Marathon Petroleum Corporation Revises Second-Quarter 2017 Results in Connection with Litigation Settlements
August 03 2017 - 6:41AM
Marathon Petroleum Corporation Revises
Second-Quarter 2017 Results in Connection
with Litigation Settlements
FINDLAY, Ohio, Aug. 3, 2017 - Marathon Petroleum
Corporation (NYSE: MPC) today revised its second-quarter 2017
results to reflect binding settlement agreements related to certain
litigation matters. Under the terms of the agreements reached with
the plaintiffs and co-defendants, who are contractors engaged by
MPC, the company agreed to pay $86 million, subject to requisite
court approvals, in exchange for releases of all claims. As a
result, the company recorded a charge of $86 million, or $0.10 per
diluted share, in the second quarter of 2017 as reported in its
quarterly report on Form 10-Q for the period ended June 30, 2017,
filed with the Securities and Exchange Commission today. The charge
resulting from these settlement agreements reflects an increase
from the estimated charge of $40 million, or $0.05 per diluted
share, reported by the company in its second-quarter 2017 earnings
release on July 27.
The company chose to enter these agreements with
the plaintiffs and co-defendants in order to settle the matters
expeditiously. Further, the company plans to vigorously pursue
recovery of losses, as well as defense costs, through
indemnification from a significant contractor who is not a party to
the settlement agreements.
###
About Marathon Petroleum
Corporation
MPC is the nation's third-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 LLC, an MPC subsidiary,
owns and operates the nation's second-largest convenience store
chain, with approximately 2,730 convenience stores in 21 states.
MPC owns, leases or has ownership interests in approximately 10,800
miles of crude and light product pipelines. Through subsidiaries,
MPC owns the general partner of MPLX LP, a midstream master limited
partnership. Through MPLX, MPC has ownership interests in gathering
and processing facilities with approximately 5.6 billion cubic feet
per day of gathering capacity, 7.8 billion cubic feet per day of
natural gas processing capacity and 570,000 barrels per day of
fractionation capacity. MPC's fully integrated system provides
operational flexibility to move crude oil, NGLs, feedstocks and
petroleum-related products efficiently through the company's
distribution network and midstream service businesses in the
Midwest, Northeast, East Coast, Southeast and Gulf Coast
regions.
Investor Relations
Contacts:
Lisa Wilson (419) 421-2071
Denice Myers (419) 421-2965
Doug Wendt (419) 421-2423
Media Contacts:
Chuck Rice (419) 421-2521
Katie Merx (419) 672-5159
References to
Earnings
References to earnings mean net income
attributable to MPC from the statements of income. Unless otherwise
indicated, references to earnings and earnings per share are MPC's
share after excluding amounts attributable to noncontrolling
interests.
Forward-looking
Statements
This press release includes forward-looking
statements. You can identify our forward-looking statements by
words such as "anticipate," "believe," "design," "estimate,"
"expect," "forecast," "goal," "guidance," "imply," "intend,"
"objective," "opportunity," "outlook," "plan," "position,"
"pursue," "prospective," "predict," "project," "potential," "seek,"
"strategy," "target," "could," "may," "should," "would,"
"will" or other similar expressions that convey the
uncertainty of future events or outcomes. We have based our
forward-looking statements on our current expectations, estimates
and projections about our industry and our company. We caution that
these statements are not guarantees of future performance and you
should not rely unduly on them, as they involve risks,
uncertainties and assumptions that we cannot predict. In addition,
we have based many of these forward-looking statements on
assumptions about future events that may prove to be inaccurate.
While our management considers these assumptions to be reasonable,
they are inherently subject to significant business, economic,
competitive, regulatory and other risks, contingencies and
uncertainties, including uncertainties of litigation, most of which
are difficult to predict and many of which are beyond our control.
Accordingly, our actual results may differ materially from the
future performance that we have expressed or forecast in our
forward-looking statements. In accordance with "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
we have included in our Form 10-K for the year ended Dec. 31, 2016,
cautionary language identifying important factors, though not
necessarily all such factors, that could cause future outcomes to
differ materially from those set forth in the forward-looking
statements. Copies of MPC's Form 10-K are available on the SEC
website, MPC's website at http://ir.marathonpetroleum.com or by
contacting MPC's Investor Relations office.
MPC settlement release
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Marathon Petroleum Corporation via
Globenewswire
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