MPLX LP Announces Acquisition of Interest in MPLX Pipe Line Holdings LP
(Thomson Reuters ONE) -
FINDLAY, Ohio, April 30, 2013 - MPLX LP (NYSE: MPLX) today announced that it has
agreed to acquire an additional 5 percent interest in MPLX Pipe Line Holdings LP
(Pipe Line Holdings) from a subsidiary of Marathon Petroleum Corporation (NYSE:
MPC) for $100 million on May 1, 2013. This transaction represents MPLX's first
acquisition following its initial public offering (IPO) in October 2012. This
acquisition will increase MPLX's interest in Pipe Line Holdings to 56 percent
from the 51 percent interest it held since the IPO. Pipe Line Holdings owns a
100 percent interest in Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line
LLC (ORPL). MPL and ORPL own one of the largest networks of common carrier crude
oil and product pipelines in the U.S. based on total volume delivered; a barge
dock on the Mississippi River; and crude oil and product storage facilities.
"MPLX has many avenues to achieve an attractive distribution growth rate over an
extended period of time," said Gary R. Heminger, chief executive officer. "We
believe the acquisition of this additional interest in Pipe Line Holdings, along
with increasing volumes and tariff revenues, will position MPLX to achieve its
distribution growth rate objectives."
The acquisition price represents an approximate 9.5 times multiple of the
assets' forecasted next twelve months EBITDA. The transaction is expected to be
immediately accretive to distributable cash flow. MPLX intends to fund the
acquisition with cash on hand.
The terms of the acquisition were approved by the board's Conflicts Committee,
which is comprised entirely of independent directors. This committee was advised
by Evercore Partners as to financial matters and Akin Gump Strauss Hauer & Feld
LLP as to legal matters.
###
About MPLX LP
MPLX is a fee-based, growth-oriented master limited partnership formed in 2012
by Marathon Petroleum Corporation to own, operate, develop and acquire pipelines
and other midstream assets related to the transportation and storage of crude
oil, refined products and other hydrocarbon-based products. Headquartered in
Findlay, Ohio, MPLX's assets consist of a majority equity interest in a network
of common carrier crude oil and products pipeline assets located in the Midwest
and Gulf Coast regions of the United States and a 100 percent interest in a
butane storage cavern located in West Virginia.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Media Contacts:
Angelia Graves (419) 421-2703
This press release contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements relate to, among other
things, MPLX's expectations, estimates and projections concerning MPLX business
and operations. You can identify forward-looking statements by words such as
"anticipate," "believe," "estimate," "expect," "forecast," "project," "could,"
"may," "should," "would," "will" or other 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 MPLX's control and are difficult to
predict. Factors that could cause actual results to differ materially from those
in the forward-looking statements include: the adequacy of our capital resources
and liquidity, including, but not limited to, availability of sufficient cash
flow to pay distributions and execute our business plan; completion of pipeline
capacity by our competitors; disruptions due to equipment interruption or
failure, including electrical shortages and power grid failures; the suspension,
reduction or termination of MPC's obligations under our commercial agreements;
our ability to successfully implement our growth strategy, whether through
organic growth or acquisitions; state and federal environmental, economic,
health and safety, energy and other policies and regulations; other risk factors
inherent to our industry; and the factors set forth under the heading "Risk
Factors" in MPLX's Annual Report on Form 10-K for the year ended December
31, 2012 filed with the Securities and Exchange Commission (SEC). Unpredictable
or unknown factors not discussed here or in MPLX's Form 10-K could also have
material adverse effects on forward-looking statements. Copies of MPLX's Form
10-K are available on the SEC website, MPLX's website at http://www.ir.mplx.com
or by contacting MPLX's Investor Relations Office.
MPLX LP Acquisition:
http://hugin.info/155038/R/1697647/559480.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: MPLX LP via Thomson Reuters ONE
[HUG#1697647]
Datum: 30.04.2013 - 13:09 Uhr
Sprache: Deutsch
News-ID 254496
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contact information:
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