MPLX Launches IPO

Plans to raise $300 million by offering 15 million shares at price range of $19 to $21

FINDLAY, Ohio -- MPLX LP, a master limited partnership (MLP) and a subsidiary of Marathon Petroleum Corp. (MPC), has announced the launch of its initial public offering (IPO) of 15 million common units representing limited partner interests pursuant to a registration statement filed with the U.S. Securities & Exchange Commission (SEC).

It plans to raise $300 million by offering the shares at a price range of $19 to $21.

MPLX is a fee-based, growth-oriented limited partnership recently formed by Marathon Petroleum Corp., Findlay, Ohio, to own, operate, develop and acquire crude oil, refined product and other hydrocarbon-based product pipelines and other midstream assets. Its assets consist of a 51% 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% interest in a butane cavern located in West Virginia.

MPC has stated that it intends for MPLX to be the primary growth vehicle for its midstream business.

Houston-based Marathon Oil Corp. spun off MPC in July 2011. It is a major refiner with a crude capacity in excess of 1.1 million barrels per day in its six-refinery system. MPC owns, operates, leases or has ownership interest in approximately 9,600 miles of pipeline. 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.

Marathon-brand gasoline is sold through approximately 5,100 independently owned locations across 18 states. Enon, Ohio-based Speedway LLC, an MPC subsidiary, owns and operates the nation's fourth largest convenience store chain, with approximately 1,375 locations in seven states.

MPLX will grant the underwriters a 30-day option to purchase from MPLX up to an additional 2,250,000 common units at the IPO price to cover overallotments, if any. The common units will be listed on the New York Stock Exchange (NYSE) under the ticker symbol "MPLX."

The common units being offered represent a 19.9% limited partner interest in MPLX, or a 22.9% limited partner interest if the underwriters exercise, in full, their option to purchase additional common units. MPC, through certain of its subsidiaries, will hold a 2% general partner interest and the remaining limited partner interest in MPLX.

UBS Investment Bank, BofA Merrill Lynch, Morgan Stanley, Citigroup and J.P. Morgan are acting as joint book-running managers for the offering. Barclays, Deutsche Bank Securities and Wells Fargo Securities are acting as co-managers for the offering.

See Related Content below for previous CSP Daily News coverage. And watch for an exclusive investigative report on MLPs in the convenience store/retail petroleum industry in the November issue of CSP magazine.