Marathon Petroleum (MPC) Responds to Elliott Management Letter; Also Sees Upside to Valuation
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Marathon Petroleum Corporation (NYSE: MPC) issued the following statement regarding the letter and presentation released by Elliott Management to MPC’s Board of Directors.
“We have a history of engaging with shareholders on the important issues facing our company and have always considered their views objectively,” said Gary R. Heminger, MPC’s chairman, president and chief executive officer. “We agree with Elliott Management that there is upside to our valuation, which we are addressing with the value-creating actions we announced last month, but we disagree with their letter and presentation.”
“On October 27, we announced several sound, aggressive actions, including a schedule of substantial dropdown transactions to MPLX designed to support continued strong distribution growth of MPLX and drive value back to MPC. As discussed with Elliott, there are tax and other impediments to an immediate dropdown of all the assets to MPLX. In addition, we are evaluating strategic opportunities to highlight and capture the value of MPC’s general partner interest in MPLX and optimize the cost of capital for MPLX. We also are assessing changes to our segment reporting structure related to our midstream assets.”
“We have delivered substantial value through our integrated and diversified model, including our Speedway retail business with its best-in-class EBITDA per store. MPC has generated total shareholder return of 140% since our spinoff (vs. 86% for S&P 500).i We have returned over $10 billion to shareholders and tripled our stable cash flows.”
Heminger concluded: “MPC has a strong and longstanding track record of taking aggressive actions to increase shareholder value. We are confident our plan will deliver substantial shareholder value and we are moving ahead expeditiously on each of these actions.”
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Corning (GLW) Approves New $4B Stock Buyback Program
- Nu Skin Enterprises (NUS) CEO Hunt to Depart in mid-2017; Transition Plan Announced
- GNC Holdings (GNC) Says It's Pleased with DOJ Agreement
Create E-mail Alert Related CategoriesCorporate News, Hedge Funds, Management Comments
Related EntitiesStandard & Poor's, Crude Oil, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!