Marathon Petroleum Corp. and MPLX LP announce 2016 capital investment plan
(Thomson Reuters ONE) -
FINDLAY, Ohio, Dec. 3, 2015 - At an analyst and investor presentation today,
Marathon Petroleum Corp. (NYSE: MPC) announced its 2016 capital investment plan
of $4.2 billion. The plan includes $1.5 billion for MPC's refining and marketing
segment; nearly $400 million for Speedway, MPC's retail subsidiary; and $2.2
billion for MPC's pipeline transportation segment, which includes $1.7 billion
for MPLX LP (NYSE: MPLX).
"We continue to focus on investing in our more stable cash-flow generating
midstream and Speedway businesses, as well as pursuing margin-enhancing projects
in our core refining and marketing business," said Gary R. Heminger, MPC
president and chief executive officer. "Our capital allocation will enable us to
continue executing on this commitment and drive long-term value for our
investors."
The refining and marketing segment's capital plan of $1.5 billion includes
approximately $350 million for midstream investments, approximately $475 million
for margin-enhancing projects and approximately $675 million for refinery
sustaining capital. One of the capital projects for the refining and marketing
segment is the South Texas Asset Repositioning (STAR) program at MPC facilities
in Texas City, Texas. "The STAR program represents an approximate $2 billion
investment through 2020 that will fully integrate our Galveston Bay and Texas
City refineries, increase our overall crude processing capacity, increase our
distillate and gas oil recovery and improve the refinery's reliability," said
Heminger. "It will create a world-class refining complex with a crude processing
capacity of 585,000 barrels per day, making it the second-largest U.S.
refinery."
Speedway's nearly $400 million capital budget is focused on store remodels,
particularly remodels of its recently converted stores along the East Coast, and
building new locations in Speedway's core markets.
The $2.2 billion of capital allocated to MPC's pipeline transportation segment
includes $1.7 billion for MPLX. The largest component of the MPLX investment
plan, over $1.2 billion, is attributed to MarkWest's ongoing development of
natural gas and gas liquids infrastructure to support its producer customers
throughout the Southwest and Northeast regions, particularly in the Marcellus
and Utica shales.
MPLX continues its development of the Cornerstone pipeline project in eastern
Ohio and is further expanding its Utica shale build-out associated with this
project. MPC also continues its capital focus to expand its inventory of assets
that could be dropped down to MPLX to support its targeted growth profile over
the next several years. Heminger said the addition of MarkWest substantially
expands the companies' opportunity set across the hydrocarbon value chain.
"Together, MPC, MPLX and MarkWest see significant future incremental
opportunities that will capitalize on their respective expertise to capture
commercial synergies and drive value for the investors in both businesses," he
said.
"Both MPC and MPLX have sustainable competitive advantages through our fully
integrated system, which gives us tremendous flexibility to meet market needs,"
said Heminger. "Our assets are strategically located, and our continuing
investments are focused on achieving consistent long-term performance for our
investors."
###
About Marathon Petroleum Corporation
MPC is the nation's fourth-largest refiner, with a crude oil refining capacity
of approximately 1.8 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,600
independently owned retail outlets across 19 states. In addition, Speedway LLC,
an MPC subsidiary, owns and operates the nation's second-largest convenience
store chain, with approximately 2,760 convenience stores in 22 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.
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 99.5 percent 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 with approximately 1 million
barrels of natural gas liquids storage capacity.
Investor Relations Contacts:
Geri Ewing (419) 421-2071
Teresa Homan (419) 421-2965
Media Contact:
Chuck Rice (419) 421-2521
Jamal Kheiry (419) 421-3312
Forward-looking Statements
This press release contains forward-looking statements within the meaning of
federal securities laws regarding Marathon Petroleum Corporation ("MPC"), MPLX
LP ("MPLX"), and MarkWest Energy Partners, L.P. ("MWE"). These forward-looking
statements relate to, among other things, expectations, estimates and
projections concerning the business and operations of MPC, MPLX, and MWE. You
can identify forward-looking statements by words such as "anticipate,"
"believe," "estimate," "objective," "expect," "forecast," "guidance," "imply,"
"opportunity," "outlook," "plan," "project," "potential," "target," "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 the companies' control and are difficult
to predict. In addition to other factors described herein that could cause
MPLX's results to differ materially from those implied in these forward-looking
statements, negative capital market conditions, including a persistence or
increase of the current yield on common units, which is higher than historical
yields, could adversely affect MPLX's ability to meet its distribution growth
guidance, particularly with respect to the later years of such guidance. Factors
that could cause MPC's actual results to differ materially from those implied in
the forward-looking statements include: risks described below relating to the
MPLX/MWE merger; changes to the expected construction costs and timing of
pipeline projects; 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; an easing or lifting of the
U.S. crude oil export ban; completion of pipeline capacity to areas outside the
U.S. Midwest; consumer demand for refined products; transportation logistics;
the reliability of processing units and other equipment; MPC's ability to
successfully implement growth opportunities; modifications to MPLX earnings and
distribution growth objectives; federal and state environmental, economic,
health and safety, energy and other policies and regulations; MPC's ability to
successfully integrate the acquired Hess retail operations and achieve the
strategic and other expected objectives relating to the acquisition; changes to
MPC's capital budget; other risk factors inherent to MPC's industry; and the
factors set forth under the heading "Risk Factors" in MPC's Annual Report on
Form 10-K for the year ended Dec. 31, 2014, filed with Securities and Exchange
Commission (SEC). Factors that could cause MPLX's or MWE's actual results to
differ materially from those implied in the forward-looking statements include:
the ability to satisfy conditions to the closing of the transaction contemplated
by the merger agreement; risk that the synergies from the MPLX/MWE transaction
may not be fully realized or may take longer to realize than expected;
disruption from the MPLX/MWE transaction making it more difficult to maintain
relationships with customers, employees or suppliers; risks relating to any
unforeseen liabilities of MWE or MPLX, as applicable; the adequacy of MPLX's and
MWE's respective capital resources and liquidity, including, but not limited to,
availability of sufficient cash flow to pay distributions, and the ability to
successfully execute their business plans and implement their growth strategies;
the timing and extent of changes in commodity prices and demand for crude oil,
refined products, feedstocks or other hydrocarbon-based products; volatility in
and/or degradation of market and industry conditions; completion of pipeline
capacity by 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 MPLX's commercial
agreements; each company's ability to successfully implement its growth plan,
whether through organic growth or acquisitions; modifications to earnings and
distribution growth objectives; federal and state environmental, economic,
health and safety, energy and other policies and regulations; changes to MPLX's
capital budget; other risk factors inherent to MPLX or MWE's industry; and the
factors set forth under the heading "Risk Factors" in MPLX's Annual Report on
Form 10-K for the year ended Dec. 31, 2014, filed with the SEC; and the factors
set forth under the heading "Risk Factors" in MWE's Annual Report on Form 10-K
for the year ended Dec. 31, 2014, and Quarterly Report on Form 10-Q for the
quarter ended Sept. 30, 2015, filed with the SEC. These risks, as well as other
risks associated with MPLX, MWE and the transaction, are also more fully
discussed in the joint proxy statement and prospectus included in the
registration statement on Form S-4 filed by MPLX and declared effective by the
SEC on Oct. 29, 2015, as supplemented. In addition, the forward-looking
statements included herein could be affected by general domestic and
international economic and political conditions. Unpredictable or unknown
factors not discussed here, in MPC's Form 10-K, in MPLX's Form 10-K, or in MWE's
Form 10-K and Form 10-Qs could also have material adverse effects on forward-
looking statements. Copies of MPC's Form 10-K are available on the SEC website,
MPC's website at http://ir.marathonpetroleum.com or by contacting MPC's Investor
Relations office. Copies of MPLX's Form 10-K are available on the SEC website,
MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations
office. Copies of MWE's Form 10-K and Form 10-Qs are available on the SEC
website, MWE's website at http://investor.markwest.com or by contacting MWE's
Investor Relations office.
Additional Information Related to MPLX/MWE Transaction
In connection with the pending acquisition, MWE and MPLX have filed relevant
materials with the SEC, including MPLX's registration statement on Form S-4 that
includes a definitive joint proxy statement and a prospectus declared effective
by the SEC on Oct. 29, 2015 and a supplement to the proxy statement/prospectus
filed on Nov. 17, 2015. Investors and security holders are urged to read all
relevant documents filed with the SEC, including the definitive joint proxy
statement and prospectus, because they contain important information about the
pending transaction. Investors and security holders are able to obtain the
documents free of charge at the SEC's website, http://www.sec.gov, or for free
from MPLX LP at its website, http://ir.mplx.com, or in writing at 200 E. Hardin
Street, Findlay, Ohio 45840, Attention: Corporate Secretary, or for free from
MWE by contacting Investor Relations by phone at 1-(866) 858-0482 or by email at
investorrelations(at)markwest.com.
MPC and MPLX 2016 Capital Plan:
http://hugin.info/155038/R/1971292/720796.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1971292]
Datum: 03.12.2015 - 18:04 Uhr
Sprache: Deutsch
News-ID 437467
Anzahl Zeichen: 14090
contact information:
Town:
FINDLAY
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 364 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Marathon Petroleum Corp. and MPLX LP announce 2016 capital investment plan"
steht unter der journalistisch-redaktionellen Verantwortung von
MPLX LP (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
