Please use a modern browser. This website is not designed for versions of Internet Explorer below IE10
masthead
masthead
masthead
masthead
menu
Terminal News

Marathon drops down storage tank and pipeline assets

Marathon drops down storage tank and pipeline assets
Marathon Petroleum has contributed various terminal, pipeline and storage assets to MPLX for more than $2 billion.

The assets include 62 light-product terminals with 24 million barrels of storage capacity, 11 pipeline systems consisting of 604 miles of pipeline, 73 tanks with 7.8 million barrels of storage capacity, a crude oil truck unloading facility at Marathon's refinery in Ohio and eight natural gas liquids storage caverns in Michigan.

The total consideration equates to an eight times multiple of the $250 million of earnings before interest, taxes, depreciation and amortisation these business are expected to generate in the next 12 months.

Marathon Petroleum chairman, president and CEO Gary Heminger says: 'This drop-down of additional high-quality assets to MPLX represents the first of several drops expected to occur in 2017, and is an important part of our plan to unlock the value of our midstream business for investors.'



Share: