FINDLAY, Ohio, Aug. 2, 2020 /PRNewswire/ — Marathon Petroleum Corp. (NYSE: MPC) right this moment introduced that it and sure of its subsidiaries have entered right into a definitive settlement with 7-Eleven, Inc., an entirely owned, oblique subsidiary of Seven & i Holdings Co., Ltd. (3382: Tokyo), whereby 7-Eleven will purchase Speedway for $21 billion in money. The transaction is predicted to shut within the first quarter of 2021, topic to customary closing situations and regulatory approvals.
“This transaction marks a milestone on the strategic priorities we outlined earlier this 12 months,” mentioned Michael J. Hennigan, president and chief govt officer. “Our announcement crystalizes the numerous worth of the Speedway enterprise, creates certainty round worth realization and delivers on our dedication to unlock the worth of our belongings. On the identical time, the institution of a long-term strategic relationship with 7-Eleven creates alternatives to enhance our business efficiency.”
- Certainty of Worth for MPC Shareholders: The $21 billion valuation represents a big worth unlock. The 100% money transaction instantly captures worth for MPC shareholders relative to potential valuation dangers of different options.
- Important After-Tax Money Proceeds: This transaction is predicted to end in after-tax money proceeds of roughly $16.5 billion. MPC expects to make use of the proceeds to each repay debt to guard its funding grade credit score profile and return capital to shareholders. Particular particulars shall be introduced on the time of transaction shut.
- Lengthy-Time period Relationship Drives Further Worth: The association features a 15-year gasoline provide settlement for roughly 7.7 billion gallons per 12 months related to the Speedway enterprise. The corporate expects incremental alternatives over time to produce 7-Eleven’s remaining enterprise as present preparations mature and as 7-Eleven provides new places in reference to its introduced U.S. and Canada progress technique.
Approvals and Timing
The transaction has been unanimously accepted by the boards of administrators of each corporations. The transaction is predicted to shut within the first quarter of 2021 and is topic to customary closing situations, together with clearance beneath the Hart-Scott-Rodino Antitrust Enhancements Act of 1976.
Convention Name and Earnings Report
At 9:30 a.m. ET tomorrow, MPC will maintain a convention name and webcast to debate 2020 second-quarter monetary outcomes and supply an replace on firm operations. events could pay attention by visiting MPC’s web site at http://www.marathonpetroleum.com and clicking on the “Be a part of the Webcast” hyperlink. A replay of the webcast shall be obtainable on the corporate’s web site for 2 weeks. Monetary data, together with the earnings launch and different investor-related materials, will even be obtainable on-line previous to the convention name and webcast at https://www.marathonpetroleum.com.
Barclays acted as unique monetary advisor and Wachtell, Lipton, Rosen & Katz acted as authorized advisor to MPC. J.P. Morgan acted as impartial monetary advisor to the Speedway transaction committee of MPC’s Board of Administrators.
About Marathon Petroleum Company
Marathon Petroleum Company (MPC) is a number one, built-in, downstream power firm headquartered in Findlay, Ohio. The corporate operates the nation’s largest refining system. MPC’s advertising system contains branded places throughout the USA, together with Marathon model stores. Speedway LLC, an MPC subsidiary, owns and operates retail comfort shops throughout the USA. MPC additionally owns the overall companion and majority restricted companion curiosity in MPLX LP, a midstream firm that owns and operates gathering, processing, and fractionation belongings, in addition to crude oil and lightweight product transportation and logistics infrastructure. Extra data is out there at www.marathonpetroleum.com.
Investor Relations Contact: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Supervisor, Investor Relations
Brian Worthington, Supervisor, Investor Relations
Hamish Banks, Vice President, Company Communications (419) 421-2521
Jamal Kheiry, Supervisor, Company Communications (419) 421-3312
This press launch comprises forward-looking statements throughout the which means of federal securities legal guidelines relating to Marathon Petroleum Company (MPC). These forward-looking statements relate to, amongst different issues, expectations, estimates and projections in regards to the enterprise and operations, technique and worth creation plans of MPC. In accordance with “secure harbor” provisions of the Non-public Securities Litigation Reform Act of 1995, these statements are accompanied by cautionary language figuring out vital elements, although not essentially all such elements, that would trigger future outcomes to vary materially from these set forth within the forward-looking statements. You’ll be able to determine forward-looking statements by phrases akin to “anticipate,” “imagine,” “dedication,” “may,” “design,” “estimate,” “anticipate,” “forecast,” “purpose,” “steering,” “suggest,” “intend,” “could,” “goal,” “alternative,” “outlook,” “plan,” “coverage,” “place,” “potential,” “predict,” “precedence,” “mission,” “proposition,” “potential,” “pursue,” “search,” “ought to,” “technique,” “goal,” “would,” “will” or different related expressions that convey the uncertainty of future occasions or outcomes. Such forward-looking statements should not ensures of future efficiency and are topic to dangers, uncertainties and different elements, a few of that are past the corporate’s management and are tough to foretell. Elements that would trigger MPC’s precise outcomes to vary materially from these implied within the forward-looking statements embody however should not restricted to: with respect to the deliberate Speedway sale, the power to efficiently full the sale throughout the anticipated timeframe or in any respect, primarily based on quite a few elements, together with our capability to fulfill customary situations, together with acquiring regulatory approvals on the proposed phrases and schedule, and any situations imposed in reference to the consummation of the transaction, our capability to make the most of the proceeds as anticipated, and our capability to seize worth from the related ongoing provide relationship and notice the opposite anticipated advantages; the results of the latest outbreak of COVID-19 and the hostile affect thereof on our enterprise, monetary situation, outcomes of operations and money flows, together with, however not restricted to, our progress, working prices, labor availability, logistical capabilities, buyer demand for our merchandise and business demand typically, margins, stock worth, money place, taxes, the worth of our securities and buying and selling markets with respect thereto, our capability to entry capital markets, and the worldwide economic system and monetary markets typically; the results of the latest outbreak of COVID-19, and the present financial surroundings typically, on our working capital, money flows and liquidity, which could be considerably affected by decreases in commodity costs; our capability to scale back capital and working bills; the results of any divestitures on the enterprise, monetary situation, outcomes of operations and money flows; future ranges of revenues, refining and advertising margins, working prices, retail gasoline and distillate margins, merchandise margins, revenue from operations, web revenue and earnings per share; the regional, nationwide and worldwide availability and pricing of refined merchandise, crude oil, pure gasoline, NGLs and different feedstocks; shopper demand for refined merchandise; the power to handle disruptions in credit score markets or adjustments to credit score scores; future ranges of capital, environmental and upkeep expenditures; common and administrative and different bills; the success or timing of completion of ongoing or anticipated capital or upkeep initiatives; the reliability of processing items and different gear; enterprise methods, progress alternatives and anticipated funding; share repurchase authorizations, together with the timing and quantities of such repurchases; the adequacy of capital sources and liquidity, together with availability, timing and quantities of free money stream essential to execute enterprise plans and to impact any share repurchases or to take care of or enhance the dividend; the impact of restructuring or reorganization of enterprise parts; the potential results of judicial or different proceedings on the enterprise, monetary situation, outcomes of operations and money flows; continued or additional volatility in and/or degradation of common financial, market, business or enterprise situations on account of the COVID-19 pandemic, different infectious illness outbreaks or in any other case; non-payment or non-performance by our producer and different prospects; compliance with federal and state environmental, financial, well being and security, power and different insurance policies and rules, together with the price of compliance with the Renewable Gasoline Commonplace, and/or enforcement actions initiated thereunder; the anticipated results of actions of third events akin to opponents, activist traders or federal, overseas, state or native regulatory authorities or plaintiffs in litigation; the affect of hostile market situations or different related dangers to these recognized herein affecting MPLX; and the elements set forth beneath the heading “Danger Elements” in MPC’s Annual Report on Type 10-Ok for the 12 months ended Dec. 31, 2019, and in Kinds 10-Q and different filings, filed with the SEC. Copies of MPC’s Type 10-Ok, Kinds 10-Q and different SEC filings can be found on the SEC’s web site, MPC’s web site at https://www.marathonpetroleum.com/Investors/ or by contacting MPC’s Investor Relations workplace. Copies of MPLX’s Type 10-Ok, Kinds 10-Q and different SEC filings can be found on the SEC’s web site, MPLX’s web site at http://ir.mplx.com or by contacting MPLX’s Investor Relations workplace.
Now we have primarily based our forward-looking statements on our present expectations, estimates and projections about our enterprise and business. We warning that these statements should not ensures of future efficiency and you shouldn’t rely unduly on them, as they contain dangers, uncertainties, and assumptions that we can’t predict. As well as, we have now primarily based many of those forward-looking statements on assumptions about future occasions which will show to be inaccurate. Whereas our administration considers these assumptions to be cheap, they’re inherently topic to important enterprise, financial, aggressive, regulatory and different dangers, contingencies and uncertainties, most of that are tough to foretell and plenty of of that are past our management. Accordingly, our precise outcomes could differ materially from the long run efficiency that we have now expressed or forecast in our forward-looking statements. We undertake no obligation to replace any forward-looking statements besides to the extent required by relevant legislation.
SOURCE Marathon Petroleum Company
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