Marathon Petroleum Corporation MPC today
announced it has signed a definitive agreement to purchase BP's 451,000 barrel
per calendar day (475,000 barrel per stream day) Texas City refinery, three
intrastate NGL pipelines originating at the refinery, an allocation of BP's
Colonial Pipeline Company shipper history, four terminals, retail marketing
contract assignments for approximately 1,200 branded sites and a 1,040
megawatt cogeneration (cogen) facility. The base purchase price is $598
million, plus inventories estimated at $1.2 billion. The agreement also
contains an earnout provision under which MPC could pay up to an additional
$700 million over six years, subject to certain conditions. The transaction is
expected to be accretive to earnings in the first year of operation. The
acquisition is expected to be funded with cash on hand, and is anticipated to
close early in 2013, subject to customary closing conditions and regulatory
approvals.
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