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FINDLAY, Ohio, Feb 4, 2015 - (ACN Newswire) - Marathon Petroleum Corporation (NYSE: MPC) today announced its 2015 capital investment plan of $2.53 billion. The plan includes $1.28 billion for the refining and marketing segment, $452 million for the Speedway segment, $659 million for the pipeline transportation segment and $140 million for corporate and other.
"MPC's 2015 capital investment plan demonstrates our commitment to execute on our corporate strategies," said MPC President and Chief Executive Officer Gary R. Heminger. "In addition to maintaining top-tier safety and environmental performance, MPC's capital plan reflects our continued emphasis on investments to develop value-enhancing projects and more stable cash-flow businesses, which further enable sustained capital returns to shareholders."
The refining and marketing segment's capital plan of $1.28 billion includes approximately $235 million for midstream investments, approximately $370 million for refining margin enhancement projects and approximately $675 million for refinery-sustaining capital. "Our focus for refining in 2015 is to invest in projects that enhance our overall return," said Heminger. "For example, we are continuing to invest in projects to improve connectivity between our Galveston Bay and Texas City refineries, which will allow us to realize additional synergies through the integration of these two refineries."
With respect to the residual oil upgrader expansion (ROUX) project at MPC's Garyville refinery, Heminger stated, "We believe this project has great potential returns, but we are deferring a final investment decision as we further evaluate the implications of current market conditions on the project."
Heminger also highlighted the approximately $235 million of capital investments planned for midstream included in the refining and marketing total, commenting that MPC's intent is to grow its base of MLP-eligible earnings to support the accelerated growth profile of the company's sponsored master limited partnership MPLX LP (NYSE: MPLX).
In the pipeline transportation segment, MPC plans to invest $659 million in projects to support the changing energy landscape in the United States. "MPC will continue to work with Enbridge on the new Sandpiper and Southern Access Extension pipelines to bring Bakken crude oil to our Midwest refineries," he said. "Due to permitting delays on these projects, we will defer approximately $440 million of capital spending originally intended for 2015." Heminger noted investments in this segment also include growth projects undertaken by MPLX, such as the proposed Cornerstone Pipeline and other associated build-out projects, which completed a non-binding open season in the second half of 2014, with a binding open season expected in the first quarter of 2015.
Speedway's capital plan of $452 million is focused on continued growth and integrating the Hess retail operations into Speedway. The budget includes approximately $240 million for the Hess retail outlets primarily associated with store conversions and remodels, which will drive incremental merchandise sales.
About Marathon Petroleum Corporation
MPC is the nation's fourth-largest refiner, with a crude oil refining capacity of approximately 1.7 million barrels per calendar day in its seven-refinery system. Marathon brand gasoline is sold through approximately 5,460 independently owned retail outlets across 19 states. In addition, Speedway LLC, an MPC subsidiary, owns and operates the nation's second-largest convenience store chain, with approximately 2,750 convenience stores in 22 states. MPC also owns, leases or has ownership interests in approximately 8,300 miles of pipeline. Through subsidiaries, MPC owns the general partner of MPLX LP, a midstream master limited partnership. MPC's fully integrated system provides operational flexibility to move crude oil, feedstocks and petroleum-related products efficiently through the company's distribution network in the Midwest, Southeast and Gulf Coast regions. For additional information about the company, please visit our website at http://www.marathonpetroleum.com.
Investor Relations Contacts:
Geri Ewing +1-419-421-2071
Teresa Homan +1-419-421-2965
Media Contacts:
Chuck Rice +1-419-421-2521
Brandon Daniels +1-419-421-3127
Forward-looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws regarding both MPC and MPLX. These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPC and MPLX. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "objective," "expect," "forecast," "plan," "project," "potential," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the companies' control and are difficult to predict. Factors that could cause MPC's actual results to differ materially from those in the forward-looking statements include: our ability to successfully integrate the acquired Hess retail operations and achieve the strategic and other expected objectives relating to the acquisition, including any expected synergies; changes to the expected construction costs and timing of pipeline projects; volatility in and/or degradation of market and industry conditions; the availability and pricing of crude oil and other feedstocks; slower growth in domestic and Canadian crude supply; an easing or lifting of the U.S. crude oil export ban; completion of pipeline capacity to areas outside the U.S. Midwest; consumer demand for refined products; transportation logistics; the reliability of processing units and other equipment; our ability to successfully implement growth opportunities; modifications to MPLX earnings and distribution growth objectives; impacts from our repurchases of shares of MPC common stock under our share repurchase authorizations, including the timing and amounts of any common stock repurchases; federal and state environmental, economic, health and safety, energy and other policies and regulations, including the cost of compliance with the Renewable Fuel Standard; changes to MPC's capital budget; other risk factors inherent to MPC's industry; and the factors set forth under the heading "Risk Factors" in MPC's Annual Report on Form 10-K for the year ended Dec. 31, 2013, filed with the Securities and Exchange Commission (SEC). Factors that could cause MPLX's actual results to differ materially from those in the forward-looking statements include: the adequacy of MPLX capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions and execute business plans; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; volatility in and/or degradation of market and industry conditions; completion of pipeline capacity by competitors; disruptions due to equipment interruption or failure, including electrical shortages and power grid failures; the suspension, reduction or termination of MPC's obligations under commercial agreements; the ability to successfully implement growth plans, whether through organic growth or acquisitions; federal and state environmental, economic, health and safety, energy and other policies and regulations; changes to MPLX's capital budget; other risk factors inherent to MPLX's industry; and the factors set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended Dec. 31, 2013, filed with the SEC. In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here, in MPC's Form 10-K or in MPLX's Form 10-K could also have material adverse effects on forward-looking statements.
Copies of MPC's Form 10-K are available on the SEC website, MPC's website at http://ir.marathonpetroleum.com or by contacting MPC's Investor Relations Office. Copies of MPLX's Form 10-K are available on the SEC website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
MPC Capital Investment Plan: http://hugin.info/147922/R/1891696/669914.pdf
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Marathon Petroleum Corporation via Globenewswire
Topic: Press release summary
Source: Marathon Petroleum Corporation
https://www.acnnewswire.com
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