Our Priorities for Value Creation Strategic Objective How We Get There Maintain top tier safety and Continued focus on safety and environmental environmental performance stewardship license to operate Return free cash flow to…
Balanced Approach to Returning Capital and Investment Investing in the Since July 2011 Business* 7.3 B returned to shareholders through repurchases, representing 28% of shares outstanding 9.7 B Five dividend increases resulting…
Fundamentals of MPCs Business Strategically located assets and fully integrated system provides optionality and flexibility Gasoline demand continues to be strong Peer leading alkylation and reforming capacity Supply dynamics…
Refining Enhancing Margins Through Process Efficiency Increasing EBITDA through process improvements Completed light crude upgrade project at Robinson Optimizing Galveston Bay and Texas City operations Increasing distillate yield…
Refining Increasing EBITDA Through Continuous Process Improvements Low or no investment projects Refining Process Improvements* 1,000 Focus on technical excellence 800 Margin Improvement Improvements in process unit 600…
Galveston Bay Process Improvements and Synergies* EBITDA Improvement Process improvements 700 Unit optimization 600 Improved unit yields Bottlenecks removed 500 Catalyst changes 400 MM 300 Synergy capture Crude…
South Texas Asset Repositioning (STAR) Program Creating a World-Class Refining Complex Investment 2.0 B of total investment 2,000 IRR 26% 270 1,500 Increase residual oil (resid) processing 580 MM Expand resid hydrocracker…
U.S. Refiners have a Sustained Export Advantage Low cost natural gas Large, complex refineries 2015 Region Utilization Access to lower cost feedstocks Rate High utilization rates North America 88% Sophisticated workforce MPC 99%…
Refining Investments Growing EBITDA Investments of 2.9 B contributing approximately 1.2 B EBITDA Refining Growth Investment Incremental EBITDA 800 1,400 1,200 600 1,000 800 MM MM 400 600 400 200 200 0 0 Prior to…
Peer-leading Alkylation and Reforming Capacity Octane Capacity Expect strong U.S. HFC 85 30 32 (31%) Reforming Isomerization summer octane values BP 135 45 33 (30%) Alkylation PBF 148 20 66 (28%) ( ) % of Crude Capacity Octane…
Speedway Provides Stable Cash Flows Top tier performer in convenience store industry 1 in EBITDA/store/month vs. public peers Accelerating growth through organic projects Filling in existing markets Commercial fueling lane network…
Speedway Highlights Over 5 million* Speedy Rewards active members and growing as we attract new members in the markets we serve Continuing to focus on marketing enhancement opportunities at Speedways converted locations Completed 76…
MPLX Key Investment Highlights High standard for safety and environmental stewardship Premier assets in highly productive resource plays Long-term integrated relationships with our producer customers Strategic relationship with MPC…
MPLX Operational Highlights Acquired premier inland marine operation from MPC, adding 120 MM of annual EBITDA Completed 20 MBD expansion of Patoka-to-Robinson crude pipeline in April Began construction of the Cornerstone Pipeline,…
MPLX Enhances MPCs Value MarkWest Energy merger Adds scale and diversity to MPC Adds high quality natural gas and NGL assets in prolific shale regions Significant commercial synergies and opportunities across value chain Near…
MPCs Strong Liquidity and Capitalization Committed to maintaining investment grade credit profile and financial flexibility Liquidity and Capitalization As of (MM except ratio data) 3/31/16 Operate with prudent leverage Total Debt…
MPC Consolidated 2016 Revised Capital Outlook Announced February 2016 4,500 4.2 B 4,000 (100) 3,500 (650) 3.0 B 3,000 (400) (50) (20) MM 2,500 2,000 1,500 1,000 500 0 2016 Capital Refining & MPLX** Midstream***…
Growing More Stable Cash-Flow Business Segments Speedway Corporate 2016 Capital Outlook 3.0 B & Other 3% MPC 1.9 B 10% Refining & Marketing, excluding Refining Midstream 1,045 MM MPLX Sustaining 23% Capital Midstream* 440 MM 36%…
Driving Top Tier Financial Performance Through Sustainable Competitive Advantages Fully integrated system provides optionality and flexibility Strategically located assets Value of MPLX Consistent and reliable operator Sustained…
Appendix
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 area…
Distillate Leads U.S. Domestic Petroleum Fuels Demand Compounded 10 Actual Forecast Annual Gasoline demand Growth Rates 9 Gasoline 2015 vs. 2030 declines due to corporate 8 average fuel economy Gasoline ex ethanol -1.1% 7…
Distillate Leading World Liquids Demand Annual Average 120 Volumetric Growth (MBD) Actual Forecast 2015 vs. 2025 Average product 100 demand growth +445 80 of 1.6 MMBD in Other 2016-2017 -19 MMBD 60 Resid Distillate…
Distillate Fundamentals Strong Long Term Current market conditions for distillate Contango in crude oil markets encouraged producing and storing diesel Mild 2015-2016 winter and slower than expected global economic growth has weighed…
Shale Crudes Strengthen Octane Market Expect strong U.S. summer octane values Lighter crude runs produce more light naphtha, increasing demand for octane Shale crudes yield a lower quality reformer feed Octane generation capacity…
North American Crude Production 16 Actual Forecast 14 Shale production challenged in 12 current price environment Canada 10 Drilling improvements and efficiency gains have lessened MMBD 8 U.S. Shale near-term declines 6…
U.S. Natural Gas Production Growth Largely from Shale 20 Actual Forecast 18 U.S. natural gas supply 16 to grow by 5.4 MMBOED (29 BCFD) by 2030 14 2015 production was 12 MMBOED 13.8 MBOED (74.5 BCFD) 10 Shale Gas Lower…
U.S. NGL Volume Growth Creates a Need for Incremental Infrastructure 7 Gulf Coast ethylene Actual Forecast crackers are being built, 6 adding 700 MBD to demand for ethane by 2021 5 Realized ethane production Purity Ethane…
U.S. Natural Gas and NGL Trade Flows Changing Paradigm shift from U.S. Northeast being a significant importer to a significant exporter Driven by Marcellus and Utica production growth Infrastructure continuing to build out to…
U.S./Canada Key Existing and Planned Pipelines In-Service Planned Pipelines MBPD Date Grand Mesa 130 2016 Saddlehorn 190 2016 Bayou Bridge (Lake Charles to St. James) TBD* 2017 Diamond 200 2017 Dakota Access 450 2017…
Returning Capital to Shareholders Through Share Repurchases 8,000 Cumulative Share Repurchases Since July 2011 10 B share 6,000 repurchases authorized 7.31 B returned to shareholders through MM 4,000 repurchases 2,000 28%…
Producing Higher-Value Products Investments of 360 MM contribute 130 MM EBITDA Fluid Catalytic Cracking (FCC) projects Increase alkylate and light products Garyville FCC/Alky Late 2016 Investment: 220 MM IRR 27% Detroit FCC 2018…
MPCs Value of Integration 3,500 Crude 3,000 RIN Price Decline Flexible refining Distortion system 2,500 Large retail MM presence 2,000 Extensive logistics with considerable 1,500 optionality 1,000 1Q12 2Q12 3Q12…
Speedway: Pursuing Attractive and Accretive Acquisitions Leverage MPCs supply and logistical network Increase assured sales Optimize terminal utilization Fill market voids in Speedway footprint High quality assets Continue focus…
Capitalizing on Diesel Demand Growth Trucking remains a dominant mode of transportation U.S. freight volumes expected to increase by 29% Diesel demand growth expected to outpace gasoline Build out commercial fueling lane network…
Following Through on Goals for Acquired Locations Earnings Opportunities (Original Guidance) Invest 570 MM in conversions, 400 remodels and maintenance 300 45 70 40 MM Converted stores to Speedway brand 200 35 365 and…
Focus on Improving Light Product Breakeven 13 12.39 11 Each 1.00 cent per gallon improvement = 30 MM annual Light Product Breakeven (cpg) 9 pretax earnings Total Expenses 7 7.13 LPBE = Merchandise Margin Light Product…
Speedway and Hess Side-by-Side Comparison Hess(a) Speedway(b) 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…
MPLX Long-Term Value Proposition for Investors & Stakeholders Underlying assets and customers are of high quality and performing well amidst a challenging market Diverse revenue stream with long-term fee-based contracts Long list of…
MPLX Gathering & Processing Ethane Raw Gathering Propane Processing Mixed Fractionation NGL Natural Gas and Normal Butane Plants NGLs Facilities Products Isobutane Production Compression Natural Gasoline One of the largest…
MPLX Gathering & Processing Commercial strategy Project execution strategy Develop a deep understanding Processing Standardized plants Ethane Propane of our customers business Plants NGL Normal Butane Just-in-time completion…
MPLX - Gathering & Processing Contract Structure Durable long-term partnerships across leading basins Marcellus Utica Southwest Resource Play Marcellus, Upper Devonian Utica Haynesville, Cotton Valley, Woodford, Anadarko Basin,…
Northeast NGL Supply Growth Forecast Forecasted to account for 24% of total U.S. NGL production in 2026 Create in-basin demand to support producer customer growth and netbacks 49 BPD Opportunities to access Williston midstream and…
MPLX - Focus on Solutions to Enhance Northeast NGL Market Lead the development of infrastructure to link supply of Northeast NGLs with demand markets and enhance value for producer customers Largest fully integrated de-ethanization…
MPLX - Northeast Operations Well-Positioned to Access all Major NGL Markets Edmonton Northeast Markets Markets Access to all major NGL Ontario Midwest Markets markets in the U.S. and Markets the world Key takeaway solutions…
MPLX - Northeast Operations Well-Positioned in Ethane Market Ontario Markets Operate 194 MBPD of de-ethanization capacity in the Mariner West Mariner East Marcellus & Utica shales Distribution by Pipeline Northeast Produce 80% of…
MPLX - Gathering & Processing Marcellus & Utica Operations Record gas processed of 4.3 Bcf/d Processed Volumes in 1Q 2016, an increase of 9% from Average Average Utilization Area Capacity Volume prior quarter (MMcf/d)(a) (MMcf/d)…
MPLX - Gathering & Processing Southwest Operations Total gas processed over 1 Bcf/d in Processed Volumes 1Q 2016 Average Average Utilization Average facility utilization increased to Area Capacity Volume (%) 82% over first…
MPLX Logistics & Storage High-quality, well-maintained assets that are integral to MPC 1,008 miles of common carrier crude oil pipelines 1,900 miles of common carrier product pipelines Barge dock with approximately 78,000 BPD…
Executing a Comprehensive Utica Strategy Links Marcellus and Utica condensate and natural gasoline with Midwest refiners Allows diluent movements to Canada Leverages existing MPC/MPLX pipelines and right of way Phased…
MPLX - Logistics & Storage Contract Structure Fee-based assets with minimal commodity 2015 Revenue Customer Mix exposure(c) 8% MPC has historically accounted for 47 over 85% of the volumes shipped on MM MPLXs crude and product…
MPLX Outlook for Marcellus and Utica Operations Supported by Forecasted Production Growth YoY Gross Gas Production Growth by Region (MMcf/d) 10,000 Assets located in 8,000 prolific Northeast History Forecast shale plays 6,000…
The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play 65 28 Marcellus & Utica account for over Marcellus & Utica Billion Cubic Feet per Day Rest of U.S. Billion Cubic Feet per Day (Bcf/d) 64 20% of…
MPLX - 2016 Revised Capital Outlook Announced February 2016 2,000 1.7 B 2016 revised capital outlook Growth 800 MM - 1.2 B 1,500 Maintenance 61 MM 1.1 B Reduced 2016 midpoint by MM 1,000 650 MM 500 Continue to optimize…
MPLX - 2016 Growth Capital Investment 800 MM to 1.2 B Gathering & Processing capital includes gathering, processing and 19% fractionation infrastructure in Northeast shales and expansion of Southwest 6% 38% operations Logistics &…
MPLX - Gathering & Processing Growth Projects HOPEDALE FRACTIONATION COMPLEX (MarkWest & MarkWest Utica EMG shared KEYSTONE COMPLEX fractionation capacity) Bluestone I III & Sarsen I 410 MMcf/d Operational C3+ Fractionation I & II…
Butane-to-Alkylate (BTA) Project Developing Mt. Belvieu Capabilities in the Northeast 1.5 - 2.0 B in Capital Expenditures Enhancing the gasoline blendstock value chain Alkylate is an ideal gasoline blending component that will become…
Northeast and Long-Haul NGL Pipeline and Related Infrastructure Development EAST COAST BLENDING 1 TERMINALS 1 1.5 B in Capital Expenditures Northeast NGL/Light Products Operations 1 2 to East Coast EXPORTS TO INTERNATIONAL -…
Expanding Dry Gas Gathering in Ohio, Pa., & W.Va. 500 MM to 1 B of Opportunities The Utica Shale is potentially the most economically viable dry gas play in the U.S. Existing Ohio gathering system is critical for development of the…
Midstream Logistics Growth Investment Summary Estimated Estimated (MM) MPC MPLX Total Annual In-Service EBITDA Sandpiper 1,000 1,000 150 2019 Blue Water investment 480(a) 480(a) 55 2015-2016 Cornerstone and Utica Build-out 500 500…
MPLXs Robust Portfolio of Organic Growth Capital and Drop-down Investment Opportunities 26 - 32 B to Support Distribution Growth MPC Drop-down Capital (Assumes 8-10x EBITDA multiple) 12 - 15 B L&S Organic Capital through 2018* 0.8…
Growing MPCs Drop-down Inventory Provides Visibility to Significant Growth 0 2 4 6 8 10 12 14 MPC Drop-down Capital (Assumes 8-10x EBITDA multiple) 16 18 20 22 24 12 - 15 B 26 28 30 32 5,400 miles of additional pipelines…
MPLXs Attractive Portfolio of Organic Growth Capital L&S projects expected to generate 125 MM of EBITDA 0 L&S Organic Capital through 2018(1) 2 4 6 8 10 12 14 16 18 20 22 24 26 0.8 B 28 30 32 Cornerstone and Utica Build-out…
MPLXs Attractive Portfolio of Organic Growth Capital G&P projects expected to generate 1 B of EBITDA 7.5 B Southwest Northeast G&P Organic Capital 2016 to 2020 (1.5 B annual run-rate) 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30…
Leveraging Premier Positions Across the Value Chain with Substantial Incremental Combined Opportunities 0 2 4 6 8 MPLX/MPC Synergistic Capital 10 12 14 16 18 20 22 24 6-9B 26 28 30 32 Opportunity Investment 1 Northeast (N.E.)…
MPLX 2016 Forecast Financial Measure 2016 Forecast Adjusted Net Income(a) 325 MM - 485 MM Adjusted EBITDA 1.25 B - 1.40 B X,XXX-X,XXX Distributable Cash Flow 970 MM - 1.10 B XXX-XXX Distribution Growth Rate(b) 12% -…
MPLX and MPC are Aligned MPLX Organizational Structure MPC views MPLX as integral to its Marathon Petroleum Corporation and Affiliates operations and is aligned with its (NYSE: MPC) success and incentivized to grow 100% interest…
MPLXs Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining As of (MM except ratio data) investment grade credit profile 3/31/16 Completed a 1 B private Total assets 15,978 placement of convertible…
Opportunity Set for Investment is Expanded Multiple Funding Options - Extensive Financial Flexibility MPC Sponsor Support for MPLX Capital Sources Capital Sources Earnings Equity Earnings MLP Distribution Incubate Projects Equity…
Sustaining Core Liquidity Under All Environments 30/BBL crude price environment 4,000 800 Operating Requirements 3,500 (Non-Discretionary Capex, Interest, 3,000 Taxes, Dividends) 2,500 MM Unexpected 2,500 Liquidity Needs…
Reconciliations Speedway Segment Adjusted EBITDA to Segment Income from Operations (MM) 2011 2012 2013 2014 2015 Speedway Segment Income from Operations 271 310 375 544 673 Plus: Depreciations and Amortization 110 114 112 152 254 Plus:…
MPLX 2016 Forecast Adjusted EBITDA and Distributable Cash-Flow Reconciliation from Net Income (MM) Low High Adjusted net income(a) 325 485 Plus: Depreciation and amortization 546 546 Net interest and other financial costs 260 260…
MPC Annual Price and Margin Sensitivities Refining and Marketing Segment MM (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity 450 (per 1.00/barrel change) Sweet/Sour Differential** Sensitivity 220 (per 1.00/barrel change) LLS-WTI…
MPC 2Q 2016 Outlook Other Total Corporate Percent of Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude…
Market Indicators Used in MPC Project EBITDA Calculations 2016-2020 2016-2020 Average Range REG UNL (USGC; /GAL)* 2.03 1.60 - 2.23 ULSD (USGC; /GAL)* 2.32 1.89 - 2.52 LLS (St. James, LA; /BBL) 79.47 61.80 - 87.43 Natural Gas…
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