Summary
Marathon Petroleum Corporation (MPC) announced the completion of a significant acquisition on September 30, 2014, through its wholly-owned subsidiary Speedway LLC. This acquisition involves the purchase of Hess Corporation's retail operations, transport operations, and shipper history on various pipelines. Initially planned as a lease with a buyout option, the transaction was amended to an outright acquisition, increasing the cash purchase price by $262.9 million. This strategic move signifies MPC's expansion in its downstream segment, integrating Hess's retail and transportation assets. The total consideration for the acquisition was approximately $2.82 billion in cash, funded through existing cash reserves and debt financing. Investors should note this development as it represents a material expansion of Speedway's footprint and operational capabilities.
Key Highlights
- 1Speedway LLC, a subsidiary of MPC, completed the acquisition of Hess Corporation's retail operations, transport operations, and pipeline shipper history on September 30, 2014.
- 2The acquisition was originally structured as a lease with a buyout, but was amended to an outright purchase.
- 3The amendment to the purchase agreement increased the cash purchase price by $262,900,000.
- 4The total cash consideration paid for the acquisition was approximately $2.82 billion, subject to post-closing adjustments.
- 5The acquisition was funded by a combination of MPC's cash on hand and debt financing.
- 6This transaction represents a significant expansion of Speedway's retail and midstream asset base.