FINDLAY, Ohio, Oct. 1, 2014 - Marathon Petroleum Corp. (NYSE: MPC) announced
that on Sept. 30, 2014, its subsidiary, Speedway LLC, closed its acquisition of
Hess' retail operations and related assets. The $2.82 billion transaction
includes a $2.37 billion base purchase price, capital leases that were cash
settled at closing for $263 million, and $194 million of estimated working
capital, subject to post-closing adjustments. The transaction was announced May
22, 2014, and includes all of Hess' retail operations, transport operations, and
shipper history on various pipelines.
"This transformative acquisition provides Speedway a significant growth platform
by expanding our retail presence to 23 states throughout the East Coast and
Southeast," said MPC President and Chief Executive Officer Gary R. Heminger.
"Growing Speedway's footprint as a premier convenience store operator into the
Eastern U.S. supports our strategic focus of increased investment in our stable
cash-flow businesses. We believe targeting the significant synergy potential in
this business, including best practices and economies of scale, should drive
continued earnings growth into the future and enhance the value proposition to
MPC investors."
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About Marathon Petroleum Corp.
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 5,300
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 2,740 convenience stores in 23 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 Speedway
Speedway LLC (Speedway), headquartered in Enon, Ohio, is the nation's second-
largest company-owned and -operated convenience store chain with approximately
2,740 stores located in 23 states. Speedway is a wholly owned subsidiary of
Marathon Petroleum Corp. (NYSE: MPC). For further information about Speedway,
visit the company's website at http://www.speedway.com.
Investor Relations Contacts:
Geri Ewing (419) 421-2071
Media Contacts:
Angelia Graves (419) 421-2703
This press release contains forward-looking statements within the meaning of
federal securities laws regarding MPC. These forward-looking statements relate
to, among other things, expectations, estimates and projections concerning the
business and operations of MPC. 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 the
company's control and are difficult to predict. Factors that could cause MPC's
actual results to differ materially from those in the forward-looking statements
include: our ability to successfully integrate Hess' retail operations and
achieve the strategic and other objectives relating to the acquisition,
including any expected synergies; changes to the expected construction costs 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; completion of pipeline
projects within the U.S.; consumer demand for refined products; transportation
logistics; the reliability of processing units and other equipment; our ability
to successfully implement growth opportunities; impacts from repurchases of
shares of MPC common stock under share repurchase authorizations, including the
timing and amounts of any common stock repurchases; state and federal
environmental, economic, health and safety, energy and other policies and
regulations, including the cost of compliance with the Renewable Fuel Standard;
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, 2013, filed with the Securities and Exchange Commission. 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 or in MPC's Form 10-K could
also have material adverse effects on results.
Purchase of Hess' Retail Operations Closes:
http://hugin.info/147922/R/1859839/651772.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Marathon Petroleum Corporation via GlobeNewswire
[HUG#1859839]