Marathon Petroleum Corporation names new CEO

Michael Hennigan, who is the former Midstream Boss, has been named the new CEO of Marathon Petroleum Corporation, effective immediately. He replaces company veteran Gary Heminger, who’s departure was announced in October as part of a sweeping restructuring that included a strategic review of the midstream business MPLX LP and the spinoff of its Speedway retail operation. 

The company will retain the Midstream Division unit despite demands from shareholder Elliott Management to separate it. Billionaire Paul Singer’s Elliott had last year renewed its demand for Marathon to split its business into three separate companies, saying that would boost shareholder value by as much as $40 billion. 

Analysts at Credit Suisse said Hennigan’s appointment could have been the influential factor that made Marathon decide against a ‘transaction-oriented’ conclusion to the review. They added that the decision was the best outcome for MPLX as other alternatives would have been “dilutive” to its shareholders.  

Marathon said separating the unit would have been cash-flow negative to it and would have taken up about $11 billion to $15 billion of resources “that could instead be returned to shareholders”. 

For more information visit www.marathonpetroleum.com

26th March 2020