Refiner Marathon Petroleum Corp will expand into natural gas processing with its $15.6 billion acquisition of MarkWest Energy Partners LP.Marathon Petroleum is buying MarkWest through its pipeline unit, MPLX LP. The cash-and-stock deal will create the fourth-largest master limited partnership - a tax efficient structure - valued at $21 billion.Shares of Marathon Petroleum, which will control the combined company through MPLX's general partner, rose as much as 11 percent to a four-year high of $60.30. MPLX shares fell as much as 18 percent to $56.86. MarkWest unitholders will get 1.09 MPLX units and $3.37 in cash per unit, translating to $78.64 per unit - a 32 percent premium to MarkWest's Friday close.
Marathon Petroleum Corporation (MPC) is engaged petroleum product refining, marketing, retail and transportation businesses. Shares of MPC traded higher by 7.71% or $4.2/share to $58.69. In the past year, the shares have traded as low as $37.32 and as high as $60.38. On average, 4562180 shares of MPC exchange hands on a given day and today's volume is recorded at 10875507.
MPLX LP is a fee-based master limited partnership (MLP) formed by Marathon Petroleum Corporation (MPC) to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon-based products. Shares of MPLX fell by 15.94% or $-11.01/share to $58.04. In the past year, the shares have traded as low as $46.08 and as high as $85.57. On average, 100183 shares of MPLX exchange hands on a given day and today's volume is recorded at 2744335.
MarkWest Energy Partners, L.P. (MarkWest) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. Shares of MWE traded higher by 12.62% or $7.54/share to $67.29. In the past year, the shares have traded as low as $54.04 and as high as $80.79. On average, 899164 shares of MWE exchange hands on a given day and today's volume is recorded at 9578106.