What were the key assets acquired by MPLX LP in this transaction?

MPLX LP acquired membership interests in Hardin Street Transportation LLC (crude oil and refined product pipelines/storage), Woodhaven Cavern LLC (butane and propane storage), and MPLX Terminals LLC (light product terminals).

How does this transaction affect MPLX's relationship with Marathon Petroleum Corporation (MPC)?

This transaction consolidates more logistics and midstream assets under MPLX. Following the transaction, MPC indirectly holds approximately 26.9% of MPLX's common units, along with the incentive distribution rights and a 2% general partner interest, indicating a significant strategic alignment and continued influence.

Are there any ongoing service agreements related to the acquired assets?

Yes, MPLX has entered into or amended several service agreements. These include transportation and terminal services agreements with Marathon Petroleum Company LP (MPC LP) and employee services agreements with Marathon Petroleum Logistics Services LLC (MPLS) to ensure the continued operation and revenue generation from the acquired infrastructure.

MPLX 8-K: Acquisitions & Dispositions, Material Agreements & More

Q: What was the total consideration for this acquisition?

The total consideration for the transaction was approximately $1.511 billion in cash and $504 million in equity, totaling approximately $2.015 billion.

Summary

MPLX LP (MPLX) announced the closing of a significant transaction on March 1, 2017, involving the contribution of membership interests in Hardin Street Transportation LLC, Woodhaven Cavern LLC, and MPLX Terminals LLC from MPC Investment LLC to MPLX LP. This transaction, valued at approximately $1.511 billion in cash and $504 million in equity, substantially expands MPLX's logistics and terminal infrastructure, particularly in crude oil, refined products, and natural gas liquids storage. Key to investors is the strategic growth and expanded asset base, which is expected to enhance MPLX's fee-based revenue streams and market position. The transaction also includes updated and reaffirmed service agreements with Marathon Petroleum Company LP (MPC LP) and Marathon Petroleum Logistics Services LLC (MPLS), ensuring continued operational synergies and revenue generation from these newly acquired assets. The approval process involved MPLX's conflicts committee and board of directors, with independent advisors engaged, suggesting a robust evaluation of the deal's terms and benefits to unitholders.

Key Highlights

1MPLX LP acquired Hardin Street Transportation, Woodhaven Cavern, and MPLX Terminals for approximately $2.015 billion in cash and equity.
2The acquired assets include crude oil and refined product pipelines, light product terminals, and butane/propane storage caverns.
3The transaction is expected to enhance MPLX's fee-based income and market position through expanded infrastructure.
4New and amended service agreements with affiliates (MPC LP and MPLS) are in place to ensure continued operations and revenue generation from the acquired assets.
5Marathon Petroleum Corporation (MPC) indirectly increased its ownership stake in MPLX to approximately 26.9% of common units post-transaction.
6The transaction was approved by MPLX's conflicts committee and board of directors, with independent advisors involved.
7The issuance of MPLX common units and general partner units to affiliates was conducted under Section 4(a)(2) of the Securities Act of 1933, exempting it from registration.

MPLX LP 8-K Report, Material Agreement (Mar 2, 2017)

Summary

Key Highlights

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