Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Marathon Jumps On Plan to Buy $10 Billion of Its Shares

Published 14/05/2021, 18:49
Updated 14/05/2021, 18:49
© Reuters

© Reuters

By Dhirendra Tripathi

Investing.com – Marathon Petroleum (NYSE:MPC) shares rose more than 4% Friday following the company’s decision to use cash from the sale of its Speedway fuel retail chain to repurchase $10 billion of its stock.

The oil refiner today said it has completed the $21 billion sale of Speedway to 7-Eleven, a wholly owned, indirect subsidiary of Seven & i Holdings.

After tax, the company stands to net $16.5 billion from the sale.

Marathon has $2.9 billion remaining in a previously authorized repurchase plan. Its board has declared an additional $7.1 billion buyback program, bringing the size of the yet-to-be-completed exercise to $10 billion

Marathon will initiate a $4 billion buyback exercise in a range of $56 to $63 per share. This will equal 10% of its current market capitalization.

Once completed, it will execute the remaining repurchase over 12 to 18 months, the company said.

Other than the $10 billion buyback plan, Marathon will use $2.5 billion from the sale to bring down long-term debt.  

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.