Slide 1: Fourth-Quarter 2017 Earnings Conference Call Presentation
Fourth-Quarter 2017 Earnings Conference Call Presentation February 1, 2018
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”) and Marathon Petroleum Corporation (“MPC”). These forward-looking statements relate to, among other things, expectations, estimates and projection
Slide 3: Opening Comments
Opening Comments Reported record fourth-quarter and full-year results in 2017 Announced robust organic growth plan for 2018 MPLX celebrated 5 year anniversary Announced closing of transactions completing planned strategic actions 3
Slide 4: Fourth-Quarter and Full-Year Highlights
Fourth-Quarter and Full-Year Highlights Reported record fourth-quarter adjusted EBITDA of $569 million and distributable cash flow of $445 million with strong coverage ratio of 1.24x Reported full-year adjusted EBITDA of $2 billion and distributable cash flow of ~$1.63 billion Delivered distri
Slide 5: Logistics & Storage Segment
Logistics & Storage Segment Ozark and Wood River-to-Patoka pipeline expansion projects expected to complete in mid-2018 Headquarters Robinson butane cavern expected to be MPLX Pipelines: Owned & Operated placed in service in 2Q 2018 MPLX Interest Pipelines: Operated by Others Closing dropdown
Slide 6: Gathering & Processing Segment
Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Achieved record 4Q 2017 volumes Available Average – Gathered volumes of ~2.7 Bcf/d Utilization Area Capacity Volume (%)(b) – Processed volumes of ~5.2 Bcf/d (MMcf/d) (MMcf/d) Marcellus 4,520 4,203 93% Achieved signi
Slide 7: Gathering & Processing Segment
Gathering & Processing Segment Marcellus & Utica Fractionation Commenced operations of second Fractionated Volumes(a) de-ethanization plant at Majorsville Available Average Utilization Area Capacity Volume Achieved record 4Q 2017 (MBPD)(b) (MBPD) (%)(c) fractionated volumes of ~389 MBPD 4Q17 Tot
Slide 8: Gathering & Processing Segment
Gathering & Processing Segment Southwest Operations Achieved record 4Q 2017 volumes Processed Volumes(a) – Gathered volumes of ~1.5 Bcf/d Available Average Utilization Area Capacity Volume – Processed volumes of ~1.4 Bcf/d (MMcf/d) (MMcf/d) (%)(b) Achieved 8% growth in full-year West Texas(c) 20
Slide 9: 2018 Capital Outlook
2018 Capital Outlook Forecast organic growth capital of ~$2.2 B* ~5% G&P Segment Utica Eleven additional plants expected ~20% to complete by end of 2018 Southwest ~1.5 Bcf/d processing capacity ~60% ~100 MBPD fractionation capacity Marcellus Northeast and Southwest gathering L&S Segment Ozark
Slide 10: Fourth-Quarter and Full-Year 2017 Financial Highlights
Fourth-Quarter and Full-Year 2017 Financial Highlights Adjusted EBITDA Distributable Cash Flow 2,500 2,000 2,004 1,628 2,000 1,500 1,419 1,140 1,500 $MM $MM 1,000 1,000 569 445 500 391 500 318 0 0 4Q Full-Year 4Q Full-Year 2016 2017 2016 2017 Three Months Ended Year Ended Segment Operating Income ($
Slide 11: Adjusted EBITDA
Adjusted EBITDA 4Q 2017 vs. 4Q 2016 Variance Analysis 700 600 54 569 25 35 500 64 391 $MM 400 300 200 100 0 4Q 2016 Adjusted 1Q 2017 Drop 3Q 2017 Drop Logistics & Gathering & 4Q 2017 Adjusted EBITDA Attributable to Storage Processing EBITDA Attributable to MPLX MPLX 11
Slide 12: Adjusted EBITDA
Adjusted EBITDA 2017 vs. 2016 Variance Analysis 2,250 210 2,004 2,000 66 48 1,750 226 35 1,500 1,419 1,250 $MM 1,000 750 500 250 0 2016 Adjusted 1Q 2016 Drop 1Q 2017 Drop 3Q 2017 Drop Logistics & Gathering & 2017 Adjusted EBITDA Attributable Storage Processing EBITDA Attributable to MPLX to MPLX 12
Slide 13: MPLX Capitalization, Leverage and Liquidity
MPLX Capitalization, Leverage and Liquidity As of ($MM except ratio data) 12/31/17 Cash and cash equivalents 5 Total assets 19,500 Total debt(a) 7,332 Redeemable preferred units 1,000 Total equity 9,973 Consolidated total debt to LTM pro forma adjusted EBITDA(b) 3.6x Remaining capacity available und
Slide 14: Appendix
MPL ENERGYLOGISTICS: Appendix
Slide 15: MPLX Organic Growth Capital Projects
MPLX Organic Growth Capital Projects Gathering and Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Sherwood IX Processing Plant(b) Marcellus 200 MMcf/d In-Service Marcellus/Utica Rich- and Ongoing Dry-Gas Gathering(a) Housto
Slide 16: MPLX Organic Growth Capital Projects
MPLX Organic Growth Capital Projects Logistics and Storage Segment Est. Completion Projects Description Date Increasing pipeline capacity to 360 MBPD; provides crude sourcing Ozark Pipeline Expansion Mid-2018 optionality to Midwest refineries Wood River-to-Patoka Increasing pipeline capacity to 360
Slide 17: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 4Q 2017 4Q 2016 YTD 2017 YTD 2016 Net income 241 182 836 434 (a)The Partnership makes a distinction Depreciation and amortization 168 153 683 591 between realized or unrealized gains (Benefit) provision for income taxes (
Slide 18: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 4Q 2017 4Q 2016 YTD 2017 YTD 2016 Net cash provided by operating activities 569 516 1,907 1,491 Changes in working capital items (106) (135) (147) (76) All other, net 15 2 (28) (16) Non-cash
Slide 19: Segment Operating Income Reconciliation to Income From Operations
Segment Operating Income Reconciliation to Income From Operations ($MM) 4Q 2017 4Q 2016 YTD 2017 YTD 2016 L&S segment operating income attributable to 205 118 782 453 MPLX G&P segment operating income attributable to 364 311 1,335 1,132 MPLX(a) Segment portion attributable to equity affiliates (53)
Slide 20: NVirly~
— NVirly~ ENERGYLOGISTICS