Summary
This 8-K filing by MPLX LP reports on an amendment to a Storage Services Agreement between its subsidiary, Marathon Pipe Line LLC (MPL), and Marathon Petroleum Company LP (MPC LP). The key update is the significant expansion of storage capacity at MPL's Patoka, Illinois tank farm, increasing available shell capacity from approximately 1.39 million barrels to 2.63 million barrels. This expansion is driven by the addition of four new tanks. This amendment is material as it increases the storage capacity available to MPC LP, a related party. Investors should note the increased capacity for crude oil storage, which could support greater throughput and potentially future revenue generation for MPLX. The agreement structure, where MPC LP pays for capacity regardless of utilization, ensures a steady revenue stream for MPLX from this facility.
Key Highlights
- 1MPLX subsidiary (Marathon Pipe Line LLC) amended its Storage Services Agreement with related party Marathon Petroleum Company LP (MPC LP).
- 2The amendment increases the available shell capacity at the Patoka, Illinois tank farm from 1,386,000 barrels to 2,626,000 barrels.
- 3The capacity expansion is due to the addition of four new tanks at the Patoka facility.
- 4MPC LP pays a monthly fee for the use of available shell capacity, regardless of actual utilization.
- 5MPLX indirectly owns 99.5% of Marathon Pipe Line LLC, and MPC LP is an indirect subsidiary of Marathon Petroleum Corporation (MPC).
- 6MPC holds a significant indirect limited partner interest (70.9%) in MPLX, highlighting the related-party nature of the transaction.