MWE

By Anne Steele 

Marathon Petroleum Corp. on Tuesday boosted its one-time cash consideration for MarkWest Energy Partners LP again as it looks to seal the deal.

The cash portion of the deal is $6.20 per unit for MarkWest shareholders, up from the boosted $5.21 per unit offer made Nov. 10. The initial July 13 offer was about $3.37 per unit, but shares of Marathon's pipeline operator MPLX, used as deal currency, have fallen about 40% since the stock's close that day.

Under the revised terms of the merger agreement, which Marathon said was its "best and final offer," MarkWest common unit holders will receive about $1.28 billion in total cash consideration and 1.09 MPLX common units per MarkWest share, for a total consideration of about $51.74 per MarkWest share, based on MPLX's Nov. 16 closing price. The deal, which is expected to close in December, is valued at about $10.65 billion.

The deal will marry Marathon's oil pipeline network with MarkWest's business separating natural gas into fuels such as propane and ethane. These partnerships, which typically own infrastructure like pipelines that earn steady revenue from long-term contracts, have fared better than traditional drilling companies during the energy downturn but still have faced headwinds.

Write to Anne Steele at Anne.Steele@wsj.com

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(END) Dow Jones Newswires

November 17, 2015 08:21 ET (13:21 GMT)

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