Slide 1: Second-Quarter 2020 Earnings Conference Call
Second-Quarter 2020 Earnings Conference Call August 3, 2020
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, MPLX’s expectations, estimates and projections concerning the business and operatio
Slide 3: Targeting Positive Free Cash Flow
Targeting Positive Free Cash Flow Disciplined Approach and Long-term Focus 2019 The Path to Increased Cash Flow 2021 EBITDA ~$5.1 B(a) EBITDA – Continued Growth DCF ~$4.1 B(a) DCF – Continued Growth Distributions Growth Capital Growth Capital Distributions ~$3.0 B(b) ~$2.6 B(c) ~$1 B Positive Free C
Slide 4: Stable Cash Flows
Stable Cash Flows Historical Quarterly Adjusted EBITDA Significant progress on reducing ($ Billions)(a) forecasted operating expenses 1.3 1.3 1.3 1.2 Stable, fee based cash flows with 0.4 0.5 0.4 0.4 minimum volume commitments 0.8 0.9 0.9 0.8 Supports goal of achieving positive free cash flow
Slide 5: Continued Capital Discipline
Continued Capital Discipline 2020 capital spend target(a) on- Growth Capital(b) track to be reduced by over $700 million $2.6 B $2.4 B – Reducing net maintenance capital spending by $100 million to approximately $150 million ~55% ~75% – Reducing growth capital ~$900 MM spending by over $600 millio
Slide 6: Environment Social Governance
Focus on Sustainability and Corporate Leadership Environment Social Governance Committed to Improving Energy Efficiency Diversity & Inclusion Transparency in reporting through TCFD and SASB Established new Human Received 2 ENERGY STAR® Rights Policy in 2020 Challenge for Industry Awards Sustainabili
Slide 7: Second-Quarter Highlights
Second-Quarter Highlights Reported adjusted EBITDA attributable to MPLX of $1.2 billion Generated $1.1 billion in net cash provided by operating activities and reported distribution coverage of 1.39x Maintained quarterly distribution of $0.6875 per common unit On-track to reduce forecasted 2
Slide 8: Logistics & Storage Segment
Logistics & Storage Segment Pipeline throughputs averaged 4.3 MMBPD – Decrease of ~15% year-over-year Terminalling throughputs averaged 2.4 MMBPD – Decrease of ~26% year-over-year Lower volumes offset by reduced operating expenses Progressing Permian long-haul pipelines: – Wink-to-Webster cr
Slide 9: Gathering & Processing Segment
Gathering & Processing Segment 2Q20 Processed Volumes(a) Capacity at Utilization of 2Q20 Overall volumes and % change: End of Average Available Area Volume vs. 2Q19 Quarter (MMcf/d) Capacity (MMcf/d) (%)(b) Gathering: 5.5 Bcf/d (8)% Marcellus 6,172 5,516 89% Processing: 8.5 Bcf/d (1)% Utica 1,325
Slide 10: 2Q 2020 Financial Highlights
2Q 2020 Financial Highlights Adjusted EBITDA(a) Distributable Cash Flow(a) 3,000 2019 2020 2,500 2019 2020 2,512 2,521 2,500 1,966 2,043 2,000 2,000 1,500 $MM $MM 1,500 1,249 1,227 975 996 1,000 1,000 500 500 0 0 2Q Year-to-Date 2Q Year-to-Date Three Months Ended Six Months Ended Segment Adjusted Ju
Slide 11: 2Q 2020 vs. 2Q 2019 Adjusted EBITDA
2Q 2020 vs. 2Q 2019 Adjusted EBITDA 1,400 1,249 18 (40) 1,227 1,200 G&P G&P 1,000 428 388 800 $MM 600 L&S L&S 2Q 2018 821 839 400 vs. 2Q 200 2017 0 Variance Analysis 2Q 2019 Adjusted EBITDA Attributable to MPLX (a) Logistics & Storage Gathering & Processing 2Q 2020 Adjusted EBITDA Attributable to MP
Slide 12: Financial and Balance Sheet Highlights
Financial and Balance Sheet Highlights As of ($MM except ratio data) 6/30/20 Cash and cash equivalents 67 Total assets 37,022 Total debt(a) 20,559 Redeemable preferred units 968 Total equity 13,262 Second Quarter 2020 distribution coverage(b) 1.39x Leverage(c) 4.1x Remaining capacity available under
Slide 13: Appendix
MPL Appendix 13
Slide 14: Logistics & Storage: Earnings Diversity & Protection
Logistics & Storage: Earnings Diversity & Protection Logistics & Storage (L&S) 2019 MPLX EBITDA ~2/3 of EBITDA Refining Logistics (RL) + Fuels Distribution (FD): ~$5.1 B ~$3.3 B – ~$1.4 B EBITDA(a) – RL fee-for-capacity – FD highly stable with MVC(b) L&S Terminals + Marine Terminals and Marine:
Slide 15: Gathering & Processing: Regions & Customers
Gathering & Processing: Regions & Customers Gathering & Processing (G&P) 2019 MPLX EBITDA ~1/3 of EBITDA ~$5.1 B ~$1.8 B Regional Processing MVCs(b) – Marcellus ~74% – Other Northeast ~25% – Southwest ~5% G&P L&S Marcellus – Mid-Con ~35% 34% 66% Other Northeast Largest customers in Northeast Sou
Slide 16: Gathering & Processing Segment
Gathering & Processing Segment Sub-Region Processed Volumes Marcellus/Utica Processed Volumes(a) Southwest Processed Volumes(a) Capacity at End Average Utilization of Capacity at End Average Utilization of Area of Quarter Volume Available Area of Quarter Volume Available (MMcf/d) (MMcf/d) Capacity (
Slide 17: Organic Growth Capital Projects: Logistics & Storage
Organic Growth Capital Projects Logistics & Storage Segment Est. Projects Description Completion Date Mt. Airy Terminal Expansion Constructing 2nd 120 MBPD dock and incremental storage 3Q20 Utica Butane Expansion Expansion for transportation of butanes from Utica to Robinson and Lima 3Q20 W2W Pipeli
Slide 18: Organic Growth Capital Projects: Gathering & Processing
Organic Growth Capital Projects Gathering & Processing Segment Est. Processing and Fractionation Shale Resource Capacity Completion Date Omega 2 Processing Plant Cana-Woodford 180 MMcf/d In Service Hopedale 5 C3+ Fractionation Marcellus & Utica 80,000 BPD 3Q20 Smithburg 1 Processing Plant(a) Marcell
Slide 19: Strong Balance Sheet
Strong Balance Sheet Consolidated Debt to Adj. EBITDA(a) 6.0x 4.5x 3.0x $ Millions YE18 YE19 2Q20 (unless otherwise noted) 1.5x 0.0x Consolidated Debt 13,856 20,713 20,938 2015 2016 2017 2018 2019 2020 Debt Maturities – Next 10 Years LTM Pro forma Adj. EBITDA 3,567 5,104 5,113 3.0 Consolidated debt
Slide 20: Highlights Recognitions
Published 2019 Sustainability Report Highlights Recognitions 20% reduction in GHG intensity Included in Dow Jones Sustainability since 2014 Index for North America ~$470 million investment converting EPA Energy Star Partner of the Year – Dickinson refinery to renewable diesel plant Sustained Excelle
Slide 21: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income 2Q QTD 2Q QTD 2Q YTD 2Q YTD 4Q YTD ($MM) 2020 2019 2020 2019 2019 Net income (loss) 655 657 (2,061) 1,346 1,462 Provision (benefit) for income taxes - (1) - (2) - Amortization of deferred financing costs 15 12 29 19 42 Net inte
Slide 22: Reconciliation from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 2Q QTD 2020 2Q QTD 2019 2Q YTD 2020 2Q YTD 2019 4Q YTD 2019 Net cash provided by operating activities 1,105 1,101 2,114 1,954 4,082 Changes in working capital items (100) (84) 12 112 108 All
Slide 23: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income 2Q QTD 1Q QTD 4Q QTD 3Q QTD 2Q QTD 2Q YTD 2Q YTD ($MM) 2020 2020 2019 2019 2019 2020 2019 L&S segment adjusted EBITDA attributable to MPLX 839 872 853 849 821 1,711 1,649 LP (including predecessor results) G&P segment adjusted EBITDA attributab
Slide 24: Reconciliation of Capital Expenditures
Reconciliation of Capital Expenditures 2Q QTD 2Q QTD 2Q YTD 2Q YTD 4Q YTD 4Q YTD ($MM) 2020 2019 2020 2019 2019 2018 Capital Expenditures Maintenance 33 62 67 99 262 175 Maintenance reimbursements (6) (9) (20) (16) (53) (8) Growth 185 494 469 961 2,001 2,078 Growth reimbursements - (7) - (12) (21) (
Slide 25: Reconciliation of LTM Net Income to LTM Pro Forma Adjusted EBITDA
Reconciliation of LTM Net Income (Loss) to LTM Pro Forma adjusted EBITDA ($MM) 2Q 2020 4Q 2019 2Q 2019 4Q 2018 LTM Net (loss) income (1,945) 1,462 1,952 1,834 LTM Net income to adjusted EBITDA adjustments 6,950 2,872 1,746 1,641 LTM Adjusted EBITDA attributable to MPLX LP 5,005 4,334 3,698 3,475 LTM
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