Marathon Petroleum completes $2-billion midstream dropdown to MPLX
Marathon Petroleum Corp. has closed on a deal to contribute certain terminal, pipeline, and storage assets to MPLX LP for $2.015 billion.
The assets include 62 light-product terminals with 24 million bbl of storage capacity; 11 pipeline systems consisting of 604 miles of pipeline; 73 tanks with 7.8 million bbl of storage capacity; a crude oil truck unloading facility at MPC's refinery in Canton, Ohio; and eight NGL storage caverns in Woodhaven, Mich., with 1.8 million bbl of capacity.
"This drop-down of additional high-quality logistics assets to MPLX represents the first of several drops expected to occur in 2017," said Gary R. Heminger, MPC chairman, president, and chief executive officer.
MPC will receive an issuance of $504 million in MPLX equity and $1.511 billion in cash. The equity to be issued in the deal consists of MPLX common units and general partner units to maintain MPC's 2% general partner interest in MPLX. The units will be valued based on the 10-day volume weighted average price of MPLX common units prior to the closing.