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Howard Weil Energy Conference – Marathon Petroleum Corporation

Marathon Petroleum Corporation · Mar 26, 2012 · 85 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. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 1
    Howard Weil Energy Conference March 26, 2012 1
  2. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 2
    Opening Remarks Board authorized 2 billion share repurchase Evaluating strategic alternatives for midstream assets Successful 2011 performance Strong financial position Detroit Heavy Oil Upgrade Project (DHOUP) on budget and on…
  3. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 3
    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…
  4. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 4
    MPC Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate PADD III II Sour Crude Sweet Crude 52% 48% 52% 48% PADD IIIII Sour SweetCrude Crude 1/1/12 2011 Assured Sales of Gasoline Production…
  5. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 5
    MPC Key Strengths Well Positioned Organic Growth Projects Quality assets Detroit Heavy Oil Upgrade Project (DHOUP) Attractive Midwest market Increasing distillate yield Access to favorable export markets Debottlenecking crude…
  6. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 6
    Focused and Integrated Operations Flexibility and integration advantage: Integrated six-refinery system One of the largest domestic Petroleum pipeline networks based on volume moved Terminal operators Asphalt producers Private…
  7. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 7
    Fully Integrated Downstream System Refining and Marketing Six-plant refining network with 1,193,000 barrels per calendar day of crude oil refining capacity One of the largest wholesale suppliers of gasoline and distillate within our…
  8. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 8
    2011 Refinery Throughput and Consolidated Sales Crude Saleable Throughput Product Sales 1,177 MBPD 1,602 MBPD 24.5 B GAL Foreign Term Gasoline Speedway 23% 921 12% Distillate Marathon Brand U.S./Canadian 468 17% Term 51%…
  9. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 9
    MPC Relative Refining Position (MBPCD) U.S. Crude Refining Capacity (1) () of U.S. Refineries (1) 3,000 15 2,097 12 12 1,950 2,000 1,840 10 1,410 7 7 1,193 6 6 6 955 5 1,000 843 755 665 5 3 330 1 0 0 BP Tesoro…
  10. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 10
    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 1.37 0.97 0.90 1.00 0.73 0.80 0.50 0.50 0.45 0.61 0.45…
  11. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 11
    Garyville Major Expansion (GME) Project Garyville, LA refinery is last grassroots refinery built in the U.S. (1976) Base Garyville refinery, 2008 Solomon survey Best U.S. cash cost operating expense Second-best U.S. Energy…
  12. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 12
    Garyville: World-class Refinery Worldwide Options Blue Water Logistics New dock increased capacity by 40% Europe Supply Florida while increasing exports In addition to products, supports opportunity crudes, feedstocks and…
  13. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 13
    Attractive Midwest/PADD II Demand exceeds refining capacity in PADD II PADD IV Imported 17% of petroleum demand PADD V PADD II PADD I into PADD II from PADD III in 2011 Enhances margin opportunities Transportation premium embedded…
  14. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 14
    Canada CAPP Western Canada Crude Supply Forecast Annual Growth from 2010 - 2025 MBPD Light Supply 16 6,000 Heavy Supply 154 5,000 4,000 MBPD 3,000 2,000 1,000 0 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025…
  15. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 15
    MPC Well Positioned to Capture Oil Sands Economics Advantaged Location Should Lead to Higher Relative Profitability Hardisty 5.50/BBL Hardisty to 7.35/BBL Detroit Hardisty to USGC Detroit Value vs. USGC Refineries Chicago…
  16. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 16
    Detroit Heavy Oil Upgrade Project Scope Increases heavy oil capacity an additional 80,000 BPCD; including difficult to process Canadian crudes 28,000 BPCD delayed Coker 36,000 BPCD Distillate Hydrotreater (DHT) Crude capacity…
  17. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 17
    Options 2 1 Detroit Logistics 2 Enbridge Enbridge Canadian crude via multiple routes Stockbridge Virtually all world Detroit crudes available via Chicago Samaria pipelines from USGC Lima All gasoline production sold in…
  18. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 18
    Strategy Maximize Price-Advantaged Crude Oil Canada Bakken Shale Utica Shale Cushing WTI Eagle Ford Shale Garyville Opportunity Crude Oils Multiple Opportunities 19
  19. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 19
    Utica Shale Canton/Midwest Opportunity Ohio Department of Natural Resources estimates 1.3 to 5.5 billion barrels of recoverable oil Canton and Catlettsburg refineries are both ideally located MPC has other infrastructure…
  20. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 20
    Utica Shale Capacity to Receive Crude Oil/Condensate by Truck Canton Canton Available now: Temporary truck rack 1,000 BPD Available end of 2Q 2012: Permanent truck rack 12,000 BPD Truck to Canton Expandable to 24,000 BPD…
  21. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 21
    Utica Shale Conceptual Planning for Growth Truck to barge Canton Pipeline gathering Wellsville Steubenville Gathering System to Canton Barge to Catlettsburg MPC Refinery MPC Terminal MPC Pipeline Barge to…
  22. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 22
    MPC's Logistical Assets vs. Peers Sunoco/ MPC's Midwest Refined Products Logistics System MPC Valero Tesoro Sun Logistics(a) Pipeline Volume 2,215 259 132 1,449 (MBPD) * Pipeline Miles * 3,749 676 868 5,336 Terminals 83 N.R.…
  23. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 23
    Extensive Retail Network 82 63 Speedway 81 301 Fourth largest U.S.-owned/ 779 operated c-store chain Speedway 108 237 471 24 1,375 stores Brand 439 652 871 60 1 2 million customers/day 131 99 138 599 Located in seven states 172…
  24. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 24
    Benefits of Retail Integration Ratable sales Optimized operations Refining Pipeline Terminal Biofuels blending base load Supply dislocation flexibility Reduced credit risk (Speedway) Fully Integrated Downstream Business…
  25. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 25
    Speedway vs. Public Peers - 2011 300 Light Product Sales Independent Refiners Average 157.1 M Gal/Store/Month 250 200 179.4 Public C-Store 150 Average 96.7 100 50 0 Casey's Couche-Tard Pantry Susser Speedway Valero Murphy…
  26. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 26
    Speedway vs. Public Peers - 2011 Merchandise Sales 200 178.5 Independent Refiners Public C-Store Average 95.4 M/Store/Month 150 Average 109.7 100 50 0 Casey's Couche-Tard Pantry Susser Speedway Valero Murphy Sunoco Tesoro…
  27. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 27
    Speedway Sales and Margin 4 Light Product Volume 600 Light Product Gross Margin 3.22 3.23 3.30 2.94 434 3 398 384 B Gallons Millions 400 333 2 200 1 (4.7) 1.0 3.7 (1.2) 13.50 10.30 12.07 13.08 0 0 2008 2009 2010 2011 2008…
  28. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 28
    Diversified Income Stream 2009 Segment Income 2010 Segment Income from Operations from Operations Pipeline Transportation Pipeline Transportation 172 MM Refining & 183 MM 21% Marketing 14% 452 MM 54% Refining & Marketing…
  29. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 29
    Pre-Tax Adjusted Domestic Operating Income per Barrel of Crude Oil Throughput 15 MPC Group Range 10 /BBL 5 0 -5 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Preliminary MPCs Rank 3 3 2 1 2 3 7…
  30. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 30
    Strategic Performance - 2011 Completed successful spin-off from Marathon Oil Corporation Completed financing at separation Established strong balance sheet Increased quarterly dividend Produced strong operating income per barrel of…
  31. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 31
    Strategic Direction - 2012 Complete Detroit Heavy Oil Upgrade Project Continue to optimize Garyville Pursue price advantaged crude projects Initiate organic value-adding projects Grow Speedway and Brand sales volume Consider…
  32. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 32
    Appendix 33
  33. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 33
    Net Income 2011 and 4Q 2011 (305) MM 1,766 MM 4Q 2011 4Q 2010 2011 2010 Net Income (Loss) (75) MM 230 MM 2,389 MM 623 MM Net Income (Loss) per Diluted Share (0.21) 0.64 6.67 1.74 Net Income (Loss) Net Income (Loss) per Diluted…
  34. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 34
    Net Income 4Q 2011 vs. 4Q 2010 Variance Analysis 600 400 230 (485) 200 Millions (75) 0 236 -200 8 (14) (50) -400 -600 4Q 2010 Refining & Speedway Pipeline Interest & Income Taxes 4Q 2011 Marketing Transportation…
  35. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 35
    Refining & Marketing Segment Income 4Q 2011 vs. 4Q 2010 Variance Analysis 600 400 303 (66) (492) 428 200 (154) Millions (93) (182) 0 (6) (120) 18 -200 -400 -600 *Based on market indicators using actual volumes 36
  36. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 36
    Refining & Marketing Segment Income 2011 vs. 2010 Variance Analysis 4,000 359 (68) 3,591 248 1,685 34 (93) 3,000 Millions 2,000 277 349 1,000 800 0 *Based on market indicators using actual volumes 37
  37. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 37
    Speedway Segment Income Variance Analysis 4Q 2011 vs. 4Q 2010 2011 vs. 2010 100 400 11 (8) 26 (33) 80 14 73 293* (45) 30 65* (9) 300 271 60 Millions Millions 200 40 100 20 0 0 * Includes 166 convenience stores…
  38. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 38
    Pipeline Transportation Segment Income Variance Analysis 4Q 2011 vs. 4Q 2010 2011 vs. 2010 80 300 60 52 (8) 17 1 199 200 183 (22) 20 (6) Millions Millions 40 38 100 20 0 0 39
  39. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 39
    Total Company Cash Flow 4Q 2011 4,000 657 (344) (223) 121 (89) 3,079 2,957 3,000 Millions 2,000 1,000 0 09/30/11 Operating Working Cash Capital Pension Dividends Paid 12/31/11 Cash Cash Flow Capital Expenditures…
  40. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 40
    Select Balance Sheet/Cash Flow Data (MM) 2011 2011 2011 2Q 3Q 4Q As of quarter ended: Total debt 3,274 3,299 3,307 Cash and cash equivalents 1,622 2,957 3,079 Debt minus cash 1,652 342 228 Stockholders equity 8,977 10,049…
  41. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 41
    1Q 2012 Outlook (MM) Projected 1Q 2012 1Q 2011 Crude throughput 1.2 MMBPD 1.1 MMBPD Total throughput 1.3 MMBPD 1.3 MMBPD Percent of WTI-priced crude 31% 25% Direct operating costs in Refining & Marketing gross margin*: Planned…
  42. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 42
    Income (MM unless otherwise noted) 2010 2011 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Refining & Marketing segment income (445) 590 352 303 800 802 1,260 1,711 (182) 3,591 (loss) Speedway segment income 40 83 105 65 293 33 80 85 73 271…
  43. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 43
    EBITDA Reconciliation to Net Income (MM) Last 12 months ended Year Ended 12/31/11 9/30/11 6/30/11 2011 2010 2009 Net Income (Loss) 2,389 2,694 1,838 2,389 623 449 Less: Related Party net interest and other financial income 35 48 50 35…
  44. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 44
    Capital Expenditures & Investments (MM) 2011 Budget 4Q 2011 2011 2012 Budget Refining & Marketing 975 300 900 745 Speedway 145 43 164 353 Pipeline Transportation 102 52 121 230 Corporate and Other 22 6 24 91 Subtotal 1,244 401 1,209…
  45. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 45
    MPC Crude Slate 100% 90% 21 23 22 24 23 31 80% Other Sweet 70% 60% Other Sour 56 52 52 49 48 50% 48 WTI Based 40% 30% 20% 25 26 27 29 10% 21 23 0% 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 46
  46. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 46
    Annual Price and Margin Sensitivities Millions (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity 300 (per 1.00/barrel change) Sweet/Sour Differential** Sensitivity 150 (per 1.00/barrel change) LLS-WTI Spread*** Sensitivity 65…
  47. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 47
    MPC Strong Credit Profile and Liquidity Historical Financial Summary Financial Policies MM Year Ended Committed to Investment Grade profile 2011 2010 2009 2008 Rating Current Total Revenues and Other Income 78,759 62,605 45,639…
  48. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 48
    MPC Financing Structure 3 billion in long-term debt 750 million 5-year notes, 3.5% 1 billion 10-year notes, 5.125 % 1.25 billion 30-year notes, 6.5% 2 billion new 4-year revolving credit facility 1 billion 3-year trade receivables…
  49. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 49
    2012 Capital Spending Allocation* Environmental Regulatory Programs 3% Safety and Security 2% 8% Operating/Process Improvements 9% Capital Expansion/Growth/ Replacements Major Projects 12% 55% Other Refining and…
  50. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 50
    U.S. Distillate Exports Continue to Grow U.S. distillate exports continue U.S. Distillate Export Growth to reach record levels, 900 Central & South America exceeding 1 MMBPD in 800 Mexico 700 October 2011. Netherlands 600 Other…
  51. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 51
    U.S. Net Product Exports 2,000 1,500 EXPORTS ROSE IN NOVEMBER 1,000 BUT IMPORTS INCREASED MBPD 500 MORE - (500) (1,000) (1,500) Includes all petroleum except crude oil and unfinished oils Source: U.S. Energy…
  52. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 52
    Market View Key Market Drivers MPC Outlook Economy Slow but double-dip recession unlikely Demand Growth Distillate demand continues to lead Crude Oil Supply Peak oil - not on the horizon Global Refining Capacity Modernization…
  53. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 53
    Refining: Refinery Unit and Production Capacity (1) Garyville, Louisiana BPCD Unless Noted Garyville Crude 490,000 Vacuum Distillation 254,000 Coking 82,700 Catalytic Cracking 134,000 Catalytic Reforming 114,500 Catalytic Hydrocracking…
  54. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 54
    Refining: Refinery Unit and Production Capacity (1) Catlettsburg, Kentucky BPCD Unless Noted Catlettsburg Crude 233,000 Vacuum Distillation 113,000 Coking Catalytic Cracking 98,800 Catalytic Reforming 49,900 Catalytic Hydrocracking…
  55. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 55
    Refining: Refinery Unit and Production Capacity (1) Robinson, Illinois BPCD Unless Noted Robinson Crude 206,000 Vacuum Distillation 68,000 Coking 27,600 Catalytic Cracking 51,800 Catalytic Reforming 76,000 Catalytic Hydrocracking 27,100…
  56. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 56
    Refining: Refinery Unit and Production Capacity (1) Detroit, Michigan BPCD Unless Noted Detroit Crude 106,000 Vacuum Distillation 52,300 Coking Catalytic Cracking 30,900 Catalytic Reforming 20,400 Catalytic Hydrocracking Catalytic…
  57. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 57
    Refining: Refinery Unit and Production Capacity (1) Texas City, Texas BPCD Unless Noted Texas City Crude 80,000 Vacuum Distillation Coking Catalytic Cracking 55,600 Catalytic Reforming 10,500 Catalytic Hydrocracking Catalytic…
  58. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 58
    Refining: Refinery Unit and Production Capacity (1) Canton, Ohio BPCD Unless Noted Canton Crude 78,000 Vacuum Distillation 33,300 Coking Catalytic Cracking 24,700 Catalytic Reforming 20,400 Catalytic Hydrocracking Catalytic…
  59. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 59
    Garyville Diesel Projects Scope Modify Crude Unit, Hydrocracker and Distillate Hydrotreaters Strategic Focus Increase finished ULSD production from gas oil Investment: 250 million over four years Estimated incremental annual…
  60. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 60
    Garyville Gasoline and Diesel Export Scope Add gasoline export tank and expand diesel loading capacity to docks Strategic Focus Increase export capability Investment: 40 million Estimated incremental annual EBITDA based on:…
  61. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 61
    Catlettsburg No. 5 Vacuum Cut-point Improvement Scope Modify No. 5 Crude Unit during the 2014 turnaround Strategic Focus Improve gas oil recovery and reduce purchased feedstocks Investment: 100 million over four years Estimated…
  62. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 62
    Robinson Unicracker Revamp Scope Convert Hydrocracker to improve yields Strategic Focus Take advantage of favorable diesel value over gasoline Investment: 75 million over four years Estimated incremental annual EBITDA based on:…
  63. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 63
    Distillate Production Profile 500 40% 450 38% 400 36% Distillate production MBPCD Distillate volume % of crude 350 34% 300 32% 250 30% 200 28% 150 26% 100 24% 50 22% 0 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  64. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 64
    Diesel Production Profile (Excludes Kerosene and Jet Fuel) 500 40% 450 38% 400 36% Diesel volume % of crude Diesel production MBPCD 350 34% 300 32% 250 30% 200 28% 150 26% 100 24% 50 22% 0 20% 2003 2004 2005 2006…
  65. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 65
    Lower 48 States Shale Plays Patoka Cushing MPC Refineries 66
  66. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 66
    Canadian Crude Shipment Capacity Edmonton Trans Hardisty Mountain Burnaby Anacortes Regina Cromer Enbridge PL Clearbrook Superior Montreal Portland Sarnia Salt Lake City Casper Flanagan Chicago Chicap Mustang Steele City…
  67. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 67
    MPC Tactical Options Canada Keystone Pipeline Key Facts Owner TransCanada Origin Hardisty Destination Wood River, Patoka, Illinois and Cushing, Oklahoma Diameter 30 to Patoka; 36 from Steele City to Cushing Distance 2,148 Miles…
  68. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 68
    MPC Tactical Options Canada Keystone XL Pipeline Key Facts Owner TransCanada Origin Hardisty Destination Port Arthur/Houston Diameter 36 Distance 1,980 Miles Capital 7.8 Billion Status Estimated completion Cushing to USGC End…
  69. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 69
    Cushing Fundamentals What May Impact the Brent/WTI Spread KEYSTONE 590 Seaway Reversal Initial Capacity: 150 MBPD June 1, 2012 Increase to: 400 MBPD 2Q 2013 KEYSTONE Keystone XL - Cushing to Gulf Coast 700 Estimated Completion:…
  70. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 70
    Bakken Shale Indicative Rail Costs Bakken to East Coast Bakken Indicative Rail Costs (/BBL) Gathering 2.25 Truck Transport 3.00 Railcar Loading 1.50 Rail Transportation 7.50 Railcar Lease 1.00 Railcar Unloading 1.00…
  71. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 71
    Bakken Shale Indicative Rail Costs Bakken to St. James Bakken Indicative Rail Costs (/BBL) Gathering 2.25 Truck Transport 3.00 Railcar Loading 1.50 Rail Transportation 7.50 Railcar Lease 1.00 St. James Railcar Unloading…
  72. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 72
    Eagle Ford Shale Indicative Barge Costs - South Texas to East Coast Indicative Barge Costs (/BBL) Trucking to Pipeline Hub 3.00 Pipeline to Houston 1.50 Barge Loading Fee .75 Barge Transportation 10.00 Total 15.25 Source:…
  73. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 73
    Bakken Shale Midwest Refineries Opportunity Williston Basin Production: 610 MBPD Williston Basin North Dakota: 465 MBPD 2010 Year-end: 344 MBPD Canada 2009 Year-end: 242 MBPD 2008 Year-end: 202 MBPD 2005 Year-end: 104 MBPD…
  74. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 74
    Eagle Ford Shale Texas City Refinery Opportunity Eagle Ford is a very light (40-50 API), sweet crude (0.2% sulfur) Currently being trucked to markets Pipelines are being built Dock facilities are being built as well to make it a…
  75. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 75
    Garyville Opportunity Crudes NEW CRUDES PROCESSED IN 2011 Russia API Vac Canada Crude Origin Gravity Sulfur TAN Resid % Access Western Canada 21.8 4.04 2.3 38.3 Blend USA Iraq Kuwait Albian Muskeg Canada 21.6 3.81 1.6 36.0…
  76. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 76
    Refined Product and Crude Spreads 16.00 8.00 14.00 ULSD-LLS (left scale) 7.00 12.00 LLS-Mars (right scale) 6.00 10.00 5.00 ULSD-LLS LLS-Mars 8.00 4.00 6.00 3.00 4.00 2.00 SPR SALE DISTORTED CRUDE SPREADS 2.00 1.00 0.00…
  77. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 77
    Midstream Integration and Flexibility Pipeline and barge logistics Focused on optimal refinery crude supply and product placement Destination choice in product markets Efficiency, flexibility, speed Terminal network Critical…
  78. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 78
    Convenience Store Industry Profile 13% 146,341 c-stores in the U.S. (117,297 sell fuel) 5% Midwest - 22,563 c-stores 6% Southeast - 36,273 c-stores 13% 63% Highly fragmented 2010 total sales - 575.6 billion Average monthly sales /…
  79. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 79
    Speedy Rewards Loyalty Program 4 Increasing Membership Active Members (MM) 3 2 1 2005 2006 2007 2008 2009 2010 2011 Industry-leading loyalty program Customers earn points on every purchase Customers redeem points for free…
  80. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 80
    Speedway Brand Value 7.0 6.0 6.0 Record contributions to 5.0 5.6 4.0 Millions 4.5 Childrens Miracle 3.0 Network 2.0 3.0 1.0 1.6 0.0 2007 2008 2009 2010 2011 Top Retail Gasoline Brand in the U.S. for past 3 consecutive…
  81. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 81
    Brand Overview 5,000 Light Product Sales Consistent Growth Vehicle 4,000 Millions of Gallons 3,000 163 million net new gallons in 2011 2,000 2011 gasoline sales volume up 3.6% 1,000 2011 distillate sales volume up 6.5% 0…
  82. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 82
    Pipeline Transportation Segment Revenue Generated from Third Parties 100% 80% 60% 40% 20% 16% 10% 12% 12% 12% 0% 2007 2008 2009 2010 2011 83
  83. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 83
    Experienced Board of Directors Name Title Evan Bayh Former Senator from and Governor of Indiana David A. Daberko* Former Chairman and CEO National City Corporation William L. Davis* Former Chairman and CEO RR Donnelly & Co Gary R.…
  84. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 84
    Experienced Management Team Experienced Team with Extensive Industry Experience Years of Name Service* Title Gary R. Heminger 37 President and Chief Executive Officer Pamela K. M. Beall 16 Vice President Investor Relations and Gov. &…
  85. Howard Weil Energy Conference – Marathon Petroleum Corporation – slide 85
    Market Indicators Used in Project EBITDA Calculations 2011 2006 - 2010 West Texas Intermediate 3-2-1 crack spread 23.31 10.68 Light Louisiana Sweet 3-2-1 crack spread 6.05 8.05 Arab Light 3-2-1 crack spread 11.16 14.03 Arab Medium…

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