Marathon Petroleum Corp. announced August 2 that it would sell its Speedway gas station business to 7-Eleven Inc. for $21 billion in an all-cash transaction. The deal includes a 15-year fuel supply agreement for approximately 7.7 billion gallons per year associated with Speedway, the Findlay, Ohio-based energy company said.
The transaction is expected to close in the first quarter of 2021, subject to the usual closing conditions.
The sale announcement preceded Marathon’s Monday release of its second-quarter earnings report, which painted a grim picture. Net income for the second quarter of 2020 was $9 million, compared with $1.1 billion for the same quarter a year ago.
“Our second-quarter results reflect a full three months of the challenges COVID has created for our business,” said President and CEO Michael J. Hennigan in a statement. “We began April with demand at historic lows. Despite seeing some recovery during the quarter, demand for our products and services continues to be significantly depressed, particularly across the West Coast and Midwest."
In the face of the challenges faced by energy companies, Marathon also reported that it would indefinitely idle two refineries, and consider repositioning one as a renewable diesel facility.
