Investor Presentation. February 2014

Transcription

1 Investor Presentation February 2014

2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding both MPC and MPLX. These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPC and MPLX. You can identify forward-looking statements by words such as anticipate, believe, estimate, expect, forecast, project, could, may, should, would, will or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the companies control and are difficult to predict. Factors that could cause MPC s actual results to differ materially from those in the forward-looking statements include: volatility in and/or degradation of market and industry conditions; the availability and pricing of crude oil and other feedstocks; slower growth in domestic and Canadian crude supply; completion of pipeline capacity to areas outside the U.S. Midwest; consumer demand for refined products; transportation logistics; the reliability of processing units and other equipment; the ability to successfully implement growth opportunities; impacts from repurchases of shares of MPC common stock under share repurchase authorizations, including the timing and amounts of any common stock repurchases; state and federal environmental, economic, health and safety, energy and other policies and regulations, including the cost of compliance with the Renewable Fuel Standard; other risk factors inherent to MPC s industry; and the factors set forth under the heading "Risk Factors" in MPC's Annual Report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission (SEC). Factors that could cause MPLX actual results to differ materially from those in the forwardlooking statements include: the adequacy of MPLX capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions and execute business plans; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; volatility in and/or degradation of market and industry conditions; completion of pipeline capacity by competitors; disruptions due to equipment interruption or failure, including electrical shortages and power grid failures; the suspension, reduction or termination of MPC's obligations under commercial agreements; the ability to successfully implement growth strategies, whether through organic growth or acquisitions; state and federal environmental, economic, health and safety, energy and other policies and regulations; other risk factors inherent to MPLX s industry; and the factors set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC. In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here, in MPC s Form 10-K or in MPLX s Form 10-K could also have material adverse effects on results. Other Information EBITDA, Adjusted EBITDA, Segment EBITDA, free cash flow and distributable cash flow are non-gaap financial measures provided in this presentation. EBITDA, Adjusted EBITDA, Segment EBITDA, free cash flow and distributable cash flow reconciliations to the nearest GAAP financial measure are included in the Appendix to this presentation. EBITDA, Adjusted EBITDA, Segment EBITDA, free cash flow and distributable cash flow are not defined by GAAP and should not be considered in isolation or as an alternative to net income, net cash provided by (used in) operating activities or other financial measures prepared in accordance with GAAP. 2

3 Our Priorities for Our Investors Maintain top tier safety and environmental performance Sustain our focus on shareholder returns Balance capital returns with value-enhancing investments Grow higher valued and stable cash flow businesses Midstream/MPLX Speedway Enhance the margins in our refining operations 3

4 Demonstrating Our Corporate Values The foundation for all that we do Health and Safety Environmental Stewardship Product Stewardship Honesty and Integrity Corporate Citizenship Diversity and Inclusion 4

5 Focused Return of Capital to Shareholders 5.9x free cash flow LTM 7,000 6,000 LTM Ended 12/31/13 $MM 5,000 4,000 3,000 2,000 1,000 3,405 Free Cash Flow** $560 3,277 2,845 ~5.9x of Free Cash Flow** Dividends and share repurchases* Cash capital expenditures, acquisitions and investments Net cash provided by operations 0 * $484 MM dividends plus $2,793 MM share repurchases ** Cash flow provided by operations less cash capital expenditures, acquisitions and investments 5

6 Delivering Peer Leading Return of Capital Last twelve months Percent MPC HFC TSO PSX VLO Dividend Yield Special Dividend Yield LTM Share Repurchase/Share Yield Total Capital Return Yield: Annualized Dividend/share, plus LTM special dividends/share, plus LTM share repurchase cost/share, all divided by LTM average share price. LTM share price through September 30,

7 Performing Consistently in the Top Tier Engine behind MPC s focus on capital returns 20 Operating Income Per Barrel of Crude Throughput ** $/BBL MPC s Rank Competitor Range Companies Ranked* Sept YTD **Current companies ranked: BP, PSX, CVX, HFC, MPC, TSO, VLO, XOM **Adjusted domestic operating income per barrel of crude oil throughput Source: Company Reports 7

8 Allocating Capital in the Past Predominately focused on refining Segment Capital Expenditures* Segment EBITDA** $MM 7,000 6,000 5,000 4,000 3,000 2,000 1, : Garyville Major Expansion : Detroit Heavy Oil Upgrade Project 2013: Galveston Bay Purchase *Includes investments **Non-GAAP disclosure, see appendix for reconciliation to net income attributable to MPC $MM 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Pipeline Transportation Speedway Refining & Marketing through 2013: Invested ~$1 B in Pipeline Transportation generated ~$1.7 B EBITDA Invested ~$1.2 B in Speedway generated ~$2.8 B EBITDA Invested ~$11 B in Refining & Marketing generated $22 B EBITDA 8

9 Allocating Capital in the Future Drive growth in more stable cash flow and higher value businesses Midstream/MPLX Aggressive growth Sandpiper Pipeline Southern Access Extension Pipeline Utica Speedway Growth in existing and contiguous markets Organic growth Selective acquisitions Refining Margin enhancements Light crude processing Increase distillate yield and conversion capacity Grow export capacity 9

10 Allocating Capital to Higher Valued Businesses 4,000 3,500 3,000 2, Capital Investment Profile $MM 2,000 1,500 1, E 2015E 2016E *Excludes Galveston Bay asset acquisition Refining and Marketing, excluding Midstream Midstream Pipeline Transportation Speedway Other Garyville resid upgrade project committed Garyville resid upgrade project uncommitted 10

11 Macro Outlook 11

12 Growing Gulf Coast Export Capabilities Added new 500,000 barrel export tank at Garyville in Export Capacity 475 Low cost, high return dock expansions at Garyville and Galveston Bay in design phase Potential for 120 MBD incremental gasoline exports from Galveston Bay MBD E 2018+E 12

13 Expecting Attractive Crude Spreads MPC Outlook Brent/WTI Spread $7-$12/BBL, wider at times LLS/WTI Spread $5-$10/BBL, transportation/quality based Brent/LLS North Dakota Light Canadian Heavy Differentials Differentials $3-$5/BBL, domestic light sweet crude surplus Competes with WTI and LLS, prices accordingly Attractive, but narrowing with new pipelines and coker capacity Volatile, extreme at times and impossible to predict 13

14 Growth Opportunities 14

15 Increasing Midstream Growth Investments 1,200 1,000 Midstream Infrastructure* Condensate Splitters 800 $MM E 2015E 2016E *Includes MPLX spend, midstream investments included in the R&M segment, Southern Access Extension Pipeline and Sandpiper Pipeline equity investment. Excludes maintenance capital. 15

16 Investing in Significant Growth Projects North Dakota System (Sandpiper) Logistics equity opportunity MPC Length, size: 610 Mile, 24 /30 + North Dakota Classic System and Bakken Pipeline U.S. Capacity: 580 MBD In-Service: 1Q 2016 MPC Investment: $1.0 B - $1.2 B MPC Equity: 27% - 30% Future potential drop to MPLX Canadian Bakken Superior, WI Bakken Pipeline U.S. Cromer Trenton 145 MBD Beaver Lodge 210 MBD 225 MBD Sandpiper North Dakota Classic Bakken Pipeline U.S. 60 MBD Clearbrook, MN Minnesota Refineries Superior, WI Patoka, IL Flanagan, IL SAX Source: Enbridge 16

17 Investing in Significant Growth Projects Southern Access Extension (SAX) Logistics equity opportunity MPC Length, size: 165 Mile, 24 Capacity: 300 MBD In-Service: 2Q 2015 MPC Investment: ~$250 MM MPC Equity: 35% Future potential drop to MPLX Canadian Bakken Superior, WI SAX Patoka, IL Flanagan, IL Source: Enbridge 17

18 Developing a Comprehensive Utica System Proposed MPLX Cornerstone Pipeline investment $140 MM Capacity 25+ MBD Timing Late 2016 $20 MM EBITDA Lima To Toledo, Detroit, Chicago and Canada Ohio MPC Refinery Terminal Facilities Utica Gas Processing Facilities Canton Youngstown M3, Leesville M3, Scio MarkWest, Cadiz MPLX Products Pipeline MPC Crude Pipeline Proposed Cornerstone Pipeline Future Build-out Pa. Midland Wellsville Steubenville 18

19 Current Retained Midstream EBITDA of ~$800 MM Additional Midstream Assets Retained by MPC Pipelines More than 5,000 miles of additional crude and products pipelines Owns, leases or has an ownership interest in these pipelines 44% of MPLX Pipe Line Holdings LP Marine 191 inland barges; 4.6 MMBBL capacity 15 inland towboats Terminals 65 light product; 21.5 MMBBL storage; 200 loading lanes 19 asphalt; 4.3 MMBBL storage; 68 loading lanes Railcars 27 owned and 1,944 leased 694 general service; 1,041 high pressure; 236 open-top hoppers Refinery 58 MMBBL storage 24 rail loading racks and 23 truck loading racks 7 owned and 12 non-owned docks 2012 throughput of 75 MBD for load racks and 500 MBD for docks 19

20 MPLX Summary MPLX will be MPC s primary midstream growth vehicle Large portfolio of fee-based growth projects that will be immediately accretive to distributable cash flow Clear line of sight to MPC midstream asset portfolio to support growth Pursuing numerous projects to continue to grow portfolio Committed to 15-20% annual distribution growth rate for the next several years 20

21 Growing More Predictable Merchandise Margin Speedway 3,200 Total Light Product Volume and Margin 600 3,200 Total Merchandise Sales and Margin 1,000 MM Gallons 3,000 2,800 2, $MM Margin $MM Sales 3,000 2,800 2, $MM Margin 2, Volume Margin 300 2, Sales Margin 600 Total Gross Margin Contribution Total Gross Margin Mix $MM Margin 1,500 1, ,103 1,194 1, Light Product Merchandise Light Product 35% Merchandise 65% Average 21

22 Executing Significant Organic Growth Opportunities Speedway $MM Capex # of Stores Average E 2015E 2016E Store Construction Acquisitions All Other Average E 2015E 2016E New and Rebuild Projects Acquisitions 22

23 Growing Cash Flow Through All Cycles Speedway $MM Segment EBITDA* E 2015E 2016E *Non-GAAP disclosure, see appendix for reconciliation to Speedway segment income from operations 23

24 Enhance Refining Margins 24

25 Increasing Light Sweet Crude and Condensate Capacity Condensate splitters Canton: 25 MBD 4Q 2014 completion Catlettsburg: 35 MBD 2Q 2015 completion $250 MM >30% ROI for each project Light crude processing Robinson: +30 MBD light crude $160 MM ~60% ROI, 2016 completion Condensate Processing Opportunity Ultra- New Light Naphtha to Gasoline Blending Sweet Fractionator Heavy Naphtha to Reforming Condensate Distillates to Hydrotreating Heavier Components Conventional Existing To Downstream Crude Crude Unit Process Units 25

26 Leveraging Existing Capacity to Run Light Sweet Crude Reformer capacity captures full value of light crude processing Additional value added through aromatics production MBD Percent of Crude Capacity U.S. Aromatics Capacity Reforming Capacity MPC Midwest MPC USGC Source: 2013 Oil & Gas Journal Industry Average Source: Argus Dewitt 26

27 Capitalizing on Global Growth in Diesel Demand Hydrocracker expansions/revamps Garyville +25 MBD ULSD in $225 MM ~45% ROI Galveston Bay +9 MBD ULSD in 2015 $18 MM ~70% ROI Robinson +5 MBD ULSD in 2015 $77 MM ~20% ROI Percent of Crude Capacity MBD Distillate Production E 2015E 2016E Distillate Production E 2015E 2016E 27

28 Evaluating Garyville Resid Hydrocracker Project Conversion opportunity - leverages favorable market dynamics $130 MM sanctioned for front end engineering and design Increases ULSD production by 28 MBD and decreases gas oil purchases Converts low value resid to ULSD using hydrogen produced from low cost natural gas 20-25% ROI $0.8 - $1.0 B EBITDA $2.2 - $2.5 B investment, 2018 start-up 28

29 2014 Value Drivers Top tier safety and environmental performance Capital return to shareholders Strong and growing dividend Share repurchase program 2014 $2.4 B capital investments Growth of Midstream/MPLX Speedway growth Increasing light crude processing and export capabilities Enhancing margins in our refining operations 29

30 Appendix 30

31 Fully Integrated Downstream System Marketing Area Refineries Connecting Pipelines Light Product Terminals Asphalt Terminals Water Terminals Tank Farms Butane Cavern Refining and Marketing Seven-plant refining system with ~1.7 MMBPCD capacity One of the largest wholesale suppliers in our market area One of the largest producers of asphalt in the U.S. ~5,200 Marathon Brand retail outlets across 18 states ~1,000 retail outlet contract assignments through jobbers primarily in Fla., Tenn., Miss. and Ala. Owns/operates 65 light product terminals and 19 asphalt terminals, while utilizing third-party terminals at 61 light product and 10 asphalt locations 15 inland waterway towboats with 177 owned barges and 14 leased barges, ~1,970 owned/leased railcars, 146 owned transport trucks Speedway (Retail) ~1,480 locations in nine Midwestern states Fourth largest U.S. owned/operated c-store chain ~2.4 million customer transactions on a daily basis Pipeline Transportation Owns, leases or has interest in ~8,300 miles of pipelines One of the largest petroleum pipeline companies in U.S. Part ownership in non-operated pipelines includes LOOP, Explorer, LOCAP, Maumee and Wolverine As of December 31, 2013 Barge Dock 31

32 Generating Significant Cash Flow Through All Cycles Pro forma EBITDA adjusted for current configuration 8,000 Pro forma EBITDA 7,000 6,000 5,000 $MM 4,000 3,000 2,000 1, thru 2012 Mid Cycle Pipeline Transportation Depr. & Amort. less corporate expense GME Galveston Bay Speedway Refining and Marketing DHOUP 32

33 Sustaining Core Liquidity Needs Minimum cash balance of $500 MM - $1.5 B Requirements Ongoing Operating Cash Flow Requirements Maintenance/Sustaining Capital Interest Payments Dividend Payments Contingent Calls on Corporate Liquidity - Probability Adjusted Contingent and Uncommitted Letters of Credit MPC Credit Shock and Impact on Unsecured Lines (Crude Purchases) Major Operating Upset Working Capital Shock ~$4,200 - $5,200 MM Reduced by - Cash Flow from Operations Under Stressed Scenario Liquidity Sources Committed Facilities MPC Revolving Credit Facility $2,500 Trade Receivables Facility $1,300 $3,800 MM Targeted Cash and Near-Cash Equivalents $500 - $1,500 MM 33

34 Sustaining Capital Returns Since Spin 6,000 5,000 Cumulative Return of Capital Since July 1, 2011 $5.2 B 4,000 $MM 3,000 2,000 1,000 0 Q Q Q Q Q Q Q Q Q Q Dividends Share repurchases 34

35 Growing Global Product Demand Distillate and gasoline demand continues to rise Fuel oil continues to be phased out due to tightening sulfur specs MMBD Other Fuel Oil Distillate 2012 Actual Forecast Compounded Annual Growth Rates 2025 vs % -2.4% +1.2% 20 Gasoline +1.1% Other consists of refinery gas, liquefied petroleum gas (LPG), solvents, petroleum coke, lubricants, wax, and other refined products and refinery fuel Sources: BP Statistical Review of World Energy, MPC 35

36 Growing U.S. Distillate Demand Overall U.S. demand remains flat Distillate demand growth outpaces other products Gasoline will be constrained by CAFE standards and biofuels penetration Residual fuel demand continues to fall MMBD Actual Forecast Gasoline Gasoline Ex Ethanol Distillate Jet Fuel Resid Compounded Annual Growth Rates 2025 vs % -0.7% +1.8% +0.7% -2.9% Sources: DOE/EIA, MPC 36

37 Shuttering Vulnerable Refining Capacity Offsets a portion of capacity expansion MMBD to 2020 Oil Demand: (MBD) North America Net Change Expansions Vulnerable Capacity Latin America Europe Former Soviet Union Asia Middle East Africa

38 Rising North American Production 16 Actual 2012 Forecast MMBD Canada United States Sources: EIA, CAPP, MPC 38

39 Growing Crude Oil/Condensate Supply MBD MBD MBD North Dakota ,600 1,400 1,200 1, Actual Forecast Texas ,000 3,500 3,000 2,500 2,000 1,500 1, Actual Forecast Ohio Actual Forecast Canada +3,575 MBD Permian +620 MBD Bakken +840 MBD Eagle Ford +690 MBD Total Growth ,860 MBD Utica +135 MBD Sources: EIA, CAPP, MPC MPC Refinery 39

40 MPC Refining Capacity in Advantaged Regions 100% in PADDs II and III 100% Canadian Bakken Utica 80% 60% PADD V PADD IV PADD II 40% PADD I 20% PADD III 0% MPC VLO HFC PSX TSO PADD I II PADD III PADD I III PADD PADD IV IV PADD PADD V V Permian Basin Eagle Ford Gulf of Mexico Canadian Sources: 2013 Oil and Gas Journal, MPC as of February 1,

41 MPC Refinery Capacity BPCD NCI* Garyville 522, Galveston Bay 451, Catlettsburg 242, Robinson 212, Detroit 123, Texas City 84, Canton 80, Total 1,714, ** The Nelson Complexity Index is a construction cost-based measurement used to describe the investment cost of a refinery in terms of the process operations being conducted. It is basically the ratio of the process investment downstream of the crude unit to the investment of the crude unit itself. This index has many limitations as an indicator of value and is not necessarily a useful tool in predicting profitability. There is no consideration for operating, maintenance or energy efficiencies and no consideration of non-process assets such as tanks, docks, etc. Likewise it does not consider the ability to take advantage of market related feedstock opportunities. *Nelson Complexity Index calculated per Oil & Gas Journal NCI Formula **Weighted Average NCI Source: MPC data as reported in the Oil & Gas Journal effective December 31,

42 Balance in Refining Network Canton (Ohio) 80,000 Catlettsburg (Ky.) 242,000 Detroit (Mich.) 123,000 Robinson (Ill.) 212,000 Midwest Capacity 657,000 BPCD Galveston Bay (Texas) 451,000 Texas City (Texas) 84,000 Garyville (La.) 522,000 Total 1,714,000 Texas Capacity 535,000 BPCD Louisiana Capacity 522,000 BPCD Source: MPC data as reported in the Oil & Gas Journal effective December 31,

43 U.S./Canada Key Existing and Planned Pipelines Burnaby Trans Mountain Edmonton Hardisty Anacortes Regina Cromer MBPD Pipeline Estimated Completion Clearbrook Superior Sarnia Montreal Portland 540 Keystone Current 215 Ozark Current 170 Platte Current 190 Spearhead Current Seaway Phase 1 Seaway Phase 2 Seaway Phase 3 Ho-Ho Reversal 1 Ho-Ho Reversal 2 Current Current 2H 2014 Current Current 700 Keystone Gulf Coast Current 600 Flanagan South Mid Line 9 2H 2014 TBD SAX Early ETP Sandpiper Keystone XL 1H ,100 Energy East 2017 Sources: Publicly available Information, MPC Estimates Casper Steele City Flanagan South Cushing Seaway Houston Freeport SAX Flanagan Ho-Ho Chicago Patoka St James Houma Mustang Wood River MPC Refineries Keystone Ho-Ho Reversal Keystone GC Planned Seaway Expansion Planned Flanagan South Planned Line 9 Planned SAX Planned ETP Planned Sandpiper Planned Keystone XL Planned Energy East 43

44 Compelling Advantage for Pipeline and Marine Canadian $10-12 Bakken $4 $15-16 $12-14 $5-6 $5 $14-16 Chicago, IL $2 $6-7 $13-15 Patoka, IL $5 WTI Cushing, OK Legend Rail Pipeline Marine $10 Houston, TX $2 St. James, LA LLS All costs shown as $/BBL Pipeline costs exclude any storage or transfer fees and line loss Sources: MPC, publicly available information 44

45 MPC Creating Crude/Condensate Advantage Canada +3,575 MBD Bakken +840 MBD Cornerstone Pipeline Condensate Splitter Truck Unload Expansion Sandpiper Southern Access Extension Patoka, IL Utica +135 MBD Wellsville Barge Condensate Splitter Permian +620 MBD Eagle Ford +690 MBD Robinson Light Crude Enhancements Connectivity Enhancements MPC Refinery Production volumes are 2025 estimates vs actual Sources: MPC, EIA, CAPP Additional Barging 45

46 Garyville Resid Hydrocracker Project Increase production of ULSD and refinery intermediates Feeds MBPD Vacuum Resid 63 FCC Slurry 7 Hydrogen (mmscfd) 110 Products MBPD LPG 2 Naphtha 7 ULSD 23 Gas Oil 22 Unconverted Resid 23 Hydrogen Slurry Vacuum Resid Resid EBHydrocracker LPG to Sales Naphtha to Reformer ULSD to Sales Gas oil to FCC Unconverted Resid to Coker 46

47 Increasing Throughputs and Lowering Costs Galveston Bay s first year Excellent HES record Higher refinery throughputs and lower operating costs Focused on reliability and yield improvements >$38 MM margin improvements captured Implementing MPC s Refining Standards 47

48 Processing More Price Advantaged Crude Oil Galveston Bay s first year Eliminated foreign sweets and increased Canadian Heavy imports North American crudes increased from 63% to 85% Permian Basin Longhorn BridgeTex Permian Express Kilgore Eagle Ford Enterprise Barge Canadian/ Bakken Galveston Bay Seaway Keystone XL Various Pipelines Tanker Foreign Gulf of Mexico 48

49 Increasing Profitability Galveston Bay: significant and low cost opportunities More than $110 MM of synergies in 2013 Synergy projects Building inter-refinery connections to Texas City refinery Expanding dock capacity and flexibility Expanding crude sources Process optimization Increase aromatics production Improve resid processing Improve light ends recovery $MM $MM Annual Projected Synergies E 2015E 2016E Original Estimate Current Estimate Projected Synergy Capital E 2015E 2016E Original Estimate Current Estimate 49

50 Galveston Bay Sustaining expenditures trending lower 1, $MM E E 2014E 2015E 2015E 2016E 2016E Original Capital Original Major Maintenance Current Capital Current Major Maintenance Note: Excludes synergy and other value accretive investments, excludes Tier 3 investments. Major Maintenance includes turnarounds and other large related maintenance expenditures. 50

51 Galveston Bay Long-term opportunities Revamp crude and vacuum units Optimize for future crude availability Improve distillate recovery Add hydrotreating capacity Move to 100% ULSD Evaluate gas oil hydrocracker options Idle the smallest and oldest FCC Increase ULSD yields Expand export capabilities 51

52 2014 Significant Capital Projects Sandpiper investment Southern Access Extension investment Utica Shale projects Condensate splitters Utica system Speedway expansion Robinson hydrocracker revamp Garyville resid hydrotreater project engineering Garyville gasoline and diesel export 52

53 Capital Expenditures & Investments ($MM) 2014 MPC Budget Refining & Marketing (R&M) 864 Midstream included in R&M 348 Speedway 327 Pipeline Transportation* 760 Corporate and Other 133 Total Capital Expenditures & Investments 2,432 *Including MPLX (100% basis) Note: Excludes capitalized interest ($MM) 2014 MPLX Budget (100% basis) Growth 113 Maintenance 35 Total Capital Expenditures 148 Note: Excludes capitalized interest 53

54 Annual Price and Margin Sensitivities $ Millions (After Tax) LLS Crack Spread* Sensitivity ~$450 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$200 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$85 (per $1.00/barrel change) Natural Gas Price Sensitivity ~125 (per $1.00/MMbtu change in Henry Hub) *Weighted 38% Chicago and 62% USGC LLS crack spreads and assumes all other differentials and pricing relationships remain unchanged **Light Louisiana Sweet (prompt) - [Delivered cost of sour crudes: Arab Light + Kuwait + Maya + Western Canadian Select + Mars] ***Assumes 20% of crude throughput volumes are WTI-based domestic crudes 54

55 MPLX Industry Leading MLP $50 Focus on Fee-Based Businesses $45 Unit Price Pursue Organic Growth Opportunities $40 $35 Grow Through Acquisitions and Drop-downs $30 $25 IPO Maintain Safe and Reliable Operations $20 10/25/12 11/25/12 12/25/12 01/25/13 02/25/13 03/25/13 04/25/13 05/25/13 06/25/13 07/25/13 08/25/13 09/25/13 10/25/13 11/25/13 12/25/13 01/25/14 Source: Thomson Reuters 55

56 MPLX and MPC are Aligned 44.0% limited partner interest 2.0% GP interest MPLX Organizational Structure Marathon Petroleum Corporation and Affiliates (NYSE: MPC) 100.0% ownership interest MPLX GP LLC (our General Partner) 100.0% ownership interest MPLX Operations LLC 56.0% GP interest 71.6% LP interest MPLX LP (NYSE: MPLX) r (the Partnership ) Public 26.4% LP interest 100.0% ownership interest MPC views MPLX as integral to its operations and is aligned with its success and incentivized to grow MPLX MPLX assets consist of a 56% interest in Pipe Line Holdings as well as 100% ownership in the Neal, W.Va., Butane Cavern MPC retains the remaining 44% interest in Pipe Line Holdings 100.0% ownership interest MPLX Pipe Line Holdings LP ( Pipe Line Holdings ) 100.0% ownership interest MPLX Terminal and Storage LLC MPC also owns 71.6% LP interest and 100.0% of MPLX s GP interest and IDRs Marathon Pipe Line LLC ( MPL ) Ohio River Pipe Line LLC ( ORPL ) 56

57 MPLX Distribution Growth Annual distribution growth is targeted at 15-20% for the next several years MPLX could enter the 50% high IDR tier in ~$700 million to ~$1.2 billion of capital investment required to hit targeted distribution growth Acquisitions Drop- Downs Organic Growth Additional EBITDA required for target distribution growth ~$20-$35 million ~$25-$50 million ~$30-$75 million 57

58 Investing in Significant Growth Projects ~$2.2 B investment with potential annual EBITDA of up to $300 MM MPC Projects Timing Investment $MM North Dakota Pipelines Equity Option 2016 $1,200 Condensate Splitters $250 SAX Equity Option 2015 $250 Wellsville Truck to Barge Operation 2013 $30 Other $220 Total $1,950 MPLX Projects Timing Investment $MM Cornerstone Pipeline (Utica Shale) 2016 $140 Robinson to Mt. Vernon $70 Other $75 Total $285 58

59 Leveraging Existing MPC Assets Utica Shale Strategy Expand refinery processing capacity to leverage geographic advantage Condensate splitters at Canton and Catlettsburg Increases total crude plus condensate processing capacity to 60 MBD from ~25 MBD Phased infrastructure investment Truck Barge Pipeline Develop connectivity Canton Catlettsburg Ohio River system to Robinson and USGC Regional refining markets Lima, Toledo, Detroit Projects $MM Condensate Splitters MPC 250 Cornerstone Pipeline MPLX 140 Two Rivers Pipeline to Robinson MPLX 70 Wellsville Truck to Barge Operation MPC 30 Other * MPC/MPLX 150 Total 640 * Other includes: Barges, Moreland Pipeline Injection Station, Canton Crude Truck Unload & Crude Oil Trucks 59

60 Drop-down Strategy Considerations MPC created MPLX to grow midstream business and create a funding mechanism for strategic opportunities MPLX investors highly value a consistent, long-term growth strategy Ratable drops maximize value creation and retain flexibility for MPC Committed to 15-20% annual distribution growth rate for the next several years Larger drops will be considered if they meet strategic need MPLX is establishing an optimized capital structure Preparing MPC retained assets to be dropped, including tax considerations 60

61 Outlook for Continued Organic Growth MPLX 2014 Adjusted EBITDA* ($MM, except where noted) 2014E $MM 120 Min Max 100 Adjusted EBITDA* E DCF* Note: 2014E outlook excludes likely drop-down transaction 120 Distributable Cash Flow* (DCF) MPLX 2014E Capital (100% basis) $148 MM $MM *Attributable to MPLX unitholders. Non-GAAP disclosure, see appendix for reconciliation to net income attributable to MPLX E 61

62 MPLX Pipeline Throughput Agreements Initial MPC Min MPC Est. 12 Mo. Ended 12/31/13 2 Term Diameter Commitment 3 Throughput 4 Weighted Average MPC Min. Asset (Years) (Inches) (MBPD) (MBPD) Tariff ($ / BBL) Revenue ($MM) Crude Systems Patoka to Lima 10 20" / 22" $0.52 $7.6 Catlettsburg and Robinson 10 20" / 24" / 20" $0.74 $101.4 Detroit 10 16" / 16" $0.23 $12.8 Wood River to Patoka 5 22" / 12" $0.20 $10.5 Wood River Barge Dock $1.32 $19.2 Total $151.5 Products Systems Garyville to Zachary 10 20" $0.55 $59.8 Zachary Connect 10 36" $0.04 $1.3 Texas City to Pasadena 10 16" $0.27 $7.9 Pasadena Connect 10 30" / 36" $0.07 $1.5 Ohio River Pipe Line (ORPL) 10 6" / 8" / 10" / 14" $1.25 $58.2 Robinson 10 10" / 12" / 16" $0.65 $49.9 Louisville Airport -NA- 8" / 6" -NA- -NA- -NA- -NA- Total $178.6 Initial MPC Min MPC Est. 12 Mo. Ended 12/31/13 2 Term Commitment Capacity Leased Weighted Average MPC Min. Asset (Years) (MBBLS) (MBBLS) Fees ($ / BBL/month) Revenue ($MM) Agreements Neal, W.Va. Butane Storage Cavern 10 1,000 -NA- $1.25 $15.0 Tank Farms¹ 3 3,293 3,293 $0.48 $19.0 Total -- 4,293 3, $34.0 Note: 1 Tank Farms include the Patoka, Wood River, and Martinsville, IL, and Lebanon, IN tank farms 2 From Prospectus dated October 25, In light equivalent barrels for crude systems 4 In physical barrels 62

63 MPLX Deficiency Payment Effect Example to be used for illustration purposes only ($MM) 4Q Q Q Q Q Q Q 2014 Quarterly Deficiency payment Use or expiration of credit (on or before) Cumulative Deferred Revenue Distributable Cash Flow Yes Yes Yes Yes No No No Adjusted EBITDA No No No No Yes Yes Yes 63

64 EBITDA Reconciliation to Net Income Attributable to MPC ($MM) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net income attributable to MPC 2,262 1, , , Less: Net interest and other financial income (costs) Add: Net income attributable to noncontrolling interests (26) (22) (17) (25) (45) (48) (45) (47) (39) Add: Provision for income taxes 1, , Add: Total segment depreciation and amortization Add: Items not allocated to segments 147 (11) (76) Total Segment EBITDA 3,990 2,448 1,506 2,188 4,934 1,259 1,713 2,059 1,565 1,504 1, ,426 By Segment Refi ning & Ma rketing Segment EBITDA 3,413 1, ,539 4,309 1,128 1,516 1,889 1,369 1,341 1, ,248 Speedway Segment EBITDA Pi peline Tra nsportation Segment EBITDA Total Segment EBITDA 3,990 2,448 1,506 2,188 4,934 1,259 1,713 2,059 1,565 1,504 1, ,426 Last Twelve Months Segment EBITDA 6,841 6,509 5,127 4,988 64

65 Estimated MPLX LP Adjusted EBITDA and Distributable Cash Flow Reconciliation from Net Income ($MM) E Net income Less: Net income attributable to MPC-retained interest Net income attributable to MPLX LP Plus: Net income attributable to MPC-retained interest Depreciation Provision for income taxes (0.2) 1 Non-cash equity-based compensation Net interest and other financial costs (income) Adjusted EBITDA Less: Adjusted EBITDA attributable to MPC-retained interest Adjusted EBITDA attributable to MPLX LP Plus: Increase in deferred revenue for committed volume deficiencies Less: Cash interest paid, net Income taxes paid Maintenance capital expenditures paid Used/expired volume deficiency credits Distributable cash flow attributable to MPLX LP Note: When a range of estimated EBITDA has been disclosed, we have included the EBITDA reconciliation for the mid-point of the range 65

66 Reconciliation Free Cash Flow to Net Cash Provided by (Used in) Operations ($MM) 2013 (Quarter to date) 1Q 2Q 3Q 4Q Net cash provided by (used in) operating activities 2,079 (436) 407 1,355 Additions to property, plant and equipment (195) (229) (309) (473) Acquisitions* (1,493) (22) - - Investments (5) (6) (75) (38) Free cash flow 386 (693) Last twelve months free cash flow 560 *Represents cash paid 66

67 Reconciliation Speedway Segment EBITDA to Speedway Segment Income from Operations ($MM) E 2015E 2016E Speedway Segment Income from Operations Plus: Depreciation and Amortization Speedway Segment EBITDA

68 Market Indicators Used in Project EBITDA Calculations ULSD (USGC; $/BBL) $ $ No. 6, 3.0% S Fuel Oil (USGC; $/BBL) $99.32 $94.48 LLS (St. James, LA; $/BBL) $ $ Natural Gas (Henry Hub, LA; $/MMBTU) $2.79 $