Our Business

Marathon is a supplier of gasoline and distillates to resellers and consumers within our market area in the Midwest, upper Great Plains, Gulf Coast and southeastern regions of the United States.

The wholesale distribution of petroleum products to private brand marketers and to large commercial and industrial consumers and sales in the spot market accounted for 69 percent of our refined products sales volumes in 2007. We sold 49 percent of our gasoline volumes and 89 percent of our distillates volumes on a wholesale or spot market basis.

Half of our propane is sold into the home heating market, with the balance being purchased by industrial consumers. Propylene, cumene, aromatics, aliphatics and sulfur are domestically marketed to customers in the chemical industry. Base lube oils, maleic anhydride, slack wax, extract and pitch are sold throughout the U.S. and Canada, with pitch products also being exported worldwide.

We market asphalt through owned and leased terminals throughout the Midwest, upper Great Plains, Gulf Coast and southeastern regions of the U.S. Our customer base includes approximately 750 asphalt-paving contractors, government entities and asphalt roofing shingle manufacturers.

We have blended ethanol with gasoline for more than 15 years and increased our blending program in 2007, in part due to renewable fuel mandates. The future expansion or contraction of our ethanol blending program will be driven by the economics of the ethanol supply and changes in government regulations. We sell reformulated gasoline in parts of our marketing territory, low-vapor-pressure gasoline in nine states, and biodiesel in Minnesota, Illinois and Kentucky.

As of December 31, 2007, we supplied petroleum products to about 4,400 Marathon branded-retail outlets. Sales to Marathon-brand jobbers and dealers accounted for 16 percent of our refined product sales volumes in 2007.