“(Reuters) – Marathon Petroleum Corp said on Monday it has signed a definitive agreement to purchase BP’s Texas City refinery, three intrastate natural gas pipelines and other assets in a deal worth up to $2.5 billion.
Marathon Petroleum’s shares rose to $56.38 in pre-market trading, after closing on Friday on the New York Stock Exchange at $54.87.
The U.S. company said it will also acquire an allocation of BP’s Colonial Pipeline Co shipper history, four terminals, retail marketing contract assignments for approximately 1,200 branded sites, and a 1,040 megawatt cogeneration facility.
The refinery has capacity of 451,000 barrels per calendar day and 475,000 barrels per stream day.
The base purchase price is $598 million, plus inventories estimated at $1.2 billion, Marathon Petroleum said.
The agreement also contains an earnout provision under which MPC could pay up to an additional $700 million over six years, subject to certain conditions.”