Marathon Petroleum Corporation · NYSE:MPC

Marathon Petroleum — Investor Presentation (November 2016)

88 slides from Marathon Petroleum's investor presentation, November 2016

  1. Slide 1: Investor Presentation

    Investor Presentation November 2016

  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: Important Additional Information

    Important Additional Information MPC, its directors and certain of its executive officers may be deemed to be participants in the solicitation of proxies from MPC shareholders in connection with the matters to be considered at MPC’s 2017 Annual Meeting. MPC intends to file a proxy statement with the

  4. Slide 4: Delivering for Investors

    Delivering for Investors Returned ~45% of Current Market Cap and Have Grown Scale, Diversification & Quality of Assets Scale, Diversity and Stability of Cash Flow Since Spin: Provided Significant Returns to Our Shareholders Increased our refining capacity in the geographically critical U.S. Gulf Coa

  5. Slide 5: Creating a More Diversified Portfolio

    Creating a More Diversified Portfolio 3Q 2016 LTM EBITDA Speedway 20% R&M(b) 2011 EBITDA 27% Midstream Speedway 5% 8% 26% 27% R&M Midstream(a) MLP-Eligible(c) 87% R&M (a)Includes MarkWest EBITDA post merger Dec 4, 2015 (b)Excludes estimated EBITDA from MLP-eligible assets (c)Represents estimated EBI

  6. Slide 6: Performance and Total Shareholder Return

    Performance and Total Shareholder Return $70 TSR: Since Spinoff 139.2% 131.0% $60 96.0% 80.5% $50 MPC Peer Group (1) Refining Peers(2) S&P 500 $/Share $40 TSR: Last Three Years $30 31.1% 27.0% 28.9% 22.5% $20 MPC Peer Group (1) Refining Peers(2) S&P 500 $10 2011 2012 2013 2014 2015 2016 (1) Peer Gro

  7. Slide 7: Balanced Approach to Returning Capital and Investment Since July 2011

    Balanced Approach to Returning Capital and Investment Since July 2011 Investing in the Capital  Strategic investments providing long-term stable Business* Return cash flows  $7.4 B returned to shareholders through repurchases, $10.1 B $16.3 B representing 28% of shares outstanding  Six dividend i

  8. Slide 8: Strategic Plan to Enhance Shareholder Value

    Strategic Plan to Enhance Shareholder Value  Aggressive dropdown strategy* – MPC plans to offer assets with ~$350 MM of annual EBITDA to MPLX by the end of 2017, including ~$235 MM by the end of Q1 2017 – Following these initial dropdowns and as soon as practicable, MPC expects to offer its remaini

  9. Slide 9: Market Outlook

    Market Outlook  Distillate demand expected to be strong – Normal winter weather expected to support distillate demand and lead to a reduction in inventory – As gasoline demand is impacted by CAFE standards, global distillate demand is expected to be greater than gasoline – International bunker spec

  10. Slide 10: Refining & Marketing Segment Transformation

    Refining & Marketing Segment Transformation Galveston Bay Refinery Light Crude MPC spinoff DHOUP acquisition from BP Processing from Marathon Oil Corp. (Detroit Heavy Oil Condensate Splitter Investments Robinson Refinery Upgrade Project) Canton & Catlettsburg Refineries 2011 2012 2013 2014 2015 2016

  11. Slide 11: Consistent Top Tier Profitability

    Consistent Top Tier Profitability Focus on Midwest and Gulf Coast through cycle benefit Operating Income Per Barrel of Crude Throughput* 20 MPC’s Rank MPC’s Rank during periods of strong West Coast margins** 15 Competitor Range 1 2 10 2 5 1 $/BBL 3 6 5 1 3 2 4 2 7 3 3 3 1 3 2 0 -5 1998 1999 2000 200

  12. Slide 12: Strong Operational Performance and Responsible Corporate Leadership

    Strong Operational Performance and Responsible Corporate Leadership 12

  13. Slide 13: Galveston Bay Refinery Performance

    Galveston Bay Refinery Performance Improvements Since Acquisition  Lowered operating costs 15% since 2014  Lowered routine maintenance costs 26% since 2014 due to improved reliability and cost efficiencies  Target to lower operating costs an additional 15% by 2020 Reliable Operations Environmenta

  14. Slide 14: Optimization of South Texas Asset Repositioning (STAR) Program

    Optimization of South Texas Asset Repositioning (STAR) Program  Potential reduction of total planned investment from $2 B to $1.5 B  Project scope and investment return profile substantially preserved  Project scope: – Increase residual oil (resid) processing – Revamp crude unit – Increase ULSD p

  15. Slide 15: Enhancing Refining Margins

    Enhancing Refining Margins Planned Investments of ~$475 MM Contributing ~$250 MM EBITDA  Garyville FCC/Alky – ~$220 MM investment, ~$90 MM EBITDA per year – ~25% IRR, late 2016 est. completion 600 Export Capacity  Galveston Bay export capacity expansion 500 510 – ~$95 MM investment, ~$50 MM EBITDA

  16. Slide 16: Speedway Segment Transformation

    Speedway Segment Transformation MPC spinoff Hess Retail Acquisitions: Expansion into Travel Plaza JV from Marathon Oil Corp. acquisition Gas City, Road Ranger, new markets: GasAmerica Pennsylvania and Tennessee 2011 2012 2013 2014 2015 2016  Doubled retail locations count to ~2,770, expanding to th

  17. Slide 17: Speedway - Top Tier Performer in Convenience Store Industry

    Speedway - Top tier Performer in Convenience Store Industry  Generates predictable, stable cash flows  #1 in EBITDA/store/month vs. public peers 40 EBITDA $M/Store/Month 30 20 10 0 Speedway Sunoco Casey's CST Couche-Tard Murphy Delek Alon USA Western USA Refining $M/Store/Month 100 Total Margin 75

  18. Slide 18: Speedway Exceeding Expected Acquisition-Related Synergies

    Speedway Exceeding Expected Acquisition-Related Synergies  Continuing to focus on marketing enhancements opportunities  Completed 39 remodels in 3Q 2016, 493 to date at acquired locations  Reduced overall light product breakeven by ~25% in 3Q 2016 compared to 3Q 2015* Synergies and Marketing Enha

  19. Slide 19: Speedway Provides Significant Value to MPC's Integrated Business Model

    Speedway Provides Significant Value to MPC’s Integrated Business Model  MPC’s most ratable distribution channel – Markets ~6 B gallons of light product volumes annually EBITDA – Allows for optimization of refining, pipeline and terminal 1,200 operations ~$1B 1,000 – Supports midstream infrastructur

  20. Slide 20: Midstream Segment Transformation

    Midstream Segment Transformation Bakken Initial Public Offering Cornerstone Pipeline MarkWest MPC spinoff Pipeline System of MPLX LP & Utica build-out merger from Marathon Oil Corp. investment announcement* organic growth project 2011 2012 2013 2014 2015 2016  Formed MPLX and accelerated growth str

  21. Slide 21: MPLX's Robust Growth Opportunities Creates Significant Long-Term Value

    MPLX’s Robust Growth Opportunities Creates Significant Long-Term Value  Premier assets in highly Marcellus & Utica account for over 20% productive resource plays Marcellus & Utica – Billion Cubic Feet per Day (Bcf/d) Rest of U.S. – Billion Cubic Feet per Day (Bcf/d) of total U.S. Gas Supply 65 28 

  22. Slide 22: Equity Participation in Bakken Pipeline System

    Equity Participation in Bakken Pipeline System  Announced agreement to participate in the Dakota Access Pipeline (DAPL) and the Energy Transfer Crude Oil Pipeline (ETCOP) projects, collectively referred to as the Bakken Pipeline System – Expected MPLX investment of $500 MM, subject to closing condi

  23. Slide 23: MPLX Creates Significant Value and Provides Stable Cash Flows

    MPLX Creates Significant Value and Provides Stable Cash Flows  Growth-oriented, diversified MLP with Midstream Segment EBITDA* high-quality strategically located assets 1,400 $1,304 with leading midstream position 1,200  Robust portfolio of organic growth 1,000 opportunities 800 $MM  Significant

  24. Slide 24: MPLX - Focus on Solutions to Enhance Northeast NGL Market

    MPLX - Focus on Solutions to Enhance Northeast NGL Market Lead the development of infrastructure to link supply of Northeast NGLs with market demand and enhance value for producer customers  Largest fully integrated de-ethanization system in Marcellus and Utica shales Ethane  Access to all major t

  25. Slide 25: MPC's Substantial MLP-Qualifying Asset Portfolio

    MPC’s Substantial MLP-Qualifying Asset Portfolio ~ $1.4 B of estimated annual EBITDA expected to be dropped by the end of 2019 Pipelines ● ~5,400 miles of additional pipelines (owns, leases or has an ownership interest) Marine ● Equity in 50/50 blue water JV with Crowley ● 61 light product; ~20 MMBB

  26. Slide 26: 2016 Capital Outlook

    2016 Capital Outlook $1.1 B Reduction from Initial Budget Speedway Corporate 2016 Capital Outlook – $3.1 B* & Other 3% MPC – $1.9 B 10%  Refining & Marketing, excluding Refining Midstream – $1,045 MM MPLX Sustaining 22% Capital  Midstream** – $440 MM 39%  Speedway – $310 MM  Corporate & Other –

  27. Slide 27: Our Priorities for Value Creation

    Our Priorities for Value Creation Maintain Balance Top Tier Capital Returns Safety and with Environmental Value-enhancing Performance Investments Grow Higher Enhance Valued and Margins for Stable Cash-flow Our Refinery Businesses Operations 27

  28. Slide 28: MPC's Strong Liquidity and Capitalization

    MPC’s Strong Liquidity and Capitalization  Committed to maintaining MPC MPC MPLX investment grade credit profile for As of September 30, 2016 Consolidated Adjustments(a) Excluding both MPC and MPLX ($MM except ratio data) MPLX  Operate with prudent leverage Debt 10,566 4,412 6,154 and strong liqui

  29. Slide 29: MPC's Proven Track Record

    MPC’s Proven Track Record Galveston Bay Acquisition + Hess Retail Acquisition + MarkWest Merger + Repurchased 28% of Outstanding Shares + 260% Increase in Dividend = of Current Market Cap Returned ~45% and Grew Scale, Diversification & Quality of Assets 29

  30. Slide 30: Appendix

    Appendix

  31. Slide 31: Fundamentals of MPC's Business

    Fundamentals of MPC’s Business  Fully integrated system provides optionality and flexibility  Strategically located assets  MPLX adds substantial long-term value  Top tier retail system  Focus on operational excellence  Sustained performance through all cycles  Significant contribution from s

  32. Slide 32: Expanding Cash Flow Distributions from MPLX

    Expanding Cash Flow Distributions from MPLX Illustrative Example of Growing GP / IDR Cash Flows with Announced Dropdowns* GP Cash Flows Based on Drop Multiple Illustrative 2017E 2018E 2019E Value ($MM) 6.0x 8.0x 6.0x 8.0x 6.0x 8.0x Cash 10x $ 3,400 $ 3,560 $ 4,830 $ 5,270 $ 6,790 $ 7,480 Flow 20x $

  33. Slide 33: Dropdowns Generate Significant Proceeds to MPC

    Dropdowns Generate Significant Proceeds to MPC Illustrative Example of Drop Proceeds Range – Various Amounts of Equity Issued to MPC* $3,500 $3,500 $3,500 $3,500 3,500 3,000 $2,450 $2,450 $1,750 $1,750 2,500 2,000 $1,225 $MM 1,500 1,000 $1,750 $1,750 $600 $1,225 500 0 2016E 2016E | 2017E 2017E | 201

  34. Slide 34: Returning Capital to Shareholders Through Share Repurchases

    Returning Capital to Shareholders Through Share Repurchases 8,000 Cumulative Share Repurchases Since July 2011  $10 B share 6,000 repurchases authorized  $7.42 B returned to shareholders through $MM 4,000 repurchases 2,000  28% of June 30, 2011 shares outstanding 0 repurchased 34

  35. Slide 35: Refining Margin Improvement

    Refining Increasing EBITDA Through Continuous Process Improvements  Low or no investment projects Refining Process Improvements* 1,000  Focus on technical excellence 800 Margin Improvement  Improvements in process unit 600 $MM performance 400  EBITDA improvement 200 of approximately $800 MM betw

  36. Slide 36: Galveston Bay Process Improvements and Synergies

    Galveston Bay Process Improvements and Synergies* EBITDA Improvement  Process improvements 700 – Unit optimization 600 – Improved unit yields – Bottlenecks removed 500 – Catalyst changes 400 $MM 300  Synergy capture – Crude optimization 200 – Process unit utilization 100  Future improvements 0 20

  37. Slide 37: Key Strengths

    Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate 60% PADD II 59% Sour Crude 40% PADD III 41% Sweet Crude As of September 30, 2016 3Q 2016 Assured Sales of Gasoline Production (Speedway + Brand + Wholesale Contract Sales) Assured Sales ~70% ~30% Wholesale and Other Sales 3Q 2

  38. Slide 38: Balance in Refining Network

    Balance in Refining Network BPCD NCI Canton (Ohio) 93,000 7.8 Catlettsburg (Ky.) 273,000 9.2 Detroit (Mich.) 132,000 9.7 Midwest Capacity 710,000 BPCD Robinson (Ill.) 212,000 10.5 Galveston Bay (Texas) 459,000 13.5 Texas City (Texas) 86,000 7.8 Garyville (La.) 539,000 11.2 Total 1,794,000 10.9* The

  39. Slide 39: ENERGY STAR Program

    ENERGY STAR Program  ENERGY STAR labels for refining EPA ENERGY STAR History as of 6-15-16 industry began in 2006 Operating Year ---> EPA Certification Year ---> 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016  47 labels awarded during

  40. Slide 40: Distillate Leading World Liquids Demand

    Distillate Leading World Liquids Demand Average Annual 120 Volumetric Growth (MBD) Actual Forecast 2015 vs. 2025  Average product 100 demand growth +445 80 of 1.6 MMBD in Other 2016-2017 -19 MMBD 60 Resid  Distillate remains +623 the growth leader 40 Middle Distillate through 2025 20  Heavy fuel

  41. Slide 41: Distillate Leads U.S. Domestic Petroleum Fuels Demand

    Distillate Leads U.S. Domestic Petroleum Fuels Demand Compounded 10 Annual Actual Forecast Growth Rates 9 Gasoline 2015 vs. 2030  Gasoline demand 8 -1.1% declines due to corporate Gasoline ex ethanol 7 -1.1% average fuel economy 6 (CAFE) standards despite MMBD 5 Distillate increased travel +1.4% 4

  42. Slide 42: U.S. Refiners have a Sustained Export Advantage

    U.S. Refiners have a Sustained Export Advantage  Low cost natural gas  Large, complex refineries 2015 Region Utilization  Access to lower cost feedstocks Rate  High utilization rates North America 88%  Sophisticated workforce MPC 99% Natural Gas Price Comparison Europe 86% 18 Actual Forecast 16

  43. Slide 43: Peer-leading Alkylation and Reforming Capacity

    Peer-leading Alkylation and Reforming Capacity Octane Capacity  Lighter crude runs HFC 85 30 32 (31%) Reforming produce more light BP 135 45 33 (30%) Isomerization naphtha, increasing Alkylation ( ) % of Crude Capacity demand for octane PBF 148 20 66 (28%)  Shale crudes yield a Tesoro 158 39 63 (3

  44. Slide 44: North American Crude Production

    North American Crude Production 16 Actual Forecast 14  Shale production challenged in 12 current price environment Canada 10  Drilling improvements and efficiency gains have lessened MMBD 8 U.S. Shale near-term declines 6 4  Long-term production growth is 2 still expected U.S. Non-Shale 0 2010 20

  45. Slide 45: U.S. Natural Gas Production Growth Largely from Shale

    U.S. Natural Gas Production Growth Largely from Shale 20 Actual Forecast 18  U.S. natural gas supply 16 to grow by 5.4 MMBOED (29 BCFD) by 2030 14  2015 production was 12 MMBOED 13.8 MBOED (74.5 BCFD) 10 Shale Gas  Lower global LNG prices 8 pose a challenge for new 6 U.S. LNG projects Tight Gas 4

  46. Slide 46: U.S. NGL Volume Growth Creates a Need for Incremental Infrastructure

    U.S. NGL Volume Growth Creates a Need for Incremental Infrastructure 7  Gulf Coast ethylene Actual Forecast crackers are being built, 6 adding 700 MBD to demand for ethane by 2021 5  Realized ethane production Purity Ethane increases from 2016-2020 4 MMBD as rejection tapers off due to 3 increased

  47. Slide 47: Key North American Crude Oil Pipelines

    Key North American Crude Oil Pipelines In-Service Planned Pipelines MBPD Date Dakota Access 570 2017 ETCO 570 2017 Bayou Bridge (Lake Charles to St. James) TBD* 2017 Diamond 200 2017 Midland to Sealy 300 2018 Trans Mountain Expansion 590 2019 Energy East 1,100 2020 *Capacity has not been announced S

  48. Slide 48: Galveston Bay-Texas City World-Class Refining Complex

    Galveston Bay-Texas City World-Class Refining Complex Integrated Galveston Bay-Texas City Refinery Post-STAR Galveston BPCD Unless Noted Bay* Crude 585,000 Vacuum Distillation 225,200 Residual Hydrocracking 94,300 Coking 29,800 Catalytic Cracking 184,800 Catalytic Reforming 124,300 Catalytic Hydrocr

  49. Slide 49: Capitalizing on Growing U.S. Finished Product Exports

    Capitalizing on Growing U.S. Finished Product Exports Gross U.S. Finished Product Exports MPC Finished Product Exports 1,800 350 1,600 300 1,400 250 1,200 1,000 200 MBD MBD 800 150 600 100 400 50 200 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Other U.S. MPC Sources: MPC, EIA 49

  50. Slide 50: Speedway Strong and Consistent Growth

    Speedway Strong and Consistent Growth Gasoline and Distillate Sales Volume 8,000 Merchandise Sales/Gross Margin MM Gallons 6000 29 6,000 6,038 4,879 4,000 3,942 28 2,000 3,027 3,146 4000 3,611 Percent 0 3,058 3,135 $MM 27 2012 2013 2014 2015 2000 Gasoline and Distillate Gross Margin(a) 26 20.00 825

  51. Slide 51: Speedway: Pursuing Attractive and Accretive Acquisitions

    Speedway: Pursuing Attractive and Accretive Acquisitions  Leverage MPC’s supply and logistical network – Increase assured sales – Optimize terminal utilization  Fill market voids in Speedway footprint – High quality assets – Continue focus in Pennsylvania and Tennessee – Growth opportunities in Ge

  52. Slide 52: Following Through on Goals for Acquired Locations

    Following Through on Goals for Acquired Locations Earnings Opportunities (Original Guidance)  Invest ~$570 MM in conversions, 400 70 remodels and maintenance 300 45 40 $MM 200 35  Converted stores to Speedway brand 365 100 and technology platforms 175 0  Remodel approximately 2013 Form 10 Operati

  53. Slide 53: Focus on Improving Light Product Breakeven

    Focus on Improving Light Product Breakeven 13 12.39 11 Each 1.00 cent per gallon improvement = ~$30 MM annual Light Product Breakeven (cpg) 9 pretax earnings Total Expenses – 7 7.13 LPBE = Merchandise Margin Light Product Volume 5 3  Measure of operating efficiency and 2.56 merchandise contribution

  54. Slide 54: Speedway and Hess Side-by-Side Comparison

    Speedway and Hess Side-by-Side Comparison Hess(a) Speedway(b) Company Operated Sites 1,255 1,478 Fuel Sales  Speedway generates an incremental 198,500 177,400 (gallons/store/month) $17,300 of merchandise margin per Fuel Margin $0.137 $0.144 store per month ($/gallon)  ~$250 MM of additional annual

  55. Slide 55: Top Tier Performance

    Top Tier Performance 300 Light Product Volume M Gal/Store/Month 200 100 0 Murphy USA Speedway CST Sunoco Couche-Tard Delek Western Casey's Alon USA Refining 200 Merchandise Sales $M/Store/Month 150 100 50 0 Murphy USA Sunoco Speedway Couche-Tard Casey's CST Western Delek Alon USA Refining Sources: 2

  56. Slide 56: 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 and storage of crude oil, refined products and other hydrocarbon-based products – Gathering & Processin

  57. Slide 57: MPLX Key Investment Highlights

    MPLX Key Investment Highlights  High standard for safety and environmental stewardship  Premier assets in highly productive resource plays  Long-term integrated relationships with our producer customers  Strategic relationship with MPC  Strong base business with robust growth opportunities – Le

  58. Slide 58: MPLX and MPC are Aligned

    MPLX and MPC are Aligned MPLX Organizational Structure  MPC views MPLX as integral to its Marathon Petroleum Corporation and Affiliates operations and is aligned with its (NYSE: MPC) success and incentivized to grow 100% interest 22% LP interest Public MPLX Preferred  MPC owns 22% LP interest and

  59. Slide 59: MPLX Logistics & Storage

    MPLX Logistics & Storage  High-quality, well-maintained assets that are integral to MPC – 1,008 miles of common carrier crude oil pipelines – 1,900 miles of common carrier product pipelines – Barge dock with approximately 78,000 BPD throughput capacity – Four tank farms with approximately 4.5 MM ba

  60. Slide 60: Executing a Comprehensive Utica Strategy

    Executing a Comprehensive Utica Strategy Phased infrastructure investment  Cornerstone Pipeline commenced operations on time and under budget  Hopedale pipeline connection, late 2016 estimated completion  Links Marcellus and Utica condensate and natural gasoline with Midwest refiners  Allows dil

  61. Slide 61: MPLX - Attractive Portfolio of Organic Growth Capital

    MPLX - Attractive Portfolio of Organic Growth Capital Logistics & Storage Segment Utica Infrastructure Build-out  Industry solution for Marcellus and Utica liquids  Mid-2017 estimated completion Texas City Tank Farm  MPC and third-party logistics solutions  2018 estimated completion Robinson But

  62. Slide 62: MPLX - Logistics & Storage Contract Structure

    MPLX - Logistics & Storage Contract Structure  Fee-based assets with minimal commodity 2015 Revenue – Customer Mix exposure(c) 8%  MPC has historically accounted for $47 – over 85% of the volumes shipped on MPLX’s MM crude and product pipelines 23% – 100% of the volumes transported via MPLX’s $130

  63. Slide 63: MPLX Gathering & Processing

    MPLX Gathering & Processing • Ethane Raw Gathering • Propane Processing Mixed Fractionation NGL Natural Gas and • Normal Butane Plants NGLs Facilities Products • Isobutane Production Compression • Natural Gasoline  One of the largest NGL and natural gas midstream service providers – Gathering capac

  64. Slide 64: MPLX Growth Capital Forecast

    MPLX Growth Capital Forecast Gathering & Processing projects Est. Projects Shale Resource Capacity Completion Date Marcellus and Rich- and Dry-Gas Gathering(a) N/A Ongoing Utica Western Oklahoma - STACK Rich-Gas and Cana Woodford N/A Ongoing Oil Gathering Hopedale III C3+ Fractionation and NGL Marce

  65. Slide 65: MPLX Northeast Operations Well-Positioned in Ethane Market

    MPLX Northeast Operations Well-Positioned in Ethane Market  Ethane demand growing as exports Ohio and steam cracker development Pennsylvania continues in Gulf Coast and Northeast Keystone  MPLX well-positioned to support producer customers’ rich-gas Harmon Creek development with extensive distribu

  66. Slide 66: Northeast Infrastructure Opportunities

    Northeast Infrastructure Opportunities 1 NGL/Light Products EAST COAST BLENDING to East Coast 1 TERMINALS - Large-scale East Coast LPG export terminal 3 - Rail/pipeline to East Coast export terminal Northeast - Optionality and operational certainty for 2 Operations producers EXPORTS TO INTERNATIONAL

  67. Slide 67: MPLX - Gathering & Processing Contract Structure

    MPLX - 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 – includin

  68. Slide 68: Gathering & Processing: Marcellus & Utica Operations

    Gathering & Processing Marcellus & Utica Operations 2.8 Houston Complex Sherwood Complex Hopedale Complex 0 Bcf/d Gathering capacity 5.5 Bcf/d Processing capacity 417 MBPD C2+ Fractionation capacity 25 MBPD Cond. Stabilization capacity 68

  69. Slide 69: MPLX - Gathering & Processing: Processed Volumes

    MPLX - Gathering & Processing Marcellus & Utica Operations Processed Volumes Processed volumes averaged over Available Average 4.3 Bcf/d in 3Q 2016 Area Capacity Volume Utilization (%) (MMcf/d)(a) (MMcf/d) 2016: Marcellus 4,155 3,273 79% Houston 555 467 84%  Processed volumes expected to increase ~

  70. Slide 70: MPLX - Gathering & Processing: Marcellus & Utica Fractionation

    MPLX - Gathering & Processing Marcellus & Utica Fractionation  2016 fractionated volumes Fractionated Volumes expected to increase ~30% over Available Average prior year Area Capacity Volume Utilization (%) (MBPD)(a) (MBPD)  2017 fractionated volumes expected to increase ~15% to 3Q16 Total C3+ 227

  71. Slide 71: The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play

    The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play 65 Marcellus & Utica account for over 28 Marcellus & Utica – Billion Cubic Feet per Day Rest of U.S. – Billion Cubic Feet per Day (Bcf/d) 64 20% of total U.S. Gas Supply Marcellus & Utica 63 23 62 61 18 (Bcf/d) 60 59 13 58

  72. Slide 72: U.S. Natural Gas and NGL Trade Flows Changing

    U.S. Natural Gas and NGL Trade Flows Changing 2000 2020  Paradigm shift from U.S. Northeast being a significant importer to a significant exporter  Driven by Marcellus and Utica production growth  Infrastructure continuing to build out to reflect changes in trade flows 72

  73. Slide 73: Northeast NGL Supply Growth Forecast

    Northeast NGL Supply Growth Forecast  Northeast is forecasted to account for 24% of total U.S. NGL production in 2026 49 MBPD  Access to all major NGL Williston markets in the U.S. and the world 25 537  MPLX is largest midstream MBPD DJ MBPD operator in the Marcellus and Northeast Utica shales 20

  74. Slide 74: Northeast Operations Well-Positioned to Access all Major NGL Markets

    Northeast Operations Well-Positioned to Access all Major NGL Markets* Edmonton Northeast  Access to all major NGL Markets Markets Ontario markets in the U.S. and Midwest Markets the world Markets  Key takeaway solutions Northeast underway such as Utica infrastructure build-out, Operations Mariner

  75. Slide 75: Northeast Operations Well-Positioned in Ethane Market

    Northeast Operations Well-Positioned in Ethane Market Ontario Markets  Operate 190 MBPD of de-ethanization capacity in the Mariner West Mariner East Marcellus and Utica shales Exports Distribution by Pipeline Northeast  Produced 126 MBPD of purity Operations ethane in third-quarter 2016, a 78% inc

  76. Slide 76: Gathering & Processing: Southwest Operations

    Gathering & Processing Southwest Operations 2.7 Carthage Complex Hidalgo Buffalo Creek Complex Javelina Complex Complex 0 Bcf/d Gathering capacity 1.5 Bcf/d* Processing capacity 29 MBPD C2+ Fractionation capacity *Includes 40% of processing capacity through the Partnership’s Centrahoma Joint Venture

  77. Slide 77: MPLX - Gathering & Processing: Southwest Operations

    MPLX - Gathering & Processing Southwest Operations 2016: Processed Volumes  Processed volumes expected to Available Average Utilization increase ~15% over prior year Area Capacity Volume (%) (MMcf/d)(a) (MMcf/d)  Gathered volumes expected to increase ~2% over prior year West Texas(b) 200 168 84% E

  78. Slide 78: MPLX - Organic Capital Investment

    MPLX - Organic Capital Investment  2016 organic growth capital forecast 2016 Organic Capital Investment of $1.1 B to $1.2 B  2017 organic growth capital forecast 25% of $1.2 B to $1.6 B 7% – Gathering & Processing capital includes infrastructure to support Northeast and Southwest 32% operations –

  79. Slide 79: MPLX - Strong Financial Flexibility to Manage and Grow Asset Base

    MPLX - Strong Financial Flexibility to Manage and Grow Asset Base As of  Committed to maintaining ($MM except ratio data) 9/30/16 investment grade credit profile Cash and cash equivalents 208  Completed a $1 B private Total assets 16,415 placement of convertible Total debt 4,412 preferred securiti

  80. Slide 80: MPLX's Commodity Price Sensitivities

    MPLX’s Commodity Price Sensitivities  90% fee-based net operating margin, 10% commodity exposed for 2017  Maintain active hedging program and have currently hedged ~50% of our remaining 2016 commodity exposure; currently hedged ~25% for 2017  Annual 2017 sensitivities to commodity price changes (

  81. Slide 81: MPLX's Forecast

    MPLX’s Forecast  12-15% distribution growth in 2017; double-digit distribution growth in 2018  Affirmed 2016 Forecast: Financial Measure 2016 Forecast Net Income(a) $140 MM - $240 MM Adjusted EBITDA(b) $1.3 B - $1.4 B Net cash provided by operating activities $1.1 B - $1.2 B Distributable Cash Flo

  82. Slide 82: MPLX's 2016 Forecast - Reconciliation

    MPLX’s 2016 Forecast - Reconciliation Adjusted EBITDA and Distributable Cash Flow from Net Income ($MM) Low High Net income 140 240 Plus: Depreciation and amortization 540 540 Impairment expense(a) 130 130 Net interest and other financial costs 220 220 Adjustment for equity investment earnings & dis

  83. Slide 83: Reconciliations

    Reconciliations Speedway Segment Adjusted EBITDA to Segment Income from Operations 3Q 2016 ($MM) 2011 4Q 2015 2015 1Q 2016 2Q 2016 3Q 2016 LTM Speedway Segment Income from Operations 271 135 673 167 193 209 704 Plus: Depreciations and Amortization 110 66 254 63 69 71 269 Plus: Lower of Cost or Marke

  84. Slide 84: Reconciliation

    Reconciliation Midstream Segment EBITDA to Segment Income from Operations 1H 2016 ($MM) 2011 2Q 2016 YTD Annualized Midstream Segment Income from Operations 199 368 736 Plus: Depreciation and Amortization 45 284 568 Midstream Segment EBITDA 244 652 1,304 84

  85. Slide 85: Reconciliation

    Reconciliation Pro Forma Adjusted EBITDA to Pro Forma Net Income Attributable to MPC ($MM) 2015 2016 LTM 4Q 1Q 2Q 3Q Pro Forma Net Income attributable to MPC(a) 225 1 801 145 1,172 Less: Net interest and other financial income (costs) (139) (142) (137) (141) (559) Add: Net income (loss) attributable

  86. Slide 86: Reconciliation

    Reconciliation Pro Forma Adjusted EBITDA related to MPLX to Pro Forma MPLX Net Income ($MM) 2015 2016 LTM 4Q 1Q 2Q 3Q Pro Forma MPLX Net Income(a) 104 (37) 20 143 230 Less: Net interest and other financial income (costs) (67) (68) (64) (64) (263) Add: Provision for income taxes - (4) (8) - (12) Depr

  87. Slide 87: MPC Annual Price and Margin Sensitivities

    MPC Annual Price and Margin Sensitivities Refining and Marketing Segment $MM (After Tax) LLS 6-3-2-1 Crack Spread* Sensitivity ~$450 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$220 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$90 (per $1.00/barrel change) Natural Ga

  88. Slide 88: MPC's Fully Integrated Downstream System

    MPC’s Fully Integrated Downstream System Refining and Marketing  Seven-plant refining system with ~1.8 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.

Marathon Petroleum — Investor Presentation (November 2016) on 6ix