Raymond James Institutional Investors Conference Tim Griffith, Senior Vice President, and CFO March 7, 2018
Executing Our Strategic Plan and Delivering Results Total Shareholder Return Since Spinoff Since 2011 spinoff we have: (6/30/2011) Returned over 13 billion to our shareholders Consistently increased dividend, 26.5% CAGR since spin…
Delivering Significant Capital Returns for Our Shareholders Over 13 B returned to shareholders since spin 12,000 3.7 B in Dividends 9.8 B in Share Repurchases 10,000 Repurchased 35% 1.60 1.52 of Outstanding Common Shares 1,400…
Delivered on Strategic Actions Exchanged for Evaluation Completed MLP-qualifying EBITDA MUTUAL BENEFITS FOR MPC AND MPLX Clear valuation for MPCs interests in MPLX EBITDA from dropdowns and IDR exchange add substantial stable…
2017 Accomplishments Refining & Marketing Speedway MPLX Earnings Increased by 1 B 6th straight year of record Record financial results results delivering 2 B of adjusted Robust earnings power of EBITDA in 2017 MPCs integrated model…
Galveston Bay Refinery Achievements Since February 2013 Acquisition Improved Environmental Advanced Operational Lowered Operating & Safety Performance Excellence Costs 80% reduction in environmental Reduced total cash operating 33…
Positive Market Fundamentals Encouraged by a more balanced supply and demand environment Supportive of crude oil and refined product prices throughout the year Distillate demand expected to benefit from increased commercial activity…
Key Strategies MPLX Grow EBITDA by expanding services and geographic footprint across the hydrocarbon value chain Focused on Marcellus, Utica, Permian and STACK basins Develop new assets and replace third-party services used by MPC…
2018 Capital Outlook MPC excluding MPLX 1.6 B Refining & Marketing (R&M): 950 MM 24% Maintenance: 550 MM 60% Refining & MPLX Marketing Speedway: 530 MM Other: 100 MM MPLX 2.4 B 13% Growth: 2.2 B Speedway 3% Maintenance: 190…
2018 Refining & Marketing Capital Plan 400 MM of growth capital with estimated returns greater than 20% Well-positioned to benefit from IMO in 2020 Incremental Distillate (MBPD) Sulfur content of marine fuel from 3.5% to 0.5%…
Heavy Oil Upgrading Capacity in PADD 3 MPC Garyville and Galveston Bay Refineries Top Ranked Galveston Bay refinery Garyville refinery Heavy Oil Upgrading Capacity Crude Throughput Capacity Source: PennWell Knowledge Center…
Speedway Industry Leader with Significant Growth Opportunities 1 in EBITDA/store/month vs. public peers 30 Peer Median = 23 M 20 M 10 0 Speedway Murphy USA Couche-Tard Sunoco Casey's Planned investment of 530 MM in…
MPLX Priorities for 2018 Deliver attractive returns for unitholders 2018 Organic Growth Capital Plan of 2.2 B Forecast 10% year-over-year distribution growth Expand portfolio of organic growth projects 5% Utica Financing strategy…
Natural Gas Supply Growth Forecast Marcellus/Utica Basin is the Leading Growth Play 45% of total U.S. growth is expected to occur in Northeast Total U.S. natural gas supply is Marcellus/Utica forecast to grow by 38 Bcf/d from 2017…
Our Priorities for Value Creation Maintain Top-tier Safety and Environmental performance Increase MPLX EBITDA through Attractive Midstream investments Aggressively Grow industry-leading Speedway retail business Enhance Margins…
Appendix 18
Strong Operational Performance and Responsible Corporate Leadership MPC facilities received from the American Chemistry Council 75% MPC has earned 56 Certificates of Excellence 3 Certificates of Honor 7 Certificates of…
2017 Citizenship Report Excerpts from opening comments from Gary R. Heminger, chairman and chief executive officer This year marks Marathon Petroleum Corporations 130th year of providing the most affordable, reliable and plentiful…
Perspectives on Climate-Related Scenarios Report Excerpts from opening comments from Gary R. Heminger, chairman and chief executive officer and Introduction section While we focus on providing you the returns you expect on your…
Strong Liquidity and Capitalization Provides financial flexibility to fund growth projects and pursue business strategies MPC Committed to maintaining investment MPC MPLX As of December 31, 2017 Excluding Consolidated Adjustments(a)…
Illustrative Impact to Refining & Marketing Segment Fuels Distribution and Refinery Logistics Dropdown Direct Operating Costs to exclude costs related to refining logistics assets Other R&M Expenses to include fees paid to MPLX…
First-Quarter 2018 Outlook Other Total Corporate Percent of Sour Crude Oil Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced Throughput and Major and Manufacturing Throughput* Feedstocks Throughput*…
MPLX Key Investment Highlights Diversified 30 billion market-cap MLP positioned to deliver attractive returns over the long term - forecast distribution growth of 10% for 2018 Largest processor and fractionator in the Marcellus/Utica…
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 Unit Price Valuation on Yield Basis 75 13% MPLX Distribution per Unit 70 12% 2017 Annual Distribution 2.30 65 11% Forecast 10% Distribution 2.53 60 Growth in 2018 WTI Price (/BBL) 10% 55 Yield % 9% 50 (1) MPLX…
MPLX Organic Growth Capital Projects Gathering and Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Sherwood IX Processing Plant(b) Marcellus 200 MMcf/d In…
MPLX Organic Growth Capital Projects Logistics and Storage Segment Est. Completion Projects Description Date Increasing pipeline capacity to 360 MBPD; provides crude sourcing Ozark Pipeline Expansion Mid-2018 optionality to Midwest…
MPLX Logistics & Storage Segment Overview High-quality, well-maintained assets that are integral to MPC Owns, leases, operates, or has interest in 4,500 miles of crude oil pipelines and 5,500 miles of Headquarters product pipelines…
MPLX 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…
MPLX 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 Gathering…
MPLX Marcellus/Utica Capacity Building Infrastructure to Support Processing & Fractionation Volume Growth Marcellus/Utica Processing Capacity 8 2018 plan increases processing capacity by 21% to 7 bcf/d Currently 65% of processing…
MPLX Northeast Operations Well-Positioned in Ethane Market Ethane demand growing as exports and steam cracker development continues Ohio Pennsylvania in Gulf Coast and Northeast Bluestone MPLX well-positioned to support producer…
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…
MPLX Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Achieved record 4Q 2017 volumes Available Average Gathered volumes of 2.7 Bcf/d Utilization Area Capacity Volume (%)(b) Processed volumes of 5.2…
MPLX Gathering & Processing Segment Marcellus & Utica Fractionation Commenced operations of second Fractionated Volumes(a) de-ethanization plant at Majorsville Available Average Utilization Area Capacity Volume Achieved record 4Q…
MPLX 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 112MMcf/d Gathering Gathering…
MPLX Expanding Southwest Position to Support Growing Production in High Performance Resource Plays Cana-Woodford Arkoma-Woodford Permian Hidalgo Complex 200 MMcf/d Permian Arapaho Complex Hickory Hills Basin Plant Blaine…
MPLX Gathering & Processing Segment Southwest Operations Achieved record 4Q 2017 volumes Processed Volumes(a) Gathered volumes of 1.5 Bcf/d Available Average Utilization Area Capacity Volume Processed volumes of 1.4 Bcf/d (MMcf/d)…
MPLX Gathering & Processing Contract Structure Durable long-term partnerships across leading basins Durable, long-term partnerships across leading basins Marcellus Utica Southwest Resource Play Marcellus, Upper Devonian Utica…
MPLX Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining investment (MM except ratio data) As of grade credit profile 12/31/17 Cash and cash equivalents 5 1.9 B of available liquidity at year end…
MPLX Long-term Value Objectives Deliver Sustainable Distribution Growth rate that provides attractive total unitholder returns Increase EBITDA through attractive investments and optimization of existing assets Execute and expand…
MPC and MPLXs Long-term Strategic Linkage MPLX was created in 2012 to grow MPCs midstream platform Assets and services provided by MPLX are integral to MPCs operations and MPC is MPLXs largest customer Earnings streams for…
Speedway Retail Network 64 235 12 305 116 123 311 489 60 Conn. Del. 1 4 Speedway 147 62 Mass. 109 Largest company-owned 42 277 N.J. 71 and -operated c-store chain 52 R.I. 19 4 east of the Mississippi 2,740 locations…
Speedy Rewards Loyalty Program Highly successful loyalty program Customers earn points on every purchase Customers redeem points for free merchandise and fuel discounts Averaged 6 million active Speedy Rewards members in 2017,…
Speedway Private Label Products Higher Sales Promotes and Margins Brand Awareness and Loyalty Better Value Proposition Differentiation for Consumers from Competitors 50
Balance in Refining Network BPCD NCI Canton (Ohio) 93,000 7.9 Catlettsburg (Ky.) 277,000 9.2 Detroit (Mich.) 139,000 9.7 Midwest Capacity 754,000 BPCD Robinson (Ill.) 245,000 9.5 Galveston Bay (Texas) 571,000 11.9 Garyville…
Accounting Treatment of Turnaround Costs MPC expenses turnaround costs Some of MPCs refining peers capitalize these costs including HollyFrontier, PBF Energy, Andeavor and Valero Impact of expensing versus capitalizing turnaround…
Key Strengths Balanced Operations During 2017 Crude Oil Refining Capacity Crude Slate 60% PADD II 59% Sour Crude 40% PADD III 41% Sweet Crude Assured Sales of Gasoline Production (Speedway + Brand + Wholesale Contract…
U.S. Crude Inventory Surplus Largely Gone Crude Inventories Crude Days of Supply + Exports 550 34 32 500 30 450 28 MMB Days 26 400 24 350 22 20 300 18 M M Nov Sep Oct Jun Jan Feb Jul Aug Apr…
U.S. Product Inventories Support Constructive Market Outlook Gasoline Days of Supply + Exports Distillate Days of Supply + Exports 30 36 34 28 32 26 30 Days Days 28 24 26 22 24 22 20 20 May Mar Nov Sep Oct Jan…
Gasoline Exports Enhance Utilization U.S. Total Gross Gasoline Exports Gasoline exports have expanded 1300 opportunity set for U.S. refiners 1100 Summer exports tend to be lower 900 MBD than winter as more product is 700…
U.S. Product Exports Will Help Meet Global Demand EIAs 2018 Annual Energy EIA Annual Energy Outlook Product Exports Outlook 8 Forecast Projects growth in U.S. 7 product exports including 6 gasoline, diesel and propane 5 U.S.…
U.S. Refiners Have Sustained Export Advantages Lower-cost natural gas 2016 Large, complex refineries Region Utilization Rate(1) Access to lower-cost feedstocks North America 85% High utilization rates MPC 95% Sophisticated…
Export Market Remains Robust Demand from Latin America for both diesel and MPC Export Capacity gasoline expected to remain strong (MBPD) 510 While arbitrage to Europe for diesel is not 115 395 always open, occasional opportunities…
Distillate Leading World Liquids Demand Average Annual Volumetric 120 Forecast Growth (MBPD) 2016 vs. 2030 100 +440 80 Other -100 MMBD 60 Resid +475 40 Middle Distillate 20 Gasoline +170 0 Sources: BP Statistical…
Middle Distillates Lead U.S. Domestic Petroleum Fuels Demand 10 Gasoline Forecast Compounded Annual Middle distillates (diesel + jet 9 Growth Rates fuel) expected to lead U.S. 8 -1.8% domestic fuels demand growth Gasoline ex…
Sustained Global Demand Growth Expect global oil demand Global Oil Demand 115 2.0 growth to be sustained near Global Oil & Liquids Demand (MMBD) Forecast current levels 110 YOY Demand Growth (MMBD) 1.5 Rising global…
Galveston Bay World-Class Refining Complex Galveston Bay and Texas City refineries merged into a single refining complex during 2017 Galveston Bay Unit Capacities BPCD* Crude 611,000 Resid 142,000 Catalytic…
MPC Capital Expenditures & Investments (MM) 2017 Revised 4Q 2017 2017 2018 Outlook Plan Refining & Marketing (R&M) 1,085 262 832 950 Speedway 380 160 381 530 Midstream, including MPLX(a) 2,115 488 1,756 2,405 Corporate and…
MPLX Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income (MM) 4Q 2015(4) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Net income (loss) 42 (14) 72 194 182 187 191 217 241 (1)The Partnership makes a…
MPLX 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, Dec 31, (MM) 2015 2016 2016 2016 2016 2017 2017 2017…
MPC Reconciliation Adjusted EBITDA to Net Income Attributable to MPC (MM) 2017 LTM 1Q 2Q 3Q 4Q Net Income attributable to MPC 30 483 903 2,016 3,432 Less: Net interest and other financial income (costs) (150) (158) (157) (160)…
MPLX Reconciliation Adjusted EBITDA Related to MPLX to MPLX Net Income(a) (MM) 2017 LTM 1Q 2Q 3Q 4Q MPLX Net Income 187 191 217 241 836 Less: Net interest and other financial income (costs) (78) (87) (93) (96) (354) Add:…
Reconciliation of Speedway Total Margin to Speedway Income from Operations (MM) 2013 2014 2015 2016 2017 (a) Fourth-quarter and year-to-date 2017 margin and expenses do not reflect any results from the Speedway income from operations…
Speedway Reconciliation Segment EBITDA to Segment Income from Operations (MM) 2016 2017 Speedway Income from Operations 734 732 Plus: Depreciation and Amortization 273 275 Speedway Segment EBITDA 1,007 1,007 71
MPC Annual Price and Margin Sensitivities Refining and Marketing Segment MM (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity 590 (per 1.00/barrel change) Sweet/Sour Differential** Sensitivity 300 (per 1.00/barrel change) LLS-WTI…
MPCs Fully Integrated Downstream System Refining & Marketing Six-plant refining system with 1.9 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market area…
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