11/14/17 – 10:38 A.M.
Marathon Petroleum is selling around $8.1 billion in refining and logistics assets as well as fuels distribution services to MPLX. The company expects the assets to generate $1 billion for the Marathon subsidiary.
In return, MPLX is paying $4.1 billion in cash. MPLX is also giving Marathon equity valued around $4 billion.
In a release, Marathon CEO Gary Heminger said, “We are very pleased to have reached agreement on the terms for the remaining dropdown to MPLX outlined in our strategic actions.” He added, “The addition of these high-quality, fee-based revenue streams to MPLX further diversifies the partnership’s earnings and contributes substantially to the distributable cash flow base of the partnership.”
MPLX is an energy and logistics subsidiary of Marathon Petroleum.