Marathon Petroleum Goes Public

By Admin
The second largest independent U.S. oil refiner—Marathon Petroleum Corp.—is set to go public on Friday July 1, 2011. The company will open...

 

The second largest independent U.S. oil refiner—Marathon Petroleum Corp.—is set to go public on Friday July 1, 2011.  The company will open to public investment on the New York Stock Exchange, making the move in response to a year-long rise in refining stocks.

Marathon Petroleum has been formed as a subsidiary of the parent company Marathon Oil Corp.  Apparently, investors have increasingly pushed for the company to capitalize on gasoline prices, which have risen at twice the rate of crude oil over the past year. 

Marathon Petroleum has been unofficially valued at $14 billion as permitted by the exchange to help investors gauge stock demand.  This valuation is roughly equivalent to Valero Energy Corp., which has double Marathon’s refining capacity.  However, Marathon Petroleum’s upgraded plants—which account for half of its refining capacity—have helped the company capture higher margins.

 

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

Streamlining Inspection of Oil & Gas Well Sites & Processing Facilities

Consensus Building for Arctic Offshore Oil & Gas Drilling

Shell 'Prelude' Floating Liquefied Natural Gas Terminal

Read the latest edition of Energy Digital

The company was split off from Marathon Oil after reported years of frustration in which the refining division reduced the value of the company’s more profitable crude oil and natural gas business.  The split was originally planned for February 2009 according to Marathon Oil CEO Clarence Cazalot; however, the global financial collapse halted plans.

With the recession subsiding, margins on U.S. crude refining operations have nearly tripled as energy demand rises once again.  Marathon Petroleum’s margins are expected to further widen in late 2012 after the completion of a $2.2 billion upgrade to the company’s Detroit, Michigan (USA) refinery.  The project will boost the refinery’s capacity to refine heavy crude from Canada’s oil sands to 100,000 barrels a day from just 20,000 currently. 

Share

Featured Articles

Q&A: ENGIE Impact’s Exec MD for EMEA & APAC Mark Chadwick

Companies must look forward and devise strategies to decarbonise their operations. ENGIE Impact’s 2024 Net Zero report shares their ambitions vs. actions

Mercedes F1 Team first in motorsport to sign Climate Pledge

Mercedes-AMG PETRONAS F1 have become the first motorsport team to sign The Climate Pledge, committing to reach Net Zero carbon emissions by 2040

Onward: Shell Launches Trailblazing Global Climate Tech

Powered by Shell, Onward’s new advisory board includes executives from major global companies including Nike and XPRIZE to accelerate the energy transition

Bechtel & Westinghouse Unite for European Nuclear Power

Renewable Energy

Swedish Power Company Vattenfall Celebrates 115 years

Utilities

Amazon to use Half of Offshore Wind Farm’s Renewable Energy

Renewable Energy