Midstream-to-Downstream. James Crews, VP Business Development MarkWest Energy Partners January 26, 2017

Transcription

1 Midstream-to-Downstream James Crews, VP Business Development MarkWest Energy Partners January 26, 2017

2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding MPLX LP ( MPLX ). These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPLX. You can identify forwardlooking statements by words such as anticipate, believe, design, estimate, expect, forecast, goal, "guidance," imply, intend, objective, opportunity, outlook, "plan, position, pursue, prospective, predict, project, "potential," seek, strategy, target, 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's actual results to differ materially from those implied in the forward-looking statements include: negative capital market conditions, including a persistence or increase of the current yield on common units, which is higher than historical yields, adversely affecting MPLX s ability to meet its distribution growth guidance; risk that the synergies from the acquisition of MarkWest Energy Partners, L.P. ( MarkWest ) by MPLX may not be fully realized or may take longer to realize than expected; disruption from the MPLX/MarkWest merger making it more difficult to maintain relationships with customers, employees or suppliers; risks relating to any unforeseen liabilities of MarkWest; adverse changes in laws including with respect to tax and regulatory matters; the adequacy of MPLX's capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions, and the ability to successfully execute its business plans and growth strategy; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; continued/further volatility in and/or degradation of market and industry conditions; changes to the expected construction costs and timing of projects; completion of midstream infrastructure 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 MPLX's commercial agreements; modifications to earnings and distribution growth objectives; the level of support from MPC, including dropdowns, alternative financing arrangements, taking equity units, and other methods of sponsor support, as a result of the capital allocation needs of the enterprise as a whole and its ability to provide support on commercially reasonable terms; compliance with federal and state environmental, economic, health and safety, energy and other policies and regulations and/or enforcement actions initiated thereunder; changes to MPLX's capital budget; 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 Dec. 31, 2015, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, 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 or in MPLX's Form 10-K or Form 10-Q. Copies of MPLX's Form 10-K and Form 10-Q are available on the SEC website, MPLX's website at or by contacting MPLX's Investor Relations office. 2

3 About MPLX Growth-oriented, diversified MLP with high-quality, strategically located assets with leading midstream position Two primary businesses Logistics & Storage includes transportation and storage of crude oil, refined products and other hydrocarbon-based products Gathering & Processing includes gathering, processing, and transportation of natural gas and the gathering, transportation, fractionation, storage and marketing of NGLs Investment grade credit profile with strong financial flexibility MPC as sponsor has interests aligned with MPLX MPLX assets are integral to MPC Growing stable cash flows through continued investment in midstream infrastructure Expected dropdowns of ~$1.4B of MLP-qualifying EBITDA As of September 30, 2016 See appendix for legend 3

4 Gathering & Processing Segment Overview Raw Natural Gas Production Gathering and Compression Processing Plants Mixed NGLs Facilities NGL Products Ethane Propane Normal Butane Isobutane Natural Gasoline One of the largest NGL and natural gas midstream service providers Gathering capacity of 5.5 Bcf/d 50% Marcellus/Utica; 50% Southwest Processing capacity of 7.6 Bcf/d* ~70% Marcellus/Utica; ~20% Southwest C2 + capacity of 500 MBPD** ~90% Marcellus/Utica Primarily fee-based business with highly diverse customer base and established long-term contracts *Includes processing capacity of non-operated joint venture **Includes condensate stabilization capacity 4

5 Gathering & Processing MarkWest s Footprint in the Tri-State Region HOPEDALE FRACTIONATION COMPLEX OHIO PENNSYLVANIA KEYSTONE COMPLEX HARMON CREEK COMPLEX (currently under construction) HOUSTON COMPLEX MarkWest Joint Venture with EMG OHIO CONDENSATE MarkWest Joint Venture with Summit Midstream CADIZ & SENECA COMPLEXES MarkWest Joint Venture with EMG MAJORSVILLE COMPLEX SHERWOOD COMPLEX MOBLEY COMPLEX Gathering System Marcellus Complex Utica Complex NGL Pipeline Purity Ethane Pipeline WEST VIRGINIA ATEX Express Pipeline TEPPCO Product Pipeline Mariner West Pipeline Mariner East Pipeline 5

6 Completed Facilities Projected Facilities Gathering & Processing Segment Growth MarkWest s Completed and Projected Facilities in the Tri-State Region Houston I Mobley II Bluestone II Houston IV Sherwood VII Houston II Sherwood II Majorsville IV Sherwood VI Sherwood VIII Majorsville I Majorsville III Sherwood V Majorsville VI Harmon Creek I Marcellus Facility Houston III Majorsville II Houston C3+ Bluestone I & Sarsen* Mobley I Sherwood I Utica Facility *Acquired Facilities Majorsville V Mobley III Sherwood III Houston C2 Majorsville C2 Seneca I Cadiz I Mobley IV Keystone C2+ Sherwood IV Seneca II & III Cadiz C2 Cadiz II Hopedale C3+ I & II Mobley V Bluestone III Sherwood C2 Mobley C2 Keystone C3+ Cadiz III Seneca IV Utica Condensate Harmon Creek C2 Keystone C2 Majorsville C2 II Majorsville VII Cadiz IV Hopedale C3+ III 6

7 Marcellus & Utica Operations Volume Growth Driven by Diverse Set of Producer Customers MarkWest supports over 20 producer customers and has ~8 million acres of area dedication in the tri-state region ~4.3Bcf/d Marcellus & Utica Gas Processed Utica Operations Marcellus Operations Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 7

8 Hopedale Complex Hopedale Complex 8

9 Keystone Complex 9

10 Sherwood Complex 10

11 Majorsville Complex 11

12 Gathering & Processing Significant Growth Requires a Highly Skilled Team ~850 employees supporting MarkWest operations in the Marcellus, Utica, and Southern Appalachia areas Source employees from varied backgrounds including: Engineering Operations Trades Other Industries (steel and coal) Focus on local education initiatives and on-the-job training Marcellus Operations G&P Employees in Northeast Region Utica Operations Engineering /Corporate Southern Appalachia Operations 12

13 Marcellus/Utica Shale Strategy Shawn Lyon, VP, Operations Marathon Pipe Line LLC January 26, 2017

14 Utica Infrastructure Investments Assets in service Canton and Catlettsburg condensate splitters Canton condensate truck unload rack Wellsville condensate truck-to-barge terminal Truck fleet River barges Gathering, processing & fractionation infrastructure Cornerstone pipeline and Hopedale connection East Sparta tank farm expansion Cadiz condensate truck unload rack Assets in progress Utica build-out pipeline projects RIO reversal expansion Cochin pipeline connection Additional gathering, processing & fractionation infrastructure Expansion of additional NGL transportation logistics Significant potential additional Utica/Marcellus investments 14

15 Cornerstone Pipeline Connecting Utica Production Supply Summary Industry solution, 16-inch pipeline connecting Utica Shale region to East Sparta, Ohio, tank farm 180,000 bpd condensate & natural gasoline pipeline In service October 2016 Optimal connectivity to condensate stabilizers and fractionators MarkWest stabilizer Cadiz UEO fractionator/stabilizer Scio MarkWest fractionator Hopedale Midwest Terminals truck unload Cadiz Additional potential future connections 15

16 Utica Build-Out Projects Delivering Utica Production Demand Summary Expand existing pipelines to Harpster Construct a new pipeline from Harpster to Lima Connect to the Maumee 22 pipeline at Lima Reverse the RIO 8 pipeline Up to 50,000 bpd of capacity for Utica volumes to Lima Mid-2017 planned in-service Provides diluent pipeline options Southern Lights and Cochin Provides for future larger build-out projects 16

17 Utica Build-Out Projects Delivering Utica Production Progress 2016 work completed RIO pipeline reversal Heath to Findlay mainline expansion Station construction 2017 work planned East Sparta to Heath expansion Heath tank farm expansion Harpster to Lima pipeline construction Lima Maumee connection RIO reversal expansion Diluent tank construction at Robinson Cochin connection 17

18 Cornerstone Pipeline and Utica Build-Out Projects The Utica Pipeline Solution First Utica shale liquids pipeline Provides optionality to multiple markets, maximizing producer netbacks Provides flexibility of commitment terms and seasonal shipper needs Allows MPLX to complete projects in phases as Utica production grows Maintains the option for future expansion volume and connectivity Adds superior safety, reliability and economics to existing alternatives 18

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