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Marathon Petroleum Sees Up To $250 Mln Loss In Q1; Takes $7.8 Bln Write-down

Marathon Petroleum Corp (MPC) said it now anticipates first-quarter net loss attributable to the company to be in the range of $25 million - $250 million.

The company now expects it will record goodwill impairment expenses between $7.3 billion to $7.8 billion, due to impact of the COVID-19 pandemic and decline in commodity prices.

The company expects to defer or delay certain capital expenditures that it had expected to make in 2020.

The company said it has drawn a total of $3.5 billion under five-year revolving credit facility. The borrowings would provide financial flexibility given the recent commodity price downturn and the significant working capital impact associated with the decline in crude oil prices.

The company is in the process of negotiating a new $1 billion 364-day revolving credit facility, which would expire in 2021, to provide additional liquidity and financial flexibility during the commodity price and demand downturn.

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