Marathon Oil To Spin Off Refining, Sales Operations |
| Wall Street Journal - Jan 13, 2011 |
Marathon Oil Corp.'s (MRO) board said Thursday it is moving forward with a long-dormant plan to spin off the company's refining and sales operations, a move that the company's leaders say could make the segments worth more separately than they were combined.
Marathon follows other oil producers and refiners who have stripped assets in attempts to become leaner, more profitable companies. Marathon had planned for such a split when crude oil values peaked more than two years ago, but backed off in February 2009 after the financial crisis made the commodities bubble burst.
"The substantial improvement in the global business and financial environments over the last two years has created the conditions under which we believe it is now appropriate to move forward with the formation of two strong independent energy companies," Marathon chief executive Clarence Cazalot Jr. said in a prepared statement.
The split will see the creation of Marathon Petroleum Corp., expected to be the fifth largest U.S. refiner with six refineries having a combined capacity of 1.1 million barrels a day. The company will be based in Findlay, Ohio, and is expected to trade on the New York Stock Exchange under the symbol MPC. The split is expected to become effective in June 2011.
Read Full Article from Wall Street Journal
- Posted: 2011-01-13 10:19:01
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