Investor Presentation May 2015 Forward Looking Statements This - PowerPoint PPT Presentation

Investor Presentation May 2015

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," "objective," "expect," "forecast," “plan,” "project," "potential," “target,” "co uld," "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 issuer's control and are difficult to predict. Factors that could cause MPLX’s actual results to differ materially from those in the forward-looking statements include: the adequacy of our capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions and execute our business plan; 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 our 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 our commercial agreements; our ability to successfully implement our growth plan, whether through organic growth or acquisitions; modifications to earnings and distribution growth objectives; federal and state environmental, economic, health and safety, energy and other policies and regulations; changes to MPLX’s capital plan; other risk factors inherent to our 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, 2014, filed with the Securities and Exchange Commission (SEC). Factors that could cause MPC’s actual results to differ materially from those in the forward -looking statements include: changes to the expected construction costs and timing of pipeline projects; 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; an easing or 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 suc cessfully implement growth opportunities; modifications to MPLX earnings and distribution growth objectives; impacts from MPC’s repurchases of shares of MPC common stock under its s hare repurchase authorizations, including the timing and amounts of any common stock repurchases; federal and state environmental, economic, health and safety, energy and other policies and regulations ; MPC’s ability to successfully integrate the acquired Hess retail operations and achieve the strategic and other expected objectives relating t o the acquisition; changes to MPC’s capital plan; other risk factors inherent to MPC’s industry; and the factors set forth under the heading "Risk Factors" in MPC's Annual Rep ort on Form 10-K for the year ended Dec. 31, 2014, filed with SEC. 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 forward-looking statements. Non GAAP Financial Measures EBITDA, adjusted free cash flow and distributable cash flow are non-GAAP financial measures provided in this presentation. EBITDA, adjusted free cash flow and distributable cash flow reconciliations to the nearest GAAP financial measure are included in the Appendix to this presentation. EBITDA, adjusted free cash flow and distributable cash flow are not defined by GAAP and should not be considered in isolation or as an alternative to net income, net cash provided by (used in) operating activities or other financial measures prepared in accordance with GAAP. 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

Key Investment Highlights  Announced plans to substantially accelerate the growth of MPLX  Accelerated growth supports significant increase in distribution growth rate  Substantial portfolio of MLP-qualifying assets held by sponsor  Strategically located, high-quality, well-maintained assets  Predictable cash flows with fee-based revenues and minimal direct commodity exposure  Visibility to significant organic growth in addition to potential drop portfolio  Strong financial and liquidity position 3

Substantial Acceleration of MPLX  Acquired additional 30.5% interest in MPLX Pipe Line Holdings on December 1, 2014 for $800 MM (represents ~10.0x multiple of NTM EBITDA)  MPC has offered to sell marine assets to MPLX  Distributable cash flow growth supports accelerated distribution growth over the next five years  Rapidly changing midstream business environment creates multiple opportunities where size matters  Accelerated growth provides increased size and scale – Enhances MPLX’s capacity to undertake projects independently – Better access to capital markets  Sponsor’s acquisition of Hess retail has expanded its strategic options and increased qualifying income for fuels distribution  MPLX expected to evolve into large-cap, diversified logistics MLP 4

Marine Business Overview Fully Integrated Marine Transportation and Service Provider  Marine Transportation – Premier inland service provider with best-in-class assets – 18 towboats and 203 tank barges moving light products, heavy oils, l EBI BITDA A ~$115 ~$115 MM An Annual crude oil, renewable fuels, chemicals and feedstocks  Marine Repair Facility – State-of-the-art facility in Catlettsburg, Ky., maximizes asset utilization and integrity Barge rges Boats ts 203 203 18 18  Fleeting Properties – Strategically located properties in key markets allowing for staging and flexibility  Fee-for-capacity contracts with MPC  Estimated annual EBITDA of ~$115 MM 5

Substantial Acceleration of MPLX Adjusted EBITDA Attributable to MPLX  Evolve MPLX into large-cap, diversified 500 450 logistics MLP 400  ~$450 MM of run-rate Adjusted EBITDA by end of 2015 300 $MM 257  Annual LP distribution growth rate to average 200 166 mid-20% over next five years 111 – ~29% distribution growth for 2015 100  Executed first step of accelerated growth 0 strategy  Announced sale of marine assets to MPLX  MPC has $1.6 B of MLP-eligible EBITDA* * Includes EBITDA attributable to marine assets 6

Strategic Relationship with Sponsor Marathon Petroleum  Fortune 25 company  Investment grade credit profile  Fourth largest U.S. refiner – Largest in Midwest  2014 Revenues and other income: $98.1 B  2014 Net income attributable to MPC: $2.52 B  Approximately 2,750 Speedway convenience stores  Approximately 5,500 Marathon Brand retail outlets  Extensive terminal and pipeline network 7

MPC’s Focused and Integrated Network Refineries Biodiesel/Ethanol Facilities Marketing Area MPC Refineries Light Product Terminals MPC owned and Part-owned Third Party Asphalt/Heavy Oil Terminals MPC Owned Third Party Terminals Pipelines Water Supplied Terminals Coastal Inland Pipelines MPC Owned and Operated MPC Interest: Operated by MPC MPC Interest: Operated by Others Pipelines Used by MPC Coastal Water Terminals Inland Water Terminals Ethanol Facility Biodiesel Facility Tank Farms Butane Cavern Pipelines Speedway Brand Marketing As of March 31, 2015 Barge Dock 8

MPC and MPLX Strategically Located Assets  Strategically located near Bakken Williston emerging shale plays Basin Appalachian – Marcellus, Utica, New Albany, Basin Antrim Michigan Basin Devonian (Ohio) Antrim, and Illinois Basin in Forest Excello-Mulky Marcellus City Basin Illinois Woodford Utica Pennsylvania, Ohio, Indiana, Basin Mississ- New ippian Cherokee Platform Albany Michigan, and Illinois Lime Fayetteville Chattanooga  MPC is currently transporting Black Warrior Anadarko Arkoma Basin Conasauga Basin Basin Floyd- Neal Valley & Ridge condensate from the Utica play Ardmore Barnett TX-LA-MS Province Ft. Worth Basin Salt Basin Tuscaloosa Basin  MPC is continuing to evaluate Eagle Ford Haynesville- Pearsall Bossier various significant growth Western Gulf opportunities in the Utica and Shale Plays Stacked Plays Shallowest / Youngest Current Plays other shale plays Intermediate Depth / Age Prospective Plays Deepest / Oldest Basins Source: EIA MPC Refineries 9

MPLX Assets are Integral to MPC 10