Marathon Petroleum Corp. has agreed to contribute an additional $400 million in cash to MPLX LP—the Findlay, Ohio-based master limited partnership (MLP) formed by Marathon Petroleum in 2012—as part of the pending merger of MPLX and MarkWest Energy Partners LP (OGJ Online, July 13, 2015).
MarkWest unitholders will now receive a one-time cash payment $1.075 billion. Upon the deal’s closing, MarkWest Energy Partners would become a wholly owned subsidiary of MPLX.
Marathon Petroleum also will contribute $225 million based on the price of MPLX’s common units on Nov. 10, to maintain its 2% general partner interest in MPLX. These proceeds will be retained by the partnership to support its growth, Marathon says. All other terms of the initially reported merger agreement remain the same.
The merger is recommended by the boards of directors of Marathon Petroleum, MPLX, and MarkWest, and the executive management of both partnerships also strongly supports the deal and its revised terms.
The deal is subject to approval by MarkWest unitholders and to customary closing conditions, and is expected to close in the fourth quarter.