Marathon Petroleum Corporation · NYSE:MPC
Marathon Petroleum — Goldman Sachs Energy Conference 2012
86 slides from Marathon Petroleum's conference presentation, Jan 11, 2012
Slide 1: Goldman Sachs Energy Conference
Goldman Sachs Energy Conference January 11, 2012 Marathon (IN\\ Petroleum Corporation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, Marathon Petroleum Corporation’s (MPC) current expectations, estimates and proj
Slide 3: Focused and Integrated Operations
Focused and Integrated Operations B Flexibility and integration advantage: = Integrated six-refinery system B One of the largest domestic... = Petroleum pipeline networks based on volume moved = Terminal operators = Asphalt producers = Private inland bulk liquid barge fleets GE Marketing Area Refine
Slide 4: MPC Key Highlights
MPC Key Highlights @ Strong credit profile and liquidity B@ Fully integrated downstream system ® Strong competitive positioning versus peer group @ Impressive safety and environmental record ® Strategically located in Midwest/PADD II and USGC/PADD III regions @ Extensive midstream network and retail
Slide 5: MPC Strong Credit Profile and Liquidity
MPC Strong Credit Profile and Liquidity Historical Financial Summary Financial Policies Year Ended 3 Mo. Ended Sept. 30 ® Committed to InvestmentGrade profile 2 ou? Rating Agency S&P Moody's Income from Operations 1,011 654 1,855 3,903 660 = Maintainstrong access to liquidity, with Net Income 623 44
Slide 6: Fully Integrated Downstream System
Fully Integrated Downstream System Refining and Marketing ® Six-plant refining network with 1,193,000 barrels per day of crude oil refining capacity @ One of the largest wholesale suppliers of gasoline and distillate within our market areas @ One of the largest producers of asphalt in the U.S. @ = ~
Slide 7: 2010 Refinery Throughput and Sales
2010 Refinery Throughput and Sales Crude Saleable Throughput Product Sales 1,173 MBD 1,589 MBD 24.3 B GAL/YR larathon Brar 17% [ Speedway ——_— 13% as wat, —— +233 MBD purchased for resale 1,356 MBD * * Refinery yields Note: All the above include the results of the Minnesota assets which were sold ef
Slide 8: Relative Refining Position
Relative Refining Position (MBD) U.S. Crude Refining Capacity (#) # of U.S. Refineries \") 3,000 2,000 1,000 t) 22S ES es ey Pe ERE kad es 3 $ a see G § e¢ fF $ = u 2 6 e & Ff roa § > 4 & £ 3 s) (MBD) Average Crude Capacity of (NCI) Nelson Complexity Index “!) 300.4 279 U.S. Refineries 15.0 253 252
Slide 9: Impressive Safety and Environmental Record
Impressive Safety and Environmental Record Safety OSHA Recordable Incident Rate Days Away Rate 2.00 (Employee and Contractor History) 1.00 (Employee and Contractor History) 1.37 0.97 0,90 1.00 - 0.73 0.80 0.50 | i Z i 0.51 0.12 0.09 0.09 913 0.10 0,08 912 9 93 0.00 |=. ig 0.00 ee ee ee er 2003 2004
Slide 10: Garyville Major Expansion (GME) Project
Garyville Major Expansion (GME) Project Garyville, LA refinery is last grassroots refinery built in the U.S. (1976) Base Garyville refinery, 2008 Solomon survey = Best U.S. cash cost operating expense = Second-best U.S. Energy Intensity Index $3.9 billion, excluding capitalized interest, GME Project
Slide 11: Garyville: World-class Refinery — Worldwide Logistics
Garyville: World-class Refinery — Worldwide omens Blue Water Logistics ™ New dock increased capacity by 40% Supply Florida while increasing ® = Inaddition to products, suppo opportunity crudes, feedstock: blendstocks Brown Water Logistics @ = Import heavy Canadian crudes & Allows movement of interme
Slide 12: Attractive Midwest/PADD II
Attractive Midwest/PADD II ™ Demand exceeds refining capacity in PADD II » PADD IV-+j = Import ~18% of demand into PADD II J _PAbD It Enhances margin opportunities f Transportation premium embedded in PADD II product prices Higher refinery utilization rates Relatively leaner product stocks Percentag
Slide 13: CAPP Western Canada Crude Supply Forecast
MBD ») CAPP Western Canada Crude Supply Forecast Annual Growth from 2010 - 2025 MBD Light Supply 16 6,000 Heavy Supply 154 Actual Forecast eaVvV Conventional Light 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 *Oil Sands Heavy includes some volumes of upgraded heavy sour crude oil and bitum
Slide 14: MPC Well Positioned to Capture Oil Sands Economics
MPC Well Positioned to Capture Oil Sands Economics Advantaged Location Should Lead to Higher Relative Profitability jardisty Hardisty to Detroit ~$7.35/BBL Hardisty to USGC | ~$§5.50/BBL Detroit Value vs. USGC Refineries for Canadian Heavy Processing SBBL Laid-In Crude Cost 1.85 ~$1.70/BBL Y Houston
Slide 15: Detroit Heavy Oil Upgrade Project
Detroit Heavy Oil Upgrade Project “Excludes capitalized interest Scope — Increases heavy oil capacity an additional 80,000 BCD; including “difficult to process” Canadian crudes = 28,000 BCD delayed Coker = 36,000 BCD Distillate Hydrotreater (DHT) = Crude capacity increases ~15,000 BCD Strategic Focu
Slide 16: Detroit Logistics Options
Options... Detroit Logistics @ Enbridge @ 2 Enbridge ® Canadian crude via multiple routes Stockbridge @ Virtually all world crudes available via pipelines from USGC Samaria Lima B All gasoline production sold in local market @ Platte/Keystone » Keystone Wood River Platte Mid Valley Strategically Loc
Slide 17: Strategy — Maximize Price-Advantaged Crude Oil
Strategy — Maximize “Price-Advantaged” Crude Oil a io Eagle Ford —— Shale Garyville Opportunity Crude Oils
Slide 18: Lower 48 States Shale Plays
Lower 48 States Shale Plays Shale plays Current plays Prospective plays chek cay suas park alt Shallowest/ youngest wntvvc chs — Intermediate depthy age ~~ Deepest/ oldest ‘Source: Energy Information Administration based on data from various published studies. Updated: May 9, 2011
Slide 19: Utica Shale Opportunity in Ohio
® Ohio Department of Natural Resources estimates 1.3 to 5.5 billion barrels of recoverable oil ® Canton and Catlettsburg refineries are both ideally located ™ MPChas other infrastructure JP — i in this area 1 | Bbo é @ First-mover advantage = SN Catlettsburg Refinery Source: Ohio Department of Natur
Slide 20: Midstream Integration and Flexibility
Midstream Intearation and Flexibility Niastream integration and FIexIpility ®@ Pipeline and barge logistics = Focused on optimal refinery crude supply and product placement ® Destination choice in product markets ® Efficiency, flexibility, speed ® Terminal network ® Critical mass in key markets = Ke
Slide 21: MPC's Logistical Assets vs. Peers
MPC's Logistical Assets vs. Peers Seem = =MPC's Midwest Refined Products Logistics System Valero Sun veers a aan i) = — es Logistics!" forse q eas act HURON | Other Pipatines 1,409 Pipeline Volume 2,239 (Bp) * Pipeline Miles * 3,749 676 868 5,336 Terminals 83 NLR. 18 42 Transports 120 NLR. Operate N
Slide 22: Extensive Retail Network
Extensive Retail Network @ Speedway = Fourth largest U.S.-owned/ operated c-store chain Speedway Jer = ~1,375 stores Brand eit = ~2 million customers/day = Located in seven states (BA) ® Marathon brand = Independent entrepreneurs =» ~5,100 branded locations Asof 9/30/11 = Located in 18 states
Slide 23: Benefits of Retail Integration
Benefits of Retail Integration @ Ratable sales B® Optimized operations = Refining = Pipeline = Terminal ® Biofuels blending base load ® Supply dislocation flexibility ® Reduced credit risk (Speedway) Refineries Connecting Pipelines (i) Terminals Ful ly Inte gra ted Downstream Business Inland water C
Slide 24: Speedway vs. Public Peers - 2010 Light Product Sales
Speedway vs. Public Peers - 2010 350 Light Product Sales Independent Refiners < 300 Average 156.6 ] = 250 > o 179.7 8 an Public C-Store 2 150 Average 99.6 © © 100 = . 0 Casey's Couche-Tard Pantry Susser Speedway* Valero Murphy Sunoco Tesoro Delek Western Refining 40 Light Product Margin Independent
Slide 25: Speedway vs. Public Peers - 2010 Merchandise Sales
Speedway vs. Public Peers - 2010 200 ea Sales Independent Refiners = Public C-Store Average 97.2 | 3° Ss aoe Average 107.9 => 2 2 100 ~ = he i 0 Casey's Couche-Tard Pantry Susser Speedway* Valero Murphy Sunoco Tesoro Delek Western Refining 50 Public C-Store Merchandise Margin Average 37.1 42.4 € 40
Slide 26: Speedway Sales and Margin
Speedway Sales and Margin 4- Light Product Volume 600 Light Product Gross Margin 3.23 3.30 fd F a8 398 5 5 400 333 = 2 = 280 oO = me 200 1 (4.7) 13.50 10.30 12.07 ie} 0 : 2008 2009 2010 2011* 2008 2009 2010 2011* (Same Store % inside bars) (Cents per gallon inside bars) Ane Merchandise Sales 1,000 M
Slide 27: Speedy Rewards Loyalty Program Increasing Membership
Speedy Rewards Loyalty Program 4 Increasing Membership Ww Active Members (MM) N 2005 2006 2007 2008 2009 2010 2011* Industry-leading loyalty program Customers earn points on every purchase Customers redeem points for free merchandise and fuel discounts 3.7 MM active Speedy Rewards members Heavy vend
Slide 28: Speedway Brand Value
Speedway Brand Value $5.6 Record contributions to » $4.0 aa . , ’ c ; nm Children’s Miracle FS) S 3.0 Children’s Network S $2.0 i Miracle Network Hospitals bed 2007 2008 2009 2010 Top Retail Gasoline Brand in the U.S. for past 3 consecutive years. EquiTrend, Harris Interactive Voted #1 in Customer S
Slide 29: Diversified Income Stream
Diversified Income Stream 2009 Segment Income 2010 Segment Income from Operations from Operations Pipeline Transportation Pipeline Transportation $172MM Refining & $183 MM 21% Marketing 14% $452MM 54% Refining & Marketing Speedwa 5 e3 sco $800 MM 23% 63% Speedway $212 MM 25% 2011* Segment Income fro
Slide 30: Pre-Tax Adjusted Domestic Operating Income per Barrel
Pre-Tax Adjusted Domestic Operating Income per Barrel of Crude Oil Throughput 15 a a co ~~ vr 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sept. 10 MPC’s Rank 3 3 2 1 2 3 7 2 1 5 3 1 3 1 Companies Ranked* 12 11 i 9 10 10 9 & 8 9 9 8 & 8 “Current companies ranked: BP, COP, CV
Slide 31: Experienced Board of Directors
Experienced Board of Directors Name Title Evan Bayh Former Senator from and Governor of Indiana David A. Daberko* Former Chairman and CEO — National City Corporation William L. Davis* Former Chairman and CEO — RR Donnelly & Co Gary R. Heminger President and CEO — MPC Donna A. James Corporate Directo
Slide 32: Experienced Management Team
Experienced Management Team Experienced Team with Extensive Industry Experience Years of Service | Title Gary R. Heminger 36 President and Chief Executive Officer Pamela K. M. Beall 16 Vice President — Investor Relations and Gov. & Public Affairs Richard D. Bedell 32 Senior Vice President — Refining
Slide 33: Strategic Performance - 2011
Strategic Performance - 2011 Y Completed successful spin-off from Marathon Oil Corporation Y Completed financing at separation Y Established strong balance sheet Vv Increased quarterly dividend Vv Produced strong operating income per barrel of crude throughput Vv Generated significant free cash flow
Slide 34: Strategic Direction - 2012
Strategic Direction - 2012 C) Complete Detroit Heavy Oil Upgrade Project QO) Optimize Garyville () Pursue Price Advantaged Crude Projects Q) Initiate Organic Value-Adding Projects UC) Grow Speedway and Brand Sales Volume O) Consider Selective Acquisitions to Leverage Existing Portfolio O) Return Cap
Slide 35: Corporate Priorities
Corporate Priorities @ Achieve excellence in safety, Bal environmental performance alance and operations @ Maintain investment grade a credit profile Customers @ Increase earnings and cash flow Discipline and Flexibility Shareholders = Organic investments = Selective value accretive acquisitions ® O
Slide 36: Appendix
Appendix
Slide 37: 3Q 2011 Earnings
3Q 2011 Earnings $856 MM rx 32010 y/ ‘3a 2011 Net Income $277MM_ $1,133 MM Net Income per Diluted Share $0.77 $3.16 Adjusted Net Income Adjusted Net Income per Diluted Share $3,000 @4Q #832 $8 m4Q #3Q a $2,000 =™2Q 1Q $6 =2Q #1Q é 4 B ss00 |e x? = DL] wa $2 GS $o a 7. Se) -$1,000 8 2010 2011 2010 20
Slide 38: Net Income
Net Income 3Q 2011 vs. 3Q 2010 Variance Analysis $2,000 1,359 (20) 17 (51) (449) Qa ——— as: $1,500 ‘ 1,133 5 2 $1,000 = $500 277 | Pal so -— = ; . . 3Q2010 Refiningand Speedway Pipeline Other Income Taxes 3Q2011 Marketing Transportation (Pre-tax)
Slide 39: Refining and Marketing Segment Income
Refining and Marketing Segment Income 3Q 2011 vs. 3Q 2010 Variance Analysis $1,800 | 1,376 (17) 1,711 Millions 3Q2010 R&M Gross Margin Other 3Q2011
Slide 40: Refining & Marketing Segment Income & Market Indicators
Refining & Marketing Segment Income & Market Indicators $2,000 am Segment Income ——Total Throughputs ——R&M Refined Products Sold 2,000 a % $1,600 z S $1,200 1,500 z a gs tte 1,000 5? £5 $400 - Lé : $0 500 8 3 $400 % -$800 ) g 1Q2010 2Q2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q2011 Selected Market and M
Slide 41: Speedway Segment Income
Speedway Segment Income 3Q 2011 vs. 3Q 2010 Variance Analysis $120 — 105* (17) $100 — (3) S80 — Millions Beas fep} =] 3Q 2010 Minnesota Asset Sale Other 3Q2011 * Includes 166 convenience stores and 67 franchise stores sold as part of the Minnesota refinery and related assets in December 2010. (A)
Slide 42: Pipeline Transportation Segment Income
Pipeline Transportation Segment Income 3Q 2011 vs. 3Q 2010 Variance Analysis $80 28 (7) 4 S60 ~ i Be ae 56 ra 2 $40 39 = $20 - 0) 3Q2010 Maintenance & Equity Affiliates Other 3Q 2011 Impairment Expense
Slide 43: Total Company Cash Flow
Total Company Cash Flow 3Q 2011 $4,000 | 238 (317) 1481 7) 5 = $2,000 Ss 1,622 $1,000 — so 06/30/11 Operating Working Cash Capital Cash Cash Flow Capital Expenditures Balance before and Working Investments Capital (71) 4 2,957 Dividends Paid Other 09/30/11 Cash Balance
Slide 44: Select Balance Sheet/Cash Flow Data
Select Balance Sheet/Cash Flow Data ($ Millions unless otherwise noted) 2011 2011 20Q 3Q As of quarter ended: Cash and cash equivalents 1,622 2,957 Total debt* 3,274 3,299 Cash-adjusted total debt 1,652 342 Stockholders’ equity 8,977 10,049 Cash-adjusted debt to capital ratio 16% 3% Year to date: Ne
Slide 45: EBITDA Reconciliation to Net Income
EBITDA Reconciliation to Net Income Year-Ended 9 Mo. Ended Sept. 30 2011 2010 Net Income 2,694 623 449 1,215 2,464 393 ae hated Party net interest and other financial 48 24 45 26 35 n Less: Net interest and other financial income (costs) (42) (12) (14) 4 (39) (9) Add: Provision for income taxes 1,56
Slide 46: Segment EBITDA Reconciliation to Net Income
Segment EBITDA Reconciliation to Net Income Year-Ended 9 Mo. Ended Sept. 30 Refining and Marketing segment EBITDA 1,539 950 1,819 4,307 1,058 Speedway segment EBITDA 404 343 408 280 311 Pipeline Transportation segment EBITDA 245 213 221 195 181 Total Segment EBITDA 2,188 1,506 2,448 4,782 1,550 Less
Slide 47: Reconciliation
Reconciliation Net Income to Adjusted Net Income ($ Millions) Net Income (289) 405 277 230 529 802 1,133 Impairments : - 7 — / Pension settlement — 3 Income taniaw changes 26 ; : 17 Adjusted Net Income (263) 422 277 233 529 819 = 1,133
Slide 48: Financial Overview: Segment EBITDA
Financial Overview: Segment EBITDA YTD 2011 Refining and Marketing 4,307 1,539 950 1,819 Speedway 280 404 343 408 Pipeline Transportation 195 245 213 221 Total Segment EBITDA 4,782 2,188 1,506 2,448 Items not allocated to segments (218) (236) (182) 13 Total EBITDA 4,564 1,952 1,324 2,461 Note: YTD 2
Slide 49: Financial Overview: Capital Expenditures & Investments
Financial Overview: Capital Expenditures” & Investments YTD 2011 Refining and Marketing 600 961 2,241 2,665 Speedway* 121 84 49 61 Pipeline Transportation 69 24 55 167 Corporate** 104 104 240 124 Total 894 1,173 2,585 3,017 (4) includes changes in accructs. “Includes $74 million acquisition of 23 co
Slide 50: Annual Price and Margin Sensitivities
Annual Price and Margin Sensitivities $ Millions (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity ~$300 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$150 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$65 (per $1.00/barrel change) Refined Product Wholesale Margin Sensi
Slide 51: MPC Financing Structure
MPC Financing Structure @ Issued $3 billion in new long-term debt — $750 million 5-year notes, 3.5% — $1 billion 10-year notes, 5.125 % — $1.25 billion 30-year notes, 6.5% B® $2 billion new 4-year revolving credit facility B® ~S1 billion 3-year trade receivables securitization facility @ $2,957 bill
Slide 52: Capital Expenditures and Investment
Capital Expenditures and Investment* 2012 Preliminary View 3,500 3,000 2,500 2,000 - 1,500 + 1,000 — 500 5 0 + 2008 2009 2010 2011E 2012E $ Millions @ Refining and Marketing Pipeline Transportation mSpeedway m Other “Excludes capitalized interest Disciplined Capital Investment
Slide 53: 2012 Capital Spending Allocation
2012 Capital Spending Allocation* Environmental Regulatory Programs 3% Safety and Security me 2% 9% Te Operating/Process Improvements 11% Expansion/Growth/ Major Projects 49% Capital Replacements 14% Other Refining and Transportation Corporate **_— 6% 9, *Excludes capitalized interest 6% **Primarily
Slide 54: Equity Repurchase and Issuance Considerations
Equity Repurchase and Issuance Considerations @ Preservation of tax-free status of spin-off is a high priority for MPC B® Various tax considerations around distributions and acquisitions of MPC stock for two years following the separation @ May elect to seek either an unqualified tax counsel opinion
Slide 55: U.S. Distillate Exports Continue to Grow
U.S. Distillate Exports Continue to Grow ®@ US. distillate exports continue U.S. Distillate Espa: Growth 2003-2010 to reach record levels, 700 — exceeding 900 MBD in early Be ee October 2011. oe incase = © Netherlands ®@ Gasoline exports have also oo ae strengthened, exceeding imports recently. is .
Slide 56: U.S. Oil Net Product Exports
U.S. Oil Net Product Exports* 2,000 1,500 1,000 (500) Nn (1,000) (1,500) MBD %y To ye % % Yin, % %, Yq, % %, % bg Ma, Me hy, ty ig Me ye ey 0 % 0 % % % % % *Excludes crude oil and unfinished oils Source: U.S. Energy Information Agency ~2.5 MMBD Change in Demand for U.S. Refinery Production
Slide 57: Market View
Market View Key Market Drivers MPC Outlook Economy Demand Growth eS » =>» Global Refining Capacity Alternative Fuels, CAFE standards | Regulatory Environment i 3 (BA) Slow but double-dip recession unlikely Distillate demand continues to lead Peak oil - not on the horizon Modernization and rationaliz
Slide 58: Price Advantaged Crudes Continue to Increase
Price Advantaged Crudes Continue to Increase 100% MPC Crude Slate ‘0 90% 80% @ Other Sweet 70% ® Other Sour 60% aii @ Canadian Heavy 40% @ WTI Based 30% ee 38% 10% 28% 30% 33% 35% ‘0 0% ; 3Q10 4Q10 1Q11.— 2Q11 QL
Slide 59: Refining: Garyville Refinery Unit and Production Capacity
rf Refining: Refinery Unit and Production Capacity 7 Garyville, Lovisiana Crude 490,000 Vacuum Distillation 254,000 2 > Coking 82,700 : Catalytic Cracking 134,000 Catalytic Reforming 114,500 Catalytic Hydrocracking 88,400 Catalytic Hydrotreating 496,000 Alkylation 27,600 Polymerization / Dimerizatio
Slide 60: Refining: Catlettsburg Refinery Unit and Production Capacity
Carlerspurg, Kentucky Crude 233,000 Vacuum Distillation 113,000 Coking = Catalytic Cracking 98,800 Catalytic Reforming 49,900 Catalytic Hydrocracking = Catalytic Hydrotreating 258,000 Alkylation 20,000 Polymerization / Dimerization - Aromatics 5,500 Isomerization 14,300 Cumene 7,100 Coke (Short Tons
Slide 61: Refining: Robinson Refinery Unit and Production Capacity
Crude Vacuum Distillation Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation Polymerization / Dimerization 206,000 68,000 27,600 51,800 76,000 27,100 177,700 11,900 Aromatics _— Isomerization 14,700 Cumene — Coke (Short Tons per Day) (2) 1,427 Su
Slide 62: Refining: Detroit Refinery Unit and Production Capacity
oS ee. ek ame ff (ec | een [hr , SS eRe een Ree Emm Tag Refining: Refinery Unit and Production Capacity es Detroit, Michigan Crude 106,000 Vacuum Distillation 52,300 Coking _ Catalytic Cracking 30,900 Catalytic Reforming 20,400 Catalytic Hydrocracking — Catalytic Hydrotreating 100,400 Alkylation 4,8
Slide 63: Refining: Canton Refinery Unit and Production Capacity
Crude Vacuum Distillation Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation Polymerization / Dimerization Aromatics Isomerization Cumene Coke (Short Tons per Day) (?) Sulfur (Long Tons per Day) (3) Asphalt PADD (1) As of January 1, 2012 (2) Shor
Slide 64: Refining: Texas City Refinery Unit and Production Capacity
Crude Vacuum Distillation Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation Polymerization / Dimerization Aromatics Isomerization Cumene Coke (Short Tons per Day) '2) Sulfur (Long Tons per Day) (3) Asphalt PADD (1) As of January 1, 2012 (2) Shor
Slide 65: Garyville Diesel Projects
Garyville Diesel Projects @ Scope-— Modify Crude Unit, Hydrocracker J —S , a and Distillate Hydrotreaters ®@ Strategic Focus — Increase finished ULSD production from gas oil @ Material Balance (MBCD) * Increased diesel 25 * Increased gasoline 10 = Increased gas oil feedstock 30 @ Investment: ~$250 m
Slide 66: Garyville Gasoline and Diesel Export Project
Garyville Gasoline and Diesel Exp @ Scope —Add gasoline export tank and expand diesel loading capacity to docks @ Strategic Focus — Increase export capability @ Shipping capacity = Increasing export capacity of gasoline and diesel from ~70 MBCD to ~100 MBCD B® Investment: ~$40 million Gi Estimated i
Slide 67: Catlettsburg No. 5 Vacuum Cut-point Improvement
Catlettsburg No. 5 Vacuum Cut-point Improvement @ Scope — Modify No. 5 Crude Unit during the 2014 turnaround ®@ Strategic Focus —Improve gas oil recovery and reduce purchased feedstocks ® Material Balance — Constant crude rate with 4.4 MBCD less purchased gas oil ® Investment: ~$100 million over fou
Slide 68: Robinson Unicracker Revamp
Robinson Unicracker Revamp ™@ Scope —Convert Hydrocracker to improve yields @ Strategic Focus — Take advantage of favorable diesel value over gasoline = Material Balance — Shift five to 10 MBCD from LPG/gasoline to diesel = Investment: ¥$75 million over four years = Estimated incremental annual EBIT
Slide 69: Distillate Production Profile
Distillate Production Profile 500 ~ = —Ses ae -—- 450 38% g 400 36% 9 S 350 ~ 34% = § 300 - 32% ® 8 | S 2 250 + 30% & 2 i) & 200 | 28% se & | 9 2 150 | 26% ¢ & 100 | 24% & 50 | 22% 0. 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 est est est est est Game VPC Distillate MBCD —m
Slide 70: Diesel Production Profile
Diesel Production Profile (Excludes Kerosene and Jet Fuel) 500 —. 40% 450 38% 5 400 36% © g 3 @ 350 34% & < § 300 32% 2 3 250 30% 3 x £ 200 28% 9 _ ° 3 150 26% A © 100 | 24% 50 22% 0 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 est est est est est Wm MPC Diesel MBCD em VIPC D
Slide 71: Keystone Pipeline
Keystone Pipeline Edmonton Mountain Burnaby Anacortes Portland hicago kh 1 iS ———. Mustang fh Salt Lake City Casper th MPC Refineries ==> Keystone «= ® Planned Houston cs a Be pee ===> Enbridge Mainline = ‘o-Ho jouma inal Echo TEMS, eeport Significantly Expands Canadian Crude Options (BA)
Slide 72: Leveraging Keystone Pipeline
Leveraging Keystone Pipeline @ MPC Canadian volumes will continue to rise as we remove tankage and pipeline constraints at the origin and destination terminals Enbridge Hardisty Commercial Terminal ® Additional tankage @ Pipeline connection debottlenecking Plains Terminal at Patoka ® Other commercia
Slide 73: Taking Advantage of the Sweet Synthetic Opportunity
@ Canadian synthetic has not been part of ry Enbridge Hardis' “Advantaged” crude definition Beran Commercial Terminal H Synthetic spreads have widened since midyear ® Working around constraints to increase supply WTI Differentials —e—BRENT —@LLS =—®=SYN —@®WCS $40.00 Plains Terminal $30.00 4 at Pato
Slide 74: Dynamic Landscape: Canadian Crude, Present Supply
Dynamic Landscape: Canadian Crude Present Supply Edmonton Mountain Burnaby mee Enbridge x 2 re 9 Portland a r) Salt Lake City ih MPC Refineries ===> Enbridge Mainline th = NewConstruction Poot Arthur dh
Slide 75: Dynamic Landscape: Canadian Crude, Proposed Supply
Dynamic Landscape: Canadian Crude Proposed Supply Edmonton Gateway Mountain Burnaby men Enbridge z= a rs 6 Portland 3 ° Salt Lake City MPC Refineries te 4 = Enbridge Mainline ib F —> Planned New Construction
Slide 76: MPC Tactical Options: Keystone Pipeline
MPC Tactical Options Keystone Pipeline Key Facts 2 ® Owner -TransCanada + Mandisty ; @ Origin -Hardisty ® Destination —-Wood River, Patoka, Illinois and Cushing, Oklahoma @ Diameter — 30” to Patoka; 36” from Steele City to Cushing Distance — 2,148 Miles Capital — $5.2 Billion Current capacity — 590
Slide 77: MPC Tactical Options: Keystone XL Pipeline
MPC Tactical Options Keystone XL Pipeline Key Facts Owner — TransCanada oHardisty Origin — Hardisty Destination — Port Arthur/Houston Diameter — 36” Distance — 1,980 Miles Capital — $7.8 Billion Status — ? Estimated completion * Cushing to USGC —? = Hardisty to Steele City —? @ Initial capacity * Cu
Slide 78: Options...Cushing
Options...Cushing ® Cushing Pipelines/Refineries NCRA — McPherson, KS frostier El Dorado, 2 % "%, % ConocoPhillips ~ Ponca City, OK CONOCO PHILLIPS PL Holly — Tulsa, OK oO « WRB ~ Borger, TX ean "THORN py et jary Williams - eget Wynnewood, OK = Pipelines Total IN 1,875 MBD Pipelines Total OUT 985 MB
Slide 79: Indicative Rail Costs Bakken to East Coast
Indicative Rail Costs Bakken to East Coast Fe co f } - ¢ North Dakota . ' . U ‘\ a Indicative Rail Costs ($/BBL) Gathering 2.25 Truck Transport 3.00 Railcar Loading 1.50 Rail Transportation 7.50 Railcar Lease 1.00 Railcar Unloading 1.00 Barge Loading 75 Barge Transportation _1.00 Total 18.00 Source:
Slide 80: Indicative Barge Costs - South Texas to East Coast
Indicative Barge Costs - South Texas to East Coast Trucking to Pipeline Hub 3.00 Pipeline to Houston 1.50 Barge Loading Fee 75 Barge Transportation 10.00 Total 15.25 soure: mecesimate Barge Cost to East Coast is Expensive Qo EEE
Slide 81: Midwest Refineries' Opportunity
Slide 82: Texas City Refinery Opportunity
Slide 83: Garyville Opportunity Crudes
Slide 84: Refined Product and Crude Spreads
Slide 85: Convenience Store Industry Profile
Slide 86: Pipeline Transportation Segment Revenue Generated from Third Parties
Marathon Petroleum — Goldman Sachs Energy Conference 2012 on 6ix