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Midstream-to-Downstream
James Crews, VP Business Development
MarkWest Energy Partners
January 26, 2017
Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of federal securities laws regarding MPLX LP (“MPLX”). These forward-looking
statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPLX. You can identify forward-
looking statements by words such as “anticipate,” “believe,” “design,” “estimate,” “expect,” “forecast,” “goal,” "guidance," “imply,” “intend,” “objective,”
“opportunity,” “outlook,” "plan,“ “position,” “pursue,” “prospective,” “predict,” “project,” "potential," “seek,” “strategy,” “target,” “could,” “may,” “should,” “would,”
“will” or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and other factors, some of which are beyond the companies’ control and are difficult to predict. Factors that
could cause MPLX's actual results to differ materially from those implied in the forward-looking statements include: negative capital market conditions, including
a persistence or increase of the current yield on common units, which is higher than historical yields, adversely affecting MPLX’s ability to meet its distribution
growth guidance; risk that the synergies from the acquisition of MarkWest Energy Partners, L.P. (“MarkWest”) by MPLX may not be fully realized or may take
longer to realize than expected; disruption from the MPLX/MarkWest merger making it more difficult to maintain relationships with customers, employees or
suppliers; risks relating to any unforeseen liabilities of MarkWest; adverse changes in laws including with respect to tax and regulatory matters; the adequacy of
MPLX's capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions, and the ability to successfully execute
its business plans and growth strategy; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other
hydrocarbon-based products; continued/further volatility in and/or degradation of market and industry conditions; changes to the expected construction costs and
timing of projects; completion of midstream infrastructure by competitors; disruptions due to equipment interruption or failure, including electrical shortages and
power grid failures; the suspension, reduction or termination of MPC's obligations under MPLX's commercial agreements; modifications to earnings and
distribution growth objectives; the level of support from MPC, including dropdowns, alternative financing arrangements, taking equity units, and other methods of
sponsor support, as a result of the capital allocation needs of the enterprise as a whole and its ability to provide support on commercially reasonable terms;
compliance with federal and state environmental, economic, health and safety, energy and other policies and regulations and/or enforcement actions initiated
thereunder; changes to MPLX's capital budget; other risk factors inherent to MPLX’s industry; and the factors set forth under the heading "Risk Factors" in
MPLX's Annual Report on Form 10-K for the year ended Dec. 31, 2015, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, filed with the
Securities and Exchange Commission (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 or in MPLX's Form 10-K or Form 10-Q. Copies of MPLX's
Form 10-K and Form 10-Q are available on the SEC website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
2
About MPLX
Growth-oriented, diversified MLP with high-quality,
strategically located assets with leading midstream
position
Two primary businesses
– Logistics & Storage includes transportation and storage
of crude oil, refined products and other hydrocarbon-based
products
– Gathering & Processing includes gathering, processing,
and transportation of natural gas and the gathering,
transportation, fractionation, storage and marketing of NGLs
Investment grade credit profile with strong financial
flexibility
MPC as sponsor has interests aligned with MPLX
– MPLX assets are integral to MPC
– Growing stable cash flows through continued investment in
midstream infrastructure
– Expected dropdowns of ~$1.4B of MLP-qualifying EBITDA
3
As of September 30, 2016
See appendix for legend
Gathering & Processing
4
Segment Overview
One of the largest NGL and natural gas midstream service providers
– Gathering capacity of 5.5 Bcf/d
• 50% Marcellus/Utica; 50% Southwest
– Processing capacity of 7.6 Bcf/d*
• ~70% Marcellus/Utica; ~20% Southwest
– C2 + Fractionation capacity of 500 MBPD**
• ~90% Marcellus/Utica
Primarily fee-based business with highly diverse customer base and established
long-term contracts
Raw
Natural Gas
Production
Processing
Plants Mixed
NGLs
Fractionation
Facilities NGL
Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering
and
Compression
*Includes processing capacity of non-operated joint venture **Includes condensate stabilization capacity
Gathering & Processing MarkWest’s Footprint in the Tri-State Region
WEST VIRGINIA
PENNSYLVANIA
OHIO
KEYSTONE COMPLEX
HARMON CREEK COMPLEX (currently under construction)
MAJORSVILLE COMPLEX
MOBLEY COMPLEX SHERWOOD COMPLEX
CADIZ & SENECA COMPLEXES MarkWest Joint Venture with EMG
HOPEDALE FRACTIONATION COMPLEX
HOUSTON COMPLEX
OHIO CONDENSATE MarkWest Joint Venture with Summit Midstream
Utica Complex
ATEX Express Pipeline
Purity Ethane Pipeline
NGL Pipeline
Mariner East Pipeline
Marcellus Complex
Gathering System
Mariner West Pipeline
TEPPCO Product Pipeline
MarkWest Joint Venture with EMG
5
Gathering & Processing Segment Growth
6
MarkWest’s Completed and Projected Facilities in the Tri-State Region
2009-2012 2013 2014 2015-2016
Houston I
Houston II
Majorsville I
Houston III
Majorsville II
Houston C3+
Fractionation
Bluestone I &
Sarsen*
Mobley I
Sherwood I
Mobley II
Sherwood II
Majorsville III
Cadiz I
Majorsville V
Mobley III
Sherwood III
Seneca I
Houston C2
Fractionation
Majorsville C2
Fractionation
Majorsville IV
Bluestone II
Seneca II & III
Keystone C2+
Fractionation
Sherwood IV
Cadiz C2
Fractionation
Sherwood V
Mobley IV
Cadiz II
Hopedale C3+
Fractionation I & II
Utica Condensate
Hopedale C3+
Fractionation III
Majorsville VII
Sherwood VII
Cadiz IV
Harmon Creek I
Harmon Creek C2
Fractionation
Keystone C2
Fractionation
Seneca IV
Sherwood VI
Houston IV
Cadiz III
Bluestone III
Mobley C2
Fractionation
Sherwood C2
Fractionation
Majorsville VI
Mobley V
Keystone C3+
Fractionation
2017-2018
Sherwood VIII
Majorsville C2
Fractionation II
Utica
Facility
Marcellus
Facility
Co
mp
lete
d F
acil
itie
s
Pro
jecte
d F
acil
itie
s
*Acquired Facilities
0.0
1.0
2.0
3.0
4.0
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16
Marcellus & Utica
Gas Processed
~4.3Bcf/d Marcellus Operations
Utica Operations
Marcellus & Utica Operations
7
Volume Growth Driven by Diverse Set of Producer Customers
MarkWest supports over 20 producer customers and has
~8 million acres of area dedication in the tri-state region
Hopedale Complex
Hopedale Complex
8
Keystone Complex
9
Sherwood Complex
10
Majorsville Complex
11
Gathering & Processing
12
Significant Growth Requires a Highly Skilled Team
~850 employees supporting
MarkWest operations in the
Marcellus, Utica, and Southern
Appalachia areas
Source employees from varied
backgrounds including:
– Engineering
– Operations
– Trades
– Other Industries (steel and coal)
Focus on local education initiatives
and on-the-job training
Marcellus Operations
Utica Operations
Southern Appalachia Operations
Engineering/Corporate
G&P Employees in Northeast Region
Marcellus/Utica Shale Strategy
Shawn Lyon, VP, Operations
Marathon Pipe Line LLC
January 26, 2017
Utica Infrastructure Investments
Assets in service
– Canton and Catlettsburg condensate splitters
– Canton condensate truck unload rack
– Wellsville condensate truck-to-barge terminal
– Truck fleet
– River barges
– Gathering, processing & fractionation infrastructure
– Cornerstone pipeline and Hopedale connection
– East Sparta tank farm expansion
– Cadiz condensate truck unload rack
14
Assets in progress
– Utica build-out pipeline projects
– RIO reversal expansion
– Cochin pipeline connection
– Additional gathering, processing & fractionation infrastructure
– Expansion of additional NGL transportation logistics
Significant potential additional Utica/Marcellus investments
Industry solution, 16-inch pipeline connecting
Utica Shale region to East Sparta, Ohio, tank farm
180,000 bpd condensate & natural gasoline
pipeline
In service October 2016
Optimal connectivity to condensate stabilizers and
fractionators
– MarkWest stabilizer – Cadiz
– UEO fractionator/stabilizer – Scio
– MarkWest fractionator – Hopedale
– Midwest Terminals truck unload – Cadiz
Additional potential future connections
15
Cornerstone Pipeline – Connecting Utica Production
Supply Summary
Utica Build-Out Projects – Delivering Utica Production
16
Demand Summary
Expand existing pipelines to Harpster
Construct a new pipeline from
Harpster to Lima
Connect to the Maumee 22” pipeline
at Lima
Reverse the RIO 8” pipeline
Up to 50,000 bpd of capacity for
Utica volumes to Lima
Mid-2017 planned in-service
Provides diluent pipeline options
– Southern Lights and Cochin
Provides for future larger build-out
projects
Utica Build-Out Projects – Delivering Utica Production
17
Progress
2016 work completed
– RIO pipeline reversal
– Heath to Findlay mainline expansion
– Station construction
2017 work planned
– East Sparta to Heath expansion
– Heath tank farm expansion
– Harpster to Lima pipeline construction
– Lima Maumee connection
– RIO reversal expansion
– Diluent tank construction at Robinson
– Cochin connection
Cornerstone Pipeline and Utica Build-Out Projects
18
The Utica Pipeline Solution
First Utica shale liquids pipeline
Provides optionality to multiple markets, maximizing producer netbacks
Provides flexibility of commitment terms and seasonal shipper needs
Allows MPLX to complete projects in phases as Utica production grows
Maintains the option for future expansion volume and connectivity
Adds superior safety, reliability and economics to existing alternatives
19