Murphy Approves Gas Station Spinoff; Roger Jenkins Becomes CEO Aug. 30

by Lance Turner  on Wednesday, Aug. 7, 2013 3:19 pm  

Roger Jenkins, Murphy Oil's executive vice president and COO, will succeed Steven Cossé as president and CEO on Aug. 30.

Murphy Oil Corp. of El Dorado said Wednesday that its board of directors has approved the planned spinoff of its gas station unit into a separate publicly traded company, Murphy USA Inc., which will take place on Aug. 30 after market close.

The spinoff, which has been in the works since late 2011, will take place by way of a stock distribution to Murphy Oil shareholders. The company said those shareholders will receive one share of Murphy USA Inc. common stock for every four shares of Murphy Oil common stock held at the close of business on Aug. 21. 

Shares of Murphy Oil (NYSE: MUR) closed down 1 percent at $69.67 on Wednesday.

"Following the distribution of MUSA common stock on Aug. 30, MUSA will be an independent, publicly traded company," Murphy Oil said in a news release. "MUSA has received approval for the listing of its common stock on the New York Stock Exchange under the symbol 'MUSA.'"

Murphy said investors will be able to trade MUSA stock beginning on Sept. 3, although some trading will begin on the "when-issued" market beginning Aug. 19.

Once the spinoff is complete, the new company will be "a retail marketer of fuel products and convenience merchandise operating a network of 1,179 retail fuel stations" in 23 states. Most of the stations are in close proximity to stores operated by Wal-Mart Stores Inc. of Bentonville.

As previously announced, R. Andrew Clyde will be the new company's president and CEO. In addition to the gas stations, the company will have seven product distribution terminals and two ethanol production facilities in North Dakota and Texas.

Meanwhile, Murphy Oil Corp. of El Dorado will be "an independent exploration and production company with a strong portfolio of global offshore and onshore assets delivering oil-weighted growth with upside to our exploration program," the company said. Murphy Oil Corp. operates in the U.S., Canada and Malaysia.

"Today's announcement signals an exciting new beginning for both Murphy Oil Corp. and Murphy USA Inc., as separating these two businesses will allow each to unlock its own potential for growth," Steve Cossé, Murphy Oil Corp.'s president and CEO, said in a news release.

The company said it will mail an information statement to shareholders entitled to receive MUSA shares before Aug. 30. The information statement will describe MUSA, the risks of owning MUSA common stock, and other spinoff details.

A regular dividend of 31.25 cents per share, or $1.25 per share on an annualized basis, will be payable on Aug. 30 to Murphy Oil shareholders of record as of the close of business on Aug. 21.

Executive Changes

 

 

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