Marathon Petroleum

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Marathon Petroleum Corporation
Public company
Traded as NYSEMPC
S&P 500 Component
Industry Oil and gas
Predecessor Marathon Oil (1984)
Ashland Inc.
USX Corporation
Marathon Oil
Founded Findlay, Ohio, (September 1, 2005; 12 years ago (2005-09-01))
Headquarters Findlay, Ohio
Number of locations
  • 5,600 independent Marathon Brand stations
  • 2,740 Speedway locations
Area served
Worldwide
Key people
Gary R. Heminger (CEO)
Products
Production output
1,900,000 barrels per day of refined crude oil (2017)[1]
Services
Revenue Increase US$75.369 billion (2017)[1]
Increase US$3.969 billion (2017)[1]
Increase US$3.432 billion (2017)[1]
Total assets Increase US$49.047 billion (2017)[1]
Total equity Increase US$14.033 billion (2017)[1]
Number of employees
~43,800 (December 2017)[1]
Divisions Speedway LLC
Catlettsburg Refining
Website www.marathonpetroleum.com

Marathon Petroleum Corporation is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011.

Marathon Gas Station in Long Grove, IL

Operations[edit]

The company owns:

  • 6 refineries[2] with a total crude oil throughput of 1,881,000 barrels (285,223 m^3) per day:
# Name Location Throughput
1 Canton Refinery Canton, Ohio 93,000 barrels (14,786 m^3) per day
2 Catlettsburg Refinery Catlettsburg, Kentucky 277,000 barrels (43,404 m^3) per day
3 Detroit Refinery Detroit, Michigan 139,000 barrels (20,986 m^3) per day
4 Galveston Bay Refinery Texas City, Texas 571,000 barrels (72,975 m^3) per day
5 Garyville Refinery Garyville, Louisiana 556,000 barrels (85,694 m^3) per day
6 Robinson Refinery Robinson, Illinois 245,000 barrels (33,705 m^3) per day
  • The Speedway LLC retail chain, which includes 2,770 retail outlets, is the second largest chain of company-owned and operated retail gasoline and convenience stores in the United States.
  • Leasehold or ownership interests in approximately 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 related transportation and distribution assets such as railcars, barges, and processing terminals.
  • A 20.4% interest, including a controlling 2% general partner interest, in MPLX, a public master limited partnership that owns pipelines and other midstream assets related to the transportation and storage of crude oil. NYSEMPLX [3]

History[edit]

Marathon Petroleum Corporation was formed on November 9, 2005 as a subsidiary of Marathon Oil.

Former parent company[edit]

Marathon Oil, the company's former parent, dates back to 1887 when several small oil companies in Ohio banded together to form The Ohio Oil Company.[4] In 1889, it was purchased by John D. Rockefeller's Standard Oil. It remained a part of Standard Oil until the Standard Oil Trust was broken in 1911. In 1930, The Ohio Oil Company bought the Transcontinental Oil Company and established the "Marathon" brand name. In 1962, the company changed its name to "Marathon Oil Company". From 1982 until 2002, Marathon Oil was a subsidiary of U.S. Steel.

In 2005, Marathon Oil announced the spin-off of its Downstream, refining and marketing assets to a separate company called Marathon Petroleum Corporation.

Predecessor company[edit]

The predecessor company of Marathon Petroleum Corporation, Marathon Petroleum Company LLC, formerly known as Marathon Ashland Petroleum LLC, was formed by the merger of the refining operations of Marathon Oil and Ashland Inc. in 1998. In 2005, the company became a 100% owned subsidiary of Marathon Oil.[5]

In 2006, Marathon began using STP-branded additives in its gasoline.[6]

In 2009, the company completed a $3.9 billion expansion of its refinery in Garyville, Louisiana that increased the plant’s capacity by 180,000 barrels per day.[5]

In 2010, the company sold its 74,000 barrel-per-day refinery in St. Paul Park, Minnesota along with associated terminals, pipelines, and inventory as well as 166 SuperAmerica convenience stores to Northern Tier Energy for $900 million.[7]

Post-corporate spin-off from Marathon Oil[edit]

On June 30, 2011, Marathon Oil distributed all of its shares in the company to its shareholders via a corporate spin-off.[3]

In June 2012, Wheeling, West Virginia-based Tri-State Petroleum signed a contract to switch 50 stations in Ohio, Pennsylvania, and West Virginia to the Marathon brand. Most of Tri-State's stations before the deal were ExxonMobil-branded stations, the majority Exxon as well as a few scattered Mobil stations in the immediate Wheeling area. Included in the deal were 18 Exxon stations in the Pittsburgh metropolitan area, significantly boosting Marathon's presence in the Pittsburgh market, where former parent company U.S. Steel is based. (Exxon would offset its Pittsburgh losses by taking over the retail contracts of several Shell stations in the area, leaving Shell with a significantly reduced presence, while the Mobil brand was withdrawn from the Northern Panhandle of West Virginia altogether.) Before the deal, Marathon had a much smaller presence in Western Pennsylvania, while having a somewhat larger presence in West Virginia and an almost ubiquitous presence in Southern Ohio.[8]

In 2013, Marathon purchased numerous assets from BP including 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 throughout the southeastern United States.[9]

In 2014, Speedway LLC, a subsidiary of the company, purchased the retail operations of Hess Corporation for $2.82 billion.[10]

Refinery fire[edit]

In 2016, a fire at the Galveston Bay refinery in Texas City, Texas injured three contract workers, resulting in a lawsuit seeking $1 million in damages.[11] Multiple lawsuits were filed resulting in Marathon paying $86 million to settle.[12]

2018 acquisition of Andeavor[edit]

On April 30, 2018, Marathon agreed to buy Andeavor, an independent refinery and oil company based in the Western United States, for $23 billion. Marathon will acquire all of Andeavor's outstanding shares.[13][14]

References[edit]

External links[edit]