Marathon Petroleum Corp. (NYSE: MPC) said March 1 it sold some terminal, pipeline and storage assets to MPLX Inc. (NYSE: MPLX), the MLP that it spun off in 2012, for $2.02 billion.
Marathon, based in Findlay, Ohio, has said it would speed up asset sales to MPLX and consider a separation of its Speedway retail business in response to pressure from activist hedge fund Elliott Management to boost its stock price.
"This dropdown of additional high-quality logistics assets to MPLX represents the first of several drops expected to occur in 2017, and is an important part of our plan to unlock the value of our midstream business for investors," Marathon CEO Gary Heminger said in a statement.
The assets being sold include 62 product terminals with about 24 million barrels (MMbbl) of storage capacity, 604 miles of pipeline and 73 tanks with 7.8 MMbbl of storage capacity.
Marathon will receive $504 million in MPLX stock and $1.51 billion in cash for the assets.
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