Mplx Lp · NYSE:MPLX
Mplx Lp — UBS Midstream, MLP and Utilities Conference 2019
40 slides from Mplx Lp's conference presentation, January 2019
Slide 1: UBS Midstream, MLP and Utilities Conference
UBS Midstream, MLP and Utilities Conference January 2019
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding MPLX LP (MPLX). These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations, str
Slide 3: Roadmap to Creating Superior Value
Roadmap to Creating Superior Value Capture Full Enhance Grow in Leverage Financial Midstream Cash Flow Premier MPC Priorities Value Chain Stability Basins Relationship Participate across Long-haul pipelines Permian: Fosters growth Self-funding value chain to add stable cash flow significant growth o
Slide 4: Key Investment Highlights
Key Investment Highlights Diversified large-cap MLP positioned to deliver attractive returns over the long term Logistics & • Expanding third-party business and delivering industry solutions Storage • Supports extensive operations of largest U.S. refiner Gathering & • Largest processor and fractiona
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity 1,000 1.60 Attractive returns for unitholders $937 $867 – Forecast 10% distribution growth in 2018 900 – Expect $0.01 per unit increase each quarter in 2019(a) 800 $760 1.50 Gathering & Processing provides attractive growth Coverage Ratio x 700 opportunities $56
Slide 6: U.S. Production Growth Creates Midstream Opportunities
U.S. Production Growth Creates Midstream Opportunities Strong production growth in crude, natural gas, and natural gas liquids will require additional infrastructure to link supply to global demand markets. Pipelines, processing, fractionation and export facilities will be needed to allow producers
Slide 7: Capturing The Full Midstream Value Chain
Capturing The Full Midstream Value Chain Feedstock Acquisition Inbound Logistics Refining & Processing Outbound Logistics Marketing & Retail Diversification enhances opportunities for revenue capture Integration enables capture of stable fee-based revenue across the value chain Developing asse
Slide 8: Capturing Permian Opportunities: Follow the Molecule
Capturing Permian Opportunities: Follow the Molecule Creating an integrated footprint from Legend Crude the Permian to the Gulf Coast NGL Natural Gas 1 Gathering and processing Delaware & Midland Basins TEXAS 2 Long-haul pipelines 1 3 Fractionation 2 3 4 4 Export terminals 8
Slide 9: Permian G&P Feeds Downstream Opportunities
1 Permian G&P Feeds Downstream Opportunities G&P assets create significant growth opportunities in the Permian 1 Legend Crude pipeline Natural gas pipeline NGL pipeline Preakness Torñado Crude gathering Existing processing plant Future processing plant Argo Apollo To Texas City area Hidalgo Natural
Slide 10: Permian Crude Long-Haul Pipelines
2 Permian Crude Long-Haul Pipelines Investments in long-haul pipelines generate stable, fee-based midstream income and also help lower feedstock costs tor MPC refineries Gray Oak Pipeline (MPC Project) – MPC, Diamondback Energy, PSXP Midland TEXAS – ~850 mile, 30-inch diameter Wink – Anticipate in
Slide 11: Permian Natural Gas Long-Haul Pipeline
2 Permian Natural Gas Long-Haul Pipeline Expand our value chain by connecting growing natural gas production to demand from MPC refineries and global export markets Whistler Pipeline – MPLX, Targa, White Water Midstream, and potentially others Waha TEXAS – ~450 miles, 42-inch diameter – Capacity 2
Slide 12: Permian NGL Long-Haul Pipeline and Fractionation
2 Permian NGL Long-Haul Pipeline and 3 Fractionation Expand our value chain by connecting growing NGL production and developing new fractionation infrastructure in the Gulf Coast BANGL Pipeline (Belvieu Alternative NGL) – MPLX, White Water Midstream, and other partners TEXAS – ~400 mile, 24-inch d
Slide 13: Expanding Export Assets at Five Gulf Coast Locations
4 Expanding Export Assets at Five Gulf Coast Locations Export facilities create ability to generate third party revenue and meet global demand for crude, refined products, and NGLs Currently in service – Mt. Airy, LA: acquired in 3Q18 – LOOP: expansion with potential Capline reversal and Swordfish
Slide 14: L&S: Mt. Airy Export Terminal
L&S: Mt. Airy Export Terminal Strategically located on Mississippi River in close proximity to several refineries, including MPC’s Garyville refinery 4 MMBBL of third-party leased storage capacity, capability to expand storage capacity to 10 MMBBL 120,000 bpd export dock, permitted for constru
Slide 15: L&S: Swordfish Pipeline
L&S: Swordfish Pipeline Proposed crude oil pipeline running from St. James to Clovelly in Louisiana Jointly developed: MPLX and Crimson Midstream Binding open season to assess shipper interest commenced on October, 17, 2018 Pipeline would provide shippers access to storage services, vessel l
Slide 16: Logistics & Storage
Logistics & Storage Segment Overview High-quality, well-maintained assets that are integral to MPC Transports, stores, distributes and markets crude oil and refined petroleum products Stable cash flows with fee-based revenues and minimal direct commodity exposure Fuels Pipelines Refining Termi
Slide 17: Fuels Distribution Overview
Fuels Distribution Overview Extensive Range of Scheduling and Marketing Services that Support MPC’s Refining and Marketing Operations Services Description Scheduling Annual EBITDA ~$600 MM Supply and demand balancing Third-party exchange, terminaling and storage Acquired Feb. 1, 2018 from MPC
Slide 18: Crude Oil Pipelines
Crude Oil Pipelines Strategically positioned to support diverse and flexible crude oil supply Owns, leases, operates, or has interest in: Crude Oil Pipeline Joint-Interest Ownership: ~4,500 miles of crude oil pipelines Bakken Pipeline System, 9.2% ownership, includes Dakota Access Pipeline and E
Slide 19: Product Pipelines
Product Pipelines Integrated network delivering refined products to key market areas Owns, leases, operates or has interest in: ~5,500 miles of product pipelines Strategically positioned to transport products from MPC refineries to MPC’s marketing operations Integrated with expansive network o
Slide 20: Refining Logistics Overview
Refining Logistics Overview Integrated Tank Farm Assets Supporting MPC’s Operations Tanks Racks ~56 MMBBL storage Multiple rail and truck loading racks Docks Gasoline Blending & Associated Piping Handle ocean- and river-going vessels Piping to connect process units, tank at Gulf Coast refine
Slide 21: Terminal and Storage Assets
Terminal and Storage Assets Terminal and Storage Assets Facilities provide flexibility and logistics optionality Long-term, fee-based storage and terminal services agreements with MPC 62 light product terminals with ~24 MMBBL of storage capacity Tank farms and caverns: – Own and operate 15 c
Slide 22: Marine Transportation Operations
Marine Transportation Operations Highly predictable income and cash-flow stream Transports refined products and crude oil on the Ohio, Mississippi, and Illinois rivers and their tributaries and inter-coastal waterways 256 barges, 20 towboats as of September 30, 2018 Operates full-service marin
Slide 23: Organic Growth Capital Projects
Organic Growth Capital Projects Logistics & Storage Segment Projects Description Est. Completion Date Ozark and Wood River-to-Patoka Increasing pipeline capacity to 360 MBPD; provides crude sourcing optionality to In Service Pipeline Expansions Midwest refineries Robinson Butane Cavern Displaces MPC
Slide 24: Gathering & Processing
Gathering & Processing Segment Overview • Ethane Raw Gathering • Propane Processing Mixed Fractionation NGL Natural Gas and • Normal Butane Plants NGLs Facilities Products • Isobutane Production Compression • Natural Gasoline Gathering Capacity C2 + Fractionation Capacity We are well-positioned in
Slide 25: Marcellus/Utica Overview
Marcellus/Utica Overview 3.8 Bcf/d Gathering, 6.6 Bcf/d Processing & 531 MBPD C2+ Fractionation Capacity Marcellus/Utica continues to be the largest natural OH PA gas basin in the U.S. Current producer demand Bluestone supports our buildout of incremental infrastructure: Hopedale Harmon Creek Foreca
Slide 26: Building Infrastructure to Support Processing & Fractionation Volume Growth
Building Infrastructure to Support Processing & Fractionation Volume Growth Marcellus/Utica Processing Capacity 8 2018 plan increases processing capacity by 21% to ~7 Bcf/d Currently ~65% of processing capacity in the Marcellus/Utica basin 6 2018 expected plant completions Bcf/d Harmon Creek 4 Houst
Slide 27: Gathering & Processing Segment: Marcellus & Utica Operations
Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Gathered volumes averaged 3.1 Bcf/d, Utilization of ~35% increase over 3Q 2017 Capacity at Average Available Area End of Quarter Volume Capacity Processed volumes averaged 5.5 Bcf/d, (MMcf/d) (MMcf/d) (%)(b) ~10% in
Slide 28: Gathering & Processing Segment: Marcellus & Utica Fractionation
Gathering & Processing Segment Marcellus & Utica Fractionation Fractionated Volumes(a) Achieved 3Q 2018 fractionated Utilization of Capacity at Average volumes of ~454 MBPD Area End of Quarter Volume Available Capacity (MBPD)(b) (MBPD) Achieved ~24% growth in quarterly (%)(c) fractionated volume
Slide 29: Southwest: Considerable Scale
Southwest: Considerable Scale 2.1 Bcf/d Gathering, 1.7 Bcf/d Processing & 29 MBPD C2+ Fractionation Capacity Western Oklahoma Processing Oklahoma Southeast Oklahoma Processing* 500MMcf/d 112MMcf/d Gathering Gathering 585MMcf/d 755MMcf/d Permian *Represents 40% of processing capacity through the Part
Slide 30: Expanding Position to Support Growing Production
Expanding Position to Support Growing Production Permian Cana-Woodford Arkoma-Woodford Permian Basin Arapaho Complex Hickory Hills Plant Hidalgo Complex Dewey Blaine Kingfisher 200 MMcf/d Delaware Rich-gasNewfield Basin pipeline STACK area Roger Mills of Custer operationsCanadian Caddo Tupelo Plant
Slide 31: Gathering & Processing Segment: Southwest Operations
Gathering & Processing Segment Southwest Operations Processed Volumes(a) Gathered volumes averaged 1.6 Bcf/d, ~14% increase over 3Q 2017 Capacity at Average Utilization of End of Available Area Volume Quarter Capacity Processed volumes averaged 1.5 Bcf/d, (MMcf/d) (MMcf/d) (%)(b) ~11% increase o
Slide 32: Recap: Gathering & Processing Contract Structure
Recap: Gathering & Processing Contract Structure Durable long-term partnerships across leading basins Marcellus Utica Southwest Resource Play Marcellus, Upper Devonian Utica Haynesville, Cotton Valley, Woodford, Anadarko Basin, Granite Wash, Cana- Woodford, Permian, Eagle Ford Producers Include Rang
Slide 33: 2018 Organic Growth Capital Projects
2018 Organic Growth Capital Projects Gathering & Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Marcellus/Utica Rich- and Dry-Gas Ongoing Sherwood 9 Processing Plant(b) Marcellus 200 MMcf/d In Service Gathering(a) Western O
Slide 34: 2019+ Announced Projects
2019+ Announced Projects Gathering & Processing Segment Continuing to execute on build out in both the Marcellus/Utica and Permian to meet industry needs Complex Name Location Capacity Est. Completion Date Sherwood 12 Processing Plant(a) Marcellus 200 MMcf/d 2019 Sherwood 13 Processing Plant(a) Ma
Slide 35: MPLX Outlook
MPLX Outlook 2019 Distribution Growth: expect $0.01 per unit increase each quarter(1) Forecast (1), excluding acquisitions and dropdowns: ($ billion) 2019E 2020E Net Income $2.2 $2.5 Adjusted EBITDA(a) $3.9 $4.4 Net cash provided by operating activities $3.2 $3.8 Distributable Cash Flow (DCF)(a)
Slide 36: Appendix
Appendix ——— ss
Slide 37: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Net income (14) 72 194 182 187 191 217 241 423 456 516 (a)The Partnership makes a distinction Provision (benefit) for income taxes (4) (8) - - - 2 1 (2) 4 1 3 between
Slide 38: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 3/31/16 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17 3/31/18 6/30/18 9/30/18 Net cash provided by operating activities 321 670 975 1,491 377 844 1,338 1,907 450 1,290 2,027 (a)T
Slide 39: MPLX 2019-2020 Outlook – Reconciliation
MPLX 2019-2020 Outlook – Reconciliation Adjusted EBITDA and Distributable Cash Flow from Net Income ($ billion) 2019E 2020E Net income 2.2 2.5 Depreciation and amortization 0.9 1.0 Net interest and other financial costs 0.7 0.7 Adjustment for equity investment earnings & distributions 0.2 0.2 Other
Slide 40: MPLX 2019-2020 Outlook – Reconciliation
MPLX 2019-2020 Outlook – Reconciliation Adjusted EBITDA and Distributable Cash Flow from Net Cash Provided by Operating Activities ($ billion) 2019E 2020E Net cash provided by operating activities 3.2 3.8 Changes in working capital items 0.0 (0.1) Net interest and other financial costs 0.7 0.7 Unrea
MPLX — UBS Midstream, MLP and Utilities Conference 2019 on 6ix