2/4/16 – 5:22 A.M.
Falling oil prices are slowing some growth plans for Findlay-based MPLX. The Courier reports the company, a subsidiary of Marathon Petroleum, is designed to encourage investment in energy infrastructure. A drop in oil prices has slowed that demand, resulting in MPLX seeing a 38 percent decline in 4th quarter profits.
MPLX is a master limited partnership, meaning it pays no corporate income tax. In exchange the company must pass on the majority of its earnings to shareholders in the form of cash distributions. Because of the decline in profits, Marathon has lowered MPLX’s cash distribution growth rate to 12 to 15 percent for this year. There had been talk about a 25 percent rate.
For all of 2015, MPLX saw profit grow 29 percent, for a total of $156 million for the year. Marathon plans to continue investing in the business. It plans to contribute to MPLX’s inland marine business of tugboats and barges this spring.
MORE: The Courier
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