Key Investment Highlights Announced transformative combination with MarkWest Energy Partners, L.P. Affirmed anticipated distribution growth of 29 percent in 2015, expects 25 percent compound annual LP distribution growth for combined…
Substantial Acceleration of MPLX Acquired additional 30.5 percent interest in MPLX Pipe Line Holdings on December 1, 2014 for 800 MM (represents 10.0x multiple of NTM EBITDA) Announced MPLX/MarkWest combination creates a very…
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 Refineries Biodiesel/Ethanol Facilities Marketing Area MPC Refineries Light Product Terminals Terminals Pipelines MPC owned and Part-owned Third Party Asphalt/Heavy Oil Terminals MPC…
MPCs Currently Identified Eligible MLP EBITDA 1.6 B and growing 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 Drop-down Strategy Considerations Committed to significant acceleration of MPLXs annual LP distribution growth rate Affirmed anticipated distribution growth of 29 percent in 2015, expects 25 percent compound annual LP…
MPC and MPLX Strategically Located Assets Strategically located near emerging Bakken Williston shale plays Basin Marcellus, Utica, New Albany, Antrim, Appalachian Basin Michigan Antrim and Illinois Basin in Pennsylvania,…
MPLX Assets are Integral to MPC 11
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…
Significant Capital Plan 2015 Capital Plan 260 MM Major growth projects Maintenance 38 MM Cornerstone Pipeline and Utica build-out Patoka to Lima capacity expansion Robinson butane cavern Maintenance capital 16% of 2014…
Stable and Predictable Cash Flows MPLXs assets consist of fee-based 2014 Revenue Customer Mix pipeline systems and storage assets 9% 48 Minimal commodity exposurec 20% MM 112 MPC has historically accounted for over MM 85% of the…
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. Capacity: 580 MBD In-Service: 2017…
MPC Investing in Significant Growth Projects Southern Access Extension (SAX) Logistics equity investment MPC Length, size: 165 Mile, 24 Capacity: 300 MBD In-Service: Late 2015 est. MPC Investment: 330 MM Canadian MPC Equity: 35%…
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 250 MM capital investment Includes…
MPLX Strong Financial Flexibility to Manage and Grow Asset Base As of (MM except ratio data) 6/30/15 Cash and cash equivalents 130.4 Total assets 1,382.6 Long-term debt(a) 753.4 Total equity 492.4 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 0.46 23.0% CAGR over MQD 0.44 0.42 0.40 0.38 0.36 /Unit 0.34 0.32 0.4400 0.30…
Our Priorities for Investors Maintain Safe and Reliable Operations 90 Unit Price Sustain Long-term LP 80 Distribution Growth; 29% in 70 2015, 25% CAGR through 2017, and approximately 20% in 2018 60 and 2019 50 Focus on…
Net Income 2Q 2015 vs. 2Q 2014 Variance Analysis 4.0 60 13.0 0.7 (2.0) (1.1) 51.4 51.2 50 (4.9) (1.2) (0.2) 42.9 40 MM 30 20 10 0 2Q 2014 Transportation Other Cost of G&A Other taxes Interest and Other 2Q 2015 MPC…
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 - - - - 2 5 3…
MPLX and MPC are Aligned MPLX Organizational Structure Marathon Petroleum MPC views MPLX as integral to its Corporation and Affiliates (NYSE: MPC) operations and is aligned with its success and incentivized to grow MPLX 100.0%…
Incentive Distribution Rights 2Q 2015 distribution of 0.4400/unit is in top tier of IDRs 28
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 30
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…
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 35
Gulf Coast Product Pipelines Overview 36
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…
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…
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…
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,…
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 Integrated downstream system Growing Midstream/MPLX MPLX/MWE merger Enhancing margins in our refining operations Speedway Hess integration Capital return to…
MPC Focused Return of Capital to Shareholders LTM Ended 6/30/15 8,000 7,000 6,000 2,772 Hess Retail Acquisition 5,000 Dividends and share Dividends and share repurchases 1.8x of repurchases* MM 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 5 2 3 5 1 3 2 7 3 3 1 3 3…
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 2030 vs. 2014 Actual Forecast 100 +1.2% Other Distillate and gasoline Other -1.0% demand continues to rise 80 Fuel Oil Fuel Oil Fuel oil continues 60 to…
U.S. Refined Product Demand Compounded Annual Growth Rates 10 2020 vs. 2014 Actual Forecast 9 Gasoline -0.3% Distillate demand 8 -0.5% growth outpaces other Gasoline ex ethanol 7 products 6 Gasoline will be constrained by…
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 45% ROI 300 Galveston Bay +9 MBD ULSD in 2015 2012 2013 2014 2015E 2016E 2017E…
Forward Curves Expect crude prices lower for longer Forward values for the Brent-WTI differential are favorable Predicting volatile crude differentials WTI Brent-WTI Brent 100 8 110 90 100 7 90 80 6 80 /BBL 70…
Sustaining U.S. Refining Advantage 20 18 16 14 12 /MMBtu 10 8 6 4 2 0 Henry Hub (NYMEX prompt price) European Natural Gas (Avg Import Border Price)* Japanese Liquefied Natural Gas (Import Price)* USGC 6 Fuel Oil-1%…
U.S. Gross Refined Product Exports Increasing 4.5 4.0 Gasolines Kero-Jet 3.5 Diesels 3.0 Propane/Propylene MMBD 2.5 Gross Product Exports 2.0 1.5 1.0 0.5 0.0 Source: U.S. Energy Information Administration…
MPC Growing Gulf Coast Export Capabilities Export investments totaling 120 MM 600 Export Capacity Added new 500,000 barrel export tank 510 at Garyville in 2013 500 Galveston Bay in 2015 400 395 +30 MBD ULSD 345 320 40% ROI…
Rising North American Crude & NGLs Production 25 2015 Actual Forecast 20 Canada 15 MMBD 10 U.S. 5 0 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Sources: EIA, CAPP, MPC 58
Growing Crude Oil Supply 1,800 5,000 150 2014 2014 Ohio 2014 North Dakota Texas 1,500 4,000 125 1,200 100 3,000 MBD MBD MBD 900 75 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 100% Canadian Bakken Utica 80% PADD IV 60% PADD II PADD V 40% PADD I 20% PADD III 0% MPC VLO HFC PSX TSO Permian Basin Eagle Ford PADD II PADD III PADD I…
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 61
U.S./Canada Key Existing and Planned Pipelines MBPD Pipeline In Service Date 300 Line 9 Reversal 2015 300 SAX 2015 200 Diamond 2017 450 Dakota Access 2017 450 ETCO 2017 (Trunkline Conversion) 225/375 Sandpiper 2017 300 Trans…
MPC Balance in Refining Network Canton (Ohio) 90,000 Catlettsburg (Ky.) 242,000 Detroit (Mich.) 130,000 Midwest Capacity 674,000 BPCD Robinson (Ill.) 212,000 Galveston Bay 451,000 (Texas) Texas City (Texas) 84,000 Texas…
MPC Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate 61% PADD II 55% Sour Crude 45% 39% PADD III Sweet Crude As of June 30, 2015 2Q 2015 Assured Sales of Gasoline Production (Speedway + Brand +…
MPC Increasing Light Sweet Crude and Condensate Capacity Condensate splitters Condensate Processing Opportunity Canton: 25 MBD Completed 4Q 2014 Light Naphtha to Gasoline Blending Ultra-Sweet New Catlettsburg: 35 MBD Condensate…
MPC Leveraging Existing Capacity to Run Light Sweet Crude Reforming Capacity % of Crude Capacity 30 45% sweet crude oil throughput in 25 2Q 2015 versus 68% sweet crude oil 20 Industry 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…
Speedway Value Total Gross Margin Mix 2011-2014 Average Top-tier performance in the convenience store industry Scalable technology and Light Product organizational infrastructure 37% Disciplined expense control Merchandise…
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…
Integration to Best in Class Platform Over 800 locations converted Total Capital: 500 Stores Conversion 181 MM by Dec. 2015 Remodel 240 MM Conversion creates platform for increased merchandise revenue 495 Stores by Dec.…
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 40 MM 200 35 365 100 Operating and G&A expense 175 synergies of 75 MM 0 2013 Pro Forma Hess EBITDA* Form 10…
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 LPBE = Merchandise Margin 7 7.13 Light…
Speedway and Hess Side-by-Side Comparison Hessa Speedwayb Company Operated Sites 1,255 1,478 Speedway generates an Fuel Sales incremental 17,300 of (gallons/store/month) 198,500 177,400 merchandise margin per Fuel Margin…
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 2Q 2015 Net income 26.3 35.3 34.8 39.2 36.8 55.7 42.9 43.1 36.4 45.9…
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 2Q Net income attributable to MPC 2,262 1,215 449 623 2,389 3,389 725 593 168 626 199 855 672…
Reconciliation MPC Adjusted Free Cash Flow to Net Cash Provided by Operations (MM) 2014 2015 LTM (For the Quarter) 3Q 4Q 1Q 2Q Net cash provided by operating activities 1,078 388 1,190 994 3,650 Additions to property, plant and…
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…
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