Marathon Petroleum Corporation plans to merge its midstream businesses, MPLX and Andeavor Logistics, in a definitive merger agreement whereby MPLX will acquire Andeavor Logistics for $9 billion.
The transaction, which is expected to close in the second half of 2019, will enhance commercial opportunities building on MPLX’s strong presence in the Marcellus and deepening the presence in the Permian.
“This transaction simplifies our MLPs into a single listed entity and creates a leading, large-scale, diversified midstream company anchored by fee-based cash flows,” said Gary R. Heminger, chairman and chief executive officer.
“This transaction is projected to be immediately accretive to MPLX unitholders on distributable cash flow, demonstrating MPC’s commitment to positioning its midstream business for long-term success. The combined entity will have an expanded geographic footprint which we believe enhances our long-term growth opportunities and the sustainable cash flow profile of the business. We are confident about the midstream growth and value-creation opportunities that exist across this combined platform in the best basins in the U.S.”
For more information visit www.marathonpetroleum.com