Mplx Lp · NYSE:MPLX

Mplx Lp — Corporate Update (January 2017)

13 slides from Mplx Lp's corporate update, Jan 3, 2017

  1. Slide 1: Update on Strategic Actions to Enhance Shareholder Value

    Update on Strategic Actions to Enhance Shareholder Value January 3, 2017

  2. Slide 2: Forward-Looking Statements

    Forward‐Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation ("MPC") and MPLX LP ("MPLX").These forward-looking statements relate to, among other things, expectations, estimates and projections

  3. Slide 3: Update on Strategic Actions to Enhance Shareholder Value

    Update on Strategic Actions to Enhance Shareholder Value 3 1) Significantly accelerated dropdowns, to be done as soon as practicable (expected in 2017), subject to requisite approvals and regulatory clearances, including tax  MPC expects to dropdown assets generating ~$1.4 billion of EBITDA to MPLX

  4. Slide 4: MPC to Dropdown All ~$1.4 Billion MLP-Qualifying EBITDA to MPLX As Soon As Practicable

    MPC to Dropdown All ~$1.4 Billion MLP-Qualifying EBITDA to MPLX As Soon As Practicable (Expected in 2017) 4 MPC expects to dropdown assets generating ~$1.4 billion of MLP-eligible annual EBITDA to MPLX as soon as practicable (expected in 2017), subject to requisite approvals and regulatory clearance

  5. Slide 5: All Dropdowns Expected to Be Done by End of 2017

    All Dropdowns Expected to Be Done by End of 2017 5  Dropdown of ~$250 million of annual EBITDA – expected to close in first quarter 2017  Dropdown of ~$350 million of annual EBITDA – expected to close by the end of fourth quarter 2017  Dropdown of ~$800 million of annual EBITDA, including the fue

  6. Slide 6: MPC Expects to Offer IDRs to MPLX in Exchange for MPLX LP Units in 2017

    MPC Expects to Offer IDRs to MPLX in Exchange for MPLX LP Units in 2017 6  With the assistance of independent financial advisors, MPC completed its initial evaluation of strategic alternatives to highlight and capture the value of its general partner interests in MPLX while optimizing MPLX’s cost o

  7. Slide 7: Strategic Actions to Provide Significant Cash to MPC for Return to Shareholders and Debt Paydown

    Strategic Actions To Enhance Shareholder Value Significant Cash to MPC for Return to Shareholders and Debt Paydown 7 1 2  Dropdown transactions will result in a substantial amount of cash to MPC at close; additional cash would be generated through ongoing distributions from MPLX – Dropdowns are exp

  8. Slide 8: Strategic Actions Benefits for MPLX

     The combination of dropdowns and GP/IDR buy-in is anticipated to lower MPLX’s cost of capital going forward – Dropdowns enhance distribution growth – GP/IDR buy-in removes IDR burden and lowers equity cost of capital  The strategic actions are projected to provide DCF accretion and allow MPLX to

  9. Slide 9: Strategic Actions to Total Midstream Value to MPC After Strategic Plan

    1 2 Strategic Actions To Enhance Shareholder Value Total Midstream Value to MPC After Strategic Plan Note: Value per share amounts calculated based on an assumed 528 million outstanding MPC shares (1) Assumes ~$1.4 billion of EBITDA dropped to MPLX at ~7.0x - 9.0x; financed 50% with debt (~5.0% inte

  10. Slide 10: MPC Will Conduct Full and Thorough Review of Speedway

    MPC Will Conduct Full and Thorough Review of Speedway  In keeping with MPC’s practice of evaluating shareholder value creation, an MPC Board special committee will conduct a full and thorough review of Speedway’s strategic and financial alternatives – Review to include a tax-free separation of Spee

  11. Slide 11: MPC Continues Its Focus on Long-Term Value Creation

    Consistent with Its Demonstrated Track Record, MPC Continues Its Focus on Long-Term Value Creation MPC and its Board of Directors continually analyze opportunities to enhance value and are confident that the MPC plan is the right course Proven Commitment to Enhancing Shareholder Value – 2011 spinout

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: MPC Has an Extensive Suite of MLP-Qualifying Assets ~$1.4 Billion of Estimated Annual EBITDA

    MPC Has an Extensive Suite of MLP-Qualifying Assets ~$1.4 Billion of Estimated Annual EBITDA  Equity in 50/50 blue water JV with Crowley  61 light product; ~20 MMBBL storage; 187 loading lanes  18 asphalt; ~4 MMBBL storage; 68 loading lanes  Utica investments (crude & condensate trucking and tru

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