Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Barclays CEO Energy-Power Conference 2018
96 slides from Marathon Petroleum's conference presentation, September 2018
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 4-6, 2018
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"). These forward-looking statements relate to, among other things, the proposed transaction between MPC and Andeavor ("ANDV")
Slide 3: Additional Information
Additional Information Additional Information and Where to Find It In connection with the proposed transaction, MPC and ANDV have filed relevant materials with the SEC, including MPC’s registration statement on Form S-4 that includes a definitive joint proxy statement/prospectus and was declared eff
Slide 4: Pro Forma MPC – A Leading Energy Company
Pro Forma MPC – A Leading Energy Company Largest refiner in North America Refining 16 refineries with >3 MMBPD of capacity Diversified footprint across 4 of 5 PADDs Export access: reaching every major global crude market Midstream One of the largest midstream operators in North America Nearly $5 B p
Slide 5: Well-Positioned for the Long Term
Well-Positioned for the Long Term Refining Midstream Marketing Positive Global Macro Backdrop Positive U.S. Production Backdrop Nationwide Platform1 Consolidation + Changing Retail Efficient Operator Footprint in Fastest Growth Basins Dynamics Creates Opportunities Ability to Source Advantaged Crude
Slide 6: Integrated Model Enhances Earnings Stability and Sustainability
Integrated Model Enhances Earnings Stability and Sustainability MPC’s business mix has significantly diversified and non-refining segments now contribute more than 50% of mix. At the same time, positive backdrop has market estimates of cash flow yield improving and above the current energy sector av
Slide 7: Committed to Creating Shareholder Value
Committed to Creating Shareholder Value MPC remains committed to creating shareholder value through its disciplined capital strategy and returning capital beyond the needs of the business in a manner consistent with maintaining the company’s investment grade credit profile. Total Share Repurchases1
Slide 8: Responsible Corporate Leadership
Responsible Corporate Leadership MPC facilities received from the American Chemistry Council 75% 56 3 7 MPC has earned Certificates of Certificates of Certificates of Excellence Honor Achievement of the Environmental Protection Agency’s Energy Star 16 recognitions awarded to refineries. MPC faciliti
Slide 9: Global Macro and Refining Outlook
Global Macro and Refining Outlook
Slide 10: Global & U.S. Economic Outlook Positive
Global & U.S. Economic Outlook Positive Gasoline demand: growth estimates center around 0.6% per year as tailwinds from rising consumer incomes and higher vehicle miles travelled are partially offset by continued fuel efficiency improvements. Electric vehicle impact remains minimal through 2030. Dis
Slide 11: Technology Advancements: Mixed Trends
Technology Advancements: Mixed Trends Technology Focus Areas Description Fuel economy and emission standards have been and are anticipated to Fuel Economy and remain a headwind to gasoline demand growth. The EPA’s proposed Emissions Standards rollback of the planned 2021-2025 U.S. CAFE standards cou
Slide 12: Exports are a Sustainable Opportunity
Exports are a Sustainable Opportunity Over the past decade, U.S. distillate production growth has continued to outpace domestic demand growth – but found an outlet in Latin American markets. Exports remain a sustained opportunity as under-investment and political / economic challenges remain in many
Slide 13: Global Refining Capacity Relatively Balanced
Global Refining Capacity Relatively Balanced Net worldwide refining capacity growth appears relatively balanced at roughly 1 MMBPD per year growth over the next few years -- with about 75% of new capacity coming from Asia and the Middle East which should support their domestic demand. Global Crude D
Slide 14: Global Inventories Moderate
Global Inventories Moderate Over the past year, strong demand growth has eliminated the surplus in gasoline and distillate inventories bringing them near or below their historical averages. Demand expectations through 2019 support continued moderate inventory levels. Global Gasoline Inventories Glob
Slide 15: U.S. Inventories Support Refining Margins
U.S. Inventories Support Refining Margins U.S. light product inventories are at or below their five-year averages on a days of supply basis, which have bolstered refining margins this year. A large fall turnaround season as well as continued export demand should keep U.S. inventory levels encouragin
Slide 16: U.S. Refineries Among Most Cost Efficient in World
U.S. Refineries Among Most Cost Efficient in World The U.S. refining system is among the most cost efficient in the world given its access to low-cost natural gas and price-advantaged crudes – making it well-positioned to supply transportation fuels across the world. Transportation Fuel Production C
Slide 17: MPC has Some of the Best Assets in the U.S.
MPC has Some of the Best Assets in the U.S. MPC’s refineries include 2 of the largest in the U.S. Garyville is the most cost efficient and Galveston Bay has improved two quartiles since acquired in 2013. Rigorous routine and turnaround planning improves operating abilities – while the integrated mod
Slide 18: Global Crude Production Sufficient to Meet Demand
Global Crude Production Sufficient to Meet Demand Global crude production growth is anticipated to average 550 MMBPD per year through 2030, comparable to growth rates seen over the last decade. At the same time, the U.S. is on track to become the largest oil-producing nation in the world and remains
Slide 19: U.S. Rapid Growth Driven by Compelling Economics
U.S. Rapid Growth Driven by Compelling Economics Total 2018E-2022E U.S. Production Growth +3.5 MMBPD 14,000 U.S. Crude Production 12,000 +250 Bakken 10,000 MBPD MBPD 8,000 6,000 4,000 SCOOP 2017 2018E 2019E 2020E 2021E 2022E +275 /STACK Rest of U.S. Bakken SCOOP/STACK Eagle Ford Permian v MBPD Break
Slide 20: The Global Crude Slate is Lightening
The Global Crude Slate is Lightening U.S. production will continue to shift global crude supply lighter. If Venezuelan production does not recover, heavy crude supplies could be tighter. 4 Crude Production Changes1 (2019 To 2030) 3 2 L = Light M = Medium MMBPD 1 H = Heavy 0 L M M M H M M L H L M M M
Slide 21: Infrastructure Constraints Driving Wider Differentials
Infrastructure Constraints Driving Wider Differentials Growing U.S. production and limited takeaway infrastructure has driven wider differentials across many markets. Regional production forecasts imply continued market dislocations, sustainably higher differentials, and ongoing opportunities for ad
Slide 22: Cushing Overview
Cushing Overview From From Bakken & Canada Flanagan Chicago Guernsey, WY Spearhead & Flanagan South Keystone Pony Express BP1 From Weld County, CO Wood River White Cliffs & Saddlehorn-Grand Ozark Mesa Cushing Working Cushing Diamond Storage Capacity Memphis 77.5 MM bbls Red River NuStar Centurion Ba
Slide 23: Transportation Costs Vary By Region and Mode
Transportation Costs Vary By Region and Mode Our integrated business model creates opportunities to access the most cost-advantaged feedstocks and premium product markets, driving sustainable results. Hardisty Pacific Northwest Bakken U.S. East Coast Patoka U.S. West Coast Cushing $3.35/bbl on Jones
Slide 24: IMO 2020: Changing Sulfur Content Regulations
IMO 2020: Changing Sulfur Content Regulations 8 International Maritime Organization (IMO) has proposed to lower the amount of sulfur content in marine fuel from 3.5% to 0.5%, effective January 2020. 6 Key Questions: - Distillate Demand: incremental demand? 4 MMBPD - Residual Fuel: price pressure? ne
Slide 25: Global Opportunity for Complex Refineries
Global Opportunity for Complex Refineries U.S. refiners are structurally advantaged relative to their global peers given limited bunker fuel production, complex refining assets, significant upgrading capacity, and ability to flex yields – and therefore are poised to take advantage of any market disr
Slide 26: Pro Forma MPC Well-Positioned Among U.S. Refiners
Pro Forma MPC Well-Positioned Among U.S. Refiners Pro forma MPC is positioned to produce compliant Coking + Hydrocracking Capacity fuels and benefit from the adoption of the IMO low 800 sulfur fuels requirements. Current investments: 700 – Garyville diesel maximization: completed 1Q18 600 – STAR Pro
Slide 27: IMO 2020 Market Perspectives Are Optimistic
IMO 2020 Market Perspectives Are Optimistic Benny Wong – Morgan Stanley May 15, 2018 Source: Sell-Side Equity Research (firm, dates listed above) 27
Slide 28: Midstream Opportunities
Midstream Opportunities
Slide 29: Macro Infrastructure Backdrop Positive
Macro Infrastructure Backdrop Positive Strong production growth in crude, natural gas liquids, and natural gas has been resilient to lower commodity prices given low break-even economics and continued improving efficiencies -- additional infrastructure will continue to be required to connect supply
Slide 30: Our Assets Positioned in Fastest Growth Basins
Our Assets Positioned in Fastest Growth Basins U.S. gas production growth is concentrated in Marcellus and Permian. Growth in the number of rigs is not uniform, as 50% of rigs and 40% of DUCs are located in the Permian. Increases in drilling efficiency (e.g. longer laterals, improved fracturing prop
Slide 31: Volume Growth Varies Across Regions
Volume Growth Varies Across Regions U.S. Natural Gas Production 100 Total 2018E-2022E U.S. Production Growth +19 Bcfd 80 Bcfd 60 40 +11 20 Bcfd 2017 2018E 2019E 2020E 2021E 2022E Marcellus / Utica Rest of U.S. Texas / New Mexico Marcellus / Utica Texas / Breakeven Henry Hub Gas Price New Mexico v $3
Slide 32: Infrastructure Needed to Connect Supply to Demand
Infrastructure Needed to Connect Supply to Demand Additional infrastructure will be needed to connect supply to demand. Key global demand drivers include: global LNG demand, increased Mexican pipeline export capabilities, and domestic industrial & power generation. LNG Exports Mexico Pipeline Indust
Slide 33: NGLs Creating Processing & Fractionation Needs
NGLs Creating Processing & Fractionation Needs U.S. NGL production is forecasted to grow 1.9 MMBPD from 2018-2030, averaging 6.5% annually through 2022 as the first wave of new ethane crackers comes online. Both processing and fractionation capacity will be needed to allow producers to debottleneck
Slide 34: Marketing & Retail Trends
Marketing & Retail Trends
Slide 35: Marketing & Retail: Adapting to Changing Dynamics
Marketing & Retail: Adapting to Changing Dynamics Industry consolidation will likely continue and create opportunities for our pro forma nationwide footprint. Technology offers the ability to enhance operational efficiencies as well as combat driving trends and changing retail dynamics. Fragmented C
Slide 36: Speedway Light Product and Merchandise Sales
Speedway Light Product and Merchandise Sales Strong The U.S. is entering a period of stagnant gasoline demand growth, but Speedway continues to be a top performer in the industry. Superior locations and expanded offerings inside the store drive foot traffic, and can be observed in merchandise sales
Slide 37: Speedway – Top-tier Performer in C-Store Space
Speedway – Top-tier Performer in C-Store Space 40 EBITDA $M/Store/Month 20 0 Speedway Murphy Couche-Tard Casey's TA C-Stores USA 100 Total Margin $M/Store/Month Light Product Merchandise 75 Speedway LP Speedway Merchandise 50 25 0 Speedway Casey's Couche-Tard Murphy TA C-Stores USA Strong track re
Slide 38: Andeavor Combination
Andeavor Combination
Slide 39: Combination Creates a Leading Energy Company
Combination Creates a Leading Energy Company Aligned Strategy, Focus, and Culture Large scale, geographically diversified and highly integrated refining, marketing, and midstream company with an initial enterprise value >$90 billion1 High-quality, Feedstock- Two strong nationwide retail and advantag
Slide 40: Complementary Footprints Spanning the U.S.
Complementary Footprints Spanning the U.S. Strong Presence Across Key Supply and Demand Centers MPC MPC Refinery Light Product Terminals MPC-Owned and Part-Owned Third Party Asphalt/Heavy Oil Terminal MPC-Owned Third Party Water Supplied Terminals Inland Coastal Renewable Fuels Ethanol Facility Biod
Slide 41: Committed to Delivering Substantial Synergies
Committed to Delivering Substantial Synergies Expected Synergy Impact Area Business Context (millions) Cost Elimination ~$255 ● Clearly identified cost efficiencies – allows for rapid achievement ● Over $10 billion of combined purchases per year Procurement ~$150 ● 1-2% improvement leads to $100-$20
Slide 42: Opportunity for Significant Shareholder Value Creation
Opportunity for Significant Shareholder Value Creation Accretion and Cash Generation Growth and Value Creation Immediately >$5 billion Substantially enhanced ≥$1 billion growth platform across of expected synergies of incremental cash accretive all segments, with to earnings and cash flow supports ≥
Slide 43: Conclusion
it Conclusion
Slide 44: Pro Forma MPC – A Leading Energy Company
Pro Forma MPC – A Leading Energy Company Refining Midstream Marketing Expanding Platform Across: Retail, Superior Operations Significant Growth Opportunities Wholesale, and Branded Strategic Investment to Capture Value Strategic Alignment with Refining Invest in Technology to Improve New Technology
Slide 45: MARATHON
MARATHON ®
Slide 46: Appendix
Appendix 46
Slide 47: MPC EBITDA Reconciliation
MPC EBITDA Reconciliation ($MM) 2013 2014 2015 2016 2017 Segment EBITDA Refining & Marketing Segment Segment income from operations1,2 3,131 3,538 3,997 1,357 2,321 Add: Depreciation and amortization 989 1,020 1,052 1,063 1,082 Segment EBITDA 4,120 4,558 5,049 2,420 3,403 Speedway Segment Segment in
Slide 48: Speedway EBITDA and Total Margin Reconciliation
Speedway EBITDA and Total Margin Reconciliation ($MM) 2Q 2017 3Q 2017 4Q 2017 1Q 2018 LTM Speedway Segment EBITDA Segment income from operations 238 208 148 95 689 Add: Depreciation and amortization 65 68 78 79 290 Segment EBITDA 303 276 226 174 979 Speedway total margin to Speedway income from oper
Slide 49: Committed to Delivering Substantial Synergies
Committed to Delivering Substantial Synergies Well-defined, Achievable, Highly Accretive Clearly identified and developed plan to achieve ≥$1 billion of expected synergies By Function By Impact Area ($ millions) ($ millions) ≥$1,000 $950 ≥$1,000 $195 $710 $150 $95 $480 $210 $55 $295 Refining & Retai
Slide 50: MPC and Andeavor Strategic Evolutions
MPC and Andeavor Strategic Evolutions Track Record of Integrating Businesses and Driving Shareholder Value $80 Acquired Galveston Bay refinery and $60 integrated midstream and Acquired former Hess marketing assets retail assets Formed MLP $40 Acquired MarkWest MPC completes $20 Energy Partners Strat
Slide 51: MPC Track Record of Executing and Integrating Large Transactions
MPC Track Record of Executing and Integrating Large Transactions Galveston Bay Achievements (since acquisition) Improved Environmental and Advanced Operational Excellence Lowered Operating Costs Safety Performance 33 monthly process-unit rate records in Reduced total cash operating expenses 80
Slide 52: Diversified Large-Scale U.S. Refining Portfolio
Diversified Large-Scale U.S. Refining Portfolio Sixteen Refineries with Over 3 Million BPD of Throughput Capacity Diversification across attractive PADDs U.S. Refining Capacity1 (MBPD) Incremental access to advantaged feedstock supply 3,038 Scale to deliver best-in-class operating capability P
Slide 53: Geographic Diversification Increases Exposure to Attractive Margins
Geographic Diversification Increases Exposure to Attractive Margins Annual Refining Margins by Region ($/BBL) Andeavor’s California, Pacific $30 Northwest, and Mid-Con refineries add geographic $25 diversity to MPC’s existing $20 refining earnings $15 Attractive West Coast market dynamics $10 $5
Slide 54: Pro Forma Capital Structure
Pro Forma Capital Structure Increased size, scale and diversity supports >$5 billion incremental cash flow expected in first five years commitment to investment grade credit profile Implicit leverage reduction via earnings growth even Equity-weighted acquisition funding mix (85/15) and prior
Slide 55: MPC and ANDV Mexico Opportunities
MPC and ANDV Mexico Opportunities Desirable Supply Position into Mexico with Direct Supply from the East and West MPC Bulk supplier via waterborne cargoes from Garyville and Galveston Bay Rail supply potential from Houston area Andeavor Winner of PEMEX open season in northwest Mexico – physica
Slide 56: Pro Forma MPC Permian – Expanded Opportunities
Pro Forma MPC Permian – Expanded Opportunities Accelerates MPC’s entry into Permian To Cushing/Ozark (MPC Midwest with attractive assets refining) Andeavor crude oil gathering and marketing aligns naturally with MPC’s crude needs at Galveston Bay Allows for full crude oil integration – Galvest
Slide 57: Integrates Bakken Crude System with MPC Refining Demand
Integrates Bakken Crude System with MPC Refining Demand MT ND Crude gathering and marketing aligns with MPC demand in Midwest DAPL & Enbridge Robinson Lake Minot Gain ability to aggregate DAPL supply on Connections Gathering & Processing gathering and related assets Williston Basin – Bakken Shal
Slide 58: Second-Quarter 2018 Earnings
Second-Quarter 2018 Earnings
Slide 59: Opening Comments
Opening Comments Reported record operational performance and outstanding financial results $1.1 billion of capital returned to shareholders, including $885 million of share repurchases Continued optimistic outlook for our business as global demand remains strong, crude differentials appear wid
Slide 60: Second-Quarter Highlights
Second-Quarter Highlights Reported second-quarter earnings of $1.06 billion, or $2.27 per diluted share, and income from operations of $1.71 billion – Refining & Marketing: segment income from operations of $1.03 billion, supported by record crude throughput volumes – Midstream: segment income fro
Slide 61: Second-Quarter 2018 Earnings
Second-Quarter 2018 Earnings 2Q 2018 2Q 2017 Earnings* $1,055 MM $483 MM Earnings per Diluted Share* $2.27 $0.93 Earnings* Earnings per Diluted Share* $1,092 3 1,000 $2.31 2 $/Share $MM $513 1,055 2.27 500 $0.98 1 483 37 0.93 30 0.06 0.08 0 0 2017 2018 2017 2018 1Q 2Q *Earnings refer to Net Income a
Slide 62: 2Q 2018 vs. 2Q 2017 Variance Analysis
Earnings* 2Q 2018 vs. 2Q 2017 Variance Analysis 1,400 60 1,200 285 (37) (31) 1,055 1,000 463 (89) 800 (79) $MM 600 483 400 200 0 2Q 2017 Refining & Speedway Midstream** Items not Interest and Income Noncontrolling 2Q 2018 Marketing** Allocated to Other Financing Taxes Interests Segments Costs *Earni
Slide 63: Refining & Marketing Segment Income
Refining & Marketing Segment Income 2Q 2018 vs. 2Q 2017 Variance Analysis 1,600 48 76 1,400 180 56 1,200 320 (75) 1,025 1,000 243 Crude 173 (385) $MM Volumetric 102 800 Product (219) 600 562 400 200 0 2Q 2017 *LLS **Sweet/ **LLS/WTI **LLS **Market Other ***Direct ***Other 2Q 2018 6-3-2-1 Sour Diff.
Slide 64: Speedway Segment Income
Speedway Segment Income 2Q 2018 vs. 2Q 2017 Variance Analysis 250 238 200 (32) (5) (24) 159 (8) 150 (10) $MM 100 50 0 2Q 2017 Light Product Merchandise Operating Depreciation Other* 2Q 2018 Margin Margin Expense *Reflects the absence of a $6 MM gain related to asset sales in the 2Q 2017. 64
Slide 65: Midstream Segment Income
Midstream Segment Income 2Q 2018 vs. 2Q 2017 Variance Analysis 700 328 617 600 (43) 500 400 $MM 332 300 200 100 0 2Q 2017 MPLX*,** MPC Retained Equity and Other 2Q 2018 Affiliates** *Results related to refining logistics and fuels distribution dropdown into MPLX, which totaled $232 MM for the quarte
Slide 66: Total Consolidated Cash Flow
Total Consolidated Cash Flow 2Q 2018 8,000 544 7,000 1,842 (6) 6,000 (788) 45 4,999 5,000 4,653 (1,096) (195) $MM 4,000 3,000 2,000 1,000 0 3/31/2018 Operating Working Net Debt Cash Capital Return of Net Distributions Other 6/30/2018 Cash Cash Flow Capital Expenditures Capital to to Cash Balance bef
Slide 67: Capitalization and Select Cash-Flow Data
Capitalization and Select Cash-Flow Data MPC MPLX MPC As of June 30, 2018 Excluding Consolidated Adjustments(a) MPLX ($MM except ratio data) Debt 17,267 11,875 5,392 Mezzanine equity 1,003 1,003 - Equity 18,818 8,366 10,452 Total capitalization 37,088 21,244 15,844 Debt-to-capital ratio (book) 47% -
Slide 68: 3Q 2018 Outlook
3Q 2018 Outlook Other Total Corporate Percent of Sour Crude Oil Turnaround Depreciation Other Crude Charge/ Total Direct and Other WTI-priced Throughput and Major and Manufacturing Throughput* Feedstocks Throughput* Operating Unallocated Crude Percentage Maintenance Amortization Cost** Throughput* C
Slide 69: MPLX - Second-Quarter 2018 Earnings
MPLX - Second-Quarter 2018 Earnings
Slide 70: MPLX - Second-Quarter Highlights
MPLX - Second-Quarter Highlights Reported adjusted EBITDA of $867 million and distributable cash flow of $695 million which provided 1.36x distribution coverage and resulted in 3.7x leverage Adjusted EBITDA increased 83% year-over-year, 23% year-over-year excluding the impact from dropdowns Re
Slide 71: MPLX - Logistics & Storage Segment
MPLX - Logistics & Storage Segment Reported 2Q adj. EBITDA of $526 million, which increased 32% year-over-year after adjusting for the impact of dropdowns Headquarters Pipeline throughputs averaged 3.39 MMBDP, MPLX Pipelines: Owned & Operated ~10% increase over 2Q 2017 MPLX Interest Pipelines: O
Slide 72: MPLX - Gathering & Processing Segment
MPLX - Gathering & Processing Segment Reported 2Q adj. EBITDA of $341 million, which increased 18% year-over-year 5 processing plants (Sherwood 9, Houston 1, Argo, Omega, Majorsville 7) brought online year-to-date and 3 additional plants by year-end Total processing system capacity is now 8.7
Slide 73: MPLX - Gathering & Processing Segment
MPLX - Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Gathered volumes averaged 2.8 Bcf/d, Capacity at Utilization of ~46% increase over 2Q 2017 End of Average Available Area Volume Quarter Capacity Processed volumes averaged 5.2 Bcf/d, (MMcf/d) (MMcf/d) (%)(b)
Slide 74: MPLX - Gathering & Processing Segment
MPLX - Gathering & Processing Segment Marcellus & Utica Fractionation Fractionated Volumes(a) Achieved 2Q 2018 fractionated Capacity at Utilization of Average volumes of ~407 MBPD Area End of Volume Available Quarter Capacity (MBPD) Achieved ~16% growth in quarterly (MBPD)(b) (%)(c) fractionated
Slide 75: MPLX - Gathering & Processing Segment
MPLX - Gathering & Processing Segment Southwest Operations Processed Volumes(a) Gathered volumes averaged 1.5 Bcf/d, ~6% increase over 2Q 2017 Capacity at Average Utilization of End of Available Area Volume Processed volumes averaged 1.4 Bcf/d, Quarter (MMcf/d) Capacity ~8% increase over 2Q 2017
Slide 76: MPLX - 2Q 2018 Financial Highlights
MPLX - 2Q 2018 Financial Highlights Adjusted EBITDA Distributable Cash Flow 1800 2017 2018 1400 2017 2018 1,314 1,627 1500 1200 1000 1200 867 897 800 695 741 $MM $MM 900 600 600 474 387 400 300 200 0 0 2Q Year-to-Date 2Q Year-to-Date Three Months Ended Six Months Ended Segment Adjusted EBITDA ($MM)
Slide 77: MPLX - 2Q 2018 vs. 2Q 2017 Adjusted EBITDA
MPLX - 2Q 2018 vs. 2Q 2017 Adjusted EBITDA 1,000 51 867 59 800 251 G&P 600 341 32 474 $MM 400 G&P 290 L&S 200 2Q 2018 526 L&S 184 vs. 2Q 0 2017 3Q 2017 Drop 2Q 2017 Adjusted EBITDA 1Q 2018 Drop Logistics & Storage Gathering & Processing 2Q 2018 Adjusted EBITDA Variance Attributable to MPLX Attributa
Slide 78: MPLX - Financial and Balance Sheet Highlights
MPLX - Financial and Balance Sheet Highlights As of ($MM except ratio data) 6/30/18 Cash and cash equivalents 3 Total assets 21,412 Total debt (a) 11,987 Redeemable preferred units 1,003 Total equity 6,952 Distribution coverage 1.36x Leverage (b) 3.7x Remaining capacity available under $2.25 B revol
Slide 79: Appendix
Appendix 79
Slide 80: Capital Expenditures & Investments
Capital Expenditures & Investments ($MM) 2Q 2018 2018 Outlook Refining & Marketing (R&M) 196 950 Speedway 88 530 Midstream, including MPLX 601 2,405 Corporate and Other 17 85 Total Capital Expenditures & Investments(a) 902 3,970 (a)2Q 2018 actuals and 2018 outlook excludes capitalized interest. 80
Slide 81: Earnings
Earnings 2017 2018 (a)We adopted Accounting Standards ($MM unless otherwise noted) Update 2017-07, Retirement Benefits 3Q 4Q 1Q 2Q Presentation of Pension and Postretirement Cost, as of Refining & Marketing segment income (loss) 1,097 732 (133) 1,025 Jan. 1, 2018, and applied the standard retrospect
Slide 82: Reconciliation
Reconciliation Adjusted EBITDA to Net Income Attributable to MPC 2017 2018 ($MM) LTM 3Q 4Q 1Q 2Q Net Income attributable to MPC 903 2,016 37 1,055 4,011 Add: Net interest and other financial costs 158 209 183 195 745 Net income attributable to inco noncontrolling interests 101 109 198 180 588 Provis
Slide 83: Reconciliation
Reconciliation Adjusted EBITDA Related to MPLX to MPLX Net Income 2017 2018 ($MM) LTM 3Q 4Q 1Q 2Q MPLX Net Income 217 241 423 456 1,337 Add: Net interest and other financial costs 93 96 130 151 470 Provision (benefit) for income taxes 1 (2) 4 1 4 Depreciation and amortization 164 168 176 188 696 Adj
Slide 84: Cash Provided from Operations Before Changes in Working Capital Reconciliation
Cash Provided from Operations Before Changes in Working Capital Reconciliation to Net Cash Provided by Operations 2017 2018 ($MM) 3Q 4Q 1Q 2Q Net cash provided by (used in) operations(a) 1,906 2,745 (137) 2,386 Less changes in working capital: Changes in current receivables (640) (797) 96 (321) Chan
Slide 85: Reconciliation of Refining & Marketing Margin to Income from Operations
Reconciliation of Refining & Marketing Margin to Refining & Marketing Income from Operations ($MM) 2Q 2018 2Q 2017 Refining & Marketing loss from operations 1,025 562 Plus: Refinery direct operating costs(a) 839 894 Refinery depreciation & amortization 235 255 Other: Operating expenses, net(a)(b) 73
Slide 86: Reconciliation of Speedway Total Margin to Income from Operations
Reconciliation of Speedway Total Margin to Speedway Income from Operations (a)Speedway gasoline and distillate margin is ($MM) 2Q 2018 2Q 2017 defined as the price paid by consumers less the cost of refined products, including transportation, Speedway income from operations 159 238 consumer excise t
Slide 87: Refining & Marketing Segment Income
Refining & Marketing Segment Income 2Q 2018 vs. 1Q 2018 Variance Analysis 1,250 244 1,150 1,050 1,025 950 68 (127) 850 91 129 750 (3) 650 264 Crude 43 Product (66) 550 $MM Volumetric 91 450 492 350 250 150 50 -50 -150 -250 (133) 1Q 2018 *LLS **Sweet/ **LLS/WTI **LLS **Market Other ***Direct ***Other
Slide 88: Refining & Marketing Indicative Margin
Refining & Marketing Indicative Margin 2Q 2018 3,000 381 2,855 250 50 2,500 892 (13) Crude (330) 2,000 Product 411 Volumetric 300 (1,073) $MM 1,500 1,295 1,025 1,000 (757) 500 0 *LLS **Sweet/ **LLS/WTI **LLS **Market Other R&M Direct ***Other R&M 6-3-2-1 Sour Diff. Diff. Prompt vs. Structure Margin
Slide 89: MPLX Distributions and Sales Proceeds to MPC
MPLX Distributions and Sales Proceeds to MPC* $288 300 200 $171 $MM $132 $150 $91 $99 $102 $114 100 $69 $73 $16 $18 $20 $20 $24 $27 $32 $35 $10 $15 $16 $18 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 LP Distributions GP Distribution
Slide 90: 2018 MPLX Organic Growth Capital Projects
2018 MPLX Organic Growth Capital Projects Gathering and Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Marcellus/Utica Rich- and Dry- Ongoing Sherwood 9 Processing Plant(b) Marcellus 200 MMcf/d In Service Gas Gathering(a) W
Slide 91: MPLX - Additional Announced Projects
MPLX - Additional Announced Projects Gathering and Processing Segment Continuing to execute on build out in both the Marcellus/Utica and Permian to meet industry needs – Progressing Sherwood processing complex and announced plants 12 & 13 – Announced Smithburg Complex with site capacity for 6 pote
Slide 92: MPLX Organic Growth Capital Projects
MPLX Organic Growth Capital Projects Logistics and Storage Segment Est. Completion Projects Description Date Increasing pipeline capacity to 360 MBPD; provides crude sourcing Ozark Pipeline Expansion In Service(a) optionality to Midwest refineries Wood River-to-Patoka Pipeline Increasing pipeline ca
Slide 93: MPLX - Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
MPLX - Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 2Q 2018 2Q 2017 YTD 2018 YTD 2017 (a)The Partnership makes a distinction Net income 456 191 879 378 between realized or unrealized gains Provision for income taxes 1 2 5 2 and losses on derivatives. During the Amor
Slide 94: MPLX - Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash
MPLX - Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 2Q 2018 2Q 2017 YTD 2018 YTD 2017 (a)The Partnership makes a distinction between realized or Net cash provided by operating activities 840 467 1,290 844 unrealized gains and losses on
Slide 95: MPLX - Reconciliation of Segment Adjusted EBITDA to Net Income
MPLX - Reconciliation of Segment Adjusted EBITDA to Net Income (a)The Partnership makes a distinction ($MM) 2Q 2018 2Q 2017 YTD 2018 YTD 2017 between realized or unrealized gains and losses on derivatives. During the L&S segment adjusted EBITDA attributable to 526 184 963 326 period when a derivativ
Slide 96: MPLX - Reconciliation of Segment Adjusted EBITDA to Net Income
MPLX - Reconciliation of Segment Adjusted EBITDA to Net Income Drop Impact 2Q 2018 YTD 2018 (a)The drops are the 3Q 2017 Drop (a) (a) ($MM) without Drops 2Q 2018 without Drops YTD 2018 which included Joint Interest in Drops Drops Pipeline & Storage. Assets and the 1Q 2018 drop which included the L&S
Marathon Petroleum — Barclays CEO Energy-Power Conference 2018 on 6ix