RBC Capital Markets Midstream Conference November 2017
Key Investment Highlights Diversified large-cap MLP positioned to deliver attractive returns over the long term Forecast distribution growth of 12% for 2017, double-digit for 2018 Largest processor and fractionator in the…
Strategic Actions to Enhance Unitholder Value Asset Dropdowns 1Q17 1st dropdown completed in March 8x EBITDA multiple Simplifies structure 250 MM annual EBITDA Expected to lower cost of capital MLP-qualifying EBITDA 2nd dropdown…
Fuels Distribution Overview Extensive Range of Scheduling and Marketing Services that Support MPCs Refining and Marketing Operations Services Description Scheduling Supply and demand balancing Annual EBITDA 600 MM Third-party…
Demonstrated Track Record Strong Financial and Operational Results 2017 Highlights Delivering Results On track for year-over-year distribution growth of 12% Multiple quarterly volume records Executing organic growth capital plan Two…
Priorities for 2018 Positioning partnership through execution of strategic actions Expect to close remaining dropdown and IDR exchange in the first quarter Execution of organic growth capital plan Deliver attractive returns for…
Delivering Consistent Growth in EBITDA and DCF 81% increase in EBITDA since MarkWest acquisition 95% increase in DCF while maintaining strong coverage ratio 600 1.50 538 500 474 1.40 423 391 Coverage Ratio 400 375 351…
Logistics & Storage Segment Overview High-quality, well-maintained assets that are integral to MPC Owns, leases or has interest in 3,800 miles of crude oil pipelines and 4,300 miles of product pipelines 62 light-product terminals…
Attractive Portfolio of Organic Growth Capital Logistics & Storage Segment Utica Build-out and related connectivity Industry solution for Marcellus and Utica liquids 2017 estimated completion Ozark Pipeline Expansion Crude sourcing…
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…
Natural Gas Supply Growth Forecast Marcellus/Utica Basin is the Leading Growth Play 43% of total U.S. growth is expected to occur in Northeast Total U.S. natural gas Northeast supply is forecasted to Denver-Julesburg grow by 20…
Marcellus/Utica Processing Capacity Building Infrastructure to Support Basin Volume Growth Currently operate 66% of processing capacity in Marcellus/Utica basin 8 7.0 Bcf/d processing capacity by end of 2018 2017 plant completions…
Marcellus/Utica Fractionation Capacity Building Infrastructure to Support Growing C2 and C3+ Demand Currently operate 55% of fractionation capacity in Marcellus/Utica basin 700 631 MBPD fractionation capacity by end of 2018 600…
Northeast Operations Well-Positioned in Ethane Market Ethane demand growing as exports and Ohio steam cracker development continues in Pennsylvania Gulf Coast and Northeast Bluestone MPLX well-positioned to support producer…
Considerable Scale in the Southwest 2.1 Bcf/d Gathering, 1.5 Bcf/d Processing & 29 MBPD C2+ Fractionation Capacity Western Oklahoma Processing Oklahoma Southeast Oklahoma Processing* 425MMcf/d 120MMcf/d Gathering Gathering 585MMcf/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* Expect to finish the year below the low end of previously provided range Organic Growth Capital Investment G&P Segment 5% Assets recently placed…
Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining As of (MM except ratio data) investment grade credit profile 9/30/17 Cash and cash equivalents 3 2.25 B senior notes issued 1Q 2017 Total assets…
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 Execute and expand Robust…
Appendix 22
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 Organizational Structure Marathon Petroleum Corporation and Affiliates (NYSE: MPC) MPC views MPLX as integral to its 100% interest 26% LP interest operations and is aligned with its MPLX GP LLC Public* Preferred Common…
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…
Third-quarter Dropdown from MPC Assets include MPCs ownership interests: Total consideration of 1.05 B Explorer Pipeline Company, representing a 24.51 percent 630 MM in MPLX equity and 420 MM in cash ownership interest in the company…
2017 Forecast Not revised since second-quarter 2017 earnings materials Expect to finish 2017 above the high end of ranges provided with the exception of organic and maintenance capital expenditures, which are expected to finish…
Growth Capital Forecast Projects expected to be completed in 2017 Est. Completion Logistics & Storage Est. Completion Gathering & Processing Projects Shale Resource Capacity Date Projects Date Rich- and Dry-Gas Gathering(a)…
Growth Capital Forecast Projects expected to be completed in 2018 Est. Completion Logistics & Storage Est. Completion Gathering & Processing Projects Shale Resource Capacity Date Projects Date Houston I Processing Plant(a) Marcellus…
Pipeline Acquisitions Announced in 2017 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…
Executing a Comprehensive Utica Strategy Phased Infrastructure Investment Cornerstone Pipeline commenced operations in October 2016 Hopedale pipeline connection completed December 2016 Harpster-to-Lima pipeline fully operational in…
MPLX Strengthens Leading Position in Northeast Announced 50/50 joint venture with Antero Midstream in 1Q 2017 Supports Antero Resources significant production growth profile in the Marcellus PENNSYLVANIA Shale OHIO Long-term,…
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 Segment Marcellus & Utica Operations Processed Volumes Gathering Available Average Record volumes averaged over 2.3 Bcf/d Utilization Area Capacity Volume (%) (MMcf/d)(a) (MMcf/d) Third-quarter volumes up…
Gathering & Processing Segment Marcellus & Utica Fractionation Record fractionated volumes of Fractionated Volumes 365 MBPD Available Average Utilization Area Capacity Volume First full quarter of operations for (%) (MBPD)(a)(b)…
Gathering & Processing Segment Southwest Operations Processed Volumes Continued construction of gas processing plants in the Southwest Available Average Utilization Area Capacity Volume (%) (MMcf/d)(a) (MMcf/d) Delaware Basin…
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,…
Commodity Price Sensitivities 95% fee-based net operating margin, 5% commodity exposure for 2017 Maintain active hedging program with 35% of our 2017 commodity exposure currently hedged Annual 2017 sensitivities to commodity price…
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income (MM) 2013 2014 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 Net income (loss) 211 239 333 (14) 72 194 182 187 191 217 (a)The Partnership makes a…
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities (YTD) Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, (MM) 2015 2016 2016 2016 2016 2017 2017 2017 Net cash…
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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