Marathon Petroleum

Marathon Petroleum Corporation

Type	Public company
Traded as	NYSE: MPC S&P 500 Component
Industry	Oil and gas
Predecessor	Marathon Oil (1984) Ashland Inc. USX Corporation Marathon Oil
Founded	Findlay, Ohio, (September 1, 2005 (2005-09-01))
Headquarters	Findlay, Ohio
Number of locations	5,500 independent Marathon Brand stations 2,770 Speedway locations
Area served	Worldwide
Key people	Gary R. Heminger (CEO)
Products	Petroleum, Gasoline
Production output	1,711,000 barrels per day of refined crude oil (2015)[1]
Services	Pipeline transport, refining, marketing
Revenue	US$72.258 billion (2015)[1]
Operating income	US$4.692 billion (2015)[1]
Net income	US$2.868 billion (2015)[1]
Total assets	US$43.115 billion (2015)[1]
Total equity	US$13.237 billion (2015)[1]
Number of employees	45,440, including 33,820 employees of Speedway LLC (2015)[1]
Divisions	Speedway LLC Catlettsburg Refining LLC
Website	www.marathonpetroleum.com

Marathon Petroleum Corporation is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. It was elected the best employer of United States in 2016 by Forbes. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011.

Marathon Gas Station in Long Grove, IL

Operations

The company owns:

• 7 refineries^[2] with a total crude oil throughput of 1,794,000 barrels (285,223 m^3) per day:

• The Speedway LLC retail chain, which includes 2,770 retail outlets, the second largest chain of company-owned and operated retail gasoline and convenience stores in the United States.
• Leasehold or ownership interests in approximately 8,400 miles (13,500 km) of petroleum pipelines and 5,000 miles (8,050 km) of natural gas and natural gas liquids pipelines as well as related transportation and distribution assets such as railcars, barges, and processing terminals.
• A 20.4% interest, including a controlling 2% general partner interest, in MPLX, a public master limited partnership that owns pipelines and other midstream assets related to the transportation and storage of crude oil. NYSE: MPLX ^[1]

History

Marathon Petroleum Corporation was formed on November 9, 2005 as a subsidiary of Marathon Oil.

Former parent company

Marathon Oil, the company's former parent, dates back to 1887 when several small oil companies in Ohio banded together to form The Ohio Oil Company.^[3] From 1982 until 2002, Marathon Oil was a subsidiary of U.S. Steel.

Predecessor company

The predecessor company of Marathon Petroleum Corporation, Marathon Petroleum Company LLC, formerly known as Marathon Ashland Petroleum LLC, was formed by the merger of the refining operations of Marathon Oil and Ashland Inc. in 1998. In 2005, the company became a 100% owned subsidiary of Marathon Oil. ^[4]

In 2006, Marathon began using STP-branded additives in its gasoline.^[5]

In 2009, the company completed a $3.9 billion expansion of its refinery in Garyville, Louisiana that increased the plant’s capacity by 180,000 barrels per day.^[4]

In 2010, the company sold its 74,000 barrel-per-day refinery in St. Paul Park, Minnesota along with associated terminals, pipelines, and inventory as well as 166 SuperAmerica convenience stores to Northern Tier Energy for $900 million.^[6]

Post-corporate spin-off from Marathon Oil

On June 30, 2011, Marathon Oil distributed all of its shares in the company to its shareholders via a corporate spin-off.^[1]

In June 2012, Wheeling, West Virginia-based Tri-State Petroleum signed a contract to switch 50 stations in Ohio, Pennsylvania, and West Virginia to the Marathon brand. Most of Tri-State's stations before the deal were ExxonMobil-branded stations, the majority Exxon as well as a few scattered Mobil stations in the immediate Wheeling area. Included in the deal were 18 Exxon stations in the Pittsburgh metropolitan area, significantly boosting Marathon's presence in the Pittsburgh market, where former parent company U.S. Steel is based. (Exxon would offset its Pittsburgh losses by taking over the retail contracts of several Shell stations in the area, leaving Shell with a significantly reduced presence, while the Mobil brand was withdrawn from the Northern Panhandle of West Virginia altogether.) Before the deal, Marathon had a much smaller presence in Western Pennsylvania, while having a somewhat larger presence in West Virginia and an almost ubiquitous presence in Southern Ohio.^[7]

In 2013, Marathon purchased numerous assets from BP including a 451,000 barrel per day refinery in Texas City, Texas, four light product distribution terminals, and retail marketing contracts for 1,200 retail stations throughout the southeastern United States.^[8]

In 2014, Speedway LLC, a subsidiary of the company, purchased the retail operations of Hess Corporation for $2.82 billion.^[9]

Refinery fire

In 2016, a fire at the Galveston Bay refinery in Texas City, Texas injured three contract workers, resulting in a lawsuit seeking $1 million in damages.^[10] Multiple lawsuits were filed resulting in Marathon paying $86 million to settle. ^[11]

References

External links

• Marathon Petroleum Homepage

• • Business data for Marathon Petroleum: Google Finance
  • Yahoo! Finance
  • Reuters
  • SEC filings