Mplx Lp · NYSE:MPLX
Mplx Lp — Investor Presentation (August 2019)
19 slides from Mplx Lp's investor presentation, August 2019
Slide 1: August Investor Presentation
August Investor Presentation August 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). These forward-looking statements relate to, among other things, MPLX’s acquisition of Andeavor Logistics LP and include expectations, estimates and
Slide 3: MPLX's Business Mix
MPLX’s Business Mix ⚫ Successfully combined MPLX and Andeavor Logistics creating leading, large-scale diversified midstream company anchored by fee-based cash flows Logistics & Storage: ~60% of 2019E EBITDA(a) ⚫ High-grading growth capital expenditures with focus on L&S – Strategy of creating integr
Slide 4: MPLX – Key Investment Highlights
MPLX – Key Investment Highlights Diversified large-cap MLP positioned to deliver attractive returns over the long term Logistics & • Expanding third-party business and delivering industry solutions Storage • Supports extensive operations of largest U.S. refiner Gathering & • Largest processor and fr
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity 1.60 ⚫ Attractive returns for unitholders 3,700 3,600 3,500 $3,475 3,400 – 10% distribution growth in 2018 3,300 3,200 3,100 – Expect $0.01 per unit increase each quarter in 2019 1.50 3,000 2,900 2,800 ⚫ Gathering & Processing provides attractive growth opportunitie
Slide 6: 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 7: Three Strategic Initiatives
Three Strategic Initiatives 1. Streamline capex focusing on most attractive returns 2. Work with MPC on portfolio optimization, which could include asset divestitures 3. Proceeds from divestitures would be used for general purposes, such as investments in high-return projects as well as debt reducti
Slide 8: Capturing The Full Midstream Value Chain
Capturing The Full Midstream Value Chain Feedstock Acquisition Inbound Logistics Refining & Processing Outbound Logistics Marketing & Retail ▪ Diversification enhances opportunities for revenue capture ▪ Integration enables capture of stable fee-based revenue across the value chain ▪ Developing asse
Slide 9: Capturing Strategic Opportunities
Capturing Strategic Opportunities Creating an integrated Permian footprint to the Gulf Coast Gas Processing NGLs NGLs Fractionation 3 Long-Haul Gathering 1 Gas Pipelines Gas Export 4 1 Oil Storage Oil 2 Oil MPC Galveston Bay Refinery ⚫ Key L&S projects: Delaware & Midland Basins TEXAS – Signed defin
Slide 10: 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 (a) Legend Crude pipeline To Texas City area Hidalgo Natural gas pipeline NGL pipeline To Houston To Agua Dulce
Slide 11: Permian Crude Pipelines
2 Permian Crude Pipelines Investments in long-haul pipelines generate stable, fee-based midstream income and also help lower feedstock costs tor MPC refineries ⚫ Gray Oak Pipeline – MPC, Diamondback Energy, PSXP – ~850 mile, 30-inch diameter TEXAS – Anticipate in-service 4Q19 Wink Orla Crane ⚫ Wink-
Slide 12: 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 Stonepeak/WTG – 42” pipeline with ~2.0 Bcf/d capacity – Anticipate in-service 3Q21 TEXAS ⚫ BANGL Pipeline (Belvieu Alternative NGL) Orla Waha – JV with White Water Midstrea
Slide 13: 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 14: Mt. Airy Export Terminal
4 Mt. Airy Export Terminal ⚫ Strategically located on Mississippi River in close proximity to several refineries, including MPC’s Garyville refinery ⚫ 4 MMBBL of third-party leased storage capacity, capability to expand storage capacity to 10 MMBBL ⚫ 120,000 bpd export dock, permitted for constructi
Slide 15: Capline Reversal and LOOP
Capline Reversal and LOOP Capline – 40” crude oil pipeline from Patoka, IL, to St. James, LA – Reversed service planned for September 2020 LOOP – Only Gulf Coast port capable of loading 2 MMBBL vessels (VLCC’s) without reverse lightering – Demonstrated ability to load three VLCCs in a seven-day peri
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Slide 17: Appendix
Appendix 17
Slide 18: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) YTD 2018 YTD 2017 YTD 2016 Net income 1,834 836 434 Provision (benefit) for income taxes 8 1 (12) Amortization of deferred financing costs 59 53 46 Loss on extinguishment of debt 46 - - Net interest and other financial co
Slide 19: 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) 12/31/2018 12/31/2017 12/31/2016 Net cash provided by operating activities 2,826 1,907 1,491 Changes in working capital items 41 (147) (76) All other, net (45) (28) (16) Non-cash equity-base