Marathon Petroleum Corp. has entered into a definitive agreement to sell its Speedway gas stations to 7-Eleven for $21 billion in cash.
The transaction is expected to close in the first quarter of 2021.
The deal is anticipated to result in after-tax cash proceeds of approximately $16.5 billion, which Marathon Petroleum said it expects to use to both repay debt to protect its investment-grade credit profile and return capital to shareholders.
On July 31, Marathon Petroleum said it had informed employees at its Martinez, Calif., and Gallup, N.M., refineries that it will indefinitely idle the facilities with no plans to restart normal operations. Martinez will be converted to a terminal facility and the repositioning of Martinez to a renewable diesel facility is being evaluated.
The company operates the United States’ largest refining system with more than 3 million barrels per day of crude oil capacity across 16 refineries. The company said it had net inc