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.

The spinoff means a new publicly traded company in El Dorado, which is also home to a previous Murphy Oil spinoff, Deltic Timber Inc. 

The move also means a new president and CEO for Murphy Oil Corp. On Aug. 30, Roger Jenkins will take over chief executive of the company. Cossé has been president and CEO of Murphy Oil Corp. since June 2012, following the sudden departure of former CEO David Wood. Murphy Oil announced in May that Jenkins would take over as CEO once the spinoff of the gas station operation was complete.

"We owe a debt of gratitude to Steve for his leadership over the last year as we transitioned both our upstream and downstream businesses," Claiborne Deming, chairman of Murphy Oil board and a former company CEO, said in a news release. "The Board looks forward to working with Roger as he leads us into a new phase as an independent exploration and production company."

After the Spinoff

"Separating these two businesses will allow each to unlock its own potential for growth. We have built two strong but distinct businesses," Deming said when the company officially announced plans for the spinoff in October.

"Murphy will be a pure-play exploration and production company with strong returns and attractive investment opportunities, while Murphy USA will be a leading retailer with over 1,100 retail gasoline outlets. Given its existing positioning in the market, I am confident that Murphy USA will continue to grow the business and drive shareholder value."

Former CEO David Wood discussed the possible spinoff throughout early 2011, but resigned before any action was taken. At least one hedge fund, Third Point LLC of New York, had been pressuring the company to spin off its retail gas station unit.

Also Wednesday, Murphy Oil announced the election of T. Jay Collins to its board of directors. Collins is a director on the board of Oceaneering International Inc., a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry. Collins retired as president and CEO of that company in May 2011.

J.P. Morgan Securities LLC and Stephens Inc. of Little Rock acted as financial advisors to Murphy Oil on the spinoff. Davis Polk & Wardwell LLP acted as legal advisor.

 

 

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