NYSE: MMP Wells Fargo Midstream Symposium New York City Dec. 11, 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 Target distribution coverage…
Straight-Forward Governance and Organization Investment grade MLP with no incentive distribution rights Strong governance, with all board members elected by the public 8 of 9 board members are independent Public 100% LP…
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 facilities with 27mm barrels of aggregate storage and 1.8mm bpd of dock capacity Utilization historically greater than 90% and expected to remain strong overall Demand for services a function of commodity…
Primarily Fee-Based Business Expect Future Fee-Based, Low Risk Activities to Comprise 85%+ of Operating Margin 2018 Annual Results* Contract storage Fee-based ancillary 16% services 7% Terminal delivery fees Transportation 5%…
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 New 135-mile, 20-inch refined petroleum products pipeline from East Houston to Hearne, Texas Provides incremental 85k bpd of capacity to meet demand in Magellans Texas and Midcontinent markets…
West Texas Refined Products Pipeline Expansion Expanding capacity of western leg of Texas refined products pipeline system from current 100k bpd to 175k bpd Construction of 140-mile, 20-inch pipe from Hearne to Alexander enables…
Seabrook Logistics Offers 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…
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 Continue to assess opportunities in all of our…
Distribution Growth Trend Proven history of distribution growth driven by strong returns on invested capital, very limited equity issuances On target for 5% annual distribution growth for 2019 Targeting annual distribution coverage…
Credit Profile Remains Strong Committed to maintaining solid balance sheet One of the highest-rated midstream companies at BBB+ / Baa1 Long-standing target maximum leverage ratio of < 4x debt-to-EBITDA Consistent with rating agencies…
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