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MPLX LP Announces Acquisition of Interest in MPLX Pipe Line Holdings LP

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Copyright © Thomson Reuters 2013. All rights reserved.
2013-04-30 13:10:03 -

FINDLAY, Ohio, April 30, 2013 - MPLX LP (NYSE: MPLX) today announced that it has
agreed to acquire an additional 5 percent interest in MPLX Pipe Line Holdings LP
(Pipe Line Holdings) from a subsidiary of Marathon Petroleum Corporation (NYSE:
MPC) for $100 million on May 1, 2013. This transaction represents MPLX's first
acquisition following its initial public offering (IPO) in October 2012. This
acquisition will increase MPLX's interest in Pipe Line Holdings to 56 percent
from the 51 percent interest it held since the IPO. Pipe Line Holdings owns a
100 percent interest in Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line
LLC (ORPL). MPL and ORPL own one of the largest networks of common carrier crude
oil and product pipelines in the U.S. based on 
total volume delivered; a barge dock on the Mississippi River; and crude oil and product storage facilities. "MPLX has many avenues to achieve an attractive distribution growth rate over an extended period of time," said Gary R. Heminger, chief executive officer. "We believe the acquisition of this additional interest in Pipe Line Holdings, along with increasing volumes and tariff revenues, will position MPLX to achieve its distribution growth rate objectives." The acquisition price represents an approximate 9.5 times multiple of the assets' forecasted next twelve months EBITDA. The transaction is expected to be immediately accretive to distributable cash flow. MPLX intends to fund the acquisition with cash on hand. The terms of the acquisition were approved by the board's Conflicts Committee, which is comprised entirely of independent directors. This committee was advised by Evercore Partners as to financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal matters. ### About MPLX LP MPLX is a fee-based, growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon-based products. Headquartered in Findlay, Ohio, MPLX's assets consist of a majority equity interest in a network of common carrier crude oil and products pipeline assets located in the Midwest and Gulf Coast regions of the United States and a 100 percent interest in a butane storage cavern located in West Virginia. Investor Relations Contacts: Pamela Beall (419) 429-5640 Beth Hunter (419) 421-2559 Media Contacts: Angelia Graves (419) 421-2703 This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements relate to, among other things, MPLX's expectations, estimates and projections concerning MPLX business and operations. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "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 MPLX's control and are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include: the adequacy of our capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay distributions and execute our business plan; completion of pipeline capacity by our 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 our commercial agreements; our ability to successfully implement our growth strategy, whether through organic growth or acquisitions; state and federal environmental, economic, health and safety, energy and other policies and regulations; other risk factors inherent to our industry; and the factors set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (SEC). Unpredictable or unknown factors not discussed here or in MPLX's Form 10-K could also have material adverse effects on forward-looking statements. Copies of MPLX's Form 10-K are available on the SEC website, MPLX's website at or by contacting MPLX's Investor Relations Office. MPLX LP Acquisition: This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: MPLX LP via Thomson Reuters ONE [HUG#1697647]

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