Master Limited Partnership Association Investor Conference Orlando May 31 June 1, 2017 1
Straight-Forward Business Model 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 Public 100% LP Magellan Midstream…
Refined Products Longest refined products pipeline system, primarily transporting gasoline and diesel fuel, with 9,700 miles, 53 terminals and 42mm barrels of storage Profit driven by throughput volume and tariffs Tariff changes…
Crude Oil 2,200 miles of crude oil pipelines, substantially backed by long-term throughput commitments 26mm barrels of total crude oil storage, including 17mm barrels used for contract storage One of the largest storage providers in…
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 connectivity…
Primarily Fee-Based Business Expect Future Fee-Based, Low Risk Activities to Comprise 85% or More of Operating Margin 2016 Results* Contract storage Fee-based ancillary 16% services 7% Transportation Terminal delivery fees 59%…
Growth in Expansion Capital Spending Over the last 10 years, Magellan has invested 5 billion in organic growth projects and acquisitions Expect to spend 950mm in 2017-2018 on construction projects currently underway Many opportunities…
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 structure:…
Corpus Christi Condensate Splitter Magellan recently constructed a 50k bpd condensate splitter at our Corpus Christi terminal Fee-based project, fully committed with long-term, take-or-pay agreement with Trafigura 330mm spending:…
Houston Distribution System Enhancements HoustonLink joint venture with TransCanada now operational Enhances strategic value of Magellans Houston distribution system by improving connectivity, providing Marketlink shippers access…
Seabrook Logistics Joint Venture 50/50 joint venture with LBC Tank Terminals Phase 1: Now operational, including 700k bbls of crude oil storage to handle crude oil imports under a long-term commitment MMPs share of capital spend…
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 Magellan is constructing 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 Galena Park…
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 refined products and crude oil…
Distribution Growth Trend Proven history of distribution growth with 60 quarterly increases since IPO Targeting 8% annual distribution growth for 2017 and 2018 with 1.2x distribution coverage 3.59 (per MMP unit) 0.56 2001…
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, 1.2x near term DCF of 947mm in…
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 Conservative, disciplined…
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