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Raymond James Investor Conference – Andeavor

Andeavor · Mar 5, 2018 · 45 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. Raymond James Investor Conference – Andeavor – slide 1
    Creating Superior Value Go for Extraordinary 2018 Raymond James Institutional Investors Conference March 5, 2018
  2. Raymond James Investor Conference – Andeavor – slide 2
    Andeavors Competitive Position Leading integrated marketing, logistics and ANDV Refinery Terminalling Crude Basin Rail refining company in strategic footprint Anacortes Andeavor Trucking Pipelines Marine Kenai Well diversified…
  3. Raymond James Investor Conference – Andeavor – slide 3
    Our Integrated Business Feedstock Acquisition Inbound Logistics Refining & Processing Outbound Logistics Marketing & Sales Guiding Principles Strategic Priorities Shared Value Operational Efficiency & Effectiveness Value Chain…
  4. Raymond James Investor Conference – Andeavor – slide 4
    Environmental Health and Safety Driving to Destination Zero OSHA Recordable Incident Rate Refining A a .55 .27 .27 .22 .16 Reducing our Environmental Impact 2010-2014 2015 2016 2017 2016 AFPM Average Top Quartile Air…
  5. Raymond James Investor Conference – Andeavor – slide 5
    Strong Integrated Business Refining Capacity Stations Retail/Branded (MBD) Marketing Integration (%) 3,255 57 1,157 665 23 882 2010 2017 2010 2017 2010 2017 OSHA Recordable ANDV Enterprise Value ANDX Enterprise Value…
  6. Raymond James Investor Conference – Andeavor – slide 6
    PADD V Supply & Demand Finished Gasoline & Blending Components (MBD) Supply Demand Net Exports Inter-PADD Transfer 174 170 Supply 1,480 1,498 1,621 1,628 33 40 2016-2017 2018E 2016-2017 2018E 2016-2017 2018E Average Average…
  7. Raymond James Investor Conference – Andeavor – slide 7
    PADD V Market Fundamentals PADD V Gasoline Days of Supply Los Angeles 3-2-1 Crack Spread 30 ( per barrel) 5-Year 2018 25 Range 17.5 17.5 20 17.0 Supply Supply 2017 15 2016-2017 2018E 2019E 10 Average Jan Feb Mar Apr May Jun…
  8. Raymond James Investor Conference – Andeavor – slide 8
    Inland Markets 3-2-1 Northern Tier Crack Spread 3-2-1 Rockies Crack Spread 3-2-1 Southwest Crack Spread ( per barrel) ( per barrel) ( per barrel) 15.8 15.7 23.0 22.4 21.3 20.4 21.9 20.6 14.0 2016-2017 2018E 2019E 2016-2017…
  9. Raymond James Investor Conference – Andeavor – slide 9
    Growing Integrated Business (EBITDA* in billions) 2018 Consensus 2016 2017 18% West Coast Refining 25% Logistics Refining 29% 29% 22% 37% Logistics Inland Refining Marketing Marketing 23% 28% 32% 26% 6% 25% 2.4 2.6…
  10. Raymond James Investor Conference – Andeavor – slide 10
    2017 Business Performance (EBITDA* in millions, unless noted) 130 222 505 80 185 Market 100 2018C Synergies Impacts Acquisition & 2.6B 2.4B 359 370 Integration 4Q17 Costs Impacts Vancouver Business Energy & Market…
  11. Raymond James Investor Conference – Andeavor – slide 11
    2017 to 2018 EBITDA* Growth ( in millions, unless noted) 3.7B 100 Refining 185 Logistics 222 Marketing Synergies Vancouver 2.6B Permian 4Q17 Energy Acquisition Branded Fuel Major Impacts & Other Development & Integration Sales…
  12. Raymond James Investor Conference – Andeavor – slide 12
    Andeavors Journey to 2020 Advance a fully integrated fuel and convenience store marketing Marketing and wholesale business Expand customer-focused, full-service, diversified midstream Logistics business, strategically integrated into…
  13. Raymond James Investor Conference – Andeavor – slide 13
    Significant EBITDA* Growth by 2020 EBITDA* Composition EBITDA* Growth ( in millions) ( in billions) 2018E 2020E 6.6 7.0 Western Refining Synergies 320 Strategic Refining Capital Projects 175 4.6 Marketing 300 3.7 Logistics 580…
  14. Raymond James Investor Conference – Andeavor – slide 14
    Marketings Journey to 2020 Retail/Branded Volumes Increase retail & branded volumes by 10% Stations Expand to over 4,000 Convenience Enhanced offering, organic station growth, full year Margin impact from acquisitions, and MSO…
  15. Raymond James Investor Conference – Andeavor – slide 15
    Target Marketing EBITDA* in 2020 of 1.2 Billion ( in millions) 250 (250) 300 50 1.2B Improved Incremental Mexico Convenience Cost from Full & 0.86B Sales & Year of Other Margins Acquisitions Operational Fuels Growth in & Operating…
  16. Raymond James Investor Conference – Andeavor – slide 16
    Improving Fuel Volumes & Margins Full year benefit and synergies from Western & Fuel Volume Flyers Acquisitions & organic station (Million of Gallons) 2017 Fuel Margin* growth/rebranding 11,900 12,400 (cpg) - Increasing…
  17. Raymond James Investor Conference – Andeavor – slide 17
    Improved Convenience Sales & Profitability Station Count Station count to exceed 4,000 4,000+ 3,255 Full year benefits and synergies from 2,267 Western & Flyers acquisitions further enhance non-fuel sales and profitability 2014…
  18. Raymond James Investor Conference – Andeavor – slide 18
    Expanding Presence in Mexico Baja & Sonora Fuel Supply Chihuahua, Sinaloa and Baja Sur (MBD) Fuel Supply (MBD) 30+ 3 21 Los Angeles 2017 2020E 2017 2022 Potential Baja & Sonora Station Count Chihuahua, Sinaloa and Baja Sur…
  19. Raymond James Investor Conference – Andeavor – slide 19
    Logistics Journey to 2020 Growth Execute at least 1 billion of annual high-return growth Investments investments Permian Grow EBITDA* contribution to 200+ million Bakken Deliver 80+ million of annual EBITDA* contribution from…
  20. Raymond James Investor Conference – Andeavor – slide 20
    Logistics EBITDA* of 1.6 Billion in 2020 ( in millions, unless noted) 350+ 1.6B + 50 70 1.2 1.3B 140 150 40 60 Identified Growth: Terminalling & Gathering & 1.0B Processing: Permian Growth, Transportation: including Conan Full…
  21. Raymond James Investor Conference – Andeavor – slide 21
    Significant Organic Project Portfolio North Dakota NGL Logistics Hub Anacortes 140 150 (Capex in millions) Bakken Gathering Projects 60 90 Dickinson Mandan St. Paul Park Martinez Salt Lake City LA Refinery Interconnect…
  22. Raymond James Investor Conference – Andeavor – slide 22
    Differentiated Permian Position Four Corners Gathering Cost and capability advantages in the Northern Delaware Basin New Mexico Texas Inter-basin pipeline transportation for Gallup major gathering systems TexNew Mex System…
  23. Raymond James Investor Conference – Andeavor – slide 23
    Conan Crude Oil Gathering System Expected online 3Q 2018 Conan Gathering TexNew Mex System Expected EBITDA* 30 40 million System Connectivity with multiple long-haul pipelines from new To Midland terminal in Loving County, Texas…
  24. Raymond James Investor Conference – Andeavor – slide 24
    Positioned to Capture Expected Production Growth in Delaware Basin Midland Significant production growth expected Delaware in Delaware basin 2017 2020 Basin Basin Conan Potential opportunities: Gathering 4 6 7 8 System Crude oil…
  25. Raymond James Investor Conference – Andeavor – slide 25
    Potential Dropdown Portfolio Description Estimated EBITDA* ( in millions) Refinery tankage, rail loading and unloading, Refinery truck racks, refinery gate pipelines and 115+ Infrastructure petroleum coke handling Logistics…
  26. Raymond James Investor Conference – Andeavor – slide 26
    Refinings Journey to 2020 Major Capital Projects Deliver over 175 million in annual EBITDA* Capture 200 million of additional Refining and Synergies Commercial synergies by 2020 Operational Improve productivity, efficiency and…
  27. Raymond James Investor Conference – Andeavor – slide 27
    Major Capital Projects Potential Mixed Xylenes Project Approved Strategic Capital Projects ( in millions) 300 Anacortes Potential Renewable Diesel Project EP Energy JV Anacortes Isomerization Isomerization 110 Dickinson Mandan…
  28. Raymond James Investor Conference – Andeavor – slide 28
    Driving Reliability and High Utilization Process Unit Availability (%) Utilize Operations Excellence Management System to: 96 96 95 96 98 96 Build upon mechanical integrity programs and capability development Continue process unit…
  29. Raymond James Investor Conference – Andeavor – slide 29
    Maximizing Availability through Focused Investment Program Turnaround Spend Refining Sustaining Capital Spend ( in millions) ( in millions) 575 560 548 525 480 500 450 350 2017 2018E 2019E 2020E 2017 2018E 2019E 2020E…
  30. Raymond James Investor Conference – Andeavor – slide 30
    Renewable Fuels Opportunities Dickinson Renewable Diesel Renewable diesel facility to supply product to Novel catalytic based technology to produce high California octane renewable gasoline Renewable feedstock made from municipal…
  31. Raymond James Investor Conference – Andeavor – slide 31
    Deliver Western Refining Synergies Western Refining Annual Annual run-rate synergies of 190 ( in millions) Synergies million as of 2017 Marketing 50 2017 in-year synergies of 80 Logistics 20 million Refining 200 One-time cash…
  32. Raymond James Investor Conference – Andeavor – slide 32
    Improving Corporate Expense by 2020 ( in millions) 683 Vancouver Synergies Full Year Western Energy Western Refining Synergies Acquisition 550 575 Western & Integration Vancouver Refining Costs Energy Overhead & Other 450…
  33. Raymond James Investor Conference – Andeavor – slide 33
    Financial Principles & Capital Allocation Key Metrics Ample Maintain strong liquidity position to allow for 3 4 billion available liquidity at ANDV Liquidity execution of growth plans 1 2 billion available liquidity at ANDX…
  34. Raymond James Investor Conference – Andeavor – slide 34
    2018 2020 Capital Expenditure Plan ( in millions) Andeavor 2017 2018E 2019E 2020E Andeavor Logistics 2017 2018E 2019E 2020E Maintenance Capital 592 410 380 420 Net Maintenance Capital 77 75 80 90 Regulatory Capital 138 180 125 130…
  35. Raymond James Investor Conference – Andeavor – slide 35
    ANDX Capital Investment and Funding Plan 2018 2020 Capital Plan ( in millions) 3,300 3,300 Targets ( in billions, unless noted) Maintenance Hybrid/ANDV Equity Maintenance Dropdowns ANDV Equity Annual Growth Capital 1.0+ Potential…
  36. Raymond James Investor Conference – Andeavor – slide 36
    2018 2020 Plan Delivers Significant Cash Flow 2018E-2020E ANDV Cumulative ANDV Cash Flow Generated ( in billions) Cash Flow Deployment Complete Share Additional 13.5 Repurchase Cash 10 - 12 Plan & Grow Generated Cash from…
  37. Raymond James Investor Conference – Andeavor – slide 37
    Andeavor
  38. Raymond James Investor Conference – Andeavor – slide 38
    Appendix Andeavor 38
  39. Raymond James Investor Conference – Andeavor – slide 39
    Non-GAAP Financial Measures Our management uses certain non-GAAP operational measures to analyze operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our…
  40. Raymond James Investor Conference – Andeavor – slide 40
    Non-GAAP Reconciliations (in millions) Unaudited EBITDA Reconciliation Business Acquisition & Vancouver 2016 LCM Benefit Western Acquisition Improvements Synergies Market Impacts Integration Costs 4Q17 Impacts Energy & Other 2017 Net…
  41. Raymond James Investor Conference – Andeavor – slide 41
    Non-GAAP Reconciliations (in millions) Unaudited Andeavor Growth Strategy Projected EBITDA 2018E-2020E Strategic Refining Marketing Segment Logistics Segment Refining Segment Western Synergies Capital Projects Growth Growth Growth Total…
  42. Raymond James Investor Conference – Andeavor – slide 42
    Non-GAAP Reconciliations (in millions) Unaudited Projected Logistics Segment EBITDA Terminalling and WNRL and Synergies Transportation Permian and Bakken 2018E Projected Additional 2020E Projected 2018E-2020E Western Logistics 2017…
  43. Raymond James Investor Conference – Andeavor – slide 43
    Non-GAAP Reconciliations (in millions) Unaudited Projected Refining Segment EBITDA Reconciliation Refining Special Other Refining Toal 2020E Projects Growth Refining Growth Projected Refining Segment Operating Income 1,590 142 143 285…
  44. Raymond James Investor Conference – Andeavor – slide 44
    Non-GAAP Reconciliations (in millions) Unaudited Projected EBITDA 2019E LA Refinery Integration and EP Energy Joint Anacortes Compliance Project Venture Isomerization Total Projected Net Earnings 10 12 9 31 Add: Depletion,…
  45. Raymond James Investor Conference – Andeavor – slide 45
    Non-GAAP Reconciliations Marketing Margin (in millions) Unaudited Reconciliation (in millions) Unaudited Projected Marketing Margin Reconciliation 2017 2020E 2022E Segment Operating Income 788 Projected Segment Operating Income 1,045…

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