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MLP Corporate Access Day – MPLX Lp

MPLX Lp · Mar 6, 2013 · 59 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. MLP Corporate Access Day – MPLX Lp – slide 1
    Morgan Stanley MLP Corporate Access Day March 6, 2013
  2. MLP Corporate Access Day – MPLX Lp – slide 2
    Offering Summary Issuer MPLX LP Sponsor Marathon Petroleum Corporation Exchange / Ticker NYSE / MPLX Estimated Distribution Coverage 1.10x Expected Tax Shield 80% for the period from the IPO until December 31, 2015 203 million to…
  3. MLP Corporate Access Day – MPLX Lp – slide 3
    MPC has Created an Industry-Leading MLP MPLXs Primary Business Strategies Generate stable cash flows by providing primarily fee-based midstream Focus on Fee-Based services to MPC and third parties Businesses Mitigate volatility in cash…
  4. MLP Corporate Access Day – MPLX Lp – slide 4
    Summary of Key Investment Highlights Robust Growth Opportunities Attractive organic growth prospects augmented with tariff and volume increases Potential for significant growth through acquisitions alongside, and/or from, MPC; MPC has a…
  5. MLP Corporate Access Day – MPLX Lp – slide 5
    MPC and MPLX are Aligned MPLX Organizational Structure Marathon Petroleum MPC views MPLX as integral to Corporation and Affiliates (NYSE: MPC) its operations and is aligned with its success and 100.0% 71.6% incentivized to grow…
  6. MLP Corporate Access Day – MPLX Lp – slide 6
    MPC is a Strong Strategic Sponsor MPC is a leading independent R&M company Enterprise value of 27.4 Billion1 and LTM EBITDA generation of 6.342 Billion 2012 revenue of 82.2 Billion, Fortune 50 company Large integrated refining,…
  7. MLP Corporate Access Day – MPLX Lp – slide 7
    MPLXs Assets are Integral to MPC Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL) comprise one of the largest networks of pipeline systems in the U.S. based on total volume delivered 1,004 miles of common carrier…
  8. MLP Corporate Access Day – MPLX Lp – slide 8
    MPC Relationship Provides Robust Growth Opportunities for MPLX Logistics infrastructure is extremely important to MPC's success MPC intends to use MPLX as the primary growth vehicle for its midstream logistics business MPLX can pursue…
  9. MLP Corporate Access Day – MPLX Lp – slide 9
    Stable and Predictable Cash Flows Revenue Customer Mix1 MPLXs assets consist of fee-based pipeline 11% systems and storage assets 55 MM MPC has historically accounted for 85%+ of 16% the volumes shipped on MPLXs pipelines 81 MM…
  10. MLP Corporate Access Day – MPLX Lp – slide 10
    Ideal Assets for an MLP Historical crude and product volumes have been extremely stable with low variability despite material changes in the broader commodity price environment Butane cavern and storage facilities generate stable and…
  11. MLP Corporate Access Day – MPLX Lp – slide 11
    Strategically Located Assets MPLX operates all of its assets Assets are primarily located throughout the Midwest and U.S. Gulf Coast In 2011, these regions collectively comprised 72% and 48% of total U.S. crude distillation…
  12. MLP Corporate Access Day – MPLX Lp – slide 12
    Strategically Located Assets (Continued) MPLXs assets and a large number Bakken of MPC's retained assets are in the Williston Basin heart of the Midwest Appalachian infrastructure build-out Basin Michigan Antrim Basin…
  13. MLP Corporate Access Day – MPLX Lp – slide 13
    High-Quality, Well-Maintained Asset Base MPLX continually invests in the maintenance and integrity of its assets Uses a patented integrity management program to enhance pipeline safety and reliability Top-tier reputation and active…
  14. MLP Corporate Access Day – MPLX Lp – slide 14
    Pipeline Operations Deliver Top-tier Safety Performance Patented integrity management program fully compliant with DOT regulations State-of-the-art in-line assessment practices Leading control room management practices Industry…
  15. MLP Corporate Access Day – MPLX Lp – slide 15
    Experienced MPLX Management Team Management team includes MPC executive officers with an average 25 years of experience with MPLX's assets Years Experience Position at MPC Position at MPLX Industry With MPC Gary R. Heminger President…
  16. MLP Corporate Access Day – MPLX Lp – slide 16
    Strong Financial Flexibility to Manage and Grow Asset Base MPLX has no borrowings outstanding MPLXs undrawn 500 MM revolver provides significant liquidity to grow its business As of June 30, 2012 (MM) Uses for IPO Proceeds (MM)…
  17. MLP Corporate Access Day – MPLX Lp – slide 17
    Conservative Coverage with Predictable and Growing Distributions Estimated Twelve Months Ending 12/31/2013 ( in millions, unless otherwise noted) Stable historical results and strong growth going forward Adj. EBITDA 197.0 Predictable…
  18. MLP Corporate Access Day – MPLX Lp – slide 18
    Conclusion and Q&A Robust Growth Opportunities Attractive organic growth prospects augmented with tariff and volume increases Potential for significant growth through acquisitions alongside, and/or from, MPC; MPC has a very substantial…
  19. MLP Corporate Access Day – MPLX Lp – slide 19
    Appendix
  20. MLP Corporate Access Day – MPLX Lp – slide 20
    Adjusted EBITDA Bridge Analysis (MM) 300 14.6 (49.9) 35.7 250 98.4 (13.5) (10.8) (1.3 ) 197.0 (92.2) 200 168.3 (44.5) 150 123.8 104.8 100 50 (44.5) 73.2 -- 2011 2011 PF Pro Forma 2011 Tariffs Volumes…
  21. MLP Corporate Access Day – MPLX Lp – slide 21
    Historical and Pro Forma Results As presented in the MPLX Prospectus A B C D E Year Ended December 31, Pro Forma (Dollars in millions) Six Months 2009 2010 2011 FY 2011 Ended 6/30/12 1 Revenues and other income: 2 Sales and other…
  22. MLP Corporate Access Day – MPLX Lp – slide 22
    MPLX Pipeline Throughput Agreements Initial MPC Min. 2011 MPC Est. 12 Mo. Ended 12/31/13 Term Diameter Commitment Throughput Weighted Average MPC Min. Asset (Years) (Inches) (MBPD) (MBPD) Tariff ( / BBL) Revenue (MM) Crude Systems…
  23. MLP Corporate Access Day – MPLX Lp – slide 23
    MPLX S-1 Forecast Estimated 12 Months Ending 12/31/2013 A B C D E F Year Ending Estimated Three Months Ending, (mm) 2013 3/31/2013 6/30/2013 9/30/2013 12/31/2013 1 Revenues & Other Income: 2 Sales and other operating revenues 81.5…
  24. MLP Corporate Access Day – MPLX Lp – slide 24
    4th Quarter Earning Call Remarks Completed initial public offering (IPO) Adjusted EBITDA for post-IPO period of 18.2 million Generated 16.7 million of distributable cash flow Declared initial cash distribution of 0.1769 per unit…
  25. MLP Corporate Access Day – MPLX Lp – slide 25
    4Q Financial Information Post IPO (MM) 10/31/12 12/31/12 Revenues and other income 83.6 Costs and expenses 57.0 Income from operations 26.6 Income before income taxes 26.4 Net income 26.3 Net income attributable to MPLX LP…
  26. MLP Corporate Access Day – MPLX Lp – slide 26
    Adjusted EBITDA and Distributable Cash Flow Post IPO (MM) 10/31/12 12/31/12 Adjusted EBITDA 34.6 Less: Adjusted EBITDA attributable to MPC-retained interest 16.4 Adjusted EBITDA attributable to MPLX LP 18.2 Less: Cash interest…
  27. MLP Corporate Access Day – MPLX Lp – slide 27
    Strong Financial Flexibility to Manage and Grow Asset Base MPLXs undrawn 500 million revolver provides significant liquidity to grow its business As of (MM) 12/31/12 Cash and cash equivalents 216.7 Total assets 1,301.3 Total…
  28. MLP Corporate Access Day – MPLX Lp – slide 28
    Significant Capital Expenditures Major expansion projects Patoka to Catlettsburg Patoka tank farm modifications SCADA project 2013 Capex Budget(1) Maintenance Capex 16.75% of 2013 forecasted Adjusted EBITDA* Maintenance 33…
  29. MLP Corporate Access Day – MPLX Lp – slide 29
    MPLX LP Adjusted EBITDA and Distributable Cash Flow Reconciliation to Net Income Predecessor Post IPO 3 Months (MM) 10/1/12 10/30/12 10/31/12 12/31/12 Ended 12/31/12 Net income 15.8 26.3 42.1 Less: Net income attributable to…
  30. MLP Corporate Access Day – MPLX Lp – slide 30
    Crude Oil Pipeline Systems Overview 31
  31. MLP Corporate Access Day – MPLX Lp – slide 31
    Crude Oil Pipeline Systems Overview MPC Min. Diameter Length Capacity Initial Term Commitment Crude Oil Pipeline System (Inches) (miles) (MBPD)1 (Years) (MBPD) Patoka to Lima 20 / 22 302 290 10 40 Catlettsburg and Robinson 20 / 24…
  32. MLP Corporate Access Day – MPLX Lp – slide 32
    Patoka to Lima Crude System 76 miles of 20-inch pipeline extending from Patoka, IL to Martinsville, IL 226 miles of 22-inch pipeline extending from Martinsville to Lima, OH Includes related breakout tankage at Martinsville From…
  33. MLP Corporate Access Day – MPLX Lp – slide 33
    Catlettsburg and Robinson Crude System Primary pipelines supplying crude oil for MPC's Catlettsburg, KY and Robinson, IL refineries Patoka to Catlettsburg System 140 miles of 20-inch pipeline from Patoka to Owensboro, KY 266 miles…
  34. MLP Corporate Access Day – MPLX Lp – slide 34
    Detroit Crude System Samaria to Detroit 44 miles of 16-inch pipeline extending from Samaria, MI to MPC's Detroit refinery System includes a tank farm and crude oil truck offloading facility located in Samaria Current capacity of 140…
  35. MLP Corporate Access Day – MPLX Lp – slide 35
    Wood River to Patoka Crude System Wood River to Patoka System 57 miles of 22-inch pipeline extending from Wood River, IL to Patoka Current capacity of 223 MBPD Roxanna to Patoka System 58 miles of 12-inch pipeline extending from…
  36. MLP Corporate Access Day – MPLX Lp – slide 36
    Midwest Product Pipelines Overview 37
  37. MLP Corporate Access Day – MPLX Lp – slide 37
    Gulf Coast Product Pipelines Overview 38
  38. MLP Corporate Access Day – MPLX Lp – slide 38
    Product Pipeline Systems Overview MPC Min. Diameter Length Capacity Initial Term Commitment Product Pipeline System (Inches) (miles) (MBPD) (Years) (MBPD) Garyville to Zachary 20 70 389 10 300 Zachary Connect 36 2 -NA- 1 10 80 Texas…
  39. MLP Corporate Access Day – MPLX Lp – slide 39
    Garyville Products System Primary pathway for the distribution of refined products from the Garyville, LA refinery Garyville to Zachary 70 miles of 20-inch pipeline extending from MPC's Garyville refinery to either the Plantation…
  40. MLP Corporate Access Day – MPLX Lp – slide 40
    Texas City Products System Primary pathway for the distribution of refined products from MPC's Texas City refinery Texas City to Pasadena 39 miles of 16-inch pipeline extending from refineries owned by MPC, BP and Valero in Texas…
  41. MLP Corporate Access Day – MPLX Lp – slide 41
    Ohio River Pipe Line (ORPL) Products Systems System of single and bi-directional pipelines that connect MPC's Canton and Catlettsburg refineries with MPC and third-party terminals Current combined capacity of 242 MBPD Combined…
  42. MLP Corporate Access Day – MPLX Lp – slide 42
    Robinson Products System 1,173 miles of owned / leased pipelines connecting MPC's Robinson and third-party refineries and terminals in IL, KY and IN Current combined capacity of 545 MBPD Initial MPC minimum throughput commitment…
  43. MLP Corporate Access Day – MPLX Lp – slide 43
    Product Pipelines Detailed Overview Products Pipelines Associated Marathon Diameter Length Capacity Petroleum Throughput Associated Marathon System Name (inches) (miles) (MBPD) Agreement (Yes/No) Petroleum Refinery Garyville products…
  44. MLP Corporate Access Day – MPLX Lp – slide 44
    Other Major MPLX Assets MPC's commitments account for total annual revenue of 34 MM from these Other major assets Neal, W.Va., Butane Storage Cavern Capacity of 1 MMBBL with an initial 10-year term Connected to MPCs Catlettsburg, KY…
  45. MLP Corporate Access Day – MPLX Lp – slide 45
    Legal, Environmental and Regulatory Summary All pipelines are common carrier pipelines regulated by FERC Regulatory: No pending rate cases MPLX assets are subject to extensive and frequently-changing federal, state and local laws,…
  46. MLP Corporate Access Day – MPLX Lp – slide 46
    Focused and Integrated Network Refineries Marketing Area Refineries Terminals Pipelines Connecting Pipelines Light Product Terminals Asphalt Terminals Inland Water Terminals Coastal Water Terminals Inland Water…
  47. MLP Corporate Access Day – MPLX Lp – slide 47
    Marathon Petroleum Statistics at a Glance Fortune 50 company Established in 1887 4th largest U.S. refiner Largest in Midwest 2012 Revenues and other income: 82.5 billion 2012 Net income attributable to MPC: 3.39 billion…
  48. MLP Corporate Access Day – MPLX Lp – slide 48
    MPC Strategic Vision Achieve top-tier safety/environmental performance Grow enterprise value Expand platform for MPLX growth Deliver top-quartile refining performance Increase Speedway and Marathon brand assured sales volumes…
  49. MLP Corporate Access Day – MPLX Lp – slide 49
    MPC Corporate Priorities Achieve excellence in safety, environmental performance Balance and operations Maintain investment grade credit profile Customers Increase earnings and and cash flow Discipline Flexibility Shareholders…
  50. MLP Corporate Access Day – MPLX Lp – slide 50
    Responsible Care The Foundation for ALL that we do Health and Safety Profitability Investors Environmental Stewardship Honesty and Integrity Diversity Logistics Refining Stakeholder Engagement Marketing 51
  51. MLP Corporate Access Day – MPLX Lp – slide 51
    MPC's Impressive Safety and Environmental Record Safety OSHA Recordable Incident Rate Days Away Rate (Employee and Contractor History) (Employee and Contractor History) 2.00 1.00 0.97 0.90 1.00 0.73 0.80 0.50 0.50 0.45 0.61 0.45…
  52. MLP Corporate Access Day – MPLX Lp – slide 52
    MPC has Strong Earnings and Cash Flow, Investment Grade Credit Profile Financial Policies Historical Financial Summary Committed to Investment Grade profile 7,000 Rating Current 6,342 Agency MPC Rating 6,000 S&P BBB/A-2 (Stable)…
  53. MLP Corporate Access Day – MPLX Lp – slide 53
    Fully Integrated Downstream System Refining and Marketing Seven-plant refining network with 1.7 MMBPCD capacity One of the largest wholesale suppliers in our market area One of the largest producers of asphalt in the U.S. 5,000…
  54. MLP Corporate Access Day – MPLX Lp – slide 54
    MPC Relative Refining Position (MBCD) U.S. Crude Refining Capacity (1) () of U.S. Refineries (1) 3,000 15 2,097 12 11 1,950 2,000 1,808 1,699 10 7 7 7 6 981 958 955 5 5 5 1,000 755 665 5 443 3 0 0 Shell HFC BP…
  55. MLP Corporate Access Day – MPLX Lp – slide 55
    MPC Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate 62% PADD II Sour Crude 53% PADD III 47% Sweet Crude 38% 2012 As of 2/1/13 Assured Sales of Gasoline Production (Speedway + Brand + Wholesale…
  56. MLP Corporate Access Day – MPLX Lp – slide 56
    MPC EBITDA Reconciliation to Net Income (Loss) Attributable to MPC (MM) 2009 2010 2011 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Income (Loss) attributable to MPC 449 623 529 802 1,133 (75) 596 814 1,224 755 Less: Related party net interest…
  57. MLP Corporate Access Day – MPLX Lp – slide 57
    MPC Galveston Bay Asset Acquisition 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…
  58. MLP Corporate Access Day – MPLX Lp – slide 58
    Galveston Bay 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…
  59. MLP Corporate Access Day – MPLX Lp – slide 59
    MPC: Galveston Bay Marketing Assets and Integration Integrated acquisition includes Assignment of branded-jobber contracts representing 1,200 BP retail sites 61 MBPD of gasoline sales Locations primarily in FL, MS, TN and AL BP…

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