Marathon Petroleum Announces $21B Sale
Marathon Petroleum Corporation revealed Sunday that it has entered into a definitive agreement with 7-Eleven for the sale of Speedway for $21 billion in cash.
The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions and regulatory approvals, Marathon Petroleum noted.
The deal is anticipated to result in after-tax cash proceeds of approximately $16.5 billion, which Marathon Petroleum said it expects to use to both repay debt to protect its investment grade credit profile and return capital to shareholders.
“This transaction marks a milestone on the strategic priorities we outlined earlier this year,” Michael J. Hennigan, the president and chief executive officer of Marathon Petroleum, said in a company statement posted on Marathon Petroleum’s website.
“Our announcement crystalizes the significant value of the Speedway business, creates certainty around value realization and delivers on our commitment to unlock the value of our assets,” he added in the statement.
On July 31, Marathon Petroleum said it had informed employees at its Martinez and Gallup refineries that it will indefinitely idle the facilities with no plans to restart normal operations. Martinez will be converted to a terminal facility and the repositioning of Martinez to a renewable diesel facility is being evaluated, Marathon Petroleum revealed. Most jobs at the refineries will no longer be necessary and a phased reduction of staffing levels is expected to begin in October, Marathon Petroleum outlined.
Marathon Petroleum describes itself as a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the United States’ largest refining system with more than three million barrels per day of crude oil capacity across 16 refineries, its website shows. Marathon Petroleum, which is expected to announce its second quarter results later today, traces its roots back to 1887.
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