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(Bloomberg) -- Marathon Petroleum Corp., the U.S. oil refiner under pressure from activist investor Elliott Management Corp. to break itself up, is weighing the sale of two plants in Alaska and Utah, according to people familiar with the matter.The Findlay, Ohio-based company is in active discussions with possible buyers for its 68,000-barrel-per-day Kenai oil refinery near Anchorage and its 58,500-barrel-per-day Salt Lake City refinery, the largest in the Utah, said the people, who asked to not be identified as the discussions are private.A Marathon representative declined to comment on the refineries. The company said last week in a statement it’s carrying out a “comprehensive strategic review.”The Kenai plant is among “several logical non-core” assets flagged for sale by Elliott in a presentation published last month. The investor is also demanding the breakup of Marathon into three segments -- refining, midstream and retail -- which it says would unlock more than $22 billion in value.It’s unclear how much the two plants might fetch in a sale. In May, Chevron Corp. bought the Pasadena refinery, which has a 110,000-barrel-per-day capacity, for $350 million.Hedge fund D.E. Shaw & Co. has also been pushing the refiner to explore ways to unlock value. Marathon investors Paul Foster and Jeff Stevens have called for the ouster of Chief Executive Officer Gary Heminger. Marathon met with all three activists last week to discuss Heminger’s future and the company’s strategy.Marathon is due to report its third-quarter earnings and hold a conference call with analysts and investors on Oct. 31.Shares of the company were 1.1% higher at $65.36 at 11:20 a.m. in New York. (Updates with share price in last paragraph)\--With assistance from David Wethe.To contact the reporters on this story: Catherine Ngai in New York at email@example.com;Kiel Porter in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The federal government's EIA report revealed that crude inventories rose by 9.3 million barrels, compared to the 4 million barrels increase that energy analysts had expected.
(Bloomberg) -- Marathon Petroleum Corp. board members are meeting this week with activist investors to discuss Chief Executive Officer Gary Heminger’s future and the company’s strategy amid calls to split up its businesses, according to people familiar with the matter.After investors Paul Foster and Jeff Stevens met with several board members on Wednesday, representatives for Elliott Management Corp. and D.E. Shaw & Co. plan to meet with directors Thursday, according to the people, who asked not to be identified because the meeting wasn’t public. Foster and Stevens together control about 1.7% of the second-biggest U.S. refiner.Marathon is aiming to make a decision on the CEO and its strategy going forward by the time of the company’s third-quarter earnings call on Oct. 31, the people said. The activists view Executive Vice Chairman Greg Goff, who joined Marathon after its purchase of Andeavor, as a well-respected potential replacement for Heminger, according to the people. Representatives for Elliott, D.E. Shaw, Foster and Stevens declined to comment.“Marathon has delivered substantial shareholder value under the leadership of Chairman and CEO Gary Heminger, who has the full support of the board,” Marathon said in a statement. “As we have said publicly, the company is conducting a comprehensive strategic review, and has been collecting feedback from many shareholders as is our practice. The review is ongoing and no conclusions have been reached.”Marathon shares rose 2.3% to $64.10 in New York after earlier climbing as much as 4.3%.Last month Elliott, which recently took a 2.5% stake in Marathon, renewed its push for Marathon to split into three separate companies in order to unlock more than $22 billion in value. Foster and Stevens released a letter days later demanding Heminger’s ouster. D.E. Shaw, which owned a 0.9% stake as of the end of June, has also been pushing Marathon to find ways to unlock more value, according to people familiar with the matter.In their meeting this week, Stevens and Foster told board members that they’re hearing significant support among shareholders for Heminger to step down and agreement with Elliott’s plan to break up the company, according to one of the people. But board members responded that shareholders have told Marathon’s investor relations team that they don’t object to Heminger staying on as CEO, the person said.Heminger -- who was given an exemption from the company’s age-65 mandatory retirement rule in July 2018 -- took charge of the Findlay, Ohio-based company when Marathon Oil Corp. spun off the business in 2011 and has been fighting activist shareholders ever since. While the Ohio native has previously assuaged investors including Jana Partners LLC and overseen a five-fold rise in dividend payouts, the company has faltered more recently as it sought to expand through acquisitions, including the purchase of rival Andeavor.Heminger appeared with Goff in a video posted to YouTube two weeks ago, with the CEO saying he welcomes feedback from shareholders.“Aligning two organizations of this size is complex and challenging, but we’ve been steadily improving our operations,” Heminger, sitting in a wood-paneled room, said on the video. “We agree that our share value does not fully reflect the underlying value of our assets.”\--With assistance from Kiel Porter and Rachel Adams-Heard.To contact the reporters on this story: Scott Deveau in New York at firstname.lastname@example.org;David Wethe in Houston at email@example.com;Catherine Ngai in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Marathon Petroleum Corp. board members are meeting this week with activist investors to discuss CEO Gary Heminger's future and the company's strategy amid calls to split up its businesses.
In the latest trading session, Marathon Petroleum (MPC) closed at $63.14, marking a -0.44% move from the previous day.
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Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the second quarter. You can find write-ups about an individual hedge fund's trades on numerous financial […]
The federal government's EIA report revealed that crude inventories rose by 2.9 million barrels, compared to the 2.4 million barrels increase that energy analysts had expected.
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MAUMEE, Ohio, Oct. 2, 2019 /PRNewswire/ -- The Andersons, Inc. (ANDE) today announced that it and Marathon Petroleum Corporation (MPC) have merged four ethanol entities with and into the new legal entity The Andersons Marathon Holdings LLC (TAMH).