HOUSTON, Sept. 30 /PRNewswire-FirstCall/ -- Marathon Oil Corporation
(NYSE: MRO) announced today that it has entered into a definitive agreement
with Pilot Corporation under which Marathon will sell its 50 percent
ownership interest in Pilot Travel Centers LLC (PTC) to Pilot Corporation
in a cash transaction valued at $700 million, excluding any purchase price
adjustments due at closing. The companies expect to close the transaction
in October 2008.
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PTC, formed in 2001, operates the largest travel center network in the
United States with more than 275 locations in 40 states and one in Ontario,
Canada. The company also licenses its trademark to 18 locations in four
states. PTC plays an important role in U.S. transportation fuels
infrastructure supplying approximately 10 percent of the on-road diesel
fuel consumed in the U.S. Marathon currently supplies significant volumes
of motor fuels to PTC, and following the sale, the Company expects to
remain one of PTC's key suppliers.
"When Marathon and Pilot Corporation joined together to form PTC in
2001, we had a shared vision of creating the leading travel center network
in the U.S. Through the outstanding relationship we have enjoyed with Pilot
Corporation and its owners, the Haslam family, we have realized that vision
and in the process, created substantial value for both of our companies,"
said Gary R. Heminger, Marathon executive vice president and president of
the Company's refining, marketing and transportation operations.
"Marathon's decision to sell its interest in PTC is part of our ongoing
review of Marathon's global asset portfolio, and is an appropriate time to
capture the value created by this partnership. The sale brings our
announced pretax sales values, including our previously announced sale of
non-core Norwegian assets, to $1.1 billion, which is well on track to
achieve our goal of $2 - $4 billion in gross proceeds by mid-year 2009."
J.P. Morgan Securities Inc. served as Marathon's financial advisor for
this transaction.
Marathon is an integrated international energy company engaged in
exploration and production; oil sands mining; integrated gas; and refining,
marketing and transportation operations. Marathon, which is based in
Houston, has principal operations in the United States, Angola, Canada,
Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United
Kingdom. Marathon is the fourth largest United States-based integrated oil
company and the nation's fifth largest refiner.
This release contains forward-looking statements with respect to the
anticipated disposition of Marathon's ownership interest in Pilot Travel
Centers LLC. Some factors that could adversely affect the anticipated
disposition of this ownership interest include the inability or delay in
finalizing the financing of the transaction and other customary closing
conditions. In accordance with the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, Marathon Oil Corporation has
included in its Annual Report on Form 10-K for the year ended December 31,
2007, and subsequent Forms 10-Q and 8-K, cautionary language identifying
other important factors, though not necessarily all such factors, that
could cause future outcomes to differ materially from those set forth in
the forward- looking statements.
Media Relations Contact: Lee Warren 713-296-4103
Paul Weeditz 713-296-3910
Investor Relations Contacts: Howard Thill 713-296-4140
Chris Phillips 713-296-3213
Michol Ecklund 713-296-3919
SOURCE Marathon Oil Corporation
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Related links:
http://www.marathon.com
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CONTACT:
Media, Lee Warren, +1-713-296-4103, or Paul
Weeditz, +1-713-296-3910, Investor Relations, Howard Thill,
+1-713-296-4140, Chris Phillips, +1-713-296-3213, or Michol
Ecklund, +1-713-296-3919, all of Marathon Oil Corporation
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