Goldman Sachs Global Energy Conference. January 8-9, 2013

Transcription

1 1 Goldman Sachs Global Energy Conference January 8-9, 2013

2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These forwardlooking statements relate to, among other things, MPC s current expectations, estimates and projections concerning MPC business and operations and the business and operations proposed to be acquired from BP, which we refer to as the BP Texas City assets. 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 company s control and are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include: our ability to successfully complete the acquisition of the BP Texas City assets, including, without limitation, the receipt of regulatory approvals and the satisfaction of other customary closing conditions; our ability to successfully integrate the BP Texas City assets into our operations; our ability to achieve fully the strategic and financial objectives related to the proposed acquisition of the BP Texas City assets, including the acquisition being accretive to our earnings; and unexpected costs or liabilities that may arise from the acquisition, ownership or operation of, the BP Texas City assets; 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; changes in governmental regulations; transportation logistics; the availability of materials and labor, delays in obtaining necessary third-party approvals, and other risks customary to construction projects; the reliability of processing units and other equipment; our ability to successfully implement growth opportunities; impacts from our repurchases of shares of MPC common stock under our stock repurchase authorization, including the timing and amounts of any common stock repurchases; other risk factors inherent to our 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, 2011 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 or in MPC s Form 10-K could also have material adverse effects on forward-looking statements. Copies of MPC s Form 10-K are available on the SEC website, at or by contacting MPC s Investor Relations Office. 2

3 MPC Investment Highlights Delivering strong financial results - investment grade credit profile Maintaining a balance between value accretive investments in the business and returning capital to shareholders Through-cycle earnings and cash flow expected to be enhanced by investments $3.9 B Garyville Major Expansion project completed in late 2009 $2.2 B Detroit Heavy Oil Upgrade Project (DHOUP) completed late 2012 Acquisition of BP s Texas City refinery and related assets expected to close early 2013 IPO of MPLX LP creates a vehicle for midstream growth and enhanced shareholder value Positive industry fundamentals MPC well positioned to capture value 3

4 MM$ Strong Profile 6,000 5,000 4,000 3,000 MPC has Strong Earnings and Cash Flow, Investment Grade Credit Profile Historical Financial Summary 3,745 4,636 4,158 4,870 Financial Policies Committed to Investment Grade profile Rating Agency S&P Moody s Current MPC Rating BBB/A-2 (Stable) Baa2/P2 (Stable) Maintain strong access to liquidity, with cash balance, 5-year revolver and access to CP markets Maintain prudent capitalization and leverage statistics throughout the refining cycle 2,000 1, ,952 1,324 1, * Capitalization $MM 9/30/12 Actual Balance Sheet Cash 3,387 Total Debt Outstanding (2) 3,349 Income from Operations * Nine mos. ended September 30, 2012 (1) Non-GAAP disclosure, see appendix for reconciliation to net income. (2) Includes amounts due within one year. (3) Based on LTM EBITDA of $4,942 MM. Non-GAAP disclosure, see appendix for reconciliation to net income. EBITDA(1) Stockholders Equity 11,467 Total Capitalization 14,816 Total Debt/LTM EBITDA (3) 0.7x Debt to Total Capital Ratio 23% Source: Company Reports Committed to Investment Grade Credit Profile 4

5 Balanced Return Executing on Commitment to Total Shareholder Return Base dividend increased 75% since July 1, 2011 $1,350 MM accelerated share repurchase programs, $650 MM remains under existing $2 B share repurchase authorization Share price increased ~89% in 2012* 2,500 2,000 Cumulative Return of Capital $1.9 B MM$ 1,500 1, * Jan 1 Dec 31, Q Q Dividends Q Q Share repurchases Q Q4 2012* * Estimated 5

6 Balanced Return 3,500 3,000 Focused on Return of Capital to Shareholders Net cash provided by operations $3,087 MM$ 2,500 2,000 1,500 Free Cash Flow** $1,590 $1,230 $360 77% of Free Cash Flow** Dividends and share repurchases* Change in cash and all other 1, $1,497 Cash capital expenditures and acquisitions 0 LTM Ended 09/30/12 * $380 MM dividends plus $850 MM share repurchase ** Cash flow provided by operations less cash capital expenditures and acquisitions 6

7 Enhancing Earnings Through Cycle Earnings - MPC vs. Competitors (Pre-Tax Adjusted Domestic Operating Income per Barrel of Crude Oil Throughput) MPC Group Range $/BBL MPC s Rank Companies Ranked* September YTD Preliminary 2 8 *Current companies ranked: BP, COP/PSX, CVX, HFC, MPC, TSO, VLO, XOM For ConocoPhillips (COP), the downstream portion of the integrated company was used pre-split, and Phillips 66 (PSX) is used post-split. Source: Company Reports 7

8 Enhancing Earnings Detroit Heavy Oil Upgrade Project Scope Increased heavy oil capacity from 20,000 BPCD to 100,000 BPCD; including difficult to process Canadian crudes 28,000 BPCD delayed Coker 36,000 BPCD Distillate Hydrotreater (DHT) Crude capacity increased ~15,000 BPCD Strategic Focus Positioned to capitalize on Canadian oil sands production Investment: $2.2 billion* project Estimated incremental annual EBITDA based on: Prices: ~$200 million 2011 Prices: ~$350 million Project completed November 2012 *Excludes capitalized interest Optimizing Feedstock Advantages 8

9 Enhancing Earnings Announced Acquisition of BP Texas City Assets Transaction Highlights 451 MBPCD (475 MBPSD) high complexity refinery, Nelson Complexity Index of 15.3 Attractive base cash purchase price of $598 million or ~ $21 per complexity BBL, $328 per capacity BBL for net refining asset purchase price Potential $700 million earnout over six year period Expected to be immediately accretive to earnings Expected to close in early 2013, subject to regulatory review and customary closing conditions Expected to be financed with cash on hand 9

10 Enhancing Earnings Announced Acquisition of BP Texas City Refinery Diversification and Balance in MPC s Refining Network Canton, OH 80,000 Catlettsburg, KY 240,000 Detroit, MI 120,000 Robinson, IL 206,000 BP Texas City, TX 451,000 MPC Texas City, TX 80,000 Garyville, LA 522,000 Total 1,699,000 Midwest Capacity 646,000 BPCD Texas Capacity 531,000 BPCD Louisiana Capacity 522,000 BPCD Source: Oil & Gas Journal 10

11 Enhancing Earnings Refinery and Cogen Refinery Terminal Announced Transaction Complements MPC s Integrated System Light Product Terminals MPC Operations Inland Water Terminal Primary Retail Assignment Region Coastal Water Terminal Connecting Pipelines Refinery 451,000 BPCD (475,000 BPSD) refinery Nelson Complexity Index: 15.3 Significant recent investments Excellent crude optionality Substantial products logistics opportunities Advantageous petrochemical configuration Cogen Facility 1040 megawatts of electrical capacity and 4.6 million lbs/hr steam Supplies power and steam to the refinery Light Product Terminals Nashville, TN Charlotte, NC Selma, NC Jacksonville, FL Pipelines More than 100 miles of NGL pipelines consisting of three intrastate systems originating at the refinery 50 MBPD gasoline shipper history on Colonial Pipeline Retail Assignments ~64 MBPD of BP brand gasoline contracts ~1,200 locations Supports strategy to grow in existing and contiguous markets and expand integrated model 11

12 Enhancing Earnings Announced BP Transaction Indicative Purchase Price Comparison TSO-Carson (8/2012) $16 MPC-BP Texas City without earnout $21 Alon-Bakersfield (6/2010) $66 PBF- Del City (6/2010) Delta-Trainer (4/2012) MPC-BP Texas City with earnout* PBF-Paulsboro (12/2010) $109 $122 $123 $151 VLO-Meraux (10/2011) VLO-Pembroke (3/2011) $218 $241 PBF-Toledo (12/2010) without earnout $290 PBF-Toledo (12/2010) with earnout** $381 $0 $100 $200 $300 $400 Price per refinery complexity *MPC-BP Texas City is based on a $148 MM net refinery purchase price and full $700 MM earnout. See appendix for calculation ** PBF-Toledo is based on a $400 MM net refinery purchase price and $125 MM earnout Sources: MPC calculations based on transaction announcements and OGJ data (barrels per calendar day) 12

13 Enhancing Earnings Announced BP Transaction Projected Synergies and Capital Investments (Millions) Projected Incremental Synergies EBITDA Projected Synergy Capital Investments $160 $160 $120 $120 $80 $80 $40 $40 $0 2013E 2014E 2015E 2016E 2017E+ $0 2013E 2014E 2015E 2016E EBITDA Synergies of ~$440 MM thru 2017, ~$130 MM annually thereafter Feedstock optimization Florida and export optimization Refinery processing opportunities Total Synergy Investments of ~$170 MM Dock upgrades Storage tank additions and connectivity 13

14 Creating Value MPLX Offering Summary Issuer Sponsor MPLX LP Marathon Petroleum Corporation Exchange / Ticker NYSE / MPLX Estimated Distribution Coverage 1.10x Expected Tax Shield 80% for the period from the IPO until December 31, 2015 Use of Net Proceeds $203 million to MPC $192 million to pre-fund certain expansion capital expenditures $10 million to MPLX for general partnership needs $33 million for underwriting discounts, financing costs and other formation costs Initial Offering Upsized Final Offering Common Units Offered (with shoe) 15.0 million (17.3 million) 17.3 million (19.9 million) Proposed Valuation Range Yield based on $1.05 annualized MQD $ $21.00 per unit 5.00% % $22.00 per unit 4.77% Offering Size (Base Offering Before Overallotment) Offering Size (After Overallotment Exercised) $285 $315 million $381 million $328 $362 million $438 million 14

15 Creating Value MPC has Created an Industry-Leading MLP MPLX s Primary Business Strategies Focus on Fee-Based Businesses Pursue Organic Growth Opportunities Grow Through Acquisitions Maintain Safe and Reliable Operations Generate stable cash flows by providing primarily fee-based midstream services to MPC and third parties Mitigate volatility in cash flows by entering into long-term transportation and storage agreements and by minimizing direct exposure to commodity prices Increase pipeline systems revenue by developing organic investment opportunities through growth in: MPC s operations Third-party activity Acquire complementary assets from third parties, within current geographic footprint, as well as new areas May also pursue acquisitions cooperatively with MPC Significant drop-down potential from MPC Provide safe, reliable and efficient services another key to stable cash flows Committed to maintaining and improving the reliability and efficiency of operations 15

16 Positive Fundamentals Significant Growth in Central Corridor of North America Canadian +1,800 MBD Total Growth ,925 MBD Bakken +475 MBD Robinson Detroit Canton Catlettsburg Utica +140 MBD Permian Basin +740 MBD Eagle Ford +770 MBD Texas City Garyville MPC Refinery Sources: CAPP and MPC Estimates Multiple Crude Oil Growth Opportunities 16

17 Positive Fundamentals U.S. Gulf Coast Offshore Imports Domestic crude oil cannot be exported, therefore domestic crude oil must be priced to back out imports Virtually all of the light sweet imports will be displaced in 2013 Other imports will be displaced as U.S. crude oil production increases Sources: DOE/EIA, MPC estimates Rising North America Crude Oil Production Backs Out Waterborne Imports 17

18 Positive Fundamentals CAPP Western Canada Crude Supply Forecast Annual Growth from ,000 7,000 MBPD Light Supply 24 Heavy Supply 184 6,000 5,000 MBPD 4,000 3,000 2,000 1, *Oil Sands Heavy includes some volumes of upgraded heavy sour crude oil and bitumen blended with diluent or upgraded crude oil. Source: Canadian Association of Petroleum Producers Growing Supply from America s Largest Trading Partner 18

19 Positive Fundamentals Midwest Refineries Opportunity North Dakota Production: ~750 MBPD Montana Canada North Dakota 2011 Year-end: 535 MBPD 2010 Year-end: 344 MBPD 2008 Year-end: 202 MBPD 2006 Year-end: 115 MBPD 2015 Production Forecast: Up to 1,200 MBPD Pipeline takeaway capacity has not kept pace with growth Sources: ND Oil & Gas Div., NDPA, MPC Estimate South Dakota Rail transportation has filled the gap Bakken Production Increasing Rapidly Current Railed Volume: ~440 MBPD Current Loading Capacity: ~700 MBPD 2013 Projected Loading Capacity: ~900 MBPD 19

20 Positive Fundamentals MPC Well Positioned to Capture Oil Sands Economics Hardisty ~$7.35/BBL Hardisty to USGC ~$5.50/BBL Hardisty to Detroit Detroit Value vs. USGC Refineries for Canadian Heavy Processing $BBL Wood River Chicago Patoka Laid-In Crude Cost 1.85 Higher Product Value 2.20* Total Advantage 4.05 Cushing ~$1.95/BBL Houston to Chicago * Includes $0.25 time value of money to ship a light product barrel from Houston to Chicago Houston Port Arthur St. James Advantaged Location Should Lead to Higher Relative Profitability 20

21 Positive Fundamentals Utica Shale Crude Oil Options Multiple Transportation Options Canton Truck, Barge, Pipeline Canton Refinery - 80 MBD Condensate Capacity: MBD Light Crude Oil Capacity: ~40 MBD Crude Oil Gathering System Wellsville Catlettsburg Refinery MBD Condensate Capacity: MBD Light Crude Oil Capacity: ~115 MBD Robinson Refinery MBD Condensate Capacity: MBD Light Crude Oil Capacity: ~100 MBD To Robinson Catlettsburg MPC Refinery MPC Terminal MPC Pipeline Barge Route 21

22 Positive Fundamentals U.S. Distillate Exports Continue to Grow U.S. Distillate Exports Total U.S. distillate exports averaged 1 MMBPD in 2012 compared to 138 MBPD in Central & South America Mexico ~ 60% of the total U. S. distillate exports were to Latin America Thousand b/d Europe Other Est. Growing regional demand and the closing of refineries in Aruba and St. Croix, Virgin Islands, and the disarray in Venezuela s refining have supported Latin American export demand from U.S. sources More than 1 MMBPD of Europe s refining capacity has closed or will be closing since This has opened up additional opportunities for U.S. exports Source: U.S. Energy Information Administration 22

23 Capturing Value MPC Well Positioned Garyville Diesel Export Success Currently selling export diesel via term deals and spot bid process Waterborne premium Product quality premium No RIN obligation MBPD Garyville Diesel Exports * * Thru September 30,

24 Capturing Value Extensive Retail Network 84 Speedway Brand Speedway Fourth largest U.S.-owned/ operated c-store chain ~1,460 stores ~2 million customers/day Located in seven states Marathon brand 259 ~1,200 BP brand locations to be acquired in early 2013 in these 4 states Independent entrepreneurs ~5,000 branded locations Located in 17 states As of 12/31/12 Industry-Leading Retail Operation 24

25 Capturing Value MPC Well Positioned Benefits of Retail Integration Ratable sales Optimized operations Refining Pipeline Terminal Biofuels blending base load Supply dislocation flexibility Reduced credit risk (Speedway) Speedway Marketing Area Light Product Terminals Refineries Inland Water Terminals Connecting Pipelines Coastal Water Terminals Fully Integrated Downstream Business 25

26 Capturing Value MPC Well Positioned - Brand Overview Consistent Growth Vehicle Light Product Sales 5, million* net new gallons in gasoline sales volume up 1.2%* Millions of Gallons 4,000 3,000 2,000 1,000 *Estimated 0 '98'99'00'01'02'03'04'05'06'07'08'09'10'11'12E 26

27 Capturing Value B Gallons MPC Well Positioned Speedway Sales and Margin 3.23 Light Product Volume Merchandise Sales (1.2) (1.2) * (Same Store % inside bars) $ Billions * (Same Store % inside bars) $ Millions Light Product Gross Margin * (Cents per gallon inside bars) Excludes Minnesota assets sold on December 1, 2010 *Through September 2012 $ Millions 1, Growing Market Share Merchandise Gross Margin * (Same Store % inside bars) 27

28 Capturing Value MPC Well Positioned - Key Strengths Quality assets Well Positioned Attractive Midwest market Access to favorable export markets Integration through logistical assets Access to Advantaged Crude Flexibility to shift between term and spot crude supply Domestic shale oil Heavy Canadian crude Location advantage Organic Growth Projects Detroit Heavy Oil Upgrade Project (DHOUP) Increasing distillate yield Investing in midstream Increasing export opportunities Strong Balance Sheet Cash Flow Diversified income and cash flow Balanced approach to capital repatriation, funding organic growth projects and selective acquisitions Balanced and Diversified Portfolio 28

29 Capturing Value Strategic Direction Complete Detroit Heavy Oil Upgrade Project Continue to optimize Garyville Pursue price-advantaged crude projects Initiate organic value-adding projects Grow Speedway and Brand sales volume Consider selective acquisitions to leverage existing portfolio Execute on strategic initiatives to return capital to shareholders Share repurchases Dividend growth Completed initial public offering of MPLX Leveraging Our Strengths to Create Shareholder Value 29

30 Capturing Value Strategic Direction Achieve top quartile total shareholder return among peers Complete acquisition of BP s Texas City refinery and related assets Optimize Detroit Heavy Oil Upgrade Project Continue to optimize Garyville Grow midstream through MPLX Initiate organic value-adding projects Grow Speedway and Brand sales volume Consider value-accretive acquisitions to leverage existing portfolio 30

31 Appendix 31

32 BP Texas City Announced Transaction Highlights Supports MPC strategy to grow in existing and contiguous markets and expand integrated model One of the largest and most complex refineries in the U.S. Well connected to crude and products markets, including exports Attractive base cash purchase price of $598 million. Equates to estimated net cash refining asset purchase price of $21 per complexity BBL, $328 per capacity BBL. Potential $700 million earnout over six year period Expected to be immediately accretive to earnings Incremental EBITDA of $700 million to $1.2 billion based on historical pricing Accretive to earnings per share by 13% to 27% based on historical pricing Potential significant economic upside from synergies and process optimization Expected to close in early 2013, subject to regulatory review and customary closing conditions Expected to be financed with cash on hand Continue to balance return of capital to shareholders while capturing incremental value through investments in the business 32

33 BP Marketing Assets and Integration Integrated acquisition includes Assignment of branded-jobber contracts representing ~1,200 BP retail sites ~64 MBPD of gasoline sales Locations primarily in FL, MS, TN and AL BP trademark to be used during transition process Strategic step in retail growth Nearly doubles Marathon s branded site count in Southeast Complementary to recent regional growth Partnership opportunity with premier Southeast jobbers Opportunity to expand relationship with existing Marathon jobbers 33

34 Announced BP Transaction Product Logistics Opportunities Flexible product placement Domestic and export opportunities Synergies with MPC s Texas City and Garyville refineries and MPC logistics Midwest Southeast Pasadena Zachary Garyville Texas City Exports to Mexico/SA/Europe Florida 34 34

35 BP Texas City Refinery & Related Assets Expected Accretive Transaction (MM unless otherwise indicated) MPC Base EBITDA - analyst 2013 consensus estimates (1) $ 4,759 $ 4,759 Assets to be acquired EBITDA using pricing (2)(4) 1,200 Assets to be acquired EBITDA using 2011 pricing (2)(5) 700 Total EBITDA $ 5,959 $ 5,459 Improvement 25% 15% MPC Base Net Income - analyst 2013 consensus estimates $ 2,425 $ 2,425 Assets to be acquired Net Income using pricing (2)(4) 650 Assets to be acquired Net Income using 2011 pricing (2)(5) 325 Total Net Income $ 3,075 $ 2,750 MPC Base EPS (3) $7.11 $7.11 MPC + Assets to be acquired EPS (3) $9.02 $8.06 Accretion 27% 13% (1) Consensus estimates as of October 4, 2012 (2) Based on MPC 2013 operating estimates and applicable historical price information (3) Assumes 341 million shares outstanding (4) Argus Sour Crude Price Index (ASCI) crack spread of $15.10 used as pricing metric for (5) ASCI crack spread of $11.57 used as pricing metric for

36 Announced BP Transaction Cash Purchase Price Including Full Earnout Base cash purchase price (millions) $ 598 Full earnout 700 Total purchase price with full earnout $ 1,298 Less: Cogen facility (290) Less: Terminals and other logistics assets (120) Less: Retail marketing (40) Estimated Net Refining Asset Price $ 848 (Excludes ~$1,200 MM initial inventory purchase) EBITDA multiple 1.1x - 1.9x Capacity (MBPCD) 451 Nelson Complexity Index 15.3 Estimated Price per Capacity BBL $ 1,880 Estimated Price per Complexity BBL $

37 BP Texas City Refinery Projected Sustaining Capital MM$ E 2014E 2015E 2016E 2017E 2018E 2019E Refinery All Other * Excludes synergy and other value accretive investments 37

38 MPC Key Strengths Crude Oil Refining Capacity Balanced Operations Adjusted for Pending BP Texas City Acquisition Crude Slate 38% 62% PADD II PADD III 52% 48% Sour Crude Sweet Crude 1/1/12* YTD Sept 2012* Assured Sales of Gasoline Production (Speedway + Brand + Wholesale Contract Sales) ~58% ~42% Assured Sales Wholesale and Other Sales *Includes MPC estimate for BP Texas City refinery and related assets YTD Sept 2012* Balanced and Diversified Portfolio 38

39 MPC Relative Refining Position Adjusted for Pending BP Texas City Acquisition 3,000 2,000 1,000 U.S. Crude Refining Capacity (1) # of U.S. Refineries (1) (MBCD) (#) 2,097 1,950 1,807 1, Valero Exxon Phillips MPC Shell BP Chevron Citgo Tesoro HFC 0 Valero Phillips Exxon Tesoro MPC Shell BP Chevron HFC Citgo (MBCD) Average Crude Capacity of (NCI) Nelson Complexity Index (1) U.S. Refineries (1) Exxon Citgo MPC BP Chevron Valero Phillips Shell (1) MPC data as of 1/1/2013 plus Galveston Bay acquisition. Other company data as reported in the O&GJ 2012 Worldwide Refining Survey, published on 12/3/2012. Owned interest of joint ventures are included in company statistics: Phillips includes 50% WRB, Exxon includes 50% Chalmette, BP includes 50% BP-Husky Toledo, Shell includes 50% Deer Park and Motiva. HollyFrontier data based on company presentations. Tesoro HFC 5.0 Chevron Exxon HFC Citgo MPC Phillips Valero Shell BP Tesoro Majors and Integrateds MPC Independent Refiners 39

40 MPLX Summary of Key Investment Highlights Robust Growth Opportunities Attractive organic growth prospects augmented with tariff and volume increases Potential for significant growth through acquisitions alongside, and/or from, MPC; MPC has a very substantial portfolio of logistics assets, including its retained 49% interest in MPLX Pipe Line Holdings LP Strategic Relationship with MPC MPLX's assets are highly integral to MPC's refining and marketing network MPC provides MPLX with significant growth opportunities and a stable base of cash flows Stable and Predictable Cash Flows MPLX is expected to generate stable and predictable cash flows supported by a combination of long-term transportation agreements (linked to FERC based tariff rates) and storage agreements High-Quality, Well-Maintained Asset Base Majority owner and operator of one of the largest networks of pipeline systems in the U.S. based on total annual volumes delivered Assets are well maintained through focused maintenance and capex program Strategically Located Assets Primarily located in the Midwest and U.S. Gulf Coast, which are near emerging shale plays such as the Marcellus, Utica, New Albany, Antrim and Illinois Basin Financial Flexibility Attractive coverage ratio, combined with ample liquidity and no initial leverage, provides a strong foundation to execute MPLX's growth strategy Experienced Management Team Includes many of MPC s most senior officers, who average over 25 years of experience in the energy industry and operational experience with our assets 40

41 MPC and MPLX are Aligned 49.0% limited partner interest 2.0% GP interest MPLX Organizational Structure 100.0% ownership interest 100.0% ownership interest Marathon Pipe Line LLC ( MPL ) Marathon Petroleum Corporation and Affiliates (NYSE: MPC) MPLX GP LLC (our General Partner) 100.0% ownership interest MPLX Operations LLC 51.0% GP interest 71.6% LP interest MPLX LP (NYSE: MPLX) r (the Partnership ) MPLX Pipe Line Holdings LP ( Pipe Line Holdings ) Public 26.4% LP interest 100.0% ownership interest Ohio River Pipe Line LLC ( ORPL ) 100.0% ownership interest MPLX Terminal and Storage LLC MPC views MPLX as integral to its operations and is aligned with its success and incentivized to grow MPLX Initial MPLX assets consist of a 51% interest in Pipe Line Holdings as well as 100% ownership in the Neal, W.Va. Butane Cavern MPC retains the remaining 49% interest in Pipe Line Holdings MPC also owns 71.6% LP interest and 100.0% of MPLX s GP interest and IDRs 41

42 MPLX s Assets are Integral to MPC Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL) comprise one of the largest networks of pipeline systems in the U.S. based on total volume delivered 962 miles of common carrier crude oil pipelines 1,819 miles of common carrier products pipelines Inclusive of 153 miles of longterm leased and operated pipelines The ~1.0 million barrel Neal, W.Va. butane storage cavern adjacent to MPC s Catlettsburg refinery is wholly owned and operated by MPLX 42

43 MPC Relationship Provides Robust Growth Opportunities for MPLX Logistics infrastructure is extremely important to MPC's success MPC intends to use MPLX as the primary growth vehicle for its midstream logistics business MPLX can pursue acquisitions directly from MPC MPLX can pursue third-party acquisitions independently and/or in cooperation with MPC Midstream Assets Owned by MPC Remaining 49% interest in MPLX's pipeline assets Over 5,000 miles of additional crude and products pipelines Owns, leases or has an ownership interest in these pipelines Owned and operated terminals: 62 light product and 21 asphalt / heavy oil 261 transport loading racks More than 120 owned transport trucks More than 1,900 owned or leased rail cars One of the largest private inland bulk liquid barge fleets in the U.S. consisting of 15 owned inland waterway tow boats, and 167 owned and 14 leased barges 43

44 MPLX Stable and Predictable Cash Flows MPLX s assets consist of fee-based pipeline systems and storage assets MPC has historically accounted for 85%+ of the volumes shipped on MPLX s pipelines MPC has entered into multiple long-term transportation and storage agreements with MPLX Terms of up to 10 years Pipeline tariffs linked to FERC-based rates Indexed storage fees 2013 EBITDA estimate represents a ~59% increase over 2011 pro forma EBITDA Increase underpinned by FERC-based tariffs and volume growth Capital projects pre-funded and supported by MPC Notes: Tank Storage 1 Estimate for the twelve months ending December 31, 2013 Operating and Mgmt. Fees 2 Includes revenues generated under Transportation and Storage agreements with MPC 3 Volumes shipped under joint tariff agreements are accounted for as third-party for GAAP purposes, but represent MPC barrels shipped 16% Revenue Customer Mix 1 11% $81 MM $55 MM MPC Committed² ³ Third-Party $364 MM MPC = 89% 73% MPC Additional³ Revenue Product / Asset Mix 1 4% 3% 4% Crude Transportation $232 MM $216 MM 46% 43% Products Transportation Cavern Storage 44

45 MPLX: Ideal Assets for an MLP Historical crude and product volumes have been extremely stable with low variability despite material changes in the broader commodity price environment Butane cavern and storage facilities generate stable and ratable (capacity based) fees Throughput and storage agreements with MPC provide cash flow visibility and predictability 2013 total throughput is projected to be ~12.8% over 2011 pro forma throughput Crude Throughput (MBPD) Products % MPC 80% 81% 84% 81% 80% 79% % MPC 92% 91% 90% 93% 94% 95% 1,500 1,500 1, ,041 1,190 1, , ,031 1, , Est. 12 Mo. Ending 12/31/ Est. 12 Mo. Ending 12/31/13 Note: 1 Crude volumes in light equivalent barrels MPC Throughput 1 Third Party Throughput 45

46 MPLX Strategically Located Assets MPLX operates all of its assets Assets are primarily located throughout the Midwest and U.S. Gulf Coast In 2011, these regions collectively comprised ~72% and ~48% of total U.S. crude distillation capacity and finished products demand, respectively Existing capability to transport Canadian crude PADD II Refining Capacity (MBPCD) 1 Marathon Petroleum Corporation 646 BP Phillips Flint Hills Resources (Koch) 322 Valero 287 HollyFrontier 258 ExxonMobil 238 Husky Energy Source: MPC Source: MPC, Oil & Gas Journal Notes: 1 Refiners with PADD II capacities of less than 200 MBPCD excluded from list; aggregate additional capacity of ~950 MBPCD 2 Includes 50% share of BP / Husky Toledo s total capacity 3 Includes 50% share of Wood River s total capacity MPC has the Largest Refining Capacity in PADD II 46

47 MPLX Strategically Located Assets (Continued) MPLX s assets and a large number of MPC's retained assets are in the heart of the Midwest infrastructure build-out Strategically located near emerging shale plays Marcellus, Utica, New Albany, Antrim, and Illinois Basin in Pennsylvania, Ohio, Indiana, Michigan, and Illinois MPC is currently transporting crude oil and feedstocks from the Utica play MPLX is continuing to evaluate growth opportunities in the Utica and other shale plays Bakken Williston Basin Excello-Mulky Woodford Mississippian Lime Anadarko Basin Barnett Ft. Worth Basin Western Gulf Eagle Ford Pearsall Forest City Basin Cherokee Platform Arkoma Basin Floyd- Neal Ardmore Basin Fayetteville Haynesville- Bossier Shale Plays Source: EIA Illinois Basin TX-LA-MS Salt Basin Michigan Basin Antrim New Albany Chattanooga Black Warrior Basin Current Plays Tuscaloosa Prospective Plays Basins Valley & Ridge Province Conasauga Appalachian Basin Stacked Plays Shallowest / Youngest Devonian (Ohio) Marcellus Utica Intermediate Depth / Age Deepest / Oldest MPC Refineries 47

48 MPLX High Quality, Well Maintained Asset Base MPLX continually invests in the maintenance and integrity of its assets Uses a patented integrity management program to enhance pipeline safety and reliability Top-tier reputation and active industry involvement 2013E Capex Budget¹ Certifications, Initiatives and Industry Partnerships Maintenance $32.2 MM (16% of 2013E EBITDA) (16% of 2013E EBITDA) Expansion $108.6 MM Note: 1 Capex budget represents both MPC and MPLX portions of capital budget Quality Assets and Top-tier Reputation 48

49 MPLX Operations Deliver Top Tier Safety Performance Patented integrity management program fully compliant with DOT regulations State of the art in-line assessment practices Leading control room management practices Industry leader in helping to improve Damage Prevention practices 49

50 MPLX: Strong Financial Flexibility to Manage and Grow Asset Base MPLX has no borrowings outstanding MPLX s undrawn $500 MM revolver provides significant liquidity to grow its business Uses for IPO Proceeds ($MM) Pre-fund Capex Distribution to MPC Underwriting Discounts and Structuring Fees 27.9 Credit Facility Fees and Expenses 2.5 Other IPO Expenses and Costs 3.0 General Partnership Purposes 10.0 Total Uses Capital Structure As of June 30, 2012 ($MM) Historical Pro Forma Cash and Cash Equivalents Long Term Debt¹ Revolving Credit Facility Total Equity: Net Investment - MPC 1, Common Units - Public Common Units - MPC Subordinated Units - MPC General Partner Units - MPC Total MPLX Partners' Capital MPC-retained Net Interest in Pipe Line Holdings Total Equity Investment 1, ,150.6 Total Capitalization 1, ,162.2 Note: 1 Capital leases 50

51 MPLX Conservative Coverage with Predictable and Growing Distributions Stable historical results and strong growth going forward Predictable cash flows underpinned by MPC throughput and storage agreements, as well as historical usage pattern Attractive distribution coverage post-ipo of 1.10x Cash retained after distribution will be used to manage operations and help organically grow asset base Revenue and Other Income ($MM) Capline / Maumee pipeline systems and Other items¹ PF 12 Mo. Ending Historical Predecessor 6/30/ Est. 12 Mo. Ending 12/31/13 Estimated Twelve Months Ending 12/31/2013 ($ in millions, unless otherwise noted) Adj. EBITDA $197.0 Less: Adj. EBITDA attributable to MPC's retained interest in Pipe Line Holdings 92.2 Adj. EBITDA attributable to MPLX LP $104.8 Note: 1 In connection with the IPO, reflects the elimination of activity related to two pipelines that were not contributed to MPLX, reduction in revenues associated with lower rate incentive tariffs, payments received from MPC for volume shipments below minimum committed volumes, recognition of revenues from storage agreements, and fees earned under management services and operating agreements executed with MPC Less: Net Cash Interest Paid 1.2 Income Taxes Paid 0.1 Maintenance capital expenditures 16.4 Expansion capital expenditures 55.4 Add: Offering proceeds retained to fund expansion capital expenditures 55.4 Distributable Cash Flow $87.1 Distributions to Common Units 38.8 Distributions to Subordinated Units 38.8 Distributions to GP / IDR 1.6 Total Annualized Distributions $79.2 Initial Coverage Ratio 1.10x 51

52 MPLX Adjusted EBITDA Bridge Analysis ($MM) (49.9) (13.5) (10.8) (1.3 ) (92.2) (44.5) (44.5) PF Adjustments ¹ Pro Forma 2011 Tariffs Volumes Other Revenue and Income Cost of revenues Purchases from related parties G&A Other Taxes Total Estimated MPLX (12/31/13) MPC Retained Interest Note: 1 Includes the following: elimination of activity related to minority undivided joint interests in two crude oil pipelines included in the Predecessor that were not contributed to the Partnership; other revenue which reflects adjustments due to lower incentive tariff in the pipeline transportation services agreement with MPC for shipments of volumes in excess of minimum committed volumes on the Garyville products system and certain pipelines within the ORPL system; recognition of incremental revenues under the storage services agreements and incremental fees earned under management services and operating agreements executed with MPC in connection with the initial public offering; and, G&A and employee services agreements which reflects the effect of transferring the Predecessor s employees to MPC and having employee services provided to the Partnership by MPC pursuant to an employee services agreement executed in connection with the initial public offering and incremental G&A expenses for corporate services and executive officers provided by MPC pursuant to the omnibus agreement Estimated MPLX LP (12/31/13) 52

53 MPLX Historical and Pro Forma Results As presented in the MPLX Prospectus A B C D E Year Ended December 31, Pro Forma (Dollars in millions) Six Months FY 2011 Ended 6/30/12 1 Revenues and other income: 2 Sales and other operating revenues $ 43.3 $ 49.7 $ 62.1 $ 62.1 $ Sales to related parties Net gain (loss) on disposal of assets (0.3) 5 Other income Other income - related parties Total revenues and other income Costs and expenses: 9 Cost of revenues (excludes items below) Purchases from related parties Depreciation General and administrative expenses Other taxes Total costs and expenses Income from operations Related party interest and other financial income Interest and other financial income (costs) (0.2) (0.1) Income before income taxes Provision for income taxes Net income $ $ $ Less: Net income attributable to MPC-retained interest in Pipe Line Holdings Net income attributable to MPLX LP $ 48.0 $ Adjusted EBITDA $ $ $ $ $ Adjusted EBITDA attributable to MPLX LP Cash available for distribution Cash available for distribution attributable to MPLX LP

54 MPLX Pipeline Throughput Agreements Initial MPC Min MPC Est. 12 Mo. Ended 12/31/13 Term Diameter Commitment Thoughput 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 $178.6 Initial MPC Min MPC Est. 12 Mo. Ended 12/31/13 Term Commitment Capacity Leased Weighted Average MPC Min. Asset (Years) (MBBLS) (MBBLS) Fees ($ / 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 54

55 Experienced MPLX Management Team Management team includes MPC executive officers with an average 25 years of experience with MPLX's assets Gary R. Heminger Years Experience Position at MPC Position at MPLX Industry With MPC President and Chairman of the Board and Chief Executive Officer Chief Executive Officer Garry L. Peiffer Executive VP, Corporate Planning and Investor & Government Relations Director and President Donald C. Templin Senior VP and Chief Financial Officer Director, VP and Chief Financial Officer 11 1 George P. Shaffner Senior VP, Transportation and Logistics VP and Chief Operating Officer Pamela K. M. Beall VP, Investor Relations and VP, Investor Relations Government & Public Affairs Michael G. Braddock VP and Controller VP and Controller Timothy T. Griffith VP, Finance and Treasurer VP and Treasurer 1 1 J. Michael Wilder VP, General Counsel and Secretary VP, General Counsel and Secretary Craig O. Pierson President, Marathon Pipe Line LLC VP, Operations

56 Positive Industry Trends Growing North American Production MMBD US Crude & Condensate US NGL Canada Oil Sands, Crude & Condensate Resource plays dominate U.S. output growth. Conventional production (Alaska, offshore, California, other legacy production) struggles to sustain output NGL output growth is mostly associated with wet gas shale areas U.S. liquid volume gains are concentrated in PADDs 2-4 (mid-continent) Canada oil sands account for all of its gains, concentrated in Alberta New transportation investments will be required to move production to market Source: DOE/EIA, Canadian Association of Petroleum Producers, MPC Estimates U.S. and Canadian Liquids Production Increases 45% from 2011 to

57 Eagle Ford Shale Texas City Refinery Opportunity Eagle Ford is a very light (40-50 API), sweet crude (0.2% sulfur) Currently being trucked to markets Pipelines are being built Dock facilities are in operation and continue to be built to make it a waterborne crude to capture Brent/ LLS pricing as opposed to WTI basis Crude oil production rapidly expanding Currently: 420 MBPD 2011 Year-end: 196 MBPD 2010 Year-end: 30 MBPD 2009 Year-end: 0 MBPD 2015 (projected): 880 MBPD Source: MPC Estimate Eagle Ford Production Increasing Rapidly Graph Source: EIA 57

58 U.S./Canada Key Existing and Planned Pipelines Burnaby Anacortes Trans Mountain Edmonton Hardisty Regina Cromer Clearbrook Superior Montreal Portland Sarnia MBPD Pipeline Salt Lake City Estimated Completion 540 Keystone Current 96 Pegasus Current 170 Platte Current 190 Spearhead Current Seaway Phase 1 Seaway Phase 2 Current Early Ho-Ho Reversal 1H Keystone Gulf Coast Late Gulf Coast Access Mid Keystone XL Early 2015 Casper Steele City Gulf Coast Access Cushing Seaway Houston Freeport Chicap Flanagan Ho-Ho Chicago Mustang Patoka St James Houma Wood River MPC Refineries Keystone Planned Keystone XL & GC Pegasus Spearhead Planned Seaway Expansion Planned Ho-Ho Reversal Planned Gulf Coast Access 58

59 Indicative Transportation Costs Bakken Indicative Pipeline Costs Bakken to Patoka 1 $/BBL Pipeline to Patoka 3.60 Indicative Rail Costs Bakken to U.S. East Coast 1 $/BBL Railcar Loading 1.50 Patoka *Pipeline to MPC Refineries 1.00 Total 4.60 * Up to $1.00 additional tariff to deliver to a MPC Midwest refinery Rail Transportation 9.00 Railcar Lease 3.00 Railcar Unloading 1.50 Barge Loading.75 Barge Transportation 1.00 Indicative Rail Costs Bakken to St. James 1 $/BBL Total Eagle Ford St. James Railcar Loading 1.50 Rail Transportation Railcar Lease 3.00 Indicative Shipping Costs S. Texas to U.S. East Coast $/BBL Pipeline to Houston 1.50 Railcar Unloading 1.50 Shipping Transportation 8.85 Total Total Excludes gathering and truck transportation costs (up to~ $5.25/bbl) Source: MPC Estimates based on publically available information, OPIS, and Argus Media. 59

60 Options Detroit Logistics #2 2 Enbridge #1 Enbridge Canadian crude via multiple routes Virtually all world crudes available via pipelines from USGC All gasoline production sold in regional market #3 Platte/Keystone Chicago Stockbridge Samaria Lima Detroit Wood River Patoka #4 #5 Capline Mid Valley Strategically Located for Multiple Crude Supply Routes 60

61 Attractive Midwest/PADD II Demand exceeds refining capacity in PADD II Net imported ~13% of petroleum demand into PADD II, primarily from PADD III in 2012 Enhances margin opportunities Transportation premium embedded in PADD II gasoline prices Higher refinery utilization rates Relatively leaner product stocks Access to Canadian crude Well positioned for Utica crude PADD V 60% 40% 20% 0% PADD IV 7% 21% 52% PADD II PADD III Percentage of Crude Oil Capacity by PADD 50% 48% 4% 18% PADD I PADD II PADD III PADD IV PADD V Industry Distribution Source: DOE, data as of 1/1/2012 Source: MPC Estimate Largest Midwest Exposure of All Major Refining Competitors MPC PADD I 61

62 Annual Price and Margin Sensitivities $ Millions (After Tax) LLS 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 Sensitivity ~$150 (per $0.01/gallon change) Speedway Refined Product Margin Sensitivity ~$20 (per $0.01/gallon change) Natural Gas Price Sensitivity ~$60 (per $1.00/MMbtu change in Henry Hub) *Weighted 52% Chicago and 48% 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 25% of crude throughput volumes are WTI-based domestic crudes 62

63 Refinery Capacity Adjusted for Pending BP Texas City Acquisition BPCD NCI* Garyville 522, Galveston Bay 451, Catlettsburg 240, Robinson 206, Detroit 120, Texas City 80, Canton 80, Total 1,699, ** 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 and Gas Journal NCI Formula ** Weighted Average NCI Source: MPC Data. Capacities as of January 1,

64 Speedway vs. Public Peers M Gal/Store/Month 300 Light Product Sales Public C-Store 150 Average Independent Refiners Average Casey's Couche-Tard Pantry Susser Speedway Valero Murphy Sunoco Tesoro Delek Western Refining $M/Store/Month Source: Company Reports Public C-Store Average 17.6 Light Product Margin 31.6 Independent Refiners Average 23.9 Casey's Couche-Tard Pantry Susser Speedway Valero Murphy Sunoco Tesoro Delek Western Refining #2 in Light Product Unit Sales Volume 64

65 Speedway vs. Public Peers $M/Store/Month 200 Public C-Store 150 Average Merchandise Sales Independent Refiners Average 95.4 $M/Store/Month Casey's Couche-Tard Pantry Susser Speedway Valero Murphy Sunoco Tesoro Delek Western Refining Public C-Store Average 38.7 Merchandise Margin 43.9 Independent Refiners Average Source: Company Reports Casey's Couche-Tard Pantry Susser Speedway Valero Murphy Sunoco Tesoro Delek Western Refining #1 in Merchandise Unit Sales 65

66 Reconciliation Free Cash Flow to Net Cash Provided from Operations ($MM) (Quarter to date) 4Q 1Q 2Q 3Q Net cash provided from operating activities ,833 Additions to property, plant and equipment (341) (309) (326) (331) Acquisitions - - (163) (27) Free cash flow (220) 1,475 Last twelve months free cash flow 1,590 66

67 EBITDA Reconciliation to Net Income ($MM) Q 2Q 3Q 4Q 1Q 2Q 3Q Net Income (Loss) ,133 (75) ,224 Less: Related party net interest and other financial income Less: Net interest and other financial income (costs) Add: Provision (benefit) for income taxes (14) (12) (14) (10) (15) (22) (22) (17) (26) (105) Add: Depreciation and amortization EBITDA 1,324 1,952 1,035 1,543 1, ,186 1,543 2,141 Last Twelve Months EBITDA 4,636 4,787 4,787 4,942 67

68 Market Indicators Used in Project EBITDA Calculations West Texas Intermediate crack spread Light Louisiana Sweet crack spread Arab Light crack spread Arab Medium crack spread Light Louisiana Sweet crack spread LLS to Lloyd Differential