Slide 1: Third-Quarter 2020 Earnings Conference Call
Third-Quarter 2020 Earnings Conference Call November 2, 2020
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 expectations, estimates and projections concerning the business and operatio
Slide 3: Stable Cash Flows
Stable Cash Flows ⚫ Stable, fee based cash flows with Historical Quarterly Adjusted EBITDA minimum volume commitments ($ Billions) 1.32 1.29 1.33 ⚫ On-track to reduce 2020 forecasted 1.23 operating expenses by $200 million 0.47 0.42 0.39 0.44 ⚫ Supports goal of achieving positive free cash flow for
Slide 4: Continued Capital Discipline
Continued Capital Discipline ⚫ On-track to achieve forecasted Growth Capital(b) 2020 reduction targets: – Reducing net maintenance capital $2.4 B $2.6 B spending by $100 million to approximately $150 million ~55% – Reducing growth capital(a) ~75% spending by over $600 million to ~$900 MM approximate
Slide 5: Focus on Sustainability and Corporate Leadership
Focus on Sustainability and Corporate Leadership Environment Social Governance Committed to Improving Energy Efficiency Diversity & Inclusion Transparency in reporting: TCFD, SASB, GRI, CDP Established new Human Received 2 ENERGY STAR® Rights Policy in 2020 Challenge for Industry Awards Sustainabili
Slide 6: Recently Published Sustainability & Climate Perspectives Reports
Recently Published Sustainability & Climate Perspectives Reports Recognitions Included in Dow Jones Sustainability Index for North America Lower Carbon Intensity EPA ENERGY STAR Partner of the Year – 3rd straight year with Sustained Excellence Award in 2020 Increase Renewable Fuels Production and En
Slide 7: Third-Quarter Highlights
Third-Quarter Highlights $ Millions (unless otherwise noted) 3Q20 Adjusted EBITDA $1,335 Distributable Cash Flow $1,067 Distribution coverage ratio(a) 1.44x Leverage(b) 4.0x ⚫ Refinanced $3 billion of debt at attractive rates ⚫ Generated positive free cash flow after capital investments and distribu
Slide 8: Logistics & Storage Segment
Logistics & Storage Segment ⚫ Pipeline throughputs averaged 4.7 MMBPD – Decrease of ~10% year-over-year ⚫ Terminalling throughputs averaged 2.7 MMBPD – Decrease of ~18% year-over-year ⚫ Lower volumes offset by reduced operating expenses ⚫ Progressing Permian long-haul pipelines: MEXIC O – Wink to We
Slide 9: Gathering & Processing Segment
Gathering & Processing Segment 3Q20 Processed Volumes(a) Capacity at Utilization of ⚫ 3Q20 Overall volumes and % change: End of Average Available Area Volume vs. 3Q19 Quarter (MMcf/d) Capacity (MMcf/d) (%)(b) Gathering: 5.4 Bcf/d (14)% Marcellus 6,172 5,706 92% Processing: 8.5 Bcf/d (3)% Utica 1,325
Slide 10: 3Q 2020 Financial Highlights
3Q 2020 Financial Highlights Adjusted EBITDA(a) Distributable Cash Flow(a) 4,500 2019 2020 3,500 2019 2020 3,055 3,172 4,000 3,785 3,856 3,000 3,500 2,500 3,000 2,000 $MM 2,500 $MM 2,000 1,500 1,500 1,273 1,335 1,027 1,067 1,000 1,000 500 500 0 0 3Q Year-to-Date 3Q Year-to-Date Three Months Ended Ni
Slide 11: 3Q 2020 vs. 3Q 2019 Adjusted EBITDA
3Q 2020 vs. 3Q 2019 Adjusted EBITDA 1,400 1,273 44 18 1,335 1,200 G&P G&P 1,000 424 442 800 $MM 600 L&S L&S 2Q 2018 849 893 400 vs. 2Q 200 2017 0 Variance Analysis 3Q 2019 Adjusted EBITDA Attributable to MPLX (a) Logistics & Storage Gathering & Processing 3Q 2020 Adjusted EBITDA Attributable to MPLX
Slide 12: Financial and Balance Sheet Highlights
Financial and Balance Sheet Highlights As of ($MM except ratio data) 9/30/20 Cash and cash equivalents 28 Total assets 36,662 Total debt(a) 20,349 Redeemable preferred units 968 Total equity 13,095 Third Quarter 2020 distribution coverage(b) 1.44x Leverage(c) 4.0x Remaining capacity available under
Slide 13: Appendix
MPL Appendix 13
Slide 14: Gathering & Processing Segment
Gathering & Processing Segment Sub-Region 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 (
Slide 15: Organic Growth Capital Projects
Organic Growth Capital Projects Logistics & Storage Segment Est. Projects Description Completion Date Mt. Airy Terminal Expansion Constructing 2nd 120 MBPD dock and incremental storage In Service Utica Butane Expansion Expansion for transportation of butanes from Utica to Robinson and Lima In Servic
Slide 16: Organic Growth Capital Projects
Organic Growth Capital Projects Gathering & Processing Segment Est. Processing and Fractionation Shale Resource Capacity Completion Date Hopedale 5 C3+ Fractionation Marcellus & Utica 80,000 BPD In Service Smithburg 1 Processing Plant(a) Marcellus 200 MMcf/d 2021 Preakness Processing Plant Delaware
Slide 17: Strong Balance Sheet
Strong Balance Sheet Consolidated Debt to Adj. EBITDA(a) 6.0x $ Millions YE18 YE19 3Q20 (unless otherwise noted) 4.5x 3.0x Consolidated Debt 13,856 20,713 20,757 1.5x LTM Pro forma Adj. EBITDA 3,567 5,104 5,175 0.0x 2015 2016 2017 2018 2019 Consolidated debt to adjusted 3.9x 4.1x 4.0x Debt Maturitie
Slide 18: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income 3Q QTD 3Q QTD 3Q YTD 3Q YTD 4Q YTD ($MM) 2020 2019 2020 2019 2019 Net income (loss) 674 689 (1,387) 2,035 1,462 Provision (benefit) for income taxes 1 4 1 2 - Amortization of deferred financing costs 15 10 44 29 42 Gain on exti
Slide 19: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 3Q QTD 2020 3Q QTD 2019 3Q YTD 2020 3Q YTD 2019 4Q YTD 2019 Net cash provided by operating activities 1,222 1,036 3,336 2,990 4,082 Changes in working capital items (166) 22 (154) 134 108 Al
Slide 20: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income 3Q QTD 2Q QTD 1Q QTD 4Q QTD 3Q QTD 3Q YTD 3Q YTD ($MM) 2020 2020 2020 2019 2019 2020 2019 L&S segment adjusted EBITDA attributable to MPLX LP 893 839 872 853 849 2,604 2,498 (including predecessor results) G&P segment adjusted EBITDA attributab
Slide 21: Reconciliation of Capital Expenditures
Reconciliation of Capital Expenditures 3Q QTD 3Q QTD 3Q YTD 3Q YTD 4Q YTD 4Q YTD ($MM) 2020 2019 2020 2019 2019 2018 Capital Expenditures Maintenance 41 75 108 174 262 175 Maintenance reimbursements (11) (18) (31) (34) (53) (8) Growth 208 518 677 1,479 2,001 2,078 Growth reimbursements (2) (5) (2) (
Slide 22: 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) 3Q 2020 4Q 2019 3Q 2019 4Q 2018 LTM Net (loss) income (1,960) 1,462 2,126 1,834 LTM Net income to adjusted EBITDA adjustments 7,135 2,872 1,908 1,641 LTM Adjusted EBITDA attributable to MPLX LP 5,175 4,334 4,034 3,475 LTM
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