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Marathon Petroleum Corporation (MPC), headquartered in Findlay, Ohio, is a leading, integrated downstream energy company. With a network of 13 refineries and a total throughput capacity of 3.0 million barrels per day, MPC stands as the fourth-largest refiner in the United States. Its operations span the midcontinent, West Coast, and Gulf Coast regions, positioning MPC strategically to serve major markets across the Midwest, Gulf Coast, and Southeast U.S.
MPC's business model includes refining, marketing, and transportation, focusing on efficiency and market reach. The company operates a robust terminal and transportation system, extensive wholesale and retail marketing operations, and a significant retail presence through its wholly-owned subsidiary, Speedway LLC, which is the fourth-largest chain of company-owned and -operated retail gasoline and convenience stores in the nation.
In the realm of renewable energy, MPC is proactive, with its Dickinson, North Dakota facility producing 184 million gallons of renewable diesel annually, and its Martinez, California facility expected to produce 730 million gallons per year after conversion. The company also invests heavily in midstream assets, primarily through its master limited partnership, MPLX LP, which owns and operates gathering, processing, and fractionation assets.
Recent Achievements and Projects:
- MPC reported a net income of $1.5 billion for Q4 2023, despite a decrease from the previous year. The company achieved an adjusted EBITDA of $3.5 billion for the same quarter.
- MPC's Los Angeles refinery is undergoing improvements to enhance competitiveness by increasing reliability, lowering costs, and reducing emissions. These upgrades are expected to be completed by the end of 2025.
- The Galveston Bay refinery is constructing a high-pressure distillate hydrotreater to produce higher-value finished products, scheduled for completion by the end of 2027.
- MPLX is expanding its operations in the Marcellus and Permian basins with a capital outlook of $1.1 billion for growth projects.
Financial Position: As of December 31, 2023, MPC had $10.2 billion in cash and short-term investments, and returned approximately $2.8 billion to shareholders through share repurchases and dividends in Q4 2023. For the full year 2023, net income was $9.7 billion, highlighting strong operational performance and commercial execution.
MPC is committed to generating strong through-cycle cash flow and delivering superior returns to shareholders. The company's strategic investments and operational improvements underline its goal of maintaining a competitive edge and achieving sustainable growth in the energy sector.
Marathon Petroleum Corp. (MPC) announced the final results of its modified Dutch auction tender offer, which closed on June 14, 2021. A total of 15,573,364 shares were validly tendered and accepted at a purchase price of $63.00 per share, amounting to approximately $981 million. This represents about 2.4% of MPC's outstanding shares. The company stated there was no proration factor since all properly tendered shares were accepted. J.P. Morgan and Barclays acted as dealer managers, while Computershare served as the depositary for the offer.
Marathon Petroleum Corp. (NYSE: MPC) reported preliminary results for its modified Dutch auction tender offer, which concluded on June 14, 2021. Approximately 15.6 million shares were validly tendered at a price of $63.00 each, totaling an aggregate cost of about $981 million. This accounts for approximately 2.4% of MPC's outstanding common stock. Following the sale of its Speedway business, MPC had a total share repurchase authorization of $10 billion, with about $9 billion remaining post-tender offer. The company aims to execute its capital return strategy over the next 12 to 18 months.
On May 19, 2021, 7-Eleven announced agreements to sell 293 Speedway and 7-Eleven stores to three buyers, following its acquisition of Speedway from Marathon Petroleum Corp. (NYSE: MPC) on May 14, 2021. The sales are divided among three agreements: 124 sites to Anabi Oil, 63 sites to Jacksons Food Stores, and 106 to CrossAmerica Partners LP. This strategic move continues 7-Eleven's expansion in the convenience retail market while streamlining its operations.
Marathon Petroleum Corp. (NYSE: MPC) is set to redeem all $300 million of its outstanding 5.125% senior notes due April 1, 2024. This decision aligns with the company's strategy to decrease long-term structural debt. The notes will be redeemed at 100.854% of the principal amount, plus accrued interest. The portion issued by MPC is expected to be redeemed on June 18, 2021, and the notes obligated by Andeavor LLC on June 1, 2021. This announcement serves as an informational release, not a solicitation to buy or sell the notes.
Marathon Petroleum Corp. (MPC) initiated a modified Dutch auction tender offer on May 17, 2021, to buy up to $4.0 billion of its common stock at prices between $56.00 and $63.00 per share. The offer will expire on June 14, 2021. Funding for the purchase will come from after-tax proceeds from the recent sale of its Speedway business to 7-Eleven. This offer is part of MPC's $10.0 billion share repurchase program. All shares purchased will be at the same price, contingent upon conditions set out in the offer materials, and shares can be withdrawn before the offer expires.
Marathon Petroleum Corp. (NYSE: MPC) has successfully closed its $21 billion sale of Speedway to 7-Eleven, Inc. All conditions were satisfied, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction was finalized after the FTC opted not to take action during the waiting period. MPC has received the sale proceeds and reaffirms its commitment to its capital return plans. A tender offer related to this transaction has yet to commence, with no guarantees on the timing or terms.
7-Eleven has successfully acquired Speedway, enhancing its position as the largest convenience store chain in North America. The acquisition adds approximately 3,800 stores across 36 states, increasing 7-Eleven's portfolio to around 14,000 locations. This strategic move diversifies 7-Eleven's presence, particularly in the Midwest and East Coast, and positions it in 47 of the 50 largest U.S. metro areas. The integration aims to improve efficiencies and innovate the customer experience.
On May 14, 2021, Marathon Petroleum Corp. (MPC) finalized the $21 billion sale of Speedway to 7-Eleven, marking a pivotal moment in the company's strategic portfolio management. With the transaction's completion, MPC plans to utilize approximately $16.5 billion in after-tax cash proceeds for shareholder returns and debt reduction. Key actions include a $10 billion common stock repurchase plan, commencing with a $4 billion cash tender offer aimed at repurchasing up to 10% of its market capitalization. MPC also intends to reduce long-term debt by allocating $2.5 billion from the proceeds.
Marathon Petroleum Corp. (MPC) reported a first-quarter net loss of $242 million, or $(0.37) per diluted share, an improvement from a $9.2 billion loss in Q1 2020. Adjusted EBITDA was $1.6 billion, driven by refining margin recovery and a stable midstream business. The company is nearing completion of its $21 billion Speedway sale to 7-Eleven and has committed to converting the Martinez refinery into a major renewable diesel facility. Despite ongoing pandemic challenges, the refining segment generated positive adjusted EBITDA for the first time since the onset of COVID-19.
Marathon Petroleum Corp. (NYSE: MPC) has announced a quarterly dividend of $0.58 per share, payable on June 10, 2021, to shareholders on record as of May 19, 2021. This dividend declaration reflects the company's ongoing commitment to returning value to its shareholders. Marathon Petroleum operates the largest refining system in the U.S. and has a diverse marketing system, including branded retail outlets and convenience stores nationwide.
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