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The refiner said in October it planned to
assess options for the two master limited partnerships, MPLX and
Andeavor Logistics LP, which transport, store and market its
products through pipelines, terminals and trucking operations.
Under the terms of the agreement, Andeavor shareholders will
receive 1.135 common units of MPLX for each common unit held and
Marathon will receive 1.0328 MPLX common units for each ANDX
common unit held.
The deal has an enterprise value of $14 billion and will close
in the second half of the year.
Marathon has been strengthening its midstream operations and
retail unit, which includes Speedway gas stations and
convenience stores and Andeavor's retail and direct dealer
business, to diversify its revenue streams beyond refining.
Findlay, Ohio-based Marathon also reported a first-quarter loss,
compared with a year-ago profit, as its refining segment posted
a bigger loss due to narrower crude discounts.
Net loss attributable to Marathon was $7 million, or 1 cent per
share, in the three months ended March 31, compared with a
profit of $37 million, or 8 cents per share, a year earlier.
Excluding items, the company reported a loss of 9 cents per
share, while analysts had expected a profit of 5 cents,
according to IBES data from Refinitiv.
Total revenue rose nearly 51 percent to $28.62 billion.
The company said it had decided not to pursue the Garyville
Coker 3 project, which aimed to increase coking capacity at its
Garyville refinery by 50 percent.
Marathon's shares were down nearly 2 percent at $58.32 in
premarket trade.
(Reporting by Debroop Roy and Nishara Karuvalli Pathikkal in
Bengaluru; Editing by James Emmanuel and Sriraj Kalluvila)
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