Purchase of BP's Texas City Refinery and Related Assets Closes
FINDLAY, Ohio, Feb. 1, 2013 - Marathon Petroleum Corporation (NYSE: MPC) today
announced that it has closed the transaction with BP to purchase several assets,
including a 451,000 barrel per calendar day refinery located in Texas City,
Texas. The refinery will be renamed and referred to in future MPC communications
as the Galveston Bay refinery. Additionally, the transaction includes a 1,040
megawatt cogeneration facility, four light product terminals located in the
Southeast, retail marketing contract assignments for approximately 1,200 branded
sites representing approximately 61,000 barrels per day (bpd) of gasoline sales,
three operating intrastate natural gas liquids pipelines originating at the
refinery and a 50,000 bpd allocation of BP's Colonial Pipeline Company shipper
history.
The transaction was initially announced on Oct. 8, 2012. The base purchase price
is approximately $598 million, plus inventories valued at approximately $1.1
billion. The agreement also contains an earnout provision under which MPC could
pay up to an additional $700 million over six years, subject to certain
conditions. The transaction is expected to be accretive to earnings in the first
year of operation.
"This is a unique opportunity to acquire, at an attractive price, a world-scale
refinery on the western Gulf Coast that is well positioned to benefit from the
growing supply of North American crude oil," said MPC President and Chief
Executive Officer Gary R. Heminger. "The refinery and related assets should
enhance our current footprint by integrating well with our existing operations.
This transaction will provide MPC the opportunity to grow in contiguous markets,
expand our export opportunities and further optimize our Gulf Coast operations.
We believe this transaction will create long term value for our shareholders."
"As our history has shown, our focus will remain on the safe and environmentally
responsible operations of all of our facilities. We look forward to providing
quality products and services to meet the needs of our new branded jobbers. We
welcome all of our new employees at the Galveston Bay refinery and product
terminals," said Heminger.
###
About Marathon Petroleum Corporation
MPC is the nation's fourth-largest refiner, with a crude oil refining capacity
of approximately 1.7 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,000
independently owned retail outlets across 17 states. In addition, Speedway LLC,
an MPC subsidiary, owns and operates the nation's fourth-largest convenience
store chain, with approximately 1,460 convenience stores in seven states. MPC
also owns, leases or has ownership interests in approximately 8,300 miles of
pipeline. 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, feedstocks and petroleum-related
products efficiently through the company's distribution network in the Midwest,
Southeast and Gulf Coast regions. For additional information about the company,
please visit our website at http://www.marathonpetroleum.com.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Media Contacts:
Angelia Graves (419) 421-2703
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements relate to, among other things, MPC's current expectations, estimates
and projections concerning: MPC business and operations, the potential earnings
and synergies of the acquired assets, MPC's ability to successfully integrate
the assets into its operations and the assets being accretive to earnings. You
can identify forward-looking statements by words such as "should," "would,"
"will," "expect" or 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 company's control and are difficult to predict. Factors
that could cause actual results to differ materially from those in the forward-
looking statements include:Â 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; changes in
transportation logistics; the availability of materials and labor, the
reliability of processing units and other equipment; and other risks customary
to the industry. Additionally, the forward-looking statements included herein
could be affected by general domestic and international economic and political
conditions, as well as factors set forth under the heading "Risk Factors" in
MPC's Annual Report on Form 10-K for the year ended December 31, 2011 filed with
the Securities and Exchange Commission (the "SEC"). Unpredictable or unknown
factors not discussed here or in MPC'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, at http://www.ir.marathonpetroleum.com or by
contacting MPC's Investor Relations Office.
Purchase of Refinery and Related Assets Closes:
http://hugin.info/147922/R/1674822/545569.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Marathon Petroleum Corporation via Thomson Reuters ONE
[HUG#1674822]