We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marathon (MPC) Closes Divestment of $21B Speedway Business
Read MoreHide Full Article
Marathon Petroleum Corporation (MPC - Free Report) recently concluded 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 after-tax cash proceeds of this deal are expected to be $16.5 billion.
Apart from providing the leading independent refiner, transporter and marketer of petroleum products with a much-needed cash infusion, the disposal of the Speedway-branded gas stations at a premium price is expected to enhance its shareholder value. As stated earlier, $2.5 billion of the sales proceeds will be utilized to service Marathon Petroleum’s long-term structural debt.
Per executive vice president and chief financial officer Maryann T. Mannen, the completion of the Speedway deal reflects a significant step toward solidifying the competitive edge of the company’s portfolio.
Along with the completion of the transaction, management announced plans to improve Marathon Petroleum’s financial position and return cash to its shareholders including its intention to buy back $10 billion in common stock.
The strategy begins with a cash tender offer to purchase up to $4 billion worth of shares or roughly 10% of the company's current market value. According to data provided by Bloomberg, this repurchase will be the oil refiner's largest-ever share buyback.
Marathon Petroleum's board members also approved a $7.1-billion share repurchase authorization. This Findlay, OH-based company now has the authority to buy back up to $10 billion of its common shares in addition to the previously-sanctioned $2.9 billion. There is no time limit to this authorization.
However, going by the top two US Federal Trade Commission experts, the conclusion of 7-Eleven's acquisition of thousands of Speedway gas and convenience stations is suspected to be illegal and might pose challenges in hundreds of local markets across the United States.
They further said that the parties culminated their deal at their own risk. The two officials believe that the commission was unable to strike an antitrust accord with the companies. The regulatory body will continue to investigate to decide on the best course of action.
About Marathon Petroleum
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 Whiting Petroleum Corporation , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Marathon (MPC) Closes Divestment of $21B Speedway Business
Marathon Petroleum Corporation (MPC - Free Report) recently concluded 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 after-tax cash proceeds of this deal are expected to be $16.5 billion.
Apart from providing the leading independent refiner, transporter and marketer of petroleum products with a much-needed cash infusion, the disposal of the Speedway-branded gas stations at a premium price is expected to enhance its shareholder value. As stated earlier, $2.5 billion of the sales proceeds will be utilized to service Marathon Petroleum’s long-term structural debt.
Per executive vice president and chief financial officer Maryann T. Mannen, the completion of the Speedway deal reflects a significant step toward solidifying the competitive edge of the company’s portfolio.
Along with the completion of the transaction, management announced plans to improve Marathon Petroleum’s financial position and return cash to its shareholders including its intention to buy back $10 billion in common stock.
The strategy begins with a cash tender offer to purchase up to $4 billion worth of shares or roughly 10% of the company's current market value. According to data provided by Bloomberg, this repurchase will be the oil refiner's largest-ever share buyback.
Marathon Petroleum's board members also approved a $7.1-billion share repurchase authorization. This Findlay, OH-based company now has the authority to buy back up to $10 billion of its common shares in addition to the previously-sanctioned $2.9 billion. There is no time limit to this authorization.
However, going by the top two US Federal Trade Commission experts, the conclusion of 7-Eleven's acquisition of thousands of Speedway gas and convenience stations is suspected to be illegal and might pose challenges in hundreds of local markets across the United States.
They further said that the parties culminated their deal at their own risk. The two officials believe that the commission was unable to strike an antitrust accord with the companies. The regulatory body will continue to investigate to decide on the best course of action.
About Marathon Petroleum
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 Whiting Petroleum Corporation , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>