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Marathon Petroleum

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Not to be confused with Marathon Oil.
Marathon Petroleum Corporation
Company typePublic company
NYSE: MPC
S&P 500 Component
IndustryOil and gas
PredecessorMarathon Oil (1984)
Ashland Inc.
USX Corporation
Marathon Oil
FoundedFindlay, Ohio, (September 1, 2005; 19 years ago (2005-09-01))
HeadquartersFindlay, Ohio
Number of locations
5,500 independent Marathon Brand stations
2,770 Speedway locations
Area served
Worldwide
Key people
Gary R. Heminger (CEO)
ProductsPetroleum, Gasoline
Production output
1,711,000 barrels per day of refined crude oil (2015)[1]
ServicesPipeline transport, refining, marketing
Revenue Decrease US$72.258 billion (2015)[1]
Increase US$4.692 billion (2015)[1]
Increase US$2.868 billion (2015)[1]
Total assets Increase US$43.115 billion (2015)[1]
Total equity Decrease US$13.237 billion (2015)[1]
Number of employees
45,440, including 33,820 employees of Speedway LLC (2015)[1]
DivisionsSpeedway LLC
Catlettsburg Refining LLC
Websitewww.marathonpetroleum.com

Marathon Petroleum Corporation is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. It was elected the best employer of United States in 2016 by Forbes. 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

The company owns:

  • 7 refineries[2] with a total crude oil throughput of 1,794,000 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 273,000 barrels (43,404 m^3) per day
3 Detroit Refinery Detroit, Michigan 132,000 barrels (20,986 m^3) per day
4 Galveston Bay Refinery Texas City, Texas 459,000 barrels (72,975 m^3) per day
5 Garyville Refinery Garyville, Louisiana 539,000 barrels (85,694 m^3) per day
6 Robinson Refinery Robinson, Illinois 212,000 barrels (33,705 m^3) per day
7 Texas City Refinery Texas City, Texas 86,000 barrels (13,673 m^3) per day
  • The Speedway LLC retail chain, which includes 2,770 retail outlets, 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. NYSE: MPLX [1]

History

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

Former parent company

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.[3] From 1982 until 2002, Marathon Oil was a subsidiary of U.S. Steel.

Predecessor company

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. [4]

In 2006, Marathon began using STP-branded additives in its gasoline.[5]

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.[4]

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.[6]

Post-corporate spin-off from Marathon Oil

On June 30, 2011, Marathon Oil distributed all of its shares in the company to its shareholders via a corporate spin-off.[1]

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.[7]

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.[8]

In 2014, Speedway LLC, a subsidiary of the company, purchased the retail operations of Hess Corporation for $2.82 billion.[9]

Refinery fire

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.[10] Multiple lawsuits were filed resulting in Marathon paying $86 million to settle. [11]

References

  1. ^ a b c d e f g h i Marathon Petroleum 2015 Form 10-K Annual Report
  2. ^ Marathon Petroleum: Refining & Marketing
  3. ^ "Marathon Petroleum's 125-Year Journey". Retrieved Sep 25, 2015.
  4. ^ a b Marathon Petroleum: History
  5. ^ "Marathon Gasoline with STP Additives". Retrieved 27 February 2013.
  6. ^ "Marathon Signs Definitive Agreements With ACON Investments and TPG Capital For Sale Of Minnesota Downstream Assets". October 6, 2010.
  7. ^ "Gas station operator converting 18 to Marathon brand". TribLIVE. Retrieved April 20, 2013.
  8. ^ "Purchase of BP's Texas City Refinery and Related Assets Closes". February 1, 2013.
  9. ^ "Purchase of Hess' Retail Operations and Related Assets Closes". October 1, 2014.
  10. ^ "Marathon Petroleum sued in Texas court over Jan. 11 refinery fire: lawyers". January 19, 2016.
  11. ^ "Marathon Petroleum to pay 86 million to settle Texas fire lawsuits". August 3, 2017.
  • Marathon Petroleum Homepage
  • Business data for Marathon Petroleum:
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