Marathon Petroleum Corp. this week announced a series of moves to create more value for shareholders following concerns raised by hedge fund Elliott Management.
The Findlay, Ohio-based refiner said it would accelerate its drop-down of assets with about $1.4 billion of annual earnings before interest, taxes, depreciation and amortization to its master limited partnership, MPLX LP.
The transactions will be completed “as soon as practicable” and are expected in 2017 subject to approvals and regulatory clearances, including tax, Marathon said.
The company also noted that a special committee of its board will conduct a review of Speedway, a chain of gasoline and convenience stores.
Marathon said it will work with an independent financial advisor to conduct the review, which is aimed at delivering value to shareholders over the long term.
Elliott sent a letter to Marathon last November suggesting that it should consider breaking up its retail, refining and pipeline businesses.
The company also said that a special committee of the board will conduct a review of Speedway, its brand of company-owned and operated convenience stores and gas stations.
“Driving long-term value for our shareholders has always been and remains a top priority,” Marathon’s president and chief executive officer Gary R. Heminger , said in a statement.
Heminger added that the company expects Tuesday’s announcements to unlock substantial value for shareholders
“We appreciate the open and candid dialogue we have had with the management team,” Quentin Koffey , portfolio manager at Elliott Management, said in a statement.
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