Table of Contents l Refining4 l Marathon Supply5 l Terminal,Transport & Marine6 l Marathon Pipe Line...

Table of Contents

lRefining 4lMarathon Supply 5lTerminal,Transport & Marine 6lMarathon Pipe Line LLC 7lBrand Marketing 8lSales & Marketing 9lSpeedway SuperAmerica LLC 10lCorporate Responsibility 11-13lGlossary 14-31

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Information current as of December 2009

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Based in Findlay, Ohio, Marathon Petroleum Company LLC (Marathon) is the nation’s fifth largest transportation fuels refiner with 1,188,000 barrels-per-day capacity in its seven-refinery system. Marathon’s retail marketing system comprises approximately 6,200 locations in 19 states, nearly three-quarters are Marathon brand locations. Marathon serves the Midwest, Upper Great Plains, Gulf Coast and Southeast as a petroleum products marketer, owning or operating 86 light product and asphalt terminals. The Company owns, operates, leases or has ownership interest in about 10,000 miles of pipeline. Marathon Petroleum Company is a limited liability company owned 100 percent by Marathon Oil Corporation (NYSE:MRO). Marathon's roots reach into the early years of the oil industry.

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RefiningTotal refining capacity:

1,118,000 BPCD; Approximately 7% of total U.S. Capacity

Crude throughput in 2009: 957,000 BPCD

Feedstock/Blendstock Inputs: 196,000 BPCD

Marketing in 2009:(1)Consolidated Refined Product

Sales:21.1 billion gallons

(2)Consolidated Refined Product Purchases:

3.2 billion gallons

BPCD= barrels per calendar day

(1) Total Company sales(2) MPC plus SSA 3rd party purchases

St. Paul Park:74,000 BPCD

Robinson:206,000 BPCD

Texas City:76,000 BPCD

Garyville: 436,000 BPCD

Catlettsburg: 212,000 BPCD

Canton: 78,000 BPCD

Detroit:106,000 BPCD

Marathon SupplyCrude

Oil SupplyProduct

Purchases Ethanol: • Marathon has more than 20 years history of blending with gasoline.

• Ethanol volumes sold in blended gasoline were

60 MGPD* in 2009. • Has the capacity to blend E-10 across its entire gasoline distribution network..

• Has interest in two 110 (MMGPY)** ethanol facilities: Clymers, Ind. (35%) and Greenville, Ohio (50%).

Biodiesel Fuel: • Sell biodiesel in Minnesota, Illinois, and Kentucky.

Canadian 14%

Foreign 22%(Saudi Arabia,

Kuwait, Mexico)

Domestic 64%

Other 1%

Distillate 18%

Alternative Fuels 35%

Gasoline 46%

Fuel Oil 3%

Foreign 36%(Aruba, Mexico,

Venezuela, Other)

Domestic 61%

FeedstockSupply

*Thousand barrels per day ** million gallon per day

Canadian 3%

Terminal, Transport & Marine

64 owned or operated(1) and 60 third-party (gasoline, diesel, kerosene, jet fuel)1.4 MMBPCD(2) light product throughput

147 MBPCD(3) light products delivered via MPC trucks22 owned or operated(1) and 11 leased heavy oil, coke and asphalt (4) terminals

102.5 MBPD of asphalt refining capacity45 MBPCD asphalt terminal throughput

125 owned transport trucks 267 transport loading racks16 inland waterway tow boats and 183 barges owned

412 MBPCD light products, heavy oils, asphalt, feedstocks and chemicals transported by Marine

Approximately 2,400 owned or leased railcars

(1) Includes refinery-owned loading racks at Canton, Ohio, and St. Paul Park, Minn.(2) Million barrels per calendar day(3) Thousand barrels per calendar day(4) Operated seasonally

MPC Owned

Asphalt/Heavy Oil Terminals

Light Product Terminals

MPC Owned Part Owner

Water Supplied TerminalsCoastal Inland

MPC Leased

Exchanged/Throughput

Marathon Pipe Line LLCDownstream owns, operates, leases or has ownership interest in 71 pipeline systems in 16 states and federal waters with approximately 10,000 miles of pipeline including interest in Capline, LOOP LLC, LOCAP LLC, Explorer, Wolverine Minnesota and Muskegon systems.

Operates Centennial Pipeline LLC, a joint venture that stretches 800 miles from Texas to Illinois.

Delivers more than 111 million gallons per day of crude oil and petroleum products.

MPC Owned & Operated

MPC Interest; Operated by MPC

MPC Interest; Operated by Others

Pipelines Used by MPC

Brand Marketing2009 sales: 3.7 billion gallons4,613 outlets Located in 18 states (as of Dec. 2009)

Brand Jobber Dealer Locations

204

86

89431

79516 94

133 161

6427878

95

641

789

468

To learn more about Marathon Brand Marketing, please visit our website at www.marathonpetroleum.com and for station locations, go to www.marathonpetroleum.com/stations/

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1

MarketingRetail

Marathon’s retail marketing system (Marathon Brand and Speedway SuperAmerica), comprises approximately 6,200 locations in 19 states.

WholesaleOne of the largest wholesale suppliers of gasoline and distillate within its market area.

Asphalt, Heavy Oil and Coke• Averaging 108 MBPCD production.• One of the largest domestic asphalt producers.

Special ProductsMarkets propane, propylene, cumene, benzene, toluene, xylene, dilute naphthalene oil,

molten sulfur, and maleic anhydride.

Sales 1,188 MBPCD* Commodity Group

Asphalt 6%

Special Products 5%

Distillate 27%

Gasoline 59%

Asphalt & Heavy Fuel Oil 9%

Special Products & Feedstocks 5%

Marathon Brand 20%

Speedway 18%

Wholesale 48%

These values are based on 2009 actual data. *MBPCD = thousand barrels per calendar day. Excludes sales by Marathon’s Supply, Distribution and Planning organization.

Heavy Fuel Oil/Coke 3%

Marketing Group

Speedway SuperAmerica LLC2009 annual sales:

Approximately 3 billion gallons of gasoline260 million gallons of diesel fuel$3.1 billion merchandise sales

2009 daily sales: Serves more than 2.5 million customers daily8.1 million gallons of gasoline daily

Approximately 1,600 convenience stores (as of October 2009)

Located in 9 states

221

470

61131

74

236

311

97

2

To learn more about Speedway SuperAmerica, please visit our Web site at

www.speedway.com and for store locations, www.speedway.com/PrintStoreRoster.asp

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Corporate Responsibility

EnvironmentMarathon Petroleum Company is committed to environmental stewardship. As a company that is dependent on natural resources, MPC recognizes the value of protecting the environment. MPC facilities are consistently recognized for their efforts in this area.

Health/SafetyOptimizing health and safety performance are integral parts of MPC’s vision and success. A safe working environment makes employees more productive, because they feel more comfortable at work, knowing they will return home to their family and friends in the same

condition that they left each day.


EEO/DiversityAn equal opportunity employer, MPC recognizes its strength is in its people. The company values diversity and respects the individual. MPC strives to attract, develop and retain a highly talented and diverse work force and offers competitive, challenging career opportunities. It is the company’s policy to comply with all applicable laws and regulations concerning the prohibition of discrimination in employment.

Community InvolvementMPC is proud to be an active part of the communities where it operates, supporting many local charities and programs, including the United Way. The company also contributes to numerous universities and educational institutions. MPC’s culture is to give more than monetary support, however. Employees volunteer time, talents and hard work to help create a better quality of life for everyone in MPC communities.


Ethics and IntegrityBusiness integrity and ethics have long been guiding principles of the company. MPC is committed to high ethical standards in all areas of business. MPC is privileged to do business in many communities; as members of those communities, the company must act with integrity and responsibility. As such, MPC has joined with Marathon Oil Company to establish a Business Integrity office that oversees the Code of Business Conduct, promotes business ethics awareness through education and training, and operates an employee “Helpline” for reporting suspected illegal conduct and to answer employee questions and concerns.

Glossary of Common Petroleum Terms

Alternative FuelAny fuel other than conventional petroleum-based fuel. Includes ethanol, biodiesel, methanol, natural gas, propane, hydrogen, biomass and electricity.

AnomalyAn irregularity in a pipe due to damage or a defect in the pipe. Also used to describe unusual supply and demand movements.

API GravityAn arbitrary scale defined as: degrees API gravity equals 141.5 divided by specific gravity minus 131.5. The API gravity of water is 10.0. Less dense liquid fluids have API gravities greater than 10.0.

BackwardationA market situation in which market prices are expected to be lower in future months than today (opposite of contango).


BarrelA volumetric unit of measure for crude oil and petroleum products, derived by the original use of spent whiskey barrels to hold oil in the 1800s. One barrel equals 42 U.S. gallons.

Barrel-MileA unit of measurement of pipeline shipment of product that signifies one barrel moved one mile.

Barrels Per Calendar Day (BPCD) The amount of input that can be processed under usual operating conditions. The amount is expressed in terms of capacity during a 24-hour period averaged over an entire year. It incorporates typical rate reductions for planned maintenance and other normal

operating activities.

Barrels Per Stream Day (BPSD) The average number of oil barrels of input processed within a 24-

hour period.


BatchA shipment of a single product that is handled through the pipeline without mixing with preceding or following shipments.

Biodiesel A renewable fuel for diesel engines that is derived from natural oils such as soybean oil and that meets ASTM D 6751 standards.

ButanesLow boiling point hydrocarbons used for gasoline vapor pressure control.

CokingA refining process for thermally converting and upgrading heavy residual into lighter products and petroleum coke.

ContangoA market situation in which market prices are expected to be higher in future months than today (the opposite of backwardation).


Crack SpreadsThe dollar per barrel values of a product or group of products versus the crude cost, excluding transportation and manufacturing costs. Crack spreads are used as a proxy to estimate the gross margin for processing a barrel of crude oil in a refinery.

CrackingA refining process under which heavy molecular weight hydrocarbons are broken up into light hydrocarbon molecules by the application of heat and pressure, with or without the use of catalysts.

DealerA generic term referring to a retail service station or convenience store operator usually affiliated with a brand identity or program. A dealer typically leases the facility from a refiner or jobber.


DownstreamThe segment of the oil industry involved in the refining, transportation and marketing of products.

EthanolAn alternative fuel derived from soft starches such as corn or from cellulose plant fiber. Ethanol-blended fuels in excess of 10 percent ethanol can only be used in Flex-Fuel vehicles.

Exchange ContractA contractual agreement with another product supplier whereby we deliver a product at a given point in a given quantity for a given period of time and we receive a like product at a given point in a reciprocal quantity for the same period of time. At times the exchange is not valued equally and one party owes the other money as well.

E-10Fuel containing 10% ethanol and 90% conventional gasoline.


E-85Fuel containing 85% ethanol and 15% conventional gasoline. (May change slightly during winter months.)

FeedstockInputs to refining or gasoline blending, other than crude oil, includes butanes, gas oil and natural gasoline.

GasoholA blend of finished gasoline that contains ethanol.

Gas OilMaterial heavier than distillate and lighter than heavy fuel oil or asphalt. Cracked into gasoline and distillate-range products.

Glossary of Common Petroleum TermsHydrotreaterThe purpose of this unit is to reduces the sulfur and nitrogen contents of the feedstock and to improve the combustion characteristics of the transportation fuels. In addition to sulfur and nitrogen removal, hydrotreating reduces the amount of aromatic hydrocarbons that can give jet kerosene a poor smoke point and diesel fuel a poor cetane number.

HypermartsA term referring to large retail stores and/or supermarkets that have a gasoline offering in their parking lots, perhaps as a loss leader. Also referred to as “big box” retailers.

IMP RuleIntegrity Management Plan Rule. Nickname for a rule published by the Office of Pipeline Safety entitled "Pipeline Integrity Management in High Consequence Areas.” The rule requires that the integrity of pipeline systems be managed through testing, maintenance and evaluations of releases, third party damage and other relevant data.


Independent MarketerA retail petroleum “seller” or wholesaler, who is not involved in the refining of petroleum products and therefore must purchase its supply of petroleum products from a refiner or other supplier.

Jobber (Brand)Customers who enter into a Product Supply Agreement with MPC in which MPC agrees to supply and the customer agrees to purchase Marathon Branded motor fuels at MPC terminals for use in stations where MPC has given permission to use its name and trademarks. The service stations may be owned/operated directly by the jobber, leased by the jobber to another operator, or owned/operated by some 3rd party. These locations are called “jobber-dealers.” The jobber typically arranges his own scheduling and transportation of product.


Lessee Dealer (Brand)Individuals who lease one of MPC’s company owned service stations in Ohio, Michigan, Indiana or Illinois. Each lessee dealer is an independent businessman, making decisions concerning the day-to-day operations of the station, including street pricing.

Light ProductsThe group of petroleum products with lower boiling temperatures, including gasoline and distillate fuels.

Natural GasolineGasoline boiling range material co-produced with natural gas. Used for refinery feedstock and gasoline blending.

Octane NumberA rating, which is the average of the motor octane and research octane of a fuel sample, used to indicate gasoline’s anti-knock performance in motor vehicle engines. The higher the octane number, the higher the resistance to engine knock.


OxygenateOxygen-containing blend stocks favored for their octane and their clean burning quality. Includes ethanol.

PADDPetroleum Allocation for Defense District. A group of five geographic areas in the U.S. used in reference to petroleum distribution, created in 1950 by the Petroleum Administration for Defense. These districts were originally defined during World War II for purposes of administering oil allocation.

Products TerminalA facility used primarily for the storage and/or marketing of petroleum products that would generally have a total bulk storage capacity of 50,000 barrels or more. It typically receives petroleum products by tanker, barge or pipeline and serves as a loading facility for trucks to transport products to stores, stations and smaller bulk distribution plants.


Proration(Also known as an allocation.) A temporary limit on the amount of product customers can purchase at the terminal, usually based on contracts. Used to protect inventories in time of shortage. Can also refer to a limit on the amount of product that can be shipped on a pipeline during a specific period of time by a supplier.

PSIPounds per square inch. Common measure of pressure.

Pump PriceThe self-serve price, including taxes, posted for either gasoline or diesel fuel at a station or store.

RBOBRBOB is the acronym for Reformulated Blendstocks for Oxygen Blending. RBOB combined with ethanol makes what we call RFE (Reformulated gasoline with ethanol).


RVPReid Vapor Pressure. This is the vapor pressure of gasoline under a closed vessel at 100 degrees Fahrenheit. Summer months require a lower RVP so gasoline does not evaporate before it can combust in a gasoline engine. Winter months require a higher RVP so gasoline does not vapor lock before it can combust in a gasoline engine.

RackRefers to the loading area or point of sale from which trucks pick up products at a terminal to transport to other destinations.

Rack PricingPrice to branded and unbranded customers for purchases of petroleum products at the terminal, typically with the customer arranging and paying for transportation.


Refiner's MarginTypically, the difference between the spot price of a light product, such as gasoline, and the price of crude oil.

Reformulated GasolineGasoline with a different composition from conventional gasoline that reduces air pollutants.

ResaleThe simultaneous purchase and sale of products or crude oil to improve profitability by capturing timing, location and/or grade differentials.

Retail MarginThe difference between the cost to acquire product at wholesale (including applicable taxes and the cost of secondary transportation) and the selling price of the product at street locations (store or station).


Right-of-wayA strip of land usually from 50 to 80 feet wide on which permission has been granted by landowners for the construction/maintenance of a pipeline.

ROCEReturn on capital employed is a measure of how productively the company manages its assets. ROCE is the ratio of after tax profits generated to the amount of operating capital invested.

Sellers (Brand)Own their single-site location, but use MPC’s capital investment dollars and the business consulting services of its marketing representatives. Like the Lessee Dealer, each Seller is an independent businessman, making their own day-to-day operating decisions. They operate in Ohio, Michigan, Indiana or Illinois.


Smart PigAn internal inspection tool used in the pipeline industry to detect anomalies or irregularities on the walls of a pipeline.

SMYSSpecified Minimum Yield Strength. Identifies the mill property of a pipe showing its strength.

Specific GravityThe ratio of a liquid’s density compared to water. A liquid with a specific gravity less than one is less dense than water.

Spot PriceThe price for a one-time open market transaction for immediate delivery of a specific quantity of product at a specific location where the commodity is purchased "on the spot" at current market rates.


Sour/Sweet CrudeDesignation which describes the degree of a given crude’s sulfur content. Sour refers to high-sulfur and sweet to low-sulfur.

ThroughputA volumetric rate measuring the flow of crude or products through a system over time.

TurnaroundPeriod during which equipment is shut down for mechanical inspection and/or mechanical maintenance.

UpstreamThe segment of the oil industry involved in the exploration and/or production of crude oil.


VOCVolatile Organic Compounds. VOC is most commonly used when describing the summer gasoline season. This is the time of year when the Clean Air Act of 1990 requires reduced VOC emissions in gasoline in order to maintain air quality.

VRUVapor Recovery Unit. A VRU captures vapors from empty transport trucks that are pushed out of the truck tank during the loading process. Some units actually recover the vapors, convert them to a liquid state through various means and return the product to a tank within the terminal tank farm. Other units, called vapor combustors, burn the vapors in a flare.

WTIWest Texas Intermediate crude oil. The WTI spot price of crude is reported from Cushing, Oklahoma.

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Table of Contents l Refining4 l Marathon Supply5 l Terminal,Transport & Marine6 l Marathon Pipe Line...

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