{
  "docId": "019dd923-622c-750b-8b9c-70939a0f825f",
  "docSlug": "7ed65c83e062",
  "documentTitle": "Marathon Petroleum Corporation (MPC)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-09-24 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 20,
  "pageCount": 45,
  "prevPage": 19,
  "nextPage": 21,
  "slideType": "valuation_table",
  "function": "show_valuation_bridge",
  "density": "overcrowded",
  "nDataPoints": 30,
  "notes": "Includes analyst quotes from Goldman Sachs and Morgan Stanley to support the thesis.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "valuation_table",
    "callout_box",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-70939a0f825f/20",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-70939a0f825f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-70939a0f825f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-70939a0f825f#slide-20",
  "components": [
    {
      "bbox": {
        "h": 0.25,
        "w": 0.3,
        "x": 0.68,
        "y": 0.65
      },
      "kind": "callout",
      "text": "After backing out the value of publicly traded MLP interests and the estimated value of other non-refining businesses, Marathon's current trading price implies a significant discount to the trading value of merchant refining peers",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d73e0944-5303-4164-89fa-99644549d8fb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Implied refining EV/EBITDA: 0.9x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-14d7-73fd-9f58-bfe9cb901e02",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.3,
        "x": 0.68,
        "y": 0.4
      },
      "kind": "quote",
      "text": "We see discounted value in MPC with the stock trading in line with many of its peers on 2020 EBITDA despite its corporate structure with retail and midstream deserving a premium.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "69270f4d-2345-4b10-a6c8-4bf106a6a25f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.3,
        "x": 0.68,
        "y": 0.15
      },
      "kind": "quote",
      "text": "At current valuation levels, by simply marking to market the value of non-refining businesses, we estimate one can create the MPC refining business for effectively free before even incorporating the upside from IMO 2020.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ee791311-bb93-4951-a338-841d44793daa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"At current valuation levels, by simply marking to market the value of non-refining businesses, we estimate one can create the MPC refining business for effectively free before even incorporating the upside from IMO 2020.\" — Goldman Sachs, March 19, 2019; \"We see discounted value in MPC with the stock trading in line with many of its peers on 2020 EBITDA despite its corporate structure with retail and midstream deserving a premium. However, debate has centered on investors' confidence in MPC's earnings achievability.\" — Morgan Stanley, May 9, 2019",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-14d7-73fd-9f58-b9ccdf2b8c3d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.95,
        "x": 0.02,
        "y": 0.9
      },
      "kind": "source-note",
      "text": "1. Balance sheet data as of 6/30/19. Segment EBITDA estimates based on average of current estimates...",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ed58ddc4-601d-4675-8d6b-571fee4daab7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.7,
        "w": 0.65,
        "x": 0.02,
        "y": 0.15
      },
      "kind": "table",
      "text": "Implied Refining Enterprise Value table comparing Valero, [Peer], and Marathon",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ca0f5c80-88b8-4f17-8721-6e21d7246a5e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.02,
        "y": 0.08
      },
      "kind": "title",
      "text": "After backing out the value of Retail and Midstream, the implied value of Marathon's Refining segment is <1x 2020E EBITDA.(1)",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "84ce96e6-5bf2-48e9-a6f9-3813e3f0b766",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.7,
        "x": 0.02,
        "y": 0.02
      },
      "kind": "title",
      "text": "Marathon's Current Valuation Implies Limited Value for its Refining Business",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "de68f44c-2316-4139-b951-f1e74d58a803",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "valuation_table",
      "slug": null,
      "matchId": "05a540c4-9e14-464b-8968-f9dd0ecee1a7",
      "evidence": "Sum-of-the-parts valuation table",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 9,
      "beatId": "339120df-84a0-416d-b544-b7f6ab2b1fd5",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "Elliott highlights the consequences of not taking action, including Marathon's undervaluation and limited growth prospects",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}