Marathon Petroleum Corp's master limited partnership (MLP), MPLX LP, will purchase natural gas processor MarkWest Energy Partners LP for about $15.63 billion, a deal that will create the fourth-largest MLP by market value.The acquisition, which will create an MLP with a market value of $21 billion, will add natural gas processing facilities to MPLX's crude-heavy portfolio.The deal comes less than a month after Energy Transfer Equity's unsolicited $48 billion offer for Williams Cos Inc.Tax-advantaged MLPs have found favor with investors because they pay out most of their cash flow as dividends. To grow their dividends, MLPs use acquisitions to expand their asset base.
Marathon Petroleum Corporation (MPC) is engaged petroleum product refining, marketing, retail and transportation businesses. Shares of MPC traded higher by 2.08% or $1.11/share to $54.49. In the past year, the shares have traded as low as $37.32 and as high as $55.90. On average, 4562180 shares of MPC exchange hands on a given day and today's volume is recorded at 4480025.
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 traded higher by 1.48% or $1.01/share to $69.05. 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 129258.
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 3.05% or $1.77/share to $59.75. 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 947488.