Mplx Lp · NYSE:MPLX
Mplx Lp — Merger or Acquisition (May 2019)
28 slides from Mplx Lp's merger presentation, May 8, 2019
Slide 1: MPLX Announces Agreement to Acquire ANDX and First-Quarter 2019 Highlights
MPLX Announces Agreement to Acquire ANDX and First-Quarter 2019 Highlights May 8, 2019
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 Andeavor Logistics LP (ANDX). These forward-looking statements relate to, among other things, the proposed acquisition of ANDX by MPLX and inclu
Slide 3: Additional Information
Additional Information Additional Information and Where to Find It In connection with the proposed transaction, a registration statement on Form S-4 will be filed with the SEC. INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WIT
Slide 4: Transaction Highlights
Transaction Highlights Simplified Structure. Broader Footprint. Enhancing Returns. ● MPLX to acquire all common units of ANDX at 1.07x blended exchange ratio representing a 1% premium to market1 ● 1.1350x exchange ratio to ANDX public unitholders, representing a 7.3% premium Consideration & ● 1.0328
Slide 5: Simplified Organizational Structure
Simplified Organizational Structure Current1 Pro Forma1 Marathon Petroleum Corporation Marathon Petroleum Corporation (NYSE:MPC) (NYSE:MPC) Non-economic 100% GP interest Non-economic 100% GP interest Non-economic 100% GP interest Tesoro MPLX MPLX 63.0% of Logistics Common GP LLC GP LLC Units GP LLC
Slide 6: Positioning MPLX For Long-Term Success
Positioning MPLX For Long-Term Success 2017-2018 Completed Drop Downs 2012 and IDR IPO Buy-In 2015 2019 MarkWest Strategic Combination Combination with ANDX 6
Slide 7: Aligned Strategic Priorities
Aligned Strategic Priorities Capture Full Enhance Grow in Leverage Financial Midstream Cash Flow Premier MPC Discipline Value Chain Stability Basins Relationship Participate across Long-haul pipelines Permian: Fosters further Self-funding equity value chain to to add further stable significant growt
Slide 8: Capturing Permian Opportunities
Capturing Permian Opportunities Creating an integrated footprint from Legend Crude the Permian to the Gulf Coast NGL Natural Gas 1 Gathering and processing Delaware & Midland Basins TEXAS 2 Long-haul pipelines 1 3 Fractionation 2 3 4 4 Export terminals 8
Slide 9: Permian G&P Feeds Downstream Opportunities
1 Permian G&P Feeds Downstream Opportunities Gathering systems create significant growth opportunities in the Permian TexNew Conan Mex Gathering Preakness Torñado System System Argo Apollo 1 Legend Crude pipeline To Texas City area Hidalgo Natural gas pipeline NGL pipeline To Houston To Agua Dulce C
Slide 10: Permian Crude Pipeline
2 Permian Crude Pipeline Wink-to-Webster Pipeline (W2W) – Signed letter of intent to partner with ExxonMobil, Plains All American, and Lotus Midstream – 36” mainline with 1.5 MMBPD capacity TEXAS – Origins: Wink and Midland Wink – Destinations: Webster, Baytown, Texas City – MPLX equity of ~15% Galv
Slide 11: Permian Natural Gas and NGL Pipelines and Fractionation
2 Permian Natural Gas and NGL Pipelines and 3 Fractionation Whistler Residue Gas Pipeline – JV with White Water Midstream and others – 42” pipeline with ~2.0 Bcf/d capacity – Anticipate in-service early 2021 TEXAS Orla BANGL Pipeline (Belvieu Alternative NGL) Waha – JV with White Water Midstream
Slide 12: Expanding Export Capabilities
4 Expanding Export Capabilities Export facilities create ability to generate third party revenue and meet global demand for crude, refined products, and NGLs Currently in service – Mt. Airy, LA: acquired in 3Q18 – LOOP: expansion with planned Capline reversal and Swordfish Pipeline TEXAS Planned
Slide 13: MPLX First-Quarter 2019 Highlights
MPLX First-Quarter 2019 Highlights 13
Slide 14: 1Q 2019 Financial Highlights
1Q 2019 Financial Highlights Adjusted EBITDA Distributable Cash Flow 1500 2018 2019 1500 2018 2019 Capital Investments* 1000 930 1000 Declared 760 757 $MM $MM Distributions 619 214 500 500 543 0 0 1Q 1Q Use of DCF Three Months Ended Segment Adjusted EBITDA ($MM) March 31 2018 2019 Logistics and Stor
Slide 15: 1Q 2019 vs. 1Q 2018 Adjusted EBITDA
1Q 2019 vs. 1Q 2018 Adjusted EBITDA 1,000 53 48 930 69 800 760 G&P 371 600 G&P 323 $MM 400 L&S L&S 559 200 437 0 1Q 2018 Adjusted EBITDA Dropdowns Logistics & Storage Gathering & Processing 1Q 2019 Adjusted EBITDA Attributable to MPLX Attributable to MPLX 15
Slide 16: Financial and Balance Sheet Highlights
Financial and Balance Sheet Highlights As of ($MM except ratio data) 3/31/19 Cash and cash equivalents 93 Total assets 23,584 Total debt(a) 13,833 Redeemable preferred units 1,004 Total equity 6,929 Full-year distribution coverage 1.41x Leverage(b) 3.9x Remaining capacity available under $2.25 B rev
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Slide 18: Appendix
Appendix 18
Slide 19: Logistics & Storage Segment
Logistics & Storage Segment Reported 1Q19 adj. EBITDA of $559 million, which increased 12% year-over- year after adjusting for the impact of dropdowns Headquarters Pipeline throughputs averaged 3.41 MPLX Pipelines: Owned & Operated MMBPD, ~11% increase over 1Q18 MPLX Interest Pipelines: Operated
Slide 20: Gathering & Processing Segment
Gathering & Processing Segment Reported 1Q19 adjusted EBITDA of 1Q19 Processed Volumes(a) $371 million, which increased 15% Capacity at Average Utilization of year-over-year Area End of Quarter (MMcf/d) Volume (MMcf/d) Available Capacity (%)(b) 1Q19 volumes (% increase vs. 1Q18): Marcellus 5,720
Slide 21: Gathering & Processing Segment
Gathering & Processing Segment Processed Volumes Marcellus/Utica Processed Volumes(a) Southwest Processed Volumes(a) Capacity at End Average Utilization of Capacity at End Average Utilization of Area of Quarter Volume Available Area of Quarter Volume Available (MMcf/d) (MMcf/d) Capacity (%)(b) (MMcf
Slide 22: Organic Growth Capital Projects
Organic Growth Capital Projects Logistics & Storage Segment Est. Completion Projects Description Date Marine Fleet Expansion Displaces MPC’s third-party barges and supports increased demand 2019 Mt. Airy Terminal Expansion Constructing 2nd 120 MBPD dock and incremental storage 2020 Provide transport
Slide 23: Organic Growth Capital Projects
Organic Growth Capital Projects Gathering & Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Omega 1 Expansion Cana-Woodford 45 MMcf/d In Service Marcellus/Utica Rich- and Ongoing Dry-Gas Gathering(a) Sherwood 12 Processing P
Slide 24: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 1Q 2019 1Q 2018 (a)The Partnership makes a distinction Net income 509 423 between realized and unrealized gains Provision (benefit) for income taxes (2) 4 and losses on derivatives. During the Amortization of deferred fin
Slide 25: 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 ($MM) 1Q 2019 1Q 2018 (a)The Partnership makes a distinction Net cash provided by operating activities 618 450 between realized and unrealized gains Changes in working capital items 141 178 and lo
Slide 26: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income ($MM) 1Q 2019 1Q 2018 (a)The Partnership makes a distinction between realized and unrealized gains L&S segment adjusted EBITDA attributable to MPLX LP 559 437 and losses on derivatives. During the period when a derivative contract is outstandin
Slide 27: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income Drop Impact 1Q 2019 (a)The drop is the 1Q 2018 drop which ($MM) without Drop(a) 1Q 2019 included the Refinery Logistics Assets Drop and Fuels Distribution services. (b)The Partnership makes a distinction L&S segment adjusted EBITDA attributable
Slide 28: Reconciliation of LTM Net Income (Loss) to LTM Pro Forma adjusted EBITDA
Reconciliation of LTM Net Income (Loss) to LTM Pro Forma adjusted EBITDA ($MM) 1Q 2019 1Q 2018 LTM Net income 1,920 1,072 LTM Net income to adjusted EBITDA adjustments 1,725 1,269 LTM Adjusted EBITDA attributable to MPLX LP 3,645 2,341 LTM Pro forma adjustments for acquisitions 4 888 LTM Pro forma a