Garyville Major Expansion

The Garyville Major Expansion (GME) demonstrates Marathon's ability to capture value from its integrated Downstream refining, marketing and transportation system. Garyville is the Company's most profitable refinery and one of the most efficient in the U.S., with crude processing capacity of 436 thousand barrels per day (mbpd), up from 256 mbpd. It is now the fourth-largest refinery in the U.S. The expansion is expected to provide substantial future cash flow to Marathon.

Completed on time, the refinery expansion is designed to use a wide variety of feedstocks and primarily produce high-value, high-margin gasoline and diesel. GME positions Marathon to benefit from the increased diesel demand that historically accompanies an economic recovery. GME also gives the Company the option to produce jet fuel to take advantage of market dynamics, to export diesel fuel and to shift asphalt production to other Marathon refineries.

While Garyville's operating efficiencies were already among the best in the industry, the expansion is expected to further reduce the refinery's fixed cash cost per barrel by an estimated 20 percent.

Garyville enjoys strategic logistical advantages for importing crude from anywhere in the world and distributing its refined products globally. Cost-effective regional pipeline, river and Gulf of Mexico transportation options give Marathon ready access to feedstocks and the flexibility to transport product to the highest value markets. And with Garyville's strategic location, the Company can tap increasing production from the Gulf of Mexico at a lower cost than Texas-based refiners.

To operate the state-of-the-art GME, Marathon hired and trained 200 new employees two years in advance. With the expansion complete, Garyville currently has 770 employees and 430 contract employees working at this refinery.