National Association of Publicly Traded Partnerships MLP Investor Conference Ponte Vedra Beach, FL May 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 2013 Results* Leased storage 18% Fee-based ancillary services 9% Transportation 51% Terminal delivery…
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 1.1 billion from 2014 - 2016 to finish construction projects currently…
Significant Future Growth from Crude Oil Projects While refined products generates the largest portion of our financial results, Magellans growing crude oil asset profile provides a springboard for additional crude oil opportunities…
Longhorn Pipeline 225k bpd capacity now operational, currently increasing to 275k bpd Pipeline fully subscribed under long-term agreements 10% of capacity available for spot shippers 430mm combined capital spending 3x EBITDA…
BridgeTex Pipeline Largest organic growth project in Magellans history: 600mm for MMPs share of capital spending 50/50 joint venture with Occidental Petroleum 300k bpd pipeline capacity; expect to be operational mid-3Q14 8x EBITDA…
Permian a Key Focus Area for Magellan Incremental pipeline capacity (000 bpd) Permian 110 Sunoco West Texas Gulf 2012 2030 150 Sunoco Permian Express I Growth: 200 Sunoco Permian Express II +1,130k bpd 250 Plains Cactus 275…
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 Fully operational at this point Recently…
Condensate Splitter With restrictions on crude oil exports, investments in condensate splitters on the Gulf Coast are LPG NGL Market needed to handle the influx of Light Eagle Ford production Naphtha Replacement for Natural…
Corpus Christi Condensate Splitter Magellan recently announced construction of a 50k bpd condensate splitter at our Corpus Christi terminal Fee-based project, fully committed with long-term take-or-pay agreement with Trafigura…
Little Rock Pipeline Magellan recently announced plans to deliver refined products to the Little Rock market in early 2016 Midcontinent refiners do not have access to Little Rock via pipeline Our pipeline system currently extends to…
Recent Refined Products Pipeline Acquisition Recently acquired 800 miles of refined petroleum products pipeline for 190mm Acquired July 2013: New Mexico pipeline system 250 miles of pipeline Acquired Nov. 2013: Rocky Mountain…
Distribution Growth Trend Proven history of distribution growth with 48 quarterly increases Targeting 20% annual distribution growth for 2014 and 15% for 2015 (per MMP unit, annualized) 2.45 0.56 2001 2002 2003 2004 2005…
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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