2015 Wells Fargo Energy Symposium December 8, 2015
Key Investment Highlights U.S. NGL volume growth creates a need for incremental infrastructure Completed transformative combination with MarkWest Energy Partners, L.P. creating large-cap, diversified, high-growth master limited…
U.S. Natural Gas Production Growth Largely from Shale 18 Actual Forecast U.S. natural gas supply 16 to grow by 3.3 MMBOED 14 (18 BCFD) by 2030 2015 EIA forecast lower 12 due to less LNG exports MMBOED Shale Gas 10 Lower…
U.S. NGL Volume Growth Creates a Need for Incremental Infrastructure 7 Supply growth will not be Actual Forecast derailed by lower prices 6 Rejected Ethane Total NGL production growth: 5 4.9% annually through 2020 4…
U.S. Natural Gas and NGL Trade Flows Changing 2000 2020 Paradigm shift from U.S. Northeast being a significant importer to a significant exporter Driven by Marcellus and Utica production growth Infrastructure continuing to…
Leveraging Strengths Across the Hydrocarbon Value Chain Crude Oil and Refined Products Natural Gas and NGLs Refining Gathering Logistics Processing Fuels Distribution Fractionation Large and growing The right assets, in the…
Shale Crudes Strengthen Octane Market U.S. summer octane values were strong Lighter crude runs produce more light naphtha, increasing demand for octane Shale crudes yield a lower quality reformer feed Octane generation capacity…
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:…
Growing More Stable Cash-Flow Business Segments Speedway Corporate 2016 Capital Budget 4.2 B & Other 3% MPC 2.5 B MPLX 9% Refining Sustaining Refining & Marketing, excluding Capital Midstream 1,145 MM 16% Midstream* 828 MM 41%…
Extraordinary Backlog of Organic Growth and Drop-down Investment Opportunities of 27 - 33 B to Support High Distribution Growth MPC Drop-down Capital (Assumes 8-10x EBITDA 13 - 16 B multiple) MPLX Organic Capital through 2018*…
Growing MPCs Drop-down Inventory Provides Visibility to Significant Growth MPC Drop-down Capital (Assumes 8-10x EBITDA multiple) 13 - 16 B 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 5,400 miles of additional pipelines…
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 MPC Investment: 330 MM Canadian MPC Equity: 35%…
Marine Business Overview Fully-Integrated Marine Transportation and Service Provider Marine Transportation Premier inland service provider with best-in-class assets 18 towboats and 201 tank barges moving light Annual EBITDA 120 MM…
Legacy MPLX has Attractive Organic Growth Backlog Estimated to Generate 125 MM of EBITDA MPLX Organic Capital through 2018(1) 0.8 B 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Cornerstone and Utica Build-out Pipeline and Tank…
MarkWest is One of the Largest NGL and Natural Gas Midstream Service Providers Processing 75% of Total Rich-Gas Production from the Marcellus and Utica Interstate and Pipeline Quality Intrastate Gas Natural Gas to Transmission…
Growth Driven by Customer Satisfaction MarkWest has received the No.1 rating for total customer satisfaction in every EnergyPoint Research survey since its inception in 2006 18
MarkWests Best-in-Class Service Creates Significant Value for Producer Customers Consistent Approach Leads to Superior Execution Commercial Strategy Develop a deep understanding of our customers business Create unique solutions and…
MarkWest is Focused in High IRR Resource Plays IRR by Resource Play 20% 75% 17% 2015 Operating Income Forecasted 15% 15% 14% from Marcellus & Utica 13% 13% 15% 12% 12% 11% 10% 10% 10% 10% 10% 9% 9% 9%…
The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play 65 23 Marcellus & Utica account for Marcellus & Utica Billion Cubic Feet per Day (BCF/D) 64 over 20% of total U.S. Gas Supply 21 Rest of U.S. Billion…
MarkWest has the Premier Position in the Marcellus and Utica We operate 41 processing and fractionation facilities in the Marcellus and Utica shales and have 11 additional facilities currently under construction We currently…
Expanding Southwest Position to Support Growing Production in High Performance Resource Plays Cana-Woodford Permian Expanding into the Cana-Woodford to Executed definitive agreements with support Newfield Explorations Cimarex and…
MarkWest has Robust Portfolio of Growth Projects Expected to Deliver 1 B of EBITDA Southwest Northeast MarkWest Organic Capital 2016 to 2020 (1.5 B annual run-rate) 7.5 B 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Organic…
Leveraging Premier Positions Across the Value Chain with Substantial Incremental Combined Opportunities MarkWest/MPLX/MPC Synergistic Capital 6-9B 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Opportunity Investment 1…
Butane to Alkylate (BTA) Developing Mt. Belvieu Capabilities in the Northeast: 1.5 - 2 B of Opportunity Alkylate is an ideal gasoline blending Enhancing the gasoline component that will become increasingly blendstock value chain…
Northeast and Long-Haul NGL Pipeline and Related Infrastructure Development with 1 1.5 B in Opportunities NGL/Light Products EAST COAST 1 to East Coast BLENDING - Large-scale East Coast LPG export 1 TERMINALS terminal MarkWest -…
Develop Infrastructure to Support the Emerging Rogersville Shale and Other Unconventional Northeast Reservoirs with up to 1 B of Opportunity Highly prospective play in West Virginia and Kentucky West Virginia Siloam MarkWest…
Expanding Dry Gas Gathering in Ohio, Pa., and W.Va. with 500 MM - 1.0 B of Opportunity The Utica Shale is potentially the most economically viable dry gas play in the U.S. Existing Ohio gathering system is critical for development…
Overall Midstream Growth Investments of over 9 B Contributing Approximately 1.3 B EBITDA(1) MarkWest Growth Investments - Cash Flow Return Profile 24 to 36 months 7.5 B of forecasted 1 B of Mid-2022 7.0x Cash Flow growth capital…
Consistent History of Peer-Leading Distribution Growth at MPLX to Continue 0.50 24% CAGR Since IPO 0.45 0.40 /Unit 0.35 0.4700 0.4400 0.4100 0.30 0.3825 0.3575 0.3425 0.3275 0.3125 0.25 0.2850 0.2975 0.2625*…
Strong Sponsor has Many Options to Support Distribution Growth MPC is a Fortune 25 Company with 30 B market cap that has a large, investment grade balance sheet and significant liquidity/free cash flow Incubate growth projects at the…
MPLX has Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining investment grade credit profile and financial flexibility Expected pro forma debt of 5,474 MM(1) at close Anticipated leverage of 4.3x(2) at…
Combined Entity Presents a Compelling Value Proposition for Investors 1 Bloomberg Consensus estimates and MPLX closing price as of Nov.16, 2015 (Regression line excludes MPLX (Current)) 34
Appendix 35
MPCs Fully Integrated Downstream System Refining and Marketing Seven-plant refining system with 1.8 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market…
MPLX Downstream Assets are Integral to MPC 37
Other Major MPLX Downstream Assets Pipeline Tank Farm Storage Assets Both crude oil and products located in Patoka, Wood River and Martinsville, Ill., and Lebanon, Ind. Approximately 3.3 MM barrels of available capacity Wood…
MPC/MPLX Executing a Comprehensive Utica Strategy Links Marcellus and Utica condensate and natural gasoline with Midwest refiners Leverages existing MPC/MPLX pipelines and right of way Need map components Allows diluent broken up…
MPC/MPLX Executing a Comprehensive Utica Strategy Phased infrastructure investment Canton crude truck unload Antrim Shale Utica crude trucking fleet Wellsville truck to barge project Utica Shale Utica barge expansion Marcellus…
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 Late 2016 completion East and West…
MarkWest Southwest Operations Gathering Capacity 2.1 BCF/D Carthage Complex East Texas East Texas System 0.6 BCF/D Western Oklahoma System 0.8 BCF/D Southeast Oklahoma System 0.6 BCF/D Eagle Ford & Other Systems 0.1 BCF/D…
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