FINDLAY, Ohio-- MPLX LP, the wholly owned midstream subsidiary of Marathon Petroleum Corp. (MPC), has announced that it has filed a registration statement with the U.S. Securities & Exchange Commission (SEC). This filing is made in anticipation of a proposed initial public offering (IPO) of common units representing limited partner interests in MPLX.
MPC formed MPLX as its primary vehicle to own, operate, develop and acquire crude oil, refined products and other hydrocarbon-based products pipelines and other midstream assets. MPLX's initial assets are expected to 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 and a 100% interest in a butane cavern in West Virginia.
In May, MPC's board authorized and directed its evaluation team to explore the formation and of a master limited partnership (MLP) and to prepare an IPO registration statement.
MPC will contribute a portion of its midstream assets to the MLP and sell a minority interest in the MLP in the IPO, the company said at the time. The potential MLP would support MPC's strategy to grow its midstream business, initially through a contribution of an interest in certain onshore common carrier pipeline assets located in the U.S. Midwest and Gulf Coast regions.
MPC said that it will make an application to the New York Stock Exchange to list the common units under the symbol "MPLX." It has not yet determined the number of common units it will offer or the price range for the offering.
UBS Investment Bank and BofA Merrill Lynch are acting as joint book-running managers and structuring agents for the proposed offering.
Houston-based Marathon Oil Corp. spun off MPC in July 2011 (see Realted Content below for previous CSP Daily News coverage).
Findlay, Ohio-based MPC is the nation's fifth-largest 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. In addition, 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.
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