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MPLX LP: The Midstream Link in Marathon Petroleum’s Chain

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Apr. 1 2015, Published 6:48 a.m. ET

MPLX LP

MPLX LP (MPLX) is a master limited partnership, or MLP. It was formed by independent refiner Marathon Petroleum Corporation (MPC). The company’s assets include a network of crude oil and refined product pipelines. Its assets also include associated storage assets for both crude oil and refined products located in the Midwest and Gulf Coast regions.

Marathon Petroleum is the fourth largest refiner. It’s the largest refiner in the Midwest. It produces 1.7 million barrels per day, or MMbpd. Its peers in the industry include Valero Energy (VLO) and Phillips 66 Partners (PSX). They also spun off their midstream assets to form MLPs—Valero Energy Partners (VLP) and Phillips 66 (PSXP).

Valero, Phillips 66, and Marathon Petroleum are all part of the iShares Global Energy ETF (IXC). They account for 4% of the ETF.

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Organizational structure

Marathon Petroleum owns 100% of MPLX GP LLC—MPLX’s general partner. It holds 2% general partner interests in MPLX. It also holds the incentive distribution rights. Marathon Petroleum also holds a 69.5% limited partner interest in MPLX. The public holds the remaining 28.5% limited partner interest.

MPLX holds a 99.5% general partner interest in Pipe Line Holdings LP. It owns the Marathon Pipeline and the Ohio River Pipe Line. MPLX also owns MPLX Terminal and Storage. We’ll discuss MPLX’s assets in more detail in the next part of this series.

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