Marathon Petroleum Pushes Back Timing of Speedway Separation
FINDLAY, Ohio — Speedway LLC will not operate as an independent company until 2021.
In a June 15 filing with the Securities and Exchange Commission, Marathon Petroleum Corp. (MPC) said it was postponing the spinoff of its retail network a few months.
"In light of the impacts of the COVID-19 pandemic on market conditions, MPC continues to assess the timeline for the Speedway separation. The initial target for the separation was the fourth quarter of 2020 but has been revised to early 2021," said Molly Benson, MPC's vice president, chief securities, governance and compliance officer and corporate secretary.
"The separation remains subject to final approval by MPC's board of directors, as well as the satisfaction or waiver of certain other customary conditions," she added.
In October 2019, MPC announced it would spin off Enon-based Speedway into an independent company. The decision came after a 10-month strategic review following MPC's tie-up with Andeavor, as Convenience Store News previously reported.
Under the plan, the new Speedway will consist of all of MPC's company-owned and company-operated convenience stores. MPC will retain its direct dealer business, which primarily operates on the West Coast. This separately managed business within the retail segment is only fuel supply with no merchandise sales.
Findlay-based MPC is an integrated downstream energy company. It operates the nation's largest refining system with more than 3 million barrels per day of crude oil capacity across 16 refineries. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets.
Enon-based Speedway is a network of roughly 4,000 convenience stores across the United States.