Murphy Oil Board Formally Approves Spin-off
by August 7, 2013 4:24 pm 74 views
The board of directors for El Dorado-based Murphy Oil Corp. officially approved both the spin-off of its U.S. retail marketing business and a regular quarterly dividend.
The company’s board disclosed in its recent earnings call that it would be meeting on Wednesday (Aug. 7) to consider the previously announced deal.
The spin-off of the U.S. retail marketing business will be achieved through the distribution of 100% of the shares of the new company, Murphy USA Inc., to holders of Murphy Oil common stock. Murphy USA (MUSA) will become a publicly traded company on the New York Stock Exchange, and Murphy Oil Corp. (MUR) will remain a public firm on the exchange.
As of June 30, 2013, there were 1,179 Murphy Oil retail outlets in 23 states with plans to top 1,200 by year’s end. The business also owns midstream assets, including product distribution terminals and pipeline positions.
“Today’s announcement signals an exciting new beginning for both Murphy Oil Corporation and Murphy USA Inc. as separating these two businesses will allow each to unlock its own potential for growth,” said Murphy Oil CEO Steve Cosse.
The distribution of MUSA shares is expected to be completed after the market close on August 30, 2013, with Murphy Oil shareholders receiving one share of MUSA common stock for every four shares of Murphy Oil common stock held at the close of business on the record date of August 21, 2013. Fractional shares of MUSA common stock will not be distributed.
J.P. Morgan Securities LLC and Stephens Inc. acted as financial advisors to Murphy Oil on the deal and Davis Polk & Wardwell LLP acted as legal advisor.
The board of directors of Murphy Oil today also declared a quarterly cash dividend on the common stock of Murphy Oil of $0.3125 per share, or $1.25 per share on an annualized basis. The dividend is payable August 30, 2013 to holders of record as of the close of business on August 21, 2013.
Also, T. Jay Collins was elected to Murphy’s board of directors effective August 7, 2013.
Collins currently serves as 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, where he retired as President and CEO in May 2011.
Collins received his MBA from Harvard Graduate School of Business in 1972 and both his Bachelor of Arts degree and Masters of Engineering degree in Chemical Engineering from Rice University in 1969.