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On-Campus PresentationNovember 2, 20171Bac.docx
- 1. On-Campus Presentation November 2, 2017 1 Background and MPC Career Path Riley Morman Columbus Grove, OH Tiffin University- May, 2010 Bachelor’s in Marketing, minor in Finance Track & Field August – December 2009: Brand Marketing (Internship) Romulus, MI July 2010- December 2011: Asphalt Marketing: Scheduler (Petroleum Coke) Findlay, OH January 2012 – October 2013: Asphalt Marketing: Territory Manager Romulus, MI November 2013 – May 2015: Brand Marketing: Territory Manager Raleigh, NC June 2015 – June 2017: Wholesale Marketing: Territory Manager (Truckstops, Rail, Utility & Marine) Findlay, OH June 2017 – Present: SD&P: Adv. Analyst (Crude Oil Strategy & Analysis)
- 2. Findlay, OH 2 Information about the guest speaker. 2 Over 125 years in business Fortune 55 company headquartered in Findlay, Ohio 3rd largest U.S. refiner (Largest in MW) Geographically and strategically aligned operations Industry leader emphasizing safety and environmental responsibility Consistently a top performer on an operating income per barrel basis Characterized by safe and reliable operations Employees: Approximately 45,440 Approximately 2,730 Speedway convenience stores Approximately 5,600 Marathon Brand retail outlets Extensive terminal and pipeline network Marathon Petroleum Corporation 3 3
- 3. Fortune 25 company Established in 1887 Fourth largest U.S. refiner Largest in Midwest 2014 revenues and other income: $98.1 billion 2014 net income attributable to MPC: $2.52 billion Employees: approximately 45,340 Headquartered in Findlay, Ohio Approximately 2,760 Speedway convenience stores Approximately 5,600 Marathon Brand retail outlets Extensive terminal and pipeline network Focused and Integrated Network 4 Pipelines Terminals Coastal Water Terminals Inland Water Terminals Refineries Speedway Brand Marketing Biodiesel/Ethanol Facilities 4
- 5. Marketing Area MPC Refineries Light Product Terminals MPC owned and Part-owned Third Party Asphalt/Heavy Oil Terminals MPC Owned
- 6. 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 Crude Oil and Products Pipelines Barge Dock MarkWest Facility Refining and Marketing Seven-plant refining system with ~1.8 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. ~5,500 Marathon brand retail outlets across 19 states ~300 retail outlet contract assignments primarily in the Southeast and select Northeast states Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light
- 7. product and two asphalt locations 2,210 owned/leased railcars, 173 owned transport trucks Speedway ~2,770 locations in 22 states Second largest U.S. owned/operated c-store chain Midstream Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines 18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges Owns/operates more than 5,000 miles of gas gathering and NGL pipelines Owns/operates >50 gas processing plants, >10 NGL fractionation facilities and one condensate stabilization facility 4 Rated Crude Oil Refining Capacity System capacity: 1,817,000 BPCD Garyville, Louisiana 543,000 BPCD Texas City, Texas 86,000 BPCD Catlettsburg, Kentucky
- 8. 273,000 BPCD Detroit, Michigan 132,000 BPCD As of Jan. 1, 2017 BPCD = barrels per calendar day Canton, Ohio 93,000 BPCD Robinson, Illinois 231,000 BPCD Galveston Bay, Texas 459,000 BPCD 5 1977 – Garyville (Source: EIA) 5 Refining 101 for Supply Chain Majors 6
- 9. Refinery Crude Oil Propane Gasoline Jet/Kerosene Diesel Fuel Oil Asphalt Pet Coke Various Petrochemicals 2016 Refinery Throughput and Consolidated Sales 7 *Includes refined products purchased for resale. MBPD = thousand barrels per day B GAL = billions of gallons Crude Throughput Refinery Yields Sales*
- 10. 1,699 MBPD 1,883 MBPD 35 B GAL Other Feedstocks 151 MBPD Canada 19% Other International
- 11. 23% U.S. 58% Other 308 Distillate 617 Gasoline 900 Asphalt 58 Asphalt & Other 16% Speedway 17% Marathon Brand 14% Wholesale/Spot
- 12. 53% 7
- 14. Largest company-owned and -operated c-store chain east of the Mississippi ~2,730 locations in 21 states(1) Marathon Brand ~5,600 branded locations in 19 states(2) One of the largest asphalt marketers in the country Quality supplier into wholesale and secondary product markets Speedway BrandConn.1Del.4Mass.110N.J.71R.I.20 488 304 310 147 115 64 60 39 115 2 52 278 62 241 235 12 857 811 645 573 291 41 47
- 15. 117 117 69 286 627 223 403 255 105 80 14 6 (1)As of Aug. 31, 2017 (2)As of June 30, 2017 8 Supply, Distribution & Planning 9 SD&P Crude Logistics Example and Overview
- 17. MPC’s schedulers and optimization team work in conjunction with Traders, Feedstock Coordinators, Refining, Pipeline, Marine, Product Quality, and other stakeholders to develop supply plans for MPC’s refineries Multiple Crude Grades and Sources Segregated Grades (Photo) Transit Times Strategic and economic focus on inventory management Balancing Ample Supply and Containment Maintain safety stock to manage variability in supply, sales and refinery production issues Problem solving and contingency planning
- 18. Long Term Strategic Planning Permian Production Bakken Production GOM Production Canadian Production Various Imported Crude Production 10 Cushing, OK Storage Hub Rockies Production Source: SD&P Source: SD&P Source: SD&P Source: SD&P Source: SD&P Source: SD&P Source: SD&P Refining and Marketing Seven-plant refining system with ~1.8 MMBPCD capacity
- 19. 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. ~5,500 Marathon brand retail outlets across 19 states ~300 retail outlet contract assignments primarily in the Southeast and select Northeast states Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light product and two asphalt locations 2,210 owned/leased railcars, 173 owned transport trucks Speedway ~2,770 locations in 22 states Second largest U.S. owned/operated c-store chain Midstream Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines 18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges Owns/operates more than 5,000 miles of gas gathering and NGL pipelines Owns/operates >50 gas processing plants, >10 NGL fractionation facilities and one condensate stabilization facility 10 US Crude Flow Trends Canadian Bakken Capline
- 20. Seaway Permian 2000 Foreign Imports via Gulf Coast 2025E Foreign Imports via Gulf Coast Seaway Bakken Canadian Utica Permian/ Eagle Ford Canadian Bakken Capline Seaway 2017 Foreign Imports via Gulf Coast Permian/ Eagle Ford
- 21. Utica 11 Source: MPC Econ 2017 Production Forecast, CAPP, SD&P 2000 vs. 2017 vs. 2025E 11 Cushing Superior Clearbrook Montreal Burnaby Chicago Guernsey Wood River Patoka
- 22. Sarnia Port Arthur / Beaumont / Nederland Houston St James Houma Flanagan Memphis Midland Express Enbridge Platte Ozark Capline Zydeco Basin Mustang
- 23. Mid-Valley Trans Mountain Line 9 MPC Refineries 2010-2017 - Major Project / New Pipeline Pre-2010 Pipeline
- 26. WTG Midland to Sealy Seaway BridgeTex/ Longhorn Keystone Pony Express White Cliffs Marketlink Enbridge Superior Clearbrook
- 27. Guernsey Spearhead/ Flanagan South Steele City SAX PE Line 9 DAPL ETCOP Saddlehorn/ Grand Mesa Bayou Bridge Trans Mountain
- 28. Expansion Wood River Memphis Keystone XL Bayou Bridge Extension EPIC, Cactus, Others Basin Twin Diamond 12 Source: Publically Available Information, SD&P 12
- 29. SD&P Light Products Logistics Overview
- 30. Marketing Area MPC Refineries Light Product Terminals MPC owned and Part-owned
- 31. 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 Crude Oil and Products Pipelines Barge Dock MarkWest Facility MPC’s schedulers and optimization team work in conjunction with internal stakeholders… Marketing, Refining, Pipeline, Marine, Product Quality, and other stakeholders to develop supply plans for MPC’s terminals and refineries …and external stakeholders Pipelines, Inspectors, Terminals, Ethanol, Multiple Products Refining producing multiple gasoline and distillate grades Products must be segregated Strategic and economic focus on inventory management Maintain safety stock to manage variability in supply, sales and refinery production issues
- 32. Extensive use of linear program based distribution models to develop tactical & strategic supply plans 13 Refining and Marketing Seven-plant refining system with ~1.8 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. ~5,500 Marathon brand retail outlets across 19 states ~300 retail outlet contract assignments primarily in the Southeast and select Northeast states Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light product and two asphalt locations 2,210 owned/leased railcars, 173 owned transport trucks Speedway ~2,770 locations in 22 states Second largest U.S. owned/operated c-store chain Midstream Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines 18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges Owns/operates more than 5,000 miles of gas gathering and NGL pipelines Owns/operates >50 gas processing plants, >10 NGL fractionation facilities and one condensate stabilization facility
- 33. 13 Marketing Scheduling 14 Asphalt, Coke and Heavy Fuel Oil; Petrochemicals Asphalt, Coke and Heavy Fuel Oil One of the largest U.S. asphalt producers in terms of capacity 18 owned and two third-party asphalt terminals Customer base includes asphalt paving contractors, government entities and asphalt roofing shingle manufacturers Fuel-grade coke Used for power generation and in miscellaneous industrial applications Anode-grade coke Used to make carbon anodes for the aluminum smelting industry Heavy fuel oil Produce and market heavy residual fuel oil, including slurry, at all of our refineries Petrochemicals Feedstocks and petrochemicals Market these products domestically to customers in the chemical, agricultural and fuel-blending industries Product availability varies by refinery 15 MPC Owned Terminals Third-Party Terminals Asphalt Production Refinery Non-Asphalt Refinery
- 35. As of June 30, 2017
- 36. 15 Petrochemical Products Used Every Day Off Gas (PVC Pipes) Propylene (Storage Totes)) Xylene (Printer Ink, Plastic Bottles) Propylene (Polymer Carpeting) Cumene (Appliances, Sauder Furniture, CDs, Taillight Covers) Toluene (Paint Thinner) Propane (Vinyl Siding) Propane (Grill) Sulfur (Fertilizer) 16
- 37. 16 Pipeline Operations Center 17 Pipeline Operations Center MPC owns leases or has ownership in approximately 10,800 miles of pipeline Crude and light products pipelines Monitor and control pipeline flows Operates 24/7/365 – 12 hour shifts Extensive Training and Emergency Response 18
- 38. Updates? The safety stock mitigates a portion of the risk for specialty light products which may be difficult to produce and/or purchase TT&R Transport Operations 19 TT&R Transport Operations Proprietary fleet 163 trucks, 330 drivers (12-hours shifts, 24/7/365) 250,000 loads hauled per year 2.0 billion gallons hauled per year 15.0MM miles driven per year Transport Scheduling 41 schedulers (24/7/365) Utilizing both MPC and third party fleets 20
- 39. 20 Global Procurement 21 What is Global Procurement at Marathon? Global Procurement (GP) is accountable for managing commercial, material, and system processes to support refining, pipelines, marine assets, terminals, and service stations. Global Procurement Functions: Category Management Supplier Relations Management Contract Negotiation Material Procurement Material Control Logistics Systems & Compliance 22
- 40. Unlimited Career Potential Affords the opportunity for a individualized and flexible career path Provides the chance to cross-train in different divisions to gain well-rounded perspective on the business as a whole www.joinMPC.com 23 Thank You! 24