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Subject:  MPLX &MPC Announce $8.1B Drop Down Date:  11/13/2017  6:02 PM
Author:  buyandwin Number:  92 of 111

Marathon Petroleum Corp. and MPLX LP announce agreement for approximately $8.1 billion dropdown to MPLX, and MPC initiates offer to exchange its general partner interests, including its IDRs, in MPLX
..The transaction is expected to close on Feb. 1, 2018, and be immediately accretive to MPLX's distributable cash flow per unit..... These assets and services are projected to generate annual earnings before interest, taxes, depreciation and amortization (EBITDA) of $1 billion. MPC is contributing these assets and services in exchange for $4.1 billion in cash and MPLX equity valued at approximately $4 billion. The equity to be issued will consist of 111.6 million MPLX common (LP) units and 2.3 million general partner (GP) units to maintain MPC's 2 percent GP interest in MPLX....Today, MPC also offered to the MPLX board an exchange of its GP economic interests in MPLX, which include incentive distribution rights (IDRs), for newly issued MPLX common units. This transaction is expected to provide a clear valuation for MPC's GP interests in MPLX, and reduce MPLX's cost of capital to support the sustainable long-term growth of the partnership. MPC will continue to own the non-economic general partner interest in MPLX. This transaction is now under review by the conflicts committee of the MPLX board of directors. Subject to approval of the MPLX board, the exchange is expected to close on Feb. 1, 2018, in conjunction with the closing of the dropdown....

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