Marathon Petroleum and MPLX Agree to Sell Two Refineries and Midstream Assets for $4.2B

Marathon Petroleum and MPLX agreed to sell two refineries and associated midstream assets to CVR Energy for $4.2 billion, while Marathon management plans to prioritize Gulf Coast investment.

The assets include the St. Paul Park refinery in Minnesota, the Mandan refinery in North Dakota and related midstream assets. The agreement confirms a previously reported CVR Energy acquisition plan.

Marathon Petroleum management is prioritizing Gulf Coast projects that meet company return requirements and strategic goals. The company also plans to continue share repurchases as part of its capital returns.

Management projects fourth-quarter throughput of about 2.8 million barrels per day. Marathon achieved 100% utilization in the third quarter, and management said demand destruction had not emerged across its operations. Fourth-quarter maintenance on conversion units is expected to pressure capture.

Gulf Coast projects are expected to begin service by year-end 2027. They include a 90,000-barrel-per-day distillate hydrotreater at Galveston Bay and Garyville upgrades intended to add 30,000 barrels per day of crude throughput and 10,000 barrels per day of premium gasoline exports while lowering costs.