Bank of America - Global Energy Conference
Donald C. Templin, Executive Vice President Supply, Transportation, and Marketing
November 11, 2015
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,”
“estimate,” "objective," “expect,” “forecast,” “guidance,” “imply”, "plan," “project,” "potential," “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. In
addition to other factors described herein that could cause MPLX’s results to differ materially from those implied in these forward-looking statements, negative capital market conditions, including a persistence or
increase of the current yield on common units, which is higher than historical yields, could adversely affect MPLX’s ability to meet its distribution growth guidance, particularly with respect to the later years of such
guidance. 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 the MPLX/MarkWest Energy, L.P. (“MWE”)
proposed merger; 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 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; MPC’s ability to successfully integrate the acquired Hess retail operations and achieve the strategic and other
expected objectives relating to the acquisition; 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, 2014, 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: the ability to complete the proposed merger of MPLX and MWE on anticipated terms and timetable; the ability to obtain approval of the transaction by the unitholders of MWE and satisfy other conditions to the
closing of the transaction contemplated by the merger agreement; risk that the synergies from the MPLX/MWE transaction may not be fully realized or may take longer to realize than expected; disruption from the
MPLX/MWE transaction making it more difficult to maintain relationships with customers, employees or suppliers; risks relating to any unforeseen liabilities of MWE or MPLX, as applicable; the adequacy of MPLX’s and
MWE’s respective capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions, and the ability to successfully execute their business plans and implement their growth
strategies; 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 MPLX’s commercial agreements; each company’s ability to successfully implement its 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 budget; other risk factors inherent to MPLX’s or MWE’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, 2014, filed with the SEC; and the factors set forth under the heading "Risk Factors" in MWE's
Annual Report on Form 10-K for the year ended Dec. 31, 2014, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed with the SEC. These risks, as well as other risks associated with MPLX,
MWE and the proposed transaction are also more fully discussed in the preliminary joint proxy statement and prospectus included in the registration statement on Form S-4 filed with the SEC by MPLX on
August 18, 2015, as amended. 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, in MPLX’s Form 10-K, or in MWE’s Form 10-K 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 http://ir.marathonpetroleum.com or by contacting MPC's Investor Relations office. Copies of MPLX's Form 10-K are available on the SEC website, MPLX's website at http://ir.mplx.com or by
contacting MPLX's Investor Relations office. Copies of MWE’s Form 10-K are available on the SEC website, MWE’s website at http://investor.markwest.com or by contacting MWE’s Investor Relations office.
Non-GAAP Financial Measures
EBITDA, cash provided from operations before changes in working capital and adjusted free cash flow are non-GAAP financial measures provided in this presentation. EBITDA, cash provided from operations before
changes in working capital and adjusted 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 adjusted 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
Additional Information Related to MPLX
Additional Information and Where to Find it
This communication may be deemed to be solicitation material in respect of the proposed acquisition of MWE by MPLX. In connection with the proposed acquisition,
MWE and MPLX have filed relevant materials with the SEC, including MPLX’s registration statement on Form S-4 that includes a definitive joint proxy statement and
a prospectus and was declared effective by the SEC on October 29, 2015. Investors and security holders are urged to read all relevant documents filed with the SEC,
including the definitive joint proxy statement and prospectus, because they contain important information about the proposed transaction. Investors and security
holders are able to obtain the documents free of charge at the SEC’s website, http://www.sec.gov, or for free from MPLX LP at its website, http://ir.mplx.com, or in
writing at 200 E. Hardin Street, Findlay, Ohio 45840, Attention: Corporate Secretary, or for free from MWE by contacting Investor Relations by phone at
1-(866) 858-0482 or by email at investorrelations@markwest.com.
Participants in Solicitation
This communication is not a solicitation of a proxy from any investor or securityholder. However MPLX and its directors and executive officers and certain employees
may be deemed to be participants in the solicitation of proxies from the holders of MWE common units with respect to the proposed transaction. Information about
MPLX’s directors and executive officers is available in MPLX’s Annual Report on Form 10-K filed with the SEC on February 27, 2015 and MPLX’s current report on
Form 8-K, as filed with the SEC on March 9, 2015. Information about MWE’s directors and executive officers is set forth in the proxy statement for MWE’s 2015 Annual
Meeting of Common Unitholders, which was filed with the SEC on April 23, 2015 and MWE’s current reports on Form 8-K, as filed with the SEC on May 5, 2015,
May 19, 2015 and June 8, 2015, and in the definitive joint proxy statement filed by MPLX, which was declared effective by the SEC on October 29, 2015. To the extent
holdings of MWE securities have changed since the amounts contained in the definitive joint proxy statement filed by MPLX, which was declared effective by the SEC
on October 29, 2015, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Investors may obtain
additional information regarding the interest of such participants by reading the definitive joint proxy statement and prospectus regarding the acquisition. These
documents may be obtained free of charge from the SEC’s website http://www.sec.gov, or from MWE and MPLX using the contact information above.
Non-Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
3
MPC’s Advantaged System
First Mover and Peer Group Leader
 Top-tier safety and environmental
performance
 Integrated downstream system
 Growing Midstream/MPLX
– MPLX/MWE merger
 Enhancing margins in our refining
operations
 Speedway – Hess integration
 Capital return to shareholders
– Share repurchase program
– Strong and growing dividend
4
Advantaged Integrated Model
 Largest overall downstream system
east of the Mississippi
 Significant optionality and flexibility
 Ability to extract value across entire
supply chain
 Value enhancement opportunities
in volatile markets
As of Sept. 30, 2015
See appendix for legend
5
MPLX/MarkWest Powerful Strategic Combination
 Creates a large-cap, diversified MLP with a very attractive distribution growth
profile for an extended period of time
– Combined partnership expects compound annual distribution growth rate of
≥25 percent through 2017 and approximately 20 percent annual distribution
growth in years 2018 and 2019
– Expects LP distribution growth of 25 percent in 2016
 MPC, as the GP sponsor, has interests aligned with the combined MLP and
is committed to provide support for the distribution growth objectives
 Combines MWE’s robust organic growth opportunities with MPC/MPLX’s
financial strength
 Committed to investment grade credit profile for combined partnership
 MWE’s management brings a proven track record of executing organic growth
projects and developing strong customer relationships
6
Significance of MPLX/MarkWest Merger
 Creates large-cap, diversified MLP
with peer-leading distribution
growth profile
 Growing higher value, stable cash
flow midstream business
 Opportunity to capture value
through numerous incremental
growth projects
 Expands cash flow profile for
general partner
See appendix for legend of MPC assets
MarkWest
Northeast Complex
MarkWest
Marcellus Complex
MarkWest
Southwest Complex
MarkWest
Utica Complex
MarkWest
Offices
7
MarkWest Has the Premier Position in Marcellus/Utica
 Second-largest natural gas processor and the
fourth-largest fractionator of NGLs in the U.S.
 Extensive long-term producer partnerships with
Marcellus and Utica area dedications of 7.7 million
acres
 Processes and fractionates approximately three
quarters of growing production from rich-gas areas
in the Northeast
 Operates 39 processing and fractionation facilities
in the Marcellus and Utica shales and has 13
additional facilities currently under construction
– 7 of the top 10 processing complexes will be owned
by MWE in 2017*
– 8 of the top 14 fractionation complexes will be owned
by MWE in 2017*
* Source: Bentek Energy - NGL Facilities Databank as of 5.20.2015
8
MPC’s Currently Identified Eligible MLP EBITDA
~$1.6 B and growing
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
Pipelines
● Southern Access Extension, Sandpiper and Utica investments
Marine
● 203 owned and 12 leased inland barges; 5.3 MMBBL capacity
● 18 owned and one leased inland towboats
Terminals
● 62 light product; ~20 MMBBL storage; 189 loading lanes
● 18 asphalt; ~5 MMBBL storage; 65 loading lanes
Railcars
● 27 owned and 2,183 leased
● 794 general service; 1,171 high pressure; 245 open-top hoppers
Refineries
●
●
●
●
Fuels
Distribution
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
9
Investing in Significant Midstream Growth Projects





Access to advantaged crudes
Creating industry solutions
Growing midstream portfolio
Sustaining pipeline advantage
Financial benefits to both MPC
and MPLX
See appendix for legend
10
SAX and Sandpiper Enhances Crude Optionality
Differentials to LLS
Expected SAX Grades
differentials constantly changing
Bakken
$/BBL
10
0
Grade
-10
-20
-30
-40
-50
-60
Bakken
Synthetic
Canadian
Conventional Light/Medium
Canadian Heavy
Synthetic
Canadian Medium
Canadian Heavy
 Provides access to Canadian and Bakken grades that are currently constrained
 Improves flexibility to optimize crude supply to MPC Midwest refining system
11
MPC’s Strength in Refining
 Largest refiner east of the Mississippi
 Refining capacity in advantaged regions
 Optimized seven-plant system
 ~70 percent assured sales of gasoline production
 Continued focus on margin-enhancing projects
12
Refinery Margin-Enhancing Projects
~$835 MM capital investments, generating ~$650 MM annual EBITDA
Increasing Light Sweet Crude and Condensate Capacity
‒
‒
‒
‒
Condensate splitters at Canton and Catlettsburg refineries (+60 MBD)
Light crude processing project at Robinson (+30 MBD)
~$390 MM investment, >30% ROI
4Q 2014-2016 completion
Growing Gulf Coast Export Capabilities
– Adding export capacity at Garyville and Galveston Bay (+360 MBD)
– ~$120 MM investment, ~30-40% ROI
– 2013-2018 completion
Capitalizing on Global Growth in Diesel Demand
‒ Increasing distillate production at Garyville, Galveston Bay and Robinson (+49 MBD)
‒ ~$325 MM investment, ~30-50% ROI
‒ 2014-2016 completion
13
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
14
Speedway’s Integration to “Best in Class” Platform
 Nearly 1,000 locations converted
 Total capital:
– Conversion $181 MM
– Remodel $240 MM
~500 Stores
completed
Oct. 2015
 Achieving synergies
 Conversion creates platform for increased
merchandise revenue
~495 Stores by
Dec. 2016
~250 Stores
completed
March 2015
15
Extensive Retail Network Drives Integrated Value
Speedway
74
64
51
303
752
241
108
108 308 488
63
327 647 848
1
61
147 121 68
Speedway
130
577
32
Brand
288
360
293
62
2
6 130
65 231 313
2
Conn.
247
618
Map of Sept. 30, 2015
12
 Largest company-owned and operated
c-store chain east of the Mississippi
 Growth through Hess acquisition
Marathon Marketing
1
Del.
4
Mass.
114
N.J.
72
R.I.
20
 ~5,600 branded locations
 One of the largest asphalt marketers in the
country
 Quality supplier into wholesale and
secondary product markets
16
Sustaining U.S. Refining Advantage
Natural Gas Price Comparison
18
Actual
Forecast
16
European Natural Gas (World Bank)*
14
$/MMBtu
Japanese Liquefied Natural Gas (World Bank)*
HH Spot Price (World Bank)
12
10
8
6
4
2
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: World Bank Commodities Price Forecast, October 2015 *Average import border price
17
Continuing U.S. Refined Product Demand
300
Year-over-Year U.S. Product Demand Growth
 Continued strong refined product
demand
250
MBD
200
 Lower fuel prices with continued
income and employment growth
stimulated 2015 gasoline strength
150
100
 Expect strong distillate demand
long term
50
0
2013
Motor Gasoline
2014
Motor Gasoline ex Ethanol
2015*
Distillate
Kero-jet
Source: EIA
*YTD through September 2015
18
Increasing U.S. Gross Refined Product Exports
MMBD
4.5
4.0
Gasolines
3.5
Kero-Jet
3.0
Diesels
2.5
Propane/Propylene
2.0
Gross Product Exports
MPC Finished Product
Exports = ~315 MBD YTD*
1.5
1.0
0.5
0.0
Source: U.S. Energy Information Administration
*Through September 2015
19
Capital Return and Investment Strategy
20
Balanced Approach to Returning Capital and Investment
$11.7
Billion
 Returned 1.9x adjusted free cash
flow to investors since spin**
$9.1
Billion
 Investing in value-enhancing
projects and acquisitions
Capital Invested in the Business
Return of Capital to Shareholders*
*$2.0 B dividends plus $7.1 B share repurchases
**Adjusted free cash flow of $4.9 B (cash flow provided by operations less capital expenditures, acquisitions, investments and contingent consideration)
21
Substantial Dividend Growth Since Spinoff
+28%
$0.32
0.35
0.30
0.15
0.10
+20%
$0.21
+40%
$0.175
0.20
+25%
$0.125
$0.10 $89
$71
$119
$87
300
+19%
$0.25
250
$171
$116
$116
$113
$129
$126
$123
$141
$122
$138
$136
$171
$136
$85
150
100
0.05
0.00
200
$MM
$/Share
0.25
350
50
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015
Note: All values adjusted for stock split
Dividend per Share
0
Total Dividends Paid per Quarter
22
Share Repurchases Since Spinoff
1,200
8,000
 Since spinoff:
$1,028
$882
$850
6,000
$689
800
$682
600
4,000
$500
$431
$452
400
$459
$408
$301
2,000
$209
200
$156
0
Cumulative $MM
Qtrly Repurchases $MM
1,000
– $10 B in total Board
authorizations
– $7.05 B returned to
shareholders
– ~194 MM shares retired,
27 percent of June 30,
2011 balance*
0
ASR
10b5-1/Open Market
Cumulative Purchases
*Adjusted for stock split
23
Why MPC?
First Mover
 Separation from upstream
 Creation of Drop-down MLP
 Capital returns to shareholders
 Using MLP to be industry
solution provider
Peer Leader
 Sustained performance
through all cycles
 Consistent and reliable
operator
 MPLX value to MPC
 Disciplined capital allocation
24
Appendix
25
Fully Integrated Downstream System
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
Marketing Area
 One of the largest producers of asphalt in the U.S.
MPC Refineries
 ~5,600 Marathon Brand retail outlets across 19 states
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
 ~362 retail outlet contract assignments primarily in the
Southeast and select Northeast states
 Owns/operates 62 light product terminals and 18 asphalt
terminals, while utilizing third-party terminals at 118 light
product and six asphalt locations
 18 owned and one leased inland waterway towboats
with 203 owned barges and 12 leased barges,
2,210 owned/leased railcars, 142 owned transport trucks
Speedway (Retail)
 ~2,760 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
Tank Farms
Butane Cavern
Pipelines
As of Sept. 30, 2015
Barge Dock
 One of the largest petroleum pipeline companies in U.S.
 Part ownership in non-operated pipelines includes Explorer,
LOCAP, LOOP, Maumee and Wolverine
26
Investing in Significant Midstream Growth Projects
Sandpiper
‒ MPC Investment: $1.0 B - $1.2 B
‒ MPC Equity: 27% - 30%
‒ 2017 completion est.
Southern Access Extension (SAX)
Youngstown
Canton
Canadian
Midland
Wellsville
Steubenville
Bakken
M3, Leesville
M3, Scio
MarkWest, Cadiz
Ohio
Superior, WI
– MPC Investment: ~$330 MM
– MPC Equity: 35%
– Late 2015 completion est.
Flanagan, IL
SAX
Cornerstone
‒
‒
‒
‒
Industry solution, 16” diameter pipeline
MPLX Investment: ~$250 MM
~$40 MM EBITDA
Late 2016 completion est.
Pa.
Canton
Cornerstone
Utica
Patoka, IL
MPC Refinery
Terminal Facilities
MPLX Products Pipeline
Proposed Cornerstone Pipeline
Utica Gas Processing Facilities
MPC Crude Pipeline
Future Build-out
27
Performing Consistently in the Top Tier
Engine behind MPC’s focus on capital returns
Operating Income Per Barrel of Crude Throughput**
20
MPC’s Rank
15
$/BBL
Competitor Range
1
10
2
5
3
2
1
3
2
0
3
2
5
5
1
2
3
7
1
3
3
-5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Companies
Ranked* 12
June
YTD
Preliminary
11
11
9
10
10
9
8
8
9
9
8
8
8
8
8
8
9
*Current companies ranked: BP, CVX, HFC, MPC, PBF, PSX, TSO, VLO, XOM
**Adjusted domestic operating income per barrel of crude oil throughput
Source: Company Reports
28
Our Priorities for Our Investors
Maintain top-tier safety and
environmental performance
Share Price
$70
$60
$50
Oct-15
Jul-15
Apr-15
Jan-15
Oct-14
Jul-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Enhance the margins in our
refining operations
$10
Jul-12
$20
Spinoff
Apr-12
Grow higher valued and
stable cash-flow
businesses
$30
Jan-12
$40
Oct-11
Balance capital returns with
value-enhancing
investments
Jul-11
Sustain our focus on
shareholder returns
Source: Thomson Reuters
29
Sustaining Capital Returns Since Spin
10,000
Cumulative Return of Capital Since July 1, 2011
$9.1 B
$MM
8,000
6,000
4,000
2,000
0
Dividends
Share repurchases
30
Focused Return of Capital to Shareholders
5,000
4,500
4,000
LTM Ended 9/30/15
Dividends and share
repurchases ~1.5x of
Adj. Free Cash Flow***
Dividends and share
repurchases*
$MM
3,500
2,036
3,000
2,500
2,000
3,641
Investments**
Net cash provided by operations
1,500
1,000
$1,378 Adjusted
Free Cash Flow***
2,263
500
0
*$581 MM dividends plus $1,455 MM share repurchases
**Includes cash capital expenditures, acquisitions, investments and contingent consideration.
***Cash flow provided by operations less cash used for investments.
31
MPC’s Value of Integration
3,500
3,000
RIN $
Distortion
Crude
Price
Decline
$MM
2,500
2,000
1,500
 Flexible refining
system
 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
Gross Margin Indicator
Reported Gross Margin
32
% of Crude Capacity
Leveraging Existing Capacity to
Run Light Sweet Crude
30
25
20
15
10
5
0
Reforming Capacity
Industry
Average
MPC Midwest
Source: 2015 Oil & Gas Journal
MPC USGC
 44% sweet crude oil throughput in 3Q 2015
versus 68% sweet crude oil capacity
 Reformer capacity captures full
value of light crude processing
 Additional value added through aromatics
production
120
U.S. Aromatics Capacity
MBPCD
80
40
0
Sources: Argus DeWitt Aromatics Reports 2011-2012 and MPC internal data. Benzene, toluene, mixed xylenes, and cumene shown. Xylene revised.
33
Increasing Light Sweet Crude and Condensate Capacity
 Condensate splitters
Condensate Processing Opportunity
– Canton: 25 MBD
• Completed 4Q 2014
– Catlettsburg: 35 MBD
Light Naphtha to Gasoline Blending
Ultra-Sweet
Condensate
New
Fractionator
Distillates to Hydrotreating
• Completed 2Q 2015
– $250 MM investment
– >30% ROI for each project
 Light crude processing
– Robinson: +30 MBD light crude
– $140 MM investment
– ~30% ROI, 2016 completion
Heavy Naphtha to Reforming
Heavier Components
Conventional
Crude
Existing
Crude
Unit
To Downstream Process Units
34
Rising MPC Finished Product Exports
350
300
250
MBD
200
150
100
50
0
2010
2011
2012
2013
2014
Sept 30,
2015 YTD
35
Growing Gulf Coast Export Capabilities
 Export investments totaling ~$120 MM
 Added new 500,000 barrel export tank
at Garyville in 2013
– +20 MBD Gasoline
– ~30% ROI
 Galveston Bay in 2016-2018
– +115 MBD Gasoline
– ~35% ROI
395
400
MBD
 Garyville in 2015
510
500
 Galveston Bay in 2015
– +30 MBD ULSD
– ~40% ROI
Export Capacity
600
320
345
2013
2014
300
200
150
100
0
2012
2015E
2018+E
36
Capitalizing on Global Growth in Diesel Demand
Distillate Production
700
MBD
600
 Garyville +35 MBD ULSD in 2014-2016
500
– $232 MM investment
400
– ~45% ROI
300
2012
2013
2014 2015E 2016E 2017E
 Galveston Bay +9 MBD ULSD in 2015
% of Crude Throughput
– $16 MM investment
Distillate Production
38
– ~50% ROI
 Robinson +5 MBD ULSD in 2015
36
– $77 MM investment
34
– ~30% ROI
32
2012
2013
2014 2015E 2016E 2017E
37
MPLX/MPC Utica Build-Out Connectivity
38
MPLX Developing a Comprehensive Utica System
Cornerstone Pipeline and Additional Opportunities
 Industry solution, 16-inch pipeline
connecting Utica Shale region to
East Sparta, Ohio, tank farm
 ~$250 MM capital investment
– Includes tank farm expansion
 Late 2016 completion est.
 East and West connectivity options
– River access via Midland/Wellsville
– MPC’s Canton/Detroit/Robinson refineries
– Third-party refineries and pipelines
 Other Utica organic growth
opportunities being evaluated
39
MPLX Distributions and Sales Proceeds to MPC*
40
$MM
30
20
10
$19.7
$24.1
$20.7
$16.6
$17.5
$18.5
3Q13 4Q13
LP Distributions
1Q14
2Q14 3Q14 4Q14 1Q15 2Q15
GP Distributions, including IDRs
2013
2014
$15.8
$15.1
$31.3
$27.3
$9.8
0
1Q13
2Q13
Cash Distribution and Asset Sales
Proceeds from MPLX ($MM)
1Q
2Q
3Q
4Q
1Q
2Q
3Q15
2015
3Q
4Q
1Q
2Q
3Q
GP Distributions, including IDRs
0.3
0.4
0.4
0.5
0.6
0.8
1.1
1.5
2.4
3.9
6.3
LP Distributions
9.5
14.7
15.4
16.1
16.9
17.7
18.6
19.2
21.7
23.4
25.0
Total Cash Distributions Received
9.8
15.1
15.8
16.6
17.5
18.5
19.7
20.7
24.1
27.3
31.3
Cash Sales Proceeds
-
100.0
-
-
310.0
-
-
600.0
-
-
-
Equity Value from MPLX
-
-
-
-
-
-
-
200.0
-
-
-
Total Asset Sales Proceeds
-
100.0
-
-
310.0
-
-
800.0
-
-
-
*Based on quarter in which distributions were received
40
Generating Significant Cash Flow Through All Cycles
Pro forma EBITDA adjusted for current configuration
Pro forma EBITDA
8,000
$MM
6,000
4,000
2,000
0
2009
2010
2011
2012
Pipeline Transportation
Depr. & Amort. less corporate expense
GME
Galveston Bay
2013
2014
Speedway
Refining and Marketing
DHOUP
Hess Retail
2009 thru
2014 MidCycle
41
Sustaining Core Liquidity Needs
Target 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
– Trade Receivables Facility*
$2,500 MM
$1,000 MM
Implied Cash and Near-Cash Equivalents
Targeted Cash and Near-Cash Equivalents
* September 2015 availability was approximately $800 million. Availability is a function of refined product selling prices.
42
Strong Macro Environment for U.S. Refining
USGC LLS 6-3-2-1
Chicago LLS 6-3-2-1
20
20
15
15
10
10
5
5
0
0
-5
-5
Jan
Feb Mar Apr May Jun
2012
2013
Jul
Aug Sep
2014
Oct Nov Dec
2015
Jan
Feb Mar Apr May Jun
2012
2013
Jul
Aug Sep
2014
Oct Nov Dec
2015
Sources: NYMEX, Argus
43
Macro Outlook
 Expect crude prices lower for longer
 Forward values for the Brent-WTI differential are favorable
 Predicting volatile crude differentials
$100
WTI
$8
$90
$7
$80
$6
$70
$5
Brent-WTI
$110
Brent
$100
$90
$/BBL
$4
$50
$3
$50
$40
$2
$40
3Q14
4Q14
1Q15
2Q15
3Q15
Prompt
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
$60
3Q14
4Q14
1Q15
2Q15
3Q15
Prompt
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
$/BBL
$70
$60
3Q14
4Q14
1Q15
2Q15
3Q15
Prompt
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
$/BBL
$80
Sources: CME, ICE futures as of October 28, 2015
44
Growing Global Product Demand
120
Actual
Compounded
Annual
Growth Rates
2030 vs. 2014
Forecast
100
80
+1.2%
Other
Other
MMBD
Fuel Oil Fuel Oil
60
-1.0%
Distillate
Distillate
+1.2%
Gasoline
Gasoline
+0.8%
40
20
 Distillate and gasoline
demand continues to rise
 Fuel oil continues
to decline on economics
and emissions issues
0
“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
45
Rising North American Crude & NGLs Production
25
2015
Forecast
Actual
20
MMBD
Canada
15
10
U.S.
5
0
1985
1990
1995
2000
2005
2010
2015
2020
2025
2030
Sources: EIA, CAPP, MPC
46
Growing Crude Oil Supply
5,000
2014
4,000
MBD
2014
Texas
3,000
MBD
North Dakota
MBD
1,800
1,500
1,200
900
600
300
0
2,000
1,000
← Actual
1990
2000
2010
Forecast →
2020
2030
Canada
+1,584 MBD
← Actual
0
1990
2000
2010
2020
2030
2014
Ohio
← Actual
1990
2000
2010
Forecast →
2020
2030
Bakken
+604 MBD
Utica
+78 MBD
Niobrara
+163 MBD
Permian
+648 MBD
MPC Refinery
Forecast →
150
125
100
75
50
25
0
Total
U.S. Growth
+1,934 MBD
Total Growth
2014 – 2030
+3,520 MBD
Eagle Ford
+411 MBD
Sources: EIA, CAPP (June 2015), MPC
47
Refining Capacity in Advantaged Regions
100% in PADDs II and III
Canadian
Bakken
Utica
100%
80%
PADD IV
60%
PADD II
PADD V
40%
PADD I
20%
0%
MPC
PADD II
VLO
PADD III
HFC
PADD I
PSX
PADD IV
Source: Oil & Gas Journal effective December 31, 2014
TSO
PADD V
PADD III
Permian Basin
Eagle Ford
Gulf of Mexico
Canadian
48
Refinery Capacity
BPCD
NCI*
Garyville
522,000
11.4
Galveston Bay
451,000
13.3
Catlettsburg
242,000
10.2
Robinson
212,000
10.1
Detroit
130,000
9.8
Canton
90,000
8.0
Texas City
84,000
8.0
Total
1,731,000
11.1**
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, 2014
49
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)
Garyville (La.)
Total
Midwest Capacity
674,000 BPCD
84,000
522,000
1,731,000
Texas Capacity
535,000 BPCD
Louisiana Capacity
522,000 BPCD
Source: MPC data as reported in the Oil & Gas Journal effective December 31, 2014
50
U.S./Canada Key Existing and Planned Pipelines
MBPD
Pipeline
In Service
Date
300
Line 9 Reversal
2015
300
SAX
2015
200
Diamond
2017
450
Dakota Access
2017
450
ETCO
(Trunkline Conversion)
2017
225/375
Sandpiper
2017
300
+590
Trans Mountain
Trans Mountain Expansion
Current
2018
830
Keystone XL
2018
525
Northern Gateway
2019
1,100
Energy East
2020
Sources: Publicly available Information
51
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
52
Creating Crude/Condensate Advantage
Source: MPC
53
Key Strengths
Balanced Operations
Crude Slate
Crude Oil Refining Capacity
61%
39%
PADD II
56%
PADD III
Sour Crude
44%
As of Sept 30, 2015
Sweet Crude
3Q 2015
Assured Sales of Gasoline Production
(Speedway + Brand + Wholesale Contract Sales)
Assured Sales
~70%
~30%
Wholesale and
Other Sales
3Q 2015
54
Speedway Value
Total Gross Margin Mix
2011-2014 Average
 Top-tier performance in the
convenience store industry
 Scalable technology and
organizational infrastructure
Light
Product
37%
Merchandise
63%
 Disciplined expense control
 Highly successful consumer loyalty program
 Leverage integration value within MPC’s
infrastructure
55
Growing Speedway
Segment EBITDA*
800
696
143
$MM
600
400
200
0
404
2010
381
424
487
2011
2012
2013
Legacy Speedway
553
2014
Hess
*Non-GAAP disclosure, see appendix for reconciliation to Speedway segment income from operations
56
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
– $191 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
57
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
58
Enhances Strategic Value for Integrated System
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
Dual
Marketing Area
Speedway
Marketing Area
Hess
Marketing Area
Refineries
Connecting
Pipelines
Light Product
Terminals
Note: Includes owned and third-party terminals
Water
Terminals
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
59
Synergies and Marketing Enhancements
Will Drive Value
Earnings Opportunities
400
70
$MM
300
45
200
100
0
40
35
365
175
2013
Pro Forma Hess
EBITDA*
Form 10
WilcoHess
Synergies
Operating and
G&A Expense
Synergies
Sources: Company reports, MPC internal estimates
Light Product
Supply and
Logistics
Marketing
Enhancements
2017E Hess
EBITDA
*Sept. 30, 2013 Form 10 Pro Forma annualized
Synergies and Marketing Enhancements
190
200
70
$MM
150
100
50
75
20
45
10
20
2014E*
2015E
0
WilcoHess Synergies
Light Product Supply and Logistics
120
25
45
20
30
2016E
45
40
35
2017E
 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
Operating and G&A Expense Synergies
Marketing Enhancements
*Based on Oct. 1, 2014 closing
60
Focus on Improving Light Product Breakeven
13
12.39
Light Product Breakeven (cpg)
11
Each 1.00 cent per
gallon improvement
= ~$30 MM annual
pretax earnings
9
7
LPBE =
7.13
5
3
2.56
1
-1
2005
Speedway
2013
Hess Sept. 30, 2013 Form 10 Estimate
Total Expenses –
Merchandise Margin
Light Product
Volume
 Measure of operating efficiency and
merchandise contribution to total
expense
 Potential to drive substantial value
in the business over time
61
Speedway and Hess Side-by-Side Comparison
Hessa
Company Operated Sites
Fuel Sales
(gallons/store/month)
Fuel Margin
($/gallon)
Merchandise Sales
($/store/month)
Merchandise Margin
($/store/month)
Speedwayb
1,255
1,478
198,500
177,400
$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
62
Allocating Capital to Higher Valued Businesses
2012 – 2015 Capital Investment Profile
3,000
2,500
$MM
2,000
1,500
1,000
500
0
2012
Refining & Marketing, excluding Midstream
2013
Midstream
2014
Pipeline Transportation
2015E
Speedway
Other
Excludes Galveston Bay, Hess retail, and pending MarkWest acquisitions
63
2015 Significant Capital Projects
2015 Capital Budget - $2.5B
 Refining & Marketing – margin-enhancing projects
Corporate
& Other
Speedway
18%
5%
27%
Refining
Sustaining
Capital
– Increase light crude capacity at Robinson
– Distillate growth at Garyville, Galveston Bay and
Robinson
– Product export growth at Garyville and Galveston Bay
– Galveston Bay/Texas City synergy projects
 Speedway – growth
– Integration and remodel of Hess retail sites
– Continued expansion into new markets
 Midstream – growth
35%
Midstream*
– Sandpiper pipeline investment
– Southern Access Extension pipeline investment
15%
Refining Margin
Enhancement
*Includes Pipeline Transportation segment and midstream investments included in the R&M segment.
*Excludes pending MarkWest acquisition.
–
–
–
–
Cornerstone pipeline and related build-out
Patoka to Lima pipeline expansion
Robinson butane cavern
Catlettsburg condensate splitter
64
Capital Expenditures & Investments
($MM)
MPC
Refining & Marketing
2015 Budget
3Q 2015
YTD
1,042
215
550
234
83
184
1,276
298
734
Speedway
452
130
275
Pipeline Transportation
659
114
352
Corporate and Other
140
33
95
2,527
575
1,456
Midstream
Total Refining & Marketing Segment
Total Capital Expenditures & Investments*
*Includes MPLX
Note: Excludes capitalized interest and pending MarkWest acquisition
($MM)
MPLX
Growth
Maintenance
Total Capital Expenditures & Investments
2015 Budget
Revised
3Q 2015
YTD
178
52
120
32
9
17
210
61
137
Note: Excludes capitalized interest and pending MarkWest acquisition
65
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
66
Annual Price and Margin Sensitivities
$MM (After Tax)
LLS 6-3-2-1 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 6-3-2-1 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
67
MPLX’s Priorities for Investors
Maintain Safe and Reliable
Operations
$90
Unit Price
$80
$60
$50
$40
Oct-15
Jul-15
Apr-15
Jan-15
Oct-14
Jul-14
Apr-14
Jan-14
Oct-13
$20
Jul-13
Grow Through Acquisitions
$30
Oct-12
Pursue Organic Growth
Opportunities
IPO
Apr-13
Focus on Fee-Based Businesses
$70
Jan-13
Sustain Long-term LP
Distribution Growth; 29% in 2015,
25% CAGR through 2017, and
approximately 20% in 2018 and 2019
Source: Thomson Reuters
68
MPLX and MPC are Aligned
MPLX Organizational Structure
 MPC views MPLX as integral to its
operations and is aligned with its
success and incentivized to grow MPLX
Marathon Petroleum
Corporation and Affiliates
(NYSE: MPC)
100.0%
ownership
interest
69.5%
LP interest
Public
MPLX GP LLC
(our General Partner)
2.0% GP interest
0.5% limited
partner interest
MPLX LP
(NYSE: MPLX)
(the “Partnership”)
28.5% LP interest
r
100.0% ownership interest
MPLX Operations LLC
99.5% GP interest
100.0% ownership interest
MPLX Pipe Line Holdings LP
(“Pipe Line Holdings”)
100.0% ownership interest
100.0% ownership interest
Marathon Pipe Line LLC
(“MPL”)
Ohio River Pipe Line LLC
(“ORPL”)
MPLX Terminal
and Storage LLC
 MPLX assets consist of a 99.5% GP
interest in Pipe Line Holdings, as well
as 100% ownership in the Neal, W.Va.,
Butane Cavern
 MPC retains the remaining 0.5% LP
interest in Pipe Line Holdings
 MPC also owns 69.5% LP interest and
100% of MPLX’s GP interest
and IDRs
As of Sept. 30, 2015
69
MPLX Deficiency Payment Effect Example
For illustrative purposes only
Quarter
1
Quarter
2
Quarter
3
Quarter
4
Quarter
5
Quarter
6
Quarter
7
Quarterly deficiency payment
2
5
3
5
-
-
-
Use or expiration of credit (on or before)
-
-
-
-
2
5
3
Cumulative deferred revenue
2
7
10
15
13
8
5
Distributable cash flow
Yes
Yes
Yes
Yes
No
No
No
Adjusted EBITDA
No
No
No
No
Yes
Yes
Yes
($MM)
70
Incentive Distribution Rights
 3Q 2015 distribution of $0.4700/unit is in top tier of IDRs
71
4Q 2015 Outlook
Crude
Throughput*
Other
Charge/
Feedstocks
Throughput*
Total
Throughput*
Percent of
WTI-priced
Crude
Turnaround
and Major
Maintenance
4Q 2014
Projected
4Q 2015
in MBD
Gulf Coast
Region
Midwest
Region
MPC Total
Gulf Coast
Region
Midwest
Region
MPC Total
Depreciation
and
Amortization
Other
Manufacturing
Cost**
Total
Direct
Operating
Costs
Corporate
and Other
Unallocated
Items***
Refinery Direct Operating Costs****
1,000
200
1,200
4%
$1.20
$1.10
$4.15
$6.45
600
50
650
44%
$2.90
$1.95
$4.70
$9.55
1,600
200
1,800
19%
$1.85
$1.40
$4.50
$7.75
996
205
1,201
5%
$1.98
$1.11
$4.37
$7.46
647
48
695
48%
$1.30
$1.73
$4.59
$7.62
1,643
217
1,860
22%
$1.77
$1.37
$4.52
$7.66
$130 MM
$88 MM
*Region throughput data includes inter-refinery transfers, but MPC totals exclude transfers
**Includes utilities, labor, routine maintenance and other operating costs
***Includes $58 MM and $6 MM of pension settlement expense in 4Q 2015 and 4Q 2014, respectively
****$/barrel throughput
72
EBITDA Reconciliation to Net Income
Attributable to MPC
($MM)
2007
2008
2009
2010
2011
2012
2013
1Q
Net income attributable to MPC
2Q
2014
3Q
4Q
1Q
2Q
2015
3Q
4Q
1Q
2Q
3Q
2,262
1,215
449
623
2,389
3,389
725
593
168
626
199
855
672
798
891
826
948
165
30
31
12
(26)
(109)
(48)
(45)
(47)
(39)
(46)
(48)
(50)
(72)
(81)
(64)
(70)
-
-
-
-
-
4
5
6
5
5
8
9
7
7
12
13
10
1,164
670
236
400
1,330
1,845
378
316
81
338
108
457
333
382
486
432
521
Add: Total segment depreciation and
amortization
582
604
670
912
873
972
281
297
294
325
308
312
310
344
350
349
352
Add: Items not allocated to segments
147
(11)
182
265
316
277
67
124
82
93
131
66
97
88
81
77
223
3,990
2,448
1,506
2,188
4,934
6,596
1,504
1,381
677
1,426
800
1,747
1,469
1,691
1,901
1,761
2,124
3,413
1,819
950
1,539
4,309
5,902
1,341
1,155
473
1,248
623
1,524
1,228
1,279
1,583
1,474
1,726
Speedway Segment EBITDA
312
408
343
404
381
424
94
150
131
112
86
123
152
335
231
189
306
Pipeline Transportation Segment EBITDA
265
221
213
245
244
270
69
76
73
66
91
100
89
77
87
98
92
3,990
2,448
1,506
2,188
4,934
6,596
1,504
1,381
677
1,426
800
1,747
1,469
1,691
1,901
1,761
2,124
5,707
6,808
6,822
7,477
Less: Net interest and other financial income
(costs)
Add: Net income attributable to noncontrolling
interests
Add: Provision for income taxes
Total Segment EBITDA
By Segment
Refining & Marketing Segment EBITDA
Total Segment EBITDA
Last Twelve Months Segment EBITDA
73
Reconciliation
Adjusted Free Cash Flow to Net Cash Provided by Operations
($MM)
2014
(For the Quarter)
Net cash provided by operating activities
Additions to property, plant and equipment
2015
LTM
4Q
1Q
2Q
3Q
388
1,190
994
1,069
3,641
(528)
(389)
(375)
(513)
(1,805)
Acquisitions
10
Investments
(72)
(42)
(107)
(72)
(293)
-
-
(175)
-
(175)
Total Investments
(590)
(431)
(657)
(585)
(2,263)
Adjusted free cash flow
(202)
759
337
484
1,378
Contingent Consideration*
10
*Excludes amounts reflected in net cash provided by operating activities.
74
Reconciliation
Adjusted Free Cash Flow to Net Cash Provided by Operations
($MM)
Since 9/30/11
Spinoff
Net cash provided by operating activities
16,617
Additions to property, plant and equipment
(6,000)
Acquisitions
(4,526)
Investments
(856)
Contingent Consideration*
(347)
Total Investments
(11,729)
Adjusted free cash flow
4,888
*Excludes amounts reflected in net cash provided by operating activities.
75
EBITDA Reconciliation to Net Income for Hess
($MM)
2013*
2017E
47
138
(12)
-
Add: Provision for income taxes
22
78
Add: Depreciation and amortization
94
149
175
365
Net Income
Less: Net interest and other financial income
(costs)
EBITDA
*Based on Hess Sept. 30, 2013 Form 10 data annualized
76
Market Indicators Used in Project EBITDA
Calculations
2015-2019
ULSD (USGC; $/BBL)
$121.80-$128.98
Sour Gas Oil ($/BBL)
$118.41
Sweet Gas Oil ($/BBL)
$121.35
WTI 3:2:1 Crack Spread ($/BBL)
$13.81
77