J.P. Morgan Midwest Energy MLP 1x1 Forum Chicago Sept. 2016 1
Structure = Competitive Advantage Structure = Competitive Advantage Investment grade MLP with no incentive distribution rights Provides MMP a simple organizational structure and one of the lowest costs of capital in the MLP space…
Refined Products Refined Products Longest refined products pipeline system, primarily transporting gasoline and diesel fuel, with 9,700 miles, 54 terminals and 42mm barrels of storage Profit driven by throughput volume and tariffs…
Crude Oil Crude Oil 2,100 miles of crude oil pipelines, substantially backed by long-term throughput commitments 23mm barrels of total crude oil storage, including 15mm barrels used for leased storage One of the largest storage…
Marine Storage Marine Storage 5 storage facilities with 26mm barrels of aggregate storage, supported by long-term agreements Utilization rates typically greater than 90% Strong demand due to market structure, pricing volatility and…
Primarily Fee-Based Business Primarily Fee-Based Business Expect Future Fee-Based, Low Risk Activities to Comprise 85% or More of Operating Margin ytd 2Q16 Results* Leased storage Fee-based ancillary 16% services 7%…
Growth in Expansion Capital Spending Growth in Expansion Capital Spending Over the last 10 years, Magellan has invested 4.4 billion in organic growth projects and acquisitions Expect to spend 1.3 billion in 2016-2018 on construction…
Little Rock Pipeline Little Rock Pipeline Recently extended reach of refined products pipeline system from Ft. Smith to Little Rock, AR Provides Little Rock access to refined products from both Mid-Continent and Gulf Coast…
Pipeline Saddlehorn Pipeline Joint venture to deliver crude oil from DJ Basin and potentially broader Rocky Mtn region to Cushing 600-mile pipeline with initial capacity of 190k bpd (max capacity up to 300k bpd) Ownership…
Corpus Christi Condensate Splitter Corpus Christi Condensate Splitter Magellan is constructing a 50k bpd condensate splitter at our Corpus Christi terminal Fee-based project, fully committed with long-term, take-or-pay agreement…
Butane Blending Growth Projects Pursuing opportunities to maximize volumes and margins for butane blending Powder Springs JV with Colonial Pipeline to blend butane into gasoline at Colonials Atlanta hub beginning early 2017 Addition…
Seabrook Logistics Joint Venture 50/50 joint venture with LBC Constructing 700k bbls of crude oil storage and pipeline infrastructure to connect to third-party pipeline for ultimate transport to Houston-area refinery Supported by…
HoustonLink Joint Venture 50/50 joint venture with TransCanada Constructing 9-mile pipeline to connect TransCanadas Houston terminal and Magellans East Houston terminal Improves Magellans connectivity by providing Marketlink…
Galena Park Dock Expansion To meet increased demand for export capabilities, Magellan is adding a 5th dock at its Galena Park marine terminal Multi-phase project to build new dock capable of handling Panamax-sized ships and barges…
Pasadena Marine Terminal Recently announced plans to construct a new marine terminal in Pasadena, Texas Initial project includes 1mm bbls of refined products and ethanol storage, marine dock and pipeline connectivity to existing…
Potential Expansion Projects Potential Expansion Projects Magellan has continually been able to keep its potential growth project list well in excess of 500mm even as projects are completed and placed into service Healthy mix of…
Distribution Growth Trend Distribution Growth Trend Proven history of distribution growth with 57 quarterly increases since IPO Targeting 10% annual distribution growth for 2016 and at least 8% for 2017 while maintaining distribution…
Conservative Financial Profile Conservative Financial Profile Committed to maintaining solid balance sheet Currently, one of the highest-rated MLPs at BBB+ / Baa1 Targeting distribution coverage of at least 1.1x on long-term basis,…
Magellan Summary Magellan Summary Proven history of exceptional returns and distribution growth Straight-forward, stable business model Forecasted strong distributable cash flow generation with solid distribution coverage…
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