CVR Energy Agrees to Buy Two Marathon Refineries for $4.2 Billion

CVR Energy has signed a definitive agreement to buy two refineries and a related marketing business from Marathon Petroleum for about $4.2 billion, the companies announced on November 3.

The deal covers two Upper Midwest refineries. CVR is acquiring the 105,000 barrel-per-day St. Paul Park refinery in Minnesota and the 72,000 barrel-per-day Mandan refinery in North Dakota, along with a marketing business that supplies up to 590 branded locations. Marathon said it will receive $3.45 billion for the refining assets, while its midstream affiliate MPLX gets $750 million for related pipeline, storage and terminal assets.

CVR's capacity nearly doubles. CVR says the deal lifts its crude throughput capacity from about 207,000 to about 384,000 barrels per day. It plans to fund the purchase with $2.5 billion of committed secured debt, a $500 million equity commitment from its controlling shareholder, an $800 million equity investment from Trafigura, and cash on hand.

Closing is targeted for year-end. Both companies expect the deal to close at the end of 2026, subject to customary conditions including Hart-Scott-Rodino antitrust clearance.