Oct. 31--Marathon Petroleum Corp. announced plans Thursday to spin off of its national chain of Speedway convenience stores.
The separation, advocated by some investors, was paired with Marathon Chairman and CEO Gary R. Heminger's announcement that he would retire next year after 45 years with the company.
Heminger has led the Marathon Petroleum since it split from Marathon Oil in 2011. He also will retire as chairman and CEO of MPLX, Marathon Petroleum's midstream business.
Findlay-based Marathon Petroleum operates 16 refineries that can process a combined 3 million barrels of crude oil a day. One of those refineries is in Canton.
Heminger said the plan to make Speedway an independent, publicly traded company followed a strategic review Marathon began in January.
"The board and our management are fully committed to pursuing the path that maximizes shareholder value, and we believe the separation will create two strong, industry-leading companies well positioned for long-term growth and success," Heminger said in a conference call with investors.
Speedway has approximately 4,000 stores in 36 states and over 6 million active members in its loyalty program.
Heminger estimated the value of the new Speedway would be worth $15 billion to $18 billion, compared with $10 billion currently.
Marathon plans to complete the spinoff by the end of next year. The new company will be based in Enon, Ohio.
The spinoff comes after Elliott Management Corporation, which owns a 2.5 percent interest in Marathon, pushed for breaking the company into three independent companies: One for the retail stores, one for the midstream operation and one for refining.
In addition to the Speedway spinoff, Marathon announced it would form a committee to study its MPLX midstream operations, which include pipelines and processing plants in the Utica Shale.
Marathon reported a profit of $1.1 billion during the third quarter, or $1.66 per diluted share.
Reach Shane at 330-580-8338 or shane.hoover@cantonrep.com
On Twitter: @shooverREP
Source: INACTIVE-Tribune Regional
(October 31, 2019 - 12:54 PM EDT)
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