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ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation

Marathon Petroleum Corporation · Oct 8, 2012 · 19 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 1
    Acquisition of BPs Texas City Refinery and Related Logistics and Marketing Assets October 8, 2012
  2. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 2
    Transaction Overview 451 MBPCD (475 MBPSD) high complexity refinery, Nelson Complexity Index of 15.3 1,040 megawatt cogeneration (cogen) facility Supplies power and steam to the refinery Surplus power sold into grid More than 100…
  3. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 3
    Transaction Highlights Supports MPC strategy to grow in existing and contiguous markets and expand integrated model One of the largest and most complex refineries in the U.S. Well connected to crude and products markets, including…
  4. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 4
    Diversification and Balance in MPCs Refining Network Canton, OH 78,000 Catlettsburg, KY 233,000 Detroit, MI 106,000 Robinson, IL 206,000 Midwest Capacity BP Texas City, TX 451,000 MPC Texas City, TX 623,000 BPCD 80,000…
  5. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 5
    Access To Advantaged Crude Supply Access to growing WTI, Canadian and Bakken crudes Seaway Reversal 2012 Seaway Expansion 2013 Longhorn 2013 Gulf Coast Access 2014 Bakken / BridgeTex 2014 Canadian Keystone XL 2015 Close…
  6. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 6
    Product Logistics Opportunities Flexible product placement Domestic and export Southeast opportunities Midwest Synergies with MPCs Texas City and Garyville refineries and MPC logistics Zachary Pasadena Garyville Texas…
  7. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 7
    Logistics Assets Light product terminals Nashville, TN Charlotte, NC Selma, NC Jacksonville, FL Three intrastate NGL pipelines Colonial Pipeline space 50 MBPD gasoline shipper history Refinery and Cogen Light Product Terminals…
  8. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 8
    Marketing Assets and Integration Integrated acquisition includes Assignment of branded-jobber contracts representing 1,200 BP retail sites 64 MBPD of gasoline sales Locations primarily in FL, MS, TN and AL BP trademark to be used…
  9. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 9
    World Scale and Highly Complex Refinery 20 BP Texas 15 City Nelson Complexity Index MPC Gary- ville 10 5 0 0 100 200 300 400 500 600 700 Crude Capacity (MBCD) US Refineries. Source: Oil & Gas Journal Dec 2011…
  10. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 10
    Texas City Refinery Assets 451,000 BPCD (475,000 BPSD) refinery consisting of: 233,000 BPCD heavy-sour crude unit 218,000 BPCD medium-sour crude unit Bottoms upgrading 63,000 BPCD resid hydrocracker 29,700 BPCD coking Nelson…
  11. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 11
    Projected Synergies and Capital Investments (Millions) Projected Incremental Synergies EBITDA Projected Synergy Capital Investments 160 160 120 120 80 80 40 40 0 0 2013E 2014E 2015E 2016E 2017E+ 2013E 2014E 2015E 2016E EBITDA…
  12. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 12
    Projected Sustaining Capital Investments* (Millions) 500 400 300 200 100 0 2013E 2014E 2015E 2016E 2017E 2018E 2019E Refinery All Other * Excludes synergy and other value accretive investments 13
  13. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 13
    Cash Purchase Price Excluding Earnout Base cash purchase price (millions) 598 Less: Cogen facility (290) Less: Terminals and other logistics assets (120) Less: Retail marketing (40) Estimated Net Refining Asset Price 148 (Excludes…
  14. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 14
    Indicative Purchase Price Comparison TSO-Carson (8/2012) 16 MPC-BP Texas City without earnout 21 Alon-Bakersfield (6/2010) 66 PBF- Del City (6/2010) 109 Delta-Trainer (4/2012) 122 MPC-BP Texas City with earnout* 123…
  15. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 15
    Expected Accretive Transaction (MM unless otherwise indicated) MPC Base EBITDA - analyst 2013 consensus estimates(1) 4,759 4,759 Assets to be acquired EBITDA using 2006-2010 pricing(2)(4) 1,200 Assets to be acquired EBITDA using 2011…
  16. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 16
    Earnout Provision Summary Term: 6 years Overall earnout cap: 700 million Earnout margin: (actual crude volume plus 50% feedstock volume processed) x (ASCI 3-2-1 crack) Margin sharing 50/50 above the earnout margin threshold up to…
  17. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 17
    Transaction Complements MPCs Integrated System Refinery 451,000 BPCD (475,000 BPSD) refinery Nelson Complexity Index: 15.3 Significant recent investments Excellent crude optionality Substantial products logistics opportunities…
  18. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 18
    Appendix 19
  19. ACQUISITION OF BPS TEXAS CITY REFINERY – Marathon Petroleum Corporation – slide 19
    Cash Purchase Price Including Full Earnout Base cash purchase price (millions) 598 Full earnout 700 Total purchase price with full earnout 1,298 Less: Cogen facility (290) Less: Terminals and other logistics assets (120) Less:…

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