By LOU WILIN
Profit rose 19 percent last quarter to $503 million for MPLX, the logistics, storage and natural gas processing subsidiary of Marathon Petroleum Corp.
Earnings amounted to 61 cents per unit in the January-March quarter.
In addition, MPLX reported Wednesday that it plans to buy Andeavor Logistics, a subsidiary of Andeavor.
Marathon Petroleum Corp., last fall bought Andeavor, the parent company of Andeavor Logistics. That $23.3 billion purchase made Marathon Petroleum the largest refiner in the United States and fifth-largest worldwide. The purchase took Marathon from six refineries in the Midwest and Gulf regions to 16 across the United States.
MPLX and Andeavor Logistics have entered into an agreement in which MPLX will buy Andeavor Logistics, or ANDX, in a unit-for-unit exchange.
“The combined entity will have an expanded geographic footprint with enhanced long-term growth opportunities,” said Gary R. Heminger, chairman and chief executive officer of MPLX.
“We are confident about the midstream growth and value-creation opportunities that exist across this combined platform in the best basins in the U.S.,” Heminger said.
For the January-March quarter, MPLX’s revenue climbed 16 percent to $1.65 billion.
Over 90 percent of MPLX’s revenue is fee-based. It charges fees to oil producers and others to use its pipelines and other transportation and storage assets. That means it has less risk than refiners or producers when commodity prices swing.
Operating profit for MPLX’s logistics and storage segment increased 25 percent from a year earlier to $480 million.
Operating profit from gathering and processing natural gas rose 15 percent to $198 million.
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