Summary
Marathon Petroleum Corporation (MPC) filed an 8-K on November 2, 2020, detailing its financial results for the quarter ended September 30, 2020, and providing crucial updates on its strategic divestitures and segment reporting. The most significant development is the planned sale of the Speedway convenience store business to 7-Eleven for $21 billion, which is expected to close in the first quarter of 2021. This transaction necessitates reclassifying Speedway as discontinued operations, impacting the company's financial reporting for the current quarter and future periods. In response to the Speedway divestiture, MPC has also restructured its reportable segments. The Retail segment, which previously included both Speedway and the direct dealer business, has been eliminated. The direct dealer business will now be reported under the Refining & Marketing segment. Investors should note that prior period financial information has been recast to reflect these changes, though this recast data is preliminary and has not been audited or reviewed by PricewaterhouseCoopers LLP. MPC also announced a new format for providing market data on its investor website, reflecting these reporting changes and new margin indicators.
Key Highlights
- 1Marathon Petroleum Corporation (MPC) is selling its Speedway convenience store business to 7-Eleven for $21 billion, with an expected closing in Q1 2021.
- 2The Speedway business will be presented as 'discontinued operations' starting from the quarter ended September 30, 2020, due to the pending sale.
- 3MPC has restructured its reportable segments, eliminating the Retail segment and integrating the direct dealer business into the Refining & Marketing segment.
- 4Prior period financial information has been recast to reflect the discontinued operations presentation and new segment structure.
- 5The recast financial data for segment reporting is preliminary and has not been audited or reviewed by PricewaterhouseCoopers LLP.
- 6MPC will adopt a new format for providing financial and statistical market data on its investor website, reflecting these reporting changes.
- 7The company plans to provide monthly updates to this market data, with potential for additional intra-month updates.