Marathon Petroleum Corporation · NYSE:MPC

Marathon Petroleum — Investor Presentation (January 2017)

13 slides from Marathon Petroleum's investor presentation, Jan 3, 2017

  1. Slide 1: Update on Strategic Actions to Enhance Shareholder Value

    Update on Strategic Actions to Enhance Shareholder Value January 3, 2017

  2. 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") and MPLX LP ("MPLX"). These forward-looking statements relate to, among other things, expectations, estimates and projection

  3. Slide 3: Update on Strategic Actions to Enhance Shareholder Value

    Update on Strategic Actions to Enhance Shareholder Value 1) 1 Significantly accelerated dropdowns, to be done as soon as practicable (expected in 2017), subject to requisite approvals and regulatory clearances, including tax  MPC expects to dropdown assets generating ~$1.4 billion of EBITDA to MPLX

  4. Slide 4: MPC to Dropdown All ~$1.4 Billion MLP-Qualifying EBITDA to MPLX As Soon As Practicable

    1 MPC to Dropdown All ~$1.4 Billion MLP-Qualifying EBITDA to MPLX As Soon As Practicable (Expected in 2017) MPC expects to dropdown assets generating ~$1.4 billion of MLP-eligible annual EBITDA to MPLX as soon as practicable (expected in 2017), subject to requisite approvals and regulatory clearance

  5. Slide 5: All Dropdowns Expected to Be Done by End of 2017

    1 All Dropdowns Expected to Be Done by End of 2017  Dropdown of ~$250 million of annual EBITDA – expected to close in first quarter 2017  Dropdown of ~$350 million of annual EBITDA – expected to close by the end of fourth quarter 2017  Dropdown of ~$800 million of annual EBITDA, including the fue

  6. Slide 6: MPC Expects to Offer IDRs to MPLX in Exchange for MPLX LP Units in 2017

    2 MPC Expects to Offer IDRs to MPLX in Exchange for MPLX LP Units in 2017  With the assistance of independent financial advisors, MPC completed its initial evaluation of strategic alternatives to highlight and capture the value of its general partner interests in MPLX while optimizing MPLX’s cost o

  7. Slide 7: Significant Cash to MPC for Return to Shareholders and Debt Paydown

    1 2 Strategic Actions to Enhance Shareholder Value Significant Cash to MPC for Return to Shareholders and Debt Paydown  Dropdown transactions will result in a substantial amount of cash to MPC at close; additional cash would be generated through ongoing distributions from MPLX – Dropdowns are expec

  8. Slide 8: Significant Value to MPLX

    1 2 Strategic Actions to Enhance Shareholder Value Significant Value to MPLX  The combination of dropdowns and GP/IDR buy-in is anticipated to lower MPLX’s cost of capital going forward – Dropdowns enhance distribution growth – GP/IDR buy-in removes IDR burden and lowers equity cost of capital  Th

  9. Slide 9: Total Midstream Value to MPC After Strategic Plan

    1 2 Strategic Actions to Enhance Shareholder Value Total Midstream Value to MPC After Strategic Plan  After dropping assets and converting the IDRs to LP units, MPC would have ~$21 - 26 billion of midstream value held either in cash or publicly-traded MPLX LP units Category Description Value to MPC

  10. Slide 10: MPC Will Conduct Full and Thorough Review of Speedway

    3 MPC Will Conduct Full and Thorough Review of Speedway  In keeping with MPC’s practice of evaluating shareholder value creation, an MPC Board special committee will conduct a full and thorough review of Speedway’s strategic and financial alternatives – Review to include a tax-free separation of Sp

  11. Slide 11: Consistent with Its Demonstrated Track Record, MPC Continues Its Focus on Long-Term Value Creation

    Consistent with Its Demonstrated Track Record, MPC Continues Its Focus on Long-Term Value Creation MPC and its Board of Directors continually analyze opportunities to enhance value and are confident that the MPC plan is the right course – 2011 spinoff from Marathon Oil Proven – Creation of MPLX Comm

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: MPC has an Extensive Suite of MLP-Qualifying Assets

    MPC has an Extensive Suite of MLP-Qualifying Assets ~$1.4 Billion of Estimated Annual EBITDA  ~5,400 miles of additional pipelines (owns, leases or has an ownership interest)  Equity in 50/50 blue water JV with Crowley  61 light product; ~20 MMBBL storage; 187 loading lanes  18 asphalt; ~4 MMBBL

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