LOOP LLC

Overview Key strengths Key risks Unique competitive position as the sole offshore oil port operator for deep-draft oil tankers Small scale and limited geographic diversification Ongoing debt repayment and sufficient cash on balance sheet support credit metrics Backwardation in crude oil prices could adversely affect storage revenues Strategic importance to parents Shell Oil Co., Shell Pipeline Co. L.P., MPL Louisiana Holdings LLC, Marathon Petroleum Co. L.P., and Valero Terminaling and Distribution Co. Increased competition as other export facilities come online in late 2023 or 2024 In January 2022, the reversal of the Capline pipeline was completed, which has resulted in higher export volumes for LOOP. Furthermore, LOOP has benefited from increased drilling in the Gulf of Mexico (GOM) and, in

...We expect LOOP LLC's throughput volumes will continue to increase with the completion of the Capline reversal. In January 2022, the reversal of the Capline pipeline was completed, which has resulted in higher export volumes for LOOP. Furthermore, LOOP has benefited from increased drilling in the Gulf of Mexico (GOM) and, in general, higher take-away capacity from the Permian Basin. Offsetting this somewhat are lower storage revenues as a result of backwardation in oil prices. At the same time, we do not expect any additional deep water export terminals will be completed over the next three years that will directly compete with LOOP. We expect the company will continue to repay debt over the next few years. Management remains committed to paying down debt. LOOP reduced its reported debt by about $55 million between 2019 and 2022. We expect it will continue reducing its reported debt each year by about $10 million. As of year-end 2022, LOOP began to report finance lease liabilities on its...

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