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Marathon Petroleum Corp. and MPLX LP closing on strategic transactions

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FINDLAY, Ohio, Feb. 1, 2018 /PRNewswire/ — Marathon Petroleum Corp. (NYSE: MPC) and MPLX LP (NYSE: MPLX) today are closing on the final transactions to complete the previously announced strategic actions.

MPC is contributing refining logistics assets and fuels distribution services to MPLX that are projected to generate approximately $1 billion in annual earnings before interest, taxes, depreciation and amortization (EBITDA) for total consideration of $8.1 billion consisting of $4.1 billion in cash and approximately 114 million newly issued MPLX units valued at $4 billion as of the announcement date. MPLX is financing the cash portion of the transaction with its $4.1 billion 364-day term loan facility, which was entered into on Jan. 2, 2018.

Immediately following the dropdown, MPC is exchanging its general partner (GP) economic interests in MPLX, including incentive distribution rights (IDRs), for 275 million newly issued MPLX common (LP) units valued at $10.1 billion as of the announcement date. MPC will continue to control MPLX through its ownership of the non-economic GP interest in MPLX and will own approximately 64 percent of the outstanding MPLX common units.

“We are very pleased to complete these transformative transactions for both MPC and MPLX,” said Gary R. Heminger, chairman and chief executive officer of both MPC and MPLX. “The conversion of MPC’s GP economic interests in MPLX into LP units provides a clear valuation for MPC’s interests. This, combined with the elimination of the IDR burden on the partnership, creates mutual benefits and positions MPLX extraordinarily well to deliver long-term sustainable growth for all of its unitholders, including MPC.”

About Marathon Petroleum Corporation
MPC is the nation’s second-largest refiner, with a crude oil refining capacity of approximately 1.9 million barrels per calendar day in its six-refinery system. Marathon brand gasoline is sold through approximately 5,600 independently owned retail outlets across 20 states and the District of Columbia. In addition, Speedway LLC, an MPC subsidiary, owns and operates the nation’s second-largest convenience store chain, with approximately 2,740 convenience stores in 21 states. Through subsidiaries, MPC owns the general partner of MPLX LP, a midstream master limited partnership. Primarily through MPLX, MPC owns, leases or has ownership interests in approximately 10,800 miles of crude oil and light product pipelines. Also through MPLX, MPC has ownership interests in gathering and processing facilities with approximately 5.9 billion cubic feet per day of gathering capacity, 8.2 billion cubic feet per day of natural gas processing capacity and 610,000 barrels

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