CVR Energy to acquire 2 oil refineries in Upper Midwest from Marathon
CVR Energy Inc. and Marathon Petroleum Corp. announced Nov. 3 that CVR Energy is acquiring two refineries and related midstream assets in Saint Paul Park, Minnesota, and Mandan, North Dakota, from Marathon and its MPLX subsidiary for $4.2 billion.
The Saint Paul Park refinery has a crude-oil capacity of 105,000 barrels per day (bpd) and the Mandan refinery has a crude-oil capacity of 72,000 bpd.
MPLX’s midstream assets supporting each refinery’s operations include interest in a crude-oil pipeline, storage capacity and three terminals.
The sale of the midstream assets represents a nine-times multiple on forecast 2027 earnings before interest, taxes, depreciation, and amortization (EBITDA).
Marathon said following the transaction it will continue to operate one of the nation’s largest refining systems, with an aggregate crude-oil refining capacity of approximately 2.8 million bpd.
Marathon will receive $3.45 billion for the refining assets, excluding inventory value, and MPLX will receive $750 million for the related midstream assets.
“Ensuring the long-term competitive position of our portfolio is a strategic commitment,” said Maryann Mannen, the chairman, president and CEO of Marathon Petroleum and MPLX. “This divestiture of quality assets in Minnesota and North Dakota advances our strategic priorities of maximizing value creation and meeting our return thresholds. We intend to reinvest this capital primarily in the Gulf Coast and to support MPLX’s growth in the Permian and Marcellus basins.”
Dane Neumann, the president and CEO of CVR Energy, added, “We are thrilled to deliver on our plan to strategically grow and diversify our business. We are acquiring two well-maintained, highly productive refineries from Marathon that have generated more than $1.1 billion of EBITDA for the first nine months of 2026. In light of current favorable market conditions, we expect the acquired business to continue to generate substantial cash flows over at least the next 12 months. Marathon has been an excellent steward of these high-quality assets, and we look forward to welcoming the hardworking employees at these facilities into the CVR Energy family. Looking ahead, with a larger and stronger asset portfolio, we believe CVR Energy is well-positioned to deliver more durable cash flow through the cycle, provide meaningful commercial and operational synergies and significant per share accretion, strengthening CVR Energy’s position while serving as a platform for future growth.”
The transaction is expected to close at the end of 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
CVR Energy said it expects to fund the transaction, including related fees and expenses, from a combination of $2.5 billion of committed secured debt financing, a $500 million equity commitment from its controlling shareholder, an $800 million equity investment from Trafigura U.S. Holdings Inc. and cash on hand.
