Marathon Petroleum Announces Second Accelerated Share Repurchase Program in 2012
FINDLAY, Ohio, Nov. 5, 2012 - Marathon Petroleum Corporation (NYSE: MPC) today announced that it has entered into a $500 million accelerated share repurchase (ASR) program. This ASR is the second tranche of share repurchases under the $2 billion share repurchase initiative authorized by its board earlier this year. The total number of shares to be repurchased will be based generally on the volume-weighted average price of MPC stock during the repurchase period. Based on the Friday, Nov. 2 closing price of $53.05, the total shares to be acquired under the ASR would represent approximately 2.8 percent of the shares outstanding on Sept. 30, 2012.
MPC President and Chief Executive Officer Gary R. Heminger commented, "MPC's strong cash flow from operations, supplemented by proceeds received from the initial public offering of MPLX LP, provides continued support for our balanced approach of making value-accretive investments in the business and returning capital to our shareholders."
It is anticipated that all market repurchases under the ASR will be completed before the end of the first quarter of 2013. The total value of share repurchases pursuant to the two ASR programs implemented by MPC in 2012 is approximately $1.35 billion, with $650 million remaining under the current board authorization.
About Marathon Petroleum Corporation
MPC is the nation's fifth-largest refiner, with a crude oil refining capacity of approximately 1.2 million barrels per calendar day in its six-refinery system. Marathon brand gasoline is sold through more than 5,000 independently owned retail outlets across 18 states. In addition, Speedway LLC, an MPC subsidiary, owns and operates the nation's fourth largest convenience store chain, with approximately 1,460 convenience stores in seven states. MPC also owns, leases or has ownership interests in approximately 8,300 miles of pipeline. MPC's fully integrated system provides operational flexibility to move crude oil, feedstocks and petroleum-related products efficiently through the company's distribution network in the Midwest, Southeast and Gulf Coast regions. For additional information about the company, please visit our website at http://www.marathonpetroleum.com.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Angelia Graves (419) 421-2703
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, MPC's current expectations, estimates and projections concerning MPC business and operations. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include: volatility in and/or degradation of market and industry conditions; the availability and pricing of crude oil and other feedstocks; slower growth in domestic and Canadian crude supply; completion of pipeline capacity to areas outside the U.S. Midwest; consumer demand for refined products; changes in governmental regulations; transportation logistics; the reliability of processing units and other equipment; our ability to successfully implement growth opportunities; impacts from our repurchases of shares of MPC common stock under the ASR program and our stock repurchase authorization, including the timing and amounts of any common stock repurchases; other risk factors inherent to our industry; and the factors set forth under the heading "Risk Factors" in MPC's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission (the "SEC"). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here or in MPC's Form 10-K could also have material adverse effects on forward-looking statements. Copies of MPC's Form 10-K are available on the SEC website, at http://www.ir.marathonpetroleum.com or by contacting MPC's Investor Relations Office.
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Source: Marathon Petroleum Corporation via Thomson Reuters ONE