Bli medlem
Bli medlem

Du är här


MPLX LP: Marathon Petroleum Corp. and MPLX LP announce drop-down of fee-based inland marine assets contributing approximately $120 million in annual EBITDA

FINDLAY, Ohio, March 14, 2016 - Marathon Petroleum Corp. (NYSE: MPC) and MPLX
LP (NYSE: MPLX) have executed definitive agreements for the contribution of
MPC's inland marine business to MPLX. In exchange, MPLX will issue equity to
MPC valued at $600 million. MPLX expects 98 percent of the equity to be
issued in the form of common units and the remainder in general partner
units, at an approximate price of $26.09 per unit.
The total transaction consideration represents an implied multiple of
approximately five times the inland marine business' projected earnings
before interest, taxes, depreciation and amortization (EBITDA) for the next
12 months. MPC has agreed to waive first-quarter 2016 distributions,
including incentive distribution rights and general partner distributions,
with respect to the common units issued in the transaction. Pending customary
closing conditions, the transaction is expected to close as of March 31 and
will be immediately accretive to unitholders.

The inland marine business, comprised of 18 tow boats and 205 barges,
transports light products, heavy oils, crude oil, renewable fuels, chemicals
and feedstocks in the Midwest and U.S. Gulf Coast regions, and accounts for
nearly 60 percent of the total volumes MPC ships by inland marine vessels.

"The addition of these high-quality, well-maintained marine assets to the
partnership under a fee-for-capacity contract with MPC adds approximately
$120 million of annual EBITDA, providing a highly predictable income and
cash-flow stream that further diversifies the earnings mix for MPLX," said
MPLX Chairman and Chief Executive Officer Gary R. Heminger. "The acquisition
price reflects MPC's ongoing and strong support of the partnership."

Heminger noted that issuing new equity to MPC in consideration for the assets
eliminates the need for MPLX to access the public equity markets to fund the

The terms of the acquisition were approved by the Conflicts Committee of the
board of directors of MPLX's general partner. The committee is comprised
entirely of independent directors, and is being advised principally by
Evercore Partners as to financial matters, Akin Gump Strauss Hauer&Feld as to
legal matters and K&L Gates as to admiralty and maritime law matters.


About Marathon Petroleum Corporation

MPC is the nation's fourth-largest refiner, with a crude oil refining capacity
of approximately 1.8 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,600
independently owned retail outlets across 19 states. In addition, Speedway
LLC, an MPC subsidiary, owns and operates the nation's second-largest
convenience store chain, with approximately 2,770 convenience stores in 22
states. MPC owns, leases or has ownership interests in approximately 8,400
miles of crude and light product pipelines and more than 5,000 miles of gas
gathering and natural gas liquids (NGL) pipelines. MPC also has ownership
interests in more than 50 gas processing plants, more than 10 NGL
fractionation facilities and one condensate stabilization facility. Through
subsidiaries, MPC owns the general partner of MPLX LP, a midstream master
limited partnership. MPC's fully integrated system provides operational
flexibility to move crude oil, NGLs, feedstocks and petroleum-related
products efficiently through the company's distribution network and midstream
service businesses in the Midwest, Northeast, East Coast, Southeast and Gulf
Coast regions.


MPLX is a diversified, growth-oriented master limited partnership formed in
2012 by Marathon Petroleum Corporation to own, operate, develop and acquire
midstream energy infrastructure assets. We are engaged in the gathering,
processing and transportation of natural gas; the gathering, transportation,
fractionation, storage and marketing of NGLs; and the transportation and
storage of crude oil and refined petroleum products. Headquartered in
Findlay, Ohio, MPLX's assets consist of a network of common carrier crude oil
and products pipeline assets located in the Midwest and Gulf Coast regions of
the United States, a butane storage cavern located in West Virginia with
approximately 1 million barrels of natural gas liquids storage capacity,
crude oil and product storage facilities (tank farms) with approximately 4.5
million barrels of available storage capacity, a barge dock facility with
approximately 78,000 barrels per day of crude oil and product throughput
capacity and gathering and processing assets which includes more than 5,000
miles of gas gathering and NGL pipelines, over 50 gas processing plants, more
than 10 NGL fractionation facilities and one condensate stabilization

Investor Relations Contacts:

Lisa D. Wilson (419) 421-2071
Teresa Homan (419) 421-2965
Kevin Hawkins (866) 858-0482

Media Contacts:

Chuck Rice (419) 421-2521
Jamal Kheiry (419) 421-3312

Forward-looking Statements
This press release 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," "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 MPC's actual results to differ
materially from those implied in the forward-looking statements include:
risks described below relating to MPLX and the MPLX/MarkWest Energy Partners,
L.P. ("MarkWest") transaction; changes to the expected construction costs and
timing of pipeline projects; continued/further 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; the effects of the 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, including the cost of compliance
with the Renewable Fuel Standard; 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, 2015, 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: 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 by MPLX may not be fully
realized or may take longer to realize than expected; disruption from the
MPLX/MarkWest transaction making it more difficult to maintain relationships
with customers, employees or suppliers; risks relating to any unforeseen
liabilities of MarkWest; 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; 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 drop-downs, 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;
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 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, filed with the 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, in MPC's Form 10-K or in MPLX'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 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 or by contacting MPLX's Investor Relations

The EBITDA forecast related to MPC's inland marine business was determined on
an EBITDA-only basis. Accordingly, information related to the elements of net
income, including tax, and interest, are not available and, therefore, a
reconciliation of this non-GAAP financial measure to the nearest GAAP
financial measure has not been provided.

MPC-MPLX Marine drop-down


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MPLX LP via Globenewswire


Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.