ConocoPhillips, Nation's Third-Largest Oil Company, To Split In Two

(AP) NEW YORK -- ConocoPhillips, the nation's third-largest oil company, said Thursday that it will split itself into two separate publicly traded companies and its CEO and Chairman Jim Mulva plans to retire once the transaction is complete.

Its shares jumped $3.60, or 4.8 percent, to $78 in premarket trading.

"We have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies," Mulva said in a statement.

Conoco's announcement comes on the heels of the breakup of Marathon Oil first announced in January. On July 1, Marathon Petroleum Corp., the refining company, began trading on the New York Stock Exchange under the "MPC" ticker symbol. Marathon Oil Corp. kept its ticker symbol of "MRO."

Conoco said its board has approved separating its refining and marketing and exploration and production businesses by spinning off the refining and marketing segment to shareholders in a tax-free transaction.

The split, which is expected to be completed during the first half of next year, will leave Conoco as an exploration and production company.

Mulva will lead the separation efforts, but plans to retire once the split is complete.

Conoco said its separation plans do not require a shareholder vote. It expects to provide further details on the transaction "as they are determined over the next several months."

The Houston-based company has about 29,600 employees. Conoco had $160 billion of assets and $226 billion of annualized revenue as of March 31.

Comments

[Counterintuitive]

11:24 AM on 07/15/2011

Don't split it, Nationalize it. The only way to stop Climate Denial is to Defund it.

[glassbender]

10:08 AM on 07/15/2011

this just means the right hand will sell to the left hand at a higher price, that WE will have to pay for fuel, and shareholders, get a tax free income, on top of a goverment handout thanks to the GOP 'what a country'

[econ1]

01:42 PM on 07/14/2011

That's one way to get out of being one of the "Big Oil" companies.

If all the oil companies did similar splits there would be no one to complain about in Congress.

[hpblue5011]

06:54 PM on 07/14/2011

But think about it, this just means there will be more, higher paid office workers, because now we will have two oil company presidents instead of one.

[econ1]

11:18 AM on 07/15/2011

Well at least there will be more jobs.

[Bike Commuter]

11:56 AM on 07/14/2011

If I remember correctly Phillips has looked at doing this a couple of times, even before they merged with Conoco. It is usually related to oil and gasoline prices (supply and demand). When costs are higher (high demand) they want to split the sales side off because it is less profitable. But, when costs are lower (excess supply) they like to have the dedicated company sales outlets because it means they always have a sales stream for their product. If they are really going to split off this time, then that means they believe costs are going to stay up (unlike, for example, in 2006 when demand went back down and the price bubble popped).

[KarlaElisa]

12:13 PM on 07/14/2011

we are at or very close to the top of the bell curve on peak oil. prices are not going to drop. they know what's coming and this will allow them to better downsize while continuing to crank out a good income for those top dogs.

everything about this world is tied to oil and an economic system that MUST grow or collapse in upon itself. we're in pretty sad shape.

[Bike Commuter]

12:31 PM on 07/14/2011

The price is not just about peak oil. It is about demand. If the demand goes down enough, like it did a few years ago, then the price will go down. Not everything has to be tied to oil (in fact, not everything is). When we tie to oil it is because it has been convenient to do so. When that stops being convenient, it will change.

[rdk70816]

10:29 AM on 07/14/2011

Exxon/Mobil was going to do the same thing. Don't know what happened.

[Kathleen Riley-Daniels]

10:27 AM on 07/14/2011

My family lived in Tulsa (they called it "the oil capital of the world" then) years ago and I recall one of the oil men telling me "that's the smell of money" when I mentioned the stink factor...

[JScott]

10:26 AM on 07/14/2011

So it'll be Phillips 66 AGAIN instead of Conoco Phillips?

[DaniFoxy]

08:39 AM on 07/14/2011

Amazingly, I have stock in this company. It's not enough to retire on, but this is good news for an unemployed model\actress.