OREANDA-NEWS. Marathon Petroleum Corporation (NYSE: MPC) today reported 2014 third-quarter earnings of USD 672 million, or USD 2.36 per diluted share, compared with USD 168 million, or USD 0.54 per diluted share, for the third quarter of 2013. Third-quarter 2014 earnings included pretax pension settlement expenses of USD 21 million, compared with USD 23 million for the third quarter of 2013.

"The efficiency and flexibility of our integrated downstream system enabled us to continue capturing opportunities in the markets we serve," said President and CEO Gary R. Heminger. "Our ability to quickly adjust and direct refined products to the markets of greatest value has served consumers and MPC shareholders well."

"MPC's retail subsidiary, Speedway LLC, achieved outstanding performance during the quarter while preparing for the acquisition of Hess' retail operations, which closed on Sept. 30," Heminger said. "Speedway's consistent ability to generate strong merchandise margins provides great synergy with the fuel volumes and margins of the acquired Hess locations. We believe we will deliver sustained value from these synergies, and we welcome our new employees as we begin serving our customers in these new markets. This retail acquisition also has expanded our strategic options as planning for our midstream business continues to evolve." Speedway now owns and operates approximately 2,740 stores in 22 states.

Turning to midstream operations, Heminger said MPC plans to substantially accelerate the growth of MPLX LP (NYSE: MPLX), the master limited partnership sponsored by MPC. MPLX is expected to provide unitholders an average annual distribution growth rate percentage in the mid-20s over the next five years. By the end of 2015, MPLX expects to triple its annualized run-rate earnings before interest, taxes, depreciation and amortization (EBITDA) versus third-quarter 2014 annualized run-rate EBITDA. Heminger said this increased scale better positions MPLX to grow through organic projects, continued drop-downs and potential third-party acquisitions. In support of this plan, the MPC board of directors has authorized the sale of MPC's remaining 31 percent interest in MPLX Pipe Line Holdings LP to MPLX.

"We believe MPLX's long-term growth profile represents substantial value to MPC shareholders through our general partner interest, the incentive distribution rights and the potential for meaningful proceeds from asset sales to MPLX," said Heminger. "The opportunities for drop-downs of MPC's existing midstream assets, along with organic investments at MPC and MPLX, enable both MPC and MPLX to continue to participate in the energy infrastructure development taking place in the U.S., as well as allow for continuing capital returns to our owners." Heminger pointed out that MPC acquired USD 301 million of its own shares and paid USD 141 million in dividends during the quarter.

"MPC shareholders now own the largest refining, logistics and retail systems east of the Mississippi," Heminger concluded. "Our successful retail segment has almost doubled in size and our midstream assets are positioned to grow along with North American energy production. Our seven-plant refining system is characterized by top-tier assets located in attractive geographic markets. The investments we are making in MPC are consistent with our strategy of growing our higher-valued, stable cash-flow businesses while enhancing our refining margins. The company is well-positioned for continued value creation."