MarkWest Hydrocarbon co-founder opposes Marathon 2017 plan
Marathon Petroleum's board received an open letter from shareholder John M. Fox, the co-founder of MarkWest Hydrocarbon, former CEO, Chairman and Director of MarkWest Energy GP, the general partner of MarkWest Energy Partners and beneficial owner of 1,542,072 MPLX common units, and 15,900 shares of Marathon Petroleum through its merger with MarkWest in 2015 and from follow-on investments. The open letter claims that the accelerated dropdown of refining assets hurts long-term MPC value and vastly diminishes growth prospects at MPLX resulting in increased cost of capital. The letter goes on to state that MPC needs to execute the IDR elimination plan immediately at a fair and transparent price without burdening MPC to $1.4B in annual payments to MPLX from dropdown assets that don't fit the growth profile and are strategic to MPC's refining business. The letter proposes that spinning out MPC's current ownership of 87 million MPLX units, plus the MPLX units received from the IDR elimination to its shareholders, will yield an estimated immediate uplift in value for MPC shareholders ranging between $20-$30 per share.