Investor Presentation. June 2016

Transcription

1 Investor Presentation June 2016

2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation ("MPC") and MPLX LP ("MPLX"). These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPC and MPLX. You can identify forward-looking 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 MPC's actual results to differ materially from those implied in the forward-looking statements include: risks described below relating to MPLX and the MPLX/MarkWest Energy Partners, L.P. ("MarkWest") merger; changes to the expected construction costs and timing of pipeline projects; continued/further 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; the effects of the lifting of the U.S. crude oil export ban; 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; MPC's ability to successfully implement growth opportunities; modifications to MPLX earnings and distribution growth objectives; federal and state environmental, economic, health and safety, energy and other policies and regulations, including the cost of compliance with the Renewable Fuel Standard; changes to MPC's capital budget; 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 Dec. 31, 2015, filed with Securities and Exchange Commission (SEC). 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 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; 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; 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 drop-downs, 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; federal and state environmental, economic, health and safety, energy and other policies and regulations; 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 Form 10-Q for the quarter ended March 31, 2016, filed with the SEC. In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here, in MPC's Form 10-K, or in MPLX's Form 10-K or Form 10-Q could also have material adverse effects on forward-looking statements. Copies of MPC's Form 10-K are available on the SEC website, MPC's website at or by contacting MPC's Investor Relations office. 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. Non-GAAP Financial Measures 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 attributable to MPC or MPLX or other financial measures prepared in accordance with GAAP. The EBITDA forecast related to MPC s marine assets was determined on an EBITDA-only basis. Accordingly, information related to the elements of net income, including tax and interest, are not available and, therefore, a reconciliation of this non-gaap financial measure to the nearest GAAP financial measure has not been provided. 2

3 Our Priorities for Value Creation Strategic Objective Maintain top tier safety and environmental performance Balance capital returns with value-enhancing investments Enhance margins for our refinery operations Grow higher valued and stable cash-flow businesses How We Get There Continued focus on safety and environmental stewardship license to operate Return free cash flow to shareholders through strong and growing base dividend and share repurchases Disciplined approach to capital investment Optimize Galveston Bay and Texas City operations Increase distillate production Increase export capacity Increase margins through process improvements Grow MPLX distributions Grow Speedway EBITDA beyond $1.0 B 3

4 Balanced Approach to Returning Capital and Investment Investing in the Business* $14.6 B $9.7 B Capital Return Since July 2011 $7.3 B returned to shareholders through repurchases, representing 28% of shares outstanding Five dividend increases resulting in a 28% CAGR Strategic investments providing long-term stable cash flows *Represents cash capital expenditures, acquisitions, investments and contingent consideration Reflects activities from July 1, 2011 to March 31,

5 Fundamentals of MPC s Business Strategically located assets and fully integrated system provides optionality and flexibility Gasoline demand continues to be strong Peer leading alkylation and reforming capacity Supply dynamics support resilient crack spreads U.S. refiners have a sustained export advantage Heavy and sour crude differentials remain favorable As of March 31, 2016 See appendix for legend 5

6 Refining Enhancing Margins Through Process Efficiency Increasing EBITDA through process improvements Completed light crude upgrade project at Robinson Optimizing Galveston Bay and Texas City operations Increasing distillate yield and conversion capacity Growing refined product export capacity 6

7 Refining Increasing EBITDA Through Continuous Process Improvements Low or no investment projects 1,000 Refining Process Improvements* Focus on technical excellence Improvements in process unit performance EBITDA improvement of approximately $800 MM between 2012 and 2015 Margin Improvement $MM *Galveston Bay synergies included Galveston Bay All Other 7

8 Enhancing Refining Margins Robinson light crude processing project +30 MBD light crude $140 MM investment ~20% ROI, completed 2Q 2016 Galveston Bay export capacity expansion +30 MBD ULSD ~30% ROI, mid-2016 est. completion +115 MBD gasoline ~20% ROI, est. completion Garyville ULSD projects +35 MBD ULSD $232 MM investment ~45% ROI, est. completion 8

9 Galveston Bay Process Improvements and Synergies* $MM EBITDA Improvement Process improvements Unit optimization Improved unit yields Bottlenecks removed Catalyst changes Synergy capture Crude optimization Process unit utilization E 2019E Future improvements Shutdown inefficient units Integrate utilities *STAR investment program excluded 9

10 South Texas Asset Repositioning (STAR) Program Creating a World-Class Refining Complex ~$2.0 B of total investment IRR 26% Increase residual oil (resid) processing Expand resid hydrocracker Improve gas oil recovery Revamp crude unit Increase distillate and gas oil recovery Improve reliability Increase capacity 40 MBD Install a new ULSD hydrotreater Produce 100% ULSD/ULSK Increase finished distillate 65 MBD Full integration of Galveston Bay and Texas City refineries $MM $MM 2,000 1,500 1, E & prior Investment E 2018E 2019E 2020E 2021E EBITDA E Avg. 2021E 2022E 10

11 U.S. Refiners have a Sustained Export Advantage $/MMBtu Low cost natural gas Large, complex refineries Access to lower cost feedstocks High utilization rates Sophisticated workforce Sources: World Bank, IEA, PIRA Natural Gas Price Comparison Actual Forecast Japanese Liquefied Natural Gas (World Bank)* European Natural Gas (World Bank)* HH Spot Price (World Bank) *Average import border price Region 2015 Utilization Rate North America 88% MPC 99% Europe 86% Former Soviet Union 82% Asia 81% Middle East 79% Latin America 74% Africa 71% 11

12 Reaching Higher-Value Markets Increasing Finished Product Export Capacity MBD Export Capacity E 2019E Base Garyville Galveston Bay 12

13 Refining Investments Growing EBITDA Investments of $2.9 B contributing approximately $1.2 B EBITDA 800 Refining Growth Investment 1,400 Incremental EBITDA 1, ,000 $MM 400 $MM Prior to E 2017E 2018E 2019E 2020E 2021E 2016E 2017E 2018E 2019E 2020E 2021E 2022E South Texas Asset Repositioning (STAR) Program FCC Optimization All Other 13

14 Peer-leading Alkylation and Reforming Capacity Expect strong U.S. summer octane values Octane generation capacity has been relatively steady, incremental capacity required in the future HFC BP PBF Tesoro Chevron Valero Exxon Phillips Octane Capacity (31%) Reforming Isomerization (30%) Alkylation (28%) ( ) % of Crude Capacity (31%) (37%) (24%) (30%) (31%) MPC (35%) MBPCD Source: Oil & Gas Journal effective Dec. 31, 2015 Exxon and PBF data adjusted to reflect pending acquisition of Exxon s Torrance refinery by PBF 14

15 Speedway Provides Stable Cash Flows Top tier performer in convenience store industry #1 in EBITDA/store/month vs. public peers Accelerating growth through organic projects Filling in existing markets Commercial fueling lane network Continue to accelerate benefits from Speedway s acquired locations Adjusted EBITDA 1, ,000 $MM Adjusted EBITDA excludes a non-cash $25 MM lower of cost or market inventory valuation charge 15

16 Speedway Highlights Over 5 million* Speedy Rewards active members and growing as we attract new members in the markets we serve Continuing to focus on marketing enhancement opportunities at Speedway s converted locations Completed 76 remodels in Q1 2016, 361 to date at converted locations *12 month rolling average as of March 31,

17 MPLX Key Investment Highlights High standard for safety and environmental stewardship Premier assets in highly productive resource plays Long-term integrated relationships with our producer customers Strategic relationship with MPC Strong base business with robust growth opportunities Leading development of Northeast into the next great NGL hub Connecting midstream to downstream across hydrocarbon value chain Expanding presence in the Southwest and USGC Attractive distribution growth profile over the long term 17

18 MPLX Operational Highlights Acquired premier inland marine operation from MPC, adding ~$120 MM of annual EBITDA Completed 20 MBD expansion of Patoka-to-Robinson crude pipeline in April Began construction of the Cornerstone Pipeline, expected to be in-service late 2016 Commenced operations of 200 MMcf/d processing plant and 10,000 BPD de-ethanization facility at Mobley Complex in April Supported first ever waterborne ethane exports from the U.S., with ethane recovered from MPLX facilities First propane unit train delivery from Hopedale Complex, progressing NGL marketing strategies for the region New 200 MMcf/d processing plant in Delaware Basin completed in May, expanding presence in Southwest 18

19 MPLX Enhances MPC s Value MarkWest Energy merger Adds scale and diversity to MPC Adds high quality natural gas and NGL assets in prolific shale regions Significant commercial synergies and opportunities across value chain Near term support provides long-term value uplift Cash distributions to MPC via LP units, IDRs and drop-down proceeds Substantial inherent value 19

20 MPC s Strong Liquidity and Capitalization Committed to maintaining investment grade credit profile and financial flexibility Operate with prudent leverage and strong liquidity through cycle MPLX $1 B private placement with third-party investors provides attractive terms to the partnership and preserves MPC s capital and financial flexibility Liquidity and Capitalization ($MM except ratio data) As of 3/31/16 Total Debt Outstanding (a) $ 11,566 Stockholders' Equity 19,494 Total Capitalization 31,060 Total Cash 308 Total Debt/LTM Pro Forma Adjusted EBITDA (b,c) 1.9x Debt-to-Capital Ratio (book) 37% (a) Includes amounts due within one year (b) Pro forma Adjusted EBITDA reflects MarkWest acquisition (c) Calculated using face value total debt and LTM pro forma Adjusted EBITDA 20

21 MPC Consolidated 2016 Revised Capital Outlook Announced February 2016 $MM 4,500 $4.2 B 4,000 (~$100) 3,500 (~$650) 3,000 2,500 (~$400) (~$50) (~$20) 2,000 $3.0 B 1,500 1, Capital Budget Refining & Marketing* *Excludes Midstream. Includes 6-9 month deferral on spending for STAR program. **Represents midpoint of MPLX capital expenditure guidance ***Includes R&M Midstream MPLX** Midstream*** Speedway Corporate and Other 2016 Revised Capital Outlook 21

22 Growing More Stable Cash-Flow Business Segments MPLX 36% Speedway 10% Corporate & Other 3% 23% Refining Sustaining Capital 2016 Capital Outlook $3.0 B MPC $1.9 B Refining & Marketing, excluding Midstream $1,045 MM Midstream* $440 MM Speedway $310 MM 15% Midstream* 13% Refining Margin Enhancement Corporate & Other $95 MM MPLX $1.1 B Growth $1,000 MM** Maintenance $61 MM *Includes ~$125 MM of midstream investments included in the R&M segment. Excludes MPLX. **Represents midpoint of MPLX capital expenditure guidance 22

23 Driving Top Tier Financial Performance Through Sustainable Competitive Advantages Fully integrated system provides optionality and flexibility Strategically located assets Value of MPLX Consistent and reliable operator Sustained performance through all cycles Disciplined, balanced approach to capital allocation and capital return Top tier retail system As of March 31, 2016 See appendix for legend 23

24 Appendix

25 Fully Integrated Downstream System As of March 31, 2016 Refining and Marketing Seven-plant refining system with ~1.8 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market area One of the largest producers of asphalt in the U.S. ~5,500 Marathon Brand retail outlets across 19 states ~300 retail outlet contract assignments primarily in the Southeast and select Northeast states Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light product and two asphalt locations 2,210 owned/leased railcars, 173 owned transport trucks Speedway ~2,770 locations in 22 states Second largest U.S. owned/operated c-store chain Midstream Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines 18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges Owns/operates over 5,000 miles of gas gathering and NGL pipelines Owns/operates 53 gas processing plants, 13 NGL fractionation facilities and one condensate stabilization facility Marketing Area MPC Refineries Light Product Terminals MPC owned and Part-owned Third Party Asphalt/Heavy Oil Terminals MPC Owned Third Party Water Supplied Terminals Coastal Inland Pipelines MPC Owned and Operated MPC Interest: Operated by MPC MPC Interest: Operated by Others Pipelines Used by MPC Renewable Fuels Ethanol Facility Biodiesel Facility Tank Farms Butane Cavern MarkWest Facility Pipelines Barge Dock 25

26 Distillate Leads U.S. Domestic Petroleum Fuels Demand MMBD Actual Forecast Gasoline Gasoline ex ethanol Distillate Jet Fuel Resid Compounded Annual Growth Rates 2015 vs % -1.1% +1.4% +0.5% -2.8% Gasoline demand declines due to corporate average fuel economy (CAFE) standards despite increased travel Assuming 2015 vehicle efficiencies for all periods, gasoline demand (including ethanol): 9.9 MMBD by MMBD by 2030 Sources: U.S. Energy Information Administration (EIA), MPC 26

27 Distillate Leading World Liquids Demand MMBD Other Resid Middle Distillate Actual Forecast Annual Average Volumetric Growth (MBD) 2015 vs Average product demand growth of 1.6 MMBD in Distillate remains the growth leader through Gasoline +157 Heavy fuel oil continues its structural decline Sources: BP Statistical Review of World Energy (Actual), MPC Economics (Forecast) 27

28 Distillate Fundamentals Strong Long Term Current market conditions for distillate Contango in crude oil markets encouraged producing and storing diesel Mild winter and slower than expected global economic growth has weighed on demand Strong gasoline crack spreads last summer offset weak distillate margins Distillate cracks expected to improve long term As crude oil market balances, contango benefit should decline, encouraging de-stocking of crude and distillates As gasoline demand is impacted by CAFÉ standards, global distillate demand is expected to be greater than gasoline International bunker specifications will increase demand for distillate 28

29 Shale Crudes Strengthen Octane Market Expect strong U.S. summer octane values Lighter crude runs produce more light naphtha, increasing demand for octane Shale crudes yield a lower quality reformer feed Octane generation capacity has been relatively steady, incremental capacity required in the future Sources: U.S. Energy Information Administration (EIA), MPC 29

30 North American Crude Production MMBD Actual Forecast Canada U.S. Shale U.S. Non-Shale Shale production challenged in current price environment Drilling improvements and efficiency gains have lessened near-term declines Long-term production growth is still expected Sources: MPC, CAPP 30

31 U.S. Natural Gas Production Growth Largely from Shale MMBOED Actual Shale Gas 6 Tight Gas 4 2 Coal-bed Methane Alaska L48 Onshore Conventional L48 Offshore Sources: MPC, EIA (Annual Energy Outlook-Early Release, May 2016) Forecast U.S. natural gas supply to grow by 5.4 MMBOED (29 BCFD) by production was 13.8 MBOED (74.5 BCFD) Lower global LNG prices pose a challenge for new U.S. LNG projects Demand growth is the limiting factor in supply growth 31

32 U.S. NGL Volume Growth Creates a Need for Incremental Infrastructure MMBD 7 Actual Forecast Purity Ethane 3 2 Propane 1 Butanes 0 Nat. Gasoline Source: MPC 2016 LT Forecast Gulf Coast ethylene crackers are being built, adding 700 MBD to demand for ethane by 2021 Realized ethane production increases from as rejection tapers off due to increased demand and exports Supply growth of other NGLs slows through 2017 with lower prices and lower natural gas production growth 32

33 U.S. Natural Gas and NGL Trade Flows Changing Paradigm shift from U.S. Northeast being a significant importer to a significant exporter Driven by Marcellus and Utica production growth Infrastructure continuing to build out to reflect changes in trade flows 33

34 U.S./Canada Key Existing and Planned Pipelines Planned Pipelines MBPD In-Service Date Grand Mesa Saddlehorn Bayou Bridge (Lake Charles to St. James) TBD* 2017 Diamond Dakota Access ETCO Midland to Sealy Sandpiper (to Superior) Sandpiper (Superior to Clearbrook) Trans Mountain Expansion Energy East 1, Sources: Publicly available information *Capacity has not been announced 34

35 Returning Capital to Shareholders Through Share Repurchases $MM 8,000 6,000 4,000 2,000 0 Cumulative Share Repurchases Since July 2011 $10 B share repurchases authorized $7.31 B returned to shareholders through repurchases 28% of June 30, 2011 shares outstanding repurchased 35

36 Returning Capital to Shareholders Through Dividends $/Share % $0.125 $0.10 $89 $87 $85 $71 +40% $ % $ % $0.25 $119 $116 $116 $113 $129 $126 $123 $122 $141 $138 $136 $ % $0.32 $171 $170 $169 $ $MM Q Q Q Q Note: All values adjusted for stock split in 2Q 2015 Q Q Q Q Dividend per Share Q Q Q Q Q Q Q Total Dividends Paid per Quarter Q Q Q Q Q

37 MPC vs. Peer Companies Operating Income per Barrel 20 Operating Income Per Barrel of Crude Throughput ** $/BBL MPC s Rank Competitor Range Companies Ranked* *Current companies ranked: BP, CVX, HFC, MPC, PSX, TSO, VLO, XOM, PBF **Adjusted domestic operating income per barrel of crude oil throughput Source: Company Reports 37

38 Balance in Refining Network BPCD NCI Canton (Ohio) 93, Catlettsburg (Ky.) 273, Detroit (Mich.) 132, Robinson (Ill.) 212, Galveston Bay (Texas) 459, Texas City (Texas) 86, Garyville (La.) 539, Total 1,794, * 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. Source: MPC data as reported in the Oil & Gas Journal effective Dec. 31, 2015 Texas Capacity 545,000 BPCD Midwest Capacity 710,000 BPCD *Weighted Average NCI Louisiana Capacity 539,000 BPCD 38

39 Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate 40% 60% PADD II 61% PADD III 39% As of March 31, Q 2016 Sour Crude Sweet Crude Assured Sales of Gasoline Production (Speedway + Brand + Wholesale Contract Sales) ~70% ~30% Assured Sales Wholesale and Other Sales 1Q

40 Galveston Bay-Texas City World-Class Refining Complex Integrated Galveston Bay-Texas City Refinery Post-STAR BPCD Unless Noted Crude Vacuum Distillation Residual Hydrocracking Coking Catalytic Cracking Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrotreating Alkylation ROSE Solvent Deasphalter Aromatics Isomerization Selective Toluene Disproportionation Cumene Coke (Short Tons per Day) (1) Sulfur (Long Tons per Day) (2) Asphalt (1) Short Ton = 2,000 lbs. Galveston Bay* 585, ,200 94,300 29, , ,300 65, ,900 51,800 18,000 33,800 60,800 2,263 1,351 (2) Long Ton = 2,240 lbs. *Post STAR program completion in 2021 MPC estimates 40

41 Producing Higher-Value Products Investments of ~$360 MM contribute ~$130 MM EBITDA Fluid Catalytic Cracking (FCC) projects Increase alkylate and light products Garyville FCC/Alky Late 2016 Investment: ~$220 MM IRR 27% Detroit FCC 2018 Investment: ~$140 MM IRR 26% 41

42 Capitalizing on Growing U.S. Finished Product Exports Gross U.S. Finished Product Exports MPC Finished Product Exports 1, ,600 1,400 1, MBD 1, MBD Sources: MPC, EIA Other U.S. MPC 42

43 MPC s Value of Integration 3,500 3,000 RIN $ Distortion Crude Price Decline Flexible refining system $MM 2,500 2,000 1,500 Large retail presence Extensive logistics with considerable optionality 1,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Gross Margin Indicator Reported Gross Margin Excludes non-cash lower of cost or market inventory valuation charge of $15 MM and $345 MM in 1Q 2016 and 4Q 2015, respectively. 43

44 Speedway: Pursuing Attractive and Accretive Acquisitions As of March 31, 2016 See appendix for legend Speedway Marketing Area Speedway Location Leverage MPC s supply and logistical network Increase assured sales Optimize terminal utilization Fill market voids in Speedway footprint High quality assets Continue focus in Pennsylvania and Tennessee Growth opportunities in Georgia, South Carolina and Florida panhandle Capitalize on opportunistic acquisition environment 44

45 Capitalizing on Diesel Demand Growth Trucking remains a dominant mode of transportation U.S. freight volumes expected to increase by 29% Diesel demand growth expected to outpace gasoline Build out commercial fueling lane network ~150 CFL locations Source: American Trucking Association 45

46 Following Through on Goals for Acquired Locations Invest ~$570 MM in conversions, remodels and maintenance Converted stores to Speedway brand and technology platforms Remodel approximately 700 locations to drive marketing enhancements Generate $365 MM of annual EBITDA in 2017 Achieve $190 MM in annual synergies in 2017 $MM $MM Pro Forma Hess EBITDA* Earnings Opportunities (Original Guidance) 35 Form 10 WilcoHess Synergies 40 Operating and G&A Expense Synergies Sources: Company reports, MPC internal estimates 365 Synergies and Marketing Enhancements (Original Guidance) E** 2015E 2016E 2017E WilcoHess Synergies Operating and G&A Expense Synergies Light Product Supply and Logistics Marketing Enhancements **Based on Oct. 1, 2014 closing 45 Light Product Supply and Logistics 70 Marketing Enhancements 2017E Hess EBITDA *Sept. 30, 2013 Form 10 Pro Forma annualized 46

47 Focus on Improving Light Product Breakeven 13 Light Product Breakeven (cpg) Each 1.00 cent per gallon improvement = ~$30 MM annual pretax earnings Total Expenses LPBE = Merchandise Margin Light Product Volume Measure of operating efficiency and merchandise contribution to total expense -1 Speedway Hess Sept. 30, 2013 Form 10 Estimate Potential to drive substantial value in the business over time 47

48 Speedway and Hess Side-by-Side Comparison Hess (a) Speedway (b) Company Operated Sites 1,255 1,478 Fuel Sales (gallons/store/month) Fuel Margin ($/gallon) Merchandise Sales ($/store/month) Merchandise Margin ($/store/month) 198, ,400 $0.137 $0.144 $111,000 $176,800 $29,200 $46,500 Speedway generates an incremental $17,300 of merchandise margin per store per month ~$250 MM of additional annual merchandise margin potential across Hess retail (a) 2013PF data provided in Hess Retail Corporation Form 10 SEC filing (b) 2013 data provided in Marathon Petroleum Corporation 10K SEC filing 48

49 Exceeding Expected Synergies $MM Synergies and Marketing Enhancements E E E 2016E 2017E 2017E Guidance* Speedway Synergies R&M Synergies *Based on original announcement guidance in May

50 MPLX Long-Term Value Proposition for Investors & Stakeholders Underlying assets and customers are of high quality and performing well amidst a challenging market Diverse revenue stream with long-term fee-based contracts Long list of high-return strategic opportunities benefiting producer customers and overall energy infrastructure build-out Strong sponsor with aligned interests and significant portfolio of MLP-qualifying assets Well-positioned in basins leveraged to recovery in commodity prices 50

51 MPLX Gathering & Processing Raw Natural Gas Production Gathering and Compression Processing Plants Mixed NGLs Fractionation Facilities NGL Products Ethane Propane Normal Butane Isobutane Natural Gasoline One of the largest NGL and natural gas midstream service providers Gathering capacity of 5.4 Bcf/d 50% Marcellus/Utica; 50% Southwest Processing capacity of 7.5 Bcf/d ~70% Marcellus/Utica; ~20% Southwest C2 + Fractionation capacity of 470 MBPD ~90% Marcellus/Utica Primarily fee-based business with highly diverse customer base and established long-term contracts 51

52 MPLX Gathering & Processing Commercial strategy Develop a deep understanding Processing of our customer s business Plants Create unique solutions and competitive advantages Build trust and long-term relationships at all levels Combine world-class assets with an intense focus on service and execution Project execution strategy Standardized plants Just-in-time completion Highly reliable operations Significant scale drives efficiencies Ethane Propane NGL Normal Butane Products Isobutane Natural Gasoline 52

53 MPLX - Gathering & Processing Contract Structure Durable long-term partnerships across leading basins Marcellus Utica Southwest Resource Play Marcellus, Upper Devonian Utica Haynesville, Cotton Valley, Woodford, Anadarko Basin, Granite Wash, Cana-Woodford, Permian, Eagle Ford Producers 14 including Range, Antero, EQT, CNX, Noble, Southwestern, Rex and others 10 including Antero, Gulfport, Ascent, Rice, Rex, PDC and others 140 including Anadarko, Newfield, Devon, BP, Chevron, PetroQuest, and others Contract Structure Long-term agreements initially years, which contain renewal provisions Long-term agreements initially years, which contain renewal provisions Long-term agreements initially years, which contain renewal provisions Volume Protection (MVCs) 70% of 2016 capacity contains minimum volume commitments 25% of 2016 capacity contains minimum volume commitments 15% of 2016 capacity contains minimum volume commitments Area Dedications 4 MM acres 3.9 MM acres 1.4 MM acres Inflation Protection Yes Yes Yes 53

54 Northeast NGL Supply Growth Forecast Forecasted to account for 24% of total U.S. NGL production in 2026 Create in-basin demand to support producer customer growth and netbacks Opportunities to access midstream and downstream projects Located near key refining assets in Midwest and East Coast, the largest consumers of finished petroleum products in the U.S. Ethane and propane feedstock is an advantage for petrochemical projects Demand for butane and pentanes from regional refiners 204 BPD Permian Williston 25 BPD DJ 49 BPD 300 BPD Eagle Ford 537 BPD Northeast Incremental NGL Production Growth from 2016 to 2026 (prior to ethane rejection) Source: Bentek Market Call: North American NGLs April 26,

55 MPLX - Focus on Solutions to Enhance Northeast NGL Market Lead the development of infrastructure to link supply of Northeast NGLs with demand markets and enhance value for producer customers Ethane Propane Largest fully integrated de-ethanization system in Marcellus and Utica shales Access to all major takeaway pipelines: ATEX, Mariner East and Mariner West Well-positioned to support development of potential steam crackers in Northeast Supporting the next phase of NGL marketing with unit train deliveries from the region Progressing infrastructure options to move propane to East Coast and Gulf Coast markets Butanes Exploring long-term butane-to-alkylate project to create additional in-basin demand Natural gasoline Cornerstone and Utica build-out projects critical to delivery of natural gasoline to Midwest refinery markets and Western Canada 55

56 MPLX - Northeast Operations Well-Positioned to Access all Major NGL Markets Edmonton Markets Midwest Markets Ontario Markets Northeast Markets Access to all major NGL markets in the U.S. and the world Northeast Operations Key takeaway solutions underway such as Cornerstone, Mariner East 2 and additional projects Mid-Con Markets Gulf Coast Markets MPLX 2016 NGL Marketing by Transport Distribution by Rail Distribution by Pipeline Distribution by Truck Mid-Atlantic Markets Chesapeake Terminal 60% - 65% 30% - 35% 5% - 10% Northeast exports are geographically and structurally advantaged to Europe and parts of South America MPLX developing a comprehensive export solution for producers 56

57 MPLX - Northeast Operations Well-Positioned in Ethane Market Distribution by Pipeline Mariner West Ontario Markets Northeast Operations Mariner East Operate 194 MBPD of de-ethanization capacity in the Marcellus & Utica shales Produce ~80% of the purity ethane being recovered in the Northeast Supply ethane to multiple locations including Canadian, Gulf Coast and international markets Satisfy demand from new large-scale ethane crackers Gulf Coast Markets 57

58 MPLX - Gathering & Processing Marcellus & Utica Operations Record gas processed of 4.3 Bcf/d in 1Q 2016, an increase of 9% from prior quarter Facility utilization continues to increase, averaging 81% over first quarter Processed volumes expected to increase by ~15% over prior year Gathered volumes expected to increase by ~30% over prior year Fractionated volumes expected to increase by ~25% over prior year Area Processed Volumes Average Capacity (MMcf/d) (a) Average Volume (MMcf/d) Utilization (%) Marcellus 3,955 3,152 80% Utica 1,325 1,120 85% 1Q16 Total 5,280 4,272 81% Area Fractionated Volumes Average Capacity (MBPD) (a) (a) Based on weighted average number of days plant(s) in service Average Volume (MBPD) Utilization (%) 1Q16 Total C % 1Q16 Total C % 58

59 MPLX - Gathering & Processing Southwest Operations Total gas processed over 1 Bcf/d in 1Q 2016 Average facility utilization increased to 82% over first quarter Processed volumes expected to increase ~15% over prior year Gathered volumes expected to increase ~5% over prior year Area Processed Volumes Average Capacity (MMcf/d) (a) Average Volume (MMcf/d) Utilization (%) East Texas % Western OK % Southeast OK (b) % Gulf Coast % 1Q16 Total 1,287 1,051 82% (a) Based on weighted average number of days plant(s) in service (b) Processing capacity includes Partnership s portion of Centrahoma Joint Venture and excludes volumes sent to third parties 59

60 MPLX Logistics & Storage High-quality, well-maintained assets that are integral to MPC 1,008 miles of common carrier crude oil pipelines 1,900 miles of common carrier product pipelines Barge dock with approximately 78,000 BPD throughput capacity Four tank farms with approximately 4.5 MM barrels of available storage capacity Butane cavern with 1 MM barrels of available storage capacity 18 towboats and 205 tank barges moving light products, heavy oils, crude oil, renewable fuels, chemicals and feedstocks Predictable cash flows with fee-based revenues and minimal direct commodity exposure 60

61 Executing a Comprehensive Utica Strategy Links Marcellus and Utica condensate and natural gasoline with Midwest refiners Allows diluent movements to Canada Leverages existing MPC/MPLX pipelines and right of way Phased infrastructure investment 16-inch Cornerstone Pipeline, late 2016 completion est. Total budgeted investments ~$500 MM ~$80 MM annual EBITDA 61

62 MPLX - Logistics & Storage Contract Structure Fee-based assets with minimal commodity exposure (c) MPC has historically accounted for over 85% of the volumes shipped on MPLX s crude and product pipelines 100% of the volumes transported via MPLX s inland marine vessels MPC has entered into multiple long-term transportation and storage agreements with MPLX Terms of up to 10 years, beginning in 2012 Pipeline tariffs linked to FERC-based rates Indexed storage fees Fee-for-capacity inland marine business 23% 2015 Revenue Customer Mix 8% $130 MM (a),(b) $47 MM 69% MPC Commited MPC Additional Third Party MPC = 92% $400 MM Notes: (a) Includes revenues generated under Transportation and Storage agreements with MPC (excludes marine agreements) (b) Volumes shipped under joint tariff agreements are accounted for as third party for GAAP purposes, but represent MPC barrels shipped (c) Commodity exposure only to the extent of volume gains and losses 62

63 MPLX Outlook for Marcellus and Utica Operations Supported by Forecasted Production Growth MMcf/d 10,000 YoY Gross Gas Production Growth by Region (MMcf/d) 8,000 History Forecast 6,000 4,000 2,000 - (2,000) (4,000) (6,000) Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Northeast Midwest Southeast Texas Southwest Rockies Net Assets located in prolific Northeast shale plays Moderated volume growth in light of low commodity price environment Quality producercustomers operate more efficiently in response to lower prices Source: Bentek Market Call: North American NGLs April 26,

64 The Marcellus/Utica Resource Play is the Leading U.S. Natural Gas Growth Play Rest of U.S. Billion Cubic Feet per Day (Bcf/d) Marcellus & Utica account for over 20% of total U.S. Gas Supply 55 3 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Note: Wellhead gas production (before flaring and NGL extraction) Sources: As of April 21, Bloomberg (PointLogic Energy Estimates), BENTEK, MarkWest Energy Partners, L.P. Marcellus & Utica Rest of U.S Marcellus & Utica Billion Cubic Feet per Day (Bcf/d) 64

65 MPLX Revised Capital Outlook Announced February 2016 $MM 2,000 1,500 1, $1.7 B 2016 Capital Budget $1.1 B 2016 Revised Capital Outlook* 2016 revised capital outlook Growth $800 MM - $1.2 B Maintenance $61 MM Reduced 2016 midpoint by ~$650 MM Continue to optimize growth capital investments and complete projects on a just-in-time basis *Represents midpoint of MPLX capital expenditure guidance 65

66 MPLX Growth Capital Investment $800 MM to $1.2 B Gathering & Processing capital includes gathering, processing and fractionation infrastructure in Northeast shales and expansion of Southwest operations Logistics & Storage capital includes Cornerstone Pipeline, Robinson butane cavern, and expansion of pipelines and storage capacity 6% 37% 19% Marcellus Region Southwest Region 38% Utica Region Logistics & Storage 66

67 MPLX - Gathering & Processing Growth Projects HOPEDALE FRACTIONATION COMPLEX (MarkWest & MarkWest Utica EMG shared fractionation capacity) C3+ Fractionation I & II 120,000 Bbl/d Operational C3+ Fractionation III 60,000 Bbl/d 2Q17 OHIO GATHERING & OHIO CONDENSATE Carroll MarkWest Utica EMG s Joint Venture with Summit Midstream, LLC Stabilization Facility 23,000 Bbl/d Operational Tuscarawas CADIZ COMPLEX Cadiz I III 525 MMcf/d Operational Cadiz IV 200 MMcf/d 2017 De-ethanization 40,000 Bbl/d Operational SENECA COMPLEX Seneca I IV 800 MMcf/d Operational Gathering System Marcellus Complex Utica Complex NGL Pipeline Purity Ethane Pipeline NGL/Purity Ethane Pipeline ATEX Express Pipeline TEPPCO Product Pipeline Sunoco Mariner Pipeline Noble Harrison Monroe Belmont MOBLEY COMPLEX Mobley I V 920 MMcf/d Operational De-ethanization 10,000 Bbl/d Operational WEST VIRGINIA OHIO Jefferson Marshall Wetzel Doddridge Hancock Brooke Ohio Washington Beaver Butler PENNSYLVANIA Washington Allegheny KEYSTONE COMPLEX Bluestone I III & Sarsen I 410 MMcf/d Operational Bluestone IV 200 MMcf/d TBD C2+ Fractionation 67,000 Bbl/d Operational De-ethanization 34,000 Bbl/d 2017 HARMON CREEK COMPLEX Harmon Creek I 200 MMcf/d 2017 De-ethanization 20,000 Bbl/d 2017 HOUSTON COMPLEX Houston I IV 555 MMcf/d Operational C2+ Fractionation 100,000 Bbl/d Operational Greene MAJORSVILLE COMPLEX Majorsville I VI 1,070 MMcf/d Operational Majorsville VII 200 MMcf/d TBD De-ethanization 40,000 Bbl/d Operational SHERWOOD COMPLEX Sherwood I VI 1,200 MMcf/d Operational De-ethanization 40,000 Bbl/d Operational Sherwood VII 200 MMcf/d 2017 Note: Forecasted completion dates of projects are shown in green. New Mexico Delaware Basin Texas HIDALGO COMPLEX 200 MMcf/d Operational 67

68 Butane-to-Alkylate (BTA) Project Developing Mt. Belvieu Capabilities in the Northeast $1.5 - $2.0 B in Capital Expenditures Alkylate is an ideal gasoline blending component that will become increasingly valuable with pending fuel regulations (Tier 3, NAAQS, CAFÉ) The U.S. still imports over 500 MBPD (a) of gasoline blendstock components into the Northeast; opportunity to displace imports Upgrade butane from the Marcellus and Utica into alkylate, leveraging MPLX and MPC s position Provides additional local demand for Marcellus and Utica NGL production, and a new supply source of refinery blendstock (a) Source: EIA Enhancing the gasoline blendstock value chain Combines MPLX s leading Northeast NGL position with MPC s premier downstream expertise to transform refinery blendstock supply in the Northeast and Midwest (a) 68

69 Northeast and Long-Haul NGL Pipeline and Related Infrastructure Development $1 1.5 B in Capital Expenditures 1 NGL/Light Products to East Coast - Large-scale East Coast LPG export terminal - Rail/pipeline to East Coast export terminal - Optionality and operational certainty for producers 2 Northeast Operations 1 EAST COAST BLENDING TERMINALS EXPORTS TO INTERNATIONAL MARKETS 2 Centennial Pipeline - Repurpose refined products line to deliver NGLs to the Gulf Coast GULF COAST MARKETS 69

70 Expanding Dry Gas Gathering in Ohio, Pa., & W.Va. $500 MM to $1 B of Opportunities The Utica Shale is potentially the most economically viable dry gas play in the U.S. Existing Ohio gathering system is critical for development of the highly productive and economic dry gas Utica acreage New, large-scale dry gas gathering system being constructed in eastern Ohio counties Underpinned by a long-term, fee-based contract with Ascent Resources Capacity over 2.0 Bcf/d, with more than 250 miles of pipeline Well-positioned to capture additional dry gas opportunities in the region Source: Producer investor presentations 70

71 Midstream Logistics Growth Investment Summary ($MM) MPC MPLX Total Estimated Annual EBITDA Estimated In-Service Sandpiper $1,000 $1,000 $ Blue Water investment 480 (a) 480 (a) Cornerstone and Utica Build-out $ MPC Feedstock Cost of Supply Improvements Pipeline and Tank Farm Expansions Subtotals $1,542 (a) $803 $2,345 (a) $345 (a) Includes both MPC capital investment and assumption of debt 71

72 MPLX s Robust Portfolio of Organic Growth Capital and Drop-down Investment Opportunities $26-32 B to Support Distribution Growth L&S Organic Capital through 2018* MPC Drop-down Capital (Assumes 8-10x EBITDA multiple) G&P Organic Capital 2016 to 2020 ($1.5 B annual run-rate) MPLX/MPC Synergistic Capital $12-15 B $0.8 B $7.5 B $6-9 B $ B $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 *Does not include MPC organic growth investments, including Sandpiper and blue water equity, which are included in MPC drop-down capital 72

73 Growing MPC s Drop-down Inventory Provides Visibility to Significant Growth MPC Drop-down Capital (Assumes 8-10x EBITDA multiple) $12-15 B $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 Pipelines ~ 5,400 miles of additional pipelines (owns, leases or has an ownership interest) Southern Access Extension Pipeline and Sandpiper Pipeline* Marine Terminals Railcars Refineries Fuels Distribution Equity in 50/50 blue water JV with Crowley** 61 light product; ~20 MMBBL storage; 187 loading lanes 18 asphalt; ~4 MMBBL storage; 68 loading lanes Utica investments (crude & condensate trucking and truck/barge terminals) 21 owned and 2,189 leased 793 general service; 1,102 high pressure; 315 open-top hoppers 59 MMBBL storage (tanks and caverns) 25 rail loading racks and 26 truck loading racks; 7 owned and 11 non-owned docks 2 condensate splitter investments 20 B gallons of fuels distribution volume at MPC/Speedway *Sandpiper Pipeline expected 2019 in-service **Three vessels in-service; one vessel under construction 73

74 MPLX s Attractive Portfolio of Organic Growth Capital L&S projects expected to generate ~$125 MM of EBITDA $ L&S Organic Capital through 2018(1) $0 $2 $4 $6 $8 $10 $12 Cornerstone and Utica Build-out Industry solution for Utica liquids $14 $16 $18 $20 $22 $24 $ B $28 $30 $32 Pipeline and Tank Farm Expansions MPC and third-party logistics solutions Robinson Butane Cavern MPC shifting third-party services to MPLX and optimizing Robinson butane handling Other projects in development(2) (1)Estimate does not include MPC organic growth investments, including Sandpiper and blue water equity, which are included in MPC drop-down capital $0.8 B investment and associated EBITDA does not include other projects in development (2)Estimated 74

75 MPLX s Attractive Portfolio of Organic Growth Capital G&P projects expected to generate ~$1 B of EBITDA Northeast Southwest G&P Organic Capital 2016 to 2020 ($1.5 B annual run-rate) $7.5 B $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 Organic Growth Opportunities in the Northeast: Expansion of gas gathering systems Development of additional processing and fractionation infrastructure Expansion of additional NGL transportation logistics Antrim Shale Canonsburg Office Cadiz Office Utica Shale Marcellus Shale Huron/Berea Shale Marcellus Utica Northeast Cana-Woodford Shale Granite Wash Formation Tulsa Office Arkoma-Woodford Shale Haynesville Shale Barnett Shale Permian Basin Houston Office Southwest Eagle Ford Shale Organic Growth Opportunities in the Southwest: Expansion of gathering and processing infrastructure to support continued development of the Cana-Woodford and Haynesville Greenfield development of midstream system in the Delaware Basin of the Permian 75

76 Leveraging Premier Positions Across the Value Chain with Substantial Incremental Combined Opportunities MPLX/MPC Synergistic Capital $6-9 B $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 Opportunity Investment Northeast (N.E.) alkylation facility $ B 2 N.E. gasoline blending/storage/dehydrogenation $ B 3 N.E. and long-haul NGL pipeline/infrastructure $ B Rogersville shale infrastructure $1.0 B 5 Northeast dry gas gathering (Ohio, Pa., W.Va.) $ B Ethane cracker infrastructure $ B 7 Midstream infrastructure to support refineries $ B 8 NGL logistics infrastructure in the USGC and SW $ B 9 N.E. condensate stabilization expansion $0.1 B 76

77 MPLX 2016 Forecast Financial Measure Adjusted Net Income (a) 2016 Forecast $325 MM - $485 MM Adjusted EBITDA $1.25 B - $1.40 B Distributable Cash Flow $970 MM - $1.10 B Distribution Growth Rate (b) 12% - 15% Growth Capital Expenditures $800 MM - $1.20 B $XXX-$XXX $X,XXX-$X,XXX (a) Net income excluding a pre-tax, non-cash goodwill impairment change of $129 MM (b) Full-year distribution growth rate 77

78 MPLX and MPC are Aligned MPLX Organizational Structure 2% GP interest Marathon Petroleum Corporation and Affiliates (NYSE: MPC) 100% interest 21% Public LP interest Preferred Common Class B MPLX GP LLC (our General Partner) MPLX LP* (NYSE: MPLX) (the Partnership ) r 77% LP interest MPC views MPLX as integral to its operations and is aligned with its success and incentivized to grow MPLX MPC owns 21% LP interest and 100% of MPLX s GP interest and IDRs MPLX Operations LLC 100% interest MarkWest Energy Partners, L.P. 100% interest 100% interest Hardin Street Marine LLC MPLX Pipe Line Holdings LLC MPLX Terminal and Storage LLC MarkWest Hydrocarbon, Inc. MarkWest Operating Subsidiaries As of May 13, 2016 *All Class A units of MPLX are owned by MarkWest Hydrocarbon, Inc. and eliminated in consolidation. Preferred convertible securities are included with the public ownership percentage and depicted on an as-converted basis. All Class B units are owned by M&R MWE Liberty, LLC and included with the public ownership percentage and depicted on an as-converted basis. 78

79 MPLX s Strong Financial Flexibility to Manage and Grow Asset Base Committed to maintaining investment grade credit profile ($MM except ratio data) As of 3/31/16 Completed a $1 B private placement of convertible preferred securities with third-party investors Completed $315 MM of opportunistic ATM issuance in first quarter 2016 Anticipated funding needs are fulfilled for 2016 and into 2017 Total assets 15,978 Total debt 5,154 Total equity 9,655 Consolidated total debt to pro forma adjusted EBITDA ratio (a) 4.3x Remaining capacity available under $2.0 B revolving credit agreement 1,666 Remaining capacity available under $500 MM credit agreement with MPC 62 (a) Calculated using face value total debt and pro forma Adjusted EBITDA, which included acquisitions. 79

80 Opportunity Set for Investment is Expanded Multiple Funding Options - Extensive Financial Flexibility Capital Sources Earnings MLP Distribution MLP Proceeds Capital Markets Sustaining Interest Taxes Maintenance Dividends Capital Return Growth Refining Major Projects Midstream Pipeline Projects Terminal Projects Marine Projects Retail MPC Sponsor Support for MPLX Equity Incubate Projects Growth Management Capacity to incubate MPLX growth projects at MPC Ability to take back MPLX units as payment for drop-downs Intercompany funding Other options Sustaining Distributions Coverage Maintenance Interest Capital Sources Earnings Equity (Units) Debt MPC Support Growth Cornerstone MPLX Pipeline Butane Cavern MarkWest Investments MPC Drop-downs 80

81 Sustaining Core Liquidity Under All Environments $30/BBL crude price environment Operating Requirements (Non-Discretionary Capex, Interest, Taxes, Dividends) Unexpected Liquidity Needs (Letters of Credit, Operating Upset, Working Capital) Crude Price - Core Liquidity Sensitivity (Primarily a function of working capital exposure and credit availability) $MM 4,000 3,500 3,000 2,500 2,000 1,500 1, ,300 Requirements 800 Downside Operating Cash Flow 2,500 Revolver 400 Trade Receivables Facility (a) 600 Implied Cash Target Cash 750-1, (a) $1.0 B facility - forecasted 2016 availability is approximately $400 MM. Availability is a function of refined product selling prices. 81