Marathon and MPLX Agree to Sell Two Refineries for $4.2 Billion
CVR Energy will acquire the Minnesota and North Dakota sites, while Marathon and MPLX expect to reinvest proceeds in other areas.
Key takeaways
- CVR Energy agreed to buy two refineries and related midstream assets for $4.2 billion, plus inventory value.
- Marathon will receive $3.45 billion for refining assets; MPLX will receive $750 million for midstream assets.
- The companies expect the deal to close at the end of 2026, subject to conditions.
Marathon Petroleum and MPLX agreed to sell two refineries in Minnesota and North Dakota, along with related midstream assets, to CVR Energy for $4.2 billion plus inventory value. The purchase price is subject to adjustments.
Marathon is set to receive $3.45 billion for the refining assets, excluding inventory value. MPLX will receive $750 million for midstream assets, including an interest in a crude oil pipeline, storage capacity and three terminals.
The St. Paul Park refinery has crude oil capacity of 105 thousand bpcd, while Mandan can process 72 thousand bpcd. After the deal, Marathon expects to retain refining capacity of about 2.8 million barrels per calendar day.
Marathon and MPLX said they intend to reinvest the capital primarily in the Gulf Coast and support MPLX growth in the Permian and Marcellus basins. The companies expect the transaction to close at the end of 2026, subject to customary conditions, including antitrust clearance.
The sale of the midstream assets represents a 9-times multiple of forecast 2027 EBITDA, according to the companies. Both boards approved the transaction.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
