NYSE: MMP Morningstar Investor Conference Chicago Nov. 8, 2018
Straight-Forward Business Model Investment grade MLP with no incentive distribution rights Provides MMP a simple organizational structure and one of the lowest costs of capital in the MLP space Solid governance, including independent…
Refined Products Longest refined petroleum products pipeline system in the U.S., primarily transporting gasoline and diesel fuel, with 9,700 miles, 53 terminals and 44mm barrels of storage Profit driven by throughput volume and…
Crude Oil Segment Map 2,200 miles of crude oil pipelines, substantially backed by long-term throughput commitments 33mm barrels of total crude oil storage, including 21mm barrels used for contract storage One of the largest storage…
Marine Storage Segment Map 5 storage facilities with 26mm barrels of aggregate storage and 1.4mm bpd of dock capacity Utilization rates historically greater than 90% Strong demand due to market structure, pricing volatility and…
Primarily Fee-Based Business Expect Future Fee-Based, Low Risk Activities to Comprise 85%+ of Operating Margin ytd 3q18 Results* Contract storage Fee-based ancillary 17% services 7% Transportation Terminal delivery fees 64%…
Growth in Expansion Capital Spending Over the last 10 years, Magellan has invested 5.4 billion in organic growth projects and acquisitions Historically made a few strategic acquisitions that served as platforms for future growth…
Seabrook Logistics = Crude Export Solution 50/50 joint venture with LBC Tank Terminals Currently operational: 2.4mm bbls of crude oil storage, Aframax dock with 300k bpd capacity + connectivity to MMPs Houston crude oil distribution…
Pasadena Marine Terminal Joint Venture 50/50 joint venture with Valero Energy to construct new marine terminal on 200 acres in Pasadena, TX Phase 1: 1mm bbls of storage and a Panamax-capable dock; expect to be operational by Jan.…
Delaware Basin Crude Oil Pipeline Constructing 60-mile, 24-inch crude oil and condensate pipeline between Wink and Crane, Texas with capacity up to 600k bpd Pipe ordered and expected to arrive this month, construction to begin by…
East Houston-to-Hearne Pipeline Constructing 135-mile, 20-inch refined petroleum products pipeline from East Houston to Hearne, Texas Provides incremental 85k bpd of capacity, or nearly 50% increase to service Magellans Texas,…
West Texas Refined Products Pipeline Expansion Expanding capacity of western leg of Texas refined products pipeline system from current 100k bpd to 175k bpd, supported by long-term customer commitments Construction of 140-mile,…
Permian Gulf Coast Crude Oil Pipeline Joint Venture JV to be owned by Energy Transfer, Magellan, MPLX and Delek US Sufficient commitments to proceed with construction of new 600-mile, 30-inch pipe to transport crude oil from the…
Potential Expansion Projects Magellan has continually been able to keep its potential growth project list well in excess of 500mm even as projects are completed and placed into service Healthy mix of refined products and crude oil…
Distribution Growth Trend Proven history of distribution growth Targeting approx. 8% annual distribution growth for 2018 with 1.2x+ coverage Going forward, plan to manage distribution growth consistent with DCF growth projections of…
Credit Profile Remains Strong Committed to maintaining solid balance sheet One of the highest-rated MLPs at BBB+ / Baa1 Long-standing target maximum leverage ratio of < 4x (below 3x at 9/30/18) Consistent with rating agencies…
Keys to Magellans Proven and Future Track Record Stability of underlying businesses Continuing to grow fee-based activities, managing for the long term through various business cycles Disciplined and opportunistic investments,…
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