Marathon to sell Minnesota downstream assets for $800MM

Source: Marathon Oil

Marathon Oil Corporation (MRO) entered into a non-binding Letter of Intent with ACON Investments, LLC, NTR Partners LLC and TPG Capital, L.P. for the sale of most of Marathon's Minnesota downstream assets. 

These assets include the 74,000 barrel per day St. Paul Park refinery and associated terminal, 166 SuperAmerica convenience stores along with the SuperMom's Bakery (a baked goods supply operation), SuperAmerica Franchising LLC, interests in pipeline assets in Minnesota and associated inventories. 

The estimated overall transaction value is expected to be in excess of $800 million, including inventories at current market values. Marathon may also receive additional contingent payments over a number of years. Under the Letter of Intent, the investment group will have a period of exclusivity to work towards negotiation of definitive agreements. 

Marathon anticipates closing to occur within the late third or fourth quarter. The sale of these assets is subject to, among other things, conclusion of definitive agreements and Marathon board approval. Marathon would provide services to support the operation of the facilities during a transition period following a successful closing of this transaction. 

This proposed sale is part of Marathon's ongoing efforts to ensure the Company's asset portfolio is strategically aligned with its business plans, while maintaining its position as one of the leading refining, marketing and transportation operations in the nation. Marathon expects to continue to be one of the largest suppliers of finished products in the Midwest and Southeast through its remaining refining, distribution and marketing system. 

This transaction would not affect Marathon's Brand marketing operations in Minnesota. Marathon plans to continue to provide reliable refined product supply to these operations in accordance with the agreements with its Marathon Brand customers.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs