by Lance Turner
Posted 11/5/2012 10:17 am
Updated 2 years ago
Murphy Oil Corp. of El Dorado has told analysts that it's still on track to spin off its Murphy Oil USA gas station unit in 2013, but the company did not say exactly when it will happen.
In a conference call with analysts last week, CEO Steven Cossé said that the new company, Murphy Oil USA Inc., will be composed of 1,150 convenience stores and gas stations, as well as two ethanol plants:
As you know, we recently announced our decision to proceed with the spinoff of the U.S. Downstream business subject to confirmation of its tax-free status and other regulatory approvals. We expect the spin process will be concluded in 2013 and a new company would include all of retail, U.S. retail outlets, currently 1,154 stations, 2 ethanol plants and 7 product distribution terminals. The U.K. Downstream business will remain with Murphy Oil Corp. until the sales process for those assets is complete.
You can read the full transcript of Murphy's call with analysts here. The call came a day after Murphy Oil reported third-quarter earnings from continuing operations of $228.9 million or $1.17 per diluted share, down 34 percent from the same quarter last year.