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  "docSlug": "30650a8e606d",
  "documentTitle": "Marathon Petroleum Corporation (MPC)",
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  "authorName": "Elliott Management",
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  "presentationDate": "2016-11-01 00:00:00",
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  "notes": "Includes a scatter plot showing 2017 LP Yield vs 2017-2020 LP Distribution CAGR for peer MLPs.",
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      "text": "IDR Simplification increases LP distribution growth from 5% to 7.5% based on the low end of company growth capex guidance on top of a 13+% increase in distributions over 2016. Given this growth, comps imply a ~6.7% yield.",
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      "text": "IDR Simplification at a 250 bps premium to the LP yield undervalues the GP by ~$2 billion. However, there are substantial merits to the transaction.",
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      "text": "Public MLP Comps-Implied Valuation scatter plot",
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      "text": "MPLX will have the lowest cost of capital possible which could result in a premium valuation and increased opportunities for value-creating transactions. Marathon will recoup a substantial amount of any value lost as it will be a large holder of LP units after the drops and the IDR conversion. Marathon receives no value for its GP today. The simplification provides a clear valuation marker in the form of publicly traded securities.",
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      "text": "GP Valuation: $11,851",
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      "kind": "paragraph",
      "text": "Converting the IDRs to LP units on similar terms as precedent transactions would result in Marathon taking back 360MM additional LP units. While it may transfer value to LP unitholders, merits to Marathon include:",
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      "kind": "source-note",
      "text": "(1) Additional MPLX equity issuance for IDR simplification done at current MPLX unit price, assuming no change from 11/18/16 close. (2) MLP distribution growth based on consensus estimates for 2017-2020; includes logistics and G&P MLPs >$5 billion market cap.",
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      "text": "GP Valuation for IDR Simplification metrics including LP Distribution, Unit Price, Yields, and Valuation.",
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      "kind": "title",
      "text": "IDR Simplification Would Likely Transfer Value to LP Unitholders, But Lowers Cost of Capital and Provides Public Marker of GP Value",
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