A look back at MPC's first five years as an independent company
Five years ago, Marathon Petroleum Corporation (MPC) became an independent company. Below, we're proud to showcase some of the key moments that helped shape the company we are today.
Marathon Petroleum Corporation is spun-off from Marathon Oil Corporation, becoming an independent, publicly traded company. We are listed on the Standard and Poor’s 500 index shortly thereafter. “The benefits of independence have become increasingly apparent and establishing Marathon Petroleum as a stand-alone energy company, with enhanced flexibility to pursue tailored strategies, will drive long-term value for our shareholders and customers alike,” explained Gary R. Heminger, president and chief executive officer of MPC.
Share repurchase program begins, with an initial $2 billion authorization from the board of directors. “The confidence that we have in the cash generation of the business and our strengthening financial position provides this opportunity to enhance value to our shareholders through a repurchase program,” said Gary Heminger, president and CEO. The board has authorized additional share repurchases since this first one, and through 2015, more than $7 billion had been returned to shareholders via repurchases.
MPLX LP announces the launch of its initial public offering (IPO), pricing the 17.3 million common units at $22 each. Upon conclusion of the IPO, MPC had a 2 percent general partner interest in MPLX, which was formed to become MPC’s primary vehicle for ownership, operation and growth of hydrocarbon-based pipelines and other midstream assets.
Galveston Bay refinery (GBR) acquisition closes, including the world-scale refinery, a cogeneration facility, four light-products terminals in the Southeast, retail marketing contract assignments for about 1,200 branded sites, and a 50,000 bpd allocation on Colonial Pipeline, among other assets.
We acquire Cincinnati Biorefining, broadening our renewable fuels portfolio. “We continue to grow our biodiesel blending volumes and this acquisition will be a natural value chain fit,” said Mike Palmer, senior vice president of Supply, Distribution and Planning. “Also, the facility is located in the heart of MPC’s Midwest assets, providing efficiencies in our product supply logistics.”
Speedway acquires Hess retail operations, including more than 1,200 stores in 16 states. It also included transport operations and shipper history on various pipelines. “This transformative acquisition provides Speedway a significant growth platform by expanding our retail presence to 22 states throughout the East Coastand Southeast,” said Gary Heminger, MPC president and CEO.
MPLX concludes binding open season for Cornerstone Pipeline and related build-out projects. “While Marathon Petroleum has committed to be an anchor shipper on Cornerstone, the pipeline is being increased in diameter to 16 inches to provide an industry solution, including opportunities to connect many Midwest refineries to growing production from the Utica Shale, with the potential to ultimately reach Chicago-area refineries and pipelines that supply diluent to Western Canada,” said Gary Heminger, chairman and CEO of MPLX.
MPC executes a two-for-one stock split in the form of a stock dividend, in which shareholders received one share of MPC common stock for each share held. “Our share price has increased substantially since the spinoff, and we believe the stock split will make our shares more affordable for a wider range of investors, and reflects our confidence that the value proposition for MPC shareholders remains very strong,” said President and CEO Gary Heminger.
MPLX completes its strategic combination with MarkWest Energy Partners, L.P. “This combination is a significant step in executing MPC’s strategy to grow its higher-valued, stable cash-flow midstream business by transforming MPLX into a large-cap, diversified master limited partnership,” said Gary Heminger, MPC president and CEO.
MPC contributes its Marine Transportation organization to MPLX. “The high-quality inland marine assets are strategically located in key markets,” said MPLX Chairman and Chief Executive Officer Gary Heminger. “The addition of this business to the partnership … [provides] a highly predictable income and cash-flow stream that further diversifies the earnings mix for MPLX.”
MarkWest begins operation of its Hidalgo Complex, a 200 million cubic-feet-per-day cryogenic gas processing facility in the Delaware Basin of Texas. “We are excited to expand our midstream presence in the Southwest and to begin supporting producers in the Delaware Basin,” MPLX President Donald C. Templin said. “The Hidalgo Complex is backed by long-term, fee-based agreements with strong customers who are dedicated to developing this exceptional resource in West Texas.”