Summary
This 8-K filing by MPLX LP, dated January 4, 2016, announces a material definitive agreement entered into on December 28, 2015, with MW Logistics Services LLC. MW Logistics, an indirect wholly-owned subsidiary of Marathon Petroleum Corporation (MPC), will provide operational and management services to MPLX, primarily supporting the assets of MarkWest Energy Partners, L.P. This agreement formalizes the provision of employee-related costs and other support services, with a monthly fee structure based on actual expenses incurred by MW Logistics. The contract is set for an initial five-year term, with automatic renewal options for up to two additional five-year periods, demonstrating a long-term operational alignment.
Key Highlights
- 1MPLX LP entered into an Employee Services Agreement with MW Logistics Services LLC on December 28, 2015.
- 2MW Logistics is an indirect wholly-owned subsidiary of Marathon Petroleum Corporation (MPC).
- 3The agreement covers operational and management services for MPLX assets, including those of MarkWest Energy Partners, L.P.
- 4MPLX will pay MW Logistics a monthly fee based on employee salary, wage, and benefit costs, plus other expenses.
- 5The agreement has an initial term of five years, expiring December 28, 2020.
- 6The contract includes provisions for automatic renewal for up to two additional five-year terms.
- 7MPC holds a significant ownership stake in MPLX, with 19.2% of common units and a 2% general partner interest.