For Investors Only -- This Is Quite Incredible -- Yet Another Spin-Off From the Marathon Family

Remember all the spin-offs from successful sitcoms? Mary Tyler Moore spinning off Rhoda, Lou Grant, and Phyllis?

That thought crossed my mind when I read that MPC is under pressure to spin off its pipeline and logistical assets.

Marathon Petroleum Corp (MPC) the unit that was spun off from Marathon Oil Corp (MRO), announced that it may itself spin off its pipeline and logistical assets sometime in the second half of 2012.

The company, which consists of the downstream operations of Marathon Oil Corp., is under increasing pressure to increase shareholder value, namely by New York-based hedge fund Jana Partners LLC, who currently hold a 5.5% stake in MPC.

Marathon Petroleum Corp. was spun off from the Marathon Oil Corp. last July, taking with it downstream operations. Marathon Oil Corp. maintained all upstream operations in the separation of the two entities. MPC currently operates six refineries in the United States along with roughly 9,600 miles of pipelines and logistical equipment. The company currently has the capacity to refine approximately 1.2 million barrels of crude oil per day. Additionally, it also has a distribution network of a little more than 5,000 outlets (independently owned) in 18 states. Obviously all of this requires an extensive logistical network. It is the 9,600 miles of pipeline and the logistical assets which are under consideration for a separate spin-off into a Master Limited Partnership.

I don't follow MRO or MPC but surfing through the headlines regarding this most recent headline suggests that both MRO and MPC have appreciated nicely since the split (but don't take my word for it; I really don't pay attention to it).  MPC has also announced plans to buy back $850 million in shares.

See disclaimer at the sidebar at the right; this is not an investment site. I don't accumulate shares in Marathon and do not even follow it on a regular basis, except for its activity in the Bakken.

Some of the MTM spin-offs worked; some didn't. It will probably be the same for the MRO spin-offs.