Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum

bigger fish smaller fishWhile all eyes have been on the possible hostile takeover of midstream giant Williams by another midstream giant, Energy Transfer Equity (see Williams Continues to Resist ET Offer, Talks with Other Suitors), another midstream (i.e. pipeline company) merger was quietly being arranged that has rocked the midstream world. Yesterday MarkWest Energy, with major operations in the Marcellus/Utica–MDN would call it the premier midstream company in the northeast–announced it is selling itself to Marathon Petroleum Corp.’s midstream division MPLX, a master limited partnership or MLP. The “merger” (i.e. sale of MarkWest to Marathon) will create the fourth largest MLP in the United States–worth $21 billion in market capitalization. MarkWest is twice the size of MPLX, which makes this an interesting story and truly big news for the Marcellus/Utica…
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Marathon Petroleum Buys the Hess Truck! What Will We Do for Xmas?

Hess truck toyYou know that big green Hess truck that pulls into your local Hess gas station to fill the underground storage tanks with gasoline? Neither the truck nor the gas station belong to Hess anymore. Hess has completed its transformation to a production and exploration (E&P) company only. Hess has E&P operations around the world, including an active drilling program in Ohio’s Utica Shale. Word came last week that Marathon Petroleum Corp has completed its purchase of Hess’ retail and transportation operations (gas stations and trucking)–for a whopping $2.82 billion. The purchase will allow Hess to laser focus on finding oil and gas. The burning question is, will Marathon keep the green Hess truck toys for Christmas?…
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Marathon to Move Utica NGLs to Refineries by Truck & Barge

Marathon Petroleum Corp. (MPC) and Harvest Pipeline Company announced yesterday they’re working together to build a system to bring natural gas liquids (NGLs) from the Utica Shale in eastern Ohio and western Pennsylvania to Marathon’s refineries by truck and barge along the Ohio River. The joint project will be completed by the end of 2013.

From the Marathon press release:

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