Filling up again

31 October 2019 By Anna Szymanski Follow @Three_Guineas

Paul Singer’s activist shop notched another easy win by coaxing $44 bln oil group Marathon to oust its CEO and spin off its Speedway gas stations. The latter bought Hess’s retail arm in 2014 – after Elliott pushed the firm to slim down. Double dipping makes winning a lot easier.

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Marathon Petroleum said on Oct. 31 that Chief Executive Gary Heminger will leave the company next year when his current term ends. Heminger has been CEO since 2011. The company also said it will spin off its Speedway retail subsidiary and review its midstream pipeline operations.

Activist investors Elliott Management, D.E. Shaw and others have been putting pressure on Marathon to change its structure following the fossil-fuel company’s 2018 acquisition of rival Andeavor. Elliott sent Marathon a letter and presentation requesting structural and governance changes on Sept. 25.

Marathon also announced its third-quarter results on Oct. 30, which beat the mean estimate of sell-side analysts, according to Refinitiv data.

Hess sold its retail and transport business to Marathon for almost $2.9 billion in 2014 following a successful 2013 activist campaign by Elliott.

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