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Marathon beats third-quarter estimates, to sell two refineries to CVR Energy

By Reuters News

Nov 3 (Reuters) - Marathon Petroleum MPC.N beat Wall Street estimates for third-quarter profit on Tuesday and agreed to sell its St. Paul Park refinery in Minnesota and Mandan refinery in North Dakota, along with related midstream assets, to Carl Icahn-controlled CVR Energy CVI.N for $4.2 billion.

The Iran war has disrupted oil flows through the Strait of Hormuz, while attacks on energy infrastructure across the Middle East and Russia have tightened global fuel supplies, pushing up prices of refined products relative to crude.

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The resulting surge in refining margins has boosted the profitability of processing assets, creating an attractive opportunity for Marathon to monetise its refineries and for CVR to expand its operations amid a strong earnings environment.

Marathon's quarterly refining and marketing margin rose to $45.70 per barrel from last year's $17.60 per barrel.

The top US refiner posted an adjusted profit of $26.93 per share for the three months ended September 30, compared with the average analyst estimate of $24.47 per share, according to data compiled by LSEG.

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