ConocoPhillips to split business
Posted: 14 July 2011
ConocoPhillips plans to separate its refining and production businesses into two stand-alone, publicly traded corporations.
"Consistent with our strategy to create industry-leading shareholder value, we have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies," said Chief Executive Jim Mulva.
Shares climbed 4.8% to $78 premarket and have risen 9.3% so far this year though Wednesday's close.
The split, via a tax-free spin off of the refining and marketing business to shareholders, is expected to be complete in the first half of 2012.
The separation, which doesn't require shareholder vote, needs approval from the Internal Revenue Service, among other regulatory bodies.
The combined company has 29,600 employees and $160 billion of assets.
In April, the company said its first-quarter earnings rose 44% as the oil producer and refiner continued to benefit from high oil prices and stronger refining margins, and despite a sharp drop in production.