MPLX LP : MPLX LP Announces Acquisition of Interest in MPLX Pipe Line Holdings
FINDLAY, Ohio, April 30, 2013 - MPLX LP (NYSE: MPLX) today announced that it
has agreed to acquire an additional 5 percent interest in MPLX Pipe Line
Holdings LP (Pipe Line Holdings) from a subsidiary of Marathon Petroleum
Corporation (NYSE: MPC) for $100 million on May 1, 2013. This transaction
represents MPLX's first acquisition following its initial public offering
(IPO) in October 2012. This acquisition will increase MPLX's interest in Pipe
Line Holdings to 56 percent from the 51 percent interest it held since the
IPO. Pipe Line Holdings owns a 100 percent interest in Marathon Pipe Line LLC
(MPL) and Ohio River Pipe Line LLC (ORPL). MPL and ORPL own one of the largest
networks of common carrier crude oil and product pipelines in the U.S. based
on total volume delivered; a barge dock on the Mississippi River; and crude
oil and product storage facilities.
"MPLX has many avenues to achieve an attractive distribution growth rate over
an extended period of time," said Gary R. Heminger, chief executive officer.
"We believe the acquisition of this additional interest in Pipe Line Holdings,
along with increasing volumes and tariff revenues, will position MPLX to
achieve its distribution growth rate objectives."
The acquisition price represents an approximate 9.5 times multiple of the
assets' forecasted next twelve months EBITDA. The transaction is expected to
be immediately accretive to distributable cash flow. MPLX intends to fund the
acquisition with cash on hand.
The terms of the acquisition were approved by the board's Conflicts Committee,
which is comprised entirely of independent directors. This committee was
advised by Evercore Partners as to financial matters and Akin Gump Strauss
Hauer & Feld LLP as to legal matters.
About MPLX LP
MPLX is a fee-based, growth-oriented master limited partnership formed in 2012
by Marathon Petroleum Corporation to own, operate, develop and acquire
pipelines and other midstream assets related to the transportation and storage
of crude oil, refined products and other hydrocarbon-based products.
Headquartered in Findlay, Ohio, MPLX's assets consist of a majority equity
interest in a network of common carrier crude oil and products pipeline assets
located in the Midwest and Gulf Coast regions of the United States and a 100
percent interest in a butane storage cavern located in West Virginia.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Angelia Graves (419) 421-2703
This press release contains forward-looking statements within the meaning of
the federal securities laws. These forward-looking statements relate to, among
other things, MPLX's expectations, estimates and projections concerning MPLX
business and operations. You can identify forward-looking statements by words
such as "anticipate," "believe," "estimate," "expect," "forecast," "project,"
"could," "may," "should," "would," "will" or other similar expressions that
convey the uncertainty of future events or outcomes. Such forward-looking
statements are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond MPLX's control and
are difficult to predict. Factors that could cause actual results to differ
materially from those in the forward-looking statements include: the adequacy
of our capital resources and liquidity, including, but not limited to,
availability of sufficient cash flow to pay distributions and execute our
business plan; completion of pipeline capacity by our competitors; disruptions
due to equipment interruption or failure, including electrical shortages and
power grid failures; the suspension, reduction or termination of MPC's
obligations under our commercial agreements; our ability to successfully
implement our growth strategy, whether through organic growth or acquisitions;
state and federal environmental, economic, health and safety, energy and other
policies and regulations; other risk factors inherent to our industry; and the
factors set forth under the heading "Risk Factors" in MPLX's Annual Report on
Form 10-K for the year ended December 31, 2012 filed with the Securities and
Exchange Commission (SEC). Unpredictable or unknown factors not discussed here
or in MPLX's Form 10-K could also have material adverse effects on
forward-looking statements. Copies of MPLX's Form 10-K are available on the
SEC website, MPLX's website at http://www.ir.mplx.com or by contacting MPLX's
Investor Relations Office.
MPLX LP Acquisition
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: MPLX LP via Thomson Reuters ONE
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