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2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp

MPLX Lp · Aug 18, 2016 · 44 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. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 1
    Citi MLP/Midstream Infrastructure Conference August 2016
  2. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 2
    About MPLX Growth-oriented, diversified MLP with high-quality, strategically located assets with leading midstream position Two primary businesses Logistics & Storage includes transportation and storage of crude oil, refined…
  3. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 3
    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…
  4. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 4
    Logistics & Storage Segment Overview 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…
  5. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 5
    Logistics & Storage Recent Operating Highlights First full quarter with: Inland marine business and its fee-for- capacity contract with MPC Expanded Patoka-to-Robinson, Illinois, pipeline operations Continued construction of the…
  6. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 6
    Attractive Portfolio of Organic Growth Capital Logistics & Storage Segment Cornerstone and Utica Build-out Industry solution for Utica liquids Pipeline and Tank Farm Expansions MPC and third-party logistics solutions Robinson…
  7. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 7
    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…
  8. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 8
    MPCs Substantial MLP-Qualifying Asset Portfolio 1.5 B of annual EBITDA 5,400 miles of additional pipelines (owns, leases or has an ownership interest) Pipelines Bakken Pipeline System* Marine Equity in 50/50 blue water JV with…
  9. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 9
    MPCs Equity Participation in Bakken Pipeline System Announced agreement to participate in the Dakota Access Pipeline (DAPL) and the Energy Transfer Crude Oil Pipeline (ETCOP) projects, collectively referred to as the Bakken Pipeline…
  10. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 10
    Gathering & Processing Segment Overview 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…
  11. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 11
    Gathering & Processing Recent Operating Highlights New 200 MMcf/d processing plant in Delaware Basin completed in May, expanding presence in Southwest Commenced operations of 200 MMcf/d processing plant and 10,000 BPD…
  12. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 12
    Attractive Portfolio of Organic Growth Capital Gathering & Processing Segment Organic Growth Opportunities in the Northeast: Expansion of gas gathering systems Antrim Shale Canonsburg Development of additional processing and…
  13. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 13
    Gathering & Processing Growth Projects HOPEDALE FRACTIONATION COMPLEX MarkWest Joint Venture with EMG KEYSTONE COMPLEX C3+ Fractionation I & II 120,000 Bbl/d Operational PENNSYLVANIA Bluestone I III & Sarsen I 410 MMcf/d Operational…
  14. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 14
    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 system in…
  15. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 15
    MPLX Northeast Operations Well-Positioned in Ethane Market Ethane demand growing as exports and Ohio steam cracker development continues in Pennsylvania Gulf Coast and Northeast Keystone MPLX well-positioned to support producer…
  16. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 16
    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 -…
  17. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 17
    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…
  18. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 18
    2016 Organic Capital Investment 2016 organic growth capital forecast narrowed to a range of 900 million 22% to 1.2 billion Gathering & Processing capital 8% includes infrastructure to support Northeast and Southwest operations 33%…
  19. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 19
    Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining As of (MM except ratio data) investment grade credit 6/30/16 profile Total assets 16,079 Completed a 1 B private Total debt 4,401 placement of…
  20. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 20
    Commodity Price Sensitivities 92% fee-based net operating margin, 8% commodity exposed for 2016 Maintain active hedging program and have currently hedged 45% of our remaining 2016 commodity exposure; beginning to hedge for 2017…
  21. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 21
    2016 Forecast MPLX has increased the midpoints of its 2016 financial forecast Financial Measure 2016 Forecast Net Income(a) 140 million - 240 million Adjusted EBITDA(b) 1.3 billion - 1.4 billion Net cash provided by operating…
  22. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 22
    MPLX Long-Term Value Proposition for Investors & Stakeholders Underlying assets and customers are of high quality and located in the most prolific basins in the U.S. Diverse revenue stream with long-term fee-based contracts Robust…
  23. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 23
    Appendix 24
  24. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 24
    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…
  25. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 25
    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 MPLXs MM crude and product pipelines…
  26. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 26
    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, Granite…
  27. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 27
    Growth Driven by Customer Satisfaction No.1 rating for total customer satisfaction in every EnergyPoint Research survey since its inception in 2006 28
  28. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 28
    Gathering & Processing Marcellus & Utica Operations 2.8 Houston Complex Sherwood Complex Hopedale Complex 0 Bcf/d Gathering capacity 5.5 Bcf/d Processing capacity 417 MBPD C2+ Fractionation capacity 25 MBPD Cond.…
  29. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 29
    Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes Processed volumes averaged over Available Average 4.1 Bcf/d in 2Q 2016 Area Capacity Volume Utilization (%) (MMcf/d)(a) (MMcf/d) Commenced operations…
  30. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 30
    Gathering & Processing Segment Marcellus & Utica Fractionation Commenced operations of 10 MBb/d de-ethanization facility at Fractionated Volumes Mobley Complex in April Available Average Utilization Production of purity ethane in…
  31. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 31
    The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play 65 Marcellus & Utica account for over 28 Marcellus & Utica Billion Cubic Feet per Day Rest of U.S. Billion Cubic Feet per Day (Bcf/d) 64 20% of…
  32. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 32
    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 build…
  33. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 33
    Northeast NGL Supply Growth Forecast Northeast is forecasted to account for 24% of total U.S. NGL production in 2026 49 MBPD Access to all major NGL Williston markets in the U.S. and the world 25 537 MPLX is largest midstream…
  34. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 34
    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 Northeast…
  35. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 35
    Northeast Operations Well-Positioned in Ethane Market Ontario Markets Operate 190 MBPD of de-ethanization capacity in the Mariner West Mariner East Marcellus & Utica shales Exports Distribution by Pipeline Northeast Produced 116…
  36. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 36
    Gathering & Processing Southwest Operations 2.7 Carthage Complex Hidalgo Buffalo Creek Complex Javelina Complex Complex 0 Bcf/d Gathering capacity 1.5 Bcf/d* Processing capacity 29 MBPD C2+ Fractionation capacity…
  37. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 37
    Gathering & Processing Segment Southwest Operations Processed Volumes Completed 200 MMcf/d Hidalgo processing plant supporting Available Average Utilization Area Capacity Volume producers in the Delaware Basin (MMcf/d)(a) (MMcf/d)…
  38. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 38
    2016 Forecast - Adjusted EBITDA and Distributable Cash-Flow Reconciliation from Net Income (MM) Low High Net income 140 240 Plus: Depreciation and amortization 540 540 Impairment expense(a) 130 130 Net interest and other financial…
  39. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 39
    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…
  40. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 40
    MPC 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…
  41. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 41
    MPCs Strong Liquidity and Capitalization Committed to maintaining (MM) 2016 2015 investment grade credit profile 2Q 1Q 4Q 3Q and financial flexibility As of quarter ended: MPC debt excluding MPLX 6,658 6,850 6,669 5,939 Operate…
  42. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 42
    MPC Reconciliation Pro Forma Adjusted EBITDA to Pro Forma Net Income Attributable to MPC (MM) 2015 2016 1Q 2Q 3Q 4Q 1Q 2Q Pro Forma Net Income attributable to MPC* 871 786 943 225 1 801 Less: Net interest and other financial income…
  43. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 43
    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…
  44. 2016 Citi MLP Midstream Infrastructure Conference – MPLX Lp – slide 44
    MPC - Driving Strong Financial Performance Through Sustainable Competitive Advantages Fully integrated system provides optionality and flexibility Strategically located assets Value of MPLX Top-tier retail system Focus on…

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