Published by Todd Bush on March 8, 2023
FINDLAY, Ohio, March 8, 2023 /PRNewswire/ -- Marathon Petroleum Corp. (NYSE: MPC) today announced the acquisition of a 49.9% interest in LF Bioenergy, an emerging producer of renewable natural gas (RNG) in the United States, from Cresta Fund Management for $50 million. The agreement includes the potential for up to an additional $50 million based on the achievement of predetermined earn-out targets.
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LF Bioenergy has been focused on developing and growing a portfolio of dairy farm-based, low carbon intensity RNG projects. Current projects are under various stages of development, with the first facility nearing completion and expected to be in service in the first half of 2023. LF Bioenergy's management and origination teams continue to expand the portfolio with additional sanctioned projects while progressing their existing pipeline of opportunities toward final investment decisions. As specific project milestones are achieved, MPC is expected to fund its share of capital expenditures, building out this portfolio to produce over 6,500 MMBtu per day by the end of 2026.
"This RNG transaction demonstrates our commitment to lower carbon investments," said Dave Heppner, MPC's senior vice president of Strategy and Business Development. "This platform will create the opportunity for further integration and advances MPC's goal to lower the carbon intensity of its operations and the products it offers."
Jones Day acted as legal advisor and Barclays acted as exclusive financial advisor to MPC in connection with this transaction. Weil, Gotshal & Manges LLP acted as legal advisor and Guggenheim Securities LLC acted as financial advisor to Cresta and LF Bioenergy.
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MPC is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
SOURCE Marathon Petroleum Corporation
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