Marathon Files for Pipeline IPO

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Marathon Petroleum Corp. (NYSE: MPC) has filed with the SEC for the IPO of a new pipeline company, MPLX LP, that would operate as a master limited partnership (MLP) and trade on the NYSE under the stock symbol ‘MPLX’. The filing does not indicate either the number of common units to be offered or the offering price or a date for the IPO. Underwriters are UBS and BofA/ML.

Marathon Petroleum was spun off Marathon Oil Corp. (NYSE: MRO) last year and includes the former parent company’s mid-stream and refining assets. MPLX will own crude oil and products pipelines in the Midwest and along the Gulf Coast, as well as a barge dock, butane cavern, and other storage facilities.

Marathon Petroleum will contribute all the assets of MPLX Terminal and Storage LLC, Marathon Pipe Line LLC, and Ohio River Pipe Line LLC to the new company, along with the 51% general partner interest in MPLX Pipe Line Holdings LP. Marathon Petroleum will retain a 49% limited partner interest in MPLX.

The filing does specify that $204 million will be contributed to a MPLX Pipe Line Holdings following the IPO and $10 million will be used for general partnership purposes including working capital. The new company will enter into a $500 million revolving credit facility upon the closing of the IPO. The underwriters will be granted an unspecified over-allotment option.

MPLX noted that, on a pro forma basis, for the 12 months ended December 2011, cash available for distribution would have totaled approximately $50 million. For the 12 months ended March 2012, available cash would have totaled approximately $53.1 million.

The full filing is available here.

Paul Ausick