8-KMaterial AgreementsExhibits & Filings

MPLX LP 8-K Report, Material Agreement (Sep 23, 2015)

Filed September 23, 2015For Securities:MPLXMPLXP

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.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a material definitive agreement, specifically an amendment to a Storage Services Agreement between MPLX's subsidiary, Marathon Pipe Line LLC, and a related party, Marathon Petroleum Company LP (MPC LP). The amendment details a significant increase in crude oil storage capacity at the Patoka, Illinois tank farm.

The amendment significantly increases the available shell capacity at MPLX's Patoka, Illinois tank farm by approximately 1.24 million barrels (from 1,386,000 to 2,626,000 barrels), due to the addition of four new tanks.

The increased storage capacity benefits Marathon Petroleum Company LP (MPC LP), a related party. MPC LP pays a monthly fee to MPLX's subsidiary for the use of the available shell capacity, regardless of whether they fully utilize it. This provides a stable revenue stream for MPLX from the expanded facility.

MPLX LP indirectly owns a majority stake in Marathon Pipe Line LLC (MPL), which entered into the agreement. MPC LP is an indirect wholly-owned subsidiary of Marathon Petroleum Corporation (MPC). Furthermore, MPC indirectly holds a 70.9% limited partner interest in MPLX, making these transactions related-party in nature.