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Marathon (MPC) Postpones Divestment of Speedway Business to Q2

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Last August, Marathon Petroleum Corporation (MPC - Free Report) announced the sale of its Speedway business, comprising approximately 3,900 c-stores in 35 states, to Japan-based retail group Seven & i Holdings — the owner of the 7-Eleven convenience store chain — for $21 billion. The deal, which was earlier scheduled to close in the first quarter of this year, is now slated to close in the second quarter, contingent upon pending approvals.

Apart from providing the leading independent refiner, transporter and marketer of petroleum products with a much-needed cash infusion, the disposal of its Speedway-branded gas stations at a premium price is expected to enhance its shareholder value.

Earlier this month, management approved Marathon Petroleum’spermits for the conversion of its Martinez petroleum refinery — idled indefinitely — into a renewable diesel facility. The renewable diesel project is expected to start the production of renewable diesel in 2022, with an upgrade to full capacity in 2023. The company’s objective to attain the world’s growing energy requirements, while reducing carbon emissions, coordinates with Martinez’s renewable fuel production.

About Marathon Petroleum

Findlay, OH-based Marathon Petroleum is an integrated, downstream energy company. The company in its current form came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.  It operates the country’s largest refining system, with more than 3 million barrels of crude oil capacity per day across 16 refineries. The company’s marketing system includes branded locations across the United States, including Marathon brand retail outlets.

Zacks Rank & Key Picks

Marathon Petroleum currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Matador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. (DEN - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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