Marathon Petroleum Corp. Overview

Marathon Petroleum Corp.

Introduction

Marathon Petroleum Corp. (MPC) is a downstream energy company that refines, markets and transports petroleum products. The corporation owns and runs refineries in the US Midwest and Gulf Coast regions. Additionally, it has common carrier pipeline networks that carry refined goods and crude oil to the company’s terminals, refineries, and other pipeline networks. Marathon Petroleum Corp. offers a variety of products through a number of convenience stores, including gasoline. Through a distribution network, an integrated system delivers crude oil, feedstock, and petroleum-related goods to the US Midwest, East Coast, Southeast, and Gulf Coast areas. Additionally, the business owns stakes in gas processing plants, NGL fractionation facilities, and a condensate stabilization facility. MPC’s headquarters are in the US city of Findlay, Ohio.

History

In 1998, the refining businesses of Marathon Oil and Ashland Inc. merged to form Marathon Petroleum Company LLC, the forerunner of Marathon Petroleum Corporation. Previously known as Marathon Ashland Petroleum LLC. As Ashland had bought a number of lesser Standard Oil spinoffs while Marathon was directly owned by Standard Oil, the merger brought together multiple descendants of the Standard Oil trust. It also brought the Speedway and SuperAmerica convenience store brands from Marathon and Ashland together, which later combined to form “Speedway SuperAmerica.”

Marathon Ashland adopted the marketing tagline “An American Company Serving America,” and the term was added on Marathon gas pumps as longtime rivals Standard Oil of Ohio and Amoco were acquired by the British company BP. It adopted its current catchphrase, “Fueling the American Spirit,” in 2006.

After Ashland sold off its downstream operations and left the retail industry in 2005, the company became a wholly owned subsidiary of Marathon Oil. Marathon started putting STP-branded additives in its gasoline in 2006.

The refinery’s Garyville, Louisiana, expansion, which cost $3.9 billion to construct, increased the plant’s capacity by 180,000 barrels per day.

For $900 million, the business sold Northern Tier Energy its 74,000 barrels per day refinery in St. Paul Park, Minnesota, as well as 166 SuperAmerica convenience stores, related terminals, pipelines, and inventories.

Through a corporate spin-off, Marathon Oil gave all of its shares in the company to its shareholders on June 30, 2011.

Tri-State Petroleum, based in Wheeling, West Virginia, signed a contract in June 2012 to switch 50 stations in Ohio, Pennsylvania, and West Virginia to the Marathon brand. Prior to the deal, the majority of Tri-State’s stations were ExxonMobil-branded, with a few scattered Mobil stations in the Wheeling vicinity. The deal included 18 Exxon stations in the Pittsburgh metropolitan area, significantly expanding Marathon’s presence in the Pittsburgh market, where U.S. Steel, Marathon’s former parent company, is headquartered. Exxon would make up for its losses in Pittsburgh by taking over the retail contracts of several Shell stations in the area. This would leave Shell with a much smaller presence, and the Mobil brand would be taken out of the Northern Panhandle of West Virginia.)Prior to the agreement, Marathon had a much smaller presence in Western Pennsylvania, a slightly larger presence in West Virginia, and a nearly universal presence in Southern Ohio.

A 451,000-barrel-per-day refinery in Texas City, Texas, four light product distribution terminals, and retail marketing contracts for 1,200 retail stations in the southeastern United States were among the assets that Marathon acquired from BP in 2013.

Speedway LLC, a former subsidiary of the company, paid $2.82 billion in 2014 to acquire Hess Corporation’s retail operations. The deal also made the Marathon brand available at stations for the first time in the Northeastern United States, north of Pennsylvania and east of the Appalachian Mountains. Prior to the agreement, Marathon’s primary marketing territory had been the Midwestern and Southeastern regions of the United States for decades, with the exception of the Pittsburgh metropolitan area further to the east.

Fire incident in the refinery

Three contract workers were hurt in a fire at the Galveston Bay refinery in Texas City in 2016, which prompted a lawsuit seeking $1 million in damages. Marathon Petroleum Corp. settled a number of cases for a total of $86 million.

Acquisition of Andeavor

Marathon agreed to pay $23 billion for Andeavor, a Western United States-based independent refinery and oil company, on April 30, 2018.Marathon will acquire all outstanding shares of Andeavor. The merger was completed on October 1, 2018. The SuperAmerica convenience stores are returning to Speedway as a result of this merger. Marathon made plans to spin off their Speedway convenience stores public on October 31, 2019.Additionally, Gary Heminger will step down as chairman and CEO of Marathon. In addition, the deal gave Marathon ownership of the ARCO brand and allowed the brand to become a national one for the first time, as well as the introduction of the Marathon name at stations in the Western United States.

With 16 refineries and a capacity of more than 3 million barrels per day after acquiring Andeavor on October 1, 2018, Marathon Petroleum is now the largest petroleum refinery operator in the United States. On the 2018 Fortune 500 list of the biggest American corporations by total revenue, Marathon Petroleum came in at number 41. Marathon Petroleum was listed as the 197th-largest public corporation in the world in the 2020 Forbes Global 2000.

The marketing strategy of Marathon Petroleum involves branded places, such as Marathon branded outlets, all throughout the United States. Additionally, MPC owns the general partner and majority limited partner stake in MPLX LP, a midstream business that owns and manages collection, processing, and fractionation assets in addition to logistics and transportation infrastructure for crude oil and light products.

Marathon Petroleum Corp. Sales of Speedway

Marathon made the announcement on August 2, 2020, that Seven & I Holdings would be purchasing Speedway for $21 billion. With regulatory approval, the deal was expected to close in early 2021. On May 14, 2021, the deal came to an end.

Marathon Petroleum Corp. Operations

The corporation is the owner of:

• 16 refineries that process 2,913,900 barrels of crude oil every day.
• About 8,400 miles (13,500 km) of petroleum pipelines and 5,000 miles (8,050 km) of natural gas and natural gas liquids pipelines, as well as ancillary transportation and distribution assets like railcars, barges, and processing terminals, are subject to leasehold or ownership rights.
• a 20.4% stake in MPLX, a public master limited partnership that owns pipelines and other midstream assets for the movement and storage of crude oil, including a controlling 2% general partner interest.

Marathon Petroleum Corp. Finances

As of the fiscal year of 2020, the company’s key financials are:

• Revenue – $69.032 billion
• Net Income – $9.77 billion
• Operating Income – $12.247 billion
• Total assets – $85.158 billion
• Total equity – $29 252 billion

Staffs

The demographic backgrounds of the Marathon Petroleum personnel are exceptionally diversified. 35.1% of employees are women, and 35.2% are people of color. Marathon Petroleum personnel are noticeably less diverse politically than they are in other respects. At 82.0%, it has an atypically high percentage of Republican Party members among its workforce. Workers appear to love their jobs in an otherwise varied workplace where Republicans predominate. Employees at Marathon Petroleum typically stay with the firm for 4.7 years, which demonstrates the company’s excellent employee retention. Marathon Petroleum’s typical employee earns $67,666 annually. The highest-paying rivals, such as BP America Inc., Andeavor, and Marathon Oil, pay, respectively, $112,940, $81,636, and $77,212. Total number of employees recorded was about 43800[December 2017]