Mplx Lp · NYSE:MPLX
Mplx Lp — MLPA Investor Conference 2018
33 slides from Mplx Lp's conference presentation, May 2018
Slide 1: MLPA Investor Conference
MLPA Investor Conference May 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: Key Investment Highlights
Key Investment Highlights Diversified large-cap MLP positioned to deliver attractive returns over the long term Forecast distribution growth of ~10% for 2018 • Largest processor and fractionator in the Marcellus/Utica basins Gathering & • Strong footprint in STACK play and growing presence in Permia
Slide 4: About MPLX
About MPLX Growth-oriented, diversified MLP with high-quality, strategically located assets with leading midstream position Two primary businesses – Logistics & Storage includes transportation, storage and distribution of crude oil, refined petroleum products and other hydrocarbon-based products
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity 800 $760 1.60 Attractive returns for unitholders – Delivered 12% distribution growth in 2017 700 – Forecast 10% distribution growth in 2018 1.50 $569 Gathering & Processing provides attractive growth 600 $538 Coverage Ratio x 1.40 opportunities 500 $474 – Signif
Slide 6: Robust Organic Growth Opportunities
Robust Organic Growth Opportunities 2018 organic growth capital plan of ~$2.2 B Eleven plants expected to be complete by end of 2018 ~5% Utica – ~1.5 Bcf/d processing capacity – ~100 MBPD fractionation capacity ~20% Financing strategy Southwest ~60% (including Permian and STACK) – Maintain inves
Slide 7: Gathering & Processing Segment Overview
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 8: Marcellus/Utica Overview
Marcellus/Utica Overview 3.8 Bcf/d Gathering, 6.2 Bcf/d Processing & 531 MBPD C2+ Fractionation Capacity HOPEDALE FRACTIONATION COMPLEX BLUESTONE COMPLEX PENNSYLVANIA HARMON CREEK COMPLEX (currently under construction) OHIO HOUSTON COMPLEX MarkWest Joint Venture with EMG OHIO CONDENSATE MarkWest Joi
Slide 9: Natural Gas Supply Growth Forecast
Natural Gas Supply Growth Forecast Marcellus/Utica Basin is the Leading Growth Play ~43% of total U.S. growth is expected to occur in Northeast Total U.S. natural gas supply is forecast to grow by ~28 Bcf/d from Marcellus/Utica 2018 to 2028 MPLX well-positioned as largest 12.2 processor in North
Slide 10: Well-Positioned in Ethane Market
Well-Positioned in Ethane Market Ethane demand growing as exports and steam cracker development continues Ohio Pennsylvania in Gulf Coast and Northeast Bluestone Shell Chemical MPLX well-positioned to support Planned Steam Cracker producer customers’ rich-gas development with extensive distribut
Slide 11: Major Gas Takeaway Projects Originate at MPLX Facilities
Major Gas Takeaway Projects Originate at MPLX Facilities New takeaway pipelines expected to improve Northeast basis differentials MPLX processing complexes: – Access to all major gas residue gas takeaway pipelines – Provide multiple options with significant excess residue capacity – Ability to b
Slide 12: 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 13: Gathering & Processing Segment: Marcellus & Utica Operations
Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Gathered volumes averaged 2.7 Bcf/d, ~46% increase over first-quarter 2017 Available Average Utilization Area Capacity Volume Processed volumes averaged 5.1 Bcf/d, (%)(b) (MMcf/d) (MMcf/d) ~10% increase over first-q
Slide 14: Gathering & Processing Segment: Marcellus & Utica Fractionation
Gathering & Processing Segment Marcellus & Utica Fractionation Achieved 1Q 2018 fractionated Fractionated Volumes(a) volumes of ~395 MBPD Available Average Utilization Area Capacity Volume Achieved ~18% growth in quarterly (MBPD)(b) (MBPD) (%)(c) fractionated volumes over first- quarter 2017 1Q1
Slide 15: 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* 425MMcf/d 112MMcf/d Gathering Gathering 585MMcf/d 755MMcf/d Permian *Represents 40% of processing capacity through the Part
Slide 16: 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 pipelineSTACK Roger Mills area of Custer operations Canadian Caddo Tupelo Plant
Slide 17: Gathering & Processing Segment: Southwest Operations
Gathering & Processing Segment Southwest Operations Gathered volumes averaged 1.5 Bcf/d, Processed Volumes(a) ~10% increase over first-quarter 2017 Available Average Utilization Processed volumes averaged 1.3 Bcf/d, Area Capacity Volume (%)(b) (MMcf/d) (MMcf/d) ~5% increase over first-quarter 20
Slide 18: 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 14 – includin
Slide 19: Organic Growth Projects: Gathering and Processing
Organic Growth Projects Gathering and Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Sherwood 9 Processing Plant(b) Marcellus 200 MMcf/d In-Service Marcellus/Utica Rich- and Ongoing Dry-Gas Gathering(a) Houston I Processing
Slide 20: Logistics & Storage Segment Overview
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 21: Logistics & Storage Revenue – Customer Mix
Logistics & Storage Revenue(a) – Customer Mix 2017 MPC = 92% Fee-based long-term contracts with minimal commodity exposure(c) 8% Primary assets and services 6% $123 – Crude oil and refined product pipelines MM $96 MM • MPC represented over 84% of volume shipped • For FERC-regulated pipelines, we
Slide 22: Organic Growth Projects: Logistics & Storage
Organic Growth Projects Logistics & Storage Segment Est. Completion Projects Description Date Displaces MPC’s third-party storage services and optimizes butane Robinson Butane Cavern In-Service handling Increasing pipeline capacity to 360 MBPD; provides crude sourcing Ozark Pipeline Expansion Mid-20
Slide 23: 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 24: 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 25: 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 six MPC refineries to MPC’s marketing operations Integrated with expansive networ
Slide 26: 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 Piping to connect process units, vessels at Gulf Coast refineries
Slide 27: Terminal and Storage Assets
Terminal and Storage Assets Provides flexibility and logistics optionality 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: – O
Slide 28: 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 244 barges, 20 towboats as of March 31, 2018 Operates full-service marine sh
Slide 29: Long-term Value Objectives
Long-term Value Objectives Deliver Sustainable Distribution Growth rate that provides attractive total unitholder returns Increase EBITDA through attractive investments and optimization of existing assets Execute and expand Robust Portfolio of Organic Growth Projects in support of producer cus
Slide 30: Appendix
Appendix 30
Slide 31: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income (a)The Partnership makes a distinction between ($MM) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 realized or unrealized gains and losses on Net income (loss) (14) 72 194 182 187 191 217 241 423 deriv
Slide 32: 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 (YTD) (a)The Partnership makes a distinction between Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, ($MM) realized or unrealized gains and losses on 2016 2016 2016 2016 20
Slide 33: MPC's Fully Integrated Downstream System
MPC’s Fully Integrated Downstream System Refining & Marketing Six-plant refining system with ~1.9 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market area One of the largest producers of asphalt in the U.S. ~5