliver on the strategic plans outlined at our 2017 Investor and Analyst Day that we expect to grow EBITDA by $1.4 billion over the next three years. We continue to focus on driving strong operational performance and disciplined allocation of capital, further enhancing our integrated business model and returning cash to shareholders," added Goff.
Three Months Ended | Year Ended | ||||||||||||||
(Unaudited) ($ in millions, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Segment Operating Income (Loss) | |||||||||||||||
Marketing | $ | 236 | $ | 169 | $ | 788 | $ | 830 | |||||||
Logistics | 195 | 123 | 665 | 487 | |||||||||||
Refining | (56 | ) | 43 | 785 | 535 | ||||||||||
Total Segment Operating Income | $ | 375 | $ | 335 | $ | 2,238 | $ | 1,852 | |||||||
Net Earnings From Continuing Operations Attributable to Andeavor (a) | $ | 879 | $ | 78 | $ | 1,520 | $ | 724 | |||||||
Diluted EPS - Continuing Operations | $ | 5.61 | $ | 0.66 | $ | 10.75 | $ | 6.04 | |||||||
Diluted EPS - Discontinued Operations | - | - | 0.06 | 0.08 | |||||||||||
Total Diluted EPS | $ | 5.61 | $ | 0.66 | $ | 10.81 | $ | 6.12 | |||||||
(a) Referred to in the body of this press release as "earnings."
Segment Results
Marketing
Marketing segment operating income was $236 million and segment EBITDA was $255 million in the fourth quarter 2017. This compares to segment operating income of $169 million and segment EBITDA of $192 million last year. Overall fuel margins for the fourth quarter 2017 were 12.2 cents per gallon compared to 11.4 cents per gallon last year, and Retail and Branded fuel margins were 23.4 cents per gallon compared to 19.6 cents per gallon in 2016. A stronger market along with positive contributions from the Western Refining stores added to Andeavor`s portfolio resulted in increased margins.
For the fourth quarter, merchandise margin increased to $47 million from $1 million in 2016 driven by the Western acquisition. Andeavor continued to grow its network of branded stores, increasing by 763 stores, or 31% year-over-year, to 3,255. This was primarily driven by the Western acquisition, the acquisition of retail stores in northern California and the continued execution of the Company`s organic growth plan, including rebranding and expansion into Mexico. Andeavor opened 28 ARCO® stores in Mexico as of January 31, 2018.
Logistics
Logistics segment operating income increased to $195 million in the fourth quarter 2017 from $123 million a year ago and segment EBITDA increased to $267 million from $177 million last year. Results include $9 million of acquisition costs related to Andeavor Logistics` acquisition of WNRL and the IDR Buy-In transaction. The Company reports Andeavor Logistics` wholesale business in its Marketing segment, which represents approximately $6 million of operating income for the fourth quarter. The increase in segment operating income and segment EBITDA was primarily driven by contributions from the WNRL acquisition, the North Dakota Gathering and Processing Assets acquisition, 2016 and 2017 drop downs and organic growth.
Refining
Refining segment operating loss was $56 million for the fourth quarter 2017 compared to segment operating income of $43 million in 2016. Segment EBITDA was $120 million compared to $205 million in 2016. Refining margin was $787 million, or $7.62 per barrel, for the fourth quarter 2017. This compares to a refining margin of $731 million, or $9.45 per barrel, in the fourth quarter 2016.
Fourth quarter 2017 Refining segment operating loss was negatively impacted by approximately $185 million. This was primarily driven by building inventories in advance of first quarter 2018 maintenance, inventory and Canadian crude oil supply hedging, unplanned maintenance and other special items. To supply marketing requirements during the Los Angeles refineries` maintenance in early 2018, the Company built inventory of gasoline and diesel. This negatively impacted fourth quarter results by $50 million but is expected to have a favorable impact in 2018. In addition, the Company realized a negative impact of $85 million on crude oil inventory that was hedged as well as forward pricing of a portion of Canadian crude oil supply for the St. Paul Park refinery. As a result of the wide Canadian heavy crude differentials, the Company elected to remove the hedges, and this is expected to have a favorable impact on 2018 results. During the quarter, unplanned maintenance was performed at four refineries that negatively impacted yields by $25 million. Finally, $25 million of expense related to litigation, environmental and insurance costs were incurred in the quarter. Fourth quarter 2016 segment operating income and segment EBITDA included a pre-tax benefit related to a LCM inventory adjustment of $123 million.
Corporate and Other
Corporate and unallocated costs for the fourth quarter 2017 were $208 million and included integration costs related to the Western acquisition, costs incurred by Andeavor in connection with Andeavor Logistics` acquisition of WNRL and the IDR Buy-In transaction and an asset impairment charge related to the Vancouver Energy project. Net interest was $166 million in the fourth quarter 2017, which included $77 million of costs associated with the refinancing of debt following Andeavor Logistics` upgrade to investment grade credit rating during the quarter. Due to the Federal tax reform, fourth quarter 2017 results include approximately $918 million of benefit related to the re-measurement of the Company`s net deferred tax liabilities. Furthermore, the Company estimates that compared to the 2018-2020 outlook provided at its Investor and Analyst Day in December 2017, Federal tax reform legislation is expected to result in additional cumulative cash flow from operations of approximately $1.0 to $1.5 billion through 2020.
Balance Sheet and Cash Flow
Andeavor ended the year with $543 million in cash and cash equivalents. This was down from $3.3 billion at the end of 2016 primarily due to the closing of the Western acquisition and Andeavor Logistics` acquisition of the North Dakota Gathering and Processing Assets. Andeavor currently has approximately $2.9 billion of availability under its revolving credit facility. Total debt, net of unamortized issuance costs, was $7.7 billion at the end of the fourth quarter. Excluding Andeavor Logistics, total debt was $3.6 billion.
Capital spending for the fourth quarter 2017 was $462 million, consisting of $378 million for Andeavor and $84 million for Andeavor Logistics. Turnaround expenditures for the fourth quarter were $125 million. Capital spending for the full year 2017 was $1.4 billion, consisting of $1.1 billion at Andeavor and $237 million at Andeavor Logistics. Turnaround expenditures for the full year 2017 were $548 million.
Andeavor repurchased 2.7 million shares for approximately $292 million in the fourth quarter and has over $1.4 billion remaining under its previously approved share repurchase programs. The Company paid cash dividends of $91 million in the fourth quarter 2017. Additionally, Andeavor today announced that the board of directors has declared a quarterly cash dividend of $0.59 per share payable on March 15, 2018 to all holders of record as of February 28, 2018. Andeavor remains focused on capital allocation discipline and maintaining a strong, investment grade balance sheet, which provides flexibility to continue to invest in high-return capital projects, return cash to shareholders through share repurchases and dividends and pursue strategic acquisitions.
Strategic Update
Western Synergy Update. Andeavor is committed to delivering an expected $350 to $425 million in annual run-rate synergies by June 2019, the second year following the close of the Western transaction. Andeavor achieved approximately $190 million in annual run-rate synergies in 2017, primarily related to approximately $100 million in corporate efficiencies and the remainder in value chain optimization and operational improvements.
Inaugural Investment Grade Debt Offering. During the quarter, Andeavor completed a $1 billion public offering of senior notes. The Company used the net proceeds from the public offering to repay borrowings under its revolving credit facility and pay the fees and expenses associated with the offering. The inaugural investment grade offering exemplifies the execution of Andeavor`s financial strategy, which is focused on creating additional value for investors by lowering the cost of capital and extending debt maturities.
Acquisition of Asphalt Terminals. On February 12, 2018, Andeavor announced its agreement to acquire the West Coast asphalt terminals of Delek US Holdings, Inc. (DK). The assets include four wholly-owned terminals in Elk Grove, CA; Bakersfield, CA; Mojave, CA; and Phoenix, AZ, as well as 50% interest in the Paramount Nevada Asphalt Company joint venture terminal in Fernley, NV.
Upon close, Andeavor expects to grow its asphalt business to serve more customers, provide superior customer service and expand the product offering. The Company expects to improve the business and increase sales by approximately 20% over the next three years. This acquisition will bring Andeavor`s total asphalt capacity to more than 430,000 tons across ten terminal locations. The acquisition, which is subject to customary closing conditions including regulatory approval, is anticipated to close in the first half of 2018.
Acquisition of Rangeland Energy II, LLC. On January 19, 2018, Andeavor closed the acquisition of 100% of the equity of Rangeland Energy II, LLC, which owns and operates assets in the Delaware and Midland Basins, including a recently-constructed crude oil pipeline, three crude oil storage terminals and a frac sand storage and truck loading facility. Andeavor plans to integrate the acquired 110-mile crude oil pipeline (with ultimate throughput capacity of 145,000 barrels per day) and crude oil storage terminals with its nearby Conan Crude Oil Gathering System, currently under construction.
Permian Expansion Update. In 2018, Andeavor expects to offer its newly acquired interest in the Rangeland crude oil assets, as well as other Andeavor Permian logistics assets to Andeavor Logistics. Andeavor also expects to transfer the Conan Crude Oil Gathering System at cost plus interest. This integrated system, combined with Andeavor Logistics existing Permian assets, is expected to see considerable volume growth and additional expansion projects over the next several years.
Andeavor Logistics also announced today that it has been awarded two new crude oil gathering projects in the Delaware Basin. These projects are with investment grade producers and are supported by acreage dedications totaling approximately 40,000 acres. Andeavor Logistics expects a capital investment of $25 to $30 million, with project completions anticipated late 2018 and early 2019. We expect these projects to deliver segment operating income of $3 to $4 million and $4 to $5 million of segment EBITDA to the Logistics segment in 2019, a 6 to 7 times multiple on invested capital.
Andeavor Logistics` Acquisition of Wamsutter Pipeline System. Andeavor Logistics today announced that it has agreed to acquire the Wamsutter Pipeline System from Plains All American Pipeline, L.P. (PAA). The system consists of 575 miles of advantaged crude oil transportation pipelines that connect into Salt Lake City refineries. We expect the assets to provide annual segment operating income $14 to $18 million and segment EBITDA of $20 to $24 million for the Logistics segment, including synergies. The acquisition, which is subject to customary closing conditions including regulatory approval, is anticipated to close in the first half of 2018.
Completion of WNRL Acquisition and IDR Buy-In. In the fourth quarter 2017, Andeavor Logistics completed its $1.7 billion acquisition of WNRL. Immediately following the closing of the acquisition, Andeavor and Andeavor Logistics completed the IDR Buy-In Transaction whereby Andeavor Logistics issued ANDX common units to Andeavor in exchange for the cancellation of Andeavor Logistics` IDRs and the conversion of its economic general partner interest into a non-economic general partner interest.
Drop Down of Anacortes Logistics Assets. During the quarter, Andeavor Logistics acquired logistics assets located in Anacortes, Washington from Andeavor for total consideration of $445 million. The Anacortes Logistics Assets located at Andeavor`s Anacortes Refinery include 3.9 million barrels of crude oil, feedstock, and refined products storage, the Anacortes Marine terminal, a manifest rail facility, and crude oil and refined product pipelines.
Improvements to Operating Income. Andeavor delivered approximately $505 million of improvements to operating income in 2017, which was within its target of $475 to $575 million. Of these improvements, approximately $40 million were in Marketing, approximately $175 million in Logistics and approximately $290 million in Refining. The improvements to operating income exclude synergies from the Western acquisition.
2018 Outlook
In December 2017, Andeavor issued its expectations for 2018, which include an Andeavor Index of $12 to $14 per barrel and Marketing segment fuel margins of 11 to 14 cents per gallon. The Company expects total capital expenditures for 2018 of approximately $1.5 billion, consisting of $1.1 billion at Andeavor and $430 million at Andeavor Logistics. Turnaround expenditures for the full year 2018 are expected to be $575 million.
"We are excited about the opportunities we see in our business to increase gross margin, improve productivity and deliver synergies from our acquisitions, which support our plan to generate $9 to $12 billion of cash over the next three years, inclusive of the benefits from tax reform. Additionally, we also see the potential for significant opportunities from IMO 2020," said Goff. "As always, we remain focused on disciplined capital allocation that delivers the most value to our shareholders."
Public Invited to Listen to Analyst and Investor Conference Call
At 7:30 a.m. CT tomorrow morning, Andeavor will live broadcast its conference call with analysts regarding fourth quarter 2017 results and other business matters. Interested parties may listen to the conference call by logging on to http://www.andeavor.com.
About Andeavor
Andeavor is a premier, highly integrated marketing, logistics and refining company. Andeavor`s retail-marketing system includes more than 3,250 stores marketed under multiple well-known fuel brands, including ARCO®, SUPERAMERICA®, Shell®, Exxon(TM), Mobil(TM), Tesoro®, USA Gasoline(TM) and Giant®. It also has ownership in Andeavor Logistics LP (ANDX) and its non-economic general partner. Andeavor operates 10 refineries with a combined capacity of approximately 1.2 million barrels per day in the mid-continent and western United States.
This earnings release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation statements concerning: our operational, financial and growth strategies, including continued growth, disciplined capital allocation, enhancing our integrated business model, maintaining a strong, investment grade balance sheet, investing in high-return capital projects, pursuing strategic acquisitions, returning cash to our shareholders, driving growth and improvements, delivering synergies lowering our cost of capital and extending debt maturities; our ability to successfully effect those strategies and the expected timing and results thereof; our financial and operational outlook, and ability to fulfill that outlook; our financial position, liquidity and capital resources; expectations regarding future economic and market conditions and their effects on us; statements regarding our ability to deliver on the strategic plans outlined at our 2017 Investor and Analyst Day; expected effects of the Federal tax reform; expectations regarding additional cumulative cash flow from operations through 2020; delivery of synergies, including expected annual run-rate synergies from the Western acquisition and the sources thereof; the amount and timing of future dividends; statements regarding the planned West Coast asphalt terminals acquisition, including the expected capacity, timing, future plans and benefits thereof; statements regarding the Rangeland acquisition and plans to integrate it with the Conan Crude Oil Gathering System; statements regarding the expected drop down of Rangeland, other Permian logistics assets and the Conan Crude Oil Gathering System to Andeavor Logistics, including the expected benefits and timing thereof; expectations with respect to the Permian integrated system, including expected volume growth and additional expansion projects; statements regarding Andeavor Logistics` new crude oil gathering projects in the Delaware Basin, including expected capital investment, timing and the expected segment operating income and segment EBITDA provided thereby; statements regarding Andeavor Logistics` planned acquisition of the Wamsutter Pipeline System, including expected timing of the acquisition and the projected annual segment operating income and segment EBITDA provided thereby; growth opportunities and expected cash generation over the next three years; expected opportunities from IMO 2020; and our 2018 outlook, including expectations relating to the Andeavor Index, marketing segment fuel margins, total capital expenditures and the allocation thereof, including turnaround expenditures, first quarter 2018 guidance and expectations, and projected annual net earnings and annual EBITDA. For more information concerning factors that could affect these statements, see our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings and press releases, available at www.andeavor.com. We undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.
Contact:
Investors:
Brad Troutman, Investor Relations, (210) 626-4568
Media:
Andeavor Media Relations, media@andeavor.com, (210) 626-7702
Andeavor
First Quarter 2018 Guidance (Unaudited)
Throughput (Mbpd) | |
California | 430 - 455 |
Pacific Northwest | 185 - 195 |
Mid-Continent | 400 - 420 |
Consolidated | 1,015 - 1,070 |
Manufacturing Cost ($/throughput barrel) | |
California | $ 7.45 - 7.70 |
Pacific Northwest | $ 3.70 - 3.95 |
Mid-Continent | $ 4.60 - 4.85 |
Consolidated | $ 5.65 - 5.90 |
Corporate/System ($ millions) | |
Marketing depreciation and amortization | $ 25 - 30 |
Logistics depreciation and amortization | $ 80 - 85 |
Refining depreciation and amortization | $ 175 - 180 |
Corporate and other depreciation and amortization | $ 5 - 10 |
Corporate expense (before depreciation, but includes approximately $20 million of expected transaction costs) | $ 165 - 175 |
Interest expense (before interest income) | $ 95 - 105 |
Noncontrolling interest | $ 60 - 70 |
Non-GAAP Measures
Our management uses certain "non-GAAP" performance measures to analyze operating segment performance and "non-GAAP" financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:
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, (92 days for both the three months ended December 31, 2017 and 2016, 365 days for the year ended December 31, 2017 and 366 days for the year ended December 31, 2016);
Refining margin-the difference between total refining revenues minus 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
Total liquidity-the capacity under the Andeavor Revolving Credit Facility plus consolidated cash and cash equivalents less Andeavor Logistics` cash and cash equivalents.
We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to:
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.
Management also uses these measures to assess internal performance. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See "Non-GAAP Reconciliations" below for reconciliations between non-GAAP measures and their most directly comparable U.S. GAAP measures.
Items Impacting Comparability
During 2017, we revised the title of certain of our financial statement line items to avoid any misperception that the amounts included are equivalent to financial information presented in accordance with U.S. GAAP. The underlying financial information has not changed from what we have previously disclosed. See our discussion under "Non-GAAP Measures" for additional information about the financial measures we use to analyze our operations.
On June 1, 2017, we closed the Western Refining Acquisition. Our results include the operations from Western Refining for the period of June 1, 2017 to December 31, 2017 and thus prior periods may not be comparable. With the Western Refining Acquisition, we have updated our segments to reflect the results and operations of Western Refining and WNRL. Our Marketing segment reflects our expanded marketing business that, combined with Western Refining, now consists of expanded wholesale marketing operations and over 3,250 retail stores marketed under multiple well-known fuel brands including ARCO®, SUPERAMERICA®, Shell®, Exxon(TM), Mobil(TM), Conoco®, Tesoro®, USA Gasoline(TM) and Giant®. Our renamed Logistics segment includes the results of Andeavor Logistics, excluding the Wholesale business. We now report the Logistics segment`s results for the combined Terminalling and Transportation and Gathering and Processing business lines. Our Refining segment reports the results of our refining system that now consists of ten refineries in the western and mid-continent United States with a combined capacity of approximately 1.2 million barrels per day. The Refining segment includes the results from Andeavor`s existing Refining segment along with the Refining business contributed in the Western Refining Acquisition.
Andeavor
Condensed Consolidated Balance Sheets (Unaudited) (In millions)
December 31, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents (Andeavor Logistics: $75 and $688, respectively) | $ | 543 | $ | 3,295 | |||
Receivables, net of allowance for doubtful accounts | 1,961 | 1,108 | |||||
Inventories | 3,630 | 2,640 | |||||
Prepayments and other current assets | 749 | 371 | |||||
Total Current Assets | 6,883 | 7,414 | |||||
Property, Plant and Equipment, Net (Andeavor Logistics: $5,413 and $3,444, respectively) | 14,742 | 9,976 | |||||
Other Noncurrent Assets, Net (Andeavor Logistics: $2,251 and $1,478, respectively) | 6,948 | 3,008 | |||||
Total Assets | $ | 28,573 | $ | 20,398 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 3,330 | $ | 2,032 | |||
Current maturities of debt | 17 | 465 | |||||
Other current liabilities | 1,654 | 1,057 | |||||
Total Current Liabilities | 5,001 | 3,554 | |||||
Deferred Income Taxes | 1,591 | 1,428 | |||||
Debt, Net of Unamortized Issuance Costs (Andeavor Logistics: $4,127 and $4,053, respectively) | 7,668 | 6,468 | |||||
Other Noncurrent Liabilities | 898 | 821 | |||||
Total Equity | 13,415 | 8,127 | |||||
Total Liabilities and Equity | $ | 28,573 | $ | 20,398 | |||
Andeavor
Results of Consolidated Operations (Unaudited) (In millions, except per share amounts)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 10,652 | $ | 6,652 | $ | 34,975 | $ | 24,582 | |||||||
Costs and Expenses: | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 9,087 | 5,533 | 28,480 | 19,658 | |||||||||||
Lower of cost or market inventory valuation adjustment | - | (123 | ) | - | (359 | ) | |||||||||
Operating expenses (excluding depreciation and amortization) | 890 | 680 | 3,182 | 2,541 | |||||||||||
Depreciation and amortization expenses | 282 | 218 | 1,021 | 851 | |||||||||||
General and administrative expenses | 190 | 118 | 742 | 401 | |||||||||||
Loss on asset disposals and impairments | 45 | 2 | 25 | 9 | |||||||||||
Operating Income | 158 | 224 | 1,525 | 1,481 | |||||||||||
Interest and financing costs, net | (166 | ) | (84 | ) | (439 | ) | (274 | ) | |||||||
Equity in earnings of equity method investments | 9 | 1 | 23 | 13 | |||||||||||
Other income (expense), net | (4 | ) | 25 | 6 | 57 | ||||||||||
Earnings (Loss) Before Income Taxes | (3 | ) | 166 | 1,115 | 1,277 | ||||||||||
Income tax expense (benefit) | (911 | ) | 65 | (560 | ) | 427 | |||||||||
Net Earnings From Continuing Operations | 908 | 101 | 1,675 | 850 | |||||||||||
Earnings from discontinued operations, net of tax | - | - | 8 | 10 | |||||||||||
Net Earnings | 908 | 101 | 1,683 | 860 | |||||||||||
Less: Net earnings from continuing operations attributable to noncontrolling interest | 29 | 23 | 155 | 126 | |||||||||||
Net Earnings Attributable to Andeavor | $ | 879 | $ | 78 | $ | 1,528 | $ | 734 | |||||||
Net Earnings Attributable to Andeavor | |||||||||||||||
Continuing operations | $ | 879 | $ | 78 | $ | 1,520 | $ | 724 | |||||||
Discontinued operations | - | - | 8 | 10 | |||||||||||
Total | $ | 879 | $ | 78 | $ | 1,528 | $ | 734 | |||||||
Net Earnings per Share - Basic | |||||||||||||||
Continuing operations | $ | 5.66 | $ | 0.67 | $ | 10.85 | $ | 6.11 | |||||||
Discontinued operations | - | - | 0.06 | 0.08 | |||||||||||
Total | $ | 5.66 | $ | 0.67 | $ | 10.91 | $ | 6.19 | |||||||
Weighted average common shares outstanding - Basic | 155.2 | 116.8 | 140.1 | 118.5 | |||||||||||
Net Earnings per Share - Diluted | |||||||||||||||
Continuing operations | $ | 5.61 | $ | 0.66 | $ | 10.75 | $ | 6.04 | |||||||
Discontinued operations | - | - | 0.06 | 0.08 | |||||||||||
Total | $ | 5.61 | $ | 0.66 | $ | 10.81 | $ | 6.12 | |||||||
Weighted average common shares outstanding - Diluted | 156.6 | 118.2 | 141.3 | 119.9 | |||||||||||
Andeavor
Selected Segment Operating Data (Unaudited) (In millions)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Earnings (Loss) Before Income Taxes | |||||||||||||||
Marketing | $ | 236 | $ | 169 | $ | 788 | $ | 830 | |||||||
Logistics | 195 | 123 | 665 | 487 | |||||||||||
Refining | (56 | ) | 43 | 785 | 535 | ||||||||||
Total Segment Operating Income | 375 | 335 | 2,238 | 1,852 | |||||||||||
Corporate and unallocated costs | (208 | ) | (111 | ) | (713 | ) | (371 | ) | |||||||
Intersegment eliminations | (9 | ) | - | - | - | ||||||||||
Operating Income | 158 | 224 | 1,525 | 1,481 | |||||||||||
Interest and financing costs, net | (166 | ) | (84 | ) | (439 | ) | (274 | ) | |||||||
Equity in earnings of equity method investments | 9 | 1 | 23 | 13 | |||||||||||
Other income (expense), net | (4 | ) | 25 | 6 | 57 | ||||||||||
Earnings (Loss) Before Income Taxes | $ | (3 | ) | $ | 166 | $ | 1,115 | $ | 1,277 | ||||||
Depreciation and Amortization Expenses | |||||||||||||||
Marketing | $ | 19 | $ | 13 | $ | 68 | $ | 49 | |||||||
Logistics | 70 | 51 | 276 | 190 | |||||||||||
Refining | 173 | 148 | 647 | 588 | |||||||||||
Corporate | 11 | 6 | 30 | 24 | |||||||||||
Intersegment eliminations | 9 | - | - | - | |||||||||||
Total Depreciation and Amortization Expenses | $ | 282 | $ | 218 | $ | 1,021 | $ | 851 | |||||||
Segment EBITDA | |||||||||||||||
Marketing | $ | 255 | $ | 192 | $ | 856 | $ | 889 | |||||||
Logistics | 267 | 177 | 954 | 696 | |||||||||||
Refining | 120 | 205 | 1,447 | 1,163 | |||||||||||
Total Segment EBITDA | $ | 642 | $ | 574 | $ | 3,257 | $ | 2,748 | |||||||
Capital Expenditures | |||||||||||||||
Marketing | $ | 42 | $ | 12 | $ | 73 | $ | 34 | |||||||
Logistics | 84 | 92 | 237 | 273 | |||||||||||
Refining | 294 | 166 | 844 | 519 | |||||||||||
Corporate | 42 | 54 | 199 | 122 | |||||||||||
Total Capital Expenditures | $ | 462 | $ | 324 | $ | 1,353 | $ | 948 | |||||||
Turnaround Expenditures and Branding Costs | |||||||||||||||
Turnarounds and catalysts | $ | 125 | $ | 101 | $ | 548 | $ | 334 | |||||||
Marketing branding | 17 | 25 | 76 | 80 | |||||||||||
Total Turnaround Expenditures and Marketing Branding Costs | $ | 142 | $ | 126 | $ | 624 | $ | 414 | |||||||
Andeavor
Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) (In millions)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reconciliation of Net Earnings to EBITDA | |||||||||||||||
Net Earnings | $ | 908 | $ | 101 | $ | 1,683 | $ | 860 | |||||||
Depreciation and amortization expenses | 282 | 218 | 1,021 | 851 | |||||||||||
Interest and financing costs, net | 166 | 84 | 439 | 274 | |||||||||||
Income tax expense (benefit) | (911 | ) | 65 | (560 | ) | 427 | |||||||||
EBITDA | $ | 445 | $ | 468 | $ | 2,583 | $ | 2,412 | |||||||
Reconciliation of Marketing Segment Operating Income to Marketing Segment EBITDA | |||||||||||||||
Marketing Segment Operating Income | $ | 236 | $ | 169 | $ | 788 | $ | 830 | |||||||
Depreciation and amortization expenses | 19 | 13 | 68 | 49 | |||||||||||
Other income, net | - | 10 | - | 10 | |||||||||||
Segment EBITDA | $ | 255 | $ | 192 | $ | 856 | $ | 889 | |||||||
Reconciliation of Logistics Segment Operating Income to Logistics Segment EBITDA | |||||||||||||||
Logistics Segment Operating Income | $ | 195 | $ | 123 | $ | 665 | $ | 487 | |||||||
Depreciation and amortization expenses | 70 | 51 | 276 | 190 | |||||||||||
Equity in earnings of equity method investments | 2 | 3 | 10 | 13 | |||||||||||
Other income, net | - | - | 3 | 6 | |||||||||||
Segment EBITDA | $ | 267 | $ | 177 | $ | 954 | $ | 696 | |||||||
Reconciliation of Refining Segment Operating Income (Loss) to Refining Segment EBITDA | |||||||||||||||
Refining Segment Operating Income (Loss) | $ | (56 | ) | $ | 43 | $ | 785 | $ | 535 | ||||||
Depreciation and amortization expenses | 173 | 148 | 647 | 588 | |||||||||||
Equity in earnings (loss) of equity method investments | 6 | (2 | ) | 13 | - | ||||||||||
Other income (expense), net | (3 | ) | 16 | 2 | 40 | ||||||||||
Segment EBITDA | $ | 120 | $ | 205 | $ | 1,447 | $ | 1,163 | |||||||
Andeavor
Other Summary Financial Information (Unaudited) (In millions)
Western Refining Acquisition - Summary of Integration, Acquisition and Deal-Related Costs (Consolidated) | |||||||||||||||||||||||
Three Months Ended | Cumulative Total | ||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||||||
General and administrative expenses | $ | 11 | $ | 32 | $ | 124 | $ | 16 | $ | 3 | $ | 186 | |||||||||||
Interest and financing costs, net | - | - | 11 | 17 | 21 | 49 | |||||||||||||||||
Total Before Income Taxes | $ | 11 | $ | 32 | $ | 135 | $ | 33 | $ | 24 | $ | 235 | |||||||||||
Components of Cash Flows | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cash Flows From (Used in): | |||||||||||||||
Operating activities | $ | 429 | $ | 103 | $ | 1,630 | $ | 1,304 | |||||||
Investing activities | (470 | ) | (297 | ) | (2,443 | ) | (1,317 | ) | |||||||
Financing activities | 56 | 2,102 | (1,939 | ) | 2,366 | ||||||||||
Increase (Decrease) in Cash and Cash Equivalents | $ | 15 | $ | 1,908 | $ | (2,752 | ) | $ | 2,353 | ||||||
Other Financial Information | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Total market value of Andeavor Logistics units held by Andeavor (a) | $ | 5,907 | $ | 1,730 | |||
Cash Distributions Received From Andeavor Logistics and WNRL (b): | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
For common units held | $ | 126 | $ | 29 | $ | 237 | $ | 108 | |||||||
For general partner units held | - | 42 | 131 | 137 | |||||||||||
Total Cash Distributions Received from Andeavor Logistics and WNRL | $ | 126 | $ | 71 | $ | 368 | $ | 245 | |||||||
(a) Represents market value of 127,889,386 common units and 34,055,042 common units held by Andeavor at December 31, 2017 and December 31, 2016, respectively. The market values were $46.19 and $50.81 per unit based on the closing unit price at December 31, 2017 and December 31, 2016, respectively.
(b) Represents distributions received from Andeavor Logistics and WNRL during the three months and years ended December 31, 2017 and 2016 on common units and general partner units held by Andeavor.
Andeavor
Segment Operating Data and Results (Unaudited) ($ in millions, except cents per gallon and percentages)
Three Months Ended | Year Ended | ||||||||||||||||
Marketing Segment | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 6,019 | $ | 3,932 | $ | 21,513 | $ | 15,490 | |||||||||
Expenses | |||||||||||||||||
Cost of fuels and other (excluding items shown separately below) | 5,582 | 3,667 | 20,122 | 14,292 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 171 | 77 | 511 | 298 | |||||||||||||
Depreciation and amortization expenses | 19 | 13 | 68 | 49 | |||||||||||||
Selling, general and administrative expenses | 10 | 5 | 23 | 17 | |||||||||||||
Loss on asset disposals | 1 | 1 | 1 | 4 | |||||||||||||
Segment Operating Income | $ | 236 | $ | 169 | $ | 788 | $ | 830 | |||||||||
Fuel Sales (millions of gallons) | |||||||||||||||||
Retail | 480 | 291 | 1,610 | 1,178 | |||||||||||||
Branded | 872 | 845 | 3,458 | 3,372 | |||||||||||||
Total Retail and Branded | 1,352 | 1,136 | 5,068 | 4,550 | |||||||||||||
Unbranded | 1,542 | 1,045 | 5,405 | 4,329 | |||||||||||||
Total Fuel Sales | 2,894 | 2,181 | 10,473 | 8,879 | |||||||||||||
Marketing Margin | |||||||||||||||||
Retail and Branded fuel margin | $ | 320 | $ | 223 | $ | 1,058 | $ | 1,061 | |||||||||
Unbranded fuel margin | 36 | 27 | 110 | 69 | |||||||||||||
Total Fuel Margin (c) | 356 | 250 | 1,168 | 1,130 | |||||||||||||
Merchandise margin (c) | 47 | 1 | 127 | 8 | |||||||||||||
Other margin | 34 | 14 | 96 | 60 | |||||||||||||
Total Convenience Margin | 81 | 15 | 223 | 68 | |||||||||||||
Total Marketing Margin (c) | $ | 437 | $ | 265 | $ | 1,391 | $ | 1,198 | |||||||||
Fuel Margin (¢/gallon) (c) | |||||||||||||||||
Retail and Branded Fuel Margin | 23.4 | ¢ | 19.6 | ¢ | 20.9 | ¢ | 23.3 | ¢ | |||||||||
Unbranded Fuel Margin | 2.5 | ¢ | 2.5 | ¢ | 2.0 | ¢ | 1.6 | ¢ | |||||||||
Total Fuel Margin | 12.2 | ¢ | 11.4 | ¢ | 11.2 | ¢ | 12.7 | ¢ | |||||||||
Merchandise Margin % (c) | 26.0 | % | 31.3 | % | 27.1 | % | 34.4 | % | |||||||||
Number of Branded Stores (at the end of the period) | December 31, 2017 | December 31, 2016 | |||||||||||||||
Company operated | 524 | - | |||||||||||||||
MSO-operated | 561 | 594 | |||||||||||||||
Total Retail Stores | 1,085 | 594 | |||||||||||||||
Jobber/Dealer operated | 2,170 | 1,898 | |||||||||||||||
Total Retail and Branded Stores | 3,255 | 2,492 | |||||||||||||||
(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.
Andeavor
Segment Operating Data and Results (Unaudited) ($ in millions, except per barrel amounts, per Mbpd, and per MMBtu)
Three Months Ended | Year Ended | ||||||||||||||
Logistics Segment | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenues | |||||||||||||||
Terminalling and transportation | |||||||||||||||
Terminalling | $ | 196 | $ | 135 | $ | 688 | $ | 480 | |||||||
Pipeline transportation | 33 | 32 | 130 | 125 | |||||||||||
Other revenues | 9 | - | 18 | - | |||||||||||
Gathering and processing | |||||||||||||||
NGL sales (e) | 115 | 25 | 369 | 103 | |||||||||||
Gas gathering and processing | 81 | 66 | 333 | 264 | |||||||||||
Crude oil and water gathering | 81 | 33 | 228 | 133 | |||||||||||
Pass-thru and other revenue | 45 | 28 | 165 | 115 | |||||||||||
Logistics Revenues (d) | 560 | 319 | 1,931 | 1,220 | |||||||||||
Expenses | |||||||||||||||
Terminalling and transportation | |||||||||||||||
Operating expenses (excluding depreciation and amortization) (g) | 77 | 50 | 257 | 193 | |||||||||||
Gathering and processing | |||||||||||||||
NGL expense (excluding items shown separately below) (e)(f) | 86 | - | 265 | 2 | |||||||||||
Operating expenses (excluding depreciation and amortization) (g) | 90 | 70 | 357 | 249 | |||||||||||
Depreciation and amortization expenses | 70 | 51 | 276 | 190 | |||||||||||
General and administrative expenses (g) | 42 | 24 | 135 | 95 | |||||||||||
(Gain) loss on asset disposals and impairments | - | 1 | (24 | ) | 4 | ||||||||||
Segment Operating Income | $ | 195 | $ | 123 | $ | 665 | $ | 487 | |||||||
Terminalling and transportation | |||||||||||||||
Terminalling throughput (Mbpd) | 1,671 | 992 | 1,428 | 984 | |||||||||||
Average terminalling revenue per barrel (h) | $ | 1.27 | $ | 1.48 | $ | 1.32 | $ | 1.33 | |||||||
Pipeline transportation throughput (Mbpd) | 946 | 874 | 902 | 868 | |||||||||||
Average pipeline transportation revenue per barrel (h) | $ | 0.39 | $ | 0.39 | $ | 0.40 | $ | 0.39 | |||||||
Gathering and processing | |||||||||||||||
NGL sales (Mbpd) (i) | 11.4 | 7.1 | 8.3 | 7.5 | |||||||||||
Average margin on NGL sales per barrel (e)(f)(h) | $ | 28.10 | $ | 36.95 | $ | 34.77 | $ | 36.59 | |||||||
Gas gathering and processing throughput (thousands of MMBtu/d) | 988 | 871 | 963 | 879 | |||||||||||
Average gas gathering and processing revenue per MMBtu (h) | $ | 0.89 | $ | 0.82 | $ | 0.95 | $ | 0.82 | |||||||
Crude oil and water gathering volume (Mbpd) | 327 | 218 | 296 | 212 | |||||||||||
Average crude oil and water gathering revenue per barrel (h) | $ | 2.68 | $ | 1.68 | $ | 2.11 | $ | 1.72 | |||||||
(d) Included in our Refining segment`s cost of materials and other were Logistics segment revenues for services provided to our Refining segment of $311 million and $194 million for the three months ended December 31, 2017 and 2016, respectively, and $1.0 billion and $715 million for the year ended December 31, 2017 and 2016, respectively. These amounts are eliminated upon consolidation.
(e) For the three months ended December 31, 2017, the Logistics segment had 25.6 Mbpd of gross natural gas liquids ("NGL") sales under percent of proceeds ("POP") and keep-whole arrangements. Our Logistics segment retained 11.4 Mbpd under these arrangements. For the year ended December 31, 2017, Logistics had 22.2 Mbpd of NGL sales under POP and keep-whole arrangements. Our Logistics segment retained 8.3 Mbpd under these arrangements. 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.
(f) Included in NGL expense for the year ended December 31, 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 year ended December 31, 2017 excludes this amount.
(g) 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 $54 million and $83 million for the three months ended December 31, 2017 and 2016, respectively, and $186 million and $190 million for the years ended December 31, 2017 and 2016, respectively. The net amounts billed include reimbursements of $4 million and $5 million for the three months ended December 31, 2017 and 2016, respectively, and $16 million and $17 million for the years ended December 31, 2017 and 2016, respectively. Amounts billed by Andeavor included in general and administrative expenses totaled $20 million and $17 million for the three months ended December 31, 2017 and 2016, respectively, and $82 million and $69 million for the years ended December 31, 2017 and 2016, respectively. All of these amounts are eliminated upon consolidation. Those expenses with third-parties related to the transportation of crude oil and refined products related to Andeavor`s sale of those refined products during the ordinary course of business are reclassified to cost of materials and other in our statements of consolidated operations upon consolidation.
(h) Our Logistics segment uses average margin per barrel, average revenue per MMBtu, average margin per gallon and average revenue per barrel to evaluate performance and compare profitability to other companies in the industry.
· Average margin on NGL sales per barrel-calculated as the difference between the NGL sales revenues and the amounts recognized as NGL expense divided by our NGL sales volumes. Refer to "Non-GAAP Measures" and "Non-GAAP Reconciliations" for further information regarding these non-GAAP measures;
· Average gas gathering and processing revenue per Million British thermal units ("MMBtu")-calculated as total gathering and processing fee-based revenue divided by total gas gathering throughput;
· Average terminalling revenue per barrel-calculated as total terminalling revenue divided by total terminalling throughput;
· Average pipeline transportation revenue per barrel-calculated as total pipeline transportation revenue divided by total pipeline transportation throughput; and
· Average crude oil and water gathering revenue per barrel-calculated as total crude oil and water gathering fee-based revenue divided by total crude oil and water gathering throughput.
There are a variety of ways to calculate these measures; other companies may calculate these in a different way.
(i) Volumes represent barrels sold under Logistics` keep-whole arrangements, net barrels retained under its POP arrangements and other associated products.
Andeavor
Segment Operating Data and Results (Unaudited) ($ in millions, except per barrel amounts)
Three Months Ended | Year Ended | ||||||||||||||
Refining Segment | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenues | |||||||||||||||
Refined products (j) | $ | 8,551 | $ | 5,779 | $ | 29,572 | $ | 21,213 | |||||||
Crude oil resales and other | 917 | 333 | 2,009 | 1,043 | |||||||||||
Refining Revenues | 9,468 | 6,112 | 31,581 | 22,256 | |||||||||||
Refining Cost of Materials and Expense | |||||||||||||||
Cost of materials and other (excluding items shown separately below) (d) | 8,681 | 5,504 | 27,741 | 19,469 | |||||||||||
Lower of cost or market adjustments | - | (123 | ) | - | (359 | ) | |||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs (k) | 544 | 419 | 1,954 | 1,591 | |||||||||||
Other operating expenses | 121 | 122 | 438 | 429 | |||||||||||
Total operating expenses | 665 | 541 | 2,392 | 2,020 | |||||||||||
Depreciation and amortization expenses | 173 | 148 | 647 | 588 | |||||||||||
General and administrative expenses | 1 | (2 | ) | 8 | 2 | ||||||||||
Loss on asset disposals and impairments | 4 | 1 | 8 | 1 | |||||||||||
Segment Operating Income (Loss) | $ | (56 | ) | $ | 43 | $ | 785 | $ | 535 | ||||||
Refining margin (l) | $ | 787 | $ | 731 | $ | 3,840 | $ | 3,146 | |||||||
Refining margin ($/throughput barrel) (l) | $ | 7.62 | $ | 9.45 | $ | 10.55 | $ | 10.42 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (k)(l) | $ | 5.28 | $ | 5.43 | $ | 5.37 | $ | 5.27 | |||||||
Total Refining Segment | |||||||||||||||
Throughput (Mbpd) | |||||||||||||||
Heavy crude | 188 | 178 | 181 | 176 | |||||||||||
Light crude | 858 | 607 | 750 | 598 | |||||||||||
Other feedstocks | 76 | 56 | 66 | 51 | |||||||||||
Total Throughput | 1,122 | 841 | 997 | 825 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 605 | 457 | 522 | 451 | |||||||||||
Diesel fuel | 284 | 209 | 238 | 189 | |||||||||||
Jet fuel | 139 | 124 | 132 | 118 | |||||||||||
Other | 105 | 108 | 111 | 122 | |||||||||||
Total Yield | 1,133 | 898 | 1,003 | 880 | |||||||||||
Refined Product Sales (Mbpd) (m) | |||||||||||||||
Gasoline and gasoline blendstocks | 671 | 510 | 624 | 523 | |||||||||||
Diesel fuel | 273 | 159 | 242 | 210 | |||||||||||
Jet fuel | 157 | 228 | 154 | 149 | |||||||||||
Other | 134 | 96 | 134 | 102 | |||||||||||
Total Refined Product Sales | 1,235 | 993 | 1,154 | 984 | |||||||||||
(j) Refined product sales include intersegment sales to our Marketing segment of $4.0 billion and $3.5 billion for the three months ended December 31, 2017 and 2016, respectively, and $15.9 billion and $13.7 billion for the years ended December 31, 2017 and 2016, respectively.
(k) Manufacturing costs represent direct operating expenses incurred by our Refining segment for the production of refined products.
(l) Management uses various measures to evaluate performance and efficiency and to compare profitability to other companies in the industry, including refining margin, refining margin per throughput barrel and manufacturing costs before depreciation and amortization expenses per throughput barrel. Refer to "Non-GAAP Measures" and "Non-GAAP Reconciliations" for further information regarding these non-GAAP measures.
(m) Sources of total refined product sales include refined products manufactured at our refineries and refined products purchased from third parties. Total refined product sales include sales of manufactured and purchased refined products. Refined product sales include all sales through our Marketing segment as well as in bulk markets and exports through our Refining segment.
Andeavor
Segment Operating Data and Results (Unaudited) ($ in millions, except per barrel and per Mbpd amounts)
Three Months Ended | Year Ended | ||||||||||||||
Refining By Region | 2017 | 2016 | 2017 | 2016 | |||||||||||
California (Martinez and Los Angeles) | |||||||||||||||
Revenues | |||||||||||||||
Refined products (j) | $ | 4,246 | $ | 3,873 | $ | 16,346 | $ | 14,231 | |||||||
Crude oil resales and other | 117 | 155 | 413 | 312 | |||||||||||
Regional Revenue | 4,363 | 4,028 | 16,759 | 14,543 | |||||||||||
Refining Cost of Materials and Expenses | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 4,071 | 3,595 | 14,831 | 12,671 | |||||||||||
Lower of cost or market adjustments | - | (82 | ) | - | (236 | ) | |||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs (l) | 295 | 296 | 1,166 | 1,119 | |||||||||||
Other operating expenses | 71 | 69 | 252 | 210 | |||||||||||
Total operating expenses | 366 | 365 | 1,418 | 1,329 | |||||||||||
Depreciation and amortization expenses | 94 | 95 | 379 | 375 | |||||||||||
General and administrative expenses | - | (2 | ) | 5 | 1 | ||||||||||
Loss on asset disposals | 3 | - | 7 | - | |||||||||||
Operating Income (Loss) | $ | (171 | ) | $ | 57 | $ | 119 | $ | 403 | ||||||
Refining margin (l) | $ | 292 | $ | 515 | $ | 1,928 | $ | 2,108 | |||||||
Refining margin per throughput barrel (m) | $ | 5.86 | $ | 10.74 | $ | 10.10 | $ | 11.36 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l)(m) | $ | 5.92 | $ | 6.17 | $ | 6.11 | $ | 6.02 | |||||||
Capital expenditures | $ | 125 | $ | 98 | $ | 383 | $ | 286 | |||||||
Throughput (Mbpd) | |||||||||||||||
Heavy crude | 149 | 172 | 156 | 170 | |||||||||||
Light crude | 344 | 317 | 325 | 304 | |||||||||||
Other feedstocks | 49 | 32 | 42 | 33 | |||||||||||
Total Throughput | 542 | 521 | 523 | 507 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 300 | 300 | 284 | 294 | |||||||||||
Diesel fuel | 132 | 131 | 118 | 113 | |||||||||||
Jet fuel | 69 | 75 | 71 | 71 | |||||||||||
Other | 52 | 61 | 62 | 74 | |||||||||||
Total Yield | 553 | 567 | 535 | 552 | |||||||||||
Andeavor
Segment Operating Data and Results (Unaudited) ($ in millions, except per barrel amounts)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Pacific Northwest (Washington and Alaska) | |||||||||||||||
Revenues | |||||||||||||||
Refined products (j) | $ | 1,300 | $ | 1,096 | $ | 4,872 | $ | 4,030 | |||||||
Crude oil resales and other | 88 | 51 | 258 | 226 | |||||||||||
Regional Revenue | 1,388 | 1,147 | 5,130 | 4,256 | |||||||||||
Refining Cost of Materials and Expenses | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 1,311 | 1,047 | 4,570 | 3,825 | |||||||||||
Lower of cost or market adjustments | - | (24 | ) | - | (84 | ) | |||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs (l) | 72 | 68 | 277 | 258 | |||||||||||
Other operating expenses | 21 | 22 | 80 | 65 | |||||||||||
Total operating expenses | 93 | 90 | 357 | 323 | |||||||||||
Depreciation and amortization expenses | 26 | 27 | 106 | 96 | |||||||||||
General and administrative expenses | - | - | - | 1 | |||||||||||
Operating Income (Loss) | $ | (42 | ) | $ | 7 | $ | 97 | $ | 95 | ||||||
Refining margin (l) | $ | 77 | $ | 124 | $ | 560 | $ | 515 | |||||||
Refining margin per throughput barrel (m) | $ | 4.43 | $ | 7.13 | $ | 8.20 | $ | 7.77 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l)(m) | $ | 4.14 | $ | 3.97 | $ | 4.06 | $ | 3.90 | |||||||
Capital expenditures | $ | 38 | $ | 29 | $ | 141 | $ | 125 | |||||||
Throughput (Mbpd) | |||||||||||||||
Heavy crude | 12 | 6 | 9 | 6 | |||||||||||
Light crude | 163 | 165 | 163 | 162 | |||||||||||
Other feedstocks | 14 | 18 | 15 | 13 | |||||||||||
Total Throughput | 189 | 189 | 187 | 181 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 83 | 82 | 81 | 80 | |||||||||||
Diesel fuel | 35 | 39 | 34 | 35 | |||||||||||
Jet fuel | 38 | 37 | 39 | 35 | |||||||||||
Other | 30 | 37 | 30 | 37 | |||||||||||
Total Yield | 186 | 195 | 184 | 187 | |||||||||||
Andeavor
Segment Operating Data and Results (Unaudited) ($ in millions, except per barrel amounts)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Mid-Continent (North Dakota, Utah, New Mexico, Texas, and Minnesota) | |||||||||||||||
Revenues | |||||||||||||||
Refined products (j) | $ | 3,005 | $ | 810 | $ | 8,354 | $ | 2,952 | |||||||
Crude oil resales and other | 712 | 127 | 1,338 | 505 | |||||||||||
Regional Revenue | 3,717 | 937 | 9,692 | 3,457 | |||||||||||
Refining Cost of Materials and Expenses | |||||||||||||||
Cost of materials and other (excluding items shown separately below) | 3,299 | 862 | 8,340 | 2,973 | |||||||||||
Lower of cost or market adjustments | - | (17 | ) | - | (39 | ) | |||||||||
Operating expenses (excluding depreciation and amortization): | |||||||||||||||
Manufacturing costs (l) | 177 | 55 | 511 | 214 | |||||||||||
Other operating expenses | 29 | 31 | 106 | 154 | |||||||||||
Total operating expenses | 206 | 86 | 617 | 368 | |||||||||||
Depreciation and amortization expenses | 53 | 26 | 162 | 117 | |||||||||||
General and administrative expenses | 1 | - | 3 | - | |||||||||||
Loss on asset disposals | 1 | 1 | 1 | 1 | |||||||||||
Operating Income (Loss) | $ | 157 | $ | (21 | ) | $ | 569 | $ | 37 | ||||||
Refining margin (l) | $ | 418 | $ | 92 | $ | 1,352 | $ | 523 | |||||||
Refining margin per throughput barrel (m) | $ | 11.62 | $ | 7.58 | $ | 12.91 | $ | 10.43 | |||||||
Manufacturing costs (excluding depreciation and amortization) per throughput barrel (l)(m) | $ | 4.92 | $ | 4.57 | $ | 4.88 | $ | 4.29 | |||||||
Capital expenditures | $ | 131 | $ | 39 | $ | 320 | $ | 108 | |||||||
Throughput (Mbpd) | |||||||||||||||
Heavy Crude | 27 | - | 16 | - | |||||||||||
Light crude | 351 | 125 | 262 | 132 | |||||||||||
Other feedstocks | 13 | 6 | 9 | 5 | |||||||||||
Total Throughput | 391 | 131 | 287 | 137 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 222 | 75 | 157 | 77 | |||||||||||
Diesel fuel | 117 | 39 | 86 | 41 | |||||||||||
Jet fuel | 32 | 12 | 22 | 12 | |||||||||||
Other | 23 | 10 | 19 | 11 | |||||||||||
Total Yield | 394 | 136 | 284 | 141 | |||||||||||
Non-GAAP Reconciliations
Fuel Margin and Merchandise Margin Calculation ($ in millions, except cents per gallon and percent)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment Operating Income | $ | 236 | $ | 169 | $ | 788 | $ | 830 | |||||||
Add back: | |||||||||||||||
Operating expenses | 171 | 77 | 511 | 298 | |||||||||||
Depreciation and amortization expenses | 19 | 13 | 68 | 49 | |||||||||||
Selling, General and administrative expenses | 10 | 5 | 23 | 17 | |||||||||||
Loss on asset disposals | 1 | 1 | 1 | 4 | |||||||||||
Marketing Margin | $ | 437 | $ | 265 | $ | 1,391 | $ | 1,198 | |||||||
Revenues | |||||||||||||||
Retail and Branded fuel sales | $ | 3,147 | $ | 2,226 | $ | 11,217 | $ | 8,863 | |||||||
Unbranded fuel sales | 2,656 | 1,686 | 9,727 | 6,542 | |||||||||||
Total fuel sales | 5,803 | 3,912 | 20,944 | 15,405 | |||||||||||
Merchandise | 182 | 6 | 456 | 25 | |||||||||||
Other sales | 34 | 14 | 113 | 60 | |||||||||||
Total Revenues | 6,019 | 3,932 | 21,513 | 15,490 | |||||||||||
Cost of Fuel and Other (excluding depreciation and amortization) | |||||||||||||||
Retail and Branded fuel costs | 2,827 | 2,003 | 10,159 | 7,802 | |||||||||||
Unbranded fuel costs | 2,620 | 1,659 | 9,617 | 6,473 | |||||||||||
Total fuel costs | 5,447 | 3,662 | 19,776 | 14,275 | |||||||||||
Purchases of merchandise | 135 | 5 | 329 | 17 | |||||||||||
Other costs | - | - | 17 | - | |||||||||||
Total Cost of Fuel and Other | 5,582 | 3,667 | 20,122 | 14,292 | |||||||||||
Marketing Margin | |||||||||||||||
Retail and Branded fuel margin | 320 | 223 | 1,058 | 1,061 | |||||||||||
Unbranded fuel margin | 36 | 27 | 110 | 69 | |||||||||||
Total fuel margin | 356 | 250 | 1,168 | 1,130 | |||||||||||
Merchandise margin | 47 | 1 | 127 | 8 | |||||||||||
Other margin | 34 | 14 | 96 | 60 | |||||||||||
Total Convenience Margin | 81 | 15 | 223 | 68 | |||||||||||
Marketing Margin | $ | 437 | $ | 265 | $ | 1,391 | $ | 1,198 | |||||||
Merchandise Margin Percentage (n) | 26.0 | % | 31.3 | % | 27.1 | % | 34.4 | % | |||||||
Fuel Sales (millions of gallons) | |||||||||||||||
Retail and Branded fuel sales | 1,352 | 1,136 | 5,068 | 4,550 | |||||||||||
Unbranded fuel sales | 1,542 | 1,045 | 5,405 | 4,329 | |||||||||||
Total Fuel Sales | 2,894 | 2,181 | 10,473 | 8,879 | |||||||||||
Retail and Branded Fuel Margin (¢/gallon) (n) | 23.4 | ¢ | 19.6 | ¢ | 20.9 | ¢ | 23.3 | ¢ | |||||||
Unbranded Fuel Margin (¢/gallon) (n) | 2.5 | ¢ | 2.5 | ¢ | 2.0 | ¢ | 1.6 | ¢ | |||||||
Total Fuel Margin (¢/gallon) (n) | 12.2 | ¢ | 11.4 | ¢ | 11.2 | ¢ | 12.7 | ¢ | |||||||
(n) Amounts may not recalculate due to rounding of dollar and volume information.
Average Margin on NGL Sales Per Barrel Calculation (in millions, except per barrel amounts and days)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment Operating Income | $ | 195 | $ | 123 | $ | 665 | $ | 487 | |||||||
Add back: | |||||||||||||||
Operating expenses | 167 | 120 | 614 | 442 | |||||||||||
Depreciation and amortization expenses | 70 | 51 | 276 | 190 | |||||||||||
General and administrative expenses | 42 | 24 | 135 | 95 | |||||||||||
(Gain) loss on asset disposals and impairments | - | 1 | (24 | ) | 4 | ||||||||||
Other commodity purchases | - | - | 2 | - | |||||||||||
Subtract: | |||||||||||||||
Terminalling revenues | (196 | ) | (135 | ) | (688 | ) | (480 | ) | |||||||
Pipeline transportation revenues | (33 | ) | (32 | ) | (130 | ) | (125 | ) | |||||||
Other terminalling revenues | (9 | ) | - | (18 | ) | - | |||||||||
Gas gathering and processing revenues | (81 | ) | (66 | ) | (333 | ) | (264 | ) | |||||||
Crude oil gathering revenues | (81 | ) | (33 | ) | (228 | ) | (133 | ) | |||||||
Pass-thru and other revenues | (45 | ) | (28 | ) | (165 | ) | (115 | ) | |||||||
Margin on NGL Sales | $ | 29 | $ | 25 | $ | 106 | $ | 101 | |||||||
Divided by Total Volumes for the Period: | |||||||||||||||
NGLs sales volumes (Mbpd) | 11.4 | 7.1 | 8.3 | 7.5 | |||||||||||
Number of days in the period | 92 | 92 | 365 | 366 | |||||||||||
Total volumes for the period (thousands of barrels) | 1,049 | 653 | 3,030 | 2,745 | |||||||||||
Average Margin on NGL Sales per Barrel (n) | $ | 28.10 | $ | 36.95 | $ | 34.77 | $ | 36.59 | |||||||
Refining Margin Per Throughput Barrel Calculation (in millions, except per barrel amounts and days)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment Operating Income (Loss) | $ | (56 | ) | $ | 43 | $ | 785 | $ | 535 | ||||||
Add back: | |||||||||||||||
Manufacturing costs (excluding depreciation and amortization) | 544 | 419 | 1,954 | 1,591 | |||||||||||
Other operating expenses (excluding depreciation and amortization) | 121 | 122 | 438 | 429 | |||||||||||
Depreciation and amortization expenses | 173 | 148 | 647 | 588 | |||||||||||
General and administrative expenses | 1 | (2 | ) | 8 | 2 | ||||||||||
Loss on asset disposals and impairments | 4 | 1 | 8 | 1 | |||||||||||
Refining Margin | $ | 787 | $ | 731 | $ | 3,840 | $ | 3,146 | |||||||
Divided by Total Volumes: | |||||||||||||||
Total refining throughput (Mbpd) | 1,122 | 841 | 997 | 825 | |||||||||||
Number of days in the period | 92 | 92 | 365 | 366 | |||||||||||
Total volumes for the period (millions of barrels) (n) | 103.3 | 77.4 | 363.7 | 301.9 | |||||||||||
Refining Margin per Throughput Barrel (n) | $ | 7.62 | $ | 9.45 | $ | 10.55 | $ | 10.42 | |||||||
Refining Margin Per Throughput Barrel Calculation by Region (in millions, except per barrel amounts and days)
California | Pacific Northwest (Washington and Alaska) | Mid-Continent | |||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Segment Operating Income (Loss) | $ | (171 | ) | $ | 57 | $ | (42 | ) | $ | 7 | $ | 157 | $ | (21 | ) | ||||||||
Add back: | |||||||||||||||||||||||
Manufacturing costs (excluding depreciation and amortization) | 295 | 296 | 72 | 68 | 177 | 55 | |||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | 71 | 69 | 21 | 22 | 29 | 31 | |||||||||||||||||
Depreciation and amortization expenses | 94 | 95 | 26 | 27 | 53 | 26 | |||||||||||||||||
General and administrative expenses | - | (2 | ) | - | - | 1 | - | ||||||||||||||||
Loss on asset disposals and impairments | 3 | - | - | - | 1 | 1 | |||||||||||||||||
Refining Margin | $ | 292 | $ | 515 | $ | 77 | $ | 124 | $ | 418 | $ | 92 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 542 | 521 | 189 | 189 | 391 | 131 | |||||||||||||||||
Number of days in the period | 92 | 92 | 92 | 92 | 92 | 92 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 49.8 | 47.9 | 17.4 | 17.4 | 36.1 | 12.1 | |||||||||||||||||
Refining Margin per Throughput Barrel (n) | $ | 5.86 | $ | 10.74 | $ | 4.43 | $ | 7.13 | $ | 11.62 | $ | 7.58 | |||||||||||
Refining Margin Per Throughput Barrel Calculation by Region (in millions, except per barrel amounts and days)
California | Pacific Northwest (Washington and Alaska) | Mid-Continent | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Segment Operating Income | $ | 119 | $ | 403 | $ | 97 | $ | 95 | $ | 569 | $ | 37 | |||||||||||
Add back: | |||||||||||||||||||||||
Manufacturing costs (excluding depreciation and amortization) | 1,166 | 1,119 | 277 | 258 | 511 | 214 | |||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | 252 | 210 | 80 | 65 | 106 | 154 | |||||||||||||||||
Depreciation and amortization expenses | 379 | 375 | 106 | 96 | 162 | 117 | |||||||||||||||||
General and administrative expenses | 5 | 1 | - | 1 | 3 | - | |||||||||||||||||
Loss on asset disposals and impairments | 7 | - | - | - | 1 | 1 | |||||||||||||||||
Refining Margin | $ | 1,928 | $ | 2,108 | $ | 560 | $ | 515 | $ | 1,352 | $ | 523 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 523 | 507 | 187 | 181 | 287 | 137 | |||||||||||||||||
Number of days in the period | 365 | 366 | 365 | 366 | 365 | 366 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 191.0 | 185.7 | 68.4 | 66.3 | 104.4 | 49.9 | |||||||||||||||||
Refining Margin per Throughput Barrel (n) | $ | 10.10 | $ | 11.36 | $ | 8.20 | $ | 7.77 | $ | 12.91 | $ | 10.43 | |||||||||||
Manufacturing Costs (Excluding Depreciation and Amortization) Per Throughput Barrel Calculation
(in millions, except per barrel amounts and days)
Three Months Ended | Year Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total Refining Segment operating expenses (excluding depreciation and amortization) | $ | 665 | $ | 541 | $ | 2,392 | $ | 2,020 | |||||||
Subtract: | |||||||||||||||
Other operating expenses (excluding depreciation and amortization) | (121 | ) | (122 | ) | (438 | ) | (429 | ) | |||||||
Manufacturing Costs (excluding depreciation and amortization) | $ | 544 | $ | 419 | $ | 1,954 | $ | 1,591 | |||||||
Divided by Total Volumes: | |||||||||||||||
Total refining throughput (Mbpd) | 1,122 | 841 | 997 | 825 | |||||||||||
Number of days in the period | 92 | 92 | 365 | 366 | |||||||||||
Total volumes for the period (millions of barrels) (n) | 104.9 | 80.4 | 348.2 | 299.9 | |||||||||||
Manufacturing Costs (excluding depreciation and amortization) per Throughput Barrel (n) | $ | 5.28 | $ | 5.43 | $ | 5.37 | $ | 5.27 | |||||||
Manufacturing Costs (Excluding Depreciation and Amortization) Per Throughput Barrel Calculation by Region
(in millions, except per barrel amounts and days)
California | Pacific Northwest (Washington and Alaska) | Mid-Continent | |||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Total operating expenses | $ | 366 | $ | 365 | $ | 93 | $ | 90 | $ | 206 | $ | 86 | |||||||||||
Subtract: | |||||||||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | (71 | ) | (69 | ) | (21 | ) | (22 | ) | (29 | ) | (31 | ) | |||||||||||
Manufacturing Costs (excluding depreciation and amortization) | $ | 295 | $ | 296 | $ | 72 | $ | 68 | $ | 177 | $ | 55 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 542 | 521 | 189 | 189 | 391 | 131 | |||||||||||||||||
Number of days in the period | 92 | 92 | 92 | 92 | 92 | 92 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 49.8 | 47.9 | 17.4 | 17.4 | 36.1 | 12.1 | |||||||||||||||||
Manufacturing Costs (excluding depreciation and amortization) per Throughput Barrel (n) | $ | 5.92 | $ | 6.17 | $ | 4.14 | $ | 3.97 | $ | 4.92 | $ | 4.57 | |||||||||||
Manufacturing Costs (Excluding Depreciation and Amortization) Per Throughput Barrel Calculation by Region
(in millions, except per barrel amounts and days)
California | Pacific Northwest (Washington and Alaska) | Mid-Continent | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Total operating expenses | $ | 1,418 | $ | 1,329 | $ | 357 | $ | 323 | $ | 617 | $ | 368 | |||||||||||
Subtract: | |||||||||||||||||||||||
Other operating expenses (excluding depreciation and amortization) | (252 | ) | (210 | ) | (80 | ) | (65 | ) | (106 | ) | (154 | ) | |||||||||||
Manufacturing Costs (excluding depreciation and amortization) | $ | 1,166 | $ | 1,119 | $ | 277 | $ | 258 | $ | 511 | $ | 214 | |||||||||||
Divided by Total Volumes: | |||||||||||||||||||||||
Total refining throughput (Mbpd) | 523 | 507 | 187 | 181 | 287 | 137 | |||||||||||||||||
Number of days in the period | 365 | 366 | 365 | 366 | 365 | 366 | |||||||||||||||||
Total volumes for the period (millions of barrels) (n) | 191.0 | 185.7 | 68.4 | 66.3 | 104.4 | 49.9 | |||||||||||||||||
Manufacturing Costs (excluding depreciation and amortization) per Throughput Barrel (n) | $ | 6.11 | $ | 6.02 | $ | 4.06 | $ | 3.90 | $ | 4.88 | $ | 4.29 | |||||||||||
Total Debt Excluding Andeavor Logistics (in millions)
December 31, | |||||||
2017 | 2016 | ||||||
Total debt excluding Andeavor Logistics: | |||||||
Andeavor consolidated debt (q) | $ | 7,685 | $ | 6,933 | |||
Andeavor Logistics debt (q) | 4,128 | 4,054 | |||||
Andeavor Total Debt Excluding Andeavor Logistics (q) | $ | 3,557 | $ | 2,879 | |||
(q) Shown net of unamortized issuance costs.
Total Liquidity (in millions)
December 31, | |||||||
2017 | 2016 | ||||||
Andeavor Revolving Credit Facility - available capacity | $ | 2,934 | $ | 1,996 | |||
Add: Cash and cash equivalents | 543 | 3,295 | |||||
Less: Andeavor Logistics` cash and cash equivalents | (75 | ) | (688 | ) | |||
Total Liquidity | $ | 3,402 | $ | 4,603 | |||
Andeavor
Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) (in millions)
Reconciliation of Projected Annual | ||||||||||||
(in millions) | Wamsutter Pipeline System Acquisition | Anacortes Logistics Assets Acquisition | Permian Gathering Projects | Permian Systems | ||||||||
Projected Logistics Segment Operating Income Contribution | $ | 14-18 | $ | 45-50 | $ | 3-4 | $ | 150 | ||||
Add: Projected depreciation and amortization expense | 6 | 5 | 1 | 50 | ||||||||
Projected Segment EBITDA Contribution | $ | 20-24 | $ | 50-55 | $ | 4-5 | $ | 200 | ||||
Andeavor Growth Strategy Projected EBITDA 2018E-2020E | ||||||||||||||||||
(in millions) | Western Synergies | Strategic Refining Capital Projects | Marketing Segment Growth | Logistics Segment Growth | Refining Segment Growth | Total | ||||||||||||
Projected Net Earnings | $ | 320 | $ | 92 | $ | 175 | $ | 330 | $ | 88 | $ | 1,005 | ||||||
Add: Projected depreciation and amortization expense | - | 33 | 20 | 80 | 32 | 165 | ||||||||||||
Add: Projected interest and financing costs, net | - | - | - | 20 | - | 20 | ||||||||||||
Add: Projected income tax expense | - | 50 | 105 | - | 55 | 210 | ||||||||||||
Projected Annual EBITDA | $ | 320 | $ | 175 | $ | 300 | $ | 430 | $ | 175 | $ | 1,400 | ||||||
Projected EBITDA 2020E | |||||||||
(in millions) | LA Refinery Integration and Compliance Project Refining | LA Refinery Integration and Compliance Project Logistics | LA Refinery Integration and Compliance Project Total | ||||||
Projected Net Earnings | $ | 57 | $ | 8 | $ | 65 | |||
Add: Projected depreciation and amortization expense | 13 | 7 | 20 | ||||||
Add: Projected interest and financing costs, net | - | 5 | 5 | ||||||
Add: Projected income tax expense | 35 | - | 35 | ||||||
Projected Annual EBITDA | $ | 105 | $ | 20 | $ | 125 | |||
Andeavor
Fourth Quarter 2017 Impacts (Unaudited)*
Refining Margin Impacts ($ millions) Income/(Expense) | |||
Product Inventory Build Ahead of 2018 Turnarounds | $ | (50 | ) |
Crude Hedge & Inventory Impacts | (50 | ) | |
Crude Differential Impacts (primarily Canadian) | (35 | ) | |
Clean Product Yield and Maintenance Cost, net | (25 | ) | |
Total | $ | (160 | ) |
Other Items ($ millions) Income/(Expense) | |||
Federal tax reform impact | $ | 918 | |
ANDX debt refinancing charges (before noncontrolling interest) | (77 | ) | |
Impairment of all Vancouver Energy assets | (40 | ) | |
Refining Other Operating Expense (litigation reserves, environmental, insurance, benefit plans) | (25 | ) | |
Acquisition Costs related to Andeavor Logistics` acquisition of WNRL and IDR Buy-In | (23 | ) | |
Integration costs related to Western acquisition | (11 | ) | |
Total | $ | 742 | |
*All items are on a pre-tax basis except Federal tax reform impact
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Andeavor via GlobeNewswire
HUG#2169482
