Marathon to separate Speedway, strategically reviews midstream business

Marathon Petroleum (MPC) intends to separate Speedway into an independent, publicly-traded company, it said in a press release. Speedway will consist of Marathon’s company-owned retail store operations with expected earnings of $1.5 billion. As part of the separation process, Marathon will search for a Speedway CEO from both internal and external sources.

"Today's announcement to separate Speedway will create a new independent company that is well-positioned to achieve sustained growth and create substantial shareholder value," said MPC Chairman and Chief Executive Officer Gary R. Heminger.

Furthermore, the company will form a special committee of the board, to be led by Director J. Mike Stice, to enhance its evaluation of potential value-creating options for the midstream business. This board committee will analyze the strategic fit of assets with MPC, transaction tax impacts, separation costs, and overall complexity, Marathon announced.