UBS MLP Conference. January 14-15, 2014

Transcription

1 UBS MLP Conference January 14-15, 2014

2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding both MPLX and MPC. These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPLX and MPC. 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 MPLX actual results to differ materially from those in the forward-looking 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. 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). 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 MPLX s Form 10-K or in MPC s Form 10-K could also have material adverse effects on results. Other Information EBITDA, Adjusted EBITDA and distributable cash flow are non-gaap financial measures provided in this presentation. EBITDA, Adjusted EBITDA and distributable cash flow reconciliations to the nearest GAAP financial measure are included in the Appendix to this presentation. EBITDA, Adjusted EBITDA and distributable cash flow are not defined by GAAP and should not be considered in isolation or as an alternative to net income or other financial measures prepared in accordance with GAAP. 2

3 Our Priorities for Our Investors Maintain Safe and Reliable Operations Sustain Long-term Distribution Growth; 15-20% for at Least the Next Several Years $45 $40 $35 Unit Price Focus on Fee-Based Businesses $30 Pursue Organic Growth Opportunities $25 IPO Grow Through Acquisitions and Drop-downs $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 Source: Thomson Reuters 3

4 MPC Increasing Midstream Growth Investments 1,200 1,000 Midstream Infrastructure* Condensate Splitters 800 $MM E 2014E 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. 4

5 MPC 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 Clearbrook, MN Patoka, IL Flanagan, IL SAX North Dakota Classic Bakken Pipeline U.S. 60 MBD Minnesota Refineries Superior, WI Source: Enbridge 5

6 MPC 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 6

7 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 7

8 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 MPLX Cornerstone Pipeline Future Build-out Pa. Midland Wellsville Steubenville 8

9 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 9

10 MPC Current Retained Midstream EBITDA of ~$800 MM Additional Midstream Assets Retained by MPC Pipelines Over 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 10

11 MPC 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 at least 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 11

12 Outlook for Continued Organic Growth MPLX 2014 Adjusted EBITDA* ($MM, except where noted) 2013E 2014E $MM 120 Min Max Min Max 100 Adjusted EBITDA* E 2014E 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 2014E 12

13 Appendix

14 MPLX Financial Performance Adjusted EBITDA * $ in millions $26.7 $25.1 $18.2 $30.5 Distribution/Unit $/unit 4.4% Growth 4.6% Growth 3.8% Growth $ ** $ $ $ Q12 1Q13 2Q13 3Q13 $16.7 Distributable Cash Flow * $ in millions $28.0 $27.2 $31.1 4Q12 1Q13 2Q13 3Q13 Distribution Coverage 1.25x 1.37x $ x Net Income * $ in millions $17.6 $ x $21.5 4Q12 1Q13 2Q13 3Q13 4Q12 1Q13 2Q13 3Q13 *Attributable to MPLX. Adjusted EBITDA and distributable cash flow are non-gaap disclosures see appendix for reconciliation to net income attributable to MPLX **Represents Minimum Quarter Distribution (MQD) for 4Q 12, actual $ equal to MQD prorated Note: 4Q 12 is for 10/31/2012 to 12/31/2012, not a full quarter 14

15 MPLX Net Income Variance Analysis - 3Q 2013 Actual vs. 3Q 2013 Estimated per S-1 $45 $40 $ (6.7) (2.5) 39.2 (17.7) $30 Millions $25 $ $15 $10 $5 $0 3Q 2013 Estimate per S-1 Tariffs Volumes Other Revenue and Income Cost of Revenues and Related Party Purchases Other 3Q 2013 Actual MPC Retained Interest Actual 3Q 2013 Attributable to MPLX 15

16 MPLX Adjusted EBITDA and Distributable Cash Flow ($MM) Actual 3Q 2013 Estimated 3Q 2013* Adjusted EBITDA Less: Adjusted EBITDA attributable to MPC-retained interest Adjusted EBITDA attributable to MPLX LP Less: Cash interest paid, net Income taxes paid - - Maintenance capital expenditures paid Plus: Increase in deferred revenue for committed volume deficiencies Distributable cash flow attributable to MPLX LP Distribution declared Limited partners public 5.9 Limited partner MPC 16.1 General partner MPC 0.5 Total distribution declared/estimated Coverage ratio 1.38x 1.05x *Based on information in Prospectus 16

17 MPLX LP Adjusted EBITDA and Distributable Cash Flow Reconciliation to Net Income ($MM) 3Q Q Q Q 2012 * 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 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 Less: Cash interest paid, net Income taxes paid Maintenance capital expenditures paid Plus: Increase in deferred revenue for committed volume deficiencies Distributable cash flow attributable to MPLX LP *For the period 10/31/12 to 12/31/12 17

18 Estimated MPLX LP Adjusted EBITDA and Distributable Cash Flow Reconciliation from Net Income ($MM) 2013E 2014E 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 1 1 Non-cash equity-based compensation 1 1 Net interest and other financial costs (income) 1 3 Adjusted EBITDA Less: Adjusted EBITDA attributable to MPC-retained interest Adjusted EBITDA attributable to MPLX LP Less: Cash interest paid, net 1 3 Income taxes paid 1 1 Maintenance capital expenditures paid Plus: Increase/(decrease) in deferred revenue for committed volume deficiencies 14 (6) 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. 18

19 MPLX Strong Financial Flexibility to Manage and Grow Asset Base MPLX s undrawn $500 million revolver provides significant liquidity to grow its business ($MM except ratio data) As of 9/30/13 Cash and cash equivalents 86.9 Total assets 1,218.7 Long-term debt* 10.7 Total equity 1,121.8 Consolidated total debt to consolidated EBITDA ratio (covenant basis)** 0.1x *Represents a capital lease. Includes amounts due within one year **Maximum covenant ratio <= 5.0 or 5.5 during the six month period following certain acquisitions 19

20 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 20

21 MPLX Deficiency Payment Effect Example to be used for illustrative 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 21

22 Crude Oil Pipeline Systems Overview 22

23 Crude Oil Pipeline Systems Overview Crude Oil Pipeline System Diameter (Inches) Length (miles) Capacity (MBPD) 1 Initial Term (Years) MPC Min. Commitment (MBPD) 1 Patoka to Lima 20 / Catlettsburg and Robinson 20 / 24 / Detroit 16 / Wood River to Patoka 22 / Wood River Barge Dock Total , Historical Throughput (MBPD) Mo YTD 2013 MPC Third Party Total ,029 1,081 % MPC 82% 85% 83% 82% 80% 79% Notes: 1 All capacities and commitments are in light equivalent barrels 2 Increase in throughput during the period is primarily due to the Detroit, MI heavy oil upgrading and expansion project and the Romulus, MI to Detroit, MI line completion (Q4 2012) and activation of the Roxanna, IL to Patoka, IL pipeline in January Physical volumes shipped. Volumes shown for all periods exclude volumes transported on pipeline systems not contributed to MPLX LP at the initial public offering. 23

24 Patoka to Lima Crude System 76 miles of 20-inch pipeline extending from Patoka, IL to Martinsville, IL 226 miles of 22-inch pipeline extending from Martinsville to Lima, OH Includes related breakout tankage at Martinsville From MPC's tank farm in Lima, crude can be shipped to: MPC s Canton, OH and Detroit, MI refineries Other third-party refineries owned by BP, Husky Energy and PBF Energy in Lima and Toledo, OH Current capacity of 290 MBPD Initial MPC minimum throughput commitment term of 10 years for 40 MBPD 1 Estimated minimum revenue related to MPC s throughput commitment of $7.6 MM Refineries Served (MBPCD) MPC Detroit 123 MPC Canton 80 PBF Toledo 170 BP / Husky Toledo 152 Husky Lima 162 Sources: MPLX S-1 and Oil & Gas Journal Notes: 1 MPC will be obligated to transport on this pipeline system each quarter an average of at least the lesser of: (1) 40 MBPD of light equivalent crude oil and (2) 290 MBPD of light equivalent crude oil minus all third-party shipments of light equivalent crude oil on the system, each quarter on this pipeline system. 24

25 Catlettsburg and Robinson Crude System Primary pipelines supplying crude oil for MPC's Catlettsburg, KY and Robinson, IL refineries Patoka to Catlettsburg System 140 miles of 20-inch pipeline from Patoka to Owensboro, KY 266 miles of 24-inch pipeline from Owensboro to Catlettsburg Entry points at Patoka and Lebanon Junction, KY from the Mid-Valley system Current capacity of 256 MBPD MPLX will fund a growth capital project with a portion of the IPO proceeds to improve the system s performance Patoka to Robinson System 78 miles of 20-inch pipeline that delivers crude oil to MPC s Robinson refinery Current capacity of 225 MBPD Initial MPC minimum throughput commitment term of 10 years for 380 MBPD Estimated minimum revenue related to MPC s throughput commitment of $101.4 MM Refinery Served (MBPCD) MPC Catlettsburg 242 MPC Robinson 212 Sources: MPLX S-1 and Oil & Gas Journal 25

26 Detroit Crude System Samaria to Detroit 44 miles of 16-inch pipeline extending from Samaria, MI to MPC's Detroit refinery System includes a tank farm and crude oil truck offloading facility located in Samaria Current capacity of 140 MBPD with throughput of 107 MBPD in 2011 Romulus to Detroit 17 miles of 16-inch pipeline extending from Romulus, MI to MPC's Detroit refinery Long-term lease from a third party, expires in 2019 which can be extended for up to 20 years at MPC s sole discretion MPL recently constructed a one-mile addition that connects to MPC s Detroit refinery The system has an estimated capacity of 180 MBPD Initial MPC minimum throughput commitment term of 10 years for 155 MBPD Estimated minimum revenue related to MPC s throughput commitment of $12.8 MM Refinery Served (MBPCD) MPC Detroit 123 Sources: MPLX S-1 and Oil & Gas Journal 26

27 Wood River to Patoka Crude System Wood River to Patoka System 57 miles of 22-inch pipeline extending from Wood River, IL to Patoka Current capacity of 223 MBPD Roxanna to Patoka System 58 miles of 12-inch pipeline extending from Roxanna, IL (Enbridge Energy Partner s Ozark pipeline system) to an MPLX tank farm in Patoka Pipeline system is leased from a third party under a long-term lease This crude oil line was placed into service in January 2012 Current capacity of 84 MBPD Initial MPC minimum throughput commitment term of 5 years for 130 MBPD Estimated minimum revenue related to MPC's throughput commitment of $10.5 MM 27

28 Midwest Product Pipelines Overview 28

29 Gulf Coast Product Pipelines Overview 29

30 Product Pipeline Systems Overview Product Pipeline System Diameter (Inches) Length (Miles) Capacity (MBPD) Initial Term (Years) MPC Min. Commitment (MBPD) Garyville to Zachary Zachary Connect NA Texas City to Pasadena Pasadena Connect 30 / NA Ohio River Pipe Line (ORPL) 6 / 8 / 10 / Robinson 10 / 12 / 16 1, Louisville Airport 8 / N/A N/A Total -- 1,819 1, Historical Throughput (MBPD) Mo YTD 2013 MPC Third Party Total 1, , % MPC 92% 91% 90% 93% 94% 93% 96% Throughput Agreement Notes: 1 Designed to meet outgoing rate for connecting third-party pipelines 2 MPC's completion of the Garyville refinery major expansion project in Q resulted in increased throughput on the Garyville to Zachary system 3 Includes MPC volumes shipped under a joint tariff which are accounted for as third-party revenue 4 Throughput agreements were not in place for periods prior to the IPO of MPLX 30

31 Garyville Products System Primary pathway for the distribution of refined products from the Garyville, LA refinery Garyville to Zachary 70 miles of 20-inch pipeline extending from MPC's Garyville refinery to either the Plantation Pipeline in Baton Rouge, LA or the MPC Zachary breakout tank farm in Zachary, LA Current capacity of 389 MBPD with throughput of 258 MBPD in 2011 Capacity was expanded in 2010 as part of MPC s Garyville refinery expansion Zachary Connect 2 miles of 36-inch pipeline that delivers refined products from the MPC tank farm to Colonial Pipeline in Zachary Throughput of 132 MBPD in 2011 Initial MPC minimum throughput commitment term of 10 years for 300 MBPD and 80 MBPD for Garyville to Zachary and Zachary Connect, respectively Estimated minimum revenue related to MPC s throughput commitment of $61.1 MM from the combined system Refinery Served (MBPCD) MPC Garyville 522 Sources: MPLX S-1 and Oil & Gas Journal 31

32 Texas City Products System Primary pathway for the distribution of refined products from MPC's Texas City refinery Texas City to Pasadena 39 miles of 16-inch pipeline extending from refineries owned by MPC and Valero in Texas City, TX to the MPC Pasadena breakout tank farm and third-party terminals in Pasadena, TX Current capacity of 215 MBPD Pasadena Connect 3 miles of 30 / 36-inch pipeline that delivers refined products from the MPC tank farm in Pasadena to the third-party Colonial, Explorer, TEPPCO and Centennial pipeline systems Throughput of 50 MBPD in 2011 Initial MPC minimum throughput commitment term of 10 years for 81 MBPD and 61 MBPD for Texas City to Pasadena and Pasadena Connect, respectively Estimated minimum revenue related to MPC s throughput commitment of $9.4 MM from the combined system Refineries Served (MBPCD) MPC Texas City 84 MPC Galveston Bay 451 Valero Texas City 245 Sources: MPLX S-1 and Oil & Gas Journal 32

33 Ohio River Pipe Line (ORPL) Products Systems System of single and bi-directional pipelines that connect MPC's Canton and Catlettsburg refineries with MPC and third-party terminals Current combined capacity of 242 MBPD Combined throughput of 126 MBPD in 2011 Initial MPC minimum throughput commitment term of 10 years for 128 MBPD Estimated minimum revenue related to MPC's throughput commitment of $58.2 MM Pipeline Detail Diameter (inches) Length (miles) Capacity (MBPD) Kenova 1 to Columbus Canton to East Sparta 6 / / 42 East Sparta to Heath East Sparta to Midland Heath to Dayton Heath to Findlay 8 / Note: 1 Kenova to Columbus pipeline originates at the Catlettsburg refinery Refinery Served (MBPCD) MPC Catlettsburg 242 MPC Canton 80 Sources: MPLX S-1 and Oil & Gas Journal 33

34 Robinson Products System 1,173 miles of owned/leased pipelines connecting MPC's Robinson and third-party refineries and terminals in IL, KY and IN Current combined capacity of 545 MBPD Initial MPC minimum throughput commitment term of 10 years for 209 MBPD Estimated minimum revenue related to MPC s throughput commitment of $49.9 MM Pipeline Detail Diameter (inches) Length (miles) Capacity (MBPD) Robinson to Lima Robinson to Louisville Robinson to Mt. Vernon Refineries Served (MBPCD) MPC Robinson 212 Wood River to Clermont Dieterich to Martinsville Wabash System 12 / / 99 / 85 Note: 1 Only leased segment in the system; long-term lease Phillips 66 / Cenovus Wood River Other refineries via Explorer pipeline Sources: MPLX S-1 and Oil & Gas Journal

35 Product Pipelines Detailed Overview System Name¹ Products Pipelines Diameter (inches) Length (miles) Capacity (MBPD)² Notes: 1 Idled product pipelines are not included in this table 2 Capacity shown is 100.0% of the capacity of these pipeline systems. MPLX owns a 56.0% interest in these pipeline systems 3 Long-term lease with a third party Associated Marathon Petroleum Throughput Agreement (Yes/No) Associated Marathon Petroleum Refinery Garyville products system Garyville, LA to Zachary, LA Yes Garyville, LA Zachary Connect 36" 2 -NA- Yes Garyville, LA Total Texas City products system Texas City, TX to Pasadena, TX Yes Galveston Bay & Texas City, TX Pasadena Connect 30" / 36" 3 -NA- Yes Galveston Bay & Texas City, TX Total Ohio River Pipe Line (ORPL) products system Kenova, WV to Columbus, OH Yes Catlettsburg, KY Canton, OH to East Sparta, OH Yes Canton, OH East Sparta, OH to Heath, OH Yes Canton, OH East Sparta, OH to Midland, PA Yes Canton, OH Heath, OH to Dayton, OH Yes Catlettsburg, KY & Canton, OH Heath, OH to Findlay, OH 8 / Yes Catlettsburg, KY & Canton, OH Total Robinson products system Robinson, IL to Lima, OH Yes Robinson, IL Robinson, IL to Louisville, KY Yes Robinson, IL Robinson, IL to Mt. Vernon, IN³ Yes Robinson, IL Wood River, IL to Clermont, IN Yes Robinson, IL Dieterich, IL to Martinsville, IL Yes Robinson, IL Wabash Pipeline System West leg - Wood River, IL to Champaign, IL Yes Robinson, IL East leg - Robinson, IL to Champaign, IL Yes Robinson, IL Champaign, IL to Hammond, IN 12 / Yes Robinson, IL Total 1, Louisville Airport products system Louisville, KY to Louisville International Airport 6 / No Robinson, IL 35

36 Other Major MPLX Assets MPC's commitments account for total annual revenue of $34 MM from these Other major assets Neal, W.Va., Butane Storage Cavern Capacity of ~1 MMBBL with an initial 10-year term Connected to MPC s Catlettsburg, KY refinery through pipelines owned by MPC Rail access is available through the refinery s rail facilities Tank Farm Storage Assets Several pipeline storage facilities (tank farms) for both crude oil and products located in Patoka, Wood River and Martinsville, IL and Lebanon, IN with ~3.3 million barrels of shell capacity that will be provided to MPC on a firm basis Neal Butane Cavern Tank Farm Storage Asset Capacity Initial Term (Years) Asset Capacity Initial Term (Years) Patoka Tank Farm 1,386 MBBL 3 Martinsville Tank Farm 738 MBBL 3 Wood River Tank Farm 419 MBBL 3 Lebanon Tank Farm 750 MBBL 3 36

37 Incentive Distribution Rights Total Quarterly Distribution Per Unit Target Amount Marginal Percentage Interest in Distributions Unitholders General Partner Minimum Quarterly Distribution $ % 2.0% First Target Distribution above $ up to $ % 2.0% Second Target Distribution above $ up to $ % 15.0% Third Target Distribution above $ up to $ % 25.0% Thereafter above $ % 50.0% 37

38 MPLX and MPC are Aligned 2.0% GP interest MPLX Organizational Structure Marathon Petroleum Corporation and Affiliates (NYSE: MPC) 100.0% ownership interest MPLX GP LLC (our General Partner) 71.6% LP interest MPLX LP (NYSE: MPLX) r (the Partnership ) Public 26.4% LP 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 44.0% limited partner interest 100.0% ownership interest MPLX Operations LLC 56.0% GP interest 100.0% ownership interest 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 ) 38

39 MPLX Offering Summary Issuer Sponsor Exchange / Ticker MPLX LP Marathon Petroleum Corporation 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 39

40 Focused and Integrated Network Refineries Marketing Area Refineries Connecting Pipelines Light Product Terminals Asphalt Terminals Inland Water Terminals Coastal Water Terminals Terminals Coastal Water Terminals Pipelines Inland Water Terminals As of October 31, 2013 Tank Farms Butane Cavern Barge Dock Speedway Brand Marketing 40

41 Marathon Petroleum Statistics at a Glance Fortune 50 company Established in th largest U.S. refiner Largest in Midwest 2012 Revenues and other income: $82.5 billion 2012 Net income attributable to MPC: $3.39 billion Employees: ~28,000 Headquartered in Findlay, Ohio ~1,470 Speedway convenience stores ~5,000 Marathon Brand retail outlets Extensive terminal and pipeline network 41

42 MPC Priorities 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 42

43 MPC 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 43

44 MPC Building on our Reputation Sustained capital returns and value-enhancing investments 100 MPC Price Performance Third $2 B share repurchase authorized % increase in dividend Completed Detroit Heavy Oil Upgrade Completed MPLX IPO Second $2 B share repurchase authorized Acquired Galveston Bay Refinery $/Share MPC spinoff from MRO 40% increase in dividend Initial $2 B share repurchase authorized 20% increase in dividend 30 First $100 MM drop into MPLX 20 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Jul- Aug- Sep- Nov- Dec- Feb Mar- May- Jun Jul- 12 Sep- 12 Oct- 12 Dec- 12 Jan- 13 Mar- 13 Apr- 13 Jun- 13 Jul- 13 Aug- 13 Oct- 13 Nov- 13 Source: Thomson Reuters, MPC 44

45 MPC Returning Substantial Capital 2.5x free cash flow LTM 7,000 LTM Ended September 30, ,000 $MM 5,000 4,000 3,000 Free Cash Flow** 1,340 3,315 ~247% of Free Cash Flow** Dividends and share repurchases* Cash capital expenditures, acquisitions and investments 2,000 1,000 4,093 2,753 Net cash provided by operations 0 *$474 MM dividends plus $2,841 MM share repurchases **Cash flow provided by operations less cash capital expenditures, acquisitions and investments. Non-GAAP disclosure, see appendix for reconciliation to MPC Free Cash Flow to Net Cash Provided by (Used in) Operations 45

46 MPC 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,

47 MPC 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 47

48 MPC 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 1,000 $MM 7,000 6,000 5,000 4,000 3,000 2,000 1, E LTM Pipeline Transportation Speedway Refining & Marketing : 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 48

49 MPC 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 49

50 MPC Allocating Capital to Higher Valued Businesses 4,000 3,500 3,000 2, Capital Investment Profile $MM 2,000 1,500 1, E* 2014E 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 50

51 MPC Providing More Stable Cash Flow Future Mid-Cycle EBITDA Midstream Speedway Historical Mid-Cycle EBITDA * Other Pipeline Transportation Speedway R&M R&M * average. Non-GAAP disclosure, see appendix for reconciliation to net income attributable to MPC 51

52 MPC Favorable Market Backdrop Global and domestic product demand Global product demand still growing U.S. distillate demand outpaces other products Global and domestic refining U.S. refining advantage will continue Product exports continue to be key for U.S. refiners Global and domestic crude oil production Global supply disruptions continue Domestic and Canadian supply growth Crude spreads remain volatile The MPC advantage 52

53 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 Gasoline 2012 Actual Forecast Compounded Annual Growth Rates 2025 vs % -2.4% +1.2% +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 53

54 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 54

55 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

56 Sustaining U.S. Export Advantage Access to lower cost feedstocks Low cost natural gas Complex refineries Sophisticated workforce Atlantic Basin Fuel Prices Henry Hub USGC #6 1% UK NBP Index Netherlands Avg. Border Gas 20 Region 2012 Utilization Rate North America 87% Former Soviet Union 80% $/MMBTU Middle East 79% Europe 74% Asia 74% Latin America 73% Africa 69% Sources: MPC, Platts, Petroleum Argus, World Gas Intelligence, ICE and U.S. Federal Reserve Board, International Energy Agency (IEA) 56

57 Growing Total U.S. Light Product Exports MMBD 2,000 1,800 1,600 1,400 1,200 1, Total Gasoline Total Distillate Sources: MPC, EIA Note: Gross exports shown 57

58 Rising MPC Finished Product Exports MBD Sept YTD Q 58

59 Growing N.A. and Middle East Crude Production Former Soviet Union 20 Europe North America Middle East Asia Africa Latin America All values in MMBD Middle East includes Iran, Iraq, Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Oman, Syria, Yemen Sources: BP Statistical Review of World Energy, MPC 59

60 Ongoing Disruptions Temper Global Crude Supply 45 Crude Oil Production 3.5 Global Supply Disruptions (OPEC) MMBD Near-term Flat OPEC Production MMBD Increased Disruptions OPEC NON-OPEC Source: International Energy Agency (IEA) Source: PIRA Energy Group November

61 Rising North American Production 16 Actual 2012 Forecast MMBD Canada United States Sources: EIA, CAPP, MPC 61

62 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 MPC Refinery Sources: EIA, CAPP, MPC 62

63 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 & Gas Journal, MPC as of February 1,

64 Ongoing Volatile Crude Spreads vs. WTI $/BBL Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Mars Maya WCS LLS NDL Brent Sources: MPC, Argus 64

65 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 65

66 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 66

67 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 67

68 U.S./Canada Key Existing and Planned Pipelines Burnaby Trans Mountain Edmonton Hardisty Anacortes Regina Cromer MBPD Pipeline Estimated Completion 540 Keystone Current Clearbrook Superior Sarnia Montreal Portland 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 Flanagan SAX Ho-Ho Chicago Mustang Patoka St James Houma 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 68

69 MPC 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. ~5,100 Marathon Brand retail outlets across 18 states ~1,200 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) ~1,470 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 September 30, 2013 Barge Dock 69

70 Capital Expenditures & Investments ($MM) 2014 MPC Budget Refining & Marketing (R&M) 864 Midstream included in R&M 348 Speedway 327 Pipeline Transportation* 760 Corporate and Other 133 Total Capital Expenditures & Investments 2,432 *Including MPLX (100% basis) ($MM) 2014 MPLX Budget (100% basis) Growth 113 Maintenance 35 Total Capital Expenditures 148 Note: Excludes capitalized interest 70

71 EBITDA Reconciliation to Net Income Attributable to MPC ($MM) Q 2Q 3Q 4Q 1Q 2Q 3Q 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) 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, By Segment Refining & Marketing Segment EBITDA 3,413 1, ,539 4,309 1,128 1,516 1,889 1,369 1,341 1, Speedway Segment EBITDA Pipeline Transportation 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, Last Twelve Months Segment EBITDA 6,596 6,841 6,509 5,127 71

72 Reconciliation MPC Free Cash Flow to Net Cash Provided by (Used in) Operations ($MM) (Quarter to date) 4Q 1Q 2Q 3Q Net cash provided by (used in) operating activities 2,043 2,079 (436) 407 Additions to property, plant and equipment (403) (195) (229) (309) Acquisitions* - (1,493) (22) - Investments (16) (5) (6) (75) Free cash flow 1, (693) 23 Last twelve months free cash flow 1,340 *Represents cash paid 72