MPC Allots Speedway $400M Capital Budget for 2016
FINDLAY, Ohio — Speedway LLC will be getting nearly $400 million next year as part of its parent company's 2016 capital investment plan.
At its analyst and institutional investor meeting on Thursday, Speedway parent Marathon Petroleum Corp. (MPC) revealed a 2016 capital investment plan of $4.2 billion. The plan includes $1.5 billion for MPC's refining and marketing segment; nearly $400 million for Speedway, MPC's retail subsidiary; and $2.2 billion for MPC's pipeline transportation segment, which includes $1.7 billion for MPLX LP, a growth-oriented master limited partnership formed by MPC.
Speedway's nearly $400-million capital budget is focused on store remodels, particularly remodels of its recently converted stores along the East Coast, and building new locations in the chain's core markets.
"We continue to focus on investing in our more stable cash-flow-generating midstream and Speedway businesses, as well as pursuing margin-enhancing projects in our core refining and marketing business," said Gary R. Heminger, MPC President and CEO. "Our capital allocation will enable us to continue executing on this commitment and drive long-term value for our investors."
MPC's refining and marketing segment's capital plan of $1.5 billion includes approximately $350 million for midstream investments, approximately $475 million for margin-enhancing projects, and approximately $675 million for refinery-sustaining capital.
The $2.2 billion allocated to MPC's pipeline transportation segment includes $1.7 billion for MPLX. The largest component of the MPLX investment plan — more than $1.2 billion — is attributed to MarkWest's ongoing development of natural gas and gas liquids infrastructure to support its producer customers throughout the Southwest and Northeast regions, particularly in the Marcellus and Utica shales.
Findlay-based MPC is the nation's fourth-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 owns and operates the nation's second largest company-operated convenience store chain, with approximately 2,760 convenience stores in 22 states.