Two activist investors in Marathon Petroleum say there is now broad-based shareholder support for immediate changes. Company announced that it has completed three separate transactions. Company announced today that it sent an irrevocable notice of early redemption. Marathon Oil, through its wholly owned subsidiaries, is the operator and majority shareholder of the integrated gas. The company including the resignation of chairman and CEO Gary Heminger. Company announced its 2019 capital expenditure budget in addition to its fourth quarter and full-year 2018 financial results.
Company have discussed their concerns with more than 100 investors representing about half of the institutional shareholder base. Company announced that Douglas L. Foshee and M. Elise “Lisa” Hyland have been elected to the Company’s board of directors. There is substantial support for many of the solutions we have been advocating for. The price to the public for the 2027 Notes is 99.634 percent of the principal amount. The conversations have not only led to conclude that the vast majority of major stockholders share company concerns.
Pair says “Gary Heminger resign immediately from his chairman and chief executive roles”.
Company announced that it has closed the acquisition of approximately 21,000 net surface acres in the Northern Delaware basin. Company said the Marathon Petroleum shareholders they have spoken to agree that the board must immediately modernize its corporate governance. The accelerating activity and production growth in Oklahoma and the Bakken. It’s more transparent in its financial disclosures and reporting, and adopt various elements. The Notes will be redeemed at a redemption price equal to the greater of (i) 100% of the principal amount.
What is more telling, however, is that company found there is overwhelming support for our calls. The 2019 plan and 2018 financial and operating results together reflect the Company’s ongoing commitment. The Company intends to use the net proceeds from the offering plus existing cash on hand. The effective date of this transaction is March 1, 2017. Combined with the acquisition from BC Operating. The board is having its own candid and direct discussions with stockholders. Total capital budget includes approx. $2.4 billion of development capital.
The offering and redemption of the Senior Notes will result in a reduction in total gross debt of approximately $750 million. It have no doubt that company hearing similar feedback. On May 31, the Company closed on the sale of its Canadian subsidiary to Shell. The returning to sequential growth in U.S. resource plays in 2Q2017. The company, based in Findlay, Ohio, accused the pair of making misleading comments. These are proven integrated gas assets with high reliability and low capital demands. It said it continues its strategic review and has yet to reach a conclusion on how to proceed.
Company together will further strengthen the balance sheet and generate annualized cash cost savings. Company scheduled payments of principal and interest on the Notes to be redeemed. It included Foster and Stevens, to hear their feedback. Company welcome Doug and Lisa to Marathon Oil’s board of directors. claims about the level of shareholder support for the company and management are inconsistent. The Company entered into a Fourth Amendment to its Amended and Restated Credit agreement. It will utilize available processing capacity not required by the Alba field.
Each bring strong industry experience with unique perspectives, demonstrated leadership. The Company terminated a notional amount of $750 million in interest rate hedges. The Organic free cash flow positive above approx. $45/bbl WTI, post-dividend. Foshee, 58, is the founder and owner of Sallyport Investments. Marathon Petroleum shares were little changed at $65.81 at 10:02 a.m in New York. Foshee previously served as chairman, president and chief executive officer of El Paso Corporation. The Company closed a remarketing to investors of sub-series A bonds.
Foster and Stevens were board members at Andeavor. Foshee worked for Halliburton Company in various roles including executive vice president and chief operating officer. The Company recently extended the maturity of its undrawn revolving credit facility by one year to 2021. Marathon Oil received proceeds of approximately $1.75 billion, with the remaining proceeds to be paid in first quarter 2018. The refiner bought by Marathon Petroleum last year for about $22 billion. The Company will continue to own the remaining $400 million of the 2017 Bonds.
They went public last month with their call for Heminger to resign. Foshee holds an MBA from Rice University and a bachelor’s degree from Southwest Texas State University. The Company expects to receive the remaining proceeds of approximately $750 million from the sale. The Canadian sale includes the Company’s 20 percent non-operated interest in the Athabasca Oil Sands Project (AOSP). Marathon’s shares have fallen 8.6% in the past year, compared with a 10% gain for Standard. The Company closed the early redemption of its $600 million 2.7% Senior Unsecured Notes due 2020.
Stevens declined in an interview at the time to name his top pick for Heminger’s replacement. The offering is expected to close on July 24, 2017, subject to customary closing conditions. Also last month, Elliott, owns a 2.5% stake in Marathon Petroleum. The significant cash flow generation expected from Eagle Ford and E.G. It renewed to push for it to split into three separate companies in a move the investment firm claims. The press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities.
Foster and Stevens says “We value dialogue with our shareholders and have talked with many investors in recent weeks”.
Another activist, D.E. Shaw & Co., also has been pushing for the company to find ways to improve value. The designed to generate meaningful organic free cash flow at $50/bbl WTI, post-dividend. It is being underwritten by J.P. Morgan Securities LLC, Citigroup Global Markets Inc. The activists met with members of the Marathon board last week to discuss the company’s strategy. The Company’s next debt maturity will be its $1 billion 2.8% Senior Unsecured Notes due in 2022. The expect to achieve growth rates within cash flows, inclusive of dividends.
Marathon Petroleum aims to reach a decision on how to proceed before reporting third-quarter results on Oct. 31. The press release contains forward-looking statements within the meaning of Section 27A. It Continue to prioritize sustainable free cash flow and return of capital to shareholders. The offering is being made only by means of a prospectus supplement and accompanying prospectus. It firmly believe that the collective concerns of Marathon’s stockholders cannot be addressed through incremental actions. The development also supports a thriving Equatorial Guinea gas industry. The changes needed with respect to governance, strategy and, most importantly, leadership.