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  "documentTitle": "Marathon Petroleum Corporation (MPC)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott Management",
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  "presentationDate": "2016-11-01 00:00:00",
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  "notes": "The slide uses a comparison table to quantify the tax deferral benefit of acting before a regulatory deadline.",
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      "kind": "callout",
      "text": "Net present value benefit of dropping today versus after January is ~$750-900MM assuming 10-15 years of deferral.",
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      "text": "(1) Assumes $1.4 billion of EBITDA dropped at 8.0x with debt financing up to 4.0x net leverage. (2) Assumes $3 billion tax basis in assets, applied pro rata based on percent of assets deemed sold in Section 707 sale. (3) Assumes 10% discount rate to taxes paid in future and 10-15 years of deferral.",
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      "text": "We calculate the net present value benefit of dropping today versus after January at ~$750 – 900MM.",
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      "text": "Marathon should drop its MLP-qualifying assets with a guarantee of collection of acquisition debt before these new regulations go into effect. Doing so would allow a deferral of ~$1.2 billion in taxes on cash proceeds from the sale.",
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      "text": "Marathon can capture a sizable tax benefit from dropping these assets before January 3, 2017 when new disguised sales regulations related to Section 707 go into effect. These new regulations limit the ability to do tax-advantaged debt-financed distributions.",
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      "text": "Net present value benefit: $750-900MM",
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      "text": "Comparison of tax outcomes before and after 1/3/2017",
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      "text": "There Could Be a Material Tax Benefit from Dropping Assets Today Versus Waiting Due to New Tax Regulations",
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