Refiner Marathon Petroleum Corp said it would purchase oil and natural gas company Hess Corp's retail and transport business for $2.87 billion, expanding its network of gas stations and convenience stores along the U.S. East Coast.While Hess has been shedding downstream assets to focus on more profitable shale drilling, the deal offers Marathon a buffer against the volatile refining business by boosting exposure to more stable cash flows from retail. It also provides a guaranteed market for the company's fuel, Marathon's Chief Executive Officer Gary Heminger said on a conference call on Thursday.Marathon Petroleum sells gasoline, food and drinks mainly through 1,480 Speedway convenience stores it owns and operates in nine states in the U.S. Midwest. The deal will create the largest company-owned and operated convenience store chain in the United States, measured by revenue.Marathon also sells its fuel at 5,200 independent retail outlets. Fuel from many refiners is sold by other brands.
Marathon Petroleum Corporation (Marathon Petroleum) is engaged in refining, transporting and marketing petroleum products in the United States. Shares of MPC traded higher by 0.44% or $0.39/share to $88.08. In the past year, the shares have traded as low as $61.32 and as high as $97.70. On average, 3300340 shares of MPC exchange hands on a given day and today's volume is recorded at 2129914.
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