Summary
This 8-K filing by MPLX LP (MPLX) primarily details two material definitive agreements entered into by its subsidiaries with Marathon Petroleum Company LP (MPC LP). The most significant is the MPL Transportation Services Agreement, where MPLX subsidiary MPL provides essential pipeline transportation services for crude oil and refined products to MPC LP. This agreement has a long-term initial duration of nine years, extending to December 31, 2026, with automatic renewal options, ensuring a stable revenue stream for MPLX from its parent company's operations. Additionally, the filing announces a minor amendment to an existing agreement (HST Transportation Services Agreement) to remove certain pipeline systems, which is a less impactful operational adjustment. The report also discloses an executive appointment, with C. Kristopher Hagedorn joining as the Chief Accounting Officer, effective December 4, 2017. These events, particularly the long-term transportation agreement, highlight the ongoing strategic relationship between MPLX and its parent, MPC, which underpins a significant portion of MPLX's business.
Key Highlights
- 1MPLX subsidiary MPL entered into a long-term Transportation Services Agreement with Marathon Petroleum Company LP (MPC LP) on November 1, 2017, effective through December 31, 2026.
- 2The agreement covers pipeline transportation of crude oil and refined products, along with related services, for MPC LP.
- 3MPC LP is committed to quarterly minimum throughput volumes, with deficiency payments applicable if these volumes are not met.
- 4The agreement includes automatic renewal terms of four years each, indicating a stable, long-term revenue source for MPLX.
- 5A Fourth Amendment to the HST Transportation Services Agreement was executed to remove certain pipeline systems previously under contract with MPC LP.
- 6C. Kristopher Hagedorn has been appointed as MPLX's Chief Accounting Officer, effective December 4, 2017, replacing Paula L. Rosson.
- 7Marathon Petroleum Corporation (MPC) holds approximately 29% of MPLX's common units and indirectly owns all of the Partnership's incentive distribution rights.