Marathon Petroleum To Buy Noco Express' Terminal & Stores
Zacks Investment Research | Apr 14, 2019 10:31PM ET
Marathon Petroleum Corporation (NYSE:MPC) recently inked a definitive purchase agreement with NOCO Incorporated, agreeing to acquire a light-product and asphalt terminal with 900,000-barrel capacity and 33 Noco Express retail stores in Buffalo, New York.
This deal is in line with the Findlay, OH-based refining and marketing company’s Midwest product placement strategy. It complements the company’s prior investments to maximize refinery utilization. The acquisition will also be a boon to its subsidiary, Speedway LLC’s buy off of western New York 78 Express Mart locations. The acquisition of 33 out of NOCO’s 39 stores will further expand the company’s presence in the western New York.
The acquired terminal, located in Tonawanda, is strategically positioned to receive supply from several sources, including the Midwest, Canada. The buyout boosts the company’s integrated platform. The integrated platform of the retail segment enables Marathon Petroleum to capture terminal-to-store margin, bypassing jobbers and wholesale clients.
The company operates the largest refining system in the country. It has more than 3 million barrels per day of crude oil capacity. Its marketing system includes around 7,800 branded locations across the country, including almost 5,600 Marathon-brand retail outlets. Notably, Speedway owns and operates around 4,000 retail convenience stores in the country.
Price Performance
Marathon Petroleum has lost 20.5% in the past year, compared with 20.1% collective decline of the Zacks Investment Research
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