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Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp

MPLX Lp · Dec 6, 2017 · 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. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 1
    Wells Fargo Pipeline, MLP and Utility Symposium December 2017
  2. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 2
    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…
  3. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 3
    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…
  4. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 4
    Executed Agreement for Remaining Dropdown from MPC Expect to close February 1, 2018 Total consideration of 8.1 B 4.1 B in cash and 4.0 B in MPLX equity 1 B annual EBITDA Expected to be immediately accretive to MPLXs distributable…
  5. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 5
    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…
  6. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 6
    Refining Logistics Overview Integrated Tank Farm Assets Supporting MPCs Operations Tanks Racks 56 MMBBL storage Multiple rail and truck loading racks Docks Gasoline Blending & Associated Piping Handle ocean- and river-going…
  7. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 7
    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…
  8. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 8
    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…
  9. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 9
    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…
  10. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 10
    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…
  11. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 11
    Attractive Portfolio of Organic Growth Capital Logistics & Storage Segment Utica Build-out and related connectivity Industry solution for Marcellus and Utica liquids Multiple investments estimated to complete throughout 2017 and 1Q…
  12. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 12
    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…
  13. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 13
    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…
  14. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 14
    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…
  15. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 15
    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…
  16. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 16
    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…
  17. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 17
    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…
  18. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 18
    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…
  19. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 19
    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…
  20. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 20
    Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining (MM except ratio data) As of investment grade credit profile 9/30/17 Cash and cash equivalents 3 2.25 B senior notes issued Total assets 19,238 1Q…
  21. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 21
    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…
  22. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 22
    Appendix 23
  23. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 23
    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,…
  24. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 24
    MPLX Organizational Structure Marathon Petroleum Corporation and Affiliates MPC views MPLX as integral to its (NYSE: MPC) 100% interest 26% LP interest Public* operations and is aligned with its MPLX GP LLC Preferred (our…
  25. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 25
    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…
  26. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 26
    Third-quarter Dropdown from MPC Assets include MPCs ownership interests: Total consideration of 1.05 B Explorer Pipeline Company, representing a 24.51% 630 MM in MPLX equity and 420 MM in cash ownership interest in the company…
  27. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 27
    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…
  28. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 28
    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)…
  29. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 29
    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…
  30. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 30
    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…
  31. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 31
    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…
  32. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 32
    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,…
  33. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 33
    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…
  34. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 34
    Marcellus/Utica Overview 3.8 Bcf/d Gathering, 5.8 Bcf/d Processing & 531 MBPD C2+ Fractionation Capacity HOPEDALE FRACTIONATION COMPLEX BLUESTONE COMPLEX PENNSYLVANIA HARMON CREEK COMPLEX (currently under construction) OHIO HOUSTON…
  35. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 35
    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…
  36. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 36
    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)…
  37. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 37
    Gathering & Processing Southwest Operations 2.1 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…
  38. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 38
    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…
  39. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 39
    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…
  40. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 40
    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,…
  41. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 41
    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…
  42. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 42
    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…
  43. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 43
    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…
  44. Wells Fargo Pipeline MLP and Utility Symposium – MPLX Lp – slide 44
    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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