Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Deutsche Bank Refining Conference (January 2012)
88 slides from Marathon Petroleum's conference presentation, Jan 5, 2012
Slide 1: Deutsche Bank Refining Conference
Deutsche Bank Refining Conference January 5, 2012 Marathon (IN\\ Petroleum Corporation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, Marathon Petroleum Corporation’s (MPC) current expectations, estimates and proj
Slide 3: Spin-off Details
Spin-off Details ® On January 13, 2011, Marathon’s Board of Directors announced they had approved plans for moving forward with the spin-off of the Downstream business @ Results in two strong, highly focused energy companies = Marathon Oil Corporation (MRO) = Marathon Petroleum Corporation (MPC) @ T
Slide 4: Marathon's Pre-Spin Business Segments
Marathon’s Pre-Spin Business Segments Exploration & Production Refining, Marketing and Transportation Integrated Gas Oil Sands Mining
Slide 5: Focused and Integrated Operations
Focused and Integrated Operations @ Flexibility and integration advantage: = Integrated six-refinery system B® One of the largest domestic... = Petroleum pipeline networks based on volume moved = Terminal operators = Asphalt producers = Private inland bulk liquid barge fleets HE Marketing Area Refin
Slide 6: MPC Key Highlights
MPC Key Highlights ® Strong credit profile and liquidity ® Fully integrated downstream system @ Strong competitive positioning versus peer group M@ Impressive safety and environmental record ™@ Strategically located in Midwest/PADD II and USGC/PADD Ill regions ™@ Extensive midstream network and reta
Slide 7: MPC Strong Credit Profile and Liquidity
MPC Strong Credit Profile and Liquidity Historical Financial Summary Financial Policies Year Ended 9 Mo. Ended Sept. 30 @ Committed to Investment Grade profile ae Rating Agency S&P Moody's Income from Operations 1,011 654 1,855 3,903 660 © Maintain strong access to liquidity, with Net Income 623 449
Slide 8: Fully Integrated Downstream System
Fully Integrated Downstream System Refining and Marketing @ Six-plant refining network with 1,193,000 barrels per day of crude oil refining capacity ™ One of the largest wholesale suppliers of gasoline and distillate within our market areas ™ One of the largest producers of asphalt in the U.S. @ ~5,
Slide 9: 2010 Refinery Throughput and Sales
2010 Refinery Throughput and Sales Crude Saleable Throughput Product Sales 1,173 MBD 1,589 MBD 24.3 B GAL/YR Foreign Term 21% jarathon Brar 17% i Speedway —e— 13% a wat, ——— +233 MBD purchased for resale 1,356 MBD * * Refinery yields Note: All the above include the results of the Minnesota assets wh
Slide 10: Relative Refining Position
Relative Refining Position (MBD) U.S. Crude Refining Capacity (#) # of U.S. Refineries “ 3,000 2,000 1,000 0 ° < eo £ = 2 @e 0 = $e 8 § 38 & 3 $$ § §2 8 3 § & $ s 5 di 2° 8 ¢ § 5 3 § 3 * “38 § > § & roe é > wor 6 a (MBD) Average Crude Capacity of (NCI) Nelson Complexity Index “) 300 > 279 oss U.S. R
Slide 11: Impressive Safety and Environmental Record
Impressive Safety and Environmental Record Safety OSHA Recordable Incident Rate Days Away Rate 2.00 > (Employee and Contractor History) 1.00 = (Employee and Contractor History) 1.37 0.97 0.90 4.73 0.80 0.50 | 0.12 0,09 0.09 913 0.10 0.08 912 go3 o.oo | oe ee ee 2004 2005 2006 2007 2008 2009 2010 201
Slide 12: Garyville Major Expansion (GME) Project
Garyville Major Expansion (GME) Project [S 5 / H Garyville, LA refinery is last grassroots refinery built in the U.S. (1976) ™@ Base Garyville refinery, 2008 Solomon survey = Best U.S. cash cost operating expense = Second-best U.S. Energy Intensity Index B® $3.9 billion, excluding capitalized intere
Slide 13: Garyville: World-class Refinery
Garyville: World-class Refinery — Worldwide omens Blue Water Logistics ™@ New dock increased capacity by 40% Supply Florida while increasin ® = Inaddition to products, suppo opportunity crudes, feedstock: blendstocks Brown Water Logistics @ = Import heavy Canadian crudes @ = Allows movement of inter
Slide 14: Attractive Midwest/PADD II
Attractive Midwest/PADD II ™ Demand exceeds refining capacity in v ; ) PADD II —/ PADDIVG = Import ~18% of demand into PADD II PADD v / PADD II Enhances margin opportunities Transportation premium embedded in : | a PADD II product prices PADD Ill L, Higher refinery utilization rates Relatively leane
Slide 15: CAPP Western Canada Crude Supply Forecast
CAPP Western Canada Crude Supply Forecast Annual Growth from 2010 - 2025 MBD Light Supply 16 6,000 Heavy Supply 154 Actual Forecast Oil Sands Heavy* MBD Conventional Light 0) 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 *Oil Sands Heavy includes some volumes of upgraded heavy sour crude oi
Slide 16: MPC Well Positioned to Capture Oil Sands Economics
MPC Well Positioned to Capture Oil Sands Economics Advantaged Location Should Lead to Higher Relative Profitability lardisty Hardisty to Detroit ~$7.35/BBL Hardisty to USGC | ~$5.50/BBL Detroit Value vs. USGC Refineries for Canadian Heavy Processing SBBL Laid-In Crude Cost 1.85 ~$1.70/BBL . Houston
Slide 17: Detroit Heavy Oil Upgrade Project
Detroit Heavy Oil Upgrade Project “Excludes capitalized interest (MY Scope — Increases heavy oil capacity an additional 80,000 BCD; including “difficult to process” Canadian crudes = 28,000 BCD delayed Coker = 36,000 BCD Distillate Hydrotreater (DHT) = Crude capacity increases ~15,000 BCD Strategic
Slide 18: Options... Detroit Logistics
Options... Detroit Logistics @ Enbridge @ 2 Enbridge ® Canadian crude via multiple routes Stockbridge B@ Virtually all world crudes available via pipelines from USGC Samaria Lima H All gasoline production sold in local market Mid Valley Strategically Located for Multiple Crude Supply Routes
Slide 19: Strategy — Maximize Price-Advantaged Crude Oil
Strategy — Maximize “‘Price-Advantaged” Crude Oil IL Se = | } Eagle Ford as Shale Garyville Opportunity Crude Oils
Slide 20: Lower 48 States Shale Plays
Lower 48 States Shale Plays Bakken** ‘Williston Shale plays Current plays Prospective plays Stacked plays Shallowest/ youngest — Intermediate depth age — Deepest oldest ‘Source: Energy Information Administration based on data from various published studies. Updated: May 9, 2011
Slide 21: Utica Shale Opportunity
® Ohio Department of Natural Resources estimates 1.3 to 5.5 billion barrels of recoverable oil ® Canton and Catlettsburg refineries are both ideally located @ MPChas other infrastructure in this area @ First-mover advantage Catlettsburg Refinery Source: Ohio Department of Natural Resources Capture E
Slide 22: Pipeline, Barge and Terminal Logistics
@ Pipeline and barge logistics = Focused on optimal refinery crude supply and product placement ® Destination choice in product markets ® Efficiency, flexibility, speed ® Terminal network ® Critical mass in key markets = Key to E-10 expansion = Speedway transport hi Refineries mmx Connecting Pipelin
Slide 23: MPC's Logistical Assets vs. Peers
MPC's Logistical Assets vs. Peers em =MPC's Midwest Refined Products Logistics System Tesoro Sun Wr Logistics(*) oa j “a UKE HURON —_— eo 132 1,449 —— Pipeline Volume 2,239 259 (Bp) * Pipeline Miles * 3,749 676 868 5,336 Terminals 83 NLR. 18 42 Transports 120 NLR. Operate None for proprietary produc
Slide 24: Extensive Retail Network
Extensive Retail Network @ Speedway = Fourth largest U.S.-owned/ operated c-store chain Speedway = ~1,375 stores Brand = ~2 million customers/day = Located in seven states ® Marathon brand = Independent entrepreneurs =» ~5,100 branded locations As of 9/30/11 = Located in 18 states
Slide 25: Benefits of Retail Integration
Benefits of Retail Integration ®@ Ratable sales ® Optimized operations = Refining = Pipeline = Terminal ® Biofuels blending base load ® Supply dislocation flexibility @ Reduced credit risk (Speedway) Refineries Connecting Pipelines [lll Terminals Fully Integrated Downstream Business Inland wat: Coas
Slide 26: Speedway vs. Public Peers - 2010
Speedway vs. Public Peers - 2010 350 300 250 200 150 10! 5 oO M Gal/Store/Month o oO $M/Store/Month i uw Source: Company Re; Light Product Sales Independent Refiners Public C-Store Casey's Average 156.6 | 179.7 Tt i . | Couche-Tard Pantry Susser Speedway* Valero Murphy Sunoco Tesoro Delek Western Re
Slide 27: Speedway vs. Public Peers - 2010 Merchandise
Speedway vs. Public Peers - 2010 200 ea Sales Independent Refiners - Public C-Store Average 97.2 | ° Ss _ Average 107.9 ~ 2 2 100 ~ = : LI 0 Casey's Couche-Tard Pantry Susser Speedway* Valero Murphy Sunoco Tesoro Delek Western Refining 50 Public C-Store Merchandise Margin Average 37.1 42.4 € 40 Inde
Slide 28: Speedway Sales and Margin
Speedway Sales and Margin Light Product Volume .22 3.23 3.30 3 434 398 333 ba 1 (4.7) 13.50 10.30/MM | 2.07 0 0 Light Product Gross Margin a So oO J 45 B Gallons N $ Millions Lb o ro) l N [=] So 1 2008 2009 2010 2011* 2008 2009 2010 2011* (Same Store % inside bars) (Cents per gallon inside bars) 4-
Slide 29: Speedy Rewards Loyalty Program Increasing Membership
Speedy Rewards Loyalty Program 4 Increasing Membership Ww Active Members (MM) N 2005 2006 2007 2008 2009 2010 2011* Industry-leading loyalty program Customers earn points on every purchase Customers redeem points for free merchandise and fuel discounts 3.7 MM active Speedy Rewards members Heavy vend
Slide 30: Speedway Brand Value
Speedway Brand Value $6.0 FS *. $5.6 Record contributions to wo $4.0 £45 ‘ . c : e Children’s Miracle pe = $3.0 Children’s Network = $2.0 —— lospitals $0.0 - : 2007 2008 2009 2010 £ Top Retail Gasoline Brand in the U.S. for past 3 consecutive years. EquiTrend, Harris Interactive Voted #1 in Customer
Slide 31: Diversified Income Stream
Diversified Income Stream 2009 Segment Income 2010 Segment Income from Operations from Operations Pipeline Transportation Pipeline Transportation $172 MM Refining & $183 MM 14% 21% Marketing $452 MM 54% Refining & Marketing $800 MM 63% Speedway $293 MM 23% Speedway $212 MM 25% 2011* Segment Income f
Slide 32: Pre-Tax Adjusted Domestic Operating Income per Barrel
Pre-Tax Adjusted Domestic Operating Income per Barrel of Crude Oil Throughput 15 10 a ao 35 _ ~~ we 0 1 1 -5 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sept. v1 MPC’s Rank 3 3 2 i 2 3 7 2 i 5 3 Z 3 1 Companies Ranked* 12 11 il 9 10 10 9 8 8 9 9 8 8 8 “Current companies ran
Slide 33: Experienced Board of Directors
Experienced Board of Directors Name Title Evan Bayh Former Senator from and Governor of Indiana David A. Daberko* Former Chairman and CEO — National City Corporation William L. Davis* Former Chairman and CEO — RR Donnelly & Co Gary R. Heminger President and CEO — MPC Donna A. James Corporate Directo
Slide 34: Experienced Management Team
Experienced Management Team Experienced Team with Extensive Industry Experience Years of Service | Title Gary R. Heminger 36 President and Chief Executive Officer Pamela K. M. Beall 16 Vice President — Investor Relations and Gov. & Public Affairs Richard D. Bedell 32 Senior Vice President — Refining
Slide 35: Strategic Performance - 2011
Strategic Performance - 2011 Y Completed successful spin-off from Marathon Oil Corporation Y Completed financing at separation V Established strong balance sheet V Increased quarterly dividend V Produced strong operating income per barrel of crude throughput Y Generated significant free cash flow Ex
Slide 36: Strategic Direction - 2012
Strategic Direction - 2012 U) Complete Detroit Heavy Oil Upgrade Project OU) Optimize Garyville UO) Pursue Price Advantaged Crude Projects O) Initiate Organic Value-Adding Projects UO) Grow Speedway and Brand Sales Volume O) Consider Selective Acquisitions to Leverage Existing Portfolio U) Return Ca
Slide 37: Corporate Priorities
Corporate Priorities ™@ Achieve excellence in safety, Bal environmental performance alance and operations ® Maintain investment grade Ve credit profile Customers M@ Increase earnings and Discipline and Flexibility cash flow Shareholders = Organic investments = Selective value accretive acquisitions
Slide 38: Appendix
Appendix
Slide 39: 3Q 2011 Earnings
3Q 2011 Earnings $856 MM a \ \ \ 3Q2010 ‘3a 2011 Net Income $277MM_ $1,133 MM Net Income per Diluted Share $0.77 $3.16 Adjusted Net Income Adjusted Net Income per Diluted Share $3,000 m4Q 3Q $8 m4Q §3Q =2Q m1Q m2 a1 $2,000 _ $6 ~~ a é 6 w 94 = 1,000 557 s $2 0.65 a) $0 S 0.77 so -$1,000 $2 2010 2011
Slide 40: Net Income
Net Income 3Q 2011 vs. 3Q 2010 Variance Analysis $2,000 1,359 (20) 17 (51) (449) —_—_—_—_— Pe $1,500 ~ 2 1,133 6 2 $1,000 = $500 — 277 SO | [| . . . . . . 3Q2010 Refiningand Speedway Pipeline Other Income Taxes 3Q2011 Marketing Transportation (Pre-tax)
Slide 41: Refining and Marketing Segment Income
Refining and Marketing Segment Income 3Q 2011 vs. 3Q 2010 Variance Analysis $1,800 | 1,376 (17) 1,711 $1,600 - $1,400 - $1,200 - $1,000 - $800 $600 — $400 352 sO | Millions 3Q2010 R&M Gross Margin Other 3Q2011
Slide 42: Refining & Marketing Segment Income & Market Indicators
Refining & Marketing Segment Income & Market Indicators lm Segment Income —Total Throughputs ——R&M Refined Products Sold $2,000 2,000 ? q ae 1,500 H S $1,200 —_ p41, fe $800 a 2? poo EI ee += a — H $o 5 Es} 352, 303 . . | 500 3 3 -$400 3 -$800 0 : 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 Sel
Slide 43: Speedway Segment Income
Speedway Segment Income 3Q 2011 vs. 3Q 2010 Variance Analysis J $120 105* (17) $100 - (3) $80 - $60 — Millions $40 - $20 — 3Q2010 Minnesota Asset Sale Other 3Q2011 SO - * Includes 166 convenience stores and 67 franchise stores sold as part of the Minnesota refinery and related assets in December 201
Slide 44: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income 3Q 2011 vs. 3Q 2010 Variance Analysis $80 » 28 (7) sea - a i! 56 ra s $40 | 39 = $20 - SO | + ' 3Q 2010 Maintenance & Equity Affiliates Other 3Q2011 Impairment Expense
Slide 45: Total Company Cash Flow
Total Company Cash Flow 3Q 2011 $4,000 ~ 238 (317) $3,000 - 40) 4 2,957 wo 6 2 $2,000 - = 1,622 $1,000 - 0) 06/30/11 Operating Working Cash Capital Dividends Paid Other 09/30/11 Cash Cash Flow Capital Expenditures Cash Balance before and Balance Working Investments Capital
Slide 46: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($ Millions unless otherwise noted) 2011 2011 2Q 3Q As of quarter ended: Cash and cash equivalents 1,622 2,957 Total debt* 3,274 3,299 Cash-adjusted total debt 1,652 342 Stockholders’ equity 8,977 10,049 Cash-adjusted debt to capital ratio 16% 3% Year to date: Net
Slide 47: EBITDA Reconciliation to Net Income
EBITDA Reconciliation to Net Income Year-Ended 9 Mo. Ended Sept. 30 Net Income 2,694 623 449 1,215 2,464 393 — Party net interest and other financial 48 24 4s 26 35 n Less: Net interest and other financial income (costs) (42) (12) (14) 4 (39) (9) Add: Provision for income taxes 1,566 400 236 670 1,4
Slide 48: Segment EBITDA Reconciliation to Net Income
Segment EBITDA Reconciliation to Net Income Year-Ended 9 Mo. Ended Sept. 30 Refining and Marketing segment EBITDA 1,539 950 1,819 4,307 1,058 Speedway segment EBITDA 404 343 408 280 311 Pipeline Transportation segment EBITDA 245 213 221 195 181 Total Segment EBITDA 2,188 1,506 2,448 4,782 1,550 Less
Slide 49: Reconciliation
Reconciliation Net Income to Adjusted Net Income ($ Millions) SS SS ee 277 230 529 Net Income (289) 405 802 1,133 Impairments 17 Pension settlement 3 Income tax law changes 26 17 Adjusted Net Income (263) 422 277 233 529 819 1,133
Slide 50: Financial Overview: Segment EBITDA
Financial Overview: Segment EBITDA YTD 2011 Refining and Marketing 4,307 1,539 950 1,819 Speedway 280 404 343 408 Pipeline Transportation 195 245 213 221 Total Segment EBITDA 4,782 2,188 1,506 2,448 Items not allocated to segments (218) (236) (182) 13 Total EBITDA 4,564 1,952 1,324 2,461 Note: YTD 2
Slide 51: Financial Overview: Capital Expenditures & Investments
Financial Overview: Capital Expenditures’ & Investments YTD 2011 Refining and Marketing 600 961 2,241 2,665 Speedway* 121 84 49 61 Pipeline Transportation 69 24 55 167 Corporate** 104 104 240 124 Total 894 1,173 2,585 3,017 (1) Includes changes in aecruals. “Includes $74 million acquisition of 23 co
Slide 52: Annual Price and Margin Sensitivities
Annual Price and Margin Sensitivities $ Millions (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity ~$300 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$150 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$65 (per $1.00/barrel change) Refined Product Wholesale Margin Sensi
Slide 53: MPC Financing Structure
MPC Financing Structure H@ Issued $3 billion in new long-term debt — $750 million 5-year notes, 3.5% — $1 billion 10-year notes, 5.125 % — $1.25 billion 30-year notes, 6.5% M S2 billion new 4-year revolving credit facility H ~S1 billion 3-year trade receivables securitization facility ™ $2.957 billi
Slide 54: Capital Expenditures and Investment
Capital Expenditures and Investment* 2012 Preliminary View 3,500 3,000 2,500 2,000 1,500 1,000 500 i 2008 2009 2010 2011E 2012E $ Millions oO @ Refining and Marketing Pipeline Transportation mSpeedway wm Other *Excludes capitalized interest. Disciplined Capital Investment
Slide 55: 2012 Capital Spending Allocation
2012 Capital Spending Allocation* Environmental Regulatory Programs 3% Safety and Security 2% 9% ala il aac Expansion/Growth/ Improvements . A 11% ipa ‘o Capital Replacements 14% Other Refining and Transportation Corporate ** 6% ° “Excludes capitalized interest 6% **Primarily information technology
Slide 56: Equity Repurchase and Issuance Considerations
Equity Repurchase and Issuance Considerations @ Preservation of tax-free status of spin-off is a high priority for MPC ® Various tax considerations around distributions and acquisitions of MPC stock for two years following the separation @ May elect to seek either an unqualified tax counsel opinion
Slide 57: U.S. Distillate Exports Continue to Grow
U.S. Distillate Exports Continue to Grow B@ USS. distillate exports continue U.S. Distillate a 2003-2010 to reach record levels, 700 exceeding 900 MBD in early 00 — "Central & South America October 2011. 500 Mexico = Netherlands ™@ Gasoline exports have also a = Other strengthened, exceeding = impor
Slide 58: U.S. Oil Net Product Exports
U.S. Oil Net Product Exports* 2,000 1,500 1,000 MBD % y Y y ¥ y 4% A %, be, %, Sq er, Gy Se te a, x, 2 % 8 % % % 8 % % % 0 % % % 7 *Excludes crude oil and unfinished oils Source: U.S. Energy Information Agency ~2.5 MMBD Change in Demand for U.S. Refinery Production
Slide 59: Market View
Market View Key Market Drivers MPC Outlook Economy Demand Growth Crude Oil Supply Global Refining Capacity Alternative Fuels, CAFE Standards Regulatory Environment »> »> »> »> » »> Slow but double-dip recession unlikely Distillate demand continues to lead Peak oil - not on the horizon Modernization
Slide 60: Price Advantaged Crudes Continue to Increase
Price Advantaged Crudes Continue to Increase 100% MPC Crude Slate ‘0 90% 80% @ Other Sweet 70% ™ Other Sour 60% 90% ™@ Canadian Heavy 40% m@ WTI Based 30% 20% ; ; a 10% 28% 30% 33% 35% ‘0 0% eon 4Q10 1Q11 2Q11 3Q11 (A) ee
Slide 61: Refinery Unit and Production Capacity - Garyville
Refining: Refinery Unit and Production Capacity Garyville, Lovisiana Crude 490,000 Vacuum Distillation 254,000 Coking 82,700 Catalytic Cracking 134,000 Catalytic Reforming 114,500 Catalytic Hydrocracking 88,400 Catalytic Hydrotreating 496,000 Alkylation 27,600 Polymerization / Dimerization — Aromati
Slide 62: Refinery Unit and Production Capacity - Catlettsburg
» ¢ Daltna R eT ini ng: R erinery Catlettsburg, Kentucky Crude Vacuum Distillation Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation Polymerization / Dimerization Aromatics Isomerization Cumene Coke (Short Tons per Day) (2) Sulfur (Long Tons per
Slide 63: Refinery Unit and Production Capacity - Robinson
Robinson, Illinois Crude 206,000 Vacuum Distillation 68,000 Coking 27,600 Catalytic Cracking 51,800 Catalytic Reforming 76,000 Catalytic Hydrocracking 27,100 Catalytic Hydrotreating 177,700 Alkylation 11,900 Polymerization / Dimerization - Aromatics — Isomerization 14,700 Cumene — Coke (Short Tons p
Slide 64: Refinery Unit and Production Capacity - Detroit
Refining: Refinery Unit and Production Capacity ‘ Detroit, Michigan e 1) Crude 106,000 Vacuum Distillation 52,300 Coking _ Catalytic Cracking 30,900 Catalytic Reforming 20,400 Catalytic Hydrocracking — Catalytic Hydrotreating 100,400 Alkylation 4,800 Polymerization / Dimerization — Aromatics — Isome
Slide 65: Refinery Unit and Production Capacity - Texas City
> Refining: Refinery Unit and Production Capacity Texas City, Texas Crude 80,000 Vacuum Distillation = Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation Polymerization / Dimerization Aromatics Isomerization Cumene Coke (Short Tons per Day) (2) S
Slide 66: Refinery Unit and Production Capacity - Canton
Canton, Ohio Crude Vacuum Distillation Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation Polymerization / Dimerization Aromatics Isomerization Cumene Coke (Short Tons per Day) '?) Sulfur (Long Tons per Day) (3) Asphalt PADD (1) As of January 1,
Slide 67: Garyville Diesel Projects
Garyville Diesel Projects ™ Scope-— Modify Crude Unit, Hydrocracker and Distillate Hydrotreaters ™ Strategic Focus — Increase finished ULSD production from gas oil @ Material Balance (MBCD) = Increased diesel 25 * Increased gasoline 10 = Increased gas oil feedstock 30 Investment: ~$250 million over
Slide 68: Garyville Gasoline and Diesel Export
Garyville Gasoline and Diesel Export ™@ Scope —Add gasoline export tank and expand diesel loading capacity to docks ® Strategic Focus — Increase export capability @ Shipping capacity = Increasing export capacity of gasoline and diesel from ~70 MBCD to ~100 MBCD BH Investment: ~$40 million ®@ Estimat
Slide 69: Catlettsburg No. 5 Vacuum Cut-point Improvement
Catlettsburg No. 5 Vacuum Cut-point Improvement ™ Scope — Modify No. 5 Crude Unit during the 2014 turnaround @ Strategic Focus — Improve gas oil recovery and reduce purchased feedstocks ® Material Balance — Constant crude rate with 4.4 MBCD less purchased gas oil H™ Investment: ~$100 million over fo
Slide 70: Robinson Unicracker Revamp
Robinson Unicracker Revamp ™ Scope —Convert Hydrocracker to improve yields ® Strategic Focus — Take advantage of favorable diesel value over gasoline = Material Balance — Shift five to 10 MBCD from LPG/gasoline to diesel = Investment: ¥$75 million over four years = Estimated incremental annual EBITD
Slide 71: Distillate Production Profile
Distillate Production Profile 500 | ~ 40% as = 450 38% a 400 36% 9 4 ba = 350 - 34% = S 300 32% 8 8 & = 250 30% § 2 o & 200 28% se = 150 26% & = ‘0 2 g © 100 24% = 50 22% 0 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 est est est est est mmm MPC Distillate MBCD — MPC Distilla
Slide 72: Diesel Production Profile
Diesel Production Profile (Excludes Kerosene and Jet Fuel) 500 ~ 40% 450 38% 5 400 36% © & 350 34% & = < § 300 32% 8 250 - 30% & 3 . x £ 200 - - 28% & 3 150 - 26% € 2 [3 a oO 100 - 24% 50 - 22% 0 - 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 est est est est est mame IVIPC Di
Slide 73: Keystone Pipeline
Keystone Pipeline Edmonton Mountain Burnaby Anacortes Portland multiple Salt Lake City th MPC Refineries ==> Keystone «= Planned StJames i -— ===> Enbridge Mainline Houston = heels “rable ig i minal Freeport Echo Te Significantly Expands Canadian Crude Options
Slide 74: Leveraging Keystone Pipeline
Leveraging Keystone Pipeline @ MPC Canadian volumes will continue to rise as we remove tankage and pipeline constraints at the origin and destination terminals Enbridge Hardisty Commercial Terminal ® Additional tankage @ Pipeline connection debottlenecking Plains Terminal at Patoka @ Other commercia
Slide 75: Canadian Synthetic Crude Opportunity
™ Canadian synthetic has not been part of “Advantaged” crude definition @ Synthetic spreads have widened since midyear @ Working around constraints to Enbridge Hardisty Commercial Terminal increase supply —e-BRENT —#LLS WTI Differentials —SYN —@®WCS Plains Terminal at Patoka Dollar per Barrel § s ¥
Slide 76: Dynamic Landscape: Canadian Crude - Present Supply
Dynamic Landscape: Canadian Crude Present Supply Edmonton Mountain Burnaby mat Enbridge auoyshay Portland Salt Lake City ih MPC Refineries ===> Enbridge Mainline = NewConstruction
Slide 77: Dynamic Landscape: Canadian Crude - Proposed Supply
Dynamic Landscape: Canadian Crude Proposed Supply Edmonton me Enbridge Portland auoyshay Salt Lake City MPC Refineries Enbridge Mainline Planned x 2 lve New Construction
Slide 78: MPC Tactical Options - Keystone Pipeline
MPC Tactical Options Keystone Pipeline Key Facts @ Owner -TransCanada @ Origin —-Hardisty @ Destination —-Wood River, Patoka, Illinois and Cushing, Oklahoma @ Diameter — 30” to Patoka; 36” from Steele City to Cushing Distance — 2,148 Miles Capital - $5.2 Billion Current capacity — 590 MBD Status — C
Slide 79: MPC Tactical Options - Keystone XL Pipeline
MPC Tactical Options Keystone XL Pipeline Key Facts Owner - TransCanada Origin — Hardisty Destination — Port Arthur/Houston Diameter — 36” Distance — 1,980 Miles Capital - $7.8 Billion Status — ? Estimated completion = Cushing to USGC — ? = Hardisty to Steele City —? H@ Initial capacity * Cushing to
Slide 80: Options... Cushing
Options...Cushing ® Cushing Pipelines/Refineries NCRA — McPherson, KS ConocoPhillips — Ponca City, OK CONOCO PHILLIPS PL ae WRB - Borger, TX Current CUSHING Capacities Pipelines Total IN 1,875 MBD Pipelines Total OUT 985 MBD STORAGE 58.6 MMBBL Gary Williams - wm etunio® Wynnewood, OK
Slide 81: Indicative Rail Costs Bakken to East Coast
Slide 82: Indicative Barge Costs - South Texas to East Coast
Slide 83: Midwest Refineries' Opportunity
Slide 84: Texas City Refinery Opportunity
Slide 85: Garyville Opportunity Crudes
Slide 86: Refined Product and Crude Spreads
Slide 87: Convenience Store Industry Profile
Slide 88: Pipeline Transportation Segment Revenue Generated from Third Parties
Marathon Petroleum — Deutsche Bank Refining Conference (January 2012) on 6ix