Post Tagged with: "Marathon"

Marathon Oil Profit Jumps 50% on Higher U.S. Shale Production

Marathon Oil Profit Jumps 50% on Higher U.S. Shale Production

From Reuters Marathon Oil Corp (MRO.N) reported a 50% jump in quarterly adjusted profit on Wednesday, as higher U.S. shale output countered lower realized crude prices and production costs fell. The company, like many other U.S. oil producers, is extracting more crude from its wells in the prolific shale basins against the backdrop of pressure to cut back on spending to boost shareholder returns. Marathon’s shares were up about 5% at $12.65 in extended trading. U.S. production at the company jumped 11.4% to 332,000 barrels of oil equivalent per day (boepd) in the second quarter, while total production rose 3.8% to 435,000 boepd. Marathon, which raised its share buyback program to $1.5 billion, said realized per barrel of crude oil and condensate price 10.4% to $59.18 per barrel in the United States in the quarter. Oil prices have come under pressure from a surge in U.S. production and fears of[Read More…]

Alaska in Talks to Purchase ConocoPhillips’ Nikiski Kenai LNG Facility

Marathon Flips LNG Export Model Around

From the Alaska Journal of Commerce After buying a mothballed liquefied natural gas export plant in Nikiski, Marathon Petroleum is planning to flip it around to become an import terminal. Marathon Petroleum, the newly-merged oil and gas giant formerly known as Tesoro and then Andeavor, owns the former ConocoPhillips LNG terminal on Cook Inlet and the refinery directly across the Kenai Spur Highway from it. Marathon sub Trans-Foreland Pipeline filed with FERC to operate as LNG import plant In March, Marathon subsidiary Trans-Foreland Pipeline Co. filed an application with the Federal Energy Regulatory Commission to operate an import terminal at the LNG plant. Proposed Alaska LNG export plant is only a half mile away The plant is about a half-mile from the proposed site of the liquefaction plant for the Alaska LNG Project, a megaproject proposed to bring stranded natural gas from the North Slope to Nikiski for export to[Read More…]

May 23, 2019 - 7:53 am Closing Bell Story, Energy News, LNG
Marathon Petroleum Grows End User Presence with 900 MBO Terminal and Retail Acquisition

Marathon Petroleum Grows End User Presence with 900 MBO Terminal and Retail Acquisition

Marathon Petroleum Corp. to acquire a terminal and retail locations in Buffalo, New York

April 15, 2019 - 7:00 am Closing Bell Story, Downstream, Press Releases
Marathon, Motiva and Phillips 66 Winners in 4.3 Million Barrel SPR Crude Oil Sale

Marathon, Motiva and Phillips 66 Winners in 4.3 Million Barrel SPR Crude Oil Sale

Winning offers in the ~$65-$67 range The U.S. Department of Energy’s (DOE) Office of Fossil Energy announced on March 22 that it has awarded contracts to winning bidders in the recent Strategic Petroleum Reserve (SPR) crude oil sale. DOE offered 6 MMBO from strategic reserves for competitive sale On February 28, 2019, DOE’s Office of Fossil Energy issued a Notice of Sale for a price-competitive sale of six million barrels of SPR crude oil.  The DOE said 10 companies responded to the Notice of Sale, submitting 72 bids for evaluation. DOE has awarded contracts to the following three companies: Marathon Petroleum Corporation:          1.62 MMBO, $108,677,700 Motiva Enterprise, LLC:                             0.70 MMBO, $46,099,7… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Marathon Petroleum Earns $3.43 Billion in 2017, $5.5 Billion MPLX Offering

Marathon Petroleum Earns $3.43 Billion in 2017, $5.5 Billion MPLX Offering

Marathon Petroleum Corp. (ticker: MPC) earned $2.02 billion, or $4.09 per diluted share, in Q4 2017. This is significantly more than in Q4 2016, where the company had earnings of $227 million, or $0.43 per diluted share. FY 2017 earnings saw a significant increase as well – $3.43 billion, or $6.70 per diluted share. Compared to FY 2016’s $1.17 billion, or $2.21 per diluted share, 2017 nearly tripled last year’s earnings. U.S. tax cut Almost all of the oil majors have benefited from the recent Tax Cuts and Jobs Act so far – MPC is no exception. Earnings for the fourth quarter and full year include a tax benefit of approximately $1.5 billion (or $3.04 and $2.93 per diluted share for the fourth quarter and full year, respectively). MPC, MPLX CapEx MPC’s 2018 capital investment plan, excluding MPLX, totals approximately $1.6 billion. The capital plan for the refining and marketing segment is $950 million. Of that amount, approximately $400[Read More…]

It Just Makes Sense, Gary: John M. Fox Responds to Marathon’s $10 Billion Valuation

It Just Makes Sense, Gary: John M. Fox Responds to Marathon’s $10 Billion Valuation

On Dec. 15, 2017 Marathon Petroleum Corp. (ticker: MPC) and MPLX LP (ticker: MPLX) announced a definitive agreement for MPC to exchange its general partner (GP) economic interests in MPLX, which include incentive distribution rights (IDRs), for 275 million newly issued MPLX common (LP) units valued at approximately $10.1 billion based on the volume-weighted average price of MPLX over the past 10 days. The full MPC/MPLX release can be found here. On Dec. 18, John M. Fox, founder and former CEO of MarkWest Energy Partners released the first open letter to the board of directors of Marathon Petroleum Corporation (MPC) responding to management’s announcement “to demand over $10 billion for its GP economic interest in MPLX.” Then, on Dec. 19, John M. Fox released a second open letter to the board of directors of MPLX. The second letter can be found below, after the first letter. The full text of the letter[Read More…]

December 19, 2017 - 5:56 pm Closing Bell Story, Finance, Oil and Gas 360 Articles
North Dakota Oil Production – Same Players, Different Pecking Order

North Dakota Oil Production – Same Players, Different Pecking Order

Continental, Whiting, others shift positions from 2 years ago The North Dakota Industrial Commission released its September 2017 oil production data this week, reporting per-well production across the state. The largest oil producers in the Bakken/Three Forks plays in North Dakota are shown in the top chart. The NDIC data from September 2015, however, delivers a shuffled order of companies when it comes to the state’s largest oil producers. The large producer group as a whole is made up of the same companies, but after the 2014-2016 oil price crash caused companies to rein in expansive drilling programs, production fell off for the state’s largest producers, as is reflected in the Sept. 2017 chart. In Sept. 2015, Whiting Petroleum (ticker: WLL), Continental Resources (ticker: CLR) and Hess (ticker: HES) all produced at or above the 3.5 million barrel mark for the month. Only Continental Resources was close to 3.5 million barrels[Read More…]

Canadian Natural Resources Raises $527 Million with Cold Lake Pipeline Sale

Canadian Natural Resources Pays Shell, Marathon $8.24 Billion

 CNQ finalizes acquisition of 70% of Athabasca Oil Sands Project Canadian Natural Resources Limited (ticker: CNQ) announced today that it has completed the acquisition of 70% of the Athabasca Oil Sands Project. The remaining 30% of the working interest is broken down between Chevron Canada Limited—which retains 20% and Shell Canada Limited—which retains 10%, according to a press release on May 31st, 2017. Shell was awarded 97.56 million common shares of Canadian Natural, and a cash payment of $8.24 billion was made to Shell and Marathon Oil Corporation. A remaining payment of $375 million dollars will also be made to Marathon Oil by Q1 of 2018. Canadian Natural will begin full operation of the Athabasca Oil Sands as of June 1st, 2017 and intends to produce between 173,000-191,000 BOPD. Additionally, the Peace River properties, of which Canadian Natural now holds a 100% interest, are expected to produce between 12,000-14,000 BOPD.[Read More…]

Fox to Marathon: Don’t Put MPLX in the Penalty Box

Fox to Marathon: Don’t Put MPLX in the Penalty Box

MarkWest Co-Founder John Fox confirms stance that Marathon Petroleum should eliminate IDRs before refinery dropdowns John M. Fox, co-founder and former chairman and CEO of MarkWest Hydrocarbon, which merged with Marathon Petroleum’s MPLX LP (ticker: MPLX) in December 2015, issued a press release today reaffirming his stance against Marathon Petroleum Company’s (ticker: MPC) proposed January 3, 2017 plan. Fox said that his own proposal to eliminate Incentive Distribution Rights (IDRs) would provide immediate uplift in value for MPC shareholders. Fox said that his former company, MarkWest, generated a 143.3% total return and grew from a $1.2 billion market cap to an $8.6 billion market cap for the period of September 5, 2007, when the IDRs were eliminated at MarkWest, to December 4, 2015, when MarkWest merged with MPLX. Fox is beneficial owner of 1,542,072 MPLX common units, and 20,900 shares of Marathon Petroleum Company, according to the press release. “The engagement[Read More…]

January 30, 2017 - 1:10 pm Closing Bell Story, MLP News, MLPs, Oil and Gas 360 Articles, People
MPLX LP Reports First Quarter 2016 Financial Results

MPLX LP Reports First Quarter 2016 Financial Results

Reported first-quarter adjusted EBITDA of $302 million; distributable cash flow of $236 million Declared distribution of $0.505 per common unit, a 23 percent increase over first-quarter 2015 Announced a $1 billion private placement of convertible preferred securities with third-party investors Completed acquisition of Marathon Petroleum Corporation`s inland marine business, with strong sponsor support for the transaction Reaffirmed guidance of 12 to 15 percent distribution growth rate over the prior year; expect double-digit distribution growth rate in 2017 FINDLAY, Ohio, April 28, 2016 – MPLX LP (MPLX) today reported first-quarter 2016 results, which include the operations of MarkWest Energy Partners, L.P. for the first full quarter following its merger with MPLX. First-quarter 2016 earnings include a non-cash charge of $129 million to impair a small portion of the goodwill recorded in connection with the acquisition of MarkWest. Three Months Ended March 31 (In millions, except per unit and ratio data) 2016 2015[Read More…]

MPLX LP Pulls Back the Reins, Cuts Dividend Growth in Half

MPLX LP Pulls Back the Reins, Cuts Dividend Growth in Half

Just 63 days after the close of a transformative purchase of MarkWest Energy Partners, Marathon Petroleum, the General Partner of MPLX LP (ticker: MPLX), is downwardly adjusting its dividend growth plan for the MLP – plans that it made public during the company’s Analyst Day presentation on December 3, 2015. MPLX, the limited partner of Marathon Oil Corporation (ticker: MPC), closed the acquisition of MarkWest Energy Partners on December 2, 2015, but not without its fair share of hurdles. The valuation of the deal received pushback from MarkWest shareholders, including co-founder John Fox, who called the valuation “pennies on the dollar” and strongly urged fellow MWE unitholders to nix the deal. A key selling point to MPLX’s offer was providing distribution growth guidance through 2019. In the company’s Q3’15 earnings release, Gary Heminger, President and Chief Executive Officer of Marathon Oil, reiterated previous guidance of a 25% CAGR distribution growth[Read More…]

MarkWest Energy: Anatomy of a Bad Deal

MarkWest Energy: Anatomy of a Bad Deal

MarkWest Energy:  Sold.  “For Pennies on the Dollar.”  Unitholders Say “No” on Management Bonus Payments MarkWest Energy Partners (ticker: MWE) distributed a news release announcing that unitholders approved the merger with MPLX (ticker: MPLX), an MLP created by Marathon Petroleum (ticker: MPC).  From the MarkWest news release:  “Based on the voting results, approximately 80 percent of the units voted at the special meeting were in favor of the merger agreement.” That math is misleading… To clarify:  195.2 million units were in the market to vote on the merger agreement.  Reading the MWE Form 8-K, 122.6 million voted “Yes”.  That calculates to only 57.6% of total units voted “Yes.”  This is not an “overwhelming majority” as Marathon Petroleum’s Gary Heminger was quoted to say in the news release. Of the 122.6 million “Yes” votes, Tortoise Capital voted “Yes” with its 12.6 million units and Kayne Anderson Capital voted “Yes” with its[Read More…]