Barclays CEO Energy-Power Conference New York City Sept. 2014 www.magellanlp.com NYSE: MMP
Structure = Competitive Advantage Investment grade MLP with no incentive distribution rights Provides MMP a competitive advantage with one of the lowest costs of capital in the MLP space Public 100% LP Magellan Midstream…
Refined Products Longest refined products pipeline system, primarily transporting gasoline and diesel fuel, with 9,500 miles, 54 terminals and 42mm barrels of storage Profit driven by throughput volume and tariffs Tariff increase…
Marine Storage 5 storage facilities with 27mm barrels of aggregate storage, supported by long-term agreements Profit driven by amount of storage leased Strong demand due to market structure, pricing volatility and connectivity…
Crude Oil 1,100 miles of active crude oil pipelines, substantially backed by long-term throughput commitments 18mm barrels of total crude oil storage supported by lease agreements, including one of the largest storage providers in…
Primarily Fee-Based Business Expect Future Fee-Based, Low Risk Activities to Comprise 85% or More of Operating Margin ytd 2Q14 Results* Leased storage Fee-based ancillary 15% services 9% Terminal delivery fees Transportation…
Growth in Expansion Capital Spending Over the last 10 years, Magellan has invested 3.7 billion in acquisitions and organic growth projects Expect to spend 1.2 billion from 2014 - 2016 to finish construction projects currently…
Significant Future Growth from Crude Oil Projects While refined products assets generate the largest portion of our financial results, Magellans growing crude oil asset profile continues to provide springboard for additional crude…
Longhorn Pipeline Current capacity of 275k bpd; averaged 250k bpd during 2Q14 Pipeline fully subscribed under long-term agreements 10% of capacity reserved for spot shippers 430mm combined capital spending 3x EBITDA multiple Adding…
BridgeTex Pipeline Largest organic growth project in Magellans history: 625mm for MMPs share of capital spending 50/50 joint venture with Occidental Petroleum 300k bpd pipeline capacity; expect to begin pipeline shipments to Houston…
Permian a Key Focus Area for Magellan Incremental pipeline capacity (000 bpd) Permian 110 Sunoco West Texas Gulf 2012 2019 150 Sunoco Permian Express I Growth: 200 Sunoco Permian Express II +1,117k bpd 250 Plains Cactus 275…
Houston Crude Oil Connectivity Magellans Houston distribution network is the most comprehensive system to deliver crude oil to the Houston Gulf Coast area Access to all domestic inbound crude production Delivery capabilities…
Eagle Ford Joint Venture JV with Kinder Morgan to transport condensate from the Eagle Ford shale 195-mile, 100k bpd Double Eagle pipeline Delivers to Magellans Corpus Christi terminal JV currently constructing 10-mile pipeline to…
Condensate Splitter With restrictions on crude oil exports, investments in condensate splitters on the Gulf Coast are needed to handle the influx of LPG NGL Market Eagle Ford production Light Naphtha Replacement for Even with…
Corpus Christi Condensate Splitter Magellan plans to construct a 50k bpd condensate splitter at our Corpus Christi terminal Fee-based project, fully committed with long-term take-or-pay agreement with Trafigura 250mm spending: 65%…
Little Rock Pipeline Midcontinent refiners do not currently have access to Little Rock via pipeline Our pipeline system extends to Ft. Smith, AR at this point Magellan plans to deliver refined products to the Little Rock market from…
2013 Refined Products Pipeline Acquisition Acquired 800 miles of refined petroleum products pipeline for 190mm during second half of 13 July 2013: New Mexico pipeline system 250 miles of pipeline Nov. 2013: Rocky Mountain…
Distribution Growth Trend Proven history of distribution growth with 49 quarterly increases to date Targeting 20% annual distribution growth for 2014 and 15% for 2015 (per MMP unit) 2.62 0.56 2001 2002 2003 2004 2005 2006…
Conservative Financial Profile Committed to maintaining solid investment grade rating Currently, one of the highest-rated MLPs at BBB+ / Baa1 Targeting distribution coverage of at least 1.1x on long-term basis Expect coverage…
Magellan Summary Proven history of exceptional returns and distribution growth Straight-forward, low risk, stable business model Forecasted record distributable cash flow generation with strong distribution coverage…
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