Marathon Petroleum Corporation (MPC)

  • 10/2/16 SC 13G/A: The Vanguard Group, Amount Beneficially Owned: 32,881,803 (b) Percent of Class: 6.16%
  • 3/2/16 Brooks Raymond L officer; Sr. VP refining; hold 2.14m shares
  • 3/2/16 Heminger Gary R. president and CEO ; 9.99m
  • 3/2/16 Bedell Richard D. vp refining; 52.1m
  • 3/2/16 Kelley Thomas M. vp. Marketing 30.2m
  • 3/2/16 Kenney Anthony R. President. Speedway LLC, 6.98m
  • 3/2/16 8-K, Q4 and 2015 report
    • Q4 earnings of $187 million ($0.35 per diluted share), including a pretax charge of $370 million ($0.44 per diluted share) to value inventories at the lower of cost or market; full-year earnings of $2.85 billion ($5.26 per diluted share),compared with $2.52 billion, or $4.39 per diluted share, in 2014.
    • • Completed strategic combination between MPLX and MarkWest •The results of MarkWest are included from the Dec. 4, 2015, merger date.
    • Returned $1.6 billion to shareholders in 2015, including $362 million in the fourth quarter
    • The merger of MarkWest Energy Partners, L.P., and MPC’s sponsored master limited partnership (MLP) MPLX LP (NYSE: MPLX) on Dec. 4,
    • MPC has offered to contribute its inland marine business to MPLX at a supportive valuation in exchange for MPLX equity.  The transaction is expected to close in the second quarter of 2016, pending requisite approvals.
    • ?!Heminger noted that the continued decline in commodity prices, and the market’s increasing belief that these conditions will persist for some period of time, has resulted in a challenging valuation and a higher yield environment within the MLP space.!?
    • MPC is focused on strengthening the earnings power of all aspects of its business, with expanded, margin-enhancing investments across the enterprise. MPC recently announced plans to invest $2 billion in the Galveston Bay refinery over the next five years, an investment program collectively referred to as the South Texas Asset Repositioning (STAR) program. “The investments planned as part of the STAR program are intended to increase production of higher-value products and improve the facility’s reliability, as well as increase processing capacity. These high- return investments will also fully integrate our Galveston Bay refinery with our Texas City refinery, making it the second-largest refinery in the U.S.,” said Heminger. “We expect a rapid payback on the staged investments planned for the STAR program.”
    • noting that MPC has repurchased approximately 28 percent of the shares that were outstanding when it became a standalone company.
    • Refining & Marketing segment income from operations was $207 million in the fourth quarter of 2015 and $4.19 billion for full-year 2015, compared with $1.02 billion and $3.61 billion in the fourth quarter of 2014 and full-year 2014, respectively. The decrease in quarter-over-quarter results was primarily due to the effects of the $345 million LCM charge and a last-in, first-out (LIFO) inventory accounting charge of approximately $45 million in the fourth quarter of 2015 compared to a LIFO benefit of approximately $240 million in the fourth quarter of 2014.
    • The blended 6-3-2-1 crack spread for the full year increased from $8.11 per barrel in 2014 to $9.70 per barrel in 2015.
    • Debt to Equity ratio 60.7% (too high?)
    • shares 531m
  • 1/8/15 SC 13G/A Blackrocks 54,356,795; 10.2%
  • 1/6/15 USHER THOMAS J, director, 81.9k shares
  • 1/6/15 Snow John W. , director, 75,273.967
  • 12/14/15 8-k, $1,500,000,000 MARATHON PETROLEUM CORPORATION
    • $600,000,000 2.700% SENIOR NOTES DUE 2018
    • $650,000,000 3.400% SENIOR NOTES DUE 2020
    • $250,000,000 5.850% SENIOR NOTES DUE 2045
    • (i) Marathon Petroleum Company LP (“MPC LP”), a Delaware limited partnership in which the Company owns, indirectly, a 55% general partnership interest and, directly, a 45% limited partnership interest; (ii) Speedway LLC (“Speedway”), a Delaware limited liability company of which the Company owns, indirectly, 100% of the outstanding limited liability company membership interests;
    • Purchase Price:
      2018 Notes: 99.470% per $1,000 principal amount plus accrued interest, if any, from December 14, 2015
      2020 Notes: 99.272% per $1,000 principal amount plus accrued interest, if any, from December 14, 2015
      2045 Notes: 98.872% per $1,000 principal amount plus accrued interest, if any, from December 14, 2015
  • 12/10/15 8-k,
    • At the effective time of the Merger on December 4, 2015 (the “Effective Time”), each outstanding common unit of MarkWest (the “MWE Common Units”) was converted into the right to receive (i) 1.09 MPLX Common Units (such consideration, the “Common Unit Merger Consideration”) and (ii) $6.20 in cash
    • At the Effective Time, each Class B unit of MarkWest (the “MWE Class B Units”) outstanding immediately prior to the Effective Time was converted into the right to receive one Class B unit of MPLX (the “MPLX Class B Units”) having substantially similar rights, including with respect to conversion and registration rights and obligations that the MWE Class B Units had immediately prior to the Effective Time. On July 1, 2016 and July 1, 2017 (unless earlier converted upon certain fundamental changes regarding MPLX), each MPLX Class B Unit will automatically convert into 1.09 MPLX Common Units and the right to receive the Cash Consideration
    • As a result of the completion of the Merger, as of the Effective Time, MPLX assumed an aggregate principal amount of $4.1 billion in senior notes issued by MarkWest and MarkWest Energy Finance Corporation consisting of: $750 million aggregate principal amount of 5.500% senior notes due February 15, 2023; $1.0 billion aggregate principal amount of 4.500% senior notes due July 15, 2023; $1.15 billion aggregate principal amount of 4.875% senior notes due December 1, 2024; and $1.2 billion aggregate principal amount of 4.875% senior notes due June 1, 2025 (collectively, the “MarkWest senior notes”).
  • 12/8/2015 MPC 28,554,313 MPLX shares Received in exchange for 22,640,000 MarkWest Energy Partners, L.P. (“MarkWest”) Class A units in connection with the merger of Sapphire Holdco LLC, a wholly-owned subsidiary of the Issuer, with and into MarkWest on December 4, 2015, with MarkWest as the surviving entity (the “Merger”).
  • 11/02/15 10-Q Quarterly report
    • As of September 30, 2015, we owned a 71.5 percent interest in MPLX
    • MPLX’s assets consisted of a 99.5 percent general partner interest in MPLX Pipe Line Holdings LP (“Pipe Line Holdings”), which owns a network of common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States. MPLX also owns a 100 percent interest in a butane cavern in Neal, West Virginia.
    • As of September 30, 2015, the implied total enterprise value for MWE was approximately $13.7 billion, including the assumption of debt of approximately $4.6 billion. MPC would contribute $675 million of cash to MPLX to fund the one-time cash payment
    • On March 1, 2014, we sold MPLX a 13 percent interest in Pipe Line Holdings for $310 million. MPLX financed this transaction with $40 million of cash onhand and $270 million of borrowings on its bank revolving credit facility. On December 1, 2014, we sold and contributed interests in Pipe Line Holdings totaling 30.5 percent to MPLX for $600 million in cash and 2.9 million MPLX common units valued at $200 million. MPLX financed the cash portion of this transaction with $600 million of borrowings on its bank revolving credit facility. The sales and contribution of our interests in Pipe Line Holdings to MPLX resulted in a change in our ownership in Pipe Line Holdings, but not a change in control. We accounted for them as transactions between entities under common control and did not record a gain or loss.
    • On December 8, 2014, MPLX completed a public offering of 3.5 million common units at a price to the public of $66.68 per common unit, for aggregate net proceeds of $221 million. MPLX used the net proceeds from this offering to repay borrowings under its bank revolving credit facility and for general partnership purposes. On December 10, 2014, we exercised our right to maintain our two percent general partner interest in MPLX by purchasing 130 thousand general partner units for $9 million. On February 12, 2015, MPLX completed a public offering of $500 million aggregate principal amount of four percent unsecured senior notes due February 15, 2025 (the “MPLX Senior Notes”)
    • On September 30, 2014, we acquired from Hess Corporation (“Hess”) all of Hess’ retail locations, transport operations and shipper history on various pipelines, including approximately 40,000 barrels per day on Colonial Pipeline for $2.82 billion….The purchase price allocation resulted in the recognition of $629 million in goodwill by our Speedway segment.
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