SLIDE 1
T hir d Quar te r 2020 Confe r e nc e Call
No ve mb e r 2, 2020 (a s re vise d No v. 6)
2
F
- r
war d L
- oking State me nts
T his pre se ntatio n c o ntains fo rward-lo o king state me nts within the me aning o f fe de ral se c uritie s laws re g arding Maratho n Pe tro le um Co rpo ratio n (MPC). T he se fo rward-lo o king state me nts re late to , amo ng o the r thing s, e xpe c tatio ns, e stimate s and pro je c tio ns c o nc e rning the b usine ss and o pe ratio ns, strate g y and value c re atio n plans o f MPC. I n ac c o rdanc e with “safe harb o r” pro visio ns o f the Private Se c uritie s L itig atio n Re fo rm Ac t o f 1995, the se state me nts are ac c o mpanie d b y c autio nary lang uag e ide ntifying impo rtant fac to rs, tho ug h no t ne c e ssarily all suc h fac to rs, that c o uld c ause future o utc o me s to diffe r mate rially fro m tho se se t fo rth in the fo rward-lo o king state me nts. Yo u c an ide ntify fo rward-lo o king state me nts b y wo rds suc h as “antic ipate ,” “b e lie ve ,” “c o mmitme nt,” “c o uld,” “de sig n,” “e stimate ,” “e xpe c t,” “fo re c ast,” “g o al,” “g uidanc e ,” “imply,” “inte nd,” “may,” “o b je c tive ,” “o ppo rtunity,” “o utlo o k,” “plan,“ “po lic y,” “po sitio n,” “po te ntial,” “pre dic t,” “prio rity,” “pro je c t,” “pro po sitio n,” “pro spe c tive ,” “pursue ,” “se e k,” “sho uld,” “strate g y,” “targ e t,” “wo uld,” “will” o r o the r similar e xpre ssio ns that c o nve y the unc e rtainty o f future e ve nts o r o utc o me s. Suc h fo rward-lo o king state me nts are no t g uarante e s o f future pe rfo rmanc e and are sub je c t to risks, unc e rtaintie s and o the r fac to rs, so me o f whic h are b e yo nd the c o mpany’ s c o ntro l and are diffic ult to pre dic t. F ac to rs that c o uld c ause MPC’ s ac tual re sults to diffe r mate rially fro m tho se implie d in the fo rward- lo o king state me nts inc lude b ut are no t limite d to : the e ffe c ts o f the re c e nt o utb re ak o f COVI D-19, inc luding any re late d g o ve rnme nt po lic ie s and ac tio ns, and the adve rse impac t the re o f o n o ur b usine ss, financ ial c o nditio n, re sults o f o pe ratio ns and c ash flo ws, inc luding , b ut no t limite d to , o ur g ro wth, o pe rating c o sts, lab o r availab ility, lo g istic al c apab ilitie s, c usto me r de mand fo r o ur pro duc ts and industry de mand g e ne rally, marg ins, inve nto ry value , c ash po sitio n, taxe s, the pric e o f o ur se c uritie s and trading marke ts with re spe c t the re to , o ur ab ility to ac c e ss c apital marke ts, and the g lo b al e c o no my and financ ial marke ts g e ne rally; the e ffe c ts o f the re c e nt o utb re ak o f COVI D-19, and the c urre nt e c o no mic e nviro nme nt g e ne rally, o n o ur wo rking c apital, c ash flo ws and liq uidity, whic h c an b e sig nific antly affe c te d b y de c re ase s in c o mmo dity pric e s; o ur ab ility to re duc e c apital and o pe rating e xpe nse s; with re spe c t to the pro po se d sale o f Spe e dway, the ab ility to suc c e ssfully c o mple te the sale within the e xpe c te d time frame , o n the e xpe c te d te rms, o r at all, b ase d o n nume ro us fac to rs, inc luding the failure to satisfy any o f the c o nditio ns to the c o nsummatio n o f the pro po se d transac tio n (inc luding o b taining c e rtain g o ve rnme ntal o r re g ulato ry appro vals o n the pro po se d te rms and sc he dule ), the o c c urre nc e o f any e ve nt, c hang e o r o the r c irc umstanc e that c o uld g ive rise to the te rminatio n o f the pro po se d transac tio n; MPC’ s ab ility to utilize the pro c e e ds as antic ipate d; the risk that the dissyne rg y c o sts, c o sts o f re struc turing transac tio ns and o the r c o sts inc urre d in c o nne c tio n with the pro po se d transac tio n will e xc e e d o ur e stimate s; and o ur ab ility to c apture value and re alize the o the r e xpe c te d b e ne fits fro m the asso c iate d
- ng o ing supply re latio nship fo llo wing c o nsummatio n o f the pro po se d sale ; the risk that the c o st saving s and any o the r syne rg ie s fro m o ur ac q uisitio n o f Ande avo r and the ac q uisitio n o f Ande avo r L
- g istic s L
P (ANDX) b y MPL X L P (MPL X) may no t b e fully re alize d o r may take lo ng e r to re alize than e xpe c te d, inc luding whe the r the ANDX transac tio n will b e ac c re tive within the e xpe c te d time frame o r at all; disruptio n fro m the Ande avo r o r ANDX transac tio ns making it mo re diffic ult to maintain re latio nships with c usto me rs, e mplo ye e s o r supplie rs; risks re lating to any unfo re se e n liab ilitie s o f Ande avo r o r ANDX, re spe c tive ly; the risk o f furthe r impairme nts; the ab ility to c o mple te any dive stiture s o n c o mme rc ially re aso nab le te rms and/o r within the e xpe c te d time frame , and the e ffe c ts o f any suc h dive stiture s o n the b usine ss, financ ial c o nditio n, re sults o f o pe ratio ns and c ash flo ws; future le ve ls o f re ve nue s, re fining and marke ting marg ins, o pe rating c o sts, g aso line and distillate marg ins, me rc handise marg ins, inc o me fro m o pe ratio ns, ne t inc o me and e arning s pe r share ; the re g io nal, natio nal and wo rldwide availab ility and pric ing o f re fine d pro duc ts, c rude o il, natural g as, NGL s and o the r fe e dsto c ks; c o nsume r de mand fo r re fine d pro duc ts; the ab ility to manag e disruptio ns in c re dit marke ts o r c hang e s to c re dit rating s; future le ve ls o f c apital, e nviro nme ntal and mainte nanc e e xpe nditure s; g e ne ral and administrative and o the r e xpe nse s; the suc c e ss o r timing o f c o mple tio n o f o ng o ing o r antic ipate d c apital o r mainte nanc e pro je c ts, inc luding the po te ntial c o nve rsio n o f the Martine z Re fine ry to a re ne wab le die se l fac ility; the re c e ipt o f re le vant third party and/o r re g ulato ry appro vals; the re liab ility o f pro c e ssing units and o the r e q uipme nt; the suc c e ssful re alizatio n o f b usine ss strate g ie s, g ro wth o ppo rtunitie s and e xpe c te d inve stme nt; share re purc hase autho rizatio ns, inc luding the timing and amo unts o f suc h re purc hase s; the ade q uac y o f c apital re so urc e s and liq uidity, inc luding availab ility, timing and amo unts o f fre e c ash flo w ne c e ssary to e xe c ute b usine ss plans, c o mple te anno unc e d c apital pro je c ts and to e ffe c t any share re purc hase s o r to maintain o r inc re ase the divide nd; the e ffe c t o f re struc turing o r re o rg anizatio n o f b usine ss c o mpo ne nts, inc luding tho se unde rtake n in c o nne c tio n with the Spe e dway sale and wo rkfo rc e re duc tio n; the po te ntial e ffe c ts o f judic ial o r o the r pro c e e ding s, inc luding re me dial ac tio ns invo lving re mo val and re c lamatio n o b lig atio ns unde r e nviro nme ntal re g ulatio ns, o n the b usine ss, financ ial c o nditio n, re sults o f o pe ratio ns and c ash flo ws; c o ntinue d o r furthe r vo latility in and/o r de g radatio n o f g e ne ral e c o no mic , marke t, industry o r b usine ss c o nditio ns as a re sult o f the COVI D-19 pande mic (inc luding any re late d g o ve rnme nt po lic ie s and ac tio ns), o the r infe c tio us dise ase o utb re aks, natural hazards, e xtre me we athe r e ve nts o r o the rwise ; g e ne ral e c o no mic , po litic al o r re g ulato ry de ve lo pme nts, inc luding c hang e s in g o ve rnme ntal po lic ie s re lating to re fine d pe tro le um pro duc ts, c rude o il, natural g as o r NGL s, re g ulatio n o r taxatio n and o the r e c o no mic and po litic al de ve lo pme nts (inc luding tho se c ause d b y pub lic he alth issue s and o utb re aks); no n-payme nt o r no n-pe rfo rmanc e b y o ur pro duc e r and o the r c usto me rs; c o mplianc e with fe de ral and state e nviro nme ntal, e c o no mic , he alth and safe ty, e ne rg y and o the r po lic ie s, pe rmitting and re g ulatio ns, inc luding the c o st o f c o mplianc e with the Re ne wab le F ue l Standard, and/o r e nfo rc e me nt ac tio ns initiate d the re unde r; the e ffe c ts o f ac tio ns o f third partie s suc h as c o mpe tito rs, ac tivist inve sto rs o r fe de ral, fo re ig n, state o r lo c al re g ulato ry autho ritie s o r plaintiffs in litig atio n; the impac t o f adve rse marke t c o nditio ns o r o the r similar risks to tho se ide ntifie d he re in affe c ting MPL X; and the fac to rs se t fo rth unde r the he ading “Risk F ac to rs” in MPC’ s Annual Re po rt o n F
- rm 10-K fo r the ye ar e nde d De c . 31, 2019, and in F
- rms 10-Q and o the r filing s, file d with the SE
- C. Co pie s o f MPC's F
- rm
10-K, F
- rms 10-Q and o the r SE
C filing s are availab le o n the SE C’ s we b site , MPC's we b site at https://www.maratho npe tro le um.c o m/I nve sto rs/ o r b y c o ntac ting MPC's I nve sto r Re latio ns o ffic e . Co pie s o f MPL X's Annual Re po rt o n F
- rm 10-K fo r the ye ar
e nde d De c e mb e r 31, 2019, F
- rms 10-Q and o the r SE
C filing s are availab le o n the SE C’ s we b site , MPL X's we b site at http://ir.mplx.c o m o r b y c o ntac ting MPL X's I nve sto r Re latio ns o ffic e . We have b ase d o ur fo rward-lo o king state me nts o n o ur c urre nt e xpe c tatio ns, e stimate s and pro je c tio ns ab o ut o ur b usine ss and industry. We c autio n that the se state me nts are no t g uarante e s o f future pe rfo rmanc e and yo u sho uld no t re ly unduly o n the m, as the y invo lve risks, unc e rtaintie s, and assumptio ns that we c anno t pre dic t. I n additio n, we have b ase d many o f the se fo rward-lo o king state me nts o n assumptio ns ab o ut future e ve nts that may pro ve to b e inac c urate . While o ur manag e me nt c o nside rs the se assumptio ns to b e re aso nab le , the y are inhe re ntly sub je c t to sig nific ant b usine ss, e c o no mic , c o mpe titive , re g ulato ry and o the r risks, c o nting e nc ie s and unc e rtaintie s, mo st o f whic h are diffic ult to pre dic t and many o f whic h are b e yo nd
- ur c o ntro l. Ac c o rding ly, o ur ac tual re sults may diffe r mate rially fro m the future pe rfo rmanc e that we have e xpre sse d o r fo re c ast in o ur fo rward-lo o king state me nts. Any fo rward-lo o king state me nts spe ak o nly as o f the date o f the applic ab le
c o mmunic atio n and we unde rtake no o b lig atio n to update any fo rward-lo o king state me nts e xc e pt to the e xte nt re q uire d b y applic ab le law. Non- GAAP F ina nc ia l Me a sur e s Adjuste d e a rning s, E BI T DA, c a sh pro vide d fro m o pe ra tio ns b e fo re c ha ng e s in wo rking c a pita l, Re fining a nd Ma rke ting ma rg in a nd Re ta il to ta l ma rg in a re no n-GAAP fina nc ia l me a sure s pro vide d in this pre se nta tio n. Re c o nc ilia tio ns to the ne a re st GAAP fina nc ia l me a sure s a re inc lude d in the Appe ndix to this pre se nta tio n. T he se no n-GAAP fina nc ia l me a sure s a re no t de fine d b y GAAP a nd sho uld no t b e c o nside re d in iso la tio n o r a s a n a lte rna tive to ne t inc o me a ttrib uta b le to MPC, ne t c a sh pro vide d b y (use d in) o pe ra ting , inve sting a nd fina nc ing a c tivitie s, Re fining a nd Ma rke ting inc o me fro m o pe ra tio ns, Spe e dwa y inc o me fro m o pe ra tio ns o r o the r fina nc ia l me a sure s pre pa re d in a c c o rda nc e with GAAP.