Marathon Petroleum
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.
| Company type | Public |
|---|---|
| NYSE: MPC S&P 500 Component | |
| Industry | Petroleum |
| Predecessors | Marathon Oil (1984) Ashland Global USX Corporation Marathon Oil |
| Founded | November 9, 2009 |
| Headquarters | , |
Number of locations |
|
Area served | Worldwide |
Key people | John P. Surma, Chairman Michael J. Hennigan, President & CEO |
| Products | |
Production output | Total rated crude oil refining capacity: 3,067,000 BPCD (2020) |
| Services | |
| Revenue | US$177.41 billion (Fiscal Year Ended December 31, 2022)[1] |
| US$19.78 billion (Fiscal Year Ended December 31, 2022)[1] | |
| US$14.51 billion (Fiscal Year Ended December 31, 2022)[1] | |
| Total assets | US$89.9 billion (Fiscal Year Ended December 31, 2022)[1] |
| Total equity | US$35.09 billion (Fiscal Year Ended December 31, 2022)[1] |
Number of employees | 43,800 (December 2017) |
| Website | marathonpetroleum.com |
| Footnotes / references [2] | |
History edit
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 Andeavor on October 1, 2018, Marathon Petroleum became the largest 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 and ARCO branded outlets.[10] 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.
Operations edit
Marathon owns:
- 13 refineries[11] 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 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 [12]
Former edit
- 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.[13] Seven & i Holdings Co., Ltd., parent company of 7-Eleven, acquired the chain in 2020 and the sale was completed on May 14, 2021.[14]
- Marathon closed the 26,000 bpcd Gallup Refinery[15] in 2020.[15]
- 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[15][16] to a renewable fuels manufacturing facility with a capacity of 730 million gallons per year (47,500 bpcd).[16]
History edit
Marathon Petroleum Corporation was formed on November 9, 2009, as a subsidiary of Marathon Oil.
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.[17] 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.[18]
In 2005, the company became a 100% owned subsidiary of Marathon Oil, after Ashland sold off its downstream assets and exited the retail business.[19] In 2006, Marathon began using STP-branded additives in its fuel.[20]
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.[19]
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.[21]
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.[12]
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.[22]
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.[23]
In 2014, Speedway LLC, a now-former subsidiary of the company, purchased the retail operations of Hess Corporation for $2.82 billion.[24] The deal also introduced the Marathon brand name at stations for the first time in the Northeastern United States east of the Appalachian Mountains and north of Pennsylvania. Prior to the deal, Marathon's traditional marketing territory for decades had been the Midwestern and Southeastern United States, never going further east than the Pittsburgh metropolitan area.
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.[25] Multiple lawsuits were filed resulting in Marathon paying $86 million to settle.[26]
2018 acquisition of Andeavor, sale of Speedway LLC 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.[27] Marathon will acquire all of Andeavor's outstanding shares.[28][29] On October 1, 2018, the merger was completed. This merger brings the SuperAmerica convenience stores back to Speedway.[30] 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.[31][32] 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 Seven & i Holdings Co., Ltd. would be acquiring Speedway for $21 billion. The deal was anticipated to close in early 2021 pending regulatory approval.[33][34][35][36][37] The deal closed on May 14, 2021.[14]
Finances edit
| 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 edit
References edit
- ^ a b c d e "Marathon Petroleum Corporation 2022 Annual Report" (PDF). marathonpetroleum.com. 31 December 2022.
- ^ "Marathon Petroleum Corporation 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
- ^ "An Enduring Relationship with the American Driver". Marathon Petroleum. Retrieved September 6, 2023.
- ^ a b c Turner, Tyya N. (2005). Vault Guide to the Top Energy Industry Employers. New York: Vault Inc. p. 139. ISBN 1-58131-318-7.
- ^ a b c "Marathon Oil Company | Oil & Gas, Exploration & Production | Britannica". www.britannica.com. 2023-08-25. Retrieved 2023-09-05.
- ^ a b Holloway, Milton L. (2021). Innovation Dynamics and Policy in the Energy Sector: Building Global Energy Markets, Institutions, Public Policy, Technology and Culture on the Texan Innovation Example. London: Academic Press. p. 91. ISBN 978-0-12-823813-4.
- ^ . Archived from the original on 2019-04-10. Retrieved 2018-10-02.
- ^ . Fortune. Archived from the original on 2019-01-15. Retrieved 2018-11-10.
- ^ "Forbes Global 2000". Forbes. Retrieved 31 October 2020.
- ^ https://www.cspdailynews.com/company-news/marathon-launches-new-retail-brand-campaign
- ^ "Refining Operations | Marathon Petroleum Corporation".
- ^ a b "10-K". www.sec.gov.
- ^ "Ranking the Top 40 C-Store Chains: A 2019 Update". CSP Daily News.
- ^ a b "Marathon Petroleum & 7-Eleven Close Speedway Acquisition". Convenience Store News. 14 May 2021. Retrieved 23 May 2021.
- ^ a b c Marathon Petroleum Won’t Restart Two Idled Oil Refineries bloomberg.com, retrieved 28 September 2020
- ^ a b Marathon Petroleum to Proceed with Conversion of Martinez Refinery to Renewable Fuels Facility 2022-07-14 at the Wayback Machine marathonmartinezrenewables.com, retrieved 20 July 2021
- ^ Minerals Yearbook. Washington, D.C.: USGPO. 2000. p. 75.2.
- ^ Coombs, Danielle Sarver; Batchelor, Bob (2014). We Are What We Sell: How Advertising Shapes American Life. . . And Always Has [3 volumes]: How Advertising Shapes American Life. . . and Always Has. Santa Barbara, CA: ABC-CLIO. p. 329. ISBN 978-0-313-39245-0.
- ^ a b "Our History | Marathon Petroleum Corporation".
- ^ "Marathon Gasoline with STP Additives". Retrieved 27 February 2013.
- ^ "Marathon Signs Definitive Agreements With ACON Investments and TPG Capital For Sale Of Minnesota Downstream Assets". October 6, 2010.
- ^ "Gas station operator converting 18 to Marathon brand". TribLIVE. Retrieved April 20, 2013.
- ^ . February 1, 2013. Archived from the original on September 21, 2017. Retrieved March 8, 2016.
- ^ . October 1, 2014. Archived from the original on September 21, 2017. Retrieved March 8, 2016.
- ^ "Marathon Petroleum sued in Texas court over Jan. 11 refinery fire: lawyers". January 19, 2016.
- ^ "Marathon Petroleum to pay 86 million to settle Texas fire lawsuits". New York Daily News. August 3, 2017.
- ^ "Marathon creates the top US refiner with $23 billion Andeavor deal". CNBC. Reuters. 2018-04-30. Retrieved 2023-06-08.
- ^ "Marathon Petroleum Corporation – Investor Relations – News Release". ir.marathonpetroleum.com. Retrieved 30 April 2018.[permanent dead link]
- ^ 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.
- ^ . Archived from the original on 2018-10-01.
- ^ . Archived from the original on 2019-11-21. Retrieved 2019-10-31.
- ^ . Archived from the original on 2019-11-04. Retrieved 2019-10-31.
- ^ "Marathon Petroleum Corp. Announces Agreement for $21 Billion Sale of Speedway". Marathon Petroleum Corporation. 2 August 2020. Retrieved 3 August 2020.
- ^ 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.
- ^ 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.
- ^ Lindenberg, Greg (3 August 2020). "7-Eleven Outlines Benefits of Speedway Acquisition". CSP Daily News. Retrieved 4 August 2020.
- ^ Elliott, Rebecca (2020-08-03). "Marathon Petroleum to Sell Gas-Station Chain to 7-Eleven Owners for $21 Billion". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-08-03.
- ^ "Formal Aspects of Financial Statements", Financial Statements, UVK Verlag, 2019-08-26, doi:10.24053/9783739880143-92, ISBN 978-3-7398-8014-3, retrieved 2024-01-11
External links edit
- Official website
- www.mcpa.org
- Business data for Marathon Petroleum:
- SEC filings
- Yahoo!