Independent refiner, transporter and marketer firm
Marathon Petroleum Corporation
(
MPC
) announced the filling of the initial public offering (IPO) for
the shares of its wholly owned subsidiary, MPLX L.P., with the
Securities and Exchange Commission (SEC).
Marathon Petroleum expects to raise nearly $365 million, to be
directed towards expansion and other activities, through the
offering. However, the number of shares on offer and the price
range have yet to be decided.
The pipeline and storage subsidiary, which was formed by Marathon
Petroleum in March, will likely trade on the New York Stock
Exchange under the symbol "MPLX."
MPLX L.P. is primarily involved with the acquisition and
development of crude oil, refined products and other
hydrocarbon-based product pipelines and other associated midstream
assets. The partnership will hold 100% interest in a butane cavern
in West Virginia along with a 51% stake in a network of crude oil
and products pipeline and storage units across Midwest and Gulf
Coast regions.
Findlay, Ohio-based Marathon Petroleum came into existence
following the 2011 spin-off of Houston, Texas-based
Marathon Oil Corporation
's (
MRO
) refining/sales business into a separate, independent and publicly
traded entity. Marathon Petroleum operates in three segments:
Refining and Marketing, Speedway (Retail) and Pipeline
Transportation.
Marathon Petroleum, the fifth largest domestic refiner, exhibits a
combined crude oil processing capacity of approximately 1,193,000
barrels per day through its portfolio of six refineries. A major
advantage for the company is its proprietary access to pipelines,
which inhibits lower-cost competitors from supplying to Marathon
Petroleum's key markets.
Additionally, the company possesses one of the healthiest balance
sheets among its peers and a robust free cash flow generating
ability. The recent commencement of the $2 billion buyback program
highlights Marathon Petroleum's commitment to create value for
shareholders.
Hence, we believe that Marathon Petroleum is well positioned going
forward and view it as an attractive investment as reflected
through our long-tern Outperform recommendation.
MARATHON PETROL (MPC): Free Stock Analysis
Report
MARATHON OIL CP (MRO): Free Stock Analysis
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