Agenda COVID-19 response DCF sensitivity analysis Update on liquidity and leverage Closing remarks www.magellanlp.com NYSE: MMP 3
COVID-19 response All of our facilities are operational Quickly implemented centralized organizational response team All personnel able to work from home are doing so All potentially exposed personnel have been or will be…
DCF sensitivity analysis in millions Original 2020 DCF guidance * 1,200 *Distributable Cash Flow (DCF) is a non-GAAP Potential impacts from virus and crude oil price environment: metric. Please Lower blending margins & tenders…
Crude pipeline contracts 87% of Longhorn capacity committed in 2020 70% contracted from 2020 to 2024 Average remaining contract life of 7 years 80% of BridgeTex capacity committed Average remaining contract life of more than 4…
Customer credit update Crude oil revenues (1/3 of Refined products revenues (2/3 total) largely contract of total) primarily demand- dependent driven, customer credit not Mostly long-haul usually relevant transportation take-or- If…
Capital allocation No material changes to 2020 forecasted growth capex of 400 million Most spending relates to projects near completion and backed by take-or- pay commitments from creditworthy counterparties 210 million on Texas…
Capital allocation, contd Began opportunistically executing unit repurchases after 4Q19 earnings call Total of 3.63 million units repurchased to date Average price of 55.62, for total spend of 202 million Most repurchases completed…
Liquidity update Closed marine terminals sale (250 million) on 3/20 No borrowings currently outstanding on 1 billion revolver maturing in 2024, with 100 million in cash equivalents Based on current forecast including range of DCF…
Leverage update Next bond maturity is 550 million 4.25% notes due Feb 2021 Following maturity not until 2025 No committed growth capital projects beyond 2020 Current liquidity in place sufficient for all forecasted needs Based…
MMPs resilient business Temporary refined products demand impacts are affecting 2020, but we expect demand to return to normal quickly once virus subsides, and long-term refined products business remains strong Our crude oil…
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