Mplx Lp · NYSE:MPLX
Mplx Lp — J.P. Morgan West Coast Energy Infrastructure/MLP 1x1 Forum (March 2018)
31 slides from Mplx Lp's conference presentation, Mar 28, 2018
Slide 1: J.P. Morgan West Coast Energy Infrastructure/MLP 1x1 Forum
J.P. Morgan West Coast Energy Infrastructure/MLP 1x1 Forum Pam Beall, Executive Vice President and CFO March 28, 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: Delivering Consistent Growth in EBITDA and DCF
Delivering Consistent Growth in EBITDA and DCF 625 1.50 $569 1.40 $538 500 $474 Coverage Ratio x 375 $423 1.30 $391 $375 $351 $302 250 1.20 $442 $445 $387 $354 $301 $318 $285 125 $236 1.10 0 1.00 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Annual Coverage Ratio Distributable Cash Flow (DCF) ($MM) Adjust
Slide 5: Strategic Plan to Enhance Unitholder Value
Strategic Plan to Enhance Unitholder Value Completed on February 1, 2018 Exchanged for MLP-qualifying EBITDA BENEFITS EBITDA from dropdowns and IDR exchange add substantial stable cash flow and transform MPLX into large-cap diversified MLP, with a greater share of earnings from the logistics & sto
Slide 6: 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 7: Fuels Distribution Overview
Fuels Distribution Overview Extensive Range of Scheduling and Marketing Services that Support MPC’s Refining and Marketing Operations Services Description Scheduling Supply and demand balancing Annual EBITDA ~$600 MM Third-party exchange, terminaling and storage Bulk purchases and sale of prod
Slide 8: Priorities for 2018
Priorities for 2018 Deliver attractive returns for unitholders 2018 Organic Growth Capital Plan of ~$2.2 B – Forecast ~10% year-over-year distribution growth – Expand portfolio of organic growth projects ~5% Utica Financing strategy – Maintain investment grade credit profile ~20% Southwest – Sus
Slide 9: Natural Gas Supply Growth Forecast
Natural Gas Supply Growth Forecast Marcellus/Utica Basin is the Leading Growth Play ~45% of total U.S. growth is expected to occur in Northeast Total U.S. natural gas supply is Marcellus/Utica forecast to grow by ~38 Bcf/d from 2017 to 2030 MPLX well-positioned as largest 16.9 processor in North
Slide 10: Organic Growth Capital Projects: Gathering and Processing
Organic Growth Capital Projects Gathering and Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Sherwood IX Processing Plant(b) Marcellus 200 MMcf/d In Service Marcellus/Utica Rich- and Ongoing Dry-Gas Gathering(a) Houston I P
Slide 11: Organic Growth Capital Projects: Logistics and Storage
Organic Growth Capital Projects Logistics and Storage Segment Est. Completion Projects Description Date Increasing pipeline capacity to 360 MBPD; provides crude sourcing Ozark Pipeline Expansion Mid-2018 optionality to Midwest refineries Wood River-to-Patoka Increasing pipeline capacity to 360 MBPD;
Slide 12: Strong Financial Flexibility to Manage and Grow Asset Base
Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining investment ($MM except ratio data) As of grade credit profile 12/31/17 ~$1.9 B of available liquidity at year end Cash and cash equivalents 5 Anticipate no issuance of public equity Total assets 19,500 to fund
Slide 13: 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 14: Logistics & Storage Segment Overview
Logistics & Storage Segment Overview High-quality, well-maintained assets that are integral to MPC – Owns, leases, operates, or has interest in ~4,500 miles of crude oil pipelines and ~5,500 miles of Headquarters product pipelines and supporting assets MPLX Pipelines: Owned & Operated – 62 light p
Slide 15: 2017 Logistics & Storage Revenue – Customer Mix
2017 Logistics & Storage Revenue(a) – Customer Mix MPC = 94% Fee-based assets with minimal commodity exposure(c) 8% Primary assets and services 6% $123 MM – Crude oil and refined product pipelines $96 MM • MPC represented over 84% of volume shipped • For FERC-regulated pipelines, we have histori
Slide 16: 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 17: Marcellus/Utica Capacity
Marcellus/Utica Capacity 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 2017 plant completions Bcf/d She
Slide 18: Marcellus/Utica Overview
Marcellus/Utica Overview 3.8 Bcf/d Gathering, 6.0 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 19: Northeast Operations Well-Positioned in Ethane Market
Northeast Operations Well-Positioned in Ethane Market Ethane demand growing as exports and steam cracker development continues Ohio Pennsylvania in Gulf Coast and Northeast Bluestone MPLX well-positioned to support producer customers’ rich-gas Shell Chemical Planned Steam development with extens
Slide 20: Major Residue Gas Takeaway Expansion Projects Originate at MPLX Facilities
Major Residue Gas Takeaway Expansion 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 capac
Slide 21: Marcellus & Utica Operations
Gathering & Processing Segment Marcellus & Utica Operations Processed Volumes(a) Achieved record 4Q 2017 volumes Available Average – Gathered volumes of ~2.7 Bcf/d Utilization Area Capacity Volume (%)(b) – Processed volumes of ~5.2 Bcf/d (MMcf/d) (MMcf/d) Marcellus 4,520 4,203 93% Achieved signi
Slide 22: Marcellus & Utica Fractionation
Gathering & Processing Segment Marcellus & Utica Fractionation Commenced operations of second Fractionated Volumes(a) de-ethanization plant at Majorsville Available Average Utilization Area Capacity Volume Achieved record 4Q 2017 (MBPD)(b) (MBPD) (%)(c) fractionated volumes of ~389 MBPD 4Q17 Tot
Slide 23: Considerable Scale in the Southwest
Considerable Scale in the Southwest 2.1 Bcf/d Gathering, 1.5 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 th
Slide 24: Expanding Southwest Position in High Performance Resource Plays
Expanding Southwest Position to Support Growing Production in High Performance Resource Plays Cana-Woodford Arkoma-Woodford Permian Hidalgo Complex 200 MMcf/d Permian Arapaho Complex Hickory Hills Basin Plant Blaine Kingfisher Dewey Rich-gasNewfield Argo Complex Delaware pipelineSTACK 200 MMcf/d – Q
Slide 25: Southwest Operations
Gathering & Processing Segment Southwest Operations Achieved record 4Q 2017 volumes Processed Volumes(a) – Gathered volumes of ~1.5 Bcf/d Available Average Utilization Area Capacity Volume – Processed volumes of ~1.4 Bcf/d (MMcf/d) (MMcf/d) (%)(b) Achieved 8% growth in full-year West Texas(c) 20
Slide 26: Gathering & Processing Contract Structure
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 – including Range
Slide 27: 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 28: Appendix
Appendix 28
Slide 29: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 4Q 2015(4) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Net income (loss) 42 (14) 72 194 182 187 191 217 241 (1)The Partnership makes a distinction between Depreciation and amortization 58 136 151 151 1
Slide 30: Reconciliation of Adjusted EBITDA and Distributable Cash from Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities (YTD) Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, ($MM) 2015 2016 2016 2016 2016 2017 2017 2017 2017 Net cash provided by operating activities 427 321 670 975 1,491 377
Slide 31: 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
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