Marathon Petroleum Corporation Revises Second-Quarter 2017 Results in Connection with Litigation Settlements

Marathon Petroleum Corporation Revises Second-Quarter 2017 Results in Connection with Litigation Settlements

 

FINDLAY, Ohio, Aug. 3, 2017 - Marathon Petroleum Corporation (NYSE: MPC) today revised its second-quarter 2017 results to reflect binding settlement agreements related to certain litigation matters. Under the terms of the agreements reached with the plaintiffs and co-defendants, who are contractors engaged by MPC, the company agreed to pay $86 million, subject to requisite court approvals, in exchange for releases of all claims. As a result, the company recorded a charge of $86 million, or $0.10 per diluted share, in the second quarter of 2017 as reported in its quarterly report on Form 10-Q for the period ended June 30, 2017, filed with the Securities and Exchange Commission today. The charge resulting from these settlement agreements reflects an increase from the estimated charge of $40 million, or $0.05 per diluted share, reported by the company in its second-quarter 2017 earnings release on July 27.

The company chose to enter these agreements with the plaintiffs and co-defendants in order to settle the matters expeditiously. Further, the company plans to vigorously pursue recovery of losses, as well as defense costs, through indemnification from a significant contractor who is not a party to the settlement agreements. 

###

About Marathon Petroleum Corporation
MPC is the nation's third-largest refiner, with a crude oil refining capacity of approximately 1.8 million barrels per calendar day in its seven-refinery system. Marathon brand gasoline is sold through approximately 5,600 independently owned retail outlets across 19 states. In addition, Speedway LLC, an MPC subsidiary, owns and operates the nation's second-largest convenience store chain, with approximately 2,730 convenience stores in 21 states. MPC owns, leases or has ownership interests in approximately 10,800 miles of crude and light product pipelines. Through subsidiaries, MPC owns the general partner of MPLX LP, a midstream master limited partnership. Through MPLX, MPC has ownership interests in gathering and processing facilities with approximately 5.6 billion cubic feet per day of gathering capacity, 7.8 billion cubic feet per day of natural gas processing capacity and 570,000 barrels per day of fractionation capacity. MPC's fully integrated system provides operational flexibility to move crude oil, NGLs, feedstocks and petroleum-related products efficiently through the company's distribution network and midstream service businesses in the Midwest, Northeast, East Coast, Southeast and Gulf Coast regions.