Marathon Petroleum

Source: Wikipedia, the free encyclopedia.
Marathon Petroleum Corporation
Products
Production output
Total rated crude oil refining capacity: 3,067,000 BPCD (2020)
Services
RevenueIncrease US$177.41 billion (Fiscal Year Ended December 31, 2022)[1]
Increase US$19.78 billion (Fiscal Year Ended December 31, 2022)[1]
Increase US$14.51 billion (Fiscal Year Ended December 31, 2022)[1]
Total assetsIncrease US$89.9 billion (Fiscal Year Ended December 31, 2022)[1]
Total equityIncrease US$35.09 billion (Fiscal Year Ended December 31, 2022)[1]
Number of employees
43,800 (December 2017)
Websitemarathonpetroleum.com
Footnotes / references
[2]

Marathon Petroleum Corporation is an

headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off
in 2011.

History

Marathon Petroleum traces its origin from a number of small oil companies in Ohio that banded together in 1887.[3] These formed The Ohio Oil Company established in Lima, Ohio. It became the largest oil producer in the state.[4] By 1889, the company was acquired by the Standard Oil Trust and six years later its headquarters was moved to Findlay.[5] In 1906, the company built its first oil pipeline, which connected its facilities in Martinsville, Illinois and Preble, Indiana.[6]

After the U.S. Supreme Court ordered its parent company to break up as a result of the Sherman Anti-Trust Act in 1911, Ohio Oil again became independent.[4][5] It expanded its operations by purchasing oil fields outside of Ohio.[5] The company also started oil refining. In 1924, the company discovered oil in Texas.[4] In the same year, it acquired Lincoln Oil Refining Company. This purchase included a refinery and 17 brand service stations in Indiana. Several years later, Ohio Oil acquired Transcontinental Oil, which – in addition to refineries, storage facilities, and filling stations – the Marathon product name.[6]

Following its acquisition of

petroleum refinery operator in the United States, with 16 refineries and over 3 million barrels per calendar day of refining capacity.[7] Marathon Petroleum ranked No. 41 on the 2018 Fortune 500 list of the largest United States corporations by total revenue.[8] In the 2020 Forbes Global 2000, Marathon Petroleum was ranked as the 197th-largest public company in the world.[9]

Marathon Petroleum's marketing system includes branded locations across the United States, including Marathon branded outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company which owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure.

Marathon's former corporate logo.

Operations

Marathon owns:

  • 13 refineries[10] with a total crude oil throughput of 2,950,000 barrels per calendar day (bpcd)
  • 2 Renewable Fuels Facilities producing 914 million gallons per year
  • 2 Renewable Fuel Pretreatment Facilities and a Soy Processing Facility
# Name Location Throughput
1 Anacortes Refinery Anacortes, Washington 119,000 barrels per calendar day (bpcd)
2 Canton Refinery Canton, Ohio 100,000 barrels per calendar day (bpcd)
3 Catlettsburg Refinery Catlettsburg, Kentucky 300,000 barrels per calendar day (bpcd)
4
Detroit Refinery
Detroit, Michigan
140,000 barrels per calendar day (bpcd)
5 El Paso Refinery El Paso, Texas 133,000 barrels per calendar day (bpcd)
6 Galveston Bay Refinery Texas City, Texas 631,000 barrels per calendar day (bpcd)
7 Garyville Refinery Garyville, Louisiana 597,000 barrels per calendar day (bpcd)
8 Kenai Refinery Kenai, Alaska 68,000 barrels per calendar day (bpcd)
9 Los Angeles Refinery Carson, California 365,000 barrels per calendar day (bpcd)
10 Mandan Refinery Mandan, North Dakota 71,000 barrels per calendar day (bpcd)
11 Robinson Refinery Robinson, Illinois 253,000 barrels per calendar day (bpcd)
12 Salt Lake City Refinery
Salt Lake City, Utah
68,000 barrels per calendar day (bpcd)
13 St. Paul Refinery St. Paul Park, Minnesota 105,000 barrels per calendar day (bpcd)
  • Leasehold or ownership interests in approximately 8,400 miles (13,500 km) of
    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%
    crude oil. NYSEMPLX [11]

Former

  • The
    Speedway LLC retail chain included approximately 4,000 retail outlets, and was the second largest chain of company-owned and operated retail gasoline and convenience stores in the United States.[12] Seven & i Holdings Co., Ltd., parent company of 7-Eleven, acquired the chain in 2020 and the sale was completed on May 14, 2021.[13]
  • Marathon closed the 26,000 bpcd Gallup Refinery[14] in 2020.[14]
  • In 2021 Marathon completed the conversion of the Dickinson Refinery to a renewable diesel (Biodiesel) facility with a capacity of 184 million gallons per year (~12,000 bpcd).
  • In 2023 Marathon completed the conversion of the
    Martinez Refinery[14][15] to a renewable fuels manufacturing facility with a capacity of 730 million gallons per year (47,500 bpcd).[15]

History

Marathon Petroleum Corporation was formed on November 9, 2009, as a subsidiary of Marathon Oil.

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

Ashland Inc. in 1998.[16] The merger brought together several descendants of the Standard Oil trust, as Ashland had acquired several smaller Standard spinoffs while Marathon itself was directly owned by Standard Oil. It also brought Marathon's Speedway and Ashland's SuperAmerica convenience store
chains together and were subsequently merged as "Speedway SuperAmerica".

As longtime Marathon rivals Standard Oil of Ohio and Amoco were acquired by British company BP, Marathon Ashland adopted the marketing slogan "An American Company Serving America", with the slogan being adjourned to Marathon gas pumps. In 2006, it adopted its current slogan, "Fueling the American Spirit" as the company shifts emphasis on work ethic and the contributions of its employees.[17]

In 2005, the company became a 100% owned subsidiary of Marathon Oil, after Ashland sold off its downstream assets and exited the retail business.[18] In 2006, Marathon began using STP-branded additives in its fuel.[19]

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.[18]

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.[20]

Post-corporate spin-off from Marathon Oil

The Marathon Petroleum campus.

On June 30, 2011, Marathon Oil distributed all of its shares in the company to its shareholders via a corporate spin-off.[11]

In June 2012,

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.[21]

In 2013, Marathon purchased numerous assets from BP including a 451,000 barrel per calendar 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.[22]

In 2014,

Pittsburgh metropolitan area
.

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.[24] Multiple lawsuits were filed resulting in Marathon paying $86 million to settle.[25]

2018 acquisition of Andeavor, sale of Speedway LLC

On April 30, 2018, Marathon agreed to buy

Andeavor, an independent refinery and oil company based in the Western United States, for $23 billion.[26] Marathon will acquire all of Andeavor's outstanding shares.[27][28] On October 1, 2018, the merger was completed. This merger brings the SuperAmerica convenience stores back to Speedway.[29] On October 31, 2019, Marathon announced plans to spin off their Speedway convenience stores. Gary Heminger will also retire from his role as Marathon Chairman and CEO.[30][31] The deal also had the effect of introducing the Marathon brand name at stations in the Western United States for the first time and making Marathon a national brand name for the first time, as well as giving Marathon ownership of the ARCO
brand.

On August 2, 2020, Marathon announced that

Speedway for $21 billion. The deal was anticipated to close in early 2021 pending regulatory approval.[32][33][34][35][36] The deal closed on May 14, 2021.[13]

Finances

Financial data in $ millions[37]
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue 62,487 78,638 82,243 100,160 97,817 72,051 63,339 74,733 86,086 111,148 69,779 119,983 177,453
Net Income
622 2,385 3,383 2,108 2,524 2,852 1,174 3,432 2,780 2,637 -9,826 9,738 14,516
Assets
23,232 25,745 27,223 28,385 30,425 43,115 44,413 49,047 92,940 98,556 85,158 85,373 89,904
Employees 25,985 29,865 45,340 45,440 44,460 43,800 60,350 60,910

See also

References

  1. ^ a b c d e "Marathon Petroleum Corporation 2022 Annual Report" (PDF). marathonpetroleum.com. 31 December 2022.
  2. ^ "Marathon Petroleum Corporation 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
  3. ^ "An Enduring Relationship with the American Driver". Marathon Petroleum. Retrieved September 6, 2023.
  4. ^ .
  5. ^ a b c "Marathon Oil Company | Oil & Gas, Exploration & Production | Britannica". www.britannica.com. 2023-08-25. Retrieved 2023-09-05.
  6. ^ .
  7. ^ "Marathon Petroleum Corp. Announces Successful Completion Of Andeavor Combination, Creating The Leading US Refining, Midstream And Marketing Company". Archived from the original on 2019-04-10. Retrieved 2018-10-02.
  8. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Archived from the original on 2019-01-15. Retrieved 2018-11-10.
  9. ^ "Forbes Global 2000". Forbes. Retrieved 31 October 2020.
  10. ^ "Refining Operations | Marathon Petroleum Corporation".
  11. ^ a b "10-K". www.sec.gov.
  12. ^ "Ranking the Top 40 C-Store Chains: A 2019 Update". CSP Daily News.
  13. ^ a b "Marathon Petroleum & 7-Eleven Close Speedway Acquisition". Convenience Store News. 14 May 2021. Retrieved 23 May 2021.
  14. ^ a b c Marathon Petroleum Won’t Restart Two Idled Oil Refineries bloomberg.com, retrieved 28 September 2020
  15. ^ a b Marathon Petroleum to Proceed with Conversion of Martinez Refinery to Renewable Fuels Facility Archived 2022-07-14 at the Wayback Machine marathonmartinezrenewables.com, retrieved 20 July 2021
  16. ^ Minerals Yearbook. Washington, D.C.: USGPO. 2000. p. 75.2.
  17. .
  18. ^ a b "Our History | Marathon Petroleum Corporation".
  19. ^ "Marathon Gasoline with STP Additives". Retrieved 27 February 2013.
  20. ^ "Marathon Signs Definitive Agreements With ACON Investments and TPG Capital For Sale Of Minnesota Downstream Assets". October 6, 2010.
  21. ^ "Gas station operator converting 18 to Marathon brand". TribLIVE. Retrieved April 20, 2013.
  22. ^ "Purchase of BP's Texas City Refinery and Related Assets Closes". February 1, 2013. Archived from the original on September 21, 2017. Retrieved March 8, 2016.
  23. ^ "Purchase of Hess' Retail Operations and Related Assets Closes". October 1, 2014. Archived from the original on September 21, 2017. Retrieved March 8, 2016.
  24. ^ "Marathon Petroleum sued in Texas court over Jan. 11 refinery fire: lawyers". January 19, 2016.
  25. ^ "Marathon Petroleum to pay 86 million to settle Texas fire lawsuits". New York Daily News. August 3, 2017.
  26. ^ "Marathon creates the top US refiner with $23 billion Andeavor deal". CNBC. Reuters. 2018-04-30. Retrieved 2023-06-08.
  27. ^ "Marathon Petroleum Corporation – Investor Relations – News Release". ir.marathonpetroleum.com. Retrieved 30 April 2018.[permanent dead link]
  28. ^ DiChristopher, Tom (2018-05-01). "Marathon-Andeavor merger checks the boxes where it counts: Texas, Mexico and the high seas". CNBC. Retrieved 2018-05-04.
  29. ^ "Marathon Petroleum Corporation – Press Release". Archived from the original on 2018-10-01.
  30. ^ "Press Release | Marathon Petroleum Corporation". Archived from the original on 2019-11-21. Retrieved 2019-10-31.
  31. ^ "Press Release | Marathon Petroleum Corporation". Archived from the original on 2019-11-04. Retrieved 2019-10-31.
  32. ^ "Marathon Petroleum Corp. Announces Agreement for $21 Billion Sale of Speedway". Marathon Petroleum Corporation. 2 August 2020. Retrieved 3 August 2020.
  33. ^ Krauss, Clifford (2 August 2020). "Marathon Is Selling Speedway Gas Stations to 7-Eleven's Parent for $21 Billion". The New York Times. Retrieved 3 August 2020.
  34. ^ Ando, Ritsuko; Singh, Kanishka (2 August 2020). "Japan's Seven & i seals $21 billion deal for Marathon Petroleum's Speedway gas stations". Reuters. Retrieved 4 August 2020.
  35. ^ Lindenberg, Greg (3 August 2020). "7-Eleven Outlines Benefits of Speedway Acquisition". CSP Daily News. Retrieved 4 August 2020.
  36. ISSN 0099-9660
    . Retrieved 2020-08-03.
  37. , retrieved 2024-01-11

External links