Marathon Petroleum (NYSE:MPC)
Q1 2021 Earnings Call
May 04, 2021, 11:00 a.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Welcome to the MPC first-quarter 2021 earnings call. My name is Sheila, and I will be your operator for today’s call. [Operator instructions] Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian.
Kristina, you may begin.
Kristina Kazarian — Managing Director
Welcome to Marathon Petroleum Corporation’s first-quarter 2021 earnings conference call. The slides that accompany this call can be found on our website at marathonpetroleum.com under the Investor tab. Joining me on the call today are Mike Hennigan, CEO; Maryann Mannen, CFO; and other members of the executive team. We invite you to read the safe harbor statements on Slide 2.
We will be making forward-looking statements today. Actual results may differ. Factors that could cause actual results to differ are included there, as well as in our SEC filings. With that, I’ll turn the call over to Mike.
Mike Hennigan — Chief Executive Officer
Thanks, Kristina, and thank you for joining our call this morning. Before we get into our results for the quarter, we wanted to provide a brief update on the business. During the first quarter, our industry continued to struggle with a reduction in global economic activity and demand for transportation fuels that resulted from the mobility restrictions related to COVID-19 pandemic. As we started the second quarter with the rollout of vaccinations, we still see industrywide gasoline demand down around 5% from historical levels and jet demand down around 25% to 30%.
To the extent that a pent-up desire to travel starts to brighten the macro outlook for our business, our team and our assets are poised to take advantage of these opportunities. But in the meantime, as the challenging backdrop holds, we’ll continue to concentrate on the elements of our business that are within our control. Our near-term priorities remain the same. Each quarter, we’re focused on strengthening the competitive position of our assets, improving our commercial performance, and lowering our cost structure.
Slide 4 highlights some of our actions around our strategic priorities this quarter. First, we’re close to completion on the sale of our Speedway business. Second, we continue to take steps to reposition our portfolio. Our board of directors approved our plans to convert our Martinez asset to a 48,000 barrel per day renewable facility.
We expect commissioning of Martinez to begin in the second half of 2022 with approximately 17,000 barrels per day of capacity. Additionally, we expect to reach full capacity of approximately 48,000 barrels a day by the end of ’23. In line with our commitment to lowering the carbon intensity of our operations and products, we’re planning to install wind turbine…
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