MLPA Investor Conference Don Templin, President June 1, 2017
Key Investment Highlights Diversified large-cap MLP positioned to deliver attractive returns over the long term Forecast distribution growth of 12% to 15 % for 2017, double digit for 2018 Gathering & Largest processor and…
2017 Priorities and Strategy Gathering & Processing Logistics & Storage Executed strategic agreements to support Completed multiple acquisitions continued long-term growth in Marcellus Terminal, pipeline and storage assets from rich…
Strategic Plan to Enhance Unitholder Value Asset Dropdowns Exchange for MLP-Qualifying EBITDA Benefits Simplifies structure Expected to lower cost of capital Increased visibility to distribution growth EBITDA from asset…
Delivering Consistent Growth in EBITDA and DCF 42% increase in EBITDA since MarkWest acquisition 55% increase in DCF while maintaining strong coverage ratio 500 1.50 423 400 375 391 1.40 351 Coverage Ratio 298 302 MM…
Logistics & Storage Segment Overview High-quality, well-maintained assets that are integral to MPC Owns, leases or has interest in 3,500 miles of crude oil pipelines and 2,400 miles of product pipelines 62 light-product terminals…
Executing a Comprehensive Utica Strategy Phased Infrastructure Investment Cornerstone Pipeline commenced operations in October 2016 Hopedale pipeline connection completed December 2016 Expected completion of Harpster-to- Lima…
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…
The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play 87 35 Marcellus & Utica account for over 25% of Rest of U.S. Billion Cubic Feet per Day (Bcf/d) Marcellus & Utica Billion Cubic Feet per Day Marcellus…
Marcellus/Utica Processing Capacity Building infrastructure to support basin volume growth Currently operate 66% of processing capacity in Marcellus/Utica Basin 8 7.2 Bcf/d processing capacity by end of 2018 2017 expected plant…
Marcellus/Utica Fractionation Capacity Building infrastructure to support growing C2 and C3+ demand Currently operate 55% of fractionation capacity in Marcellus/Utica Basin 600 571 MBPD processing capacity by end of 2018 500 2017…
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…
Considerable Scale in the Southwest 2.6 Bcf/d Gathering, 1.5 Bcf/d Processing & 29 MBPD C2+ Fractionation Capacity Western OK Processing Oklahoma Southeast OK Processing* 425MMcf/d 120MMcf/d Gathering Gathering 585MMcf/d 1,205MMcf/d…
Expanding Southwest Position to Support Growing Production in High Performance Resource Plays Cana-Woodford Permian Hidalgo Complex 200 MMcf/d Eddy Permian Arapaho Complex Basin Blaine Kingfisher Dewey Rich-gas Newfield Argo…
Robust Organic Growth Opportunities Forecast organic capital of 1.8 B to 2.0 B for 2017* 7% G&P Segment Utica Sherwood VII placed in service in first quarter 20% 60 MBPD fractionation train at Hopedale Southwest placed in service…
Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining (MM except ratio data) As of 3/31/17 investment grade credit profile Cash and cash equivalents 265 2.25 B senior notes issued Total assets 18,285…
Long-Term Value Objectives Deliver Sustainable Distribution Growth rate that provides attractive total unitholder returns Drive Lower Cost of Capital to achieve most efficient mix of growth and yield Develop Backlog of Organic Growth…
Appendix 19
About MPLX Growth-oriented, diversified MLP with high-quality, strategically located assets with leading midstream position Two primary businesses Logistics & Storage includes transportation, storage and distribution of crude oil,…
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…
MPLX and MPC Interests are Aligned The combination of dropdowns and GP/IDR buy-in is anticipated to lower MPLXs cost of capital going forward Dropdowns enhance and provide greater visibility to distribution growth GP/IDR buy-in…
Financing of Dropdowns and IDR Exchange Dropdowns Expect average through all drops of 50% debt and 50% equity, with equity financing to be funded through MPLX LP units issued to MPC at market price Expect valuation multiples…
First-Quarter Dropdown from MPC Terminal, pipeline and storage assets Total consideration of 2.015 B 62 light product terminals with 24 million barrels of 1.511 B in cash and 504 MM in MPLX equity storage capacity Represents 8 times…
MPC Assets Expected to be Acquired by MPLX 1.4 B of Estimated Annual EBITDA Refinery Fuels Terminals Pipelines Marine Logistics Distribution 62 light product; Private carrier crude Equity in 50/50 blue 55 MMBBL storage Fixed service…
Fuels Distribution Business Model Marketing Model Marketing Model Services Model (Wholesale Distribution) (Rack-to-Retail) MPC outsources fuels marketing Purchase MPCs marketing Precedents models purchase, services to MPLX for those…
MPLX Strengthens Leading Position in Northeast Recently announced 50/50 joint venture with Antero Midstream Supports Antero Resources significant PENNSYLVANIA production growth profile in the Marcellus Shale OHIO Long-term,…
Recently Announced Pipeline Acquisitions Extending the Footprint of the L&S Segment OzarkBakken PipelinePipeline Acquisition 500 MM investment 9.2% equity interest in the Dakota Access Pipeline (DAPL) and the Energy Transfer Crude…
2017 Forecast Financial forecast revised in first quarter to reflect dropdown from MPC and acquisitions of the Ozark Pipeline and Bakken Pipeline system Bakken Pipeline system is accounted for as an equity-method investment EBITDA…
Growth Capital Forecast Projects expected to be completed in 2017 Est. Completion Est. Gathering & Processing Projects Shale Resource Capacity Date Logistics & Storage Projects Completion Date Rich- and Dry-Gas Gathering(a) Marcellus…
Growth Capital Forecast Projects expected to be completed in 2018 Est. Completion Est. Gathering & Processing Projects Shale Resource Capacity Date Logistics & Storage Projects Completion Date Houston I Processing Plant(a) Marcellus…
Attractive Portfolio of Organic Growth Capital Logistics & Storage Segment Midwest Pipeline Infrastructure Build-out Industry solution for Marcellus and Utica liquids Mid-2017 estimated completion Ozark Pipeline Expansion Crude…
Major Residue Gas Takeaway Expansion Projects Originate at MPLX Facilities New takeaway pipelines expected to improve Northeast basis differentials MPLX processing complexes: Access to all major gas residue gas takeaway pipelines…
Gathering & Processing Marcellus & Utica Operations Processed Volumes Commenced operations of Sherwood VII plant in March 2017 Available Average Utilization which increases the total capacity of Area Capacity Volume (%)…
Gathering & Processing Marcellus & Utica Fractionation 2017 fractionated volumes Fractionated Volumes expected to increase 15% Available Average Utilization to 20% over prior year Area Capacity Volume (%) (MBPD)(a)(b) (MBPD)…
Gathering & Processing Southwest Operations Processed Volumes 2017 processed volumes expected to increase 3% to 8% over 2016 Available Average Utilization Area Capacity Volume (%) West Texas (Delaware Basin) (MMcf/d)(a) (MMcf/d)…
Logistics & Storage Contract Structure Fee-based assets with minimal commodity 2016 Revenue Customer Mix exposure(c) 6% MPC has historically accounted for 51 over 85% of the volumes shipped on MPLXs 20% MM crude and product…
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 Wash,…
MPLXs Commodity Price Sensitivities Forecast 95% fee-based net operating margin, 5% commodity exposure for 2017 Maintain active hedging program with 40% of our 2017 commodity exposure currently hedged Annual 2017 sensitivities to…
Adjusted EBITDA and Distributable Cash Flow Reconciliation from Net Income (MM) 4Q 2015(a) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 (a) Adjusted EBITDA and DCF Reconciliation from Net Income Net income (loss) 42 (14) 72 194 182 187…
2017 Forecast - Reconciliation Adjusted EBITDA and Distributable Cash Flow from Net Income (MM) Low High Net income 550 700 Depreciation and amortization 680 680 Net interest and other financial costs 330 330 Adjustment for equity…
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…
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