Raymond James Investor Conference Presenter: Beth Hunter, Speedway Sr. Vice President Finance, ITS and CFO

Transcription

1 Raymond James Investor Conference Presenter: Beth Hunter, Speedway Sr. Vice President Finance, ITS and CFO March 2, 2015

2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding both MPC and 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, estimate, "objective," expect, forecast, "plan," project, "potential," 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 in the forward-looking statements include: our ability to successfully integrate the acquired Hess retail operations and achieve the strategic and other expected objectives relating to the acquisition, including any expected synergies; 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; our ability to successfully implement growth opportunities; modifications to MPLX earnings and distribution growth objectives; impacts from our repurchases of shares of MPC common stock under our share 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, including the cost of compliance with the Renewable Fuel Standard; 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 Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (SEC). Factors that could cause MPLX s 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 its growth plans, whether through organic growth or acquisitions; 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 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, 2014, 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 could also have material adverse effects on forward-looking statements. Non GAAP Financial Measures EBITDA, cash provided from operations before changes in working capital and free cash flow are non-gaap financial measures provided in this presentation. EBITDA, cash provided from operations before changes in working capital and free cash flow reconciliations to the nearest GAAP financial measures are included in the Appendix to this presentation. EBITDA, cash provided from operations before changes in working capital and free cash flow are not defined by GAAP and should not be considered in isolation or as an alternative to net income attributable to MPC, net cash provided by (used in) operating, investing and financing activities or other financial measures prepared in accordance with GAAP. 2

3 2014 Highlights Generated $2.5 B of earnings Speedway achieved record earnings Speedway is nation s second largest convenience store chain with Hess acquisition Executed first step in accelerated growth plan for MPLX Returned $2.7 B of capital to shareholders Announced $2.5 B capital plan for

4 Current Trends Positive domestic outlook Sustainable U.S. refining advantages U.S. product exports growth MPC performs well in volatile market conditions Significant infrastructure investments in U.S. 4

5 U.S. Refined Product Demand MMBD Actual Gasoline Gasoline ex ethanol Annual average forecasted growth Distillate Jet Fuel Resid Forecast Compounded Annual Growth Rates 2020 vs % -0.4% +1.9% +1.0% -3.5% Distillate demand growth outpaces other products Gasoline will be constrained by CAFE standards and modest growth in biofuels penetration Residual fuel demand continues to fall Sources: DOE/EIA Estimate, MPC 5

6 Crude Oil Inventory Impacting Differentials 220 PADD 3 Crude Stocks 57 Cushing Crude Stocks MMB MMB Source: EIA 6

7 Sustaining U.S. Refining Advantage 20 International Fuel Cost Comparison 15 $/MMBtu Henry Hub (NYMEX prompt price) Japanese Liquefied Natural Gas (Import Price)* European Natural Gas (Avg Import Border Price)* USGC #6 Fuel Oil-1% Sulfur (NYH-Avg spot price)** *World Bank Assessment **Petroleum Argus Assessment 7

8 U.S. Gross Refined Product Exports Increasing MMBD Gasolines Kero-Jet Diesels Product Exports Source: U.S. Energy Information Administration *Through November

9 MPC s Value of Integration 2,800 2,600 RIN $ Distortion Crude Price Decline $MM 2,400 2,200 2,000 1,800 1,600 1,400 1,200 Flexible refining system Large retail presence Extensive logistics 1,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Gross Margin Indicator Reported Gross Margin 9

10 Our Priorities for Our Investors Maintain top-tier safety and environmental performance $110 $100 Share Price Sustain our focus on shareholder returns $90 $80 Balance capital returns with value-enhancing investments Grow higher valued and stable cash-flow businesses $70 $60 $50 $40 $30 $20 Spinoff Enhance the margins in our refining operations Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Source: Thomson Reuters 10

11 MPC Delivering Peer Leading Return of Capital Twelve months ended December 31, % 10.7% 10.0% 8.0% 6.0% 4.0% 8.6% 8.5% 1.5% 4.3% 7.6% 8.5% 5.2% 6.5% 6.7% 4.4% 2.0% 0.0% 2.1% 2.7% 2.4% 2.0% 2.3% MPC HFC PSX TSO VLO Dividend Yield Special Dividend Yield 2014 Share Repurchase/Share Yield *Total Capital Return Yield: Twelve months ended December 31, 2014 dividends per share, plus twelve months ended December 31, 2014 special dividends per share, plus twelve months ended December 31, 2014 share repurchase per share, all divided by twelve month average share price from December 30, 2013 through December 31, Share repurchase cost for Q is estimated for Valero. 11

12 2015 Capital Investment Plan $2.5 B Speedway Midstream* 35% 18% 5% 15% Corporate & Other 27% Refining Sustaining Capital Refining Margin Enhancement Refining & Marketing $1,276 MM Includes $234 MM for midstream investments Speedway $452 MM Pipeline Transportation $659 MM Corporate & Other $140 MM *Includes Pipeline Transportation segment and midstream investments included in the R&M segment. 12

13 Substantial Acceleration of MPLX Growth $MM Adjusted EBITDA Attributable to MPLX >2x 4Q 2014 EBITDA Annualized Evolve MPLX into large-cap, diversified logistics MLP ~$450 MM of run-rate Adjusted EBITDA by end of 2015 Annual LP distribution growth rate to average mid-20% over next five years ~29% distribution growth for 2015 Executed first step of accelerated growth strategy MPC has $1.6 B of MLP-eligible EBITDA 13

14 Substantial Acceleration of MPLX Growth $MM $57 Total Distributions to MPC $76 $124 $187 $267 $389 $ E 2016E 2017E 2018E 2019E GP Distributions* LP Distributions CAGR 27% Rapidly changing midstream business environment creates multiple opportunities where size matters Hess retail acquisition has expanded MPC s opportunity set and strategic options Market has not appropriately reflected MPLX contribution to total value of MPC enterprise *GP distributions include incentive distribution rights. 14

15 Investing in Significant Midstream Growth Projects Sandpiper MPC Investment: $1.0 B - $1.2 B MPC Equity: 27% - 30% 2017 completion Southern Access Extension (SAX) MPC Investment: ~$305 MM MPC Equity: 35% Late 2015 completion Cornerstone Binding open season underway MPLX Estimated Investment: ~$200 MM $38 MM EBITDA Late 2016 completion Bakken Canadian MPC Refinery Superior, WI MPLX Products Pipeline SAX Patoka, IL Terminal Facilities Proposed Cornerstone Pipeline Youngstown Canton M3, Leesville M3, Scio MarkWest, Cadiz Ohio Flanagan, IL Utica Gas Processing Facilities MPC Crude Pipeline Future Build-out Canton Cornerstone Utica Pa. Midland Wellsville Steubenville 15

16 Conversion Plans for Former Hess Stores Conversion to Speedway: $181 MM Remodel Capital: $240 MM ~500 Stores by Dec ~495 Stores by Dec ~250 Stores by March

17 Growing Speedway Segment EBITDA* $MM Legacy Speedway Hess *Non-GAAP disclosure, see appendix for reconciliation to Speedway segment income from operations 17

18 Increasing Light Sweet Crude and Condensate Capacity Condensate splitters Canton: 25 MBD Completed 4Q 2014 Catlettsburg: 35 MBD 2Q 2015 completion $250 MM investment >30% ROI for each project Light crude processing Robinson: +30 MBD light crude $140 MM investment ~30% ROI, 2016 completion Ultra-Sweet Condensate Conventional Crude Condensate Processing Opportunity New Fractionator Existing Crude Unit Light Naphtha to Gasoline Blending Heavy Naphtha to Reforming Distillates to Hydrotreating Heavier Components To Downstream Process Units 18

19 Growing Gulf Coast Export Capabilities Export investments totaling ~$120 MM Added new 500,000 barrel export tank at Garyville in 2013 Galveston Bay in MBD ULSD ~40% ROI Garyville in MBD Gasoline ~30% ROI MBD Export Capacity Galveston Bay in MBD Gasoline E 2018+E ~35% ROI 19

20 Capitalizing on Global Growth in Diesel Demand MBD % of Crude Throughput Distillate Production E 2016E 2017E Distillate Production E 2016E 2017E Garyville +35 MBD ULSD in $232 MM investment ~45% ROI Galveston Bay +9 MBD ULSD in 2015 $16 MM investment ~50% ROI Robinson +5 MBD ULSD in 2015 $77 MM investment ~30% ROI 20

21 Galveston Bay Driving Value Integration with Texas City refinery Revamp crude and vacuum units Optimize for future crude availability Improve distillate recovery Add hydrotreating capacity Move to 100% ULSD Idle the smallest and oldest FCC Expand export capabilities Expand bottom upgrade capacity 21

22 2015 Value Drivers As of December 31, 2014 See appendix for legend Top-tier safety and environmental performance Accelerate growth of Midstream/MPLX Capital return to shareholders Strong and growing dividend Share repurchase program Speedway Hess integration Increasing light crude processing and export capabilities Enhancing margins in our refining operations Integrated downstream system 22

23 Appendix 23

24 Fully Integrated Downstream System As of December 31, 2014 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 Ethanol Facility Biodiesel Facility Tank Farms Butane Cavern Pipelines Barge Dock Refining and Marketing Seven-plant refining system with ~1.7 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. ~5,460 Marathon Brand retail outlets across 19 states ~590 retail outlet contract assignments primarily in the Southeast and select Northeast states Owns/operates 63 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 118 light product and 10 asphalt locations 18 owned and one leased inland waterway towboats with 199 owned barges and 12 leased barges, 2,210 owned/leased railcars, 142 owned transport trucks Speedway (Retail) ~2,750 locations in 22 states Second largest U.S. owned/operated c-store chain 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 Explorer, LOCAP, LOOP, Maumee and Wolverine 24

25 MPC Performing Consistently in the Top Tier Engine behind MPC s focus on capital returns 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 **Adjusted domestic operating income per barrel of crude oil throughput Source: Company Reports 25

26 Grow Higher Valued and Stable Cash Flow Businesses Historical Mid-Cycle EBITDA * Future Mid-Cycle EBITDA Speedway Pipeline Transportation R&M A More Diversified Portfolio Speedway Midstream R&M * average. Non-GAAP disclosure, see appendix for reconciliation to net income attributable to MPC 26

27 MPC s Currently Identified Eligible MLP EBITDA Sources of ~$1.6 B Pipelines Retained by MPC ~ 5,400 miles of additional crude and products pipelines Owns, leases or has an ownership interest in these pipelines 0.5% of MPLX Pipe Line Holdings LP Southern Access Extension, Sandpiper and Utica investments Marine Terminals Railcars Refineries Fuels Distribution 199 owned and 12 leased inland barges; 5.3 MMBBL capacity 18 owned and one leased inland towboats 63 light product; ~20 MMBBL storage; 192 loading lanes 18 asphalt; ~5 MMBBL storage; 65 loading lanes 27 owned and 2,183 leased 794 general service; 1,171 high pressure; 245 open-top hoppers 59 MMBBL storage (tanks and caverns) 25 rail loading racks and 24 truck loading racks 7 owned and 11 non-owned docks 2 condensate splitter investments 20 B gallons of fuels distribution volume Existing MPC and Speedway volumes; ~17 B gallons refined products Acquisition of Hess retail operations adds ~3 B gallons refined products 27

28 MPLX/MPC Utica Build-Out Connectivity 28

29 MPLX Developing a Comprehensive Utica System Cornerstone Pipeline and Additional Opportunities Non-binding open season supports 12-inch pipeline, 16-inch option Binding open season underway Capital estimates vary subject to binding open season results East and West connectivity options River access via Midland/Wellsville Canton/Detroit/Robinson Third-party refineries and pipelines Other Utica organic growth opportunities being evaluated 29

30 MPLX Distributions and Sales Proceeds to MPC $MM Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 LP Distributions GP Distributions, including IDRs ($MM) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q GP Distributions, including IDRs LP Distributions Total Cash Distributions Received Cash Sales Proceeds Equity Value from MPLX Value to MPC from Drop-down Transactions

31 Focused Return of Capital to Shareholders 8,000 LTM Ended 12/31/14 7,000 6,000 5,000 2,775 Hess Retail Acquisition $MM 4,000 3,000 2,000 1,000 ~2.7x of Free Cash Flow*** 3,110 2,655 2,111 $999 Free Cash Flow, Excluding Hess Acquisition*** Dividends and share repurchases* Investments, Excluding Hess Acquisition** Net cash provided by operations 0 *$524 MM dividends plus $2,131MM share repurchases **Includes cash capital expenditures, acquisitions, investments and contingent consideration, excluding $2,775 MM for the acquisition of Hess retail operations and related assets. ***Cash flow provided by operations less cash used for investments, excluding $2,775 MM for the acquisition of Hess retail operations and related assets. 31

32 Sustaining Capital Returns Since Spin 10,000 Cumulative Return of Capital Since July 1, ,000 $7.8 B $MM 6,000 4,000 2,000 0 Dividends Share repurchases 32

33 Generating Significant Cash Flow Through All Cycles Pro forma EBITDA adjusted for current configuration 8,000 Pro forma EBITDA 6,000 $MM 4,000 2, thru 2014 Mid- Pipeline Transportation Speedway Cycle Depr. & Amort. less corporate expense Refining and Marketing GME DHOUP Galveston Bay Hess Retail 33

34 Sustaining Core Liquidity Needs Minimum cash balance of $500 MM - $1.0 B Requirements Ongoing Operating Cash Flow Requirements Maintenance/Sustaining Capital Interest Payments Dividend Payments Contingent Calls on Corporate Liquidity - Probability Adjusted Contingent and Uncommitted Letters of Credit MPC Credit Shock and Impact on Unsecured Lines (Crude Purchases) Major Operating Upset Working Capital Shock Reduced by - Cash Flow from Operations Under Stressed Scenario Liquidity Sources Committed Facilities MPC Revolving Credit Facility $2,500 Trade Receivables Facility* $1,300 Implied Cash and Near-Cash Equivalents Targeted Cash and Near-Cash Equivalents *Availability is a function of refined product selling prices. 34

35 Growing Global Product Demand 120 Actual Forecast Compounded Annual Growth Rates 2030 vs MMBD Other Other Fuel Oil Fuel Oil Distillate Distillate Gasoline Gasoline +1.2% -1.1% +1.3% +0.8% Distillate and gasoline demand continues to rise Fuel oil continues to decline on economics and emissions issues Other consists of refinery gas, liquefied petroleum gas (LPG), solvents, petroleum coke, lubricants, wax, and other refined products and refinery fuel Distillate includes jet fuel Gasoline includes naphtha Sources: BP Statistical Review Estimate of World Energy, MPC 35

36 Rising North American Crude & NGLs Production Actual Forecast Canada MMBD U.S Sources: EIA, CAPP, MPC 36

37 Growing Crude Oil Supply MBD 1,800 1,500 1,200 North Dakota Actual Forecast MBD 5, Texas 4,000 3,000 2,000 1,000 0 Actual Forecast MBD Ohio Actual Forecast Canada +2,667 MBD Bakken +604 MBD Niobrara +163 MBD Permian +648 MBD Total U.S. Growth +1,934 MBD Utica +78 MBD Total Growth ,600 MBD MPC Refinery Eagle Ford +411 MBD Sources: EIA, CAPP, MPC 37

38 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% 0% MPC VLO HFC PSX TSO PADD II PADD III PADD I PADD IV PADD V Source: Oil & Gas Journal effective December 31, 2014 PADD III Permian Basin Eagle Ford Gulf of Mexico Canadian 38

39 Refinery Capacity BPCD NCI* Garyville 522, Galveston Bay 451, Catlettsburg 242, Robinson 212, Detroit 130, Canton 90, Texas City 84, Total 1,731, ** 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. *Nelson Complexity Index calculated per Oil & Gas Journal NCI Formula **Weighted Average NCI Source: MPC data as reported in the Oil & Gas Journal effective December 31,

40 Balance in Refining Network Canton (Ohio) 90,000 Catlettsburg (Ky.) 242,000 Detroit (Mich.) 130,000 Robinson (Ill.) 212,000 Galveston Bay (Texas) 451,000 Texas City (Texas) 84,000 Garyville (La.) 522,000 Total 1,731,000 Texas Capacity 535,000 BPCD Midwest Capacity 674,000 BPCD Louisiana Capacity 522,000 BPCD Source: MPC data as reported in the Oil & Gas Journal effective December 31,

41 U.S./Canada Key Existing and Planned Pipelines MBPD Pipeline In Service Date 300 Line 9 Reversal SAX Diamond Dakota Access ETCO (Trunkline Conversion) Sandpiper Trans Mountain Trans Mountain Expansion Current Keystone XL ,100 Energy East Northern Gateway Sources: Publicly available Information 41

42 Key Strengths Balanced Operations Crude Oil Refining Capacity Crude Slate 39% 61% PADD II PADD III As of December 31, % 48% Sour Crude Sweet Crude December 31, 2014 YTD Assured Sales of Gasoline Production (Speedway + Brand + Wholesale Contract Sales) ~70% ~30% Assured Sales Wholesale and Other Sales 4Q

43 Forward Curves $/BBL $/BBL $/BBL Forward curves show some price recovery, but not a return to $100/BBL Forward values for the Brent-WTI differential are favorable Sources: CME, ICE, futures as of Feb. 13,

44 Compelling Advantage for Pipeline and Marine All costs shown as $/BBL Pipeline costs exclude any storage or transfer fees and line loss Sources: MPC, publicly available information 44

45 Creating Crude/Condensate Advantage Source: MPC 45

46 Speedway Value Total Gross Margin Mix Average Light Product 37% Merchandise 63% Top-tier performance in the convenience store industry Scalable technology and organizational infrastructure Disciplined expense control Highly successful consumer loyalty program Leverage integration value within MPC s infrastructure 46

47 Acquisition of Hess Retail Transaction Overview Hess retail acquisition included: 1,245 company operated locations Transport fleet with capacity to transport ~1 B gal/yr. Pipeline shipper history in various pipelines, including ~40 MBPD on Colonial Pipeline Prime undeveloped real estate bank for organic growth Total consideration of $2.82 B $2.37 B base purchase price $194 MM working capital* $263 MM capital leases cash settled Unique acquisition opportunity of premier East Coast locations Financed with a combination of debt and available cash Transaction closed on September 30, 2014 *Subject to post-closing adjustment 47

48 Transformative Transaction for MPC and Speedway Accelerates strategy to grow higher valued and stable cash-flow businesses Provides larger integrated platform for growth in new markets Meaningfully expands scale and provides multiple levels of strategic optionality Continued commitment to balance value enhancing investments in the business with capital returns to shareholders 48

49 Enhances Strategic Value for Integrated System Note: Includes owned and third-party terminals Dual Marketing Area Speedway Marketing Area Hess Marketing Area Refineries Connecting Pipelines Light Product Terminals Water Terminals Refined Product Placement Opportunities Incremental 200 MBPD of refined products placement capacity, increases assured gasoline Incremental supply of MPC Gulf Coast refined products to northeast and southeast markets Logistics Opportunities Increases utilization and optimization of MPC terminals with incremental 70 MBPD of throughput Marketing Potential Growth platform for further expanding Speedway, Marathon Brand and Wholesale Light Product Supply Strategy Existing supply and terminal agreements provide near term competitive supply with upside potential to aggregate volumes and further reduce costs Optimize supply in southeast market through existing production and logistics assets Leverage Midwest and Gulf Coast production to provide supply to the New York Harbor 49

50 Synergies and Marketing Enhancements Will Drive Value $MM $MM Pro Forma Hess EBITDA* Earnings Opportunities 35 Form 10 WilcoHess Synergies 40 Operating and G&A Expense Synergies 45 Light Product Supply and Logistics 70 Marketing Enhancements Synergies and Marketing Enhancements E Hess EBITDA Sources: Company reports, MPC internal estimates *Sept. 30, 2013 Form 10 Pro Forma annualized E* 2015E 2016E 2017E WilcoHess Synergies Light Product Supply and Logistics *Based on Oct. 1, 2014 closing Operating and G&A Expense Synergies Marketing Enhancements Operating and G&A expense synergies of $75 MM Integrated light product supply savings of $45 MM Additional sales uplift and merchandise margin enhancement of $70 MM Expedited integration and transition process due to spin-off preparation 50

51 Focus on Improving Light Product Breakeven 13 Light Product Breakeven (cpg) Each 1.00 cent per gallon improvement = ~$30 MM annual pretax earnings LPBE = Total Expenses Merchandise Margin Light Product Volume Measure of operating efficiency and merchandise contribution to total expense Speedway Hess Sept. 30, 2013 Form 10 Estimate Potential to drive substantial value in the business over time 51

52 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 Company 10K SEC filing 52

53 Rising MPC Finished Product Exports MBD

54 Leveraging Existing Capacity to Run Light Sweet Crude % of Crude Capacity MPC Midwest Source: 2015 Oil & Gas Journal Reforming Capacity MPC USGC Industry Average 48% sweet crude oil throughput 2014 versus 68% sweet crude oil capacity Reformer capacity captures full value of light crude processing Additional value added through aromatics production U.S. Aromatics Capacity MBPCD 40 0 Sources: Argus DeWitt Aromatics Reports and MPC internal data. Benzene, toluene, mixed xylenes, and cumene shown. Xylene revised. 54

55 Renewable Fuels Corn Ethanol Plants 67% equity interest* in Greenville, Ohio 110 MM gallon/year capacity 60% equity interest in Clymers, Indiana 110 MM gallon/year capacity 43% equity interest in Albion, Michigan 55 MM gallon/year capacity The Andersons operates the plants and provides all the facility services Biodiesel Refinery 100% owner in Cincinnati, Ohio 60 MM gallon/year capacity Generates 90 MM RINs per year Supplied by both truck and rail, with river access in close proximity *Direct and indirect 55

56 Allocating Capital to Higher Valued Businesses 3, Capital Investment Profile 2,500 2,000 $MM 1,500 1, E Refining & Marketing, excluding Midstream Midstream Pipeline Transportation Speedway Other Excludes Galveston Bay and Hess retail acquisitions 56

57 2015 Significant Capital Projects Midstream* 2015 Capital Budget - $2.5B Speedway 35% 18% 5% 15% Corporate & Other 27% Refining Sustaining Capital Refining Margin Enhancement *Includes Pipeline Transportation segment and midstream investments included in the R&M segment. Refining & Marketing margin-enhancing projects Increase light crude capacity at Robinson Distillate growth at Garyville, Galveston Bay and Robinson Product export growth at Garyville and Galveston Bay Galveston Bay/Texas City synergy projects Speedway growth Integration and remodel of Hess retail sites Continued expansion into new markets Midstream growth Sandpiper pipeline investment Southern Access Extension pipeline investment Cornerstone pipeline and related build-out Patoka to Lima pipeline expansion Robinson butane cavern Catlettsburg condensate splitter 57

58 Capital Expenditures & Investments ($MM) 2015 MPC Plan Refining & Marketing (R&M) 1,042 Midstream included in R&M 234 Speedway 452 Pipeline Transportation* 659 Corporate and Other 140 Total Capital Expenditures & Investments 2,527 *Includes MPLX Note: Excludes capitalized interest ($MM) 2015 MPLX Plan Growth 222 Maintenance 38 Total Capital Expenditures & Investments 260 Note: Excludes capitalized interest 58

59 Annual Price and Margin Sensitivities $MM (After Tax) LLS Crack Spread* Sensitivity ~$450 (per $1.00/barrel change) Sweet/Sour Differential** Sensitivity ~$200 (per $1.00/barrel change) LLS-WTI Spread*** Sensitivity ~$100 (per $1.00/barrel change) Natural Gas Price Sensitivity ~$140 (per $1.00/MMbtu change in Henry Hub) *Weighted 38% Chicago and 62% USGC LLS crack spreads and assumes all other differentials and pricing relationships remain unchanged **Light Louisiana Sweet (prompt) - [Delivered cost of sour crudes: Arab Light + Kuwait + Maya + Western Canadian Select + Mars] ***Assumes 20% of crude throughput volumes are WTI-based domestic crudes 59

60 MPLX s Priorities for Investors Maintain Safe and Reliable Operations Sustain Long term Distribution Growth; Mid 20% for the Next Five Years Focus on Fee Based Businesses $90 $80 $70 $60 $50 Unit Price $40 IPO Pursue Organic Growth Opportunities $30 $20 Grow Through Acquisitions Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Source: Thomson Reuters 60

61 MPLX and MPC are Aligned 0.5% limited partner interest 2.0% GP interest 100.0% ownership interest MPLX GP LLC (our General Partner) 100.0% ownership interest Marathon Pipe Line LLC ( MPL ) As of December 31, 2014 MPLX Organizational Structure Marathon Petroleum Corporation and Affiliates (NYSE: MPC) 100.0% ownership interest MPLX Operations LLC 99.5% GP interest 69.5% LP interest MPLX LP (NYSE: MPLX) r (the Partnership ) MPLX Pipe Line Holdings LP ( Pipe Line Holdings ) Public 28.5% LP interest 100.0% ownership interest Ohio River Pipe Line LLC ( ORPL ) 100.0% ownership interest MPLX Terminal and Storage LLC MPC views MPLX as integral to its operations and is aligned with its success and incentivized to grow MPLX MPLX assets consist of a 99.5% GP interest in Pipe Line Holdings, as well as 100% ownership in the Neal, W.Va., Butane Cavern MPC retains the remaining 0.5% LP interest in Pipe Line Holdings MPC also owns 69.5% LP interest and 100% of MPLX s GP interest and IDRs 61

62 MPLX Deficiency Payment Effect Example For illustrative purposes only ($MM) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 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 62

63 Incentive Distribution Rights 4Q 2014 distribution of $0.3825/unit is in Third Target Distribution tier 63

64 1Q 2015 Outlook Crude Throughput* Other Charge/ Feedstocks Throughput* Total Throughput* Percent of WTI-priced Crude Turnaround and Major Maintenance Depreciation and Amortization Other Manufacturing Cost** Total Direct Operating Costs Corporate and Other Unallocated Items*** in MBD Refinery Direct Operating Costs**** Projected 1Q 2015 Gulf Coast Region Midwest Region 1, ,200 3% $1.25 $1.15 $4.40 $ % $1.10 $1.80 $4.40 $7.30 MPC Total 1, ,850 16% $1.20 $1.45 $4.50 $7.15 $85 MM 1Q 2014 Gulf Coast Region Midwest Region ,071 3% $3.83 $1.25 $5.87 $ % $1.71 $1.91 $5.54 $9.16 MPC Total 1, ,650 21% $3.15 $1.55 $5.95 $10.65 $131 MM Speedway Light Product Sales Volume Projected 1Q billion gallons *Region throughput data includes inter-refinery transfers, but MPC totals exclude transfers **Includes utilities, labor, routine maintenance and other operating costs ***Includes $64 MM of pension settlement expense in 1Q 2014 ****$/BBL throughput 64

65 MPLX Adjusted EBITDA Reconciliation from Net Income ($MM) Q 2014 Annualized Dec Annualized Net income Less: Net income attributable to MPCretainretained interest Net income attributable to MPLX LP Plus: Net income attributable to MPCretained interest Depreciation Provision for income taxes (1) 4 Non cash equity based compensation 1 3 Net interest and other financial costs Adjusted EBITDA Less: Adjusted EBITDA attributable to MPCretainretained interest Adjusted EBITDA attributable to MPLX LP

66 EBITDA Reconciliation to Net Income Attributable to MPC ($MM) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net income attributable to MPC 2,262 1, ,389 3, Less: Net interest and other financial income (costs) (26) (109) (48) (45) (47) (39) (46) (48) (50) (72) Add: Net income attributable to noncontrolling interests Add: Provision for income taxes 1, ,330 1, Add: Total segment depreciation and amortization Add: Items not allocated to segments 147 (11) Total Segment EBITDA 3,990 2,448 1,506 2,188 4,934 6,596 1,504 1, , ,747 1,469 1,691 By Segment Refining & Marketing Segment EBITDA 3,413 1, ,539 4,309 5,902 1,341 1, , ,524 1,228 1,279 Speedway Segment EBITDA Pipeline Transportation Segment EBITDA Total Segment EBITDA 3,990 2,448 1,506 2,188 4,934 6,596 1,504 1, , ,747 1,469 1,691 Last Twelve Months Segment EBITDA 4,284 4,650 5,442 5,707 66

67 Reconciliation Free Cash Flow to Net Cash Provided by Operations ($MM) 2014 (For the Quarter) 1Q 2Q 3Q 4Q Net cash provided by operating activities , Additions to property, plant and equipment (267) (302) (383) (528) Acquisitions* - (42) (4) - Investments (123) (41) (177) (72) Contingent Consideration - - (172) - Free cash flow (212) Last twelve months free cash flow 999 *Represents cash paid, excludes acquisition of Hess retail operations and related assets. 67

68 EBITDA Reconciliation to Net Income for Hess ($MM) 2013* 2017E Net Income Less: Net interest and other financial income (costs) (12) - Add: Provision for income taxes Add: Depreciation and amortization EBITDA *Based on Hess Sept. 30, 2013 Form 10 data annualized 68