Marathon Petroleum combines midstream operations for $9B

May 08, 2019 - 4:27 am

FINDLAY, Ohio (AP) — Marathon Petroleum Corp. is merging two of its oil and gas pipeline, transportation and storage operations for $9 billion.

MPLX and Andeavor Logistics are both master limited partnerships and the company raised the possibility that it might combine the two late last year.

Andeavor unitholders will receive 1.135 MPLX common units for each Andeavor common unit held. Marathon will receive 1.0328 MPLX common units for each Andeavor common unit held.

The enterprise value of the deal is listed at $14 billion.

Andeavor, formerly known as Tesoro, has refineries in California, Minnesota, New Mexico, North Dakota, Texas, Utah, Washington and Alaska.

The deal is targeted to close in the second half of the year.

Shares of Andeavor Logistics LP rose 2.5 percent in premarket trading Wednesday. Marathon's stock edged up slightly.