Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Investor Presentation (July 2019)
18 slides from Marathon Petroleum's investor presentation, Jul 12, 2019
Slide 1: Los Angeles Refinery Tour Presentation
Los Angeles Refinery Tour Presentation July 12, 2019
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation (MPC). These forward-looking statements relate to, among other things, MPC’s acquisition of Andeavor, and MPC’s businesses and opera
Slide 3: MPC – A Leading Energy Company
MPC – A Leading Energy Company Refining Midstream Marketing & Retail Superior Operations Expanding Platform Across: Retail, Significant Growth Opportunities Wholesale, and Brand Strategic Investment to Capture Value Strategic Alignment with Refining Invest in Technology to Improve New Technology to
Slide 4: Built For Change: Our Strategic Vision
Built For Change: Our Strategic Vision Core Values and Integrated Strategic & Financial Operational Business Model Disciplined Strength Excellence Investments Core values underpin Enhances value Creates competitive Provides through-cycle our commitment to capture and ability to advantages protection
Slide 5: Responsible Corporate Leadership
Responsible Corporate Leadership MPC has earned 13 Environmental 19 MPC 21 72% of the EPA’s Energy Star achievement awards earned from state manages certified wildlife habitats consisting of 1,352 environmental agencies Facilities earned recognitions awarded to OSHA’s highest status acres refineries
Slide 6: Basic Refinery Operations
Basic Refinery Operations Intermediates Finished Products <90 oF Propane, Butane Light Ends Recovery & • Refinery Fuel Gas • Propane and lighter Treatment • NGLs 90-220 oF Light Virgin Naphtha Isomerization / • Gasoline (low octane) Blending Crude • Gasoline 220-315 oF Heavy Virgin Reformer / • Jet
Slide 7: Basic Refinery Operations
Basic Refinery Operations Process Purpose Units Use heat to vaporize and separate hydrocarbon compound via • Crude Separation fractionator • Vacuum • Fluid Catalytic Cracking Converts large hydrocarbon molecules (gas oil and resid) to Cracking • Coker smaller molecules (gasoline, jet, and diesel) •
Slide 8: Crude Oil Characteristics and Yields
Crude Oil Characteristics and Yields Types Light Sweet Medium Sour Heavy Sour (e.g. WTI, LLS, Brent) (e.g. Mars, WTS, Basrah) (e.g. Maya, Cold Lake, WCS) Refinery Production Characteristics Refinery Gases > 34 API Gravity 24 – 34 API Gravity < 24 API Gravity 4% < 0.5% Sulfur > 0.7% Sulfur > 0.7% Sul
Slide 9: MPC Refining Footprint and Regions
MPC Refining Footprint and Regions Refining Locations Refinery MBPD Anacortes, WA 119 West Coast Anacortes Mandan Kenai, AK 68 Los Angeles, CA 363 Dickinson St. Paul Park Martinez, CA 161 Detroit Total 711 Canton, OH 93 Salt Lake City Canton Robinson Catlettsburg, KY 277 Detroit, MI 140 Catlettsburg
Slide 10: West Coast Market Dynamics
West Coast Market Dynamics Kenai ▪ PADD V net importer of crude oil – Reduced production of California and ANS crude oil results in Anacortes increased foreign imports to meet refinery demand Mandan – Middle East sour and South America heavy crude oil represented 75% Portland Dickinson of PADD V imp
Slide 11: PADD V Supply & Demand Balance
PADD V Supply & Demand Balance 35 PADD V Gasoline Inventories 32 MMB 29 Net From PADD 4 60MBD 26 17 PADD V Distillate Inventories 27 Demand 2,525MBD 15 Net Exports 55MBD Production 2,365MBD 24 MMB Days 13 21 11 18 J F M A M J J A S O N D J F M A M J J A S O N D Net From PADD 3 145MBD 5-year Range (1
Slide 12: U.S. Inventories & Days of Supply
U.S. Inventories & Days of Supply U.S. Gasoline Inventories U.S. Distillate Inventories 275 175 250 150 MMB MMB 225 125 200 100 U.S. Gasoline Days of Supply U.S. Distillate Days of Supply 35 27 30 25 Days Days 23 25 21 20 J F M A M J J A S O N D J F M A M J J A S O N D 5-year Range (14-18) 5-year Av
Slide 13: Los Angeles Refinery
Los Angeles Refinery Refinery Overview Hynes Terminal Long Beach Terminal (B84A, B86) LAR Carson Terminal 2 (B76, B77, B78) LAR Wilmington Terminal 3 Carson Crude Terminal (CCT) Terminal 1 (B121) 13
Slide 14: Los Angeles Refinery
Los Angeles Refinery Refinery Overview ▪ Crude oil capacity: 363,000 barrels per calendar day ▪ Largest refinery on the West Coast ▪ Primary crude oils: ANS, San Joaquin Valley and LA Basin heavy, International ▪ Primary products produced: CARB gasoline and diesel, conventional gasoline, jet fuel, U
Slide 15: Wilmington Product Terminal Overview
Wilmington Product Terminal Overview ▪ Product distribution terminal adjacent to the Los Angeles Refinery ▪ 54,000 barrels per day throughput capacity ▪ Three truck lanes loading gasoline only onto trucks for distribution 15
Slide 16: Hynes Product Terminal Overview
Hynes Product Terminal Overview ▪ Product distribution and storage terminal in Los Angeles County, north of the Los Angeles refinery ▪ 55,000 barrels per day throughput capacity ▪ Nearly 2 million barrels of storage capacity for MPC and third-parties ▪ Six truck lanes loading gasoline and diesel ont
Slide 17: Marine Berth 121 (Terminal 1) Overview
Marine Berth 121 (Terminal 1) Overview ▪ Primary crude oil offloading marine terminal in Los Angeles area and main source of crude oil for MPC and third- party refineries in the area ▪ Only deep water dock on the West Coast capable of accepting VLCCs ▪ Only liquid bulk terminal capable of Cold Ironi
Slide 18: Marathon
MARATHON ®
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