NYSE: MMP Raymond James Institutional Investor Conference Orlando March 2019
MMP Investment Highlights Essential U.S. petroleum midstream infrastructure Straight-forward primarily fee-based business model Proven history of strong returns on invested capital and cash flow growth Healthy distribution…
Straight-Forward Governance and Organization Investment grade MLP with no incentive distribution rights Independent board elected by limited partners Public 100% LP Magellan Midstream Partners, L.P. (NYSE: MMP) Refined…
Refined Products Segment Longest refined petroleum products pipeline system in the U.S., primarily transporting gasoline and diesel fuel, with 9,700 miles, 53 terminals and 45mm barrels of storage Profit driven by throughput volume…
Crude Oil Segment 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 6 storage facilities with 27mm barrels of aggregate storage and 1.5mm bpd of dock capacity Storage utilization historically greater than 90% and expected to remain strong overall Demand for services a function…
Primarily Fee-Based Business Expect Future Fee-Based, Low Risk Activities to Comprise 85%+ of Operating Margin 2018 Results* Contract storage Fee-based ancillary 16% services 7% Terminal delivery fees Transportation 5% 63%…
Growth in Expansion Capital Spending Over the last 10 years, Magellan has invested 5.8 billion in expansion projects Historically made a few strategic acquisitions that served as platforms for future organic growth and continuously…
Pasadena Marine Terminal Joint Venture 50/50 joint venture with Valero Energy to construct new marine terminal on 200 acres in Pasadena, TX Currently operational: 1mm bbls of storage and a Panamax-capable dock Under construction: 4mm…
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,…
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…
Permian Gulf Coast Crude Oil Pipeline Joint Venture JV to be owned by Energy Transfer, Magellan, MPLX and Delek US Construction of a new 600-mile, 30-inch pipe to transport crude oil from the Permian Basin to ETs Nederland terminal…
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 driven by strong returns on invested capital, very limited equity issuances Targeting 5% annual distribution growth for 2019, with annual distribution coverage of at…
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 (3x at 12/31/18) Consistent with rating agencies expectations…
MMP Investment Highlights Essential U.S. petroleum midstream infrastructure Straight-forward primarily fee-based business model Proven history of strong returns on invested capital and cash flow growth Healthy distribution…
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