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.
Frequently Asked Questions
The primary purpose is for MW Logistics Services LLC to provide operational and management services to MPLX LP, specifically to support the assets owned or operated by MarkWest Energy Partners, L.P. (an indirect subsidiary of MPLX), and other business support services.
MW Logistics Services LLC is an indirect wholly-owned subsidiary of MPC. MPLX GP LLC, the general partner that manages MPLX's operations, is also an indirect wholly-owned subsidiary of MPC. This indicates a close relationship and operational integration between MPLX, its general partner, and MPC.
MPLX LP will pay MW Logistics Services LLC a monthly fee. This fee is designed to cover the total employee-based salary, wage, and benefits costs, along with other expenses incurred by MW Logistics in providing the services during that month.
The agreement has an initial term of five years, effective from December 28, 2015, and is set to expire on December 28, 2020. It also includes provisions for automatic renewal for two additional terms, each of up to five years, unless terminated earlier.