Marathon Petroleum Corp. said on Sept. 27 the company's board supported Gary Heminger staying on as CEO amid calls for his ouster from two top 10 shareholders.
The demand from shareholders Paul Foster and Jeff Stevens comes when Marathon is already under pressure after activist investor Elliott Management Corp. revived its call for the company to be split into three, saying it would boost shareholder value by as much as $40 billion.
Foster and Stevens, who together own about 1.7% of Marathon, agreed with "the majority" of Elliott's proposals, but said an immediate management change was necessary to boost shareholder value.
RELATED: Elliott Renews Demand To Split Marathon Petroleum
Billionaire Paul Singer's Elliott, which owned 0.7% of Marathon as of June 30, according to Refinitiv data, was not immediately available to comment on the investors letter.
Marathon said the board firmly and unanimously supported Heminger, who has been the chairman and chief executive officer since the company separated from Marathon Oil Corp. in 2011.
His membership of the board is due up for shareholder vote in 2020, according to Marathon's 2019 proxy statement. Shareholders had at the 2018 annual meeting rejected a proposal for an independent chairman.
Elliott said its call to separate Marathon's retail, refining and midstream assets was prompted by the company's failure to deliver on past promises and "chronic underperformance.”
The company's shares have fallen 6% this year, compared with a 7.4% gain in the S&P oil and gas refining and marketing index. At the year's low of $43.96 in August, its shares touched 2016 levels.
Marathon has said it would "thoroughly evaluate" Elliott's proposal and was focused on increasing shareholder value.
Another shareholder DE Shaw has backed Elliott's call to split the company, a source familiar with the matter told Reuters on Wednesday. DE Shaw has a stake of about 0.9% in Marathon, according to Refinitiv data.
The Wall Street Journal had earlier reported on the Stevens and Foster's letter to the board.
Exxon Mobil, Steelmaker Nucor Sign CCS Deal
2023-06-02 - Exxon Mobil plans to capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s direct-reduced iron manufacturing plant in Convent, Louisiana.
Passage of Debt Bill Clears Way for MVP, Swifter Permitting for Infrastructure
2023-06-02 - The MVP natural gas pipeline and a swifter permitting process win as debt ceiling legislation weathers resistance from senators.
Hart Energy Exclusive: Can Tidal Energy Power Alaska? [WATCH]
2023-06-02 - In this Hart Energy Exclusive Interview, Hart Energy's Jordan Blum speaks with Tidal Energy Corp.'s CEO Chris Lee about his company's business model and how inflation plays a role in the utilization of marine energy.
Energy Transition in Motion (Week of June 2, 2023): Advancing Projects, Investment
2023-06-02 - Here is a look at some of this week’s renewable energy news, including more than $20 billion in green hydrogen investments in Oman.
Top Private E&Ps in Eastern U.S., GoM
2023-05-24 - Enverus lists the top 10 private E&Ps in the eastern U.S. and the top 5 in the Gulf of Mexico for Hart Energy.