US operator Marathon Petroleum Corp. (NYSE: MPC) has dropped down its joint-interest ownership interest in certain pipelines and storage facilities.
The assets will be sold to MPLX for a total consideration of $1.05 billion.
They include the Explorer Pipeline Co., 24.51% interest, Lincoln Pipeline LLC, (35%) MPL Louisiana Holdings LLC, (40.7%) and LOCAP LLC, (58.52%).
These joint-interest acquisitions are projected to generate approximately $138 million of 2018 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Marathon chairman and chief executive Gary R. Heminger said: “This dropdown of joint-interest ownership will add further scale and diversity to MPLX and represents the latest step in our strategic plan, which is designed to create long-term value for our investors.”
Marathon is contributing the assets in exchange for $630 million in MPLX equity and $420 million in cash.