Key Investment Highlights Announced plans to substantially accelerate the growth of MPLX Accelerated growth supports significant increase in distribution growth rate Substantial portfolio of MLP-qualifying assets held by sponsor…
Substantial Acceleration of MPLX Acquired additional 30.5% interest in MPLX Pipe Line Holdings on December 1, 2014 for 800 MM (represents 10.0x multiple of NTM EBITDA) MPC has offered to sell marine assets to MPLX Distributable cash…
Marine Business Overview Fully Integrated Marine Transportation and Service Provider Marine Transportation Premier inland service provider with best-in-class assets 18 towboats and 203 tank barges moving light products, heavy oils,…
Substantial Acceleration of MPLX Adjusted EBITDA Attributable to MPLX 500 450 Evolve MPLX into large-cap, diversified logistics MLP 400 450 MM of run-rate Adjusted EBITDA by 300 257 end of 2015 MM 200 Annual LP…
Strategic Relationship with Sponsor Marathon Petroleum Fortune 25 company Investment grade credit profile Fourth largest U.S. refiner Largest in Midwest 2014 Revenues and other income: 98.1 B 2014 Net income attributable to MPC:…
MPCs Focused and Integrated Network Marketing Area Refineries Biodiesel/Ethanol Facilities MPC Refineries Light Product Terminals MPC owned and Part-owned Third Party Asphalt/Heavy Oil Terminals MPC Owned Third Party Water…
MPC and MPLX Strategically Located Assets Strategically located near Bakken Williston emerging shale plays Basin Appalachian Marcellus, Utica, New Albany, Michigan Antrim Basin Basin Devonian (Ohio) Antrim, and Illinois Basin…
MPLX Assets are Integral to MPC 10
Other Major MPLX Assets Pipeline Tank Farm Storage Assets Both crude oil and products located in Patoka, Wood River and Martinsville, IL and Lebanon, IN Approximately 3.3 MM barrels of available capacity Wood River, IL Barge Dock…
High-quality, Well-maintained Asset Base Certifications, Initiatives and Industry Partnerships MPLX continually invests in the maintenance and integrity of its assets Uses a patented integrity management program to enhance pipeline…
Significant Capital Plan 2015 Capital Plan 260 MM Major growth projects Maintenance Cornerstone Pipeline and Utica build-out 38 MM Patoka to Lima capacity expansion Robinson butane cavern Maintenance capital 16% of 2014…
Stable and Predictable Cash Flows 2014 Revenue Customer Mix MPLXs assets consist of fee-based pipeline 9% systems and storage assets 48 20% MM 112 Minimal commodity exposurec MM MPC has historically accounted for over 85% 388…
MPCs Currently Identified Eligible MLP EBITDA Sources of 1.6 B Retained by MPC 5,400 miles of additional crude and products pipelines Owns, leases or has an ownership interest in these pipelines Pipelines 0.5% of MPLX Pipe Line…
MPC Investing in Significant Growth Projects North Dakota System (Sandpiper) Logistics equity investment MPC Length, size: 610 Mile, 24/30 + North Dakota Classic System and Bakken Pipeline U.S. Canadian Capacity: 580 MBD In-Service:…
MPC Investing in Significant Growth Projects Southern Access Extension (SAX) Logistics equity investment MPC Length, size: 165 Mile, 24 Capacity: 300 MBD Canadian In-Service: Late 2015 MPC Investment: 305 MM MPC Equity: 35% Bakken…
MPLX/MPC Utica Build-Out Connectivity 18
MPLX Developing a Comprehensive Utica System Cornerstone Pipeline and Additional Opportunities Industry solution, 16-inch pipeline connecting Utica Shale region to East Sparta, Ohio, tank farm 250MM capital investment Includes tank…
MPLX Strong Financial Flexibility to Manage and Grow Asset Base As of (MM except ratio data) 3/31/15 Cash and cash equivalents 132.5 Total assets 1,354.0 Long-term debt(a) 757.8 Total equity 476.0 Consolidated total debt to…
Distribution Growth per Unit IPO 1st acquisition 2nd acquisition 3rd acquisition 10/31/12 5/1/13 100 MM 3/1/14 310 MM 12/1/14 800 MM 0.44 21.9% CAGR over MQD 0.42 0.40 0.38 0.36 0.34 /Unit 0.32 0.30 0.4100 0.3825 0.28…
Our Priorities for Investors Maintain Safe and Reliable 90 Operations 80 Sustain Long-term Unit Price Distribution Growth; Mid 20% for 70 the Next Five Years 60 Focus on Fee-Based Businesses 50 40 IPO Pursue Organic Growth…
Appendix 23
MPC Drop-down Strategy Considerations MPC created MPLX to grow midstream business and create a funding mechanism for strategic opportunities MPLX investors highly value a consistent, long-term growth strategy Committed to significant…
Net Income 1Q 2015 vs. 1Q 2014 Variance Analysis 60 55.7 5.8 1.1 (1.2) 50 (2.8) (6.7) 45.9 45.6 (4.7) (1.3) (0.3) 40 MM 30 20 10 0 1Q 2014 Deferred Transportation Other Cost of G&A Interest and Other 1Q 2015 1Q 2015…
Deficiency Payment Effect Example For illustrative purposes only Quarter Quarter Quarter Quarter Quarter Quarter Quarter (MM) 1 2 3 4 5 6 7 Quarterly deficiency payment 2 5 3 5 - - - Use or expiration of credit (on or before) - -…
MPLX and MPC are Aligned MPLX Organizational Structure Marathon Petroleum Corporation and Affiliates MPC views MPLX as integral to its (NYSE: MPC) operations and is aligned with its 100.0% ownership 69.5% Public success and…
Incentive Distribution Rights 1Q 2015 distribution of 0.4100/unit is in top tier of IDRs 29
Crude Oil Pipeline Systems Overview MPC Min. Diameter Length Capacity Initial Term Commitment Crude Oil Pipeline System (Inches) (Miles) (MBPD)a (Years) (MBPD) Patoka to Lima 20 / 22 302 249 10 40 Catlettsburg and Robinson 20 / 24…
Crude Oil Pipeline Systems Overview 31
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…
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…
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 117…
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 215 MBPD Roxanna to Patoka System 58 miles of 12-inch pipeline extending from…
Midwest Product Pipelines Overview 36
Gulf Coast Product Pipelines Overview 37
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- a 10 80 Texas…
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…
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 and third parties in Texas…
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 244 MBPD MPC minimum…
Robinson Products System 1,171 miles of owned/leased pipelines connecting MPC's Robinson and third-party refineries and terminals in IL, KY and IN Current combined capacity of 548 MBPD Initial MPC minimum throughput commitment term…
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 Neal Butane Cavern Connected to…
Capital Expenditures & Investments (MM) MPC 2015 Budget 1Q 2015 Refining & Marketing (R&M) 1,042 182 Midstream included in R&M 234 47 Speedway 452 45 Pipeline Transportation* 659 81 Corporate and Other 140 21 Total Capital…
MPCs Fully Integrated Downstream System Refining and Marketing Seven-plant refining system with 1.7 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market…
MPC 2015 Value Drivers Top-tier safety and environmental performance Accelerate growth of Midstream/MPLX Capital return to shareholders Strong and growing dividend Share repurchase program Speedway Hess integration Increasing…
MPC Focused Return of Capital to Shareholders LTM Ended 3/31/15 8,000 7,000 6,000 2,772 Hess Retail Acquisition 5,000 Dividends and share MM repurchases 1.6x of 4,000 Dividends and share Adj. Free Cash Flow***…
MPC Performing Consistently in the Top Tier Engine behind MPCs focus on capital returns Operating Income Per Barrel of Crude Throughput** 20 MPCs Rank 15 Competitor Range 1 2 10 /BBL 2 5 1 3 1 2 5 2 7 3 3 3 3 3 1 2…
MPC Growing Higher Valued and Stable Cash-Flow Businesses Historical Mid-Cycle EBITDA* Future Mid-Cycle EBITDA Midstream Pipeline Transportation Speedway Speedway A More Diversified Portfolio R&M R&M *2007-2014 average.…
MPC Allocating Capital to Higher Valued Businesses 2012 2015 Capital Investment Profile 3,000 2,500 2,000 MM 1,500 1,000 500 0 2012 2013 2014 2015E Refining & Marketing, excluding Midstream Midstream Pipeline…
Growing Global Product Demand Compounded Annual 120 Growth Rates Actual Forecast 2030 vs. 2014 100 +1.2% Other Distillate and gasoline 80 Other -1.1% Fuel Oil demand continues to Fuel Oil MMBD 60 rise Distillate +1.3%…
U.S. Refined Product Demand Compounded Annual 10 Growth Rates 9 Actual Forecast 2020 vs. 2014 Distillate demand -0.3% 8 Gasoline growth outpaces other -0.5% 7 Gasoline ex ethanol products 6 Gasoline will be MMBD 5…
MPC Capitalizing on Global Growth in Diesel Demand Distillate Production 700 600 Garyville +35 MBD ULSD in 2014-16 MBD 500 232 MM investment 400 300 45% ROI 2012 2013 2014 2015E 2016E 2017E Galveston Bay +9 MBD ULSD in…
Sustaining U.S. Refining Advantage 20 International Fuel Cost Comparison 15 /MMBtu 10 5 0 Henry Hub (NYMEX prompt price) European Natural Gas (Avg Import Border Price)* Japanese Liquefied Natural Gas (Import Price)*…
U.S. Gross Refined Product Exports Increasing 4.0 3.5 Gasolines 3.0 Kero-Jet Diesels 2.5 MMBD Product Exports 2.0 1.5 1.0 0.5 0.0 Source: U.S. Energy Information Administration 57
MPC Growing Gulf Coast Export Capabilities Export investments totaling 120 MM Added new 500,000 barrel export tank Export Capacity 600 at Garyville in 2013 510 500 Galveston Bay in 2015 395 +30 MBD ULSD 400 345 320 MBD 40%…
Rising North American Crude & NGLs Production 25 2014 Actual Forecast 20 Canada 15 MMBD 10 5 U.S. 0 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Sources: EIA, CAPP, MPC 60
Growing Crude Oil Supply 1,800 2014 5,000 2014 150 2014 1,500 North Dakota Texas 125 Ohio 4,000 1,200 100 3,000 MBD MBD 900 75 MBD 2,000 600 50 300 1,000 25 Actual Forecast Actual Forecast Actual Forecast 0 0 0…
Refining Capacity in Advantaged Regions 100% in PADDs II and III Canadian Bakken 100% Utica 80% PADD IV PADD II 60% PADD V 40% PADD I 20% 0% PADD III MPC VLO HFC PSX TSO PADD II PADD III PADD I PADD IV PADD V Permian Basin…
Compelling Advantage for Pipeline and Marine All costs shown as /BBL Pipeline costs exclude any storage or transfer fees and line loss Sources: MPC, publicly available information 63
U.S./Canada Key Existing and Planned Pipelines In Service MBPD Pipeline Date 300 Line 9 Reversal 2015 300 SAX 2015 200 Diamond 2016 450 Dakota Access 2016 450 ETCO 2016 (Trunkline Conversion) 225-375 Sandpiper 2017 300…
MPC Balance in Refining Network Canton (Ohio) 90,000 Catlettsburg (Ky.) 242,000 Midwest Capacity Detroit (Mich.) 130,000 674,000 BPCD Robinson (Ill.) 212,000 Galveston Bay 451,000 (Texas) Texas City (Texas) 84,000 Garyville…
MPC Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate 61% PADD II 56% Sour Crude PADD III 44% Sweet Crude 39% As of March 31, 2015 1Q 2015 Assured Sales of Gasoline Production (Speedway + Brand +…
MPC Increasing Light Sweet Crude and Condensate Capacity Condensate splitters Condensate Processing Opportunity Canton: 25 MBD Light Naphtha to Gasoline Blending Completed 4Q 2014 Ultra-Sweet New Heavy Naphtha to Reforming…
MPC Leveraging Existing Capacity to Run Light Sweet Crude 30 Reforming Capacity % of Crude Capacity 25 44% sweet crude oil throughput in 1Q 20 Industry 2015 versus 68% sweet crude oil capacity Average 15 Reformer capacity…
Galveston Bay Driving Value Integration with Texas City refinery Revamp crude and vacuum units Optimize for future crude availability Improve distillate recovery Add hydrotreating capacity Move to 100% ULSD Idle the smallest and…
Speedway Value Total Gross Margin Mix 2011-2014 Average Top-tier performance in the convenience store industry Light Scalable technology and Product organizational infrastructure 37% Merchandise Disciplined expense control 63%…
MPC Acquisition of Hess Retail Transaction Overview Hess retail acquisition included: 1,245 company operated locations Transport fleet with capacity to transport 1 B gal/yr. Pipeline shipper history in various pipelines, including…
Conversion Plans for Former Hess Stores 2014-2017 Conversion to Speedway: 181 MM 500 Stores Remodel Capital: 240 MM by Dec. 2015 495 Stores by Dec. 2016 250 Stores by March 2015 73
Transformative Transaction for MPC and Speedway Accelerates strategy to grow higher valued and stable cash-flow businesses Provides larger integrated platform for growth in new markets Meaningfully expands scale and provides…
Enhances Strategic Value for MPCs Integrated System Refined Product Placement Opportunities Incremental 200 MBPD of refined products placement capacity, increases assured gasoline sales Incremental supply of MPC Gulf Coast refined…
Synergies and Marketing Enhancements Will Drive Value for MPC 400 Earnings Opportunities 70 300 45 Operating and G&A expense MM 40 200 35 365 100 175 synergies of 75 MM 0 2013 Pro Forma Hess Form 10 WilcoHess Operating…
Focus on Improving Light Product Breakeven 13 12.39 11 Each 1.00 cent per gallon improvement Light Product Breakeven (cpg) 9 = 30 MM annual pretax earnings Total Expenses 7 7.13 LPBE = Merchandise Margin Light Product…
Speedway and Hess Side-by-Side Comparison Hessa Speedwayb Company Operated Sites 1,255 1,478 Fuel Sales Speedway generates an incremental 198,500 177,400 (gallons/store/month) 17,300 of merchandise margin per Fuel Margin 0.137…
MPLX Adjusted EBITDA Reconciliation from Net Income 1Q 2015 Dec. 2015 (MM) 2013 2014 Annualized Annualized Net income 146 178 184 305 Less: Net income attributable to MPC- 68 57 1 1 retainretained interest Net income attributable…
MPLX Adjusted EBITDA and Distributable Cash Flow Reconciliation from Net Income (MM) 4Q 2012* 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Net income 26.3 35.3 34.8 39.2 36.8 55.7 42.9 43.1 36.4 45.9 Less: Net…
MPC EBITDA Reconciliation to Net Income Attributable to MPC 2007 2008 2009 2010 2011 2012 2013 2014 2015 (MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Net income attributable to MPC 2,262 1,215 449 623 2,389 3,389 725 593 168 626 199 855 672 798…
Reconciliation MPC Adjusted Free Cash Flow to Net Cash Provided by Operations (MM) 2014 2015 (For the Quarter) 2Q 3Q 4Q 1Q Net cash provided by operating activities 878 1,078 388 1,190 Additions to property, plant and equipment…
EBITDA Reconciliation to Net Income for Hess (MM) 2013* 2017E Net Income 47 138 Less: Net interest and other financial income (costs) (12) - Add: Provision for income taxes 22 78 Add: Depreciation and amortization 94 149 EBITDA…
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